Merchants Bancorp · NASDAQ:MBIN
Merchants Bancorp — Morgan Stanley US Financials Conference 2025
32 slides from Merchants Bancorp's conference presentation, Jun 11, 2025
Slide 1: Morgan Stanley – US Financials Conference
Morgan Stanley – US Financials Conference June 11, 2025
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation may contain “forward-looking statements” within the meaning of meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking stateme
Slide 3: Overview of Merchants Bancorp (MBIN)
Overview of Merchants Bancorp (MBIN) Overview of Merchants Business Summary (2) • Merchants Bancorp (MBIN) is a diversified bank holding company Assets ($B) $18.8 headquartered in Carmel, IN – $18.8B in assets as of 03/31/2025 Headquarters Carmel, IN – $12.4B in deposits as of 03/31/2025 • Operates
Slide 4: Strong Financial Performance Has Driven Significant Shareholder Value
Strong Financial Performance Has Driven Significant Shareholder Value Historical Performance Since 2019 Earnings per Share(4) Tangible Book Value per Share (2)(4) ($, per Share) ($, per share) 34.15 34.90 6.30 27.40 5.64 23.72 24.43 21.31 21.88 21.94 4.76 19.64 19.5 4.47 17.96 3.85 13.45 1.58 2019 2
Slide 5: Merchants Bancorp: Key Franchise Highlights
Merchants Bancorp: Key Franchise Highlights 1 Superior Profitability & Earnings Growth Profile in Every Interest Rate Environment 2 Unique Originate-to-Sell Model with Differentiated Revenue Streams Reduces Earnings Volatility 3 Highly Efficient Cost Structure, Unique Business Model 4 Diversified, S
Slide 6: Superior Profitability & Earnings Growth Profile in Every Interest Rate Environment
1 Superior Profitability & Earnings Growth Profile in Every Interest Rate Environment Profitability Has Been Consistently Above Peers Net Interest Margin Net Income Over Time Consistent NIM across all 4.97% 5.19% (%) interest rate cycles $292 5.00% ($M) $320 $181 $227 $220 $279 4.36% 4.00% $320 $292
Slide 7: Unique Originate-to-Sell Model With Differentiated Revenue Streams
2 Unique Originate-to-Sell Model With Differentiated Revenue Streams Business Mix Revenue Diversification Reduces Earnings Volatility Through the Full Rate Cycle Net Revenue by Business Line (1) ($M) $646 $621 % of Total $523 $430 $427 $338 $328 53% Banking $340 $287 $145 $195 $98 $131 $128 $139 $73
Slide 8: Highly Efficient Cost Structure, Unique Business Model
3 Highly Efficient Cost Structure, Unique Business Model Industry Leading Efficiency Driven by a Branch Light Model Non-Interest Expense / Average Assets (1) Efficiency Ratio (1)(2) (%) (%) Since 2019 Merchants’ cost structure has been Since 2020 Merchants has been more than approximately half of pe
Slide 9: Diversified, Short Duration Loan Portfolio with Strong Organic Growth Over Time
4 Diversified, Short Duration Loan Portfolio with Strong Organic Growth Over Time Low-Risk Loan Composition Across Niche Products Loan Portfolio Growth Over Time (1) $14.2 $14.4 % of Total (HFI + HFS) $13.3 28% Held-for-Sale $3.8 $4.0 SF / Warehouse: $2.7B $3.1 Multi-Family: $1.3B $10.4 10% Commerci
Slide 10: Highly Disciplined Credit Culture
5 Highly Disciplined Credit Culture Asset Quality Net Charge-Offs (Recoveries) / Avg. Loans (1) (%) Since 2019 Merchants NCO’s / Avg. Loans have been traditionally below peer group levels 0.30% 0.16% 0.13% 0.10% 0.09% 0.07% 0.08% 0.07% 0.03% 0.01% 0.01% 0.00% 2020 2021 2022 2023 2024 03/25 YTD MBIN
Slide 11: Growing Deposit Base with Multiple Sources of Funding
6 Growing Deposit Base with Multiple Sources of Funding Deposit Growth Has Supported Loan Growth Over Time; Flexible Funding Options Available Deposit Growth Over Time Liquidity Coverage Relative to Uninsured Deposits ($B, End of Period Deposit Balances) ($B, 1Q25) Avg. Duration of CDs is 5 months %
