Merchants Bancorp (MBIN) Stock Price & How to Invest

Merchants Bancorp (NASDAQ: MBIN), headquartered in Carmel, Indiana and founded in 1990, is a bank holding company that runs three segments: Multi-family Mortgage Banking (originating and servicing government-sponsored FHA multi-family, healthcare, and bridge/construction loans), Mortgage Warehousing (funding agency-eligible residential loans and commercial lines for non-depository lenders), and Banking (retail, commercial, agricultural, SBA, and correspondent residential mortgage banking). This mix makes it less like a plain community bank and more like a specialized housing-finance and warehouse lender that has grown total assets to a record of roughly $20.3 billion.

The investment picture is one of a rapidly scaling niche bank trading at a modest valuation. Q1 2026 net income rose about 16 percent year over year and the stock carries a price-to-earnings ratio around 11, well below broad-market averages, while tangible book value per share reached roughly $38.55. The bull case rests on continued balance-sheet growth and durable fee income from mortgage banking, and the bear case centers on a stretched loan-to-deposit ratio, reliance on external funding, and credit exposure tied to multi-family real estate and warehouse counterparties.

MBIN's loan-to-deposit ratio has climbed to roughly 124 percent, forcing reliance on external wholesale funding that now approaches 30 percent of gross loans, which raises funding cost and liquidity risk. Net interest income has been roughly flat for two years, and net interest income fell about 7 percent year over year in Q1 2026 even as margin ticked up, signaling ongoing spread pressure. Credit exposure is concentrated in multi-family real estate, construction, and warehouse lending to non-depository counterparties, all sensitive to interest rates and commercial-property stress. Rising collateral-preservation and deposit-insurance expenses tied to problem assets have pressured noninterest expense. As a fast-growing lender, its results can be volatile and dependent on continued access to affordable funding.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Merchants Bancorp's investor relations page or your broker.

• Market cap: ~$2.1B
• Revenue (Q1 2026): ~$175M
• Net income (Q1 2026): ~$67.7M
• Diluted EPS (Q1 2026): ~$1.25
• P/E ratio: ~11.5x
• Total assets: ~$20.3B

Q1 2026 net income of roughly $67.7 million (about $1.25 per diluted share) rose around 16 percent year over year and came in ahead of consensus, with revenue up about 20 percent to roughly $175 million. The stock trades near 11 times earnings, a discount to broad-market averages that reflects funding and credit concerns. Tangible book value per share of about $38.55 and a low payout ratio leave capital available to fund continued loan growth.

There are three common ways to get MBIN exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so MBIN sits alongside other stocks that express the same thesis.

Walnut takes the basket route. Describe a thesis where MBIN fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

MBIN is a fast-growing, cheaply valued specialty bank whose returns hinge on funding costs and credit quality in its multi-family and warehouse books.

Whether MBIN is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is MBIN a buy?, and where the stock could go from here in the MBIN stock forecast.

For income investors, whether MBIN pays a dividend and how the payout looks is covered in does MBIN pay a dividend?