Merchants Bancorp

· As of June 30, 2025, the Company had $5.0 billion in unused borrowing capacity with the Federal Home Loan Bank and the Federal Reserve Discount window, representing 26% of total assets.

SEC original ↗Merchants Bancorp — Earnings release (8-K exhibit)EX-99Jul 28, 2025

The Company continues to have significant borrowing capacity available, with unused lines of credit totaling $5.0 billion as of June 30, 2025 compared to $4.7 billion at March 31, 2025 and $4.3 billion at December 31, 2024.

SEC original ↗Merchants Bancorp — Earnings release (8-K exhibit)EX-99Jul 28, 2025

Taken together with its unused borrowing capacity of $5.0 billion described above, these totaled $11.9 billion, or 62%, of its $19.1 billion total assets at June 30, 2025.

SEC original ↗Merchants Bancorp — Earnings release (8-K exhibit)EX-99Jul 28, 2025

Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024 Net Interest Income of $128.7 million remained essentially unchanged, compared to $128.1 million, reflecting lower interest expense on deposits that was partially offset by lower interest income and higher interest expense on borrowings.

SEC original ↗Merchants Bancorp — Earnings release (8-K exhibit)EX-99Jul 28, 2025

The margin was negatively impacted by a significant shift in business mix, as highly profitable but lower-margin loans held for sale balances, consisting of primarily warehouse loans, grew by $622.7 million, or 18%, and warehouse repurchase agreements grew by $473.8 million, or 35%, while other higher-margin loans receivable balances contracted by a net of $964.1 million.

SEC original ↗Merchants Bancorp — Earnings release (8-K exhibit)EX-99Jul 28, 2025

The decrease reflected lower average balances at lower average rates on certificates of deposit that were partially offset by higher average balances at lower average rates on borrowings.

SEC original ↗Merchants Bancorp — Earnings release (8-K exhibit)EX-99Jul 28, 2025

Dunlap, President and Chief Operating Officer of Merchants, added, “ We have implemented strategies to address our asset quality issues and to enhance our overall risk management practices to ensure long-term resilience.

SEC original ↗Merchants Bancorp — Earnings release (8-K exhibit)EX-99Jul 28, 2025

In 2023 and 2024, the Company strategically executed credit protection arrangements through a credit linked note and credit default swaps.

SEC original ↗Merchants Bancorp — Earnings release (8-K exhibit)EX-99Jul 28, 2025

Accordingly, management cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict.

SEC original ↗Merchants Bancorp — Earnings release (8-K exhibit)EX-99Jul 28, 2025