Merchants Bancorp reported a net income of $67.7 million for the first quarter of 2026, marking a 16% increase from $58.2 million in the same period last year. This growth was driven by a significant rise in noninterest income, which surged by 97% to $46.6 million, primarily due to higher loan servicing fees and positive fair value adjustments. The company also saw a 5% increase in net interest income, totaling $128.6 million, despite a decrease in interest income from loans and securities. Diluted earnings per share rose to $1.25, up from $0.93 a year earlier.
Total assets reached a record high of $20.3 billion, reflecting an 8% increase year-over-year and a 4% rise from the end of 2025. The growth in assets was largely attributed to a $1.1 billion increase in loans receivable, which totaled $11.4 billion, and a $836.7 million rise in loans held for sale, now at $4.7 billion. Core deposits also increased by 13% to $12.1 billion, representing 93% of total deposits, while brokered deposits decreased significantly by 48% to $886.5 million.
The company’s provision for credit losses increased to $15.3 million, up 98% from the previous year, reflecting ongoing challenges in the multi-family and healthcare loan portfolios. The allowance for credit losses on loans decreased to $76.8 million, or 0.67% of total loans, down from 0.75% at the end of 2025. Asset quality indicators showed stabilization, with criticized loans receivable slightly decreasing to $505.5 million.
Strategically, Merchants Bancorp has continued to enhance its operational capabilities, including the termination of a Memorandum of Understanding with the FDIC, which had imposed certain operational requirements. The company also repurchased 73,164 shares of common stock for $3.0 million as part of its ongoing share repurchase program. Looking ahead, Merchants Bancorp remains focused on leveraging its diversified business model to navigate market conditions and drive future growth.
About Merchants Bancorp
Merchants Bancorp is a diversified bank holding company providing community banking, mortgage banking, and mortgage warehousing services. It specializes in multi-family and healthcare facility financing, affordable housing, SBA lending, and residential mortgage origination and servicing. Serving national and regional markets, it leverages government programs, syndications, and a broad product suite to offer low-risk, tailored financial solutions with a focus on long-term growth and ESG commitments.
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