Levi & Korsinsky notifies investors that it has commenced an investigation into Merchants Bancorp (NASDAQ: MBIN) concerning potential violations of the federal securities laws.
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 suffered a loss on your Merchants Bancorp securities and would like to explore a potential recovery under the federal securities laws, submit to us or contact Joseph E. Levi, Esq. via email at [email protected] or call 212-363-7500 to speak to our team of experienced shareholder advocates.
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