Merchants Bancorp (MBIN) Q4 2025 earnings summary

Executive summary

• Achieved $19.4B in assets and $13.0B in deposits as of December 31, 2025, with a diversified business model and strong shareholder alignment.

• Tangible book value per common share reached $37.51, up 10% year-over-year and 3% sequentially.

• Demonstrated superior profitability and earnings growth, consistently outperforming peers in net interest margin and return metrics.

• Asset quality improved significantly, with criticized loans down 27% year-over-year and nonperforming loans down 34% sequentially.

• Recognized with multiple industry awards for performance, growth, and workplace excellence.

Financial highlights

• Net income for 2025 was $219M, down from $320M in 2024, with a net interest margin of 2.86% compared to 3.03% in 2024.

• Q4 2025 diluted EPS was $1.28, down 31% year-over-year but up 32% from Q3 2025; full-year diluted EPS was $3.78, down 40% from 2024.

• Total assets grew 54% since 2022, reaching $19.4B; loans held for investment increased 48% over the same period.

• Efficiency ratio increased to 44.0% in 2025 from 33.4% in 2024; Q4 2025 efficiency ratio was 45.14%, up from 32.62% a year ago.

• Asset quality remained strong, with reserves at 0.75% of loans and non-accrual loans at 1.33% of total loans.

Outlook and guidance

• Positioned for growth through sales expansion, technology investments, and capital markets activities.

• Management expressed confidence in continued growth and improved credit quality for 2026, citing strong liquidity and operational performance.

• Anticipates higher production and noninterest income as interest rates decline, with a strong pipeline in all business lines.