Merchants Bancorp Reports Strong Third Quarter Earnings Growth in 2025

Merchants Bancorp Third Quarter 2025 Results

Merchants Bancorp, the parent company of Merchants Bank, has released its financial results for the third quarter of 2025, showcasing a commendable rebound in net income. The reported net income stood at $54.7 million, which marked a decline of $6.6 million compared to the same quarter of the previous year but an impressive increase of $16.7 million when compared to the preceding quarter.

The diluted earnings per share for Q3 2025 was reported at $0.97, reflecting a 17% decrease compared to the $1.17 reported in Q3 2024 but a 62% increase from the $0.60 of the prior quarter. These results underline the bank's resilience amid fluctuating economic conditions, demonstrating its ability to enhance its earnings through disciplined execution and effective management.

One of the highlights of the recent quarter was a significant reduction in provisions for credit losses, which fell by 45%, translating to a decrease of $23.8 million. The company noted that loans classified as special mention also decreased by 9% to $155.7 million since June 30, 2025. An increase in the gain on the sale of loans, which rose by $7.9 million or 47% compared to Q3 2024, further illustrated the strength in core business operations.

Another notable metric is that tangible book value per common share reached an all-time high of $36.31, a 12% increase from the prior year's figure of $32.38 and a 3% rise from Q2 2025.

As of September 30, 2025, the company reported $5.9 billion in unused borrowing capacity with the Federal Home Loan Bank and the Federal Reserve Discount window, accounting for 30% of its total assets. The total assets hit a record $19.4 billion, which is a 1% increase from June 30, 2025, and a 3% increase from the total reported as of December 31, 2024.

The company’s total loans receivable reached $10.5 billion after accounting for the allowance for credit losses, with a sequential increase of $83.1 million, reflecting the company's ability to expand its lending operations.

Furthermore, core deposits reached $12.8 billion, representing a 12% increase since the last quarter and a remarkable 36% increase since the end of the previous year. This growth indicates robust customer confidence and an expanding base.

Despite a decrease in brokered deposits, which fell by approximately 9% from the second quarter, the ability of the company to maintain liquidity is commendable, with total cash balances amounting to $598 million. This represents a solid foundation for future growth and stability.

Michael F. Petrie, Chairman and CEO, expressed contentment with the quarterly performance, emphasizing the successful management of credit risks and efficient execution strategies. He underscored the strong ongoing activities in loan sales that reflect the underlying strength of their core businesses.

In conclusion, the financial results of Merchants Bancorp for the third quarter of 2025 reveal a steady and sustainable trajectory of growth marked by enhanced earnings, effective cost management, and a strong deposit base. As the company keenly focuses on capitalizing on market opportunities, it reinforces its commitment to delivering long-term stability and shareholder value. Investors and stakeholders can look forward to the potential for increased profitability in the upcoming quarters as the company continues to refine its strategies and operations.