Merchants Bancorp
- Open
- 52.15
- Day high
- 53.40
- Day low
- 51.84
- Prev close
- 51.74
- Volume
- 262K
- Mkt cap
- $2.4B
- P/E (TTM)
- 10.6
- EPS (TTM)
- $4.98
- P/B
- 1.0
- P/S
- 1.8
- Yield
- 0.80%
- Per share
- $0.42
- ▼Insiders net selling -$994K over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions accumulating (13F)
Merchants Bancorp (MBIN) is a Financial Services company listed on NASDAQ. The stock is up 64% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4). Drillr has 1 published research article covering MBIN.
Merchants Bancorp (MBIN) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MBIN earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 28, 2026 | $1.22 | $1.48 | +21.3% | $182M | +1.8% |
| Apr 28, 2026 | $1.16 | $1.25 | +7.8% | $175M | +0.5% |
| Jan 28, 2026 | $0.94 | $1.28 | +36.2% | $185M | +8.5% |
| Jan 28, 2025 | $1.30 | $1.85 | +42.3% | $193M | +21.6% |
| Jan 29, 2024 | $1.44 | $1.58 | +9.7% | $158M | +11.0% |
| Oct 26, 2023 | $1.32 | $1.68 | +27.6% | $152M | +11.9% |
| Jul 27, 2023 | $1.22 | $1.31 | +7.0% | $135M | +8.2% |
| Apr 27, 2023 | $1.12 | $1.07 | -4.7% | $114M | -3.4% |
| Mar 16, 2023 | — | $1.32 | — | $203M | — |
| Oct 27, 2022 | $1.22 | $1.22 | +0.0% | $113M | -1.6% |
| Jul 28, 2022 | $0.90 | $1.11 | +23.3% | $110M | +17.9% |
| Apr 28, 2022 | $1.03 | $1.02 | -0.9% | $99M | -3.2% |
MBIN insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 24, 2026 | Dinwiddie Thomasdirector | Grant | 328 | $53.50 |
| Aug 24, 2026 | Shaffer Mark E.director | Grant | 328 | $53.50 |
| Aug 24, 2026 | Sellers Anne E.director | Grant | 328 | $53.50 |
| Aug 24, 2026 | Catchings Tamikadirector | Grant | 328 | $53.50 |
| Aug 24, 2026 | JUSTER ANDREWdirector | Grant | 328 | $53.50 |
| Aug 24, 2026 | Curless Michael Sdirector | Grant | 328 | $53.50 |
| Aug 24, 2026 | O'Brien Patrick D.director | Grant | 328 | $53.50 |
| Jul 31, 2026 | Kaercher Julia L.director | Sell | 9,000 | $55.20 |
| Jul 31, 2026 | Petrie Michael F.director, 10 percent owner, officer: Chairman and CEO | Sell | 9,000 | $55.20 |
| May 26, 2026 | Catchings Tamikadirector | Grant | 381 | $46.03 |
| May 26, 2026 | JUSTER ANDREWdirector | Grant | 381 | $46.03 |
| May 26, 2026 | Curless Michael Sdirector | Grant | 381 | $46.03 |
| May 26, 2026 | Shaffer Mark E.director | Grant | 381 | $46.03 |
| May 26, 2026 | Sellers Anne E.director | Grant | 381 | $46.03 |
| May 26, 2026 | O'Brien Patrick D.director | Grant | 381 | $46.03 |
Source: MBIN SEC Form 4 filings, latest Aug 24, 2026. For informational purposes only — not investment advice.
See the full MBIN insider & 13F page →Merchants Bancorp company profile
Overview
Merchants Bancorp (NASDAQ:MBIN) is a diversified financial services holding company founded in 1990 and headquartered in Carmel, Indiana. The company went public in October 2017 and has evolved from a traditional community bank into a specialized financial institution with three distinct business segments. Merchants Bancorp operates through its subsidiary banks and focuses primarily on multi-family mortgage banking, mortgage warehousing services, and traditional banking operations, serving customers across the United States with particular expertise in government-sponsored enterprise lending and specialized real estate financing.
