Merchants Bancorp Reports 106% Increase in Net Income to $78.3 Million

Merchants Bancorp reported significant financial growth in its latest quarterly results, with net income reaching $78.3 million for the three months ended June 30, 2026, a 106% increase from $37.9 million in the same period last year. This surge in profitability was driven by a substantial reduction in the provision for credit losses, which fell by 83% to $9.2 million, reflecting improved asset quality. Diluted earnings per share also saw a notable rise, increasing 147% to $1.48 compared to $0.60 in the prior year.

The company's total assets grew to $21.2 billion, marking a 9% increase from $19.4 billion at the end of 2025. This growth was primarily attributed to an increase in loans receivable, which rose to $12.3 billion, up 12% from the previous year. Core deposits also saw a significant boost, increasing by 15% to $13.0 billion, representing 91% of total deposits. The company’s liquidity position remained strong, with $13.0 billion in liquid assets, supported by $5.5 billion in unused borrowing capacity.

Operationally, Merchants Bancorp experienced a 41% increase in the volume of warehouse loans funded, totaling $22.9 billion for the quarter. The Multi-family Mortgage Banking segment reported a 7% increase in loan origination volume, reaching $1.5 billion. The company also executed a credit default swap on a $169.9 million pool of multi-family mortgage loans, enhancing its risk management strategy.

In terms of market performance, the company’s net interest margin slightly decreased to 2.81% from 2.83% year-over-year, while the efficiency ratio improved to 40.20% from 43.16%. The company’s capital ratios remained robust, with a total capital ratio of 12.5%, indicating a strong emphasis on financial stability. Looking ahead, Merchants Bancorp anticipates continued growth driven by its diversified business model and strategic initiatives in the multi-family and mortgage warehousing sectors.