Merchants Bancorp(MBIN) - 2025 Q4 - Annual Results

Financial Performance - Full year 2025 net income was $218.8 million, a decrease of $101.6 million, or 32%, compared to 2024[1] - Fourth quarter 2025 net income of $67.8 million decreased by $27.8 million, or 29%, compared to Q4 2024[5] - Net income for Q4 2025 was $67,849,000, representing a 24% increase from Q3 2025 but a 29% decrease from Q4 2024[46] - The company reported a net income available to common shareholders of $58,798,000, a 32% increase from Q3 2025 but a 31% decrease from Q4 2024[46] - Net income available to common shareholders fell by 39% to $173,552,000 compared to $283,654,000[48] - Total net income for the year ended December 31, 2025, was $218,770 thousand, a decrease from $320,386 thousand in 2024[60] Asset and Liability Management - Total assets reached a record-high of $19.4 billion, up $643.2 million, or 3%, compared to December 31, 2024[1] - Total assets increased to $19,448,943 million as of December 31, 2025, up from $19,354,647 million in the previous quarter, representing a growth of 0.49%[43] - Total liabilities rose to $17,168,184 million, compared to $17,129,213 million, an increase of 0.23%[43] - Total liabilities increased to $17,547,108 thousand in Q4 2025 from $16,591,488 thousand in Q3 2025[58] Loan Performance - Criticized loans receivable decreased by 13% to $508.2 million compared to September 30, 2025, and by 27% compared to December 31, 2024[10] - Total loan delinquencies fell by 38% to $206.8 million compared to September 30, 2025[14] - Non-performing loans decreased by 34% to $197.8 million, or 1.79% of loans receivable, compared to September 30, 2025[13] - Total loans receivable increased to $11,034,682 million as of December 31, 2025, up from $10,608,551 million in the previous quarter, representing a growth of 4.0%[62] - The net loans receivable after allowance for credit losses was $10,951,381 million, compared to $10,515,221 million as of September 30, 2025, indicating a quarter-over-quarter increase of 4.1%[62] - Nonperforming loans decreased to $197,812 million, down from $298,268 million in the previous quarter, reflecting a reduction of 33.6%[65] Deposit Trends - Deposits grew by 9% in 2025, reaching $13.0 billion, while core deposits increased by 20% to $11.3 billion[1] - Total deposits decreased to $13,041,192 million from $13,934,705 million, a decline of 6.40% quarter-over-quarter[43] - Core demand deposits increased significantly to $604,081 million from $399,814 million in the previous quarter, marking a growth of 51.1%[67] - Total interest-bearing deposits decreased to $12,437,111 million from $13,534,891 million in the previous quarter, a decline of 8.1%[67] Income and Expense Analysis - Noninterest income decreased by $11.9 million, or 20%, to $47.2 million compared to Q4 2024[28] - Noninterest income increased by 11% to $164,388,000 from $148,112,000[55] - Total noninterest expense rose by 34% to $299,893,000 from $223,812,000[55] - Noninterest Expense of $83.6 million increased $6.4 million, or 8%, primarily reflecting a $4.8 million, or 48%, increase in other expenses[37] Equity and Book Value - Tangible book value per common share increased to $37.51, a 10% rise from $34.15 in Q4 2024[1] - Average shareholders' equity increased by 16% to $2,213,449 thousand in 2025 from $1,900,130 thousand in 2024[56] - Common stock issued and outstanding reached 45,893,172 shares, slightly up from 45,889,238 shares[43] - Goodwill remained stable at $8,014 million, unchanged from previous quarters[43] Credit Quality - Provision for credit losses decreased by 5% to $27,761,000 compared to Q3 2025, but increased significantly by 932% compared to Q4 2024[46] - The allowance for credit losses on loans was $83,301 million, down from $93,330 million in the previous quarter, indicating a decrease of 10.8%[62] - The percentage of pass loans improved to 95.4% of total loans receivable, up from 94.5% in the previous quarter[65] - The company reported year-to-date charge-offs of $124,116 million, compared to $86,070 million in the previous year, reflecting an increase of 44.3%[65]