Merchants Bancorp Reports First Quarter 2026 Results

Rhea-AI Summary

Merchants Bancorp (Nasdaq: MBIN) reported Q1 2026 net income of $67.7M and diluted EPS of $1.25. Total assets reached a record $20.3B and tangible book value per share hit $38.55. Loans receivable rose 10% to $11.4B; criticized loans fell 31% to $505.5M.

Liquidity remained strong at $11.1B (55% of assets). Core deposits were $12.1B (93% of deposits). The company repurchased shares and terminated its FDIC/IDFI MOU during the quarter.

Positive

• Net income +16% YoY to $67.7M
• Record total assets of $20.3B
• Tangible book value per share $38.55 (+10% YoY)

Negative

• Noninterest expense +23% YoY
• Provision for credit losses increased versus prior year
• Non-performing loans rose to $247.5M (2.16% of loans)

Key Figures

Q1 2026 net income: $67.7M Q1 2026 diluted EPS: $1.25 Total assets: $20.3B +5 more

8 metrics

Q1 2026 net income $67.7M First quarter 2026 net income, up 16% vs Q1 2025

Q1 2026 diluted EPS $1.25 Diluted EPS, up 34% vs Q1 2025

Total assets $20.3B Record level at March 31, 2026, up 8% vs March 31, 2025

Tangible book value/share $38.55 Record tangible book at March 31, 2026, up from $34.90 a year ago

Criticized loans receivable $505.5M Down 31% vs March 31, 2025, indicating improving asset quality

Total deposits $13.0B Deposits at March 31, 2026, up 4% vs March 31, 2025

Core deposits $12.1B (93% of deposits) Core deposits up 7% in Q1 2026; 93% of total deposits

Brokered deposits $886.5M Brokered deposits down 50% during the quarter to $886.5M

Market Reality Check

Price: $49.78 Vol: Volume 105,378 is 40% bel...

low vol

$49.78 Last Close

Volume Volume 105,378 is 40% below 20-day average of 176,387 (relative volume 0.6x). low

Technical Price $49.78 trades above 200-day MA of $36.48 and is near the 52-week high of $50.26.

Peers on Argus

MBIN is up 1.67% with modest volume while several regional peers (GABC, HOPE, NB...

MBIN is up 1.67% with modest volume while several regional peers (GABC, HOPE, NBHC, RBCAA, TCBK) also show gains of about 0.6–1.98%, but context still flags today’s action as stock-specific rather than a broad sector momentum move.

Common Catalyst Peer headlines show regional banks reporting earnings and dividends, suggesting an earnings-season backdrop for the group.

Previous Earnings Reports

5 past events · Latest: Jan 28 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 28	Quarterly earnings	Positive	+15.7%	Record Q4 2025 results with higher net income and improved asset quality.
Oct 28	Quarterly earnings	Neutral	-2.0%	Mixed Q3 2025 with earnings down YoY but sequential improvement and strong TBV.
Jul 28	Quarterly earnings	Negative	-10.8%	Q2 2025 earnings hit by higher credit loss provisions and lower EPS.
Apr 28	Quarterly earnings	Negative	-8.6%	Q1 2025 net income and EPS declined amid market-driven origination delays.
Jan 28	Quarterly earnings	Positive	+6.5%	Record Q4 2024 and full-year 2024 net income and EPS with strong growth.

Pattern Detected

Recent earnings releases have often driven significant moves, with strong quarters (record earnings, improving asset quality and liquidity) seeing positive reactions, while weaker credit or earnings trends have coincided with notable selloffs. The stock has generally moved in the same direction as the tone of each earnings update, showing a tendency to reward clear operational progress and penalize credit-driven setbacks.

Recent Company History

Over the last five earnings cycles from Jan 2025 through Jan 2026, Merchants Bancorp has alternated between record results and periods pressured by elevated credit costs. Q4 2024 and Q4 2025 highlighted record net income, growing assets, and strong tangible book value, each followed by solid positive price reactions. By contrast, Q1 and Q2 2025 featured earnings declines tied to higher provisions and unfavorable valuation adjustments, triggering sizeable share price declines. The current Q1 2026 report extends the record-asset and record tangible book trajectory while showing stabilizing asset quality, fitting into the recent recovery arc from mid-2025 credit headwinds.

Historical Comparison

+0.1% avg move · In the past five earnings releases, MBIN’s average 1-day move was 0.15%, with reactions ranging from...

earnings

+0.1%

Average Historical Move earnings

In the past five earnings releases, MBIN’s average 1-day move was 0.15%, with reactions ranging from sharp gains to double-digit drops. Today’s 1.67% move is modest versus that history but still consistent with the pattern of positive response to strong, balance-sheet-focused quarters.

Across recent earnings, Merchants has evolved from mid-2025 results constrained by elevated credit loss provisions toward later quarters emphasizing record assets, rising tangible book value, and improving criticized loan trends. The Q1 2026 report continues this progression, pairing record asset and tangible book levels with signs of stabilizing asset quality.

Market Pulse Summary

This announcement highlights record $20.3B in assets, a new high tangible book value of $38.55 per s...

Analysis

This announcement highlights record $20.3B in assets, a new high tangible book value of $38.55 per share, and improving asset quality with criticized loans down 31% year over year. Compared with earlier 2025 quarters that were pressured by higher provisions, Q1 2026 extends the recovery trend. Investors may focus on ongoing credit metrics, loan growth mix, and noninterest income drivers such as mortgage servicing rights valuations in future results.

Key Terms

tangible book value, criticized loans, allowance for credit losses, credit default swaps, +3 more

7 terms

tangible book value financial

"Tangible book value per common share reached a new record level of $38.55..."

Tangible book value is the accounting measure of a company’s net worth after removing intangible items like goodwill, patents and trademarks, leaving only physical and financial assets minus liabilities. For investors it offers a clearer view of the company’s hard-asset backing per share—like estimating the cash you could get by selling the furniture, machinery and cash in a house—helping gauge downside risk and whether a stock may be cheaply valued.

criticized loans financial

"Asset quality continued to stabilize, as criticized loans receivable of $505.5 million..."

