Merchants Bancorp Depositary Shares Preferred Series C (MBINN)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

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

I approach MBINN as a preferred claim on Merchants Bancorp, not as common equity. The bank is a roughly $870M-market-cap holding company with 735 employees, focused on multi-family mortgage banking, mortgage warehousing, and banking. That can be a decent niche, but it is cyclical and competitive; I see no wide moat. The filed figures show FY2023 net income of $279.2M and diluted EPS of $5.64, FY2024 net income of $320.4M and EPS of $6.30, then a drop in FY2025 to net income of $218.8M and EPS of $3.78. The latest quarters are recovering: in fiscal Q1 2026, net income was $67.7M and diluted EPS was $1.25, and in fiscal Q2 2026, net income was $78.3M and diluted EPS was $1.48, versus fiscal Q2 2025 net income of $38.0M and diluted EPS of $0.60. FairStock calculations at the 2026-10-13 close show P/E 4.27, P/B 0.47, ROE 11.73%, and a 7.92% dividend yield. The common looks statistically cheap, but the preferred sits lower in the capital stack, so credit quality matters more than common P/E. Piotroski is 5/9, FairStock Score is 53/100, and the Lynch label is SLOW GROWER—profit grew 3.9% a year over five years. Bank-specific measures like CET1, NIM, and combined ratio are not in this data, so I cannot judge balance-sheet safety fully. At $18.93, near the 52-week low of $18.27, the preferred is priced for caution. If the recent earnings recovery holds and credit stays sound, the yield could be supported; if mortgage banking or credit weakens, the preferred dividend and price could suffer.

In plain English: Merchants Bancorp is a small U.S. bank holding company that focuses on apartment-building mortgages, mortgage warehousing, and banking. The business looks mixed: profits dropped in fiscal 2025 but have picked up in the first half of 2026. The preferred shares pay a high income and trade near their low for the past year, so they look cheap for income, but the payments depend on the bank staying healthy.

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