Merchants Bancorp Depositary Shares Each Representing a 1/40thInterest in a Share of 7.25% Fixed Rate Series E Non-CumulativePerpetual Preferred Stock without par value (MBINL)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at MBINL first as a fixed-income claim on a regional bank, not as a common stock. At the 2026-10-26 close of $22.98, FairStock shows an 8.29% dividend yield on the 7.25% Series E non-cumulative perpetual preferred. The issuer's FairStock P/B is 0.57 and ROE is 11.73%, so the common equity is not richly priced and returns are respectable, but this is a cyclical, 735-employee bank, not a wide-moat franchise. Filed results are uneven: in fiscal year 2023, the year ended 2023-12-31, net income was $279.2M and diluted EPS $5.64; in fiscal year 2024 it was $320.4M and $6.30; in fiscal year 2025 it fell to $218.8M and $3.78. More recently, in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $78.3M and diluted EPS $1.48, versus $38.0M and $0.60 in fiscal Q2 2025, and fiscal Q1 2026 net income was $67.7M with EPS $1.25. The rebound is real but unproven. FairStock's Lynch category is SLOW GROWER because profit grew 3.9% a year over five years, and the supplied growth metrics are negative. The Piotroski F-score is 5/9 and FairStock Score is 44/100. The critical gap is bank-specific: CET1, NIM, charge-offs and reserve coverage are not in the data, so I cannot verify credit strength. For a non-cumulative preferred, that matters. Valuation offers a margin, but the dividend is only as safe as the bank's capital and asset quality.

In plain English: Merchants Bancorp is a regional bank with mortgage and multi-family housing lending businesses. Annual profit fell, but the latest quarter was much stronger than a year earlier, and the bank's profit compared with its shareholder money is moderate. The preferred shares pay a fixed 7.25% dividend and yield about 8.3% at the stated price; the price looks below the bank's accounting book value, but these dividends are not guaranteed and can be skipped.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer