Merchants Bancorp

Merchants Bancorp announced that its Board of Directors declared quarterly cash dividends for the third quarter of 2026, payable on October 1, 2026 to shareholders of record on September 15, 2026. The company declared a dividend of $0.11 per share on its common stock, $15.00 per share on its 6% Series C preferred stock, $20.625 per share on its 8.25% Series D preferred stock, and $19.06 per share on its 7.625% Series E preferred stock. Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana, with $21.2 billion in assets and $14.3 billion in deposits as of June 30, 2026.

Merchants Bancorp has received a Zacks Rank #1 (Strong Buy) following a series of upward earnings estimate revisions. Over the past 30 days, three analysts have raised their estimates for the current quarter, pushing the Zacks Consensus Estimate up 7.95% to $1.40 per share, which would represent a 44.3% increase from the year-ago period. For the full year, three upward revisions have lifted the consensus estimate 8.35% to $5.58 per share, a 47.6% jump from the prior year. The stock has already gained 13% over the past four weeks, and the Zacks Rank model suggests further momentum may follow given the strong correlation between estimate trends and near-term price performance.

Merchants Bancorp reported second quarter 2026 results that exceeded Wall Street expectations on both earnings and revenue, driven by stronger loan servicing and asset management fees. The stock has returned 46.99% year to date and 57.68% over the past year, closing at $48.77. Its price-to-earnings ratio of 11.9x sits below the peer average of 14x and the US diversified financial industry average of 15.3x, while a Simply Wall St discounted cash flow model estimates fair value at $137.51, implying the stock is undervalued. However, risks remain if mortgage banking volumes weaken or higher funding costs squeeze lending margins.