Merchants Bancorp (NASDAQ: MBIN) posts 106% jump in Q2 2026 net income
Rhea-AI Filing Summary
Merchants Bancorp reported strong second-quarter 2026 results, with net income of $78.3 million, or $1.48 diluted EPS, up from $38.0 million, or $0.60, a year earlier and $67.7 million, or $1.25, in the first quarter of 2026. Net income growth was driven mainly by an 83% reduction in provision for credit losses to $9.2 million and a 6% increase in net interest income to $136.5 million.
Total assets reached $21.2 billion, up 9% from December 31, 2025, while deposits grew to $14.3 billion. Core deposits rose 15% from December 31, 2025 to $13.0 billion and represented 91% of total deposits. Credit quality improved: criticized loans declined 12% since March 31, 2026 to $444.7 million, nonperforming loans fell to $205.6 million, or 1.67% of loans receivable, and delinquent loans decreased to $208.0 million, or 1.23% of total loans.
Liquidity remained high, supported by $5.5 billion of unused borrowing capacity; together with liquid assets, total available liquidity was $13.0 billion, or 61% of assets. Profitability metrics strengthened, including an annualized return on average assets of 1.52%, return on average tangible common equity of 14.95%, an efficiency ratio of 40.20%, and tangible book value per common share of $39.93, the 30th consecutive quarterly record.
Positive
- Net income rose 106% year over year to $78.3 million, with diluted EPS increasing to $1.48 from $0.60 in the second quarter of 2025.
- Provision for credit losses fell 83% year over year to $9.2 million, reflecting improved asset quality and materially boosting earnings.
- Credit metrics improved, with criticized loans down 12% since March 31, 2026 and nonperforming loans reduced to 1.67% of loans receivable.
- Profitability and capital strengthened, with annualized ROA at 1.52%, return on average tangible common equity at 14.95%, and tangible book value per share at a record $39.93.
Negative
- Gain on sale of loans was $13,160 thousand, down 44% year over year, contributing to a 10% decline in total noninterest income versus the second quarter of 2025.
Filing Explained
Credit metrics improved, but concentrated charge-offs and 51-day brokered certificates add specific credit and funding mechanics to the completed quarter.
This
Management described credit trends as improving, but the same release identifies a concentration within those charge-offs rather than a broad breakdown by loan type. The filing also says credit-default-swap coverage applied to
The
8-K Event Classification
Key Figures
Key Terms
criticized loans receivable financial
credit default swaps financial
efficiency ratio financial
net interest margin financial
Earnings Snapshot
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United States
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
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| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Item 2.02. Results of Operations and Financial Condition.
On July 28, 2026, Merchants Bancorp issued a press release reporting its financial results for the second quarter of 2026. The press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
|
Exhibit |
Description | |
| 99.1 | Press Release dated July 28, 2026 issued by Merchants Bancorp. | |
| 104 | Cover Page Interactive Data File. The cover page XBRL tags are embedded within the inline XBRL document. | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MERCHANTS BANCORP | ||
| Date: July 28, 2026 | By: | /s/ Terry Oznick |
| Name: Terry Oznick | ||
| Title: General Counsel | ||
Exhibit 99.1
PRESS RELEASE
Merchants Bancorp Reports Second Quarter of 2026 Results
For Release July 28, 2026
| · | Net income of $78.3 million in the second quarter of 2026 increased $40.3 million, or 106%, compared to the second quarter of 2025, and increased $10.6 million, or 16%, compared to the first quarter of 2026. |
| · | Diluted earnings per common share of $1.48 in the second quarter of 2026 increased 147% compared to the second quarter of 2025 and increased 18% compared to the first quarter of 2026. |
| · | Total assets reached $21.2 billion, marking the fifth consecutive quarter of new highs, while increasing 4% compared to March 31, 2026, and increasing 9% compared to December 31, 2025. |
| · | Tangible book value per common share increased to $39.93, its 30th consecutive quarterly high, rising 13% from $35.42 at June 30, 2025, and 4% from $38.55 at March 31, 2026. |
| · | Asset quality improved meaningfully, as criticized loans receivable of $444.7 million decreased $60.8 million, or 12%, from March 31, 2026, and decreased $63.5 million, or 12%, from December 31, 2025. |
| · | Nonperforming loans of $205.6 million decreased $41.8 million, or 17%, and total delinquent loans of $208.0 million decreased $34.6 million, or 14%, compared to March 31, 2026. |
| · | The provision for credit losses of $9.2 million decreased 83% compared to the second quarter of 2025 and decreased 40% compared to the first quarter of 2026. |
| · | Capital ratios remained strong, with a total capital ratio of 12.5%, reflecting the Company’s continued emphasis on financial strength and balance sheet resilience. |
| · | Liquidity remained strong at $13.0 billion, or 61% of total assets, supported by $5.5 billion of unused borrowing capacity with the Federal Home Loan Bank and Federal Reserve Discount Window and a diversified mix of highly liquid assets, including cash and cash equivalents, short-term investments, mortgage loans in process of securitization, loans held for sale, and warehouse lines of credit. |
| · | Loans receivable, net of allowance for credit losses, totaled $12.3 billion, increasing $862.9 million, or 8%, from March 31, 2026, and increasing $1.3 billion, or 12%, from December 31, 2025. |
| · | Total deposits of $14.3 billion increased $1.3 billion, or 10%, from March 31, 2026, and increased $1.2 billion, or 9%, compared to December 31, 2025. Core deposits of $13.0 billion increased $891.3 million compared to March 31, 2026, and represent 91% of total deposits. |
| · | The Company executed a credit default swap on a $169.9 million pool of multi-family mortgage loans in June 2026, providing credit protection for the loan pool and reducing risk-based capital requirements. |
CARMEL, Indiana – (PR Newswire) - Merchants Bancorp (the “Company” or “Merchants”) (Nasdaq: MBIN), parent company of Merchants Bank, today reported second quarter of 2026 net income of $78.3 million, or diluted earnings per common share of $1.48. This compared to $38.0 million, or diluted earnings per common share of $0.60 in the second quarter of 2025, and compared to $67.7 million, or diluted earnings per common share of $1.25 in the first quarter of 2026.
“Our second quarter results reflected continued strength across our businesses, highlighted by assets reaching a new high of $21.2 billion and tangible book value per share of $39.93, marking our 30th consecutive quarter of record tangible book value. Credit trends also improved during the quarter, with our fifth consecutive quarterly decline in criticized loans, which reached their lowest level since mid-2024, along with decreases in nonperforming loans, delinquencies, charge-offs and provision for credit losses. These results demonstrate the strength of our balance sheet, the benefit of improved credit metrics, and ongoing momentum in our business,” said Michael F. Petrie, Chairman and CEO of Merchants.
