| Metric | Value ($ M) | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Revenue | 171.07 | 4.5% | 14.4% |
| Total Income | 171.07 | 4.5% | 14.4% |
| Expenditure | 106.49 | 18.3% | 56.1% |
| PBT | 64.58 | 32.2% | 20.6% |
| Net Profit | 54.70 | 44.0% | 10.7% |
| OPM | 37.75% | 10.50pp | 16.64pp |
| NPM | 31.98% | 10.78pp | 8.99pp |
| EPS | 0.97 | 61.7% | 17.1% |
Merchants Bancorp Reports Q3 2025 Net Income of $54.7 Million
04 May 2026 · 4 May, 8:43 am
Summary
Merchants Bancorp reported a net income of $54.7 million for the third quarter of 2025, compared to $61.3 million in the third quarter of 2024. Diluted earnings per common share were $0.97, down 17% year-over-year. The company saw improvements in asset quality, with loans receivable classified as special mention decreasing by 9% compared to the previous quarter. Core deposits increased by 12% compared to June 30, 2025, reaching $12.8 billion and representing 92% of total deposits.
Key Highlights
- 1
Merchants Bancorp reported a third quarter 2025 net income of $54.7 million.
- 2
Diluted earnings per common share for the third quarter of 2025 were $0.97, a decrease of 17% compared to Q3 2024.
- 3
Loans receivable classified as special mention decreased by 9% compared to June 30, 2025, falling to $155.7 million.
- 4
Gain on sale of loans increased by $7.9 million, or 47%, compared to the third quarter of 2024.
- 5
Tangible book value per common share reached a record-high of $36.31, an increase of 12% compared to the third quarter of 2024.
- 6
Core deposits of $12.8 billion increased $1.4 billion, or 12%, compared to June 30, 2025.
- 7
Total assets reached the highest level ever reported by the Company at $19.4 billion, an increase of $548.9 million, or 3%, compared to December 31, 2024.
Management Comments
Michael F. Petrie
We are pleased with the strong rebound in earnings this quarter, driven by improved credit quality and disciplined execution. We also continued our successful track record of implementing credit risk transfers, including a $557 million healthcare loan pool, which enhances capital efficiency and reduces risk exposure. In addition, the strong activity in gain on sale of loans this quarter underscores the resilience and strength of our core businesses.
Michael J. Dunlap
Asset quality trends improved, with lower provision expenses and reduced criticized assets during the quarter. Combined with strong liquidity, core deposit growth, and effective capital management, we are confident in our ability to deliver sustainable performance and capitalize on additional market opportunities. These actions reinforce our commitment to long-term stability and shareholder value.
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