Merchants Bancorp (MBIN)

Merchants Bancorp's stock has been impacted by several events in the past six months. The Q1 2026 earnings report showed increased net income and EPS, but a drop in brokered deposits led to a stock price decrease. The company announced a dividend increase and a stock repurchase program. Q4 2025 results showed an increase in net income and fluctuations in core and brokered deposits. Q3 2025 results showed an increase in net income driven by higher net interest income.

Merchants Bancorp experiences expected seasonal fluctuations in its core deposits. The company's operating cash flow was negative in Q1 2026 due to strong loan origination and sale flows, a pattern typical for an active mortgage and multifamily lender, indicating that loan activity can also be seasonal and dependent on market demand and secondary-market liquidity.

Merchants Bancorp operates as a diversified bank holding company in the United States, focusing on multi-family mortgage banking, mortgage warehousing, and banking. The Multi-family Mortgage Banking segment originates and services government-sponsored mortgages, including bridge financing and construction lending. The Mortgage Warehousing segment funds agency-eligible residential and commercial loans. The Banking segment offers a range of financial products and services to consumers and businesses. As of March 31, 2026, Merchants Bancorp reported $20.3 billion in assets and $13.0 billion in deposits.

Merchants Bancorp is headquartered in Carmel, Indiana, with retail banking operations primarily in central Indiana and Richmond. The company has expanded its national reach through online and mobile banking. Its correspondent mortgage banking, multi-family mortgage banking, and mortgage warehousing businesses operate nationally, while SBA lending is regional with offices in four states.

Merchants Bancorp's brand reputation has been impacted by an investigation launched by The Schall Law Firm in May 2026. The investigation focuses on whether the company issued false or misleading statements and failed to disclose critical information to investors, specifically concerning its deposit growth. This stems from the Q1 2026 financial results, which revealed a nearly 50% year-over-year drop in brokered deposits, contradicting earlier claims of strong deposit growth, leading to a stock price decline and raising concerns about the company's financial health and investor confidence.

Merchants Bancorp is owned by a mix of institutional shareholders and insiders. As of May 1, 2026, 154 institutional owners and shareholders hold a total of 42,991,652 shares. Major institutional owners include Elser Financial Planning, Inc., BlackRock, Inc., and Dimensional Fund Advisors Lp. Significant individual owners include Jody J. Petrie, Michael F. Petrie, and Randall D. Rogers. Insiders collectively own 72.90% of Merchants Bancorp, with more insider selling than buying over the last 12 months.