Operating cash flow exhibits extreme volatility, highlighted by a negative $780.4 million in 2026Q1, reflecting the bank's heavy reliance on secondary market liquidity to manage its mortgage warehousing operations.
| Cash from Operations | -1.06B | -149.36M | -835.28M | -356.4M | 975.77M | -49.22M | -874.89M | -1.26B | 204.34M | -175.89M | -149.77M | 118.33M |
| Operating CF Growth % | -2688.48% | 82.12% | -134.36% | -136.53% | 2082.64% | 94.37% | 30.4% | -715.17% | 216.17% | -17.44% | -226.57% | - |
| Net Income | 228.26M | 218.77M | 320.39M | 279.23M | 219.72M | 227.1M | 180.53M | 77.33M | 62.87M | 54.68M | 33.13M | 28.38M |
| Depreciation & Amortization | 1.53M | 0 | 3.01M | 2.85M | 2.48M | 2.19M | 1.9M | 852K | 461K | 296K | 278K | 301K |
| Deferred Taxes | 0 | 0 | 4.63M | -2.44M | 4.73M | 5.31M | -692K | -978K | 2.31M | -2.42M | -1.44M | 482K |
| Other Non-Cash Items | -1.27B | -370M | -811.94M | -635.98M | 350.28M | -50.52M | -973.78M | -1.25B | 167.13M | -235.94M | -139.84M | 115.95M |
| Working Capital Changes | -22.47M | 1.87M | -351.37M | -70K | 398.56M | -233.3M | -82.85M | -86.09M | -28.44M | 7.49M | -41.9M | -26.79M |
| Cash from Investing | -552.24M | -387.56M | -874.27M | -3.26B | -2.86B | -474.26M | -2.53B | -957.67M | -509.07M | -523.14M | -265.3M | -349.33M |
| Purchase of Investments | -414.42M | -1.2B | -992.81M | -1.6B | -1.32B | -232.38M | -601.02M | -648.74M | -50.85M | -202.33M | -301.52M | -361.14M |
| Sale/Maturity of Investments | 1.25B | 1.25B | 1.14B | 699.25M | 159.08M | 176.58M | 627.61M | 689.62M | 194.68M | 116.51M | 218.34M | 328.83M |
| Net Investment Activity | 840.3M | 55.36M | 143.96M | -904.66M | -1.16B | -55.81M | 26.59M | 40.88M | 143.83M | -85.82M | -83.18M | -32.31M |
| Acquisitions | -9.76M | -28.39M | -170.59M | 0 | 0 | -464K | 0 | 0 | -14.32M | 363K | 0 | 0 |
| Other Investing | -1.38B | -379.11M | -829.25M | -2.35B | -1.7B | -414.35M | -2.56B | -984.57M | -629.38M | -436.89M | -180.91M | -316.7M |
| Cash from Financing | 1.18B | 272.51M | 1.6B | 3.97B | 1.08B | 1.38B | 3.08B | 2.38B | 282.48M | 612.84M | 413.97M | 448.15M |
| Dividends Paid | -59.88M | -59.42M | -51.17M | -48.51M | -38.07M | -31.23M | -23.67M | -17.25M | -10.22M | -7.95M | -6.22M | -4.22M |
| Share Repurchases | -3M | 0 | 0 | 0 | -3.94M | 0 | 0 | 0 | -700K | 0 | 0 | 0 |
| Stock Issued | 0 | 0 | 97.66M | 0 | 0 | 0 | 0 | 0 | 700K | 106.25M | 31.58M | 3.94M |
| Net Stock Activity | -3M | 0 | 97.66M | 0 | -3.94M | 0 | 0 | 0 | 0 | 106.25M | 31.58M | 3.94M |
| Debt Issuance (Net) | 2M | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -394K | -485K | 1000K |
| Other Financing | 472.69M | 878.65M | -1.91B | 3.99B | 1.09B | 1.57B | 1.94B | 2.25B | 155M | 514.94M | 389.1M | 428.8M |
| Net Change in Cash | -438.08M | -264.41M | -107.81M | 358.26M | -806.45M | 852.89M | -326.98M | 170.19M | -23M | -86.18M | -1.1M | 217.15M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 212.2M | 476.61M | 584.42M | 226.16M | 1.03B | 179.73M | 506.71M | 336.52M | 359.52M | 445.7M | 446.8M | 229.66M |
| Cash at End | 83.22M | 212.2M | 476.61M | 584.42M | 226.16M | 1.03B | 179.73M | 506.71M | 336.52M | 359.52M | 445.7M | 446.8M |
| Interest Paid | 523.36M | 692.92M | 789.05M | 609.69M | 140.37M | 33.9M | 69.11M | 81.89M | 49.28M | 26.76M | 17.8M | 14.23M |
| Income Taxes Paid | 44.46M | 47.64M | 79.58M | 67.39M | 66.51M | 78.76M | 57.32M | 19.33M | 16.96M | 27.05M | 22.23M | 19.47M |
