Merchants Bancorp Q3 net income falls 11%

Merchants Bancorp

28/10/2025 20:14

Overview

Merchants Bancorp Q3 net income falls 11% yr/yr, but rises 44% from Q2 2025

Q3 diluted EPS of $0.97, down 17% yr/yr, up 62% from Q2 2025

Company executed credit default swap on $557 mln healthcare loan pool

Outlook

Company did not provide specific financial guidance for future quarters in press release

Result Drivers

CREDIT QUALITY IMPROVEMENT - Decrease in provision for credit losses by 45% contributed to improved net interest income after provisions

LOAN SALES STRENGTH - Gain on sale of loans increased by 47% compared to Q3 2024, highlighting core business resilience

RISK MANAGEMENT - Execution of a credit default swap on a $557 mln healthcare loan pool to reduce risk-based capital requirements

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$0.97
Q3 Net Income
$54.70 mln
Q3 Net Interest Income
$128.05 mln
Q3 Basic EPS
$0.97
Q3 Credit Loss Provision
$29.23 mln
Q3 Pretax Profit
$64.58 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 $40.00, about 19.1% above its October 27 closing price of $32.36

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

Press Release: ID:nPnrYnbDa

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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.)