Why did MBINN's earnings drop in Q3 2024?

The decline in Merchants Bancorp's (MBINN) net income in Q3 2024 can be attributed to several key factors: 1. **Credit Issues and Fair Market Value Adjustments**: The company's net income was negatively impacted by isolated credit issues and unfavorable fair market value adjustments related to derivatives and servicing rights. These factors contributed to a 25% decrease in net income compared to the previous year's Q3. 2. **Revenue Shortfall**: Although total revenue exceeded $1.2 billion for Q3 FY2024, the net income available to common stockholders was $61.3 million, which fell short of analyst estimates. This shortfall can be attributed to lower revenue from certain segments, such as a 6% decrease from the previous quarter in revenue generated from loans held for sale and multi-family loan portfolios. Additionally, the company faced challenges in loan servicing fees and other income, leading to a 54% year-over-year decline in noninterest income. In summary, MBINN's Q3 2024 earnings drop was primarily due to credit issues, fair market value adjustments, and revenue shortfall.