Slides
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Investor Overview4thQuarter 2025
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Legal DisclaimerThis 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 of1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect management's current views with respect to, amongother things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,”“should,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “will likely result,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,”“outlook,” “aim,” “annualized,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Theseforward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company's industry, management's beliefs andcertain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you 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. Although we believethat the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the resultsexpressed or implied by the forward-looking statements. Forward-looking statements speak only as of the date they are made and are inherently subject to uncertainties andchanges in circumstances, including those described under the heading “Risk Factors” in the Company’s latest Annual Report on Form 10-K and Quarterly Report on Form 10-Qfiled with the Securities and Exchange Commission (“SEC”). Forward-looking statements are not guarantees of future performance and should not be relied upon asrepresenting management’s views as of any subsequent date. The Company undertakes no obligation to update forward-looking statements, whether as a result of newinformation, future events or otherwise, except as may be required by law.This presentation is not an offer to sell securities, nor is it a solicitation of an offer to buy securities in any locality, state, country or other jurisdiction where such distribution,publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Neither the SEC nor any otherregulatory body has approved or disapproved of the securities of the Company or passed upon the accuracy or adequacy of this presentation. Any representation to the contraryis a criminal offense. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, createany implication there has been no change in the affairs of the Company after the date hereof.This presentation includes industry and market data that we obtained from periodic industry publications, third-party studies and surveys. Although we believe this industry andmarket data is reliable as of the date of this presentation, this information could prove to be inaccurate. Industry and market data could be inaccurate because of the method bywhich sources obtained their data and because information cannot always be verified with complete certainty due to the limits on the availability and reliability of raw data, thevoluntary nature of the data gathering process and other limitations and uncertainties. In addition, we do not know all of the assumptions regarding general economic conditionsor growth that were used in preparing the forecasts from the sources relied upon or cited herein.This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America(“GAAP”). Management uses these “non-GAAP” measures in its analysis of our performance. Management believes that these non-GAAP financial measures allow for bettercomparability with prior periods, as well as with peers in the industry who provide a similar presentation and provides a further understanding of our ongoing operations. Thesedisclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performancemeasures that may be presented by other companies. A reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures isprovided in the Appendix to this presentation.2
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Assets ($B)$19.4 Headquarters Carmel, INStock Price ($)(2)$47.63 Market Value ($M)(2)$2,186 Price / TBV (x)(2)1.27xPrice / 2025 EPS (x)(2)12.6xDividend Yield (%)(2)0.843 Overview of Merchants Bancorp (MBIN)•Merchants Bancorp (MBIN) is a diversified bank holding company headquartered in Carmel, IN–$19.4B in assets as of 12/31/2025–$13.0B in deposits as of 12/31/2025•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 ~57% of shares outstandingOverview of MerchantsBusiness Summary(2)Gross Loans Held for Investment Composition (2025)(1)Notes:1. Totals may not sum to 100% due to rounding2. Source: S&P Global; market data as of February 16, 20263. Peer group source: S&P Global; Includes banks, as of December 2025, between $15-35B in assets that are publicly-traded on a major exchange. Sample includes 45 banks2025: Loans: $11.0BLoan Yield: 6.87%Loans Held for Sale26% Mortgage Warehouse11%Residential Real Estate7% Multi-family36% Healthcare9% Commerical & Commercial Real Estate11%0.801.001.201.401.601.802.00Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25MBINPeersPrice/Tangible Book Value Per Share vs Peers (3)
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5203550Oct-17 Oct-20 Oct-23Feb 26Notes:1. As defined by regulatory agencies; Tier 1 Leverage Ratio defined as the ratio of bank’s core equity capital to its average total assets2. Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the Appendix of the presentation3. Source: S&P Global; market data as of February 16, 20264. Peer group source: S&P Global; Includes banks, as of December 2025, between $15-35B in assets that are publicly-traded on a major exchange. Sample includes 45 banks5. Peer is KBW Nasdaq Regional Bank Price Return Index 3.854.764.475.646.303.782020 2021 2022 2023 2024 202513.4517.9621.8827.4034.1537.5120.2821.6618.8420.2822.4321.01 2020 2021 2022 2023 2024 20259.6 11.3 12.6 17.0 18.8 19.4 2020 2021 2022 2023 2024 20254 Earnings per Share(4)Tangible Book Value per Share(2)(4)($, per share)Total Assets(4)($B)Stock Price Performance Since IPO (3)($) Strong Financial Performance Has Driven Significant Shareholder Value($, per Share) 12.110.411.710.111.58.6Leverage Ratio (%)(1) Historical Performance Since 2020 $47.63+347% Gain Since IPO vs 25% Peer Growth(5)
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Merchants Bancorp: Key Franchise HighlightsSuperior Profitability & Earnings Growth Profile in Every Interest Rate Environment1Efficient Capital Structure Coupled with Low-Risk Balance Sheet with Optimization via Securitizations7Unique Originate-to-Sell Model with Differentiated Revenue Streams Reduces Earnings Volatility2Growing Deposit Base with Multiple Sources of Funding6Highly Efficient Cost Structure, Unique Business Model3Product Mix Focused on Low-Risk, Government-Backed Programs5Diversified, Short Duration Loan Portfolio with Strong Organic Growth4Significant Room for Growth and History of Delivering Industry Leading Returns9High-Quality Securities Portfolio with Minimal Mark-to-Market Impact8 5
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$219$320$279$220$227$1812025202420232022202120201.11% 0.95% 0.95% 1.17% 1.33% 0.97% 1.16% 1.79% 1.85% 1.99% 2.23% 2.12% 202520242023202220212020Return on Average Assets (1)(2)(%)Net Interest Margin(%)Return on Average Tangible Common Equity (1)(2)(%)6 Superior Profitability & Earnings Growth Profile in Every Interest Rate EnvironmentProfitability Has Been Consistently Above Peers MBINPeer Median 1 ($M)Net Income Over Time 11.1% 11.5% 13.6% 16.6% 15.6% 11.0%10.5% 20.2% 22.9% 22.5% 30.1% 34.0% 202520242023202220212020 2.86% 3.03% 3.06% 2.97% 2.79% 2.69% 2.32%1.53%1.84%3.43%2.86%2.59%4.28%5.19%4.97%1.92%0.10%0.52%$219 $320 $279 $220 $227 $181 202520242023202220212020 -% 1.00% 2.00% 3.00% 4.00% 5.00%Net Interest MarginMarket Yield Curve Spread1-Month SOFRNet Income Notes:1. Peer group source: S&P Global; Includes banks, as of December 2025, between $15-35B in assets that are publicly-traded on a major exchange. Sample includes 45 banks 2. Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the Appendix of the presentation Consistent NIM across all interest rate cycles
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$174$174$130$157$143$82$149$131$103$73$139$156$241$338$287$195$145$98$564$646$523$427$430$340202520242023202220212020 Unique Originate-to-Sell Model With Differentiated Revenue Streams 7 Business Mix Revenue Diversification Reduces Earnings Volatility Through the Full Rate Cycle 38%23%37%29%22%% Fee BasedRevenue($M)Net Revenue by Business Line(1)2 29%Multi-Family Mortgage 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 retainedMortgage Warehousing– 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 daysBanking– 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 43%26%31%% of TotalBankingMortgageWarehousingMulti-FamilyMortgageBankingNotes:1. Net revenue includes net interest income after allowance for credit losses plus noninterest income; totals include revenue from “Other” segment which is not presented.
