Merchants Bancorp Pref Share MBINM 8.25 Perp 10/01/27 | 8-K: FY2026 Q1 Revenue: USD 317.11 M
I'm LongbridgeAI, I can summarize articles.Revenue: As of FY2026 Q1, the actual value is USD 317.11 M.
EPS: As of FY2026 Q1, the actual value is USD 1.25.
EBIT: As of FY2026 Q1, the actual value is USD -44.34 M.
Financial Performance Overview
Net Income
Net income for the first quarter of 2026 was $67.7 million, marking a $9.5 million, or 16%, increase compared to the first quarter of 2025 . This figure remained relatively stable compared to $67.8 million in the fourth quarter of 2025 and was higher than $58.2 million in the first quarter of 2025 .
Total Assets
Total assets reached a record $20.3 billion at March 31, 2026, an increase of 8% compared to March 31, 2025, and 4% compared to December 31, 2025 . This growth was mainly attributed to higher balances in multi-family and warehouse portfolios .
Loans Receivable, Net
Loans receivable, net of allowance for credit losses, totaled $11.4 billion at March 31, 2026, representing an increase of $1.1 billion, or 10%, from March 31, 2025, and $448.5 million, or 4%, from December 31, 2025 .
Total Deposits
Total deposits were $13.0 billion at March 31, 2026, increasing 4% from March 31, 2025, and remaining relatively flat compared to December 31, 2025 . Core deposits increased by $781.4 million, or 7%, during the quarter to $12.1 billion, constituting 93% of total deposits . Brokered deposits declined by $870.8 million, or 50%, to $886.5 million .
Net Interest Income
Net interest income for Q1 2026 was $128.6 million, an increase of $6.5 million, or 5%, compared to Q1 2025, primarily due to lower interest expense on certificates of deposits and borrowings . Compared to Q4 2025, net interest income decreased by $9.4 million, or 7%, driven by lower interest income on loans and loans held for sale .
Net Interest Margin & Spread
Net interest margin for Q1 2026 was 2.92%, an increase of three basis points compared to 2.89% in both Q1 2025 and Q4 2025 . The interest rate spread for Q1 2026 was 2.50%, increasing 12 basis points compared to 2.38% in Q1 2025 and 6 basis points compared to 2.44% in Q4 2025 .
Noninterest Income
Noninterest income was $46.6 million in Q1 2026, a significant increase of $22.9 million, or 97%, compared to Q1 2025 . This was mainly due to an $11.1 million, or 277%, increase in loan servicing fees and a $10.1 million, or 319%, increase in other noninterest income . Compared to Q4 2025, noninterest income declined slightly from $47.2 million, with a $12.2 million decrease in gain on sale of loans partially offset by a $10.9 million increase in loan servicing fees .
Noninterest Expense
Noninterest expense was $75.6 million in Q1 2026, an increase of $14.0 million, or 23%, compared to Q1 2025 . This increase was primarily due to a $7.5 million increase in other noninterest expense, a $2.1 million increase in salaries and employee benefits, and a $1.9 million increase in credit risk transfer premium expense . Compared to Q4 2025, noninterest expense decreased by $8.0 million, or 10%, mainly due to lower costs associated with credit risk transfer premiums and salaries and employee benefits .
Provision for Credit Losses
The provision for credit losses was $15.299 million in Q1 2026, a 98% increase compared to Q1 2025 ($7.727 million) . Compared to Q4 2025 ($27.761 million), the provision decreased by 45% .
Asset Quality
Criticized loans receivable decreased by $226.0 million, or 31%, to $505.5 million at March 31, 2026, compared to March 31, 2025, and declined by $2.7 million, or 1%, compared to December 31, 2025 . The allowance for credit losses on loans decreased by $6.6 million, or 8%, to $76.8 million at March 31, 2026, compared to March 31, 2025 . Charge-offs in Q1 2026 totaled $23.0 million, primarily in healthcare and multi-family loan portfolios, with $616,000 in recoveries . Non-performing loans increased by $50.0 million, or 25%, during the quarter to $247.5 million at March 31, 2026, primarily due to four relationships in the multi-family portfolio, representing 2.16% of loans receivable . Total delinquent loans declined 28%, from $334.7 million as of March 31, 2025, to $242.5 million as of March 31, 2026, but increased 17% from December 31, 2025 .
Capital Ratios (as of March 31, 2026 - estimates)
Estimated capital ratios include a total capital ratio of 12.8%, a Tier I capital ratio of 12.3%, a Common Equity Tier I capital ratio of 9.4%, and a Tier I capital/average assets ratio of 12.3% .
Liquidity Position
The Company maintains strong liquidity, with $11.1 billion, or 55% of total assets, comprising cash, short-term investments, and unused borrowing capacity of $3.9 billion as of March 31, 2026 .
Share Repurchase
The Company repurchased 73,164 shares of common stock for $3.0 million under its authorized share repurchase program .
Memorandum of Understanding (MOU)
The Company’s MOU from mid-2025 with the FDIC and IDFI was terminated during the quarter, following management’s progress in addressing its provisions .
Segment Performance (Net Income, Q1 2026)
- Multi-family Mortgage Banking: $11.014 million
- Mortgage Warehousing: $28.648 million
- Banking: $37.980 million
- Other: - $9.910 million
Outlook / Guidance
The report does not contain explicit forward-looking statements or guidance for future financial performance . It primarily focuses on historical results and current financial position . Management commentary reflects confidence in the balance sheet and asset quality stabilization .