Merchants Bancorp Announces Renewal of Stock Repurchase Program

Rhea-AI Summary

Merchants Bancorp (MBIN) has announced the renewal and increase of its stock repurchase program, allowing for up to $75 million in common stock buybacks, set to expire on December 31, 2023. This program gives Merchants the flexibility to acquire shares at management's discretion, reinforcing its commitment to enhancing shareholder value. The decision comes despite the potential impact of market conditions and regulatory compliance on the buyback process. As of September 30, 2021, Merchants Bancorp reported $11.0 billion in assets and $8.9 billion in deposits.

Positive

• Renewal of stock repurchase program of up to $75 million enhancing shareholder value.
• Flexibility to repurchase shares based on market conditions and corporate strategy.

Negative

• Buyback program may be modified or suspended, indicating potential uncertainty.
• Repurchases depend on various external factors which may affect execution.

CARMEL, Ind., Nov. 17, 2021 /PRNewswire/ -- Merchants Bancorp ("Merchants") (Nasdaq: MBIN), parent company and registered bank holding company of Merchants Bank of Indiana ("Merchants Bank"), today announced that its Board of Directors approved the renewal and increase of the stock repurchase program of up to $75 million of common stock, expiring December 31, 2023.

The stock repurchase program permits Merchants to acquire shares of its common stock from time to time in the open market or otherwise at such prices, quantities, and terms as management deems appropriate and in the best interest of Merchants and its shareholders.  The repurchase program does not obligate Merchants to repurchase shares of its common stock and may be modified, suspended, or discontinued at any time at the discretion of the Board. 

Repurchases are subject to compliance with applicable laws and regulations.  Repurchases will depend upon a variety of factors, including general market and economic conditions as well as the financial and regulatory condition of Merchants.

ABOUT MERