At a glance
Merchants Bancorp is worth $2.26B, about 13 times its fiscal 2025 earnings. Revenue grew 1.6% to $681.4M in fiscal 2025, with 32.1% kept as profit; over 5 years it has grown 14.1% a year. It pays a 0.88% dividend yield, raised every year for at least 8 years, and returned $232.3M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +53.2% over the past year with dividends reinvested and +12.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 37.3% in the 2020 crash (S&P 500: 33.7%) and 33.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 6 months and 16 months after the lows.
The business in plain English
Merchants Bancorp is the parent company of Merchants Bank, based in Carmel, Indiana. Michael Petrie and Randall Rogers founded the business in 1990 to finance apartment and senior living properties. It runs national lending businesses alongside seven bank branches in Indiana. As of December 31, 2025, it had $19.4 billion in assets, $13.0 billion of deposits and $2.3 billion of shareholders' equity.
It reports three segments. Multi-family Mortgage Banking makes and services loans for affordable apartments and healthcare facilities under FHA, Fannie Mae and Freddie Mac programs. Many fixed-rate loans are sold to government agencies within about 30 days, while Merchants keeps the servicing (collecting payments for a fee). The segment also packages affordable-housing tax credits into funds sold to banks, insurers and large companies. Mortgage Warehousing lends short-term to mortgage companies so they can fund home loans until investors purchase them; it funded $66.3 billion of loans in 2025, up from $45.6 billion in 2024. Banking covers local deposits plus commercial, farm, small business and home loans.
Net interest income, the gap between interest earned on loans and paid on deposits and borrowings, was $517 million in fiscal 2025. Noninterest income, including gains on loan sales, servicing fees and tax-credit syndication fees, added $164 million. The 10-K gives no clean revenue split by segment.
Price history
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MBIN +53.2% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $182.2M, up 1.7% from a year earlier, and net income was $78.3M (+106.2%).
- For fiscal 2025, revenue was $681.4M (+1.6% year over year; +14.1% a year from FY2020 to FY2025) with a 32.1% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +14.1% good |
|---|---|
| Return on equity | 9.6% watch |
| Net income / revenue | 32.1% good |
| Deposits | $14.25B |
| Loans | $12.26B |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $351.6M | $180.5M | — |
| FY2021 | $435.3M | $227.1M | — |
| FY2022 | $444.5M | $219.7M | — |
| FY2023 | $562.7M | $279.2M | — |
| FY2024 | $670.7M | $320.4M | — |
| FY2025 | $681.4M | $218.8M | — |
Valuation snapshot
| Market value | $2.26B |
|---|---|
| P/E ratio | 13 |
| Dividend yield | 0.88% |
Rank among 1514 US companies
Market value at each year end
Merchants Bancorp’s market value went from $564.5M at the end of 2017 to $2.26B on Oct 28, 2026, about 4.0 times as much; since the end of 2025 it is up 44%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.26B | +44.4% |
| 2025 | $1.56B | -6.4% |
| 2024 | $1.67B | -9.4% |
| 2023 | $1.84B | +75.6% |
| 2022 | $1.05B | -23.0% |
| 2021 | $1.36B | +71.5% |
| 2020 | $794.2M | +40.4% |
| 2019 | $565.8M | -1.2% |
| 2018 | $572.7M | +1.5% |
| 2017 | $564.5M |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| MBIN price data to Oct 28, 2026 | +45.3% | +53.2% | +20.0% | +12.9% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +45.3% |
| 2025 | -5.5% |
| 2024 | -13.6% |
| 2023 | +77.0% |
| 2022 | -22.1% |
| 2021 | +72.8% |
| 2020 | +42.6% |
| 2019 | +0.3% |
| 2018 | +2.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 36.1% over that stretch · deepest drop along the way 37.3%, back to its old high 5.9 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 25.1% over that stretch · deepest drop along the way 33.6%, back to its old high 16.1 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 8 sales ($3.8M).
| Date | Insider | Type | Value |
|---|---|---|---|
| May 5, 2026 | Michael F. Petrie Chairman and CEO, Director, 10% owner | sell | $935K |
| Feb 26, 2026 | Michael F. Petrie Chairman and CEO, Director, 10% owner | sell | $661K |
| May 5, 2026 | Michael F. Petrie Chairman and CEO, Director, 10% owner | sell | $500K |
| Jul 30, 2026 | Julia L. Kaercher Director | sell | $497K |
| Jul 30, 2026 | Michael F. Petrie Chairman and CEO, Director, 10% owner | sell | $497K |
Who owns it
Large shareholders (13G filings)
| Michael F. Petrie | 27.4% | Feb 26, 2026 |
| BlackRock, Inc. | 8.8% | Mar 31, 2026 |
| Randall D. Rogers | 8.3% | Feb 9, 2026 |
ETFs with the most weight in MBIN
| MGMT Ballast Small/Mid Cap ETF | 1.03% |
| SVAL iShares US Small Cap Value Factor ETF | 0.53% |
| QSML WisdomTree U.S. SmallCap Quality Growth Fund | 0.24% |
| BFOR ALPS Barron's 400 ETF | 0.24% |
| SEIS SEI Select Small Cap ETF | 0.2% |
| HAPS Harbor Human Capital Factor US Small Cap ETF | 0.19% |
| JSML Janus Henderson Small Cap Growth Alpha ETF | 0.18% |
| EBIT Harbor AlphaEdge Small Cap Earners ETF | 0.17% |
What could go wrong
- Profits depend on heavy mortgage loan volume. Its mortgage businesses need a high volume of loans that can be sold at a gain. Higher interest rates, competitors' pricing or a weaker resale market could cut volume and profits.