Michael J. Dunlap, President and Chief Operating Officer of Merchants, added, “With 10-year Treasury rates remaining elevated, our diversified business model continues to create multiple sources of earnings support in the current rate environment. While the higher rates may pressure near-term gain on sale of loans, loans in our robust pipeline are still expected to convert into permanent loans over time. Meanwhile, higher rates continue to support valuations on our servicing rights and derivatives, providing an offset to pressure on gain on sale revenue. Together with strong liquidity, capital, and improving credit trends, this positions us well to continue generating earnings growth and long-term shareholder value.”
Net income for the second quarter of 2026 was $78.3 million, an increase of $40.3 million, or 106%, compared to $38.0 million in the second quarter of 2025. The increase was primarily driven by a $43.8 million, or 83%, decrease in the provision for credit losses, reflecting improved asset quality.
Net income for the second quarter of 2026 was $78.3 million, an increase of $10.6 million, or 16%, from $67.7 million in the first quarter of 2026. The improvement was driven by a $14.0 million, or 12%, increase in net interest income after provision for credit losses.
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Total Assets
Total assets of $21.2 billion at June 30, 2026 increased $908.2 million, or 4%, compared to March 31, 2026, and increased $1.8 billion, or 9%, compared to December 31, 2025. The increases for both periods were primarily due to higher balances in the multi-family and warehouse portfolios, as well as revolving lines of credit collateralized by mortgage servicing rights that are included in the commercial and commercial real estate portfolio.
Asset Quality
The allowance for credit losses on loans of $75.8 million, as of June 30, 2026, decreased $1.0 million, or 1%, compared to March 31, 2026, and decreased $7.5 million, or 9%, compared to December 31, 2025. The decreases primarily reflected charge-offs on loans that had specific reserves.
During the second quarter of 2026, the Company recorded charge-offs totaling $16.5 million and had $4.8 million in recoveries. Nearly 95% of the charge-offs in the second quarter of 2026 were associated with two multi-family loan relationships. This compared to $46.1 million in charge-offs and no recoveries during the second quarter of 2025 and $23.0 million in charge-offs and $616,000 in recoveries in the first quarter of 2026.
Overall, criticized loans receivable of $444.7 million declined $60.8 million, or 12%, compared to March 31, 2026, and declined $63.5 million, or 12%, compared to December 31, 2025. These declines are consistent with the Company’s expectation that migration to criticized status would stabilize and eventually subside, supported by ongoing portfolio management efforts. As of June 30, 2026, 6% of the criticized loans were covered by credit default swaps.
As of June 30, 2026, all substandard loans have been evaluated for impairment, and these loans have specific reserves of $3.9 million. The Company believes the loan portfolio continues to be well collateralized.
Nonperforming loans decreased $41.8 million, or 17%, compared to March 31, 2026, primarily due to loans being paid in full. As of June 30, 2026, nonperforming loans were $205.6 million, or 1.67% of loans receivable, compared to $247.5 million, or 2.16%, as of March 31, 2026, and $197.8 million, or 1.79%, as of December 31, 2025.
Total delinquent loans of $208.0 million decreased $34.6 million, or 14%, compared to March 31, 2026. As of June 30, 2026, 10% of the delinquent loans were covered by credit default swaps.
The Company has taken additional steps to reduce credit risk through loan sale and securitization activities since 2019. Since 2023, the Company has executed credit protection arrangements through credit default swaps and a credit-linked note to reduce potential loss exposure, with coverage ranging from 13% to 15% of the unpaid principal balance 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 June 30, 2026, the remaining balance of loans protected by credit default swaps was $2.2 billion.
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Total Deposits
Total deposits of $14.3 billion at June 30, 2026, increased $1.3 billion, or 10%, compared to March 31, 2026, and $1.2 billion, or 9%, compared to December 31, 2025. The increase in both periods primarily reflected the growth in core deposits.
Core deposits of $13.0 billion at June 30, 2026, reflected increases of $891.3 million, or 7%, from March 31, 2026, and $1.7 billion, or 15%, from December 31, 2025. Core deposits represented 91% of total deposits at June 30, 2026, 93% of total deposits at March 31, 2026, and 87% of total deposits at December 31, 2025.
Brokered deposits of $1.3 billion at June 30, 2026, increased $411.3 million, or 46%, from March 31, 2026, and decreased $459.5 million, or 26%, from December 31, 2025. As of June 30, 2026, brokered certificates of deposit had a weighted average remaining duration of 51 days.
Liquidity
The Company maintained strong liquidity, supported by substantial borrowing capacity, including unused lines of credit totaling $5.5 billion as of June 30, 2026, compared to $3.9 billion at March 31, 2026, and $5.3 billion at December 31, 2025.
The Company’s most liquid assets include 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 $5.5 billion, these totaled $13.0 billion, or 61%, of its $21.2 billion total assets as of June 30, 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.
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Comparison of Operating Results for the Three Months Ended
June 30, 2026 and 2025
Net Interest Income of $136.5 million increased $7.8 million, or 6%, compared to $128.7 million. The increase reflected lower interest expense on certificates of deposit, partially offset by higher interest expense on interest-bearing checking accounts and lower interest income on securities held to maturity.
| · | Net interest margin of 2.81% decreased two basis points compared to 2.83%. |
| · | Interest rate spread of 2.43% increased ten basis points compared to 2.33%. |
Interest Income of $294.1 million decreased $10.3 million, or 3%, compared to $304.4 million. The decrease was primarily attributable to lower average balances and yields on securities held to maturity, as well as lower average yields on higher average balances on loans and loans held for sale.
| · | Average balances of $1.4 billion for securities held to maturity decreased $174.1 million, or 11%, compared to $1.6 billion. |
| · | Average yields on securities held to maturity of 5.19% decreased 72 basis points compared to 5.91%. |
| · | Average yields on loans and loans held for sale of 6.26% decreased 66 basis points compared to 6.92%. |
| · | Average balances of $16.2 billion for loans and loans held for sale increased $1.4 billion, or 9%, compared to $14.8 billion. |
Interest Expense of $157.5 million decreased 10% compared to $175.7 million. The decrease reflected lower average balances and rates on certificates of deposit, partially offset by higher average balances on interest-bearing checking accounts.
| · | Average balances of $1.4 billion for certificates of deposit decreased $1.7 billion, or 55%, compared to $3.1 billion. |
| · | Average interest rates of 3.85% for certificates of deposit decreased 74 basis points compared to 4.59%. |
| · | Average balances on interest-bearing checking accounts of $7.9 billion increased $1.7 billion, or 28%, compared to $6.2 billion. |
| · | Average interest rates of 3.43% for interest-bearing checking accounts decreased 53 basis points compared to 3.96%. |
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Provision for Credit Losses was $9.2 million, a decrease of 83% compared to $53.0 million, reflecting improved asset quality, including lower charge-offs and lower specific reserves.
Noninterest Income of $45.7 million decreased $4.8 million, or 10%, compared to $50.5 million. The decline was primarily due to a decrease of $10.2 million, or 44%, in gain on sale of loans, partially offset by $5.9 million, or 95%, increase in loan servicing fees.
| · | Loan servicing fees included a $6.0 million positive fair market value adjustment to servicing rights, with a $1.4 million positive adjustment in the Banking segment and a $4.6 million positive adjustment in the Multi-family Mortgage Banking segment. This compared to a $258,000 positive fair market value adjustment to servicing rights in the prior period with a $487,000 negative adjustment in the Banking segment and a $745,000 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 noninterest income also included a $1.9 million positive fair market value adjustment to floor derivatives, reflected in the Warehouse segment, compared to a $4.3 million positive fair market value adjustment in the prior period. |
Noninterest Expense of $73.2 million decreased $4.1 million, or 5%, compared to $77.3 million. The lower expenses were primarily due to a $4.2 million decrease in salaries and employee benefits from lower commissions and bonuses.
Comparison of Operating Results for the Three Months Ended
June 30, 2026 and March 31, 2026
Net Interest Income of $136.5 million increased $7.9 million, or 6%, compared to $128.6 million. The increase reflected higher interest income on loans and loans held for sale, partially offset by higher interest expense on borrowings and deposits.
| · | Net interest margin of 2.81% decreased 11 basis points compared to 2.92%. |
| · | Interest rate spread of 2.43% decreased seven basis points compared to 2.50%. |
The 11 basis point decline in net interest margin was primarily driven by changes in loan mix, as growth was weighted more toward loans held for sale and warehouse lending than the higher-yielding multi-family and healthcare portfolios. While this mix shift lowered the reported margin, the growth remained profitable and contributed to higher net interest income and overall earnings.
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Interest Income of $294.1 million increased $23.6 million, or 9%, compared to $270.5 million, primarily reflecting higher average balances at lower average yields on loans and loans held for sale.
| · | Average balances of $16.2 billion for loans and loans held for sale increased 10% compared to $14.7 billion. |
| · | Average yields on loans and loans held for sale of 6.26% decreased eight basis points compared to 6.34%, primarily reflecting the same loan mix shift discussed above. |
Interest Expense of $157.5 million increased 11% compared to $141.9 million. The increase was primarily driven by higher average balances at lower interest rates on borrowings and higher average balances at higher average interest rates on interest-bearing checking accounts.
| · | Average balances of $4.0 billion on borrowings increased $880.5 million, or 28%, compared to $3.1 billion. |
| · | Average interest rates of 4.06% on borrowings decreased by eight basis points compared to 4.14%. |
| · | Average balances of $7.9 billion for interest-bearing checking accounts increased $692.0 million, or 10%, compared to $7.2 billion. |
| · | Average interest rates on interest-bearing checking accounts of 3.43% increased by a basis point compared to 3.42%. |
Provision for Credit Losses was $9.2 million, a decrease of 40% compared to $15.3 million, reflecting improved asset quality, including lower charge-offs and lower specific reserves.
Noninterest Income of $45.7 million decreased 2% compared to $46.6 million. Results reflected a decrease of $3.1 million, or 21%, in loan servicing fees, and a $1.5 million, or 11%, decrease in other noninterest income. Partially offsetting these declines was a $3.8 million, or 122%, increase in syndication and asset management fees.
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| · | Loan servicing fees included a $6.0 million positive fair market value adjustment to servicing rights, with a $1.4 million positive adjustment in the Banking segment and a $4.6 million positive adjustment in the Multi-family Mortgage Banking segment. This compared to an $8.9 million positive fair market value adjustment to servicing rights in the prior period, 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. 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 noninterest income included a $1.9 million positive fair market value adjustment to floor derivatives, reflected in the Warehouse segment, compared to a $2.7 million positive fair market value adjustment to derivatives in the prior period. |
Noninterest Expense of $73.2 million decreased $2.4 million, 3%, compared to $75.6 million, primarily due to a $2.5 million decrease in deposit insurance expenses from improved asset quality.
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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 $21.2 billion in assets and $14.3 billion in deposits as of June 30, 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," "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.
MEDIA CONTACT: REBECCA MARSH
Merchants Bancorp
Phone: (317) 805-4356
Email: rmarsh@bankmerchants.com
INVESTOR CONTACT: TAMI DURLE
Merchants Bancorp
Phone: (317) 324-4556
Email: tdurle@bankmerchants.com
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Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 17,875 | $ | 19,642 | $ | 15,844 | $ | 11,566 | $ | 15,419 | ||||||||||
| Interest-earning demand accounts | 296,828 | 63,573 | 196,358 | 586,470 | 631,746 | |||||||||||||||
| Cash and cash equivalents | 314,703 | 83,215 | 212,202 | 598,036 | 647,165 | |||||||||||||||
| Securities purchased under agreements to resell | 1,501 | 1,511 | 1,520 | 1,529 | 1,539 | |||||||||||||||