Criticized loans are bank loans that examiners or the bank itself have flagged as showing signs of weakness—such as higher risk of late payments, reduced collateral value, or borrower stress—but that are not yet officially defaulted. They matter to investors because a growing pile of such loans can signal deteriorating credit quality and higher future losses for a lender, much like small warning lights on a car dashboard that suggest a problem that, if ignored, could lead to a breakdown.

allowance for credit losses financial

"The allowance for credit losses on loans of $76.8 million, as of March 31, 2026..."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

credit default swaps financial

"As of March 31, 2026, 6% of the criticized loans were covered by credit default swaps."

A credit default swap is a contract where one party pays a regular fee to another in exchange for a payout if a borrower (like a company or government) fails to repay its debt—think of it as an insurance policy on a loan. Investors use these contracts to protect against losses, to express views on a borrower’s financial health, or to speculate, and heavy buying or selling of this protection can change bond prices and signal rising or falling credit risk.

mortgage servicing rights financial

"higher positive fair value adjustments to mortgage servicing rights and certain derivatives."

Mortgage servicing rights are the contractual right to collect mortgage payments, manage escrow accounts, handle customer service and delinquency actions on a pool of home loans, in exchange for a portion of the loan’s payments. They matter to investors because their value behaves like a revenue stream that can rise or fall with interest rates and borrower behavior — similar to owning a toll bridge where income depends on traffic volume and maintenance costs — and thus affect a lender’s earnings and risk profile.

net interest margin financial

"Net interest margin of 2.92% increased three basis points compared to 2.89%."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

nonperforming loans financial

"As of March 31, 2026, non-performing loans were $247.5 million, or 2.16% of loans receivable..."

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

AI-generated analysis. Not financial advice.

• First quarter 2026 net income of $67.7 million, increased $9.5 million, or 16%, compared to first quarter of 2025 and was relatively stable compared to the fourth quarter 2025.
• First quarter 2026 diluted earnings per common share of $1.25 increased 34% compared to the first quarter of 2025 and decreased 2% compared to the fourth quarter of 2025.
• Total assets of $20.3 billion reflected the highest level ever reported by the Company, increasing 8% compared to March 31, 2025 and 4% compared to December 31, 2025.
• Tangible book value per common share reached a new record level of $38.55, increasing 10% from $34.90 at March 31, 2025, and 3% from $37.51 at December 31, 2025.
• Asset quality continued to stabilize, as criticized loans receivable of $505.5 million decreased by 31% from March 31, 2025, and 1% from December 31, 2025. 
• Capital ratios have remained elevated, with a total capital ratio of 12.8%, reflecting the Company's continued emphasis on financial strength and balance sheet resilience.
• Liquidity remained strong, with $11.1 billion, or 55% of total assets, comprising of unused borrowing capacity of $3.9 billion through the Federal Home Loan Bank and the Federal Reserve Discount Window, as well as cash and cash equivalents, short‑term investments (including interest‑earning demand deposits), mortgage loans in process of securitization, loans held for sale, and warehouse lines of credit included in loans receivable.
• Loans receivable, net of allowance for credit losses, totaled $11.4 billion, increasing $1.1 billion, or 10%, from March 31, 2025, and $448.5 million, or 4%, from December 31, 2025.
• Total deposits of $13.0 billion increased 4% from March 31, 2025 and remained relatively flat compared to December 31, 2025. Core deposits of $12.1 billion increased $781.4 million, or 7% during the quarter, while brokered deposits declined $870.8 million, or 50%, to $886.5 million. Core deposits now represent 93% of total deposits.
• The Company repurchased 73,164 shares of common stock for $3.0 million, pursuant to its previously authorized share repurchase program.
• During the quarter, the Company's Memorandum of Understanding from mid-2025 with the FDIC and IDFI was terminated, following progress made by management in addressing the MOU provisions.

CARMEL, Ind., April 28, 2026 /PRNewswire/ -- Merchants Bancorp (the "Company" or "Merchants") (Nasdaq: MBIN), parent company of Merchants Bank, today reported first quarter 2026 net income of $67.7 million, or diluted earnings per common share of $1.25. This compared to $58.2 million, or diluted earnings per common share of $0.93 in the first quarter of 2025, and compared to $67.8 million, or diluted earnings per common share of $1.28 in the fourth quarter of 2025.

"Achieving record‑high assets of $20.3 billion and a record tangible book value of $38.55 per share in the same quarter underscores the strength of our balance sheet and the momentum we are building. Just as important, asset quality continues to stabilize, positioning us exceptionally well as we move forward with confidence," said Michael F. Petrie, Chairman and CEO of Merchants.

Michael J. Dunlap, President and Chief Operating Officer of Merchants, added, "Our results during the quarter reflected the dedication and resilience of our team. Our people remain accountable, collaborative, and disciplined in their work, reinforcing the culture that defines our organization while supporting the continued execution of our strategic plan." 

Net income for the first quarter of 2026 was $67.7 million, representing an increase of $9.5 million, or 16%, compared to the first quarter of 2025.  The improvement was primarily attributable to a $22.9 million, or 97%, increase in noninterest income driven principally by higher positive fair value adjustments to mortgage servicing rights and certain derivatives. Net income also benefited from a $6.5 million, or 5%, increase in net interest income. These increases were partially offset by a $14.0 million, or 23%, increase in noninterest expense and a $7.6 million increase in the provision for credit losses.

Net income of $67.7 million for the first quarter of 2026 remained relatively consistent with the fourth quarter of 2025. Results reflected a $12.5 million, or 45%, decrease in the provision for credit losses and an $8.0 million, or 10%, decrease in noninterest expense, primarily attributable to lower costs associated with credit risk transfer premiums and salaries and employee benefits. These increases to net income were offset by a $9.4 million, or 7%, decrease in net interest income, and a $10.5 million, or 175%, increase in the provision for income taxes, reflecting lower utilization of tax credits compared to the prior quarter. While noninterest income was relatively flat during the quarter, a $12.2 million decrease in gain on sale of loans was nearly offset by the $10.9 million increase in loan servicing fees that reflected higher fair market value adjustments for mortgage servicing rights.

Total Assets
Total assets were $20.3 billion at March 31, 2026, increasing $1.5 billion, or 8%, compared to March 31, 2025, and $872.8 million, or 4%, compared to December 31, 2025. The increases for both periods were primarily due to higher balances in the multi-family and warehouse portfolios, including those held for sale and held for investment. These were partially offset by lower balances in the healthcare loan portfolio.

Asset Quality
The allowance for credit losses on loans of $76.8 million, as of March 31, 2026, decreased by $6.6 million, or 8%, compared to March 31, 2025, and $6.5 million, or 8%, compared to December 31, 2025.  The decreases for both periods were primarily attributable to charge-offs on loans with specific reserves.

During the first quarter of 2026, the Company recorded charge-offs across seven relationships, primarily in the healthcare and multi-family loan portfolios, totaling $23.0 million, and had $616,000 in recoveries. Nearly 75% of the charge-offs in the first quarter of 2026 were associated with two loan relationships.  This compares to $10.5 million in charge-offs and $28,000 in recoveries during the first quarter of 2025 and $38.0 million in charge-offs and $76,000 in recoveries in the fourth quarter of 2025.

The increases to provision for credit losses for the last several quarters were largely associated with declines on certain multi-family property values after receiving new appraisals and the ongoing investigation of borrowers involved in mortgage fraud or suspected fraud, as well as loan growth. The increases were also attributable to certain types of subordinated loans that the Company no longer offers to borrowers.  These underperforming loans have been largely identified and evaluated for potential losses that have either been included in the allowance for credit losses on loans as specific reserves or charged off.

Overall, criticized loans receivable of $505.5 million declined by $226.0 million, or 31%, compared to March 31, 2025, and declined by $2.7 million, or 1% compared to December 31, 2025. This decline reinforces the view that the frequency of migration to criticized status would stabilize and eventually subside, driven by favorable market conditions and the Company's efforts with proactive portfolio management. As of March 31, 2026, 6% of the criticized loans were covered by credit default swaps.

As of March 31, 2026, all substandard loans have been evaluated for impairment, and these loans have specific reserves of $11.7 million.  The Company believes that the remaining loan portfolio remains well collateralized. Non-performing loans increased $50.0 million, or 25%, during the quarter, primarily attributable to four relationships in the multi-family portfolio. As of March 31, 2026, non-performing loans were $247.5 million, or 2.16% of loans receivable, compared to $284.6 million, or 2.73%, as of March 31, 2025, and $197.8 million, or 1.79%, as of December 31, 2025. 

Total delinquent loans declined 28%, from $334.7 million as of March 31, 2025, to $242.5 million as of March 31, 2026 and increased 17% from December 31, 2025. As of March 31, 2026, 11% of the delinquent loans were covered by credit default swaps.

The Company has been making additional efforts to reduce its credit risk through loan sale and securitization activities since 2019.  Since 2023, the Company has strategically executed credit protection arrangements through credit default swaps and a credit-linked note to reduce risk of losses, with coverage ranging from 13-15% of the unpaid principal balances for each arrangement.  Despite having credit protection on these loans, the Company is required to carry an allowance for credit losses on loans held for investment. As of March 31, 2026, the credit- linked note was repaid in full and the remaining balance of loans protected by credit default swaps was $2.5 billion.

Total Deposits
Total deposits of $13.0 billion at March 31, 2026 increased by $545.6 million, or 4%, compared to March 31, 2025, and remained relatively unchanged compared to December 31, 2025. The increase compared to March 31, 2025 primarily reflects the growth in core deposits.

Core deposits of $12.1 billion at March 31, 2026 reflected increases of $1.4 billion, or 13%, from March 31, 2025 and $781.4 million, or 7%, from December 31, 2025. Core deposits represented 93% of total deposits at March 31, 2026, 86% of total deposits at March 31, 2025, and 87% of total deposits at December 31, 2025.

Brokered deposits of $886.5 million at March 31, 2026 decreased $831.9 million, or 48%, from March 31, 2025 and $870.8 million, or 50%, from December 31, 2025.   As of March 31, 2026, brokered certificates of deposit had a weighted average remaining duration of 88 days.

Liquidity
The Company maintains exceptional liquidity, supported by substantial borrowing capacity, including unused lines of credit totaling $3.9 billion as of March 31, 2026, compared to $4.7 billion at March 31, 2025 and $5.3 billion at December 31, 2025. 

The Company's most liquid assets are in cash and cash equivalents, short-term investments, including interest-earning demand deposits, mortgage loans in process of securitization, loans held for sale, and warehouse lines of credit included in loans receivable. Combined with unused borrowing capacity of $3.9 billion, these totaled $11.1 billion, or 55%, of its $20.3 billion total assets as of March 31, 2026.

This liquidity position provides the Company with flexibility to manage funding costs, interest expense, and asset levels. In addition, the Company's business model is designed to continuously sell or securitize a significant portion of its loans, which provides flexibility in managing its liquidity. 

Comparison of Operating Results for the Three Months Ended

March 31, 2026 and 2025

Net Interest Income of $128.6 million increased $6.5 million, or 5%, reflecting lower interest expense on certificates of deposits and borrowings, partially offset by higher interest expense on interest-bearing checking accounts and lower interest income on loans and loans held for sale.

• Net interest margin of 2.92% increased three basis points compared to 2.89%. 
• Interest rate spread of 2.50% increased 12 basis points compared to 2.38%.

Interest Income of $270.5 million decreased $16.7 million, or 6%, compared to $287.2 million. The decrease was primarily attributable to lower average yields on higher average balances on loans and loans held for sale, as well as lower average yields on lower average balances on securities held to maturity.

• Average yields on loans and loans held for sale of 6.34% decreased 72 basis points compared to 7.06%.
• Average balances of $14.7 billion for loans and loans held for sale increased by $990.1 million, or 7%, compared to $13.8 billion.
• Average yields on securities held to maturity of 5.29% decreased 72 basis points compared to 6.01%.
• Average balances of $1.5 billion for securities held to maturity decreased by $150.5 million, or 9%, compared to $1.6 billion.

