Merchants Bancorp (MBIN) SEC Filings & Earnings Calls

“Total nonperforming loans (nonaccrual and greater than 90 days late but still accruing) were $205.6 million, or 1.67%, of total loans receivable, at June 30, 2026, compared to $197.8 million, or 1.79%, at December 31, 2025 and $251.5 million, or 2.39%, at June 30, 2025.” · word for word

Elevated charge-offs in multifamily loan portfolio, though improving

“Nearly 95% of the charge-offs in the second quarter of 2026 were associated with two multi-family loan relationships.” · word for word

Higher rates pressuring gain on sale of loans

“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.” · word for word

Multi-family credit deterioration

“The $15.9 million increase in provision expense on loans was primarily associated with declines on certain multi-family property values, after receiving new appraisals, and the ongoing investigation of borrowers involved in mortgage fraud or suspected fraud.”

Elevated charge-offs

“During the three months ended March 31, 2026, the Company recorded charge-offs across seven relationships, primarily in the healthcare and multi-family loan portfolios totaling $23.0 million and had $616,000 of recoveries compared to $10.5 million of charge-offs and $28,000 of recoveries for the three months ended March 31, 2025.” · word for word

Regulatory MOU (now terminated)

“During the three months ended March 31, 2026, the MOU was terminated, following progress made by management in addressing the MOU provisions.” · word for word

Charge-offs increased to $23.0M in Q1 2026 from $10.5M in Q1 2025; primarily healthcare and multi-family.

“During the first quarter of 2026, the Company recorded charge-offs across seven relationships, primarily in the healthcare and multi-family loan portfolios, totaling $23.0 million.” · word for word

Provision for credit losses increased $7.6M YoY.

“These increases were partially offset by ... a $7.6 million increase in the provision for credit losses.” · word for word

Mortgage fraud losses above historical levels

“Additionally, we discovered that similar to other peer multifamily lenders, as well as certain government sponsored enterprises, we were the victim of sophisticated mortgage fraud schemes primarily on loans originated during the COVID-19 pandemic, which contributed to our loan losses being above historical levels.” · word for word

Interest rate sensitivity limiting multifamily demand

“interest rates continued to remain elevated, which limited some multifamily customer's desire or ability to obtain new financing with us because our balance sheet financial products are generally floating rate.” · word for word

Capital constraints limiting growth

“the Board established a minimum leverage ratio of 9.0% and a minimum total capital ratio of 12.5%, which were higher than its historical internally established minimums and thereby limited our growth opportunities” · word for word

Significant increase in provision for credit losses

“Provision for credit losses 117,754 24,278 40,231” · word for word

Concentration of ownership by founders

“Messrs. Petrie and Rogers and their immediate families, collectively owned approximately 57% of our outstanding common stock as of December 31, 2025.” · word for word

Elevated charge-offs in multi-family loan portfolio

“The Company recorded charge-offs for 12 relationships, primarily in the multi-family loan portfolio, totaling $38.0 million... Approximately 75% of the charge-offs were associated with three relationships.” · word for word

Higher noninterest expense driven by credit risk transfer premiums and collateral preservation costs

“a $20.4 million, or 32%, increase in noninterest expense, largely attributable to increased costs associated with credit risk transfer premiums, higher salaries and employee benefits, as well as collateral preservation expenses.” · word for word

Multi-family CRE credit deterioration

“The increases in provision expenses and charge-offs were primarily associated with declines on multi-family property values, after receiving new appraisals, and the ongoing investigation of borrowers involved in mortgage fraud or suspected fraud.” · word for word

Regulatory MOU constraints

“On June 30, 2025, the Bank entered into a confidential MOU with the FDIC and DFI.” · word for word

Mortgage fraud exposure

“the ongoing investigation of borrowers involved in mortgage fraud or suspected fraud.” · word for word

Credit quality concerns: elevated charge-offs in multi-family loan portfolio; ongoing mortgage fraud investigation.

“Provision expense and charge-offs associated with declines on multi-family property values and ongoing investigation of borrowers involved in mortgage fraud.”

Concentration in multi-family and healthcare mortgage loans; credit default swap used to mitigate risk.

“Company executed a credit default swap on a $557.1 million pool of healthcare mortgage loans.” · word for word