Revenue: As of FY2026 Q2, the actual value is USD 339.75 M.

EPS: As of FY2026 Q2, the actual value is USD 1.48.

EBIT: As of FY2026 Q2, the actual value is USD 99.78 M.

Financial Performance Overview

Net Income

Merchants Bancorp reported net income of $78.3 million for the second quarter of 2026, which is an increase of $40.3 million, or 106%, compared to the second quarter of 2025, and an increase of $10.6 million, or 16%, compared to the first quarter of 2026. The year-over-year increase was primarily driven by a $43.8 million, or 83%, decrease in the provision for credit losses. The quarter-over-quarter improvement was driven by a $14.0 million, or 12%, increase in net interest income after provision for credit losses.

Total Assets

Total assets reached $21.2 billion at June 30, 2026, representing a 4% increase compared to March 31, 2026, and a 9% increase compared to December 31, 2025.

Tangible Book Value per Common Share

Tangible book value per common share increased to $39.93, up 13% from $35.42 at June 30, 2025, and 4% from $38.55 at March 31, 2026.

Asset Quality

Criticized loans receivable totaled $444.7 million, decreasing $60.8 million, or 12%, from March 31, 2026, and decreasing $63.5 million, or 12%, from December 31, 2025. Nonperforming loans were $205.6 million, a decrease of $41.8 million, or 17%, compared to March 31, 2026. Total delinquent loans decreased $34.6 million, or 14%, to $208.0 million compared to March 31, 2026. The provision for credit losses was $9.2 million, an 83% decrease compared to the second quarter of 2025 and a 40% decrease compared to the first quarter of 2026. The allowance for credit losses on loans was $75.8 million as of June 30, 2026, a decrease of $1.0 million, or 1%, from March 31, 2026, and a decrease of $7.5 million, or 9%, from December 31, 2025. Charge-offs totaled $16.5 million, with $4.8 million in recoveries during the second quarter of 2026.

Capital Ratios

Capital ratios remained strong, with a total capital ratio of 12.5%, a Tier I capital ratio of 12.1%, a Common Equity Tier I capital ratio of 9.3%, and Tier I capital to average assets of 11.6%.

Liquidity

Liquidity remained strong at $13.0 billion, representing 61% of total assets, supported by $5.5 billion of unused borrowing capacity with the Federal Home Loan Bank and Federal Reserve Discount Window.

Loans Receivable, Net

Loans receivable, net of allowance for credit losses, totaled $12.3 billion, an increase of $862.9 million, or 8%, from March 31, 2026, and $1.3 billion, or 12%, from December 31, 2025.

Total Deposits

Total deposits reached $14.3 billion, an increase of $1.3 billion, or 10%, from March 31, 2026, and $1.2 billion, or 9%, compared to December 31, 2025. Core deposits, representing 91% of total deposits, increased $891.3 million compared to March 31, 2026, to $13.0 billion.

Net Interest Income

Net interest income increased to $136.5 million, up 6% compared to $128.7 million in Q2 2025 and up 6% compared to $128.6 million in Q1 2026. The net interest margin was 2.81%, a decrease of two basis points compared to 2.83% in Q2 2025 and an 11 basis point decrease compared to 2.92% in Q1 2026.

Noninterest Income

Noninterest income decreased 10% year-over-year to $45.7 million compared to $50.5 million in Q2 2025, primarily due to a 44% decrease in gain on sale of loans, partially offset by a 95% increase in loan servicing fees. Quarter-over-quarter, noninterest income decreased 2% from $46.6 million in Q1 2026, reflecting a decrease in loan servicing fees and other noninterest income, partially offset by a 122% increase in syndication and asset management fees.

Noninterest Expense

Noninterest expense decreased 5% year-over-year to $73.2 million compared to $77.3 million in Q2 2025, mainly due to a $4.2 million decrease in salaries and employee benefits. Quarter-over-quarter, noninterest expense decreased 3% from $75.6 million in Q1 2026, primarily due to a $2.5 million decrease in deposit insurance expenses.

Net Income by Segment (Q2 2026)

• Multi-family Mortgage Banking: $10,336 thousand
• Mortgage Warehousing: $30,599 thousand
• Banking: $47,337 thousand
• Other: - $9,969 thousand

Outlook / Guidance

Merchants Bancorp’s management highlighted continued strength across businesses, with assets and tangible book value per share reaching new highs. Credit trends improved with a decline in criticized loans, nonperforming loans, delinquencies, and provision for credit losses. The diversified business model is expected to support earnings in the current rate environment, with robust loan pipelines converting to permanent loans over time and higher rates supporting servicing rights and derivatives valuations.