| Mortgage loans in process of securitization | 407,418 | 437,001 | 620,094 | 414,786 | 402,427 | |||||||||||||||
| Securities available for sale (includes $527,676, $550,207, $571,314, $591,379 and $602,962 at fair value) | 820,105 | 843,896 | 865,058 | 885,070 | 936,343 | |||||||||||||||
| Securities held to maturity (fair value of $1,353,543, $1,426,444, $1,543,554, $1,670,306 and $1,547,525) | 1,354,885 | 1,425,982 | 1,543,659 | 1,670,555 | 1,548,211 | |||||||||||||||
| Federal Home Loan Bank (FHLB) stock and other equity securities | 227,589 | 227,589 | 227,589 | 217,850 | 217,850 | |||||||||||||||
| Loans held for sale (includes $148,368, $163,426, $76,980, $112,832 and $91,930 at fair value) | 4,615,894 | 4,709,688 | 3,873,012 | 4,129,329 | 4,105,765 | |||||||||||||||
| Loans receivable (includes $46,024, $46,427, $47,318, $0 and $0 at fair value), net of allowance for credit losses on loans of $75,803, $76,831, $83,301, $93,330 and $91,811 | 12,262,800 | 11,399,882 | 10,951,381 | 10,515,221 | 10,432,117 | |||||||||||||||
| Premises and equipment, net | 74,664 | 73,695 | 73,929 | 75,148 | 71,050 | |||||||||||||||
| Servicing rights | 236,949 | 229,576 | 217,296 | 213,156 | 193,037 | |||||||||||||||
| Interest receivable | 82,078 | 77,326 | 81,807 | 82,445 | 82,391 | |||||||||||||||
| Goodwill | 8,014 | 8,014 | 8,014 | 8,014 | 8,014 | |||||||||||||||
| Other real estate owned | 72,389 | 60,226 | 60,145 | 4,347 | 7,049 | |||||||||||||||
| Other assets and receivables | 750,993 | 744,181 | 713,237 | 539,161 | 488,246 | |||||||||||||||
| Total assets | $ | 21,229,982 | $ | 20,321,782 | $ | 19,448,943 | $ | 19,354,647 | $ | 19,141,204 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Noninterest-bearing | $ | 606,682 | $ | 501,864 | $ | 604,081 | $ | 399,814 | $ | 315,523 | ||||||||||
| Interest-bearing | 13,647,632 | 12,449,889 | 12,437,111 | 13,534,891 | 12,371,312 | |||||||||||||||
| Total deposits | 14,254,314 | 12,951,753 | 13,041,192 | 13,934,705 | 12,686,835 | |||||||||||||||
| Borrowings | 4,282,597 | 4,773,490 | 3,842,592 | 2,902,631 | 4,009,474 | |||||||||||||||
| Deferred and current tax liabilities, net | 50,140 | 46,403 | 33,900 | 28,973 | 29,228 | |||||||||||||||
| Other liabilities | 249,127 | 219,833 | 250,500 | 262,904 | 231,035 | |||||||||||||||
| Total liabilities | 18,836,178 | 17,991,479 | 17,168,184 | 17,129,213 | 16,956,572 | |||||||||||||||
| Commitments and Contingencies | ||||||||||||||||||||
| Shareholders' Equity | ||||||||||||||||||||
| Common stock, without par value | ||||||||||||||||||||
| Authorized - 75,000,000 shares | ||||||||||||||||||||
| Issued and outstanding - 45,938,075 shares, 45,935,408 shares, 45,893,172 shares, 45,889,238 shares and 45,885,458 shares | 244,345 | 243,433 | 243,310 | 242,371 | 241,452 | |||||||||||||||
| 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 | 1,599,367 | 1,536,383 | 1,486,191 | 1,431,983 | 1,392,136 | |||||||||||||||
| Accumulated other comprehensive loss | (1,199 | ) | (804 | ) | (33 | ) | (211 | ) | (247 | ) | ||||||||||
| Total shareholders' equity | 2,393,804 | 2,330,303 | 2,280,759 | 2,225,434 | 2,184,632 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 21,229,982 | $ | 20,321,782 | $ | 19,448,943 | $ | 19,354,647 | $ | 19,141,204 | ||||||||||
Consolidated Statement of Income
(Unaudited)
(In thousands, except share data)
| Three Months Ended | Change | |||||||||||||||||||
| June 30, | March 31, | June 30, | 2Q26 | 2Q26 | ||||||||||||||||
| 2026 | 2026 | 2025 | vs. 1Q26 | vs. 2Q25 | ||||||||||||||||
| Interest Income | ||||||||||||||||||||
| Loans | $ | 252,546 | $ | 230,269 | $ | 255,641 | 10 | % | -1 | % | ||||||||||
| Mortgage loans in process of securitization | 4,455 | 4,387 | 5,304 | 2 | % | -16 | % | |||||||||||||
| Investment securities: | ||||||||||||||||||||
| Available for sale | 9,562 | 9,942 | 12,095 | -4 | % | -21 | % | |||||||||||||
| Held to maturity | 18,076 | 19,479 | 23,166 | -7 | % | -22 | % | |||||||||||||
| FHLB stock and other equity securities (dividends) | 4,979 | 4,394 | 4,641 | 13 | % | 7 | % | |||||||||||||
| Other | 4,454 | 2,040 | 3,552 | 118 | % | 25 | % | |||||||||||||
| Total interest income | 294,072 | 270,511 | 304,399 | 9 | % | -3 | % | |||||||||||||
| Interest Expense | ||||||||||||||||||||
| Deposits | 116,839 | 109,849 | 131,375 | 6 | % | -11 | % | |||||||||||||
| Short-term borrowings | 37,608 | 28,937 | 36,981 | 30 | % | 2 | % | |||||||||||||
| Long-term borrowings | 3,089 | 3,077 | 7,324 | — | -58 | % | ||||||||||||||
| Total interest expense | 157,536 | 141,863 | 175,680 | 11 | % | -10 | % | |||||||||||||
| Net Interest Income | 136,536 | 128,648 | 128,719 | 6 | % | 6 | % | |||||||||||||
| Provision for credit losses | 9,184 | 15,299 | 53,027 | -40 | % | -83 | % | |||||||||||||
| Net Interest Income After Provision for Credit Losses | 127,352 | 113,349 | 75,692 | 12 | % | 68 | % | |||||||||||||
| Noninterest Income | ||||||||||||||||||||
| Gain on sale of loans | 13,160 | 13,506 | 23,342 | -3 | % | -44 | % | |||||||||||||
| Loan servicing fees, net | 11,992 | 15,099 | 6,138 | -21 | % | 95 | % | |||||||||||||
| Mortgage warehouse fees | 1,857 | 1,620 | 2,039 | 15 | % | -9 | % | |||||||||||||
| Syndication and asset management fees | 6,933 | 3,117 | 9,707 | 122 | % | -29 | % | |||||||||||||
| Other income | 11,738 | 13,257 | 9,254 | -11 | % | 27 | % | |||||||||||||
| Total noninterest income | 45,680 | 46,599 | 50,480 | -2 | % | -10 | % | |||||||||||||
| Noninterest Expense | ||||||||||||||||||||
| Salaries and employee benefits | 39,345 | 38,565 | 43,566 | 2 | % | -10 | % | |||||||||||||
| Loan expense | 1,177 | 1,185 | 1,142 | -1 | % | 3 | % | |||||||||||||
| Occupancy and equipment | 3,462 | 3,081 | 2,494 | 12 | % | 39 | % | |||||||||||||
| Professional fees | 3,328 | 2,767 | 3,159 | 20 | % | 5 | % | |||||||||||||
| Deposit insurance expense | 5,893 | 8,408 | 7,152 | -30 | % | -18 | % | |||||||||||||