| Free Cash Flow | -1.09B | -170.3M | -853.67M | -363.93M | 966.96M | -52.86M | -878.51M | -1.27B | 188.83M | -177.88M | -152.33M | 116.87M |
| FCF Growth % | -234.72% | 80.05% | -134.57% | -137.64% | 1929.24% | 93.98% | 30.88% | -773.1% | 206.15% | -16.77% | -230.34% | - |
Mortgage market liquidity volatility
According to the quarterly cash flow statements, MBIN frequently rotates its investment securities portfolio, with purchase activity reaching $392.5 million in 2025Q4, suggesting that the bank utilizes its securities book as a primary liquidity buffer to offset volatility in its core mortgage-related lending operations.
The high frequency of securities purchases and sales indicates that the bank is actively managing its duration and liquidity profile in response to interest rate shifts. Investors should monitor whether these portfolio adjustments are intended to generate tactical gains or simply to provide the necessary cash to fund the bank's specialized mortgage warehousing pipelines.
As reported in financial statements, provision expenses have fluctuated significantly, reaching a peak of $53.0 million in 2025Q2, which indicates that the bank is proactively adjusting its loss reserves to account for potential credit deterioration within its specialized multi-family and healthcare lending segments.
The lack of a consistent provisioning trend suggests that management is reacting to specific asset-level risks rather than applying a uniform reserve methodology. This volatility warrants further investigation into the underlying credit quality of the bridge-to-HUD portfolio, as sudden reserve builds may continue to pressure net income.
Based on reported figures, MBIN has maintained a consistent quarterly dividend payout near $15 million, even as net income has shown significant variability, which suggests that the bank prioritizes shareholder returns despite the cyclical headwinds currently impacting its mortgage-heavy revenue model.
While the dividend appears stable, the bank's ability to sustain these payments may be tested if the current contraction in revenue persists. Investors should monitor the payout ratio closely, as the bank's reliance on transactional fee income makes its capital return capacity inherently sensitive to secondary market conditions.
As evidenced by the extreme swings in operating cash flow, including a negative $780.4 million in 2026Q1, the bank's cash flow statement appears to be heavily distorted by the timing of loan originations and secondary market sales, masking the true underlying cash generation of the banking business.
The massive fluctuations in operating cash flow suggest that the bank's liquidity is highly dependent on the velocity of its HUD-insured securitization pipeline. This reliance implies that the bank may face significant liquidity stress if the secondary market for these government-insured assets experiences a temporary freeze.
Quick answers to the most common questions about buying MBIN stock.
Merchants Bancorp (MBIN) generated $-149.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Merchants Bancorp (MBIN) reported negative free cash flow of $170.3M in 2025, indicating capital requirements exceeded cash from operations.
Merchants Bancorp (MBIN) spent $35.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Merchants Bancorp (MBIN) returned $59.4M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.