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Highly Efficient Cost Structure, Unique Business ModelNon-Interest Expense / Average Assets (1)(%)Efficiency Ratio (1)(2)(%) 8•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 activityUnique Business Model Leads to an Industry Leading Expense Profile 3Merchants’ cost structure has been approximately half of peers relative to assetsMerchants has been significantly more efficient than peer groupMBINPeer Median Industry Leading Efficiency Driven by a Branch Light Model •1.6% 1.3% 1.2% 1.2% 1.2% 1.1% 2.2% 2.2% 2.2% 2.1% 2.0% 2.2% 20252024202320222021202044.0% 33.4% 31.0% 30.6% 28.8% 27.4% 56.4% 60.8% 57.9% 54.6% 54.9% 54.6% 202520242023202220212020Notes:1. Annualized. Peer group source: S&P Global; Includes banks, as of December 2025, between $15-35B in assets that are publicly-traded on a major exchange. Sample includes 45 banks2. Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the Appendix of the presentationCredit risk transfer premiums, collateral preservation of nonperforming loans, and addition of production staff had a negative impact of 680 bps
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$1.6 $0.8 $0.5 $0.8 $1.4 $1.6 $0.7 $0.8 $1.2 $1.3 $1.3 $1.0 $2.3 $2.7 $3.1 $4.0 $4.6 $5.3 $0.5 $0.8 $1.6 $2.4 $1.5 $1.4 $0.4 $0.5 $1.0 $1.6 $1.5 $1.6 $3.1 $3.3 $2.9 $3.1 $3.8 $3.9 $8.6 $9.1 $10.4 $13.3 $14.2 $14.9 2020 2021 2022 2023 2024 2025Notes:1. Totals for each bar may not add due to rounding; Consumer & Margin and Agriculture loans not shown for illustrative purposes due to scale2. Reflects gross Loans (Loans Held for Investment and Loans Held for Sale) to deposits3. 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 2025, $0.9B as of 2024, $1.1B as of 2023, $0.5B as of 2022, and $0.2B as of 2021 Diversified, Short Duration Loan Portfolio with Strong Organic Growth Over Time 9 Low-Risk Loan Composition Across Niche Products4 116%119%101%103%95%Loans HFI + Loans HFS / Deposits (2) 114%Mortgage Warehouse Repurchase AgreementsResidential Real EstateMulti-FamilyHealthcare FinancingCommercial and Commercial Real EstateHeld-for-Sale26%11%9%36%7%11% % of Total (HFI + HFS)$1.2B represents Warehouse (3)SF / Warehouse: $3.5B Multi-Family: $0.4BLoan Portfolio Growth Over Time(1)27%10%10%33%9%10%
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0.19%0.18%0.11%0.04%0.06%0.13%0.85% 0.07% 0.08% 0.01% 0.01% 0.00% 202520242023202220212020 Product Mix Focused on Low-Risk, Government-Backed Programs 10 Asset QualityNet Charge-Offs (Recoveries) / Avg. Loans (1)(%) •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•The higher levels of charge-offs in 2025 were primarily related to mortgage fraud or suspected fraud.Differentiated Risk Management Strategy 5 MBINPeer MedianNotes:1. Peer group source: S&P Global; Includes banks, as of December 2025, between $15-35B in assets that are publicly-traded on a major exchange. Sample includes 45 banks Merchants NCO’s / Avg. Loans have historically been below peer group levels
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Reserve Adequacy 11 ACL coverage appropriate for specialized loan portfolio risk•No losses on Warehouse or 1stlien residential loan portfolios since inception•Guaranteed loans through government participation programs•Credit default swap transactions executed in 2024 and 2025 to reduce risk 11,034.7$ 0.75% Less: Mortgage Warehouse 1,600.3$ No losses since inception; participations in FHA & USDA guaranteed loans Multi-Family Construction1,698.5 No losses since inception; includes FHLMC & FNMA forwards 1st Lien Res Real Estate (All-in-One© HELOCs)832.2 No losses since inception & <51% Avg LTV MSR Lines of Credit 944.3 No losses since inception; cross-collateralized to warehouse facility Multi-Family & Healthcare Credit Default Swaps847.7 CDS provides a minimum 12% loss coverage on full UPB by third party Total removals 5,923.0$ 0.88% 5,111.7$ 1.63% ACL total at 12/31/25 is $83.3M Rationale for Removing Balances from ACL Coverage TOTAL Remainder - Total ACL Coverage ($'s in millions) GROSS UPB (LHFI)ACL Coverage
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$0.2 $3.4 $1.9 $3.1 Unused Borrowing Capacity Uninsured DepositsCashFederal Reserve FundingFHLB Funding$6.2 $6.8 $7.3 $8.1 $9.4 $11.3 $1.2 $2.2 $2.8 $6.0 $2.5 $1.8 2020 2021 2022 2023 2024 2025 Growing Deposit Base with Multiple Sources of Funding Funding Sources and Options12 Deposit Growth Has Supported Loan Growth Over Time; Flexible Funding Options Available$14.1$10.1$9.0$7.46Deposit Growth Over Time($B, End of Period Deposit Balances)$11.9$13.0Avg. duration of CDs is 5 months as of 12/31/2025Liquidity Coverage Relative to Uninsured Deposits ($B, 2025)$5.5Uninsured deposits represent 23% of total Bank deposits 1.8x •Short duration brokered deposits available as needed•~$1.8B of brokered deposits as of December 31, 2025•Utilized when most cost-effective option vs LOCs•$5.3B unused borrowing capacity with the FHLB and FR discount window as of December 31, 2025•Self-funding mechanism in place•Warehouse lending custodial deposits generally fund warehouse loans•Most accounts have 180 days notice to cancel•Merchants Capital’s servicing portfolio provides significant deposits•Core deposits grew 20% in 2025, representing 87% of total deposits as of December 31, 2025•Adjustable and fixed rate CDs < 1 year Brokered13%% of TotalCore87%FHLB & Federal ReserveCore Traditional Bank DepositsCore Custodial Escrow DepositsBrokered Deposits42%58%21%79%Notes:1. Totals and sub-totals may not foot due to rounding
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Funding Overview 13 Access to Well-Diversified Funding Sources Notes:1. Includes Liquidity Solutions and Client Deposit Services which provide solutions for businesses and organizations with large deposits that need strategies to maximize safety, liquidity, and yield. (Dollars in thousands)MultiAverage At Family Liquidity Retail & YTD 12/31/2025 Warehouse Escrows Brokered Solutions(1)Other TotalNon-interest Bearing 389,475$ 604,081$ 129,280$ 204,255$ -$ 111,245$ 159,301$ 604,081$ Interest Bearing Demand 6,599,331 6,807,814 3,486,267 745,436 600,000 1,537,904 438,207 6,807,814 Money Market/Savings 3,681,726 3,767,533 106,404 38,486 201,010 2,116,535 1,305,098 3,767,533 Certificate of Deposits 2,623,674 1,861,764 4,783 - 956,316 266,995 633,670 1,861,764 Total 13,294,206$ 13,041,192$ 3,726,734$ 988,177$ 1,757,326$ 4,032,679$ 2,536,276$ 13,041,192$ % of Total Deposits 28.7% 7.6% 13.4% 30.9% 19.4% 100.0%Deposit Balances at December 31, 2025
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14 Total Capital to Risk-Weighted Assets(1)(4)(%)Tangible Common Equity / Tangible Assets(2)(%) Efficient Capital Structure Coupled with Low-Risk Balance SheetCapital Optimization via Securitizations; Short Duration Balance Sheet with Optimal Asset-Liability Positioning7 •Low-risk originate to sell business model‒Primary focus on funding low-risk loans meeting underwriting standards of government programs ‒Adjustable-rate loans held for investment to hedge interest rate risk and protect net interest margin•Short duration balance sheet with ~96% of loans repricing within 3 months or less‒Majority could be sold or securitized within 120 days•Mortgage warehouse lines fully collateralized by underlying mortgages until sold to an investor‒Merchants Mortgage is a risk mitigant to Mortgage Warehousing because it provides us with a ready platform to sell the underlying collateral to secure repaymentLoan Portfolio Duration($M)9.3n/a7.77.89.9n/aCommon Equity Tier 1 Ratio (CET1) (%)(3)(4) 13.6% 13.9% 11.6% 12.2% n/an/a 20252024 2023 2022 2021 20208.9% 8.3% 7.0% 7.5% 6.9% 6.0% 20252024 2023 2022 2021 2020Balance Avg. Days to Reprice % TotalLoan TypeMortgage Loans in Process of Securitization620$ ~30 DaysTotal Loans Held for Sale3,873$ ~30 Days 26%Loans HFIMulti-Family Financing5,333$ ~60 Days 36%Healthcare Financing1,385$ ~30 Days 9%Commercial and Commercial Real Estate1,604$ ~90 Days 11%Residential Real Estate1,019$ ~9 Mos 7%Mortgage Warehouse Repurchase Agreements1,600$ ~30 Days 11%Agricultural Production and Real Estate92$ ~3 Years 0%Consumer and Margin Loans2$ ~60 Days 0%Total Loans HFI 11,035$ ~90 Days 74%Total Loans HFI and Loans HFS 14,908$ 100%As of December 31, 2025Notes:1. As defined by regulatory agencies2. Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the Appendix of the presentation3. As defined by regulatory agencies; CET1 Ratio defined as the ratio of bank’s core equity capital to its risk-weighted assets4. Merchants utilized the Community Bank Leverage Ratio (CBLR) framework from 1Q20 through 2Q22
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Notes:1. UPB of risk transfer transactions included from year of initial launch2. Loans remain on the balance sheet with a reduced risk weight3. Repack loans are sold off the balance sheet, but the Company replaces a portion of the loans with a security; see the next slide for example4. Includes LHFS-$3.9B, Multi-family LHFI-$5.3B, Healthcare LHFI-$1.4B, and Repack securities-$0.8B as of December 31, 2025 Credit Risk Transfer Alternatives Increasing Origination & Balance Sheet Capacity•Decreases credit risk•Increases origination capacity •Increases ROE •Provides avenues to drive future non-interest income, incl. MSR/GOS 15 Loan OriginationsMF & HC Bridge Loans Held for InvestmentCredit Linked NotesLoans Held for SaleCredit Default SwapsFreddie Q Debt Funds Future Permanent Loans to SellAverage Gain on Sale 50-200bps, net~$15B UPB >>> ~ $75M-$300M GOS Increases capacity to originate more loans and generate more GOS($M)2021 2022 2023 2024 2025 Total TotalOff-Balance Sheet: 3,597 Debt Funds 341 884 102 98 -1,425Freddie-Q Deals 262 498 304 325 7832,172Hybrid-Repacks: ($0.3M Off-Balance Sheet)(3)- 1,161 - 629 -1,790 1,790 On-Balance Sheet: 4,231 Credit Linked Notes(2)- - 1,130 - -1,130Credit Default Swap(2)- - - 1,744 1,3573,101Total 603 2,543 1,536 2,796 2,140 9,618 9,618 2021 - 2025 YTD Loan Risk Transfer Activity(1)(1) Repack Securities(3)$11B On-Balance Sheet(4)$4B Off-Balance Sheet (1)