Interest Expense of $141.9 million decreased $23.1 million, or 14%, compared to $165.0 million.  The decrease reflected lower average balances at lower average rates on certificates of deposit, and lower average rates on borrowings, which were partially offset by higher average balances at lower average rates on interest-bearing checking accounts.

• Average balances of $1.6 billion for certificates of deposit decreased by $1.8 billion, or 54%, compared to $3.4 billion.
• Average interest rates of 3.92% for certificates of deposit decreased by 75 basis points compared to 4.67%.
• Average interest rates of 4.14% for borrowings decreased by 119 basis points compared to 5.33%.
• Average balances on interest-bearing checking accounts of $7.2 billion increased by $2.1 billion, or 41%, compared to $5.1 billion.
• Average interest rates of 3.42% for interest-bearing checking accounts decreased by 59 basis points compared to 4.01%.

Noninterest Income of $46.6 million increased $22.9 million, or 97%, compared to $23.7 million. The $22.9 million increase reflected an $11.1 million, or 277%, increase in loan servicing fees, a $10.1 million, or 319% increase in other noninterest income, and a $1.9 million, or 16%, increase in gain on sale of loans.    

• Loan servicing fees included an $8.9 million positive fair market value adjustment to servicing rights, with a $1.6 million positive adjustment in the Banking segment and a $7.4 positive adjustment in the Multi-family Mortgage Banking segment.  This is compared to a $754,000 negative fair market value adjustment to servicing rights in the prior period with a $1.2 million negative adjustment in the Banking segment and a $449,000 positive adjustment in the Multi-family Mortgage Banking segment. The value of servicing rights generally increases in rising 10-year interest rate environments and declines in falling interest rate environments due to expected prepayments and earning rates that are influenced by projected future interest rates on escrow deposits.
• Other income included a $2.7 million positive fair market value adjustment to floor derivatives, reflected in the Warehouse segment, compared to a $2.3 million negative fair market value adjustment in the prior period.

Noninterest Expense of $75.6 million increased $14.0 million, or 23%, primarily due to a $7.5 million increase in other noninterest expense that included $3.1 million in collateral preservation expenses associated with taxes, insurance, property expenses, and legal fees related to nonperforming assets. The increase also reflects a $2.1 million, or 6%, increase in salaries and employee benefits to support business growth, a $1.9 million increase in credit risk transfer premium expense associated with credit default swaps, as well as $1.2 million, or 16%, increase in deposit insurance expense primarily associated with asset quality.

Comparison of Operating Results for the Three Months Ended

March 31, 2026 and December 31, 2025

Net Interest Income of $128.6 million decreased $9.4 million, or 7%, reflecting lower interest income on loans and loans held for sale, partially offset by lower interest expense on deposits and borrowing.

• Net interest margin of 2.92% increased three basis points compared to 2.89%.
• Interest rate spread of 2.50% increased six basis points compared to 2.44%.

Interest Income of $270.5 million decreased $37.0 million, or 12%, compared to $307.5 million, primarily reflecting lower average yields on lower average balances on loans and loans held for sale.

• Average yields on loans and loans held for sale of 6.34% decreased 32 basis points compared to 6.66%.
• Average balances of $14.7 billion for loans and loans held for sale decreased 4% compared to $15.4 billion.

Interest Expense of $141.9 million decreased $27.5 million, or 16% compared to $169.4 million. The decrease was primarily driven by lower average rates on lower average balances on interest-bearing checking accounts and borrowings.  

• Average interest rates on interest-bearing checking accounts of 3.42% decreased by 31 basis points compared to 3.73%.
• Average balances of $7.2 billion for interest-bearing checking accounts decreased $426.1 million, or 6%, compared to $7.6 billion.
• Average interest rates on borrowings of 4.14% decreased by 74 basis points compared to 4.88%.
• Average balances of $3.1 billion for borrowings decreased $368.5 million, or 11%, compared to $3.5 billion.

Noninterest Income of $46.6 million declined slightly compared to $47.2 million. Results reflected a $12.2 million, or 48%, decrease in gain on sale of loans and a $2.6 million, or 45%, decrease in syndication and asset management fees. This was partially offset by a $10.9 million, or 257%, increase in loan servicing fees and a $3.5 million, or 36%, increase in other income.

• Gain on sale of loans decreased $12.2 million, or 48%, primarily due to higher 10-year interest rates, which delayed borrower decisions to transition to permanent fixed-rate loans. This impact was partially offset by the increase in the fair value adjustments of mortgage servicing rights and floor derivatives as detailed below.
• Loan servicing fees included an $8.9 million positive fair market value adjustment to servicing rights, with a $1.6 million positive adjustment in the Banking segment and a $7.4 million positive adjustment in the Multi-family Mortgage Banking segment. This compared to a $179,000 negative fair market value adjustment to servicing rights in the prior period, with a $275,000 negative adjustment in the Banking segment and a $96,000 positive adjustment in the Multi-family Mortgage Banking segment. The value of servicing rights generally increases in rising 10-year interest rate environments and declines in falling interest rate environments due to expected prepayments and earning rates that are influenced by projected future interest rates on escrow deposits.
• Other income included a $2.7 million positive fair market value adjustment to floor derivatives, reflected in the Warehouse segment, compared to a $4.2 million positive fair market value adjustment to derivatives in the prior period. The prior quarter also reflected an impairment of $4.1 million for an investment in a joint venture that was not repeated in the first quarter 2026.

Noninterest Expense of $75.6 million decreased $8.0 million, or 10%, compared to $83.6 million, primarily due to a $3.8 million, or 9%, decrease in salaries and employee benefits that reflected lower commissions on lower noninterest income, a $2.4 million, or 30%, decrease in credit risk transfer premium expense associated with credit default swaps, and a $1.4 million, or 10%, decrease in other expenses.

