Merchants BancorpNASDAQ: MBIN

Investor Overview - Third Quarter 2025

Nov 17, 2025 at 3:34 PM UTC · Issued by Merchants Bancorp

Investor Overview Third Quarter 2025

1.27

Dividend Yield (%)(2)

Carmel, IN

Headquarters

$19.4

Assets ($B)

Business Summary (2)

Overview of Merchants Bancorp (MBIN)

Overview of Merchants

Merchants Bancorp (MBIN) is a diversified bank holding company headquartered in Carmel, IN

- $19.4B in assets as of 09/30/2025

Stock Price ($)(2)		$31.48
Market Value ($M)(2)		$1,445
Price / TBV (x)(2)		0.87x
Price / 2025 EPS (x)(2)		9.0x

$13.9B in deposits as of 09/30/2025

Operates 7 bank branches located in Indianapolis and Richmond, Indiana markets
Key business lines include:
- Multi-family Mortgage Banking
- Mortgage Warehouse
- Banking
Entrepreneurial management team with significant shareholder alignment; founding families still own ~60% of shares outstanding

Price/Tangible Book Value Per Share vs Peers

Gross Loans Held for Investment Composition (3Q25) (1)

Healthcare Other

3Q25:

Loans: $10.6B Loan Yield: 6.88%

Notes:

Totals may not sum to 100% due to rounding
Source: S&P Global; market data as of November 4, 2025

Peers

MBIN

Residential Real Estate 7%

1.20

1.00

0.80

Commerical & Commercial Real Estate 10%

Multi-family 33%

2.00

1.80

1.60

1.40

Loans Held for Sale 28%

Mortgage Warehouse 11%

10%

Strong Financial Performance Has Driven Significant Shareholder Value Historical Performance Since 2020

Earnings per Share(4) (6) Tangible Book Value per Share (2)(4)

per share)

34.15

36.31

27.40

19.64

21.31

17.96

21.88

19.5

21.94

23.72

24.79

13.45

($, per Share) ($,

5.64

4.76

4.47

3.85

4.35

6.30

2020 2021 2022 2023 2024 LTM

2020 2021 2022 2023 2024 3Q25

Total Assets(4)

($B)

Stock Price Performance Since IPO (3)

+195% Gain Since IPO vs 4% Peer Growth(5)

($)

Leverage Ratio (%) (1)

18.8 19.4

17.0

12.6

9.6

11.3

10.4

11.7

10.1

11.8

8.6

2020 2021 2022 2023 2024 3Q25

12.1

$31.48

Oct-25

Oct-17

Oct-19

Oct-21

Oct-23

Nov-25

Notes:

As defined by regulatory agencies; Tier 1 Leverage Ratio defined as the ratio of bank's core equity capital to its average total assets
Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the Appendix of the presentation
Source: S&P Global; market data as of November 4, 2025
Peer group source: S&P Global; Includes banks, as of December 2024, between $10-25B in assets that are publicly-traded on a major exchange. Sample includes 46 banks
Peer is KBW Nasdaq Regional Bank Price Return Index
LTM refers to last twelve months

Merchants Bancorp: Key Franchise Highlights

Superior Profitability & Earnings Growth Profile in Every Interest Rate Environment
Unique Originate-to-Sell Model with Differentiated Revenue Streams Reduces Earnings Volatility
Highly Efficient Cost Structure, Unique Business Model
Diversified, Short Duration Loan Portfolio with Strong Organic Growth
Product Mix Focused on Low-Risk, Government-Backed Programs
Growing Deposit Base with Multiple Sources of Funding
Efficient Capital Structure Coupled with Low-Risk Balance Sheet with Optimization via Securitizations
High-Quality Securities Portfolio with Minimal Mark-to-Market Impact
Significant Room for Growth and History of Delivering Industry Leading Returns

Superior Profitability & Earnings Growth Profile in Every Interest Rate Environment Profitability Has Been Consistently Above Peers

Net Income Over Time

($M)

$320

$279

$247

$227

$220

$181

Net Interest Margin

(%)

4.97%

5.19%

4.35%

$320

$181

2.69%

$227

$220

3.43%

$279

3.06%

3.03%

2.86%

$247

2.84%

2.97%

2.59%

2.79%

2.38%

1.92%

1.84%

0.52%

1.53%

0.10%

Consistent NIM across all interest rate cycles

5.00%

4.00%

3.00%

2.00%

2020

2021

2022

2023

2024

(2)

09/25 YTD

1.00%

2020

2021

2022

2023

2024

(2)

LTM

Net Interest Margin Market Yield Curve Spread 1-Month SOFR Net Income

Return on Average Assets (1)(3)

(%)

Return on Average Tangible Common Equity (1)(3)

(%)

34.0%

2.12%

2.23%

30.1%

1.38%

1.99%

1.85%

1.79%

22.5%

22.9%

20.2%

0.86%

1.24%

0.95%

0.96%

1.08%

0.97%

11.0%

16.4%

16.5%

13.9%

12.1%

9.3%

8.5%

2020

2021

2022

2023

2024

09/25 YTD

2020

2021

2022

2023

2024

09/25 YTD

MBIN Peer Median

Notes:

Peer group source: S&P Global; Includes banks, as of December 2024, between $10-25B in assets that are publicly-traded on a major exchange; excludes announced merger targets. Sample includes 46 banks
Net Income refers to the last twelve months as of September 30, 2025.
Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the Appendix of the presentation

