MBINHIGH SIGNALFINANCIAL10-K

MBIN experienced a dramatic 251% surge in interest expense alongside a 78% collapse in cash reserves, signaling severe funding pressure despite continued asset growth.

The massive increase in interest expense from $179M to $630M indicates MBIN is paying significantly more to fund operations, likely due to rising rates and increased reliance on expensive funding sources. The simultaneous 78% drop in cash to just $226M creates potential liquidity concerns, especially given the bank's continued growth in assets to $19.4 billion.

Comparing 2026-02-27 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

MBIN's financial profile deteriorated sharply with interest expense exploding 251% while net income fell 32% to $219M, indicating compressed net interest margins under severe funding pressure. The 78% collapse in cash reserves to $226M is particularly concerning for a growing bank, though operating cash flow improved from deeply negative levels. Despite asset growth to $19.4 billion and deposit increases to $13.0 billion, the combination of skyrocketing funding costs and depleted liquidity presents significant financial stress that investors should monitor closely.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+251.3%
$179.2M$629.7M

Interest expense surged 251.3% — significant debt increase or rising rates materially impacting earnings.

Cash & Equivalents
Balance Sheet
-78.1%
$1.0B$226.2M

Cash declined 78.1% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Operating Cash Flow
Cash Flow
+59.1%
-$835.3M-$341.2M

Operating cash flow surged 59.1% — exceptional cash generation, highest quality earnings signal.

Provision for Credit Losses
P&L
+57.7%
-$11.8M-$5.0M

Credit loss provisions surged 57.7% — management flagging significant deterioration in loan quality ahead.

Net Income
P&L
-31.7%
$320.4M$218.8M

Net income declined 31.7% — review whether driven by operations, interest costs, or non-recurring items.

Dividends Paid
Cash Flow
+16.1%
$51.2M$59.4M

Dividend payments increased 16.1% — management confidence in sustained cash generation.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-28
ADDED
As of February 18, 2026, the Registrant had 45,962,065 shares of Common Stock outstanding.
As of December 31, 2025, we had $19.4 billion in assets, $13.0 billion of deposits and $2.3 billion of shareholders equity.
Merchants Bank, our wholly owned banking subsidiary, operates under an Indiana charter and provides national and traditional community banking services, as well as portfolio lending for multi-family and healthcare facility loans, retail and correspondent residential mortgage banking, warehouse lending, SBA lending, and agricultural lending.
Loans are funded primarily from mortgage custodial, municipal, retail, commercial, and brokered deposits, as well as short-term borrowings.
Tax syndication and asset management fees have also become a growing source of noninterest income.
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REMOVED
As of February 24, 2025, the Registrant had 45,850,904 shares of Common Stock outstanding.
2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments adopted by the Corporation on January 1, 2022.
On January 1, 2023, the Company adopted FASB Accounting Standards Update ( ASU ) No.
2022-02, Financial Instruments Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures, which eliminates the recognition and measurement of troubled debt restructurings.
The Company adopted the prospective approach for this new guidance.
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