About Merchants Bancorp
Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana operating multiple segments, including Multi-family Mortgage Banking that primarily offers multi-family housing and healthcare facility financing and servicing (through this segment it also serves as a syndicator of low-income housing tax credit and debt funds); Mortgage Warehousing that offers mortgage warehouse financing, commercial loans, and deposit services; and Banking that offers retail and correspondent residential mortgage banking, agricultural lending, and traditional community banking.  Merchants Bancorp, with $20.3 billion in assets and $13.0 billion in deposits as of March 31, 2026, conducts its business primarily through its direct and indirect subsidiaries, Merchants Bank of Indiana, Merchants Capital Corp., Merchants Capital Investments, LLC, Merchants Capital Servicing, LLC, Merchants Investment Partners, LLC, and Merchants Mortgage, a division of Merchants Bank of Indiana. For more information and financial data, please visit Merchants' Investor Relations page at investors.merchantsbancorp.com.

Forward-Looking Statements
This press release contains forward-looking statements which reflect management's current views with respect to, among other things, future events and financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, management cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  A number of important factors could cause actual results to differ materially from those indicated in these forward-looking statements, including the impacts of factors identified in "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission.  Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
		March 31,		December 31,		September 30,		June 30,		March 31,
		2026		2025		2025		2025		2025
Assets
Cash and due from banks		$             19,642		$             15,844		$             11,566		$             15,419		$             15,609
Interest-earning demand accounts		63,573		196,358		586,470		631,746		505,687
Cash and cash equivalents		83,215		212,202		598,036		647,165		521,296
Securities purchased under agreements to resell		1,511		1,520		1,529		1,539		1,550
Mortgage loans in process of securitization		437,001		620,094		414,786		402,427		389,797
Securities available for sale (includes $550,207, $571,314, $591,379, $602,962 and $626,271 at fair value)		843,896		865,058		885,070		936,343		961,183
Securities held to maturity (fair value of $1,426,444, $1,543,554, $1,670,306, $1,547,525 and $1,605,151)		1,425,982		1,543,659		1,670,555		1,548,211		1,606,286
Federal Home Loan Bank (FHLB) stock and other equity securities		227,589		227,589		217,850		217,850		217,850
Loans held for sale (includes $163,426, $76,980, $112,832, $91,930 and $75,920 at fair value)		4,709,688		3,873,012		4,129,329		4,105,765		3,983,452
Loans receivable (includes $46,427, $47,318, $0, $0 and $0 at fair value), net of allowance for credit losses on loans of $76,831, $83,301, $93,330, $91,811 and $83,413		11,399,882		10,951,381		10,515,221		10,432,117		10,343,724
Premises and equipment, net		73,695		73,929		75,148		71,050		67,787
Servicing rights		229,576		217,296		213,156		193,037		189,711
Interest receivable		77,326		81,807		82,445		82,391		82,811
Goodwill		8,014		8,014		8,014		8,014		8,014
Other real estate owned		60,226		60,145		4,347		7,049		7,049
Other assets and receivables		744,181		713,237		539,161		488,246		417,290
Total assets		$     20,321,782		$     19,448,943		$     19,354,647		$     19,141,204		$     18,797,800
Liabilities and Shareholders' Equity
Liabilities
Deposits
Noninterest-bearing		$           501,864		$           604,081		$           399,814		$           315,523		$           313,296
Interest-bearing		12,449,889		12,437,111		13,534,891		12,371,312		12,092,869
Total deposits		12,951,753		13,041,192		13,934,705		12,686,835		12,406,165
Borrowings		4,773,490		3,842,592		2,902,631		4,009,474		4,001,744
Deferred and current tax liabilities, net		46,403		33,900		28,973		29,228		35,740
Other liabilities		219,833		250,500		262,904		231,035		193,416
Total liabilities		17,991,479		17,168,184		17,129,213		16,956,572		16,637,065
Commitments and  Contingencies
Shareholders' Equity
Common stock, without par value
Authorized - 75,000,000 shares
Issued and outstanding  - 45,935,408 shares, 45,893,172 shares, 45,889,238 shares, 45,885,458 shares and 45,881,706 shares		243,433		243,310		242,371		241,452		240,512
Preferred stock, without par value - 5,000,000 total shares authorized
6% Series C Preferred stock - $1,000 per share liquidation preference
Authorized - 200,000 shares
Issued and outstanding - 196,181 shares (equivalent to 7,847,233 depositary shares)		191,084		191,084		191,084		191,084		191,084
8.25% Series D Preferred stock - $1,000 per share liquidation preference
Authorized - 300,000 shares
Issued and outstanding - 142,500 shares (equivalent to 5,700,000 depositary shares)		137,459		137,459		137,459		137,459		137,459
7.625% Series E Preferred stock - $1,000 per share liquidation preference
Authorized - 230,000 shares
Issued and outstanding - 230,000 shares (equivalent to 9,200,000 depositary shares)		222,748		222,748		222,748		222,748		222,748
Retained earnings		1,536,383		1,486,191		1,431,983		1,392,136		1,369,009
Accumulated other comprehensive loss		(804)		(33)		(211)		(247)		(77)
Total shareholders' equity		2,330,303		2,280,759		2,225,434		2,184,632		2,160,735
Total liabilities and shareholders' equity		$     20,321,782		$     19,448,943		$     19,354,647		$     19,141,204		$     18,797,800

 

