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Motus Bank Q2 2019 P/L
October 5, 2019
1:54 pm
Doug
British Columbia, Canada
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Hi everyone,

I'm too busy to keep up with the monthly Motus Bank balance sheet data analysis, but suffice it to say, they won't be catching Motive Financial or Alterna Bank any time soon. 😉

So here's their Q2 2019 P/L return for the period from April 1-June 30, 2019:

Total Interest Income - $592 thousand
Of which was:
- Mortgages: $10 thousand

The bulk of their Net Interest Income was, as I expected, from the interest paid on their deposits other banks and the central bank that they're required to hold as part of regulatory capital ratios. These are funds tied up that Meridian Credit Union can't otherwise use, including returning to members in the form of dividends.

Total Interest Expense: $138 thousand

Net Interest Income: $454 thousand
Less non-cash charge for impaired loans: $13 thousand
Net Income Income After Adjustments: $441 thousand

Non-interest income, of which 90% was service charges: $10 thousand

Total Non-Interest Expenses: $2.273 million

Net Profit/(-Loss) for the Quarter: (-$1.338 million)

So they look to be on pace to generating an approximate $5-6 million net loss for 2019 (their first operating fiscal year).

Cheers,
Doug

October 5, 2019
4:05 pm
Loonie
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It's not a very positive picture, is it?
On the other hand, they really hadn't been open very long by june 30.
As a Meridian member, I hope they get their act together and become viable.
But as a Motus depositor, I've moved out all my money, at least til January.
My last move was to put what remained in chequing and then write a cheque on it. This was over their transaction limm , so I thought it best to phone. The CSR seems befuddled at this request, and said, "you have a chequing account?" with a tone of disbelief. I assured her I did (!) Then she asked, "you have cheques for it?", with equal scepticism.
It's true that the money was in a personal account and it was going to a joint chequing account, but that shouldn't be so difficult to see, for someone who works at this all day long, should it?
She didn't ask why I was moving it all out. Maybe I'm doing them a favour!

December 23, 2019
3:51 am
Loonie
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Do you have any updates, Doug?
I know you've been busy with school but I am very interested in whether motus is moving towards viability, when you have time.

December 23, 2019
4:26 pm
file
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Here's the Q3 data:

Total Interest Income: $1.287 million
Mortgages was $123 thousand

Total Interest Expense: $680 thousand

Net Interest Income: $607 thousand
Less non-cash charge for impaired loans: $54 thousand
Net Interest Income After Adjustments: $553 thousand

Total Non-Interest Expenses: $4.865 million

Net Profit/(-Loss) for the Quarter: (-$3.143 million)

Duh, year to date. Silly me. So that's where they were end of Q3 for the year.

December 24, 2019
1:21 am
Loonie
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Thanks very much, @file.
So they lost 1.338 million in 2nd quarter
and an additional 3.143 million in 3rd quarter
for a total of 4.481 million.

These may be small numbers for an organization as big as Meridian, but it doesn't seem like a positive trend. It would be really interesting to know how this compares to expectations, but I don't know that those have ever been shared. However, they have more than doubled interest income and increased mortgage income x12. It's a start!

December 24, 2019
3:17 am
file
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It's year to date, so the 3.143 million already includes the 1.338 million. I originally thought it did not as well.

March 31, 2020
3:57 pm
file
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Q4 data is up, I won't go into as much depth as before since it gave me a headache correlating everything but the loss was 4.858 million in total for 2019 it seems.

March 31, 2020
4:21 pm
Loonie
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So, they lost 1.715 million in the last quarter?

This would mean:
Losses by Quarter:

Q2 (1338 M)
Q3 (3.143 M)
Q4 (1.713 M)

Balance as of 31 Dec 2019: (4.858 M)

It appears they had started to turn the corner by year's end.

April 1, 2020
9:27 am
Doug
British Columbia, Canada
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Loonie said
So, they lost 1.715 million in the last quarter?

This would mean:
Losses by Quarter:

Q2 (1338 M)
Q3 (3.143 M)
Q4 (1.713 M)

Balance as of 31 Dec 2019: (4.858 M)

It appears they had started to turn the corner by year's end.  

Thanks for the update, Loonie. I will have more to say following the release of the Motus Bank's annual report PDF beyond just the regulatory disclosures, which the Motus/Meridian CFO promised me at last April's AGM would be posted. When the Meridian AGM materials are posted, I suspect that's when we'll see it. Look for me to comment some time at the end of April/early May. sf-cool

I suspect the Meridian AGM will be held entirely virtually this year...so as a Meridian member, you may want to participate!

Cheers,
Doug

April 1, 2020
1:08 pm
file
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I would be very interested in knowing how things are going in comparison to their over all plan.

April 1, 2020
9:24 pm
Loonie
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file said
I would be very interested in knowing how things are going in comparison to their over all plan.  

Me too. It would be a good question for Meridian's AGM. The first quesiton is, what WAS their plan?

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