Revenue: As of FY2026 Q1, the actual value is USD 175.25 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

Merchants Bancorp reported net income of $67.7 million for the first quarter of 2026, marking a 16% increase, or $9.5 million, compared to the first quarter of 2025 . Net income remained relatively stable compared to the fourth quarter of 2025, which was $67.8 million . The improvement from Q1 2025 was primarily due to a $22.9 million (97%) increase in noninterest income and a $6.5 million (5%) increase in net interest income . The stability compared to Q4 2025 reflected a $12.5 million (45%) decrease in the provision for credit losses and an $8.0 million (10%) decrease in noninterest expense, offset by a $9.4 million (7%) decrease in net interest income and a $10.5 million (175%) increase in the provision for income taxes .

Net Interest Income

Net interest income for the first quarter of 2026 was $128.6 million, a 5% ($6.5 million) increase compared to the first quarter of 2025 . Compared to the fourth quarter of 2025, net interest income decreased by $9.4 million, or 7% .

Noninterest Income

Total noninterest income was $46.6 million in the first quarter of 2026, representing a significant increase of $22.9 million, or 97%, compared to the first quarter of 2025 . Compared to the fourth quarter of 2025, noninterest income declined slightly from $47.2 million .

Noninterest Expense

Noninterest expense totaled $75.6 million for the first quarter of 2026, a 23% ($14.0 million) increase compared to the first quarter of 2025 . Compared to the fourth quarter of 2025, noninterest expense decreased by $8.0 million, or 10% .

Provision for Credit Losses

The provision for credit losses was $15.299 million in the first quarter of 2026, a 98% increase compared to $7.727 million in the first quarter of 2025 . However, it was a 45% decrease compared to $27.761 million in the fourth quarter of 2025 .

Total Assets

Total assets reached a record $20.3 billion at March 31, 2026, an 8% ($1.5 billion) increase from March 31, 2025, and a 4% ($872.8 million) increase from December 31, 2025 .

Total Deposits

Total deposits amounted to $13.0 billion at March 31, 2026, reflecting a 4% ($545.6 million) increase from March 31, 2025 . Deposits remained relatively unchanged compared to December 31, 2025 . Core deposits were $12.1 billion, increasing $781.4 million (7%) during the quarter and representing 93% of total deposits . Brokered deposits declined by $870.8 million (50%) to $886.5 million .

Loans Receivable (net of allowance for credit losses)

Loans receivable, net of allowance for credit losses, totaled $11.4 billion at March 31, 2026, representing a 10% ($1.1 billion) increase from March 31, 2025, and a 4% ($448.5 million) increase from December 31, 2025 .

Asset Quality

Criticized loans receivable decreased by $226.0 million, or 31%, to $505.5 million compared to March 31, 2025, and decreased by $2.7 million, or 1%, compared to December 31, 2025 . Non-performing loans increased $50.0 million, or 25%, during the quarter to $247.5 million, or 2.16% of loans receivable, as of March 31, 2026 . Total delinquent loans declined 28% to $242.5 million as of March 31, 2026, but increased 17% from December 31, 2025 .

Capital Ratios

As of March 31, 2026, the company maintained a total capital ratio of 12.8%, Tier I capital ratio of 12.3%, Common Equity Tier I capital ratio of 9.4%, and Tier I capital to average assets ratio of 12.3% .

Liquidity

Merchants Bancorp maintained strong liquidity with $11.1 billion, or 55% of total assets, in highly liquid assets and $3.9 billion in unused borrowing capacity as of March 31, 2026 .

Share Repurchases

The company repurchased 73,164 shares of common stock for $3.0 million during the quarter .

Segment Net Income

• Multi-family Mortgage Banking: $11.014 million
• Mortgage Warehousing: $28.648 million
• Banking: $37.980 million
• Other: - $9.910 million

Outlook / Guidance

Management expressed confidence in Merchants Bancorp’s financial position, highlighting record-high assets and tangible book value per share . They noted continued stabilization in asset quality, which positions the company for future growth . The company’s business model is designed to continuously sell or securitize a significant portion of its loans, providing flexibility in managing liquidity .