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Credit Risk Transfers - Examples 16 (In thousands) Expands opportunity for gain on sale of permanent loansIncreases return on equityHigher return on risk weighted assetsNotes:1. Based on 10% capital requirement2. Estimated Net Interest Margin (NIM. CRT premium expense not incurred on repack and other credit risk transfer options)3. Merchants continues to service the loans sold in the repack; recognizing a mortgage servicing asset, an MSR gain, and earning recurring servicing fees not factored in the returns in this example4. Merchants purchases only the senior, Class A certificates. Unaffiliated, third parties purchase the lower tranche certificates and will absorb the first losses. In this example that would be 15%, or $150M5. Loans sold, therefore increases capacity to originate new loansIncreases loan origination capacityReduces risk-based capital requirementsIncreases credit protection via off-balance sheet, third party protection As OriginatedCredit Default SwapFreddie Q / Debt FundsMerchantsMerchants Merchants (4)Third PartiesMerchants (5)Loan Balances 1,000,000$ 1,000,000$ -$ -$ -$ Securities Balances -$ -$ 850,000$ 150,000$ -$ Risk Based Capital (%) 100% 20% 20% N/A N/ACapital Required ($) (1)100,000$ 20,000$ 17,000$ N/A -$ Balance Sheet Capacity Created-$ 800,000$ 830,000$ N/A 1,000,000$ NIM $30,000$ 30,000$ 13,600$ N/A N/AGain on Sale-$ -$ 6,000$ N/A 3,500$ Deal Costs/Commissions-$ 2,000$ 5,000$ N/A 3,000$ CRT Premium Expense-$ 8,000$ -$ N/A -$ NIM % (2)3.00% 3.00% 1.60% N/A N/ANIM % (if CRT premium expense included)(2)3.00% 2.20% 1.60% N/A N/AReturn on Assets (3)3.0% 2.0% 1.7% N/A N/AReturn on RWA (3)3.0% 10.0% 8.6% N/A N/AReturn on Equity (3)30.0% 100.0% 85.9% N/A N/ACredit Protection - ACL9,000$ 9,000$ -$ N/AN/ACredit Protection - CRT (Loans)-$ 130,000$ -$ N/AN/ACredit Protection - CRT (Securities)-$ -$ 127,500$ N/AN/ACredit Protection - Total9,000$ 139,000$ -$ N/AN/AEligible to be pledgedYes Yes No N/AN/A RepackCredit Risk Transfer Options
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17 No Mark-to-Market Impact; Primarily Variable RatesHigh-Quality Securities Portfolio Support Borrowing Capacity8 2025 AFS Securities Yield: 5.12% 2025 HTM Securities Yield: 5.86% TotalSecuritizations: MBS - Originated multi-family bridge loans 438,430$ Agency 11,684$ MBS - Originated healthcare bridge loans 393,588$ MBS - All-in-One, first-lien residential loans originated by Merchants and a warehouse customer 699,957$ Held to maturity - Total 1,531,975$ 11,684$ 1,543,659$ 64%TotalTreasuries30,680$ Federal Agencies259,508$ 385,460$ MBS - multi-family Agency $ 3,556 185,854$ Available for sale - Total 571,314$ 293,744$ 865,058$ 36%Total securities 2,103,289$ 87% 305,428$ 13% 2,408,717$ 100%Accumulated Other Comprehensive Loss (AOCL) on securities AFS(33)$ 0%Securities pledged and available for borrowing1,547,541$ 64% MBS - residential private label security acquired from a warehouse customer with a put option that guarantees a spread to SOFR MBS - residential Agency securities acquired from a warehouse customer with put options that guarantees a spread to SOFR Variable Rates Fixed RatesSecurity Porfolio Composition - December 31, 2025 ($ in thousands)Securities held to maturityVariable Rates Fixed Rates Securities held for sale
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Significant Growth Opportunities 18 History of Delivering Industry Leading Performance and Shareholder ReturnsKey Future Growth DriversSales growth in all segments through existing and new markets, new sales hiresFuture reductions in interest rates promote higher production and noninterest income from diverse sources and improve asset qualityContinue to develop Capital Markets unit to continually reduce credit risk on balance sheet sheet via securitizations, debt funds, and other structures that generate ongoing non-interest income, provide capacity to originate new loans, and increase ROE.Deploy technologies to enhance efficiencies, including deposit gathering systemsEffectively manage capital deployment to maximize returns Historical Price Performance(1)(2)Indexed to 100 (%) Notes:1. Data is from S&P Global as of February 16, 2026.2. KRX is KBW Nasdaq Regional Bank Price Return Index +347% MBIN MBINKRXS&P 500+167% S&P 500+25% KRX 10 50100150200250300350400450500 Oct-17 Oct-19 Oct-21 Oct-23Oct-25Feb-26
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APPENDIXAdditional Materials
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i •PR Mortgage is founded by Michael Petrie and Randall Rogers in August 1990•Acquired Greensfork Township State Bankin March 2002 ($7M in total assets)•Rebranded to “ Merchants Bank of Indiana”in April 2009 •Launched Mortgage Warehousebusiness line•Acquired Symphony Bancorpin January 2009 ($55M in total assets) •Established Merchants Mortgage residential origination and servicing•Completed $115M IPOin October 2017•Acquired RICHMAC Funding, LLC in August 2017•Acquired Joy State Bankin January 2018 ($43M in total assets)•Acquired Famers-Merchantsof Paxton in October 2018 ($110M in total assets)•Acquired Assets of NattyMac in December 2018 to expand warehouse lending•Expanded SBA lendingin Indiana•Opened new corporate HQin Carmel, Indiana•Completed $52M Preferred Offeringin March 2019•Completed $125M Preferred Offeringin August 2019•Completed $150M Preferred Offeringin March 2021•Completed$262M of Freddie Mac Sponsored Q Series securitizationsin May 2021•Completed $130M Preferred Offeringin September 2022•Completed Private Securitization of $1.2B Multifamily Loans in September 2022•Completed~$498M of Freddie Mac-sponsored Q-Series securitization in May/November 2022•Issued and Sold $158M Senior Credit Linked Notes linked to $1B pool of healthcare loans in March 2023•Completed a $304M securitization of 11 multi-family mortgage loans through a Freddie Mac-sponsored Q-Series transaction •Sold Branches of Farmers-Merchants Bank of Illinoisin January 2024•Common stock offering 2.4M shares with net proceeds $98M in May 2024•Completed$325M of Freddie Mac Sponsored Q Series securitizationin April 2024•Completed Private Securitization of $629M Healthcare Loans in September 2024•Completed $230M Preferred Offering in November 2024.