Merchants Bancorp (MBIN) investor relations material

Executive summary

• Total assets reached $19.4B as of September 30, 2025, with $13.9B in deposits and a diversified, technology-driven business model.

• Net income for Q3 2025 was $54.7M, down 11% year-over-year but up $16.7M sequentially, with diluted EPS of $0.97, a 17% decrease year-over-year but a 62% increase from Q2 2025.

• Tangible book value per common share rose 12% year-over-year to $36.31, reaching a record high.

• Core deposits increased 36% year-to-date, now representing 92% of total deposits, while brokered deposits fell 55%.

• Demonstrated industry-leading profitability and efficiency, with a 23% EPS CAGR and 16% asset CAGR since 2020.

Financial highlights

• Net income for the last twelve months was $247M, with a net interest margin of 2.82%–2.84% and ROAA of 1.08%.

• Net interest income for Q3 2025 was $128.1M, down 4% year-over-year; noninterest income surged 157% to $43.0M, driven by higher loan sales and servicing fees.

• Noninterest expense increased 26% to $77.3M, mainly from higher salaries, credit risk transfer premiums, and collateral preservation costs.

• Efficiency ratio rose to 45.16% from 41.00% a year ago.

• Tangible common equity rose 77% since 2022, reaching $1.67B.

Outlook and guidance

• Management expects continued focus on credit risk management, with additional efforts to reduce risk through loan sales, securitizations, and credit protection arrangements.

• Positioned for growth through new market expansion, sales hires, and technology investments.

• Anticipates higher production and noninterest income as interest rates decline.

• The company remains well-capitalized and does not anticipate material adverse impacts from regulatory actions.

• Management expressed confidence in sustainable performance, citing improved asset quality, strong liquidity, and core deposit growth.