Merchants Bancorp Reports Q1 2025 Financial Results

Merchants Bancorp ( (MBIN) ) has released its Q1 earnings. Here is a breakdown of the information Merchants Bancorp presented to its investors.

Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana, primarily engaged in multi-family mortgage banking, mortgage warehousing, and traditional banking services. The company operates through various subsidiaries, including Merchants Bank of Indiana and Merchants Capital Corp, and is known for its focus on multi-family housing and healthcare facility financing.

In the first quarter of 2025, Merchants Bancorp reported a net income of $58.2 million, a significant decrease from the previous year and the previous quarter. This decline was attributed to market uncertainties that delayed loan origination closings and conversions, impacting the gain on sale and net interest margin. Additionally, unfavorable fair market value adjustments to servicing rights and derivatives further contributed to the reduced earnings.

Key financial metrics revealed a 48% decrease in diluted earnings per share compared to the first quarter of 2024. Despite the challenges, the company’s tangible book value per common share reached a record high, and core deposits saw a substantial increase, representing 86% of total deposits. However, brokered deposits experienced a sharp decline, and the company redeemed all outstanding shares of its Series B Preferred Stock.

Looking forward, Merchants Bancorp’s management remains optimistic about the company’s strategic direction and future performance. They emphasize ongoing efforts to optimize loan workouts and invest in growth opportunities, positioning the company for resilience and strength once the interest rate environment stabilizes.