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PRNewswire 13-May-2026 9:00 AM
Merchants Bancorp reported "strong deposit growth" to investors while brokered deposits were declining roughly 50% year over year -- a funding shift that surfaced only in the Q1 2026 earnings release.
NEW YORK, May 13, 2026 /PRNewswire/ -- Merchants Bancorp (NASDAQ:MBIN) shareholders lost 9.3% of their investment value after the Company's Q1 2026 earnings release revealed a roughly 50% year-over-year decline in brokered deposits and rising funding costs. 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.
Prior to the Q1 2026 earnings release, Merchants Bancorp's public communications had emphasized deposit growth without quantifying the brokered-deposit component or its trajectory. The Company's proxy materials filed with the SEC on April 10, 2026 presented net-income totals and return-on-equity figures but contained no deposit-related metrics and no discussion of the brokered-deposit contraction or funding-cost pressures. When Q1 2026 earnings disclosed that brokered deposits had fallen approximately 50% year over year and that funding costs had materially increased, shares dropped 9.3%.
The investigation concerns whether Merchants Bancorp's prior statements regarding deposit growth may have omitted material information about the composition and sustainability of those deposits. The Company's public filings did not reference the brokered-deposit decline or the associated cost-of-funds increase until the Q1 2026 earnings disclosure forced the market to reprice the stock.
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.
WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.
Frequently Asked Questions About the MBIN Investigation
Q: Who is conducting the MBIN investigation? A: Levi & Korsinsky, LLP is investigating potential securities law violations on behalf of investors who purchased MBIN securities and suffered financial losses. The firm is nationally recognized, ranked in the ISS Top 50 for seven consecutive years, and has recovered hundreds of millions of dollars for aggrieved investors.
Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether Merchants Bancorp made potentially misleading statements regarding deposit growth without disclosing the significant decline in brokered deposits and the rise in funding costs. When these facts surfaced in the Q1 2026 earnings release, the stock dropped 9.3%.
Q: Who is eligible to participate in the MBIN investigation? A: Investors who purchased MBIN stock 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: 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: Do I need to go to court or give testimony? A: No. Participating in the investigation does not require court appearances or depositions.
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