Merchants Bancorp reported Q1 2026 earnings that beat headline estimates -- but brokered deposits had fallen roughly 50% year over year, and shares dropped 9.3% as the market repriced the stock.
NEW YORK , May 6, 2026 /PRNewswire/ -- Merchants Bancorp (NASDAQ: MBIN) lost 9.3% of its share value following the Company's Q1 2026 earnings release, as investors reacted to a roughly 50% year-over-year collapse in brokered deposits and rising funding costs buried beneath headline numbers. Shareholders who lost money on MBIN are encouraged to submit their information to Levi & Korsinsky. You may also contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500.
The Q1 2026 earnings release showed what appeared to be a headline beat. Beneath that number, brokered deposits -- a key funding source for the bank -- had declined approximately 50% compared to Q1 2025. At the same time, the Company's cost of funds increased materially. The market's reaction was immediate: MBIN shares fell 9.3% as investors recalculated the sustainability of the Company's earnings trajectory in light of the deposit contraction and funding-cost pressure.
Prior to the Q1 2026 release, the Company had emphasized "strong deposit growth" in communications with investors. The earnings report did not reconcile that characterization with the scale of the brokered-deposit decline. Analysts and investors who had relied on prior deposit-growth messaging absorbed the new data and sold.
If you purchased Merchants Bancorp shares and suffered a loss, click here to discuss your legal rights with Levi & Korsinsky . You may also contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500.
ABOUT THE FIRM -- For over two decades, Levi & Korsinsky has represented shareholders in securities investigations and actions. Ranked in ISS Top 50 for seven consecutive years.
Frequently Asked Questions About the MBIN Investigation
Q: Who is eligible to participate in the MBIN investigation? A: Investors who purchased MBIN stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: How much did MBIN stock drop? A: Shares fell approximately 9.3% after the Company's Q1 2026 earnings release revealed a roughly 50% year-over-year decline in brokered deposits and rising funding costs. Investors who purchased shares at higher prices may be entitled to recovery.
Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether Merchants Bancorp made materially false or misleading statements regarding the stability of its deposit base and the sustainability of its funding costs. When the Q1 2026 earnings data surfaced, the stock price declined sharply.
Q: What do MBIN investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.
Q: What if I already sold my MBIN shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought MBIN and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate? A: Nothing. Securities investigations are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Has Levi & Korsinsky handled similar cases before? A: Yes, including securities investigations involving revenue inflation, earnings guidance issues, and executive misconduct across numerous industries.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
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SOURCE Levi & Korsinsky, LLP
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