- Reliance on government-backed mortgage agencies. Merchants must stay eligible for Fannie Mae, Freddie Mac and Ginnie Mae programs to move loans off its books. Lost eligibility, rule changes or reform of Fannie Mae and Freddie Mac could cut loan sales.
- Breaking FHA rules could cost program access. Merchants makes and services apartment loans insured by the Federal Housing Administration (FHA). Rule violations or high default rates could bring fines, claims to cover losses and loss of FHA eligibility.
- Construction loans rest on uncertain estimates. Merchants lends on housing projects before they are finished, based on estimated costs and values. If costs overrun or property prices fall, the completed project may not cover the loan.
- A credit downgrade could raise funding costs. Merchants relies partly on borrowing, with about $4.3 billion of debt as of June 30, 2026. A rating downgrade could make raising money for growth more expensive or harder.
- Tougher rules above $10 billion in assets. Banks with more than $10 billion in assets face heightened regulatory requirements. Merchants had $21.2 billion as of June 30, 2026, so it carries higher compliance demands and costs than smaller banks.
Recent events
- Quarterly results released
- Other company announcement
- Quarterly results released
- Shareholder vote results; Other company announcement
- Quarterly results released
- Other company announcement
- Quarterly results released
- Other company announcement
For income and retirement investors
Merchants Bancorp pays a small but steadily rising dividend. It has raised the payout for 8 straight years, and dividends per share grew from $0.21 in fiscal 2020 to $0.40 in fiscal 2025, about 13.8% a year. Dividends took a modest 27.2% of fiscal 2025 earnings (the payout ratio), even though net income fell 31.7% that year. Still, the dividend yield (yearly dividends divided by the share price) was just 0.88% as of October 28, 2026. Share buybacks totaled only $3.9 million over fiscal 2021 to 2025, and the share count rose 6.4% from August 2021 to July 2026.
The shares have fallen hard in slumps. They dropped 37.3% in the 2020 COVID crash and recovered in about 6 months. In the 2022 bear market they fell 33.6% and took about 16 months to recover. The price history does not reach back to the 2008 financial crisis. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Merchants Bancorp make money?
Mostly from lending. In fiscal 2025, Merchants earned $517 million of net interest income, the gap between interest it collects on loans and pays on deposits and borrowings, plus $164 million of noninterest income, including gains on loan sales, servicing fees and tax-credit syndication fees. Its three segments are Multi-family Mortgage Banking, Mortgage Warehousing and Banking. Many fixed-rate loans it makes under government programs are sold to agencies such as Fannie Mae and Freddie Mac, while adjustable-rate loans stay on its books.
Is Merchants Bancorp profitable?
Yes, though profit fell sharply in fiscal 2025. Net income was $218.8 million, down 31.7% from $320.4 million in fiscal 2024, and diluted earnings per share dropped to $3.78 from $6.30. The company set aside $117.8 million that year for expected loan losses (its provision for credit losses). Return on equity, profit as a share of shareholders' capital, was 9.6% in fiscal 2025. In the quarter ended June 30, 2026, net income rose 106.2% from a year earlier to $78.3 million.
Does Merchants Bancorp raise its dividend every year?
Yes, it has raised the dividend for 8 straight years. Dividends per share rose from $0.21 in fiscal 2020 to $0.40 in fiscal 2025, about 13.8% a year, with no special one-time payouts. Dividends took 27.2% of fiscal 2025 earnings, so most profit stays in the business. The yield is low, though, at 0.88% as of October 28, 2026, so the payout adds only modest income.
Who owns the most Merchants Bancorp stock?
Co-founder Michael F. Petrie, the chairman and CEO, is the largest holder, with 27.4% of shares as of February 26, 2026. BlackRock held 8.8% as of March 31, 2026, and co-founder Randall D. Rogers held 8.3% as of February 9, 2026. A large founder stake ties management to shareholders' results but gives outside investors less say. Between October 29, 2025, and October 29, 2026, insider filings showed 8 share sales worth about $3.8 million, mostly by Petrie, and no purchases.
How has Merchants Bancorp stock performed?
Well over five years, but with sharp swings. As of October 28, 2026, the share price was up 53.2% over 1 year and had gained 12.9% a year over 5 years, based on price alone. Calendar years swung widely: up 77.0% in 2023, then down 13.6% in 2024 and 5.5% in 2025, with 2026 up 45.3% through October 28. The worst drop over the past 3 years was 43.9%. The stock traded at 13 times fiscal 2025 earnings, its price-to-earnings ratio.