| Technology expense | 2,893 | 2,679 | 2,446 | 8 | % | 18 | % | |||||||||||||
| Credit risk transfer premium expense | 6,100 | 5,764 | 4,767 | 6 | % | 28 | % | |||||||||||||
| Other expense | 11,050 | 13,193 | 12,611 | -16 | % | -12 | % | |||||||||||||
| Total noninterest expense | 73,248 | 75,642 | 77,337 | -3 | % | -5 | % | |||||||||||||
| Income Before Income Taxes | 99,784 | 84,306 | 48,835 | 18 | % | 104 | % | |||||||||||||
| Provision for income taxes | 21,481 | 16,574 | 10,854 | 30 | % | 98 | % | |||||||||||||
| Net Income | $ | 78,303 | $ | 67,732 | $ | 37,981 | 16 | % | 106 | % | ||||||||||
| Dividends on preferred stock | (10,266 | ) | (10,265 | ) | (10,266 | ) | — | — | ||||||||||||
| Net Income Available to Common Shareholders | $ | 68,037 | $ | 57,467 | $ | 27,715 | 18 | % | 145 | % | ||||||||||
| Basic Earnings Per Share | $ | 1.48 | $ | 1.25 | $ | 0.60 | 18 | % | 147 | % | ||||||||||
| Diluted Earnings Per Share | $ | 1.48 | $ | 1.25 | $ | 0.60 | 18 | % | 147 | % | ||||||||||
| Weighted-Average Shares Outstanding | ||||||||||||||||||||
| Basic | 45,936,610 | 45,929,936 | 45,883,644 | |||||||||||||||||
| Diluted | 46,005,938 | 45,997,744 | 45,929,563 | |||||||||||||||||
Consolidated Statement of Income
(Unaudited)
(In thousands, except share data)
| Six Months Ended | ||||||||||||
| June 30, | June 30, | |||||||||||
| 2026 | 2025 | Change | ||||||||||
| Interest Income | ||||||||||||
| Loans | $ | 482,815 | $ | 494,921 | -2 | % | ||||||
| Mortgage loans in process of securitization | 8,842 | 9,047 | -2 | % | ||||||||
| Investment securities: | ||||||||||||
| Available for sale | 19,504 | 24,453 | -20 | % | ||||||||
| Held to maturity | 37,555 | 47,524 | -21 | % | ||||||||
| FHLB stock and other equity securities (dividends) | 9,373 | 9,013 | 4 | % | ||||||||
| Other | 6,494 | 6,645 | -2 | % | ||||||||
| Total interest income | 564,583 | 591,603 | -5 | % | ||||||||
| Interest Expense | ||||||||||||
| Deposits | 226,688 | 255,316 | -11 | % | ||||||||
| Short-term borrowings | 66,545 | 70,345 | -5 | % | ||||||||
| Long-term borrowings | 6,166 | 15,027 | -59 | % | ||||||||
| Total interest expense | 299,399 | 340,688 | -12 | % | ||||||||
| Net Interest Income | 265,184 | 250,915 | 6 | % | ||||||||
| Provision for credit losses | 24,483 | 60,754 | -60 | % | ||||||||
| Net Interest Income After Provision for Credit Losses | 240,701 | 190,161 | 27 | % | ||||||||
| Noninterest Income | ||||||||||||
| Gain on sale of loans | 26,666 | 34,961 | -24 | % | ||||||||
| Loan servicing fees, net | 27,091 | 10,148 | 167 | % | ||||||||
| Mortgage warehouse fees | 3,477 | 3,552 | -2 | % | ||||||||
| Syndication and asset management fees | 10,050 | 13,096 | -23 | % | ||||||||
| Other income | 24,995 | 12,416 | 101 | % | ||||||||
| Total noninterest income | 92,279 | 74,173 | 24 | % | ||||||||
| Noninterest Expense | ||||||||||||
| Salaries and employee benefits | 77,910 | 79,985 | -3 | % | ||||||||
| Loan expense | 2,362 | 1,940 | 22 | % | ||||||||
| Occupancy and equipment | 6,543 | 4,845 | 35 | % | ||||||||
| Professional fees | 6,095 | 6,053 | 1 | % | ||||||||
| Deposit insurance expense | 14,301 | 14,380 | -1 | % | ||||||||
| Technology expense | 5,572 | 4,820 | 16 | % | ||||||||
| Credit risk transfer premium expense | 11,864 | 8,629 | 37 | % | ||||||||
| Other expense | 24,243 | 18,349 | 32 | % | ||||||||
| Total noninterest expense | 148,890 | 139,001 | 7 | % | ||||||||
| Income Before Income Taxes | 184,090 | 125,333 | 47 | % | ||||||||
| Provision for income taxes | 38,055 | 29,113 | 31 | % | ||||||||
| Net Income | $ | 146,035 | $ | 96,220 | 52 | % | ||||||
| Dividends on preferred stock | (20,531 | ) | (20,531 | ) | — | |||||||
| Impact of preferred stock redemption | — | (5,371 | ) | -100 | % | |||||||
| Net Income Available to Common Shareholders | $ | 125,504 | $ | 70,318 | 78 | % | ||||||
| Basic Earnings Per Share | $ | 2.73 | $ | 1.53 | 78 | % | ||||||
| Diluted Earnings Per Share | $ | 2.73 | $ | 1.53 | 78 | % | ||||||
| Weighted-Average Shares Outstanding | ||||||||||||
| Basic | 45,933,291 | 45,853,998 | ||||||||||
| Diluted | 46,001,859 | 45,921,988 | ||||||||||
Key Operating Results
(Unaudited)
($ in thousands, except share data)
| Three Months Ended | Change | |||||||||||||||||||
| June 30, | March 31, | June 30, | 2Q26 | 2Q26 | ||||||||||||||||
| 2026 | 2026 | 2025 | vs. 1Q26 | vs. 2Q25 | ||||||||||||||||
| Noninterest expense | $ | 73,248 | $ | 75,642 | $ | 77,337 | -3 | % | -5 | % | ||||||||||
| Net interest income (before provision for credit losses) | 136,536 | 128,648 | 128,719 | 6 | % | 6 | % | |||||||||||||
| Noninterest income | 45,680 | 46,599 | 50,480 | -2 | % | -10 | % | |||||||||||||
| Total income | $ | 182,216 | $ | 175,247 | $ | 179,199 | 4 | % | 2 | % | ||||||||||
| Efficiency ratio | 40.20 | % | 43.16 | % | 43.16 | % | (296 | )bps | (296 | )bps | ||||||||||
| Average assets | $ | 20,578,875 | $ | 18,952,948 | $ | 18,984,925 | 9 | % | 8 | % | ||||||||||
| Net income | 78,303 | 67,732 | 37,981 | 16 | % | 106 | % | |||||||||||||
| Return on average assets before annualizing | 0.38 | % | 0.36 | % | 0.20 | % | ||||||||||||||
| Annualization factor | 4.00 | 4.00 | 4.00 | |||||||||||||||||
| Return on average assets | 1.52 | % | 1.43 | % | 0.80 | % | 9 | bps | 72 | bps | ||||||||||
| Return on average tangible common shareholders' equity (1) | 14.95 | % | 13.01 | % | 6.75 | % | 194 | bps | 820 | bps | ||||||||||
| Tangible book value per common share (1) | $ | 39.93 | $ | 38.55 | $ | 35.42 | 4 | % | 13 | % | ||||||||||
| Tangible common shareholders' equity/tangible assets (1) | 8.64 | % | 8.72 | % | 8.49 | % | (8 | )bps | 15 | bps | ||||||||||
| Consolidated ratios | ||||||||||||||||||||
| Total capital/risk-weighted assets(2) | 12.5 | % | 12.8 | % | 13.4 | % | ||||||||||||||
| Tier I capital/risk-weighted assets(2) | 12.1 | % | 12.3 | % | 12.8 | % | ||||||||||||||
