Merchants Bancorp's Q1 net income, EPS rise

Merchants Bancorp

28/04/2026 21:34

Overview

U.S. bank holding company reported Q1 net income up 16% yr/yr, diluted EPS up 34%

Company achieved record-high total assets and tangible book value per share in Q1

Company repurchased 73,164 shares for $3 mln under its share buyback program

Outlook

Company did not provide specific guidance for the current or future periods

Result Drivers

NONINTEREST INCOME - Q1 benefited from a 97% yr/yr increase in noninterest income, mainly due to higher fair value adjustments to mortgage servicing rights and certain derivatives

NET INTEREST INCOME - Net interest income rose 5% yr/yr, reflecting lower interest expense on certificates of deposits and borrowings, partially offset by higher interest expense on checking accounts and lower interest income on loans

NONINTEREST EXPENSE - Noninterest expense increased 23% yr/yr, mainly due to higher costs related to nonperforming assets, salaries, credit risk transfer premiums, and deposit insurance

Company press release: ID:nPn468vmna

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
$1.25
Q1 Net Income
$67.73 mln
Q1 Net Interest Income
$128.65 mln
Q1 Credit Loss Provision
$15.30 mln


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 $49.00, about 1.6% below its April 27 closing price of $49.78

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)