Merchants Bancorp (MBIN) investor relations material

Executive summary

• Q3 net income rose 92% YoY to $105.2M; diluted EPS was $2.06, up 112% YoY.

• 9M net income increased 66% to $251.2M; diluted EPS was $4.79, up 92%.

• Assets reached $20.9B, up 7% from year-end 2025; net loans rose 11% to $12.2B and deposits increased 15% to $15.0B.

• Tangible book value reached a record $41.64 per share, up 15% YoY and marking the 31st consecutive quarterly record.

Financial highlights

• Q3 net interest income rose 13% YoY to $144.2M; provision for credit losses fell 59% to $12.0M.

• Noninterest income rose 88% to $80.8M, including $28.2M in positive servicing-rights and $19.1M in positive floor-derivative fair-value adjustments; gain on loan sales declined.

• Noninterest expense increased 3% to $79.5M; income tax expense was $28.2M and the effective tax rate was 21.2%.

• 9M net interest income grew 8% to $409.4M and noninterest income rose 48% to $173.1M; credit-loss provision declined 59% to $36.5M.

• Efficiency ratio improved to 35.35% from 45.16% YoY and 40.20% QoQ, aided by positive fair-value adjustments.

Outlook and guidance

• The Loan Exchange acquisition may initially dilute earnings and raise operating expenses as production scales and integration progresses; the platform is intended to support future earnings growth.

• A substantial portion of $810.7M in CDs maturing within one year is expected to renew; weaker retention could require alternative funding or higher deposit rates.

• Up to $31.7M of potential LIHTC acquisition fees remains constrained pending contractual calculations and tax-credit delivery, with uncertainty for some funds through 2029.