| Common Equity Tier I capital/risk-weighted assets(2) | 9.3 | % | 9.4 | % | 9.5 | % | ||||||||||||||
| Tier I capital/average assets(2) | 11.6 | % | 12.3 | % | 11.5 | % | ||||||||||||||
(1) Non-GAAP financial measure - see "Reconciliation of Non-GAAP Measures" below:
(2) As defined by regulatory agencies; June 30, 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 | |||||||||||||||||||
| June 30, | March 31, | June 30, | 2Q26 | 2Q26 | ||||||||||||||||
| 2026 | 2026 | 2025 | vs. 1Q26 | vs. 2Q25 | ||||||||||||||||
| Average shareholders' equity | $ | 2,379,573 | $ | 2,326,390 | $ | 2,201,836 | 2 | % | 8 | % | ||||||||||
| Less: average goodwill & intangibles | (8,043 | ) | (8,048 | ) | (8,065 | ) | — | — | ||||||||||||
| Less: average preferred stock | (551,291 | ) | (551,291 | ) | (551,290 | ) | — | — | ||||||||||||
| Average tangible common shareholders' equity | $ | 1,820,239 | $ | 1,767,051 | $ | 1,642,481 | 3 | % | 11 | % | ||||||||||
| Annualization factor | 4.00 | 4.00 | 4.00 | |||||||||||||||||
| Return on average tangible common shareholders' equity | 14.95 | % | 13.01 | % | 6.75 | % | 194 | bps | 820 | bps | ||||||||||
| Total equity | $ | 2,393,804 | $ | 2,330,303 | $ | 2,184,632 | 3 | % | 10 | % | ||||||||||
| Less: goodwill and intangibles | (8,040 | ) | (8,045 | ) | (8,062 | ) | — | — | ||||||||||||
| Less: preferred stock | (551,291 | ) | (551,291 | ) | (551,291 | ) | — | — | ||||||||||||
| Tangible common shareholders' equity | $ | 1,834,473 | $ | 1,770,967 | $ | 1,625,279 | 4 | % | 13 | % | ||||||||||
| Assets | $ | 21,229,982 | $ | 20,321,782 | $ | 19,141,204 | 4 | % | 11 | % | ||||||||||
| Less: goodwill and intangibles | (8,040 | ) | (8,045 | ) | (8,062 | ) | — | — | ||||||||||||
| Tangible assets | $ | 21,221,942 | $ | 20,313,737 | $ | 19,133,142 | 4 | % | 11 | % | ||||||||||
| Ending common shares | 45,938,075 | 45,935,408 | 45,885,458 | |||||||||||||||||
| Tangible book value per common share | $ | 39.93 | $ | 38.55 | $ | 35.42 | 4 | % | 13 | % | ||||||||||
| Tangible common shareholders' equity/tangible assets | 8.64 | % | 8.72 | % | 8.49 | % | (8 | )bps | 15 | bps | ||||||||||
Key Operating Results
(Unaudited)
($ in thousands, except share data)
| Six Months Ended | ||||||||||||
| June 30, | June 30, | |||||||||||
| 2026 | 2025 | Change | ||||||||||
| Noninterest expense | $ | 148,890 | $ | 139,001 | 7 | % | ||||||
| Net interest income (before provision for credit losses) | 265,184 | 250,915 | 6 | % | ||||||||
| Noninterest income | 92,279 | 74,173 | 24 | % | ||||||||
| Total income | $ | 357,463 | $ | 325,088 | 10 | % | ||||||
| Efficiency ratio | 41.65 | % | 42.76 | % | (111 | )bps | ||||||
| Average assets | $ | 19,770,403 | $ | 18,411,623 | 7 | % | ||||||
| Net income | 146,035 | 96,220 | 52 | % | ||||||||
| Return on average assets before annualizing | 0.74 | % | 0.52 | % | ||||||||
| Annualization factor | 2.00 | 2.00 | ||||||||||
| Return on average assets | 1.48 | % | 1.05 | % | 43 | bps | ||||||
| Return on average tangible common shareholders' equity (1) | 13.99 | % | 8.68 | % | 531 | bps | ||||||
| Tangible book value per common share (1) | $ | 39.93 | $ | 35.42 | 13 | % | ||||||
| Tangible common shareholders' equity/tangible assets (1) | 8.64 | % | 8.49 | % | 15 | bps | ||||||
(1) Non-GAAP financial measure - see "Reconciliation of Non-GAAP Measures" below:
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.
| Six Months Ended | ||||||||||||
| June 30, | June 30, | |||||||||||
| 2026 | 2025 | Change | ||||||||||
| Average shareholders' equity | $ | 2,353,128 | $ | 2,181,117 | 8 | % | ||||||
| Less: average goodwill & intangibles | (8,045 | ) | (8,067 | ) | — | |||||||
| Less: average preferred stock | (551,291 | ) | (551,958 | ) | — | |||||||
| Average tangible common shareholders' equity | $ | 1,793,792 | $ | 1,621,092 | 11 | % | ||||||
| Annualization factor | 2.00 | 2.00 | ||||||||||
| Return on average tangible common shareholders' equity | 13.99 | % | 8.68 | % | 531 | bps | ||||||
| Total equity | $ | 2,393,804 | $ | 2,184,632 | 10 | % | ||||||
| Less: goodwill and intangibles | (8,040 | ) | (8,062 | ) | — | |||||||
| Less: preferred stock | (551,291 | ) | (551,291 | ) | — | |||||||
| Tangible common shareholders' equity | $ | 1,834,473 | $ | 1,625,279 | 13 | % | ||||||
| Assets | $ | 21,229,982 | $ | 19,141,204 | 11 | % | ||||||
| Less: goodwill and intangibles | (8,040 | ) | (8,062 | ) | — | |||||||
| Tangible assets | $ | 21,221,942 | $ | 19,133,142 | 11 | % | ||||||
| Ending common shares | 45,938,075 | 45,885,458 | ||||||||||
| Tangible book value per common share | $ | 39.93 | $ | 35.42 | 13 | % | ||||||
| Tangible common shareholders' equity/tangible assets | 8.64 | % | 8.49 | % | 15 | bps | ||||||
Merchants Bancorp
Average Balance Analysis
($ in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 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 | $ | 689,479 | $ | 9,433 | 5.49 | % | $ | 433,306 | $ | 6,434 | 6.02 | % | $ | 539,357 | $ | 8,193 | 6.09 | % | ||||||||||||||||||
| Securities available for sale | 832,715 | 9,562 | 4.61 | % | 856,846 | 9,942 | 4.71 | % | 955,186 | 12,095 | 5.08 | % | ||||||||||||||||||||||||
| Securities held to maturity | 1,398,098 | 18,076 | 5.19 | % | 1,493,185 | 19,479 | 5.29 | % | 1,572,186 | 23,166 | 5.91 | % | ||||||||||||||||||||||||
| Mortgage loans in process of securitization | 353,297 | 4,455 | 5.06 | % | 338,052 | 4,387 | 5.26 | % | 376,904 | 5,304 | 5.64 | % | ||||||||||||||||||||||||
| Loans and loans held for sale | 16,185,486 | 252,546 | 6.26 | % | 14,741,304 | 230,269 | 6.34 | % | 14,826,151 | 255,641 | 6.92 | % | ||||||||||||||||||||||||
| Total interest-earning assets | 19,459,075 | 294,072 | 6.06 | % | 17,862,693 | 270,511 | 6.14 | % | 18,269,784 | 304,399 | 6.68 | % | ||||||||||||||||||||||||
| Allowance for credit losses on loans | (80,566 | ) | (85,226 | ) | (90,860 | ) | ||||||||||||||||||||||||||||||
