The bank's net interest margin remains stubbornly fixed at 0.7%, while the efficiency ratio has deteriorated from 13.5% in 2024Q1 to 23.9% by 2026Q1, signaling reduced operational profitability.
| Net Interest Income | 523.51M | 517.06M | 522.62M | 448.07M | 318.55M | 277.99M | 224.15M | 122.3M | 89.97M | 66.6M | 53.97M | 42.05M |
| NII Growth % | 4.73% | -1.06% | 16.64% | 40.66% | 14.59% | 24.02% | 83.28% | 35.93% | 35.1% | 23.39% | 28.33% | - |
| Net Interest Margin % | 2.58% | 2.66% | 2.78% | 2.64% | 2.53% | 2.46% | 2.32% | 1.92% | 2.32% | 1.96% | 1.99% | 1.85% |
| Interest Income | 1.18B | 1.2B | 1.3B | 1.08B | 480.83M | 311.89M | 282.79M | 212M | 140.56M | 94.39M | 72.94M | 56.34M |
| Interest Expense | 660.65M | 683.79M | 780.1M | 629.73M | 162.28M | 33.89M | 58.64M | 89.7M | 50.59M | 27.79M | 18.97M | 14.29M |
| Loan Loss Provision | 125.33M | 117.75M | 24.28M | 40.23M | 17.3M | 5.01M | 11.84M | 3.94M | 4.63M | 2.47M | 960K | 960K |
| Non-Interest Income | 184.89M | 164.39M | 144.34M | 111.26M | 121.23M | 149.68M | 118.39M | 42.55M | 44.96M | 43.58M | 24.25M | 24.27M |
| Non-Interest Income % | 13.5% | 12.04% | 9.98% | 9.36% | 20.14% | 32.43% | 29.51% | 16.72% | 24.24% | 31.59% | 24.95% | 30.11% |
| Total Revenue | 1.37B | 1.37B | 1.45B | 1.19B | 602.07M | 461.56M | 401.18M | 254.55M | 185.53M | 137.97M | 97.19M | 80.62M |
| Revenue Growth % | -8.83% | -5.65% | 21.7% | 97.5% | 30.44% | 15.05% | 57.6% | 37.2% | 34.47% | 41.96% | 20.56% | - |
| Non-Interest Expense | 311.47M | 299.89M | 220.04M | 171.19M | 131.35M | 117.73M | 87.34M | 58.78M | 46.28M | 30.55M | 22.47M | 18.19M |
| Efficiency Ratio | 22.75% | 21.97% | 15.21% | 14.4% | 21.82% | 25.51% | 21.77% | 23.09% | 24.94% | 22.14% | 23.12% | 22.56% |
| Operating Income | 271.61M | 263.8M | 422.64M | 347.91M | 291.14M | 304.93M | 243.36M | 102.13M | 84.03M | 77.16M | 54.8M | 47.18M |
| Operating Margin % | 19.84% | 19.32% | 29.21% | 29.26% | 48.36% | 66.06% | 60.66% | 40.12% | 45.29% | 55.93% | 56.38% | 58.52% |
| Operating Income Growth % | - | -37.58% | 21.48% | 19.5% | -4.52% | 25.3% | 138.27% | 21.55% | 8.9% | 40.82% | 16.14% | - |
| Pretax Income | 271.61M | 263.8M | 422.64M | 347.91M | 291.14M | 304.93M | 243.36M | 102.13M | 84.03M | 77.16M | 54.8M | 47.18M |
| Pretax Margin % | 19.84% | 19.32% | 29.21% | 29.26% | 48.36% | 66.06% | 60.66% | 40.12% | 45.29% | 55.93% | 56.38% | 58.52% |
| Income Tax | 43.34M | 45.03M | 102.26M | 68.67M | 71.42M | 77.83M | 62.82M | 24.8M | 21.15M | 22.48M | 21.67M | 18.8M |
| Effective Tax Rate % | 15.96% | 17.07% | 24.19% | 19.74% | 24.53% | 25.52% | 25.82% | 24.29% | 25.17% | 29.13% | 39.54% | 39.84% |
| Net Income | 228.26M | 218.77M | 320.39M | 279.23M | 219.72M | 227.1M | 180.53M | 77.33M | 62.87M | 54.68M | 33.13M | 28.38M |
| Net Margin % | 16.67% | 16.02% | 22.14% | 23.48% | 36.49% | 49.2% | 45% | 30.38% | 33.89% | 39.63% | 34.08% | 35.21% |
| Net Income Growth % | -21.71% | -31.72% | 14.74% | 27.09% | -3.25% | 25.8% | 133.46% | 22.99% | 14.98% | 65.07% | 16.71% | - |
| Net Income (Continuing) | 228.26M | 218.77M | 320.39M | 279.23M | 219.72M | 227.1M | 180.53M | 77.33M | 62.87M | 54.68M | 33.13M | 28.38M |
| EPS (Diluted) | 4.96 | 3.78 | 6.30 | 5.64 | 4.47 | 4.76 | 3.85 | 1.58 | 1.38 | 1.52 | 0.98 | 0.90 |
| EPS Growth % | -24.63% | -40% | 11.7% | 26.17% | -6.09% | 23.64% | 143.67% | 14.49% | -9.21% | 55.1% | 8.89% | - |
| EPS (Basic) | - | 3.78 | 6.32 | 5.66 | 4.49 | 4.78 | 3.85 | 1.58 | 1.39 | 1.52 | 0.98 | 0.90 |
| Diluted Shares Outstanding | 46M | 45.94M | 45.01M | 43.35M | 43.32M | 43.33M | 43.17M | 43.12M | 43.09M | 33.85M | 31.76M | 31.61M |
Mortgage market cyclicality
As reported in recent quarterly filings, Merchants Bancorp's net interest income has largely plateaued, fluctuating near the $128 million mark, which suggests that the bank's ability to expand its interest-earning asset base is currently constrained by the broader interest rate environment and competitive funding pressures.
The lack of meaningful NII growth indicates that the bank is struggling to offset the rising cost of deposits with higher yields on its specialized bridge-to-HUD loan portfolio. Investors should monitor whether the bank can maintain its current interest income levels if the mortgage warehousing segment continues to face reduced origination volumes.
Based on the provided financial data, the bank's net interest margin has remained stubbornly fixed at 0.7% for several consecutive quarters, reflecting a structural inability to widen spreads despite the bank's specialized niche in government-insured multi-family lending and mortgage warehousing activities.
This persistent margin compression suggests that the bank's funding costs are closely tracking its asset yields, leaving little room for expansion. The lack of NIM volatility may imply that the bank's pricing power is limited by the highly competitive nature of the secondary mortgage market.
According to the latest income statement data, the efficiency ratio has trended upward from 13.5% in early 2024 to 23.9% by 2026Q1, signaling that the bank is experiencing a meaningful loss of operating leverage as non-interest expenses consume a larger portion of total revenue.
The rising efficiency ratio suggests that the bank's cost structure is becoming less flexible in the face of declining or stagnant revenue growth. This trend warrants further investigation into whether the bank is maintaining excessive overhead relative to its current mortgage production capacity.
As evidenced by the quarterly financial statements, provision expense for loan losses has shown significant volatility, peaking at $53.0 million in 2025Q2, which suggests that the bank is actively adjusting its reserves to account for potential credit deterioration within its specialized lending segments.
The sharp fluctuations in provisioning indicate that the bank's credit quality may be sensitive to the underlying performance of its bridge-to-HUD portfolio. Analysts should monitor whether these provisions are a proactive response to specific asset-class risks or a sign of broader portfolio stress.
Based on reported figures, non-interest income has exhibited significant quarter-over-quarter variability, ranging from a low of $15.6 million to a high of $58.4 million, highlighting the bank's heavy reliance on transactional gain-on-sale revenue rather than stable, recurring fee streams.
This lumpy fee income profile makes the bank's earnings highly sensitive to the timing of multi-family deal closures and secondary market liquidity. Investors should be cautious of the dependency on these transactional fees, as they may not provide a reliable buffer during periods of market volatility.
Quick answers to the most common questions about buying MBIN stock.
Merchants Bancorp (MBIN) is profitable, generating $218.8M in net income for the fiscal year ending 2025 with a net profit margin of 16.0%.
Merchants Bancorp (MBIN) reported an operating income of $263.8M, resulting in an operating profit margin of 19.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Merchants Bancorp (MBIN) generated $563.7M in gross profit for the year, representing a gross profit margin of 41.3%. This demonstrates the company's core pricing power and production efficiency.