Merchants Bancorp (MBIN)

Price$52.68Cached quoteAs of 2026-09-05 07:47 UTC

AI: Fair-priced

Price checkThe shares look fairly valued at about 1.3 times net assets and eleven times recent earnings.

Using the observed market price, Merchants trades at about 1.3 times June tangible book value per common share of $39.93. Tangible book means shareholders’ equity after goodwill and other hard-to-sell accounting assets. Last-four-quarter earnings per share total about $4.98, implying roughly 10.6 times recent earnings; the latest quarter alone would annualize near $5.92, but that assumes unusually low credit costs persist. Return on equity was about 11.7%. That combination supports fair-priced, not a clear bargain or excessive valuation.

Big pictureProfits have recovered, but the long record shows meaningful swings tied to credit and housing activity.

Revenue rose from $351.6 million in 2020 to $681.4 million in 2025, but net income rose less smoothly: $180.5 million, a $320.4 million peak in 2024, then $218.8 million in 2025. First-half 2026 net income reached $146.1 million versus $96.2 million a year earlier, showing recovery. However, operating cash flow was negative $341.2 million in 2025 and negative about $384 million in the first half of 2026. For a bank, this mostly reflects loan origination, sales, deposits, and borrowings moving through cash—not ordinary free cash flow—so earnings and credit results matter more.

Business strengthStrong deposits and improving credit reduce near-term danger, although the business still carries heavy borrowing.

At June 30, 2026, assets were $21.2 billion and deposits $14.3 billion. Core deposits were $13.0 billion, or 91% of total deposits, while reported liquidity was $13.0 billion, including $5.5 billion of unused borrowing capacity. Nonperforming loans fell 17% quarter over quarter to $205.6 million, and criticized loans fell 12% to $444.7 million; the total capital ratio was 12.5%. These are meaningful buffers. Still, the net interest margin slipped to 2.81% from 2.92% in the prior quarter, showing growth can dilute profitability.

What could change the storyUpside depends on repeating recent earnings; renewed apartment-loan losses or funding costs would quickly weaken the case.

The upside case is that diversified multifamily, warehouse, banking, servicing, and tax-credit businesses sustain recent earnings; at that level, today’s multiple looks modest and book value can compound. The bear case is renewed multifamily stress: second-quarter charge-offs were $16.5 million, with nearly 95% tied to two relationships, while reported debt was $4.30 billion against $314.7 million cash. Shares rose only about 0.4% from December 2024 to June 2026; buybacks fell from $177.0 million in 2024 to zero in 2025, despite a $0.11 quarterly common dividend. The thesis needs improving credit and steady funding.

AI: News

Second-quarter reboundSecond-quarter profit more than doubled as credit costs fell, giving investors evidence that earlier stress may be easing.

On July 28, Merchants reported second-quarter net income of $78.3 million and earnings per share of $1.48, up 106% and 147% year over year. The provision for credit losses fell 83% to $9.2 million, while loans rose 12% from year-end to $12.3 billion. Nonperforming loans declined 17% quarter over quarter. This improves near-term earnings expectations, but the rebound was driven heavily by lower credit costs, and the margin eased to 2.81%; the durability of the recovery remains unproven.

Tax-credit fund closedA new $160 million housing fund showed continued demand for Merchants’ fee-generating capital platform.

On July 20, Merchants Capital closed a $160 million multi-investor tax-credit fund with 10 institutional investors, supporting more than 1,400 affordable homes. The platform said cumulative equity raised exceeded $3 billion across 31 states and more than 24,600 housing units. That supports the company’s fee-generating syndication franchise and suggests continuing investor demand. The release did not disclose incremental revenue, profit, or return on capital, so the valuation benefit is an inference rather than a reported earnings change.

Funding concerns investigatedA securities-law investigation highlighted funding concerns that could raise borrowing costs and pressure future profit.

On May 13, plaintiff-side law firm Levi & Korsinsky announced an investigation after saying the stock fell 9.3% when first-quarter disclosures showed brokered deposits had declined roughly 50% year over year and funding costs were rising. The announcement is an allegation, not a finding of wrongdoing, and no resolution is reported here. The underlying issue matters: by June 30, brokered deposits were $1.3 billion, down 26% from year-end, while core deposits were 91% of total deposits. Funding mix and cost remain key valuation tests.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	$681.4M	$670.7M	$562.7M	$444.5M	$435.3M	$351.6M	$169.4M	$139.6M	$114.3M	$82.5M	$69.1M
Operating expenses	$299.9M	$223.8M	$174.6M	$136.1M	$125.4M	$96.4M	$63.3M	$50.9M	$34.6M	$26.7M	$20.9M
Net income	$218.8M	$320.4M	$279.2M	$219.7M	$227.1M	$180.5M	$77.3M	$62.9M	$54.7M	$33.1M	$28.4M
Net profit margin	32.10%	47.77%	49.62%	49.43%	52.17%	51.34%	45.65%	45.05%	47.85%	40.17%	41.10%
Basic EPSper basic share	$3.78	$6.32	$5.66	$4.49	$4.78	$3.85	$1.58	$0.92	$1.01	$0.65	$0.60
Diluted EPSper diluted share	$3.78	$6.30	$5.64	$4.47	$4.76	$3.85	$1.58	$0.92	$1.01	$0.65	$0.60

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of MBIN
Holder	Shares held
Elser Financial Planning, Inc	26.81M
Petrie Michael F.	12.57M
BlackRock, Inc.	4.11M
Rogers Randall D. Jr.	3.78M
Rogers Randall D.	2.74M
DIMENSIONAL FUND ADVISORS LP	1.83M
STATE STREET CORP	1.07M
NOMURA ASSET MANAGEMENT INTERNATIONAL INC.	1.04M
VANGUARD CAPITAL MANAGEMENT LLC	1.02M
AMERICAN CENTURY COMPANIES INC	837.05K
Kaercher Julia L.	827.18K
Doma Perpetual Capital Management LLC	810.08K
GEODE CAPITAL MANAGEMENT, LLC	740.33K
ROYCE & ASSOCIATES LP	527.05K
VANGUARD PORTFOLIO MANAGEMENT LLC	488.22K
MORGAN STANLEY	308.78K
NORTHERN TRUST CORP	301.8K
HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC	298.44K
BANC FUNDS CO LLC	285.06K
BASSWOOD CAPITAL MANAGEMENT, L.L.C.	273.75K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys21$4.25M disclosed value

Sells (SEC code S)41$16.86M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 6, 2026Form 4	Petrie Michael F.Chairman and CEO	SellCommon Stock	8.3K	$46.86	$390.5K	1.86M
May 5, 2026Form 4	Petrie Michael F.Chairman and CEO	SellCommon Stock · indirect	10.7K	$46.75	$500.0K	736.0K
May 5, 2026Form 4	Petrie Michael F.Chairman and CEO	SellCommon Stock	20.0K	$46.75	$935.0K	1.87M
Feb 26, 2026Form 4	Petrie Michael F.Chairman and CEO	SellCommon Stock	15.0K	$44.05	$660.8K	1.89M
Feb 26, 2026Form 4	Petrie Michael F.Chairman and CEO	SellSeries C Depositary Shares	13.9K	$20.25	$280.9K	3.0K

Review ownership filings at SEC.gov ↗

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Merchants Bancorp (MBIN)

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