| Noninterest-earning assets | 1,200,366 | 1,175,481 | 806,001 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 20,578,875 | $ | 18,952,948 | $ | 18,984,925 | ||||||||||||||||||||||||||||||
| Liabilities & Shareholders' Equity: | ||||||||||||||||||||||||||||||||||||
| Interest-bearing checking | $ | 7,891,368 | 67,395 | 3.43 | % | $ | 7,199,340 | 60,763 | 3.42 | % | $ | 6,161,736 | 60,845 | 3.96 | % | |||||||||||||||||||||
| Money market /savings deposits | 4,117,113 | 36,120 | 3.52 | % | 3,925,326 | 34,000 | 3.51 | % | 3,499,982 | 35,145 | 4.03 | % | ||||||||||||||||||||||||
| Certificates of deposit | 1,386,717 | 13,324 | 3.85 | % | 1,562,186 | 15,086 | 3.92 | % | 3,090,250 | 35,385 | 4.59 | % | ||||||||||||||||||||||||
| Total interest-bearing deposits | 13,395,198 | 116,839 | 3.50 | % | 12,686,852 | 109,849 | 3.51 | % | 12,751,968 | 131,375 | 4.13 | % | ||||||||||||||||||||||||
| Borrowings | 4,017,881 | 40,697 | 4.06 | % | 3,137,379 | 32,014 | 4.14 | % | 3,453,960 | 44,305 | 5.15 | % | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 17,413,079 | 157,536 | 3.63 | % | 15,824,231 | 141,863 | 3.64 | % | 16,205,928 | 175,680 | 4.35 | % | ||||||||||||||||||||||||
| Noninterest-bearing deposits | 542,526 | 560,176 | 376,217 | |||||||||||||||||||||||||||||||||
| Noninterest-bearing liabilities | 243,697 | 242,151 | 200,944 | |||||||||||||||||||||||||||||||||
| Total liabilities | 18,199,302 | 16,626,558 | 16,783,089 | |||||||||||||||||||||||||||||||||
| Shareholders' equity | 2,379,573 | 2,326,390 | 2,201,836 | |||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 20,578,875 | $ | 18,952,948 | $ | 18,984,925 | ||||||||||||||||||||||||||||||
| Net interest income | $ | 136,536 | $ | 128,648 | $ | 128,719 | ||||||||||||||||||||||||||||||
| Net interest spread | 2.43 | % | 2.50 | % | 2.33 | % | ||||||||||||||||||||||||||||||
| Net interest-earning assets | $ | 2,045,996 | $ | 2,038,462 | $ | 2,063,856 | ||||||||||||||||||||||||||||||
| Net interest margin | 2.81 | % | 2.92 | % | 2.83 | % | ||||||||||||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 111.75 | % | 112.88 | % | 112.74 | % | ||||||||||||||||||||||||||||||
Supplemental Results
(Unaudited)
($ in thousands)
| Net Income | Net Income | |||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
| Segment | ||||||||||||||||||||
| Multi-family Mortgage Banking | $ | 10,336 | $ | 11,014 | $ | 9,269 | $ | 21,350 | $ | 12,682 | ||||||||||
| Mortgage Warehousing | 30,599 | 28,648 | 22,986 | 59,247 | 38,384 | |||||||||||||||
| Banking | 47,337 | 37,980 | 14,574 | 85,317 | 61,681 | |||||||||||||||
| Other | (9,969 | ) | (9,910 | ) | (8,848 | ) | (19,879 | ) | (16,527 | ) | ||||||||||
| Total | $ | 78,303 | $ | 67,732 | $ | 37,981 | $ | 146,035 | $ | 96,220 | ||||||||||
| Total Assets | ||||||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | |||||||||||||||||||
| Segment | ||||||||||||||||||||||||
| Multi-family Mortgage Banking | $ | 567,941 | 2 | % | $ | 522,976 | 3 | % | $ | 526,423 | 3 | % | ||||||||||||
| Mortgage Warehousing | 8,647,738 | 41 | % | 8,544,107 | 42 | % | 7,251,653 | 37 | % | |||||||||||||||
| Banking | 11,581,635 | 55 | % | 10,850,657 | 53 | % | 11,307,401 | 58 | % | |||||||||||||||
| Other | 432,668 | 2 | % | 404,042 | 2 | % | 363,466 | 2 | % | |||||||||||||||
| Total | $ | 21,229,982 | 100 | % | $ | 20,321,782 | 100 | % | $ | 19,448,943 | 100 | % | ||||||||||||
| Gain on Sale of Loans | Gain on Sale of Loans | |||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
| Loan Type | ||||||||||||||||||||
| Multi-family | $ | 11,755 | $ | 11,422 | $ | 19,815 | $ | 23,177 | $ | 29,940 | ||||||||||
| Single-family | 489 | 388 | 2,428 | 877 | 2,634 | |||||||||||||||
| Small Business Administration (SBA) | 916 | 1,696 | 1,099 | 2,612 | 2,387 | |||||||||||||||
| Total | $ | 13,160 | $ | 13,506 | $ | 23,342 | $ | 26,666 | $ | 34,961 | ||||||||||
| Servicing Rights | Servicing Rights | |||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
| Balance, beginning of period | $ | 229,576 | $ | 217,296 | $ | 189,711 | $ | 217,296 | $ | 189,935 | ||||||||||
| Additions | ||||||||||||||||||||
| Purchased servicing | - | 125 | 70 | 125 | 70 | |||||||||||||||
| Originated servicing | 4,010 | 5,749 | 5,244 | 9,759 | 8,582 | |||||||||||||||
| Subtractions | ||||||||||||||||||||
| Paydowns | (2,652 | ) | (2,532 | ) | (2,246 | ) | (5,184 | ) | (5,054 | ) | ||||||||||
| Changes in fair value | 6,015 | 8,938 | 258 | 14,953 | (496 | ) | ||||||||||||||
| Balance, end of period | $ | 236,949 | $ | 229,576 | $ | 193,037 | $ | 236,949 | $ | 193,037 | ||||||||||
Supplemental Results
(Unaudited)
($ in thousands)
| Loans Receivable and Loans Held for Sale | ||||||||||||
| June 30, | March 31, | December 31, | ||||||||||
| 2026 | 2026 | 2025 | ||||||||||
| Mortgage warehouse repurchase agreements (4) | $ | 2,168,175 | $ | 1,982,411 | $ | 1,600,285 | ||||||
| Residential real estate (1) | 1,078,358 | 1,038,724 | 1,018,780 | |||||||||
| Multi-family financing | 5,855,477 | 5,537,711 | 5,332,680 | |||||||||
| Healthcare financing | 1,303,597 | 1,260,821 | 1,385,359 | |||||||||
| Commercial and commercial real estate (2)(3)(4) | 1,837,427 | 1,560,788 | 1,603,551 | |||||||||
| Agricultural production and real estate | 91,609 | 92,527 | 92,077 | |||||||||
| Consumer and margin loans | 3,960 | 3,731 | 1,950 | |||||||||
| Loans receivable | 12,338,603 | 11,476,713 | 11,034,682 | |||||||||
| Less: Allowance for credit losses on loans | 75,803 | 76,831 | 83,301 | |||||||||
| Loans receivable, net | $ | 12,262,800 | $ | 11,399,882 | $ | 10,951,381 | ||||||
| Loans held for sale (4) | 4,615,894 | 4,709,688 | 3,873,012 | |||||||||
| Total loans, net of allowance | $ | 16,878,694 | $ | 16,109,570 | $ | 14,824,393 | ||||||
(1) Includes $0.8 billion, $0.8 billion and $0.8 billion of All-In-One © first-lien home equity lines of credit as of June 30, 2026, March 31, 2026 and December 31, 2025, respectively.
