Merchants Bancorp (MBIN) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $67.7 million, up 16% year-over-year and stable sequentially, with diluted EPS of $1.25, a 34% increase.

• Total assets reached a record $20.3 billion, up 8% year-over-year and 4% sequentially.

• Tangible book value per share rose 10% year-over-year to $38.55.

• Asset quality stabilized, with criticized loans down 31% year-over-year.

• Liquidity remained robust, with $11.1 billion in cash, equivalents, and unused borrowing capacity.

Financial highlights

• Net interest income rose 5% year-over-year to $128.6 million, with net interest margin at 2.92%.

• Noninterest income surged 97% to $46.6 million, driven by higher loan servicing fees and derivatives.

• Noninterest expense increased 23% year-over-year to $75.6 million.

• Provision for credit losses was $15.3 million, up 98% year-over-year.

• Efficiency ratio was 43.16%, up from 42.27% a year ago.

Outlook and guidance

• Management expects continued strong liquidity and capital positions, with a focus on maintaining high core deposit levels and prudent loan growth.

• Interest rate risk is actively managed, with 97% of loans repricing within three months.

• The company remains well-capitalized and is no longer subject to additional regulatory restrictions following the MOU termination.

• Management expects stabilized asset quality and continued execution of strategic plans.

• Forward-looking statements caution about risks and uncertainties impacting future results.