Consolidated Statement of Income
(Unaudited)
(In thousands, except share data)
		Three Months Ended									Change
		March 31,			December 31,			March 31,			1Q26		1Q26
		2026			2025			2025			vs. 4Q25		vs. 1Q25
Interest Income
Loans		$	230,269		$	258,090		$	239,280		-11 %		-4 %
Mortgage loans in process of securitization			4,387			6,719			3,743		-35 %		17 %
Investment securities:
Available for sale			9,942			11,178			12,358		-11 %		-20 %
Held to maturity			19,479			23,182			24,358		-16 %		-20 %
FHLB stock and other equity securities (dividends)			4,394			4,723			4,372		-7 %		1 %
Other			2,040			3,577			3,093		-43 %		-34 %
Total interest income			270,511			307,469			287,204		-12 %		-6 %
Interest Expense
Deposits			109,849			126,288			123,941		-13 %		-11 %
Short-term borrowings			28,937			34,283			33,364		-16 %		-13 %
Long-term borrowings			3,077			8,812			7,703		-65 %		-60 %
Total interest expense			141,863			169,383			165,008		-16 %		-14 %
Net Interest Income			128,648			138,086			122,196		-7 %		5 %
Provision for credit losses			15,299			27,761			7,727		-45 %		98 %
Net Interest Income After Provision for Credit Losses			113,349			110,325			114,469		3 %		-1 %
Noninterest Income
Gain on sale of loans			13,506			25,730			11,619		-48 %		16 %
Loan servicing fees, net			15,099			4,235			4,010		257 %		277 %
Mortgage warehouse fees			1,620			1,801			1,513		-10 %		7 %
Syndication and asset management fees			3,117			5,680			3,389		-45 %		-8 %
Other income			13,257			9,755			3,162		36 %		319 %
Total noninterest income			46,599			47,201			23,693		-1 %		97 %
Noninterest Expense
Salaries and employee benefits			38,565			42,375			36,419		-9 %		6 %
Loan expense			1,185			1,004			798		18 %		48 %
Occupancy and equipment			3,081			3,382			2,351		-9 %		31 %
Professional fees			2,767			3,436			2,894		-19 %		-4 %
Deposit insurance expense			8,408			8,040			7,228		5 %		16 %
Technology expense			2,679			2,611			2,374		3 %		13 %
Credit risk transfer premium expense			5,764			8,198			3,862		-30 %		49 %
Other expense			13,193			14,596			5,738		-10 %		130 %
Total noninterest expense			75,642			83,642			61,664		-10 %		23 %
Income Before Income Taxes			84,306			73,884			76,498		14 %		10 %
Provision for income taxes			16,574			6,035			18,259		175 %		-9 %
Net Income		$	67,732		$	67,849		$	58,239		—		16 %
Dividends on preferred stock			(10,265)			(10,266)			(10,265)		—		—
Impact of preferred stock redemption			—			1,215			(5,371)		-100 %		-100 %
Net Income Available to Common Shareholders		$	57,467		$	58,798		$	42,603		-2 %		35 %
Basic Earnings Per Share		$	1.25		$	1.28		$	0.93		-2 %		34 %
Diluted Earnings Per Share		$	1.25		$	1.28		$	0.93		-2 %		34 %
Weighted-Average Shares Outstanding
Basic			45,929,936			45,891,077			45,824,022
Diluted			45,997,744			45,976,153			45,914,083

 

Key Operating Results
(Unaudited)
($ in thousands, except share data)
			Three Months Ended									Change
			March 31,			December 31,			March 31,			1Q26		1Q26
			2026			2025			2025			vs. 4Q25		vs. 1Q25
Noninterest expense			$                 75,642			$                83,642			$               61,664			-10 %		23 %
Net interest income (before provision for credit losses)			128,648			138,086			122,196			-7 %		5 %
Noninterest income			46,599			47,201			23,693			-1 %		97 %
Total income			$               175,247			$              185,287			$             145,889			-5 %		20 %
Efficiency ratio			43.16	%		45.14	%		42.27	%		(198)	bps	89	bps
Average assets			$          18,952,948			$        19,815,940			$       17,831,950			-4 %		6 %
Net income			67,732			67,849			58,239			—		16 %
Return on average assets before annualizing			0.36	%		0.34	%		0.33	%
Annualization factor			4.00			4.00			4.00
Return on average assets			1.43	%		1.37	%		1.31	%		6	bps	12	bps
Return on average tangible common shareholders' equity (1)			13.01	%		13.76	%		10.65	%		(75)	bps	236	bps
Tangible book value per common share (1)			$                    38.55			$                  37.51			$                 34.90			3 %		10 %
Tangible common shareholders' equity/tangible assets (1)			8.72	%		8.85	%		8.52	%		(13)	bps	20	bps
Consolidated ratios
Total capital/risk-weighted assets(2)			12.8	%		13.6	%		13.0	%
Tier I capital/risk-weighted assets(2)			12.3	%		13.1	%		12.4	%
Common Equity Tier I capital/risk-weighted assets(2)			9.4	%		9.9	%		9.2	%
Tier I capital/average assets(2)			12.3	%		11.5	%		12.1	%
(1) Non-GAAP financial measure - see "Reconciliation of Non-GAAP Measures" below:
(2) As defined by regulatory agencies; March 31, 2026 shown as estimates and prior periods shown as reported.
Certain non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company's financial condition, results of operations and cash flows computed in accordance with GAAP; however, they do have a number of limitations.  As such, the reader should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable  to non-GAAP financial measures that other companies use.  A reconciliation of GAAP to non-GAAP financial measures is below.  Net Income Available to Common Shareholders excludes preferred stock dividends.  Tangible common shareholders' equity is calculated by excluding the balance of goodwill and other intangible assets and preferred stock from the calculation of total equity.  Tangible Assets is calculated by excluding the balance of goodwill and intangible assets.  Tangible book value per share is calculated by dividing tangible common shareholders' equity by the number of shares outstanding.
			Three Months Ended									Change
			March 31,			December 31,			March 31,			1Q26		1Q26
			2026			2025			2025			vs. 4Q25		vs. 1Q25
Average shareholders' equity			$            2,326,390			$           2,268,832			$         2,160,169			3 %		8 %
Less: average goodwill & intangibles			(8,048)			(8,054)			(8,070)			—		—
Less: average preferred stock			(551,291)			(551,291)			(552,633)			—		—
Average tangible common shareholders' equity			$            1,767,051			$           1,709,487			$         1,599,466			3 %		10 %
Annualization factor			4.00			4.00			4.00
Return on average tangible common shareholders' equity			13.01	%		13.76	%		10.65	%		(75)	bps	236	bps
Total equity			$            2,330,303			$           2,280,759			$         2,160,735			2 %		8 %
Less: goodwill and intangibles			(8,045)			(8,051)			(8,068)			—		—
Less: preferred stock			(551,291)			(551,291)			(551,291)			—		—
Tangible common shareholders' equity			$            1,770,967			$           1,721,417			$         1,601,376			3 %		11 %
Assets			$          20,321,782			$        19,448,943			$       18,797,800			4 %		8 %
Less: goodwill and intangibles			(8,045)			(8,051)			(8,068)			—		—
Tangible assets			$          20,313,737			$        19,440,892			$       18,789,732			4 %		8 %
Ending common shares			45,935,408			45,893,172			45,881,706
Tangible book value per common share			$                    38.55			$                  37.51			$                 34.90			3 %		10 %
Tangible common shareholders' equity/tangible assets			8.72	%		8.85	%		8.52	%		(13)	bps	20	bps