(2) Includes $1.2 billion, $0.9 billion and $0.9 billion of revolving lines of credit collateralized primarily by mortgage servicing rights as of June 30, 2026, March 31, 2026 and December 31, 2025, respectively.
(3) Includes only $19.0 million, $19.7 million and $19.5 million of non-owner occupied commercial real estate as of June 30, 2026, March 31, 2026 and December 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 | ||||||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | |||||||||||||||||||
| Pass | $ | 11,893,874 | 96.4 | % | $ | 10,971,183 | 95.6 | % | $ | 10,526,493 | 95.4 | % | ||||||||||||
| Special mention | 214,786 | 1.7 | % | 234,346 | 2.0 | % | 204,918 | 1.9 | % | |||||||||||||||
| Substandard | 229,943 | 1.9 | % | 271,184 | 2.4 | % | 303,271 | 2.7 | % | |||||||||||||||
| Criticized loans | 444,729 | 3.6 | % | 505,530 | 4.4 | % | 508,189 | 4.6 | % | |||||||||||||||
| Total loans receivable | $ | 12,338,603 | 100.0 | % | $ | 11,476,713 | 100.0 | % | $ | 11,034,682 | 100.0 | % | ||||||||||||
| Charge-offs (year-to-date) | $ | 39,511 | $ | 22,979 | $ | 124,116 | ||||||||||||||||||
| Recoveries (year-to-date) | $ | 5,405 | $ | 616 | $ | 127 | ||||||||||||||||||
| Nonperforming Loans | ||||||||||||
| June 30, | March 31, | December 31, | ||||||||||
| 2026 | 2026 | 2025 | ||||||||||
| Nonaccrual loans | $ | 205,545 | $ | 239,108 | $ | 197,812 | ||||||
| 90 days past due and still accruing | 87 | 8,350 | — | |||||||||
| Total nonperforming loans | $ | 205,632 | $ | 247,458 | $ | 197,812 | ||||||
| Other real estate owned | 72,389 | 60,226 | 60,145 | |||||||||
| Total nonperforming assets | $ | 278,021 | $ | 307,684 | $ | 257,957 | ||||||
| Nonperforming loans to total loans receivable | 1.67 | % | 2.16 | % | 1.79 | % | ||||||
| Nonperforming assets to total assets | 1.31 | % | 1.51 | % | 1.33 | % | ||||||
| Delinquent Loans | ||||||||||||
| June 30, | March 31, | December 31, | ||||||||||
| 2026 | 2026 | 2025 | ||||||||||
| Delinquent loans: | ||||||||||||
| Loans receivable | $ | 207,700 | $ | 242,271 | $ | 206,561 | ||||||
| Loans held for sale | 263 | 264 | 265 | |||||||||
| Total delinquent loans | $ | 207,963 | $ | 242,535 | $ | 206,826 | ||||||
| Total loans receivable and loans held for sale | $ | 16,954,497 | $ | 16,186,401 | $ | 14,907,694 | ||||||
| Delinquent loans to total loans | 1.23 | % | 1.50 | % | 1.39 | % | ||||||
Supplemental Results
(Unaudited)
($ in thousands)
| Deposits | ||||||||||||
| June 30, | March 31, | December 31, | ||||||||||
| 2026 | 2026 | 2025 | ||||||||||
| Noninterest-bearing deposits | ||||||||||||
| Core demand deposits | $ | 606,682 | $ | 501,864 | $ | 604,081 | ||||||
| Interest-bearing deposits | ||||||||||||
| Demand deposits: | ||||||||||||
| Core demand deposits | $ | 7,820,104 | $ | 6,949,611 | $ | 6,207,814 | ||||||
| Brokered demand deposits | 503,257 | 301,111 | 600,000 | |||||||||
| Total interest-bearing demand deposits | 8,323,361 | 7,250,722 | 6,807,814 | |||||||||
| Money market/savings deposits: | ||||||||||||
| Core money market/savings deposits | 3,944,677 | 3,872,344 | 3,566,523 | |||||||||
| Brokered money market/savings deposits | 2,912 | 200,867 | 201,010 | |||||||||
| Total money market/savings deposits | 3,947,589 | 4,073,211 | 3,767,533 | |||||||||
| Certificates of deposit: | ||||||||||||
| Core certificates of deposit | 585,061 | 741,452 | 905,448 | |||||||||
| Brokered certificates of deposit | 791,621 | 384,504 | 956,316 | |||||||||
| Total certificates of deposit | 1,376,682 | 1,125,956 | 1,861,764 | |||||||||
| Total interest-bearing deposits | 13,647,632 | 12,449,889 | 12,437,111 | |||||||||
| Total deposits | $ | 14,254,314 | $ | 12,951,753 | $ | 13,041,192 | ||||||
| Total core deposits | $ | 12,956,524 | $ | 12,065,271 | $ | 11,283,866 | ||||||
| Total brokered deposits | 1,297,790 | 886,482 | 1,757,326 | |||||||||
| Total deposits | $ | 14,254,314 | $ | 12,951,753 | $ | 13,041,192 | ||||||