Slide 12: Efficient Capital Structure Coupled with Low-Risk Balance Sheet
7 Efficient Capital Structure Coupled with Low-Risk Balance Sheet Capital Optimization via Securitizations; Short Duration Balance Sheet with Optimal Asset-Liability Positioning Total Capital to Risk-Weighted Assets(1)(4) • Low-risk originate to sell business model (%) 13.9% ‒ Primary focus on fundi
Slide 13: Credit Risk Transfer Alternatives Increasing Origination & Balance Sheet Capacity
Credit Risk Transfer Alternatives Increasing Origination & Balance Sheet Capacity (1) 2020 - 2025 YTD Loan Risk Transfer Activity(1) • Decreases credit risk ($M) 2020 2021 2022 2023 2024 2025 Total Total Off-Balance Sheet: 2,716 • Increases origination Debt Funds 213 414 700 - - - 1,327 Freddie-Q De
Slide 14: Credit Risk Transfers - Examples
Credit Risk Transfers - Examples (In thousands) As Originated Credit Risk Transfer Options Credit Default Freddie Q / Debt Repack Swap Funds Merchants Merchants Merchants (4) Third Parties Merchants (5) Loan Balances $ 1,000,000 $ 1,000,000 $ - $ - $ - Securities Balances $ - $ - $ 850,000 $ 150,000
Slide 15: High-Quality Securities Portfolio Support Borrowing Capacity
8 High-Quality Securities Portfolio Support Borrowing Capacity No Mark-to-Market Impact; Primarily Variable Rates Security Porfolio Composition - 1Q25 ($ in thousands) Securities held to maturity Variable Rates Fixed Rates Total Securitizations: MBS - Originated multi-family bridge $ 591,874 Agency
Slide 16: High-Quality Securities Portfolio with No Mark-to-Market Impact
9 High-Quality Securities Portfolio with No Mark-to-Market Impact Comparatively Low Composition of Securities with No Accumulated Other Comprehensive Loss Balance Securities Concentration (1)(2)(3) Accumulated Other Comprehensive (%, 4Q24) Loss (AOCL)(2) as of 4Q24: ~$0.1M (3) Mark-to-Market Capital
Slide 17: Significant Growth Opportunities
10 Significant Growth Opportunities History of Delivering Industry Leading Performance and Shareholder Returns Historical Price Performance Key Future Growth Drivers Indexed to 100 (%) Sales growth in all segments through existing and new 500 markets, new sales hires 450 Future reductions in int
Slide 18: Additional Materials
APPENDIX Additional Materials
Slide 19: History of Merchants Bank of Indiana
History of Merchants Bank of Indiana Merchants History Driven by a Strong Underlying Culture and Commitment to Firm Values • Merchants Capital Surpasses $2.1B in LIHTC • Executed $1.7B in two credit default swaps in 2024 Equity Raised since inception • Rebranded to “ Merchants Bank of • Sold Branche
Slide 20: Recent Awards and Accolades
Recent Awards and Accolades Top-Performing Bank Top-Performing U.S. Public Bank #2 in 2024 ranking of top banks #10 in 2023 and 2024 and #1 in 2022 ranking of U.S $10–$50 billion in assets public Banks with more than $10 billion in assets #2 Warehouse Lender Top 10 Correspondent Top 5 Multifamily Be
Slide 21: Overview of the Management Team
Overview of the Management Team Experienced Leadership with Strong Industry Experience MICHAEL PETRIE RANDALL ROGERS MICHAEL DUNLAP Chairman Vice Chairman President & CEO 46 years in industry 56 years in industry 33 years in industry 35 years with company 35 years with company 16 years with company
Slide 22: Overview of the Board of Directors
Overview of the Board of Directors Strong Governance Structure Name / Role Age Director Since Committee Chair Biography Mr. Petrie has served as Chairman and Chief Executive Officer of the Company since October 2006 and has also served as Chairman of Merchants Bank since March 2002. From March 2002
