Merchants Bankcorp Pref Shares MBIN 7.625 Perp 01/01/30 | 10-Q: FY2026 Q1 Revenue: USD 317.11 M

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.

Overall Financial Performance

Merchants Bancorp reported net income of $67.7 million for the three months ended March 31, 2026, an increase of $9.5 million compared to $58.2 million for the same period in 2025 . The net interest margin was 2.92% for the three months ended March 31, 2026, compared to 2.89% for the same period in 2025 . The efficiency ratio was 43.16% for the three months ended March 31, 2026, compared to 42.27% for the same period in 2025 . Total assets reached $20.3 billion as of March 31, 2026, an 8% increase compared to March 31, 2025 . The company maintained strong liquidity, totaling $11.1 billion, or 55% of total assets, including $3.9 billion in unused borrowing capacity .

Multi-family Mortgage Banking Segment

• Net Income: $11.0 million (2026) vs. $3.4 million (2025) .
• Net Interest Income: $1.0 million (2026) vs. $1.2 million (2025) .
• Noninterest Income: $39.1 million (2026) vs. $28.9 million (2025) .
• Total Noninterest Expense: $25.6 million (2026) vs. $24.6 million (2025) .
• Provision for Credit Losses: - $0.007 million (2026) vs. - $0.048 million (2025) .
• Total Assets: $523.0 million (2026) vs. $460.4 million (2025) .
• Loan Origination/Acquisition Volume: $1.2 billion (2026), a 26% increase from $934.4 million (2025) .

Mortgage Warehousing Segment

• Net Income: $28.6 million (2026) vs. $15.4 million (2025) .
• Net Interest Income: $38.6 million (2026) vs. $28.4 million (2025) .
• Noninterest Income: $4.3 million (2026) vs. - $0.7 million (2025) .
• Total Noninterest Expense: $7.9 million (2026) vs. $8.0 million (2025) .
• Provision for Credit Losses: - $0.7 million (2026) vs. - $0.4 million (2025) .
• Total Assets: $8.5 billion (2026) vs. $5.9 billion (2025) .
• Warehouse Loans Funded Volume: $19.6 billion (2026), a 65% increase from $11.9 billion (2025) .

Banking Segment

• Net Income: $38.0 million (2026) vs. $47.1 million (2025) .
• Net Interest Income: $84.6 million (2026) vs. $87.9 million (2025) .
• Noninterest Income: $6.3 million (2026) vs. - $1.1 million (2025) .
• Total Noninterest Expense: $27.7 million (2026) vs. $17.3 million (2025) .
• Provision for Credit Losses: $16.0 million (2026) vs. $8.2 million (2025) .
• Total Assets: $10.9 billion (2026) vs. $12.0 billion (2025) .

Other Segment

• Net Loss: - $9.9 million (2026) vs. - $7.7 million (2025) .
• Net Interest Income: $4.4 million (2026) vs. $4.7 million (2025) .
• Noninterest Income: - $3.1 million (2026) vs. - $3.4 million (2025) .
• Total Noninterest Expense: $14.4 million (2026) vs. $11.8 million (2025) .
• Total Assets: $404.0 million (2026) vs. $432.6 million (2025) .

Loans and Asset Quality

Loans receivable, net, totaled $11.4 billion as of March 31, 2026, increasing by $448.5 million (4%) from December 31, 2025 . Mortgage warehouse repurchase agreements increased by $382.1 million (24%) to $2.0 billion, and multi-family financing loans increased by $205.0 million (4%) to $5.5 billion . The Allowance for Credit Losses (ACL-Loans) decreased by $6.5 million (8%) to $76.8 million as of March 31, 2026 . Total nonaccrual loans were $239.1 million as of March 31, 2026, compared to $197.8 million as of December 31, 2025 .

Deposits and Borrowings

Total deposits decreased by $89.4 million (1%) to $13.0 billion as of March 31, 2026 . Core deposits increased by $781.4 million (7%) to $12.1 billion, representing 93% of total deposits . Brokered deposits decreased by $870.8 million (50%) to $886.5 million . Total borrowings increased to $4.8 billion as of March 31, 2026, from $3.8 billion at December 31, 2025, driven by increases in FHLB advances and new borrowings from the Federal Reserve discount window and American Financial Exchange .

Cash Flow

Net cash used in operating activities was - $597.3 million for the three months ended March 31, 2026, compared to $148.0 million provided in the same period of 2025 . Net cash used in investing activities was - $335.3 million in 2026, versus - $0.9 million in 2025 . Net cash provided by financing activities was $803.6 million in 2026, a significant change from - $102.4 million used in 2025 . As a result, the net change in cash and cash equivalents was - $129.0 million, bringing the cash and cash equivalents to $83.2 million at the end of the period .

Future Outlook and Strategy

Merchants Bancorp’s core business strategy focuses on funding low-risk multi-family, residential, and SBA loans using an originate-to-sell model while retaining adjustable-rate loans for investment to mitigate interest rate risk . The company aims to maximize net income and shareholder returns through a combination of net interest income and noninterest income from selling low-risk assets . This approach has historically resulted in lower charge-offs and expense base compared to the industry, with strategic synergies leveraged across segments .