•Executed $1.7Bin two credit default swaps in 202419902002200920142017201820192021202220232024History of Merchants Bank of IndianaMerchants History Driven by a Strong Underlying Culture and Commitment to Firm Values•Completed three securitizations totaling $783M of 24 MF mortgage loans through Freddie Mac-sponsored Q-Series transactions•Executed $1.4Bin two credit default swap transactions in 20252025 20 •Merchants Capital Surpasses $2.8B in LIHTC Equity Raised since inception
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Recent Awards and Accolades 21 Top-Performing Bank#2 in 2024 ranking of top banks $10–$50 billion in assetsTop-Performing U.S. Public Bank#10 in 2023 and 2024 and #1 in 2022 ranking of U.S public Banks with more than $10 billion in assets Small-Cap All StarsClass of 2023 100 Fastest Growing Companies2023 ranking Top National SBA LenderSBA.gov 2023 rankingFINANCIALSERVICESINDUSTRY #4 Affordable Housing Lender2024 ranking Community Bankers CupRaymond James 2019 Superior Rating 16 ConsecutiveYearsIDC Financial Publishing since 2009 Best Regional U.S. Banks2023 ranking Top 10 Correspondent LenderScotsman Guide2023 ranking #2 Warehouse Lender Inside Mortgage Finance 2024 ranking
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MIKE LARSONEVP, IRE, Chief Investment Officer24 years in industry1 year with companyPHIL DAUBENMIREEVP, Chief Credit Officer20 years in industry20 years with companyARIANA MEISERSVP, Market President15 years in industry8 years with company Overview of the Management Team 22 MICHAEL PETRIEChairman46 years in industry35 years with companyRANDALL ROGERSVice Chairman56 years in industry35 years with companyMICHAEL DUNLAPPresident & CEO33 years in industry16 years with companySCOTT EVANSMarket President & COO36 years in industry21 years with companyMICHAEL DURYPresident & CEO, Merchants Capital18 years in industry18 years with companySEAN SIEVERSEVP & CFO26 years in industry1 year with company TERRY OZNICKEVP, General Counsel16 years in industry9 years with company SHAUN WENDELSVP, Finance, Treasury13 years in industry6 months with companyCHERYL LIKENSEVP, Chief Risk Officer31 years in industry4 years with company MARTIN SCHROETEREVP, Warehouse Lending36 years in industry6 years with company Experienced Leadership with Strong Industry Experience KEVIN LANGFORDEVP, Chief Administrative Officer34 years in industry8 years with company JERRY F. KOORSPresident, Merchants Mortgage33 years in industry11 years with company
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Name / Role Age Director Since Committee Chair BiographyMichael Petrie, Chairman of the Board71 2006Mr. 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 through December 2019, Mr. Petrie served as Chief Executive Officer of Merchants Bank, and served as President of the Company’s subsidiary Merchants Capital Corp from when it was founded in August 1990 until January 2018. In 2005, Petrie served as Chairman of the Mortgage Banker's Association Board of Directors.Randall RogersVice Chairman of the Board79 2006Mr. Rogers has served as a director of the Company and the Vice Chairman of Merchants Bank since October 2006 and March 2002, respectively, and Vice Chairman of the Company since January 1, 2018. Prior to January 1, 2018, Mr. Rogers also served as President and Chief Operating Officer of the Company and Chairman of Merchants Capital since it was founded in August 1990.Michael Dunlap 59 2014Mr. Dunlap has served as a director of the Company since May 2014. Mr. Dunlap became President and Chief Operating Officer of the Company in January 2018 and became Chief Executive Officer of Merchants Bank in January 2020. Prior to becoming Chief Executive Officer of Merchants Bank, Mr. Dunlap had been President and Co-Chief Operating Officer since May 2014. Mr. Dunlap has over 30 years of mortgage banking experience and joined Merchants Bank as Sr. VP of Mortgage Banking in 2009.Scott Evans 60 2006Mr. Evans has served as a director of the Company and President of the Lynn/Richmond market and Chief Operating Officer of Merchants Bank since 2004 and was Chairman of the Board of Directors of our Illinois bank subsidiary, Farmers-Merchants Bank of Illinois, from 2017 until its sale in 2024. Mr. Evans has over 34 years of community banking and related experience.Sue Anne Gilroy 76 2017Ms. Gilroy has served as a director of the Company since June 2017. Ms. Gilroy served as Executive Director and