Slide 23: Financial Position: Key Highlights
Financial Position: Key Highlights Strong Financial Performance As of March 31, As of December 31, 2025 2024 2023 2022 Change Since 2022 (1) Key Items ($M) Total Assets 18,798 18,806 16,953 12,615 49% Loans HFI 10,427 10,438 10,200 7,471 40% Loans HFS 3,983 3,772 3,145 2,911 37% Total Deposits 12,40
Slide 24: Financial Position: Balance Sheet
Financial Position: Balance Sheet (1) As of March 31, As of December 31, ($M, unless otherwise stated) 2025 2024 2023 2022 Assets Cash and Cash Equivalents 521 477 584 226 Securities Purchased Under Agreements to Resell 2 2 3 3 Mortgage Loans In Process Of Securitization 390 428 111 154 Securities A
Slide 25: Financial Position: Income Statement
Financial Position: Income Statement (1) Quarter Ended March 31, Year Ended December 31, ($M, unless otherwise stated) 2025 2024 2023 2022 Income Statement Interest Income 287 1,303 1,078 481 Interest Expense 165 780 630 162 Net Interest Income 122 523 448 319 Provision for Credit Losses 8 24 40 17
Slide 26: Business Segments: Financial Overview
Business Segments: Financial Overview Merchants Operates a Balanced Mix of Businesses Quarter Ended March 31, 2025 Net Revenue by Business Line (2)(3)(4) Multi-Family Mortgage (%) ($M, unless otherwise stated) Mortgage Banking Warehousing Banking Other Total (1) Multi-Family Consolidated Financials
Slide 27: Business Segments: Merchants Capital Overview
Business Segments: Merchants Capital Overview Top 5 Multifamily Multi-family segment produced 22% of Merchants total net revenues (1) in 1Q25 Fannie and Freddie Affordable Housing Lender 2023 ranking Nationally ranked lender to developers of multi-family residential and healthcare properties, sp
Slide 28: Business Segments: Warehouse Overview
Business Segments: Warehouse Overview #2 Warehouse Lender. Warehouse segment produced 20% of Merchants total net revenues in 1Q25(1) Inside Mortgage Finance 2024 ranking Merchants Bank saw an opportunity to start its warehouse lending business in 2009 and has grown to fund volumes of $111B in 20
Slide 29: Business Segments: Warehouse Overview
Business Segments: Warehouse Overview #2 Warehouse Lender. Inside Mortgage Full product offering - warehouse lines to fund loans, lines of credit collateralized by mortgage Finance 2024 ranking servicing rights, and operating lines of credit • Customers fund their loans under warehouse agreements,
Slide 30: Business Segments: Banking Overview (1 of 2)
Business Segments: Banking Overview (1 of 2) Generated 57% of Total Net Revenues in 1Q25(1) Top National SBA Lender. SBA 2023 ranking 1 Bridge Loans / Multi-family Securitizations Nationally ranked lender to developers of multi-family residential and healthcare properties, offering bridge loan pro
Slide 31: Business Segments: Banking Overview (2 of 2)
Business Segments: Banking Overview (2 of 2) Generated 57% of Total Net Revenues in 1Q25(1) Top National SBA Lender. SBA 2023 ranking 2 Merchants Mortgage Full-service retail and correspondent single-family mortgage origination and servicing platform since it began in 2013 Profitable every year
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation (1) At March 31, At December 31, (Dollars in thousands) 2025 2024 2023 2022 2021 2020 Net income as reported per GAAP $ 58,239 $ 320,386 $ 279,234 $ 219,721 $ 227,104 $ 180,533 Less: preferred stock dividends (10,265) (34,909) (34,670) (25,983) (20,873) (14,473) Less: preferr
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