Merchants Bancorp (MBIN) investor relations material

Executive summary

• Net income for Q2 2026 was $78.3 million, up 106% year-over-year and 16% sequentially, driven by improved asset quality and lower provision for credit losses.

• Diluted EPS reached $1.48, a 147% increase year-over-year and 18% sequentially.

• Total assets hit a record $21.2 billion, 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.

Financial highlights

• Net interest income for Q2 2026 was $136.5 million, up 6% year-over-year and sequentially.

• Net interest margin was 2.81%, down slightly from 2.83% a year ago and 2.92% last quarter.

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

• Noninterest income was $45.7 million, down 10% year-over-year, mainly due to lower gain on sale of loans.

• 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 and strong liquidity.

• Higher interest rates may pressure near-term gain on sale of loans, but are expected to support servicing rights valuations.