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Investing.com -- Merchants Bancorp (NASDAQ:MBIN) reported first quarter 2025 earnings that fell short of analyst expectations, sending shares down 3.3% in trading.
The bank holding company posted net income of $58.2 million, or $0.93 per diluted share, for Q1 2025. This missed the analyst consensus estimate of $1.22 per share by $0.29.
Net income decreased 33% compared to $87.1 million, or $1.80 per diluted share, in Q1 2024. The company cited market uncertainty that delayed loan originations and conversions, negatively impacting gain on sale revenue and net interest margin.
Total revenue for the quarter was $145.9 million, down 13% YoY from $168 million.
"Despite some challenges this quarter, we remain confident in our strategic direction and outlook for future performance," said Michael F. Petrie, Chairman and CEO of Merchants. "Our loan pipeline remains strong, and we are well-positioned to execute when the uncertain interest rate environment becomes clearer for our borrowers."
The company’s allowance for credit losses on loans increased to $83.4 million, up 10% from a year ago, primarily related to the multi-family loan portfolio. Non-performing loans rose to 2.73% of total loans, compared to 1.22% in Q1 2024.
Merchants Bancorp shares were down 3.3% following the earnings release, reflecting investor disappointment with the quarterly results.
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