Merchants Bancorp (MBIN) Investor presentation summary

Business overview and strategy

• Diversified bank holding company with $21.2B in assets and $14.3B in deposits as of June 30, 2026, operating primarily in Indiana with a national reach in mortgage and warehouse lending.

• Key business lines include multi-family mortgage banking, mortgage warehouse, and traditional banking, with a focus on low-risk, government-backed programs.

• Entrepreneurial management team with founding families owning ~57% of shares, ensuring strong shareholder alignment.

• Unique originate-to-sell model and diversified revenue streams reduce earnings volatility across interest rate cycles.

• Branch-light, technology-driven model supports industry-leading efficiency and scalability.

Financial performance and profitability

• Earnings per share grew at a 19% CAGR since 2021, with tangible book value per share up 15% CAGR, both outperforming peers.

• Net interest margin consistently above peers, with 2.87% in 2Q26 and return on average tangible common equity at 13.99%.

• Efficiency ratio at 41.7% in 2Q26, significantly better than peer median, driven by low non-interest expense to average assets.

• Fee-based revenue accounted for 28% of total revenue in 2Q26, up from 22% in 2023.

• Stock price has gained 422% since IPO, far outpacing peer and market indices.

Balance sheet, capital, and risk management

• Loans and loans held for sale totaled $16.96B, with a diversified, short-duration portfolio; 97% of loans reprice within 3 months.

• Asset quality remains strong, with net charge-offs/average loans at 0.44% in 2Q26, historically below peers.

• ACL coverage at 0.61% of loans, with significant portions of the portfolio benefiting from government guarantees or credit risk transfers.

• CET1 ratio at 9.3% and total capital ratio at 12.5% as of June 30, 2026.

• Securities portfolio is high quality, primarily variable rate, and supports borrowing capacity with minimal AOCL impact.