Merchants Bancorp to Redeem Series B Preferred Stock and Declare Dividends for Series E Shares

Merchants Bancorp Takes Significant Steps in Preferred Stock Management

In a recent announcement, Merchants Bancorp (Nasdaq: MBIN), the parent company of Merchants Bank of Indiana, revealed crucial updates regarding its preferred stock management. Scheduled for January 2, 2025, the company will redeem all outstanding shares of its Series B Preferred Stock, which carries a fixed rate of 6.00%—recently adjusted to 9.42% as of October 1, 2024. This decision represents a pivotal move in refining the company's capital structure and optimizing its financial position.

Redemption Details

The Series B Preferred Stock, which has a liquidation preference value of $25.00 per share, will be redeemed using cash available on hand. Shareholders can expect to receive a dividend of $0.59 per share that was declared on November 20, 2024, separate from the redemption amount. Following the redemption date, dividends on the Series B shares will no longer accrue, providing a clear closure to this chapter for the institution.

This decision also comes with the intent to voluntarily delist the Series B shares from the Nasdaq stock exchange. Merchants Bancorp has notified Nasdaq and plans to file a Notification of Removal from Listing with the Securities and Exchange Commission prior to the redemption date. The delisting process is expected to finalize around January 2, 2025, which means these shares will cease to be traded publicly after that date.

Approval Status

Merchants Bancorp has secured all necessary regulatory approvals for the redemption and delisting of the Series B Preferred Stock. Payments will be processed through Computershare Trust Company, N.A., the company's transfer agent, ensuring efficient and timely transaction of funds on the redemption date.

New Dividends Announcement

In addition to the redemption news, Merchants Bancorp's Board of Directors has declared an initial quarterly cash dividend associated with its Series E Preferred Stock. This new series, which commenced post-issuance on November 25, 2024, will offer $7.84 per share, or $0.196 per depositary share. Shareholders on record as of December 13, 2024, can anticipate their payments by January 2, 2025.

Company Insights

Merchants Bancorp is recognized as one of the top-performing public banks in the U.S., as noted by SP Global Market Intelligence. The bank operates out of Carmel, Indiana, and is engaged in various sectors, including multi-family mortgage banking, mortgage warehousing, and community banking initiatives. With a robust asset base of $18.7 billion and total deposits reaching $12.9 billion as of September 30, 2024, the company underscores its commitment to strategic growth and exceptional service delivery.

For more detailed financial statements and investor information, stakeholders can visit the Merchants Bancorp Investor Relations page.

In summary, Merchants Bancorp's decisive actions regarding its Series B Preferred Stock and the declaration of dividends reinforces its capacity to maneuver through the financial landscape while ensuring shareholder value and satisfaction.