Vice President of Development for the St. Vincent Foundation, Indianapolis, Indiana from 2005 until 2019. Ms. Gilroy has held a number of offices in public service and served as Indiana's first female Secretary of State from 1994 - 2002. In addition, Ms. Gilroy also serves on the boards of directors of the University of Indianapolis and as trustee of the Endowment Fund Board of Tabernacle Presbyterian Church.Andrew Juster 72 2019 Audit CommitteeMr. Juster has served as a director of the Company since May 2019. From 1989 through 2018, Mr. Juster was employed by Simon Property Group, Inc., a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations, an S&P 100 company, and one of largest publicly traded real estate investment trusts in the United States. He served as EVP and CFO of Simon Properties from 2015 - 2018, and held roles as Executive Vice President and Treasurer from 2008 - 2014.Patrick O'Brien 67 2013 Compensation CommitteeMr. O’Brien has served as a director of the Company since November 2013. Since 1990, Mr. O’Brien has been President of O’Brien Toyota, a Toyota dealership serving the Indianapolis, Indiana area. Mr. O’Brien is also the owner and managing member of K&P Property Development, LLC, a real estate holding company, and co-owner and managing member of Pinheads, a family entertainment center in Fishers, Indiana. Anne Sellers 64 2017Nominating / Corporate Governance CommitteeMs. Sellers has served as a director of the Company since June 2017. Ms. Sellers is an audio/visual technology consultant and, from 2006 through 2019, Ms. Sellers served as Managing Principal and majority owner of Sensory Technologies, LLC, an Indianapolis-based company that specializes in audiovisual integration technologies, including videoconferencing system design, web streaming, and sound / acoustic design.Tamika Catchings 45 2022Ms. Catchings has served as a director of the Company since May 2022. From 2001 to 2016, Ms. Catchings played for the Indiana Fever, Indianapolis’s WNBA team. Ms. Catchings is a 4-time Olympic gold medalist, 10-time WNBA All-Star, 5-time Defensive Player of the Year, and a WNBA Champion. Additionally, Ms. Catchings is known for her off-court professionalism and was a 3-time recipient of the Kim Perrot Sportsmanship award. From 2017 - 2022, served as VP of Basketball Operations + General Manager of the Indiana Fever.Thomas Dinwiddie 77 2022Mr. Dinwiddie has served as a director of the Company since May 2022. Mr. Dinwiddie is a partner at the law firm of Dinsmore & Shohl, LLP. Mr. Dinwiddie has been a director of Merchants Bank since 2002. Additionally, Mr. Dinwiddie has represented the Indiana Mortgage Bankers Association for more than 40 years and was the first recipient of their Distinguished Service Award.David Shane 77 2013 Risk CommitteeMr. Shane has served as a director of the Company since November 2013. Mr. Shane previously served as Vice-President and Executive Vice-President (from 1997 to 2006) and President and Chief Executive Officer and member of the board of managers (from 2007 until his retirement in 2013) of LDI Ltd., LLC, an Indianapolis-based diversified holding company that focuses on funding and operating middle-market companies. Overview of the Board of Directors 23 Strong Governance Structure
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2025 2024 2023 2022 Change Since 2022Key Items ($M)Total Assets 19,449 18,806 16,953 12,615 54%Loans HFI 11,035 10,438 10,200 7,471 48%Loans HFS 3,873 3,772 3,145 2,911 33%Total Deposits 13,041 11,920 14,061 10,071 29%Tangible Common Equity 1,721 1,563 1,185 943 83%Net Income 219 320 279 220 - Profitability (%)ROAA 1.16% 1.79% 1.85% 1.99% (83 bps)ROATCE 10.49% 20.16% 22.92% 22.50% (1201 bps)Net Interest Margin 2.86% 3.03% 3.06% 2.97% (11 bps)Fee-based Revenue / Total Revenue 29% 23% 22% 29% (32 bps)Efficiency Ratio 44.0% 33.4% 31.0% 30.6% 1340 bpsYield on Loans and Loans HFS 6.87% 7.85% 7.73% 4.85% 202 bpsCost of Deposits 3.92% 4.75% 4.55% 1.65% 227 bpsBalance Sheet and Capital Ratios (%)Loans and Loans HFS / Deposits 114.3% 119.2% 94.9% 103.1% 1120 bpsTCE / TA 8.9% 8.3% 7.0% 7.5% 140 bpsCET1 Ratio 9.9% 9.3% 7.8% 7.7% 220 bpsTotal Capital Ratio 13.6% 13.9% 11.6% 12.2% 140 bpsAsset Quality (%)Non-accrual loans / Loans and Loans HFS 1.33% 1.97% 0.55% 0.26% 107 bpsNPAs / Assets 1.33% 1.53% 0.48% 0.21% 112 bpsReserves / Loans Receivable 0.75% 0.81% 0.70% 0.59% 16 bpsNCOs / Avg Loans (Annualized) 0.85% 0.07% 0.08% 0.01% 84 bps As of December 31,Financial Position: Key Highlights 24 Strong Financial Performance(1) Notes:1. May not reconcile to difference based on 12/31/2025 and 12/31/2022 data presented on the slide due to rounding
