Merchants Bancorp Q2 Profit Doubles as Credit Losses Plunge 83%
MBIN sits 70% above its 52-week low of $28.75.
Summary
Net income more than doubled to $78.3M, or $1.48 per share, driven by an 83% drop in credit loss provisions to just $9.18M — a dramatic reversal from last year's fraud-related surge. Net interest income rose 6% on higher loan balances, though margin compressed from a shift in loan mix. The results confirm the credit quality improvement flagged in the 8-K filed earlier today, with tangible book value hitting a 30th consecutive quarterly high. Management flagged near-term pressure on loan sale gains from elevated Treasury rates, but expects servicing fees and derivatives to offset. The stock trades at 9x forward earnings, with a median analyst target of $51.
At the time of this announcement, MBIN was trading at $48.77 on NASDAQ in the Finance sector, with a market capitalization of approximately $2.2B. The 52-week trading range was $28.75 to $51.47. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.