Business
Merchants Bancorp operates in the regional banking sector but distinguishes itself through three specialized business segments that generate distinct revenue streams. The company's diversified approach allows it to serve different market niches within the broader financial services industry. The Multi-family Mortgage Banking segment represents the company's core specialization, focusing on originating and servicing government-sponsored mortgages for multi-family residential properties and healthcare facilities. This segment works with government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac to provide financing for apartment complexes, senior living facilities, and healthcare properties. The company offers customized loan products specifically designed for independent living communities, assisted living facilities, memory care centers, and skilled nursing facilities. Additionally, this segment operates as a syndicator of low-income housing tax credit (LIHTC) programs and manages debt funds, which involves structuring complex tax-advantaged investments for affordable housing development. The Mortgage Warehousing segment provides short-term funding solutions to non-depository financial institutions, essentially acting as a wholesale lender. This segment funds agency-eligible residential loans during the period between loan origination and their eventual sale in the secondary market. Mortgage warehousing is a critical service for mortgage originators who need immediate capital to fund loans while they prepare loan packages for sale to investors or government agencies. The segment also provides commercial loans to other financial institutions that lack traditional deposit funding sources. The Banking segment operates as a more traditional regional bank, offering comprehensive financial products and services to consumers and businesses. This includes various deposit products such as checking accounts, savings accounts, and certificates of deposit, which provide the funding base for the bank's lending activities. The lending portfolio encompasses multi-family construction and bridge loans, commercial real estate financing, commercial and industrial loans, agricultural lending, residential mortgages, and consumer loans. The segment also provides specialized services including single-family mortgage lending, construction and bridge financing, lot financing for real estate development, first-lien home equity lines of credit, and Small Business Administration (SBA) lending products. Revenue distribution across segments fluctuates based on market conditions and loan origination volumes, with the multi-family mortgage banking typically representing the largest portion of total revenue, followed by the banking segment's net interest income and the mortgage warehousing segment's fee-based income.
Revenue model
Merchants Bancorp generates revenue through multiple complementary business models that leverage different aspects of the lending and banking ecosystem. The company's diversified approach provides multiple income streams that can partially offset cyclical downturns in any single segment. The Multi-family Mortgage Banking segment operates on a fee-based model where the company earns origination fees, servicing fees, and gains on loan sales. When Merchants originates a multi-family or healthcare facility loan, it typically sells the loan to government-sponsored enterprises while retaining the servicing rights, generating immediate fee income from the sale and ongoing servicing revenue over the life of the loan. The company also earns fees from its role as a syndicator of low-income housing tax credit deals, where it structures and manages tax-advantaged investment vehicles for institutional investors seeking tax credits. The Mortgage Warehousing segment generates revenue primarily through net interest margin - the difference between the interest rate charged to borrowers and the company's cost of funds. This segment provides short-term financing to mortgage originators, earning interest income during the brief period between loan funding and loan sale. The business model requires significant capital but generates relatively predictable returns with lower credit risk since the loans are typically agency-eligible and held for short periods. The Banking segment operates on the traditional banking model of net interest margin, where the company pays interest to depositors and charges higher rates to borrowers. This segment also generates fee income from various banking services, including loan origination fees, account maintenance fees, and other ancillary banking services. The SBA lending component provides additional fee income through government-guaranteed loan programs. Several factors significantly impact the company's profitability margins. Interest rate environments directly affect net interest margins across all segments, with rising rates potentially benefiting the warehousing and banking segments but potentially reducing multi-family lending demand. Government policy changes regarding GSE lending programs, affordable housing tax credits, and SBA lending can substantially impact revenue streams. Real estate market conditions influence loan demand and credit quality across all segments. Competition from other specialty lenders, regional banks, and non-bank financial institutions affects pricing and market share. Regulatory changes in banking and mortgage lending can impact operational costs and permissible activities. The company's access to funding sources, including deposits and wholesale funding markets, affects its ability to grow and maintain competitive pricing.