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($M, unless otherwise stated)2025 2024 2023 2022 AssetsCash and Cash Equivalents 212 477 584 226 Securities Purchased Under Agreements to Resell 2 2 3 3 Mortgage Loans In Process Of Securitization 620 428 111 154 Securities Available for Sale 865 980 1,114 323 Securities Held To Maturity 1,544 1,665 1,204 1,119 Federal Home Loan Bank (FHLB) Stock and Other Equity Securities 228 218 49 39 Loans Held for Sale 3,873 3,772 3,145 2,911 Loans Receivable, Net Of Allowance for Credit Losses on Loans 10,951 10,354 10,128 7,427 Premises and Equipment, Net 74 59 42 35 Servicing Rights 217 190 158 146 Interest Receivable 82 83 91 56 Goodwill 8 8 16 16 Other Real Estate Owned 60 8 - - Other Assets and Receivables 713 563 307 159 Total Assets 19,449 18,806 16,953 12,615 Liabilities And Equity$0.0Total Deposits 13,041 11,920 14,061 10,071 Borrowings 3,843 4,386 964 930 Deferred and Current Tax Liabilities 34 25 20 20 Other Liabilities 251 231 206 134 Total Liabilities 17,168 16,562 15,251 11,155 0 0 0 0 Common Equity 243 240 140 138 Preferred Equity 551 672 500 500 Retained Earnings 1,486 1,331 1,064 833 Accumulated Other Comprehensive Loss - - (2) (11)Total Shareholders' Equity 2,281 2,243 1,701 1,460 Total Liabilities And Shareholders' Equity 19,449 18,806 16,953 12,615 As of December 31, Notes:1. Totals and sub-totals may not foot due to rounding Financial Position: Balance Sheet(1) 25•Short duration AFS securities portfolio
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($M, unless otherwise stated)2025 2024 2023 2022Income StatementInterest Income 1,201 1,303 1,078 481Interest Expense 684 780 630 162Net Interest Income 517 523 448 319Provision for Credit Losses 118 24 40 17NII After Provision for Credit Losses 399 498 408 301Gain on Sale of Loans 85 62 48 64Loan Servicing Fees, Net 22 44 26 30Syndication And Asset Management Fees 24 20 12 9Other Income 33 22 29 22Non-Interest Income 164 148 115 126Net Revenue 564 646 523 427Salaries and Employee Benefits 167 131 108 89Deposit Insurance Expense 32 26 14 3Other Expenses 102 67 53 44Non-Interest Expense 300 224 175 136Pre-Tax Income 264 423 348 291Provision for Income Taxes 45 102 69 71Net Income 219 320 279 220 Year Ended December 31, Notes:1. Totals and sub-totals may not foot due to rounding Financial Position: Income Statement (1) 26 Upside Potential As Interest Rates Fall. In 2021, GOS was $111M.
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Multi-Family Mortgage Banking18%Mortgage Warehousing44%Banking56%27 (%)Net Income by Business Line (4)(%) Business Segments: Financial OverviewMerchants Operates a Balanced Mix of BusinessesNet Revenue by Business Line(2)(3)(4)(1) Multi-Family Mortgage Banking31%Mortgage Warehousing26%Banking43%($M, unless otherwise stated)Multi-Family Mortgage BankingMortgage Warehousing Banking Other TotalConsolidated FinancialsInterest Income 5 414 768 15 1,201Interest Expense - 274 413 (3) 684Net Interest Income 5 140 355 18 517Provision for Loan Losses - 3 115 - 118NII After Provision for Credit Losses 5 137 240 18 399Non-Interest Income 169 13 1 (18) 164Net Revenue (2)174 149 241 0 564Net Revenue Contribution 31% 26% 43% 0% 100%Noninterest Expense 122 33 94 51 300Income Before Income Taxes 52 116 146 (51) 264Income Taxes 12 19 24 (11) 45Net Income 40 97 122 (40) 219Net Income Contribution 18% 44% 56% (18%) 100%Total Assets 526 7,252 11,307 363 19,449 Year Ended December 31, 2025 Notes:1. Totals and sub-totals may not foot due to rounding2. Net revenues equal to net interest income plus noninterest income, less provision for loan losses3. Total may not add to 100% due to rounding4. Total does not add to 100% since “Other Revenue” is excluded from pie
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Business Segments: Merchants Capital Overview 28 Multi-family segment produced 31% of Merchants total net revenues(1)in 2025Nationally ranked lender to developers of multi-family residential and healthcare properties, specializing in government agency (FHA, Fannie Mae, and Freddie Mac) permanent loan products that are typically sold as mortgage-backed securities within 30 days; Utilize an originate to sell model, with short durationsDifferentiated focus on need-based healthcare and the Affordable/Workforce Housing niche, not luxuryOffer customers the ability to pair affordable debt with tax credit equity through Merchants Capital Investments, a nationally ranked, fully integrated tax credit equity syndicator began in 2020 that has closed $2.8B in equity Originated or acquired loans totalled $6B in 2023, $6B in 2024 and $6.5B in 2025As of December 31, 2025, its servicing portfolio, including those serviced for banks and investors, was approximately $40B Current staffing is well-positioned for future growth with strong pipelineSignificant opportunities in declining interest rate environment Top 10 Correspondent Lender.Scotsman Guide2023 ranking #4 Affordable Housing Lender2024 ranking Notes:1. Net revenues includes net interest income after allowance for credit losses plus noninterest income
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Business Segments: Warehouse Overview Warehouse segment produced 26% of Merchants total net revenues in 2025(1)Merchants Bank saw an opportunity to start its warehouse lending business in 2009 and has grown to fund volumes of $33B in 2022, $33B in 2023, $46B in 2024 and $66B in 2025•Segment volume increased 46% for the year ended December 31, 2025, compared to 2024, versus the industry average of only 22%Growth opportunities in all product lines, multi-family, and refinancing cycles Highly efficient business in three locations with just 38 FTEs Warehouse and commercial lender to independent residential and multi-family mortgage bankersCustomers nationwide and many of the top 10 mortgage banks in the US 29 #2 Warehouse Lender. Inside Mortgage Finance 2024 ranking Notes:1. Net revenues includes net interest income after allowance for credit losses plus noninterest income