 

Merchants Bancorp
Average Balance Analysis
($ in thousands)
(Unaudited)
	Three Months Ended
	March 31, 2026				December 31, 2025				March 31, 2025
	Average		Yield/		Average		Yield/		Average		Yield/
	Balance	Interest	Rate		Balance	Interest	Rate		Balance	Interest	Rate
Assets:
Interest-earning deposits, and other interest or dividends	$      433,306	$     6,434	6.02 %		$      556,453	$    8,300	5.92 %		$        511,077	$    7,465	5.92 %
Securities available for sale	856,846	9,942	4.71 %		870,949	11,178	5.09 %		961,065	12,358	5.21 %
Securities held to maturity	1,493,185	19,479	5.29 %		1,627,341	23,182	5.65 %		1,643,703	24,358	6.01 %
Mortgage loans in process of securitization	338,052	4,387	5.26 %		506,704	6,719	5.26 %		277,426	3,743	5.47 %
Loans and loans held for sale	14,741,304	230,269	6.34 %		15,368,719	258,090	6.66 %		13,751,197	239,280	7.06 %
Total interest-earning assets	17,862,693	270,511	6.14 %		18,930,166	307,469	6.44 %		17,144,468	287,204	6.79 %
Allowance for credit losses on loans	(85,226)				(99,349)				(86,711)
Noninterest-earning assets	1,175,481				985,123				774,193
Total assets	$  18,952,948				$ 19,815,940				$   17,831,950
Liabilities & Shareholders' Equity:
Interest-bearing checking	$   7,199,340	60,763	3.42 %		$   7,625,489	71,599	3.73 %		$     5,121,343	50,609	4.01 %
Money market /savings deposits	3,925,326	34,000	3.51 %		3,870,411	35,743	3.66 %		3,544,828	34,521	3.95 %
Certificates of deposit	1,562,186	15,086	3.92 %		1,818,058	18,946	4.13 %		3,369,269	38,811	4.67 %
Total interest-bearing deposits	12,686,852	109,849	3.51 %		13,313,958	126,288	3.76 %		12,035,440	123,941	4.18 %
Borrowings	3,137,379	32,014	4.14 %		3,505,903	43,095	4.88 %		3,125,935	41,067	5.33 %
Total interest-bearing liabilities	15,824,231	141,863	3.64 %		16,819,861	169,383	4.00 %		15,161,375	165,008	4.41 %
Noninterest-bearing deposits	560,176				492,650				294,248
Noninterest-bearing liabilities	242,151				234,597				216,158
Total liabilities	16,626,558				17,547,108				15,671,781
Shareholders' equity	2,326,390				2,268,832				2,160,169
Total liabilities and shareholders' equity	$  18,952,948				$ 19,815,940				$   17,831,950
Net interest income		$ 128,648				$ 138,086				$ 122,196
Net interest spread			2.50 %				2.44 %				2.38 %
Net interest-earning assets	$   2,038,462				$   2,110,305				$     1,983,093
Net interest margin			2.92 %				2.89 %				2.89 %
Average interest-earning assets to average interest-bearing liabilities			112.88 %				112.55 %				113.08 %

 

Supplemental Results
(Unaudited)
($ in thousands)
				Net Income
				Three Months Ended
				March 31,			December 31,			March 31,
				2026			2025			2025
Segment
Multi-family Mortgage Banking				$           11,014			$            15,397			$              3,413
Mortgage Warehousing				28,648			34,996			15,398
Banking				37,980			30,773			47,107
Other				(9,910)			(13,317)			(7,679)
Total				$           67,732			$            67,849			$            58,239
				Total Assets
				March 31, 2026			December 31, 2025			March 31, 2025
				Amount	%		Amount	%		Amount	%
Segment
Multi-family Mortgage Banking				$         522,976	3 %		$          526,423	3 %		$          460,441	3 %
Mortgage Warehousing				8,544,107	42 %		7,251,653	37 %		5,902,165	31 %
Banking				10,850,657	53 %		11,307,401	58 %		12,002,564	64 %
Other				404,042	2 %		363,466	2 %		432,630	2 %
Total				$    20,321,782	100 %		$    19,448,943	100 %		$    18,797,800	100 %
				Gain on Sale of Loans
				Three Months Ended
				March 31,			December 31,			March 31,
				2026			2025			2025
Loan Type
Multi-family				$           11,422			$            24,823			$            10,125
Single-family				388			(328)			206
Small Business Association (SBA)				1,696			1,235			1,288
Total				$           13,506			$            25,730			$            11,619
				Servicing Rights
				Three Months Ended
				March 31,			December 31,			March 31,
				2026			2025			2025
Balance, beginning of period				$         217,296			$          213,156			$          189,935
Additions
Purchased servicing				125			1,554			—
Originated servicing				5,749			7,484			3,338
Subtractions
Paydowns				(2,532)			(4,719)			(2,808)
Changes in fair value				8,938			(179)			(754)
Balance, end of period				$         229,576			$          217,296			$          189,711

 

