Merchants Bancorp Depositary Shares Each Representing a 1/40th Interest in a Share of 8.25% Fixed-Rate Reset Series D Non-Cumulative Perpetual Preferred Stock (MBINM)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

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

I look at this as a preferred claim on Merchants Bancorp, not as a common stock. The bank operates in multifamily mortgage banking, mortgage warehousing, and banking—a business I can roughly understand, but one that depends on credit and funding confidence. The security pays 8.25% and yielded 8.36% at the 2026-10-13 close of $24.67, close to its $25 par. The quarterly record is mixed but recent numbers improved: in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $78.3 million and diluted EPS $1.48, versus $38.0 million and $0.60 in fiscal Q2 2025. For FY2025, net income was $218.8 million and diluted EPS $3.78, down from $320.4 million and $6.30 in FY2024. FY2023 was $279.2 million and $5.64. FairStock’s calculated ROE is 11.73%, ROCE 1.33%, P/B 0.62 at the 2026-10-13 close, Piotroski 5/9, and its score 44/100; it labels the stock a slow grower, with profit growing 3.9% a year over five years. A non-cumulative perpetual preferred can skip dividends forever if trouble comes, so I would demand a strong capital and credit picture. But CET1, NIM, credit metrics, preferred dividend coverage, and the reset date/spread are not in the data; combined ratio is not a bank measure. At near par, the yield compensates for some risk, but not enough for me to ignore the missing bank-specific evidence. The margin of safety is in the issuer’s balance sheet, and I cannot fully verify it here.

In plain English: This security is a preferred share tied to Merchants Bancorp, a bank holding company that lends for apartments and mortgage warehousing and runs a bank. It pays a set 8.25% dividend, recently yielding about 8.36% at $24.67, but the dividend can be skipped and would not be owed later. Recent quarterly earnings improved, yet full-year 2025 profit was lower than 2024, and the price is near its $25 face value, so it looks about fair for the risk.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · 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