Merchants Bancorp Q4 net income rises

Overview

• U.S. bank holding company's Q4 net income increased 24% sequentially

• Q4 diluted EPS decreased 31% yr/yr

• Company achieved record tangible book value per share

Outlook

• Merchants Bancorp confident in leveraging improved credit quality for growth in 2026

• Company aims for strategic, sustainable growth and long-term value in 2026

Result Drivers

• ASSET QUALITY IMPROVEMENT - Criticized loans decreased 13% sequentially, reflecting improved credit conditions

• RECORD LOAN SALES - Gain on sale of multi-family loans reached highest level in company history, driving momentum

• NET INTEREST INCOME - Increased 12% sequentially due to higher net interest income and lower provision expenses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Merchants Bancorp is $40.00, about 13.2% above its January 27 closing price of $35.33

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPn8ST4kra

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