MBIN · Merchants Bancorp

Merchants Bancorp delivered first quarter 2026 results showcasing balance sheet strength with record total assets of $20.3 billion, up 8% year-over-year and 4% sequentially, driven by growth in multi-family and warehouse portfolios partially offset by healthcare loan declines. Net income of $67.7 million rose 16% from Q1 2025's $58.2 million, fueled by a 97% surge in noninterest income to $46.6 million from $22.9 million higher fair value adjustments on mortgage servicing rights ($8.9 million positive) and derivatives, plus 5% net interest income growth to $128.6 million amid lower deposit and borrowing costs. Diluted EPS reached $1.25, a 34% YoY increase despite a 2% sequential dip. Asset quality improved markedly with criticized loans dropping 31% YoY to $505.5 million and 1% QoQ, non-performing loans at 2.16% of receivables (down from 2.73% YoY), and delinquent loans down 28% YoY, bolstered by charge-offs, proactive management, and credit default swaps covering 6% of criticized loans. The allowance for credit losses fell 8% to $76.8 million post $23.0 million charge-offs mainly in healthcare and multi-family. Deposits grew 4% YoY to $13.0 billion, with core deposits up 13% to 93% mix as brokered CDs halved to $886.5 million. Liquidity stayed robust at 55% of assets ($11.1 billion including $3.9 billion unused capacity). Capital ratios held strong at 12.8% total capital. Management highlighted team resilience, strategic execution, and MOU termination with FDIC/IDFI, while repurchasing $3.0 million in shares signals confidence. CEO Petrie emphasized record tangible book value of $38.55 per share (up 10% YoY), positioning the firm well amid stabilizing conditions.