Competitive moat
Merchants Bancorp operates in a moderately competitive financial services environment with several factors that provide some competitive advantages, though the company's moat is not exceptionally deep or wide. The company's primary competitive advantage lies in its specialized expertise and relationships in multi-family and healthcare facility lending. Merchants has developed deep knowledge of government-sponsored enterprise lending programs, affordable housing tax credit structures, and the regulatory requirements for multi-family properties. This specialization creates relationships with developers, property managers, and institutional investors that are difficult for generalist lenders to replicate quickly. The company's track record in originating and servicing these complex loan types provides credibility with GSEs and gives it preferred lender status in certain programs. The diversified business model provides some defensive characteristics, as downturns in one segment can potentially be offset by strength in others. The mortgage warehousing business provides relatively stable fee income during periods when origination volumes might be lower, while the traditional banking segment offers a stable deposit base and diversified lending portfolio. However, Merchants Bancorp faces significant competitive pressures that limit the strength of its moat. Large national banks have substantially greater resources and can compete aggressively on pricing when they choose to focus on multi-family lending. Non-bank specialty lenders, including real estate investment trusts (REITs) and private credit funds, can offer competitive terms without the regulatory constraints faced by banks. Technology-driven mortgage platforms are increasingly automating parts of the lending process, potentially reducing the value of traditional relationship-based lending. The company's regulatory environment presents both opportunities and threats. While banking regulations create barriers to entry for non-bank competitors in certain areas, they also impose capital requirements and operational constraints that can limit growth and profitability. Changes in GSE lending policies or affordable housing programs could significantly impact the company's core business segments. Overall, Merchants Bancorp has built a solid niche business with specialized expertise, but the moat is relatively narrow and faces ongoing competitive pressures from both traditional and non-traditional financial service providers.
Risks & safety
Merchants Bancorp presents a moderate margin of safety profile with some concerning liquidity characteristics but reasonable profitability metrics. • Liquidity and Solvency Concerns: The company shows negative free cash flow of -$854 million for FY 2024, primarily driven by loan origination activities and working capital needs in the mortgage banking business. Current ratio of 0.96 indicates potential short-term liquidity pressure, though this is somewhat typical for banks given their business model. • Debt and Leverage: Debt-to-equity ratio of 1.93 reflects significant leverage, which is normal for banking operations but indicates higher financial risk. The company maintains $477 million in cash and short-term investments as of Q4 2024. • Valuation Metrics: Price-to-earnings ratio of 5.1x and price-to-book ratio of 0.73x suggest the stock trades at a significant discount to book value and earnings, indicating potential value opportunity or market concerns about business quality. • Profitability: Return on equity of 14.3% for FY 2024 demonstrates strong profitability, though this has been volatile across quarters. Net income of $320 million on $1.45 billion revenue shows healthy profit margins. • Other Considerations: The company's business model involves significant interest rate risk and regulatory risk. Asset quality appears stable but could deteriorate in economic downturns. The specialized nature of the business provides some protection but also creates concentration risk.
Recent development
Based on the available financial data spanning 2022-2025, Merchants Bancorp has undergone significant strategic evolution and business expansion. The company has substantially grown its asset base from $12.6 billion in 2022 to $18.8 billion by 2024, representing nearly 50% growth over two years. This expansion reflects aggressive growth in the company's core multi-family mortgage banking operations and mortgage warehousing activities. The revenue profile shows the company's strategic focus on fee-based income generation, with total revenue increasing from $427 million in 2022 to $1.45 billion in 2024. This dramatic revenue growth demonstrates the company's success in scaling its mortgage banking operations and capturing market share in government-sponsored enterprise lending. The company appears to have benefited from favorable market conditions in multi-family lending and increased demand for affordable housing financing. However, the growth strategy has come with significant working capital requirements, as evidenced by consistently negative operating cash flows in recent years, including -$835 million in 2024. This reflects the capital-intensive nature of the mortgage banking business, where the company must fund loans before selling them in the secondary market. The company has managed this cash flow challenge through various funding sources, including deposits and wholesale funding arrangements. The financial metrics suggest Merchants has successfully maintained profitability during this growth phase, with return on equity remaining strong at 14.3% in 2024, though with some quarterly volatility. The company's ability to generate substantial net income while managing the cash flow requirements of its growth strategy indicates effective operational management and access to adequate funding sources.
MBIN company profile · for informational purposes only — not investment advice.
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