Merchants Bancorp (MBIN) Q1 2026 earnings summary

Executive summary

• Achieved $20.3B in assets and $13.0B in deposits as of March 31, 2026, with a diversified business model across multi-family mortgage banking, warehouse lending, and traditional banking.

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

• Tangible book value per share reached $38.55, up 10% year-over-year.

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

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

Financial highlights

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

• Noninterest income surged 97% to $46.6M, mainly from higher loan servicing fees and derivatives.

• Noninterest expense increased 23% year-over-year to $75.6M, mainly from higher salaries and credit risk transfer premiums.

• Provision for credit losses was $15.3M, up 98% year-over-year, reflecting multi-family and healthcare loan issues.

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

Outlook and guidance

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

• Lower or stable interest rates expected to boost production, noninterest income, and asset quality.

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