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/Mis Actual Consensu

s s

Estimate

Q3 EPS $0.97

Q3 Net $54.70

Income mln

Q3 Net $128.05

Interest mln

Income

Q3 Basic $0.97

EPS

Q3 $29.23

Credit mln

Loss

Provisio

n

Q3 $64.58

Pretax mln

Profit

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 ( MBIN ) 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:

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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.)