Unique Originate-to-Sell Model With Differentiated Revenue Streams Business Mix Revenue Diversification Reduces Earnings Volatility Through the Full Rate Cycle

$82

$156

$98

Net Revenue by Business Line (1)

($M)

$103

$287

$523

$646

$131

$338

$597

% of Total

$340

$430

$427

$140

$270

45%

Banking

% Fee Based Revenue

38%

2020

$143

37%

2021

$157

29%

2022

$130

22%

2023

$174

23%

2024

$184

30%

$73

$195

$139

$145

LTM (2)

23%

31%

Mortgage Warehousing

Multi-Family Mortgage Banking

Mortgage Warehousing

Banking

Lender to developers of multi-family residential and healthcare properties specializing in FHA, FNMA, and FHLMC Affordable permanent loan products
Tax credit syndications lead to more originations and noninterest income
Revenue primarily from gain on sale of loans originated, as well as servicing fees on loans sold or retained
Warehouse and commercial lender to independent mortgage banks
Service custodial deposit relationships to match fund
Revenue primarily from interest income and fees earned during the time that agency eligible loans are originated to mortgage bankers and are held for resale within 30 days
Holds multi-family loans in portfolio
Merchants Mortgage operates nationally; now offering jumbo products
Merchants SBA operates primarily in the Midwest
Traditional community banking in Indiana
Revenue primarily from traditional interest income and gain on sale

Notes:

Net revenue includes net interest income after allowance for credit losses plus noninterest income; totals include revenue from "Other" segment which is not presented.
LTM refers to last twelve months

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)

54.0%

54.4%

53.3%

57.1%

61.3%

56.1%

(%)

Merchants' cost structure has been approximately half of peers relative to assets

Merchants has been significantly more efficient than peer group

2.2%

43.6%

2.1%

2.2%

2.3%

2.2%

1.1%

1.2%

1.3%

1.6%

27.4%

28.8%

30.6%

31.0%

33.4%

2020

2021

2022

2023

2024

09/25 YTD

2020

2021

2022

2023

2024

09/25 YTD

MBIN

Peer Median

•

Credit risk transfer premiums, collateral preservation of nonperforming loans, and addition of production staff had a negative impact of 669 bps

Unique Business Model Leads to an Industry Leading Expense Profile

Deep relationships with end customers driving economies-of-scale across business lines
High concentration of variable costs and diversified business lines and protects profitability through cycles
- Low-cost structure allows for superior rates to grow core deposits
Modernized infrastructure and efficient, technology-driven operation with significant operational capacity for growth
Recent increases in efficiency ratio associated with credit risk transfer activity

Notes:

Annualized. Peer group source: S&P Global; Includes banks, as of December 2024, between $10-25B in assets that are publicly-traded on a major exchange; excludes announced merger targets. Sample includes 46 banks
Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the Appendix of the presentation

Diversified, Short Duration Loan Portfolio with Strong Organic Growth Over Time Low-Risk Loan Composition Across Niche Products

$3.1

$0.4

$0.5

$2.3

$0.7

$1.6

Loan Portfolio Growth Over Time (1)

$1.5

$3.8

$14.2

$14.7

% of Total (HFI + HFS)

$13.3

28%

$1.5

$4.1

Held-for-Sale

$1.3

$4.0

$2.4

$1.6

$3.1

27%

SF / Warehouse: $3.3B Multi-Family: $0.8B

$9.1

$0.8

$2.7

$0.8

$0.5

$3.3

$8.6

$10.4

$4.6

10%

$1.5

10%

33%

10%

$4.9

$1.5

10%

33%

Commercial and Commercial Real Estate

$1.1B represents Warehouse (3)

Healthcare Financing

Multi-Family

Loans HFI + Loans HFS / Deposits (2)

$1.3

$1.0

$0.8

$1.4

10%

$1.6

$0.5

$1.2

$3.1

$1.6

$1.0

$2.9

2020 2021 2022 2023 2024 3Q25

116%

101%

103%

95%

119%

106%

11%

Residential Real Estate

Mortgage Warehouse Repurchase Agreements

Notes:

Totals for each bar may not add due to rounding; Consumer & Margin and Agriculture loans not shown for illustrative purposes due to scale
Reflects gross Loans (Loans Held for Investment and Loans Held for Sale) to deposits
Includes revolving lines of credit collateralized primarily by single-family mortgage servicing rights ("MSR"); MSR lines of credit balances were $0.9 billion as of 3Q25, $0.9B as of 2024, $1.1B as of 2023, $497M as of 2022, and $210M as of 2021

Product Mix Focused on Low-Risk, Government-Backed Programs Asset Quality

Net Charge-Offs (Recoveries) / Avg. Loans (1)(2)

(%)

Merchants NCO's / Avg. Loans have been traditionally below peer group levels

0.16%

0.10%

0.09%

0.07%

0.08%

0.07%

0.03%

0.01%

0.00%

0.01%

2020

2021

2022

2023

2024

MBIN Peer Median

Differentiated Risk Management Strategy

Loans are predominantly underwritten to agency guidelines for take-out, with variable rates or short maturities
NCOs / Avg. Loans historically been below peer levels
Substantially all commercial real estate (CRE) loans are owner-occupied; office loans are not offered

Notes:

Peer group source: S&P Global; Includes banks, as of December 2024, between $10-25B in assets that are publicly-traded on a major exchange; excludes announced merger targets. Sample includes 46 banks
Annualized

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