Merchants Bancorp (MBIN) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $78.3 million, up 106% year-over-year and 16% sequentially, with diluted EPS of $1.48, up 147% year-over-year and 18% sequentially.

• Total assets reached $21.2 billion as of June 30, 2026, up 9% from year-end 2025 and 25% year-over-year, marking five consecutive quarters of growth.

• Tangible book value per share rose to $39.93, its 30th consecutive quarterly high, up 13% year-over-year.

• Asset quality improved, with criticized loans down 12% from December 2025 and nonperforming loans down 17% sequentially to $205.6 million.

• Capital and liquidity remained strong, with a total capital ratio of 12.5% and $13.0 billion in liquidity (61% of assets).

Financial highlights

• Net interest income for Q2 2026 was $136.5 million, up 6% year-over-year; net interest margin was 2.81%.

• Provision for credit losses dropped 83% year-over-year to $9.2 million, reflecting improved asset quality.

• Noninterest income declined 10% to $45.7 million, mainly due to lower gain on sale of loans, offset by higher servicing fees.

• Noninterest expense decreased 5% year-over-year to $73.2 million, primarily from lower salaries and benefits.

• Efficiency ratio improved to 40.2% from 43.2% a year ago.

Outlook and guidance

• Management expects continued earnings growth, supported by a diversified business model, strong liquidity, and prudent growth.

• Lower or stable interest rates are expected to boost production, noninterest income, and asset quality, though higher rates may pressure gain on sale of loans.

• No material changes to risk factors or forward-looking guidance were disclosed for the remainder of 2026.