Supplemental Results
(Unaudited)
($ in thousands)
				Loans Receivable and Loans Held for Sale
				March 31,				December 31,				March 31,
				2026				2025				2025
Mortgage warehouse repurchase agreements (4)				$      1,982,411				$      1,600,285				$      1,408,239
Residential real estate (1)				1,038,724				1,018,780				1,332,601
Multi-family financing				5,537,711				5,332,680				4,600,117
Healthcare financing				1,260,821				1,385,359				1,583,290
Commercial and commercial real estate (2)(3)(4)				1,560,788				1,603,551				1,418,741
Agricultural production and real estate				92,527				92,077				79,190
Consumer and margin loans				3,731				1,950				4,959
Loans receivable				11,476,713				11,034,682				10,427,137
Less: Allowance for credit losses on loans				76,831				83,301				83,413
Loans receivable, net				$    11,399,882				$    10,951,381				$    10,343,724
Loans held for sale (4)				4,709,688				3,873,012				3,983,452
Total loans, net of allowance				$    16,109,570				$    14,824,393				$    14,327,176
(1)     Includes $0.8 billion, $0.8 billion and $1.2 billion of All-In-One © first-lien home equity lines of credit as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(2)    Includes $0.9 billion, $0.9 billion and $0.8 billion of revolving  lines of credit collateralized primarily by mortgage servicing rights as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)     Includes only $19.7 million, $19.5 million and $19.5 million of non-owner occupied commercial real estate as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(4)    The warehouse portfolio is exclusively made up of loans to residential and multi-family mortgage bankers that are funding agency-eligible mortgages and commercial loans, which represent all of the Company's loans to non-depository institutions.
				Loan Credit Risk Profile
				March 31, 2026				December 31, 2025				March 31, 2025
				Amount		%		Amount		%		Amount		%
Pass				$    10,971,183		95.6 %		$    10,526,493		95.4 %		$      9,695,595		93.0 %
Special mention				234,346		2.0 %		204,918		1.9 %		407,895		3.9 %
Substandard				271,184		2.4 %		303,271		2.7 %		323,647		3.1 %
Criticized loans				505,530		4.4 %		508,189		4.6 %		731,542		7.0 %
Total loans receivable				$    11,476,713		100.0 %		$     11,034,682		100.0 %		$    10,427,137		100.0 %
Charge-offs (year-to-date)				$           22,979				$          124,116				$           10,507
Recoveries (year-to-date)				$                616				$                 127				$                  28
				Nonperforming Loans
				March 31,				December 31,				March 31,
				2026				2025				2025
Nonaccrual loans				$         239,108				$          197,812				$          284,019
90 days past due and still accruing				8,350				-				585
Total nonperforming loans				$         247,458				$          197,812				$          284,604
Other real estate owned				60,226				60,145				7,049
Total nonperforming assets				$         307,684				$          257,957				$          291,653
Nonperforming loans to total loans receivable				2.16	%			1.79	%			2.73	%
Nonperforming assets to total assets				1.51	%			1.33	%			1.55	%
				Delinquent Loans
				March 31,				December 31,				March 31,
				2026				2025				2025
Delinquent loans:
Loans receivable				$         242,271				$          206,561				$          304,560
Loans held for sale				264				265				30,103
Total delinquent loans				$         242,535				$          206,826				$          334,663
Total loans receivable and loans held for sale				$    16,186,401				$     14,907,694				$     14,410,589
Delinquent loans to total loans				1.50	%			1.39	%			2.32	%

 

Supplemental Results
(Unaudited)
($ in thousands)
				Deposits
				March 31,			December 31,			March 31,
				2026			2025			2025
Noninterest-bearing deposits
Core demand deposits				$          501,864			$          604,081			$          313,296
Interest-bearing deposits
Demand deposits:
Core demand deposits				$       6,949,611			$       6,207,814			$       5,432,133
Brokered demand deposits				301,111			600,000			—
Total interest-bearing demand deposits				7,250,722			6,807,814			5,432,133
Money market/savings deposits:
Core money market/savings deposits				3,872,344			3,566,523			3,618,210
Brokered money market/savings deposits				200,867			201,010			353
Total money market/savings deposits				4,073,211			3,767,533			3,618,563
Certificates of deposit:
Core certificates of deposits				741,452			905,448			1,324,126
Brokered certificates of deposits				384,504			956,316			1,718,047
Total certificates of deposits				1,125,956			1,861,764			3,042,173
Total interest-bearing deposits				12,449,889			12,437,111			12,092,869
Total deposits				$    12,951,753			$    13,041,192			$    12,406,165
Total core deposits				$    12,065,271			$    11,283,866			$    10,687,765
Total brokered deposits				886,482			1,757,326			1,718,400
Total deposits				$    12,951,753			$    13,041,192			$    12,406,165

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/merchants-bancorp-reports-first-quarter-2026-results-302755998.html

SOURCE Merchants Bancorp

FAQ

What were Merchants Bancorp (MBIN) Q1 2026 earnings and EPS?

Merchants reported Q1 2026 net income of $67.7 million and diluted EPS of $1.25. According to the company, net income increased $9.5 million year-over-year, driven by higher noninterest income and modest net interest income growth.

How large are Merchants Bancorp's (MBIN) total assets and tangible book value in Q1 2026?

Total assets were a record $20.3 billion and tangible book value per share was $38.55. According to the company, assets rose 8% year-over-year and tangible book value increased 10% from March 31, 2025.

What does Merchants Bancorp (MBIN) say about asset quality and criticized loans in Q1 2026?

Criticized loans declined to $505.5 million, a 31% year-over-year decrease. According to the company, this decline reflects portfolio remediation, favorable market conditions, and active portfolio management efforts.

How did Merchants Bancorp's (MBIN) deposit composition change in Q1 2026?

Core deposits grew to $12.1 billion, representing 93% of total deposits. According to the company, core deposits increased $781.4 million during the quarter while brokered deposits declined about 50% to $886.5 million.

What liquidity and capital metrics did Merchants Bancorp (MBIN) report for Q1 2026?

Liquidity totaled $11.1 billion, about 55% of total assets, and total capital ratio was 12.8%. According to the company, unused borrowing capacity was $3.9 billion, supporting balance sheet flexibility and liquidity management.