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Business Segments: Warehouse Overview Full product offering - warehouse lines to fund loans, lines of credit collateralized by mortgage servicing rights, and operating lines of credit •Customers fund their loans under warehouse agreements, use lines of credit, and provide deposits from their servicing operations•Having relationships on both sides of balance sheet enhances retention and reduces liquidity risk Operating lines of credit collateralized by mortgage servicing rights leads to growth opportunities in loans and corporate/custodial deposits 30 #2 Warehouse Lender. Inside Mortgage Finance 2024 ranking
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Business Segments: Banking Overview (1 of 2)Nationally ranked lender to developers of multi-family residential and healthcare properties, offering bridge loan products underwritten to government agencies’ guidelines (FHA, Fannie Mae, and Freddie Mac)All loans underwritten to federal agency guidelines for ultimate conversion to Merchants Capital permanent financingLoans held in portfolio until securitized, paid-off, or converted to permanent financing Holds loans comprised of multi-family and healthcare bridge loans originated by Merchants Capital. Participations are used as a source of liquidity Capital Markets team provides Merchants with debt funds and other avenues to securitize or de-risk Merchants’ balance sheet •Conducted a series of Freddie Mac-sponsored Q-Series, Credit Linked Notes, and private loan securitization transactions •Securitizations free up capital, providing capacity to originate more loans and increase future noninterest income •Provides avenues for continuous noninterest income - gain on sale of loans, asset management and loan servicing fees31 Bridge Loans / Multi-family SecuritizationsGenerated 43% of Total Net Revenues in 2025(1)1 Top National SBA Lender.SBA 2023 ranking Notes:1. Net revenues includes net interest income after allowance for credit losses plus noninterest income
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Business Segments: Banking Overview (2 of 2)Full-service retail and correspondent single-family mortgage origination and servicing platform since it began in 2013Profitable every year across all interest rate cyclesAuthorized agency for Fannie Mae, Freddie Mac, FHA, and USDA since 2017Offers attractive product portfolio, including All-in-One©first-lien HELOC mortgages to high-net-worth borrowers•Floating rate mortgages that are swept daily against checking account•AIO securitizations lead to lower risk, higher returnBegan offering Jumbo correspondent products in June 202532 Merchants MortgageGenerated 43% of Total Net Revenues in 2025(1)2 Top National SBA Lender.SBA 2023 ranking Traditional Banking3Traditional community banking covering Indianapolis metro, and Richmond, INOffers Business Banking and C&I Lending; minimal consumer loans or investment in CRENational footprint; Regional SBA lending Competitive service through online and mobileBranch light model allows for higher cost of depositsNotes:1. Net revenues includes net interest income after allowance for credit losses plus noninterest income
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At December 31,(Dollars in thousands) 2025 2024 2023 2022 2021 2020Tangible common shareholders' equity: Shareholders' equity per GAAP 2,280,759$ 2,243,310$ 1,701,084$ 1,459,739$ 1,155,409$ 810,621$ Less: goodwill & intangibles (8,051) (8,073) (16,587) (17,031) (17,552) (18,128)Tangible shareholders' equity 2,272,708 2,235,237 1,684,497 1,442,708 1,137,857 792,493Less: preferred stock (551,291) (672,135) (499,608) (499,608) (362,149) (212,646)Tangible common shareholders' equity 1,721,417$ 1,563,102$ 1,184,889$ 943,100$ 775,708$ 579,847$ Average tangible common shareholders' equity:Average shareholders' equity per GAAP 2,213,449$ 1,900,130$ 1,583,485$ 1,276,443$ 1,028,834$ 719,630$ Less: average goodwill & intangibles (8,062) (8,697) (16,801) (17,293) (17,841) (18,899)Less: average preferred stock (551,622) (484,391) (499,608) (398,182) (325,904) (212,646)Average tangible common shareholders' equity 1,653,765$ 1,407,042$ 1,067,076$ 860,968$ 685,089$ 488,085$ Tangible assets:Assets per GAAP 19,448,943$ 18,805,732$ 16,952,516$ 12,615,227$ 11,278,638$ 9,645,375$ Less: goodwill & intangibles (8,051) (8,073) (16,587) (17,031) (17,552) (18,128)Tangible assets 19,440,892$ 18,797,659$ 16,935,929$ 12,598,196$ 11,261,086$ 9,627,247$ Ending Common Shares45,893,172 45,767,166 43,242,928 43,113,127 43,180,079 43,120,625Tangible book value per common share 37.51$ 34.15$ 27.40$ 21.88$ 17.96$ 13.45$ Return on average tangible common equity 10.49% 20.16% 22.92% 22.50% 30.10% 34.02%Tangible common equity to tangible assets 8.9% 8.3% 7.0% 7.5% 6.9% 6.0% At December 31, Notes:1. Totals and sub-totals may not foot due to rounding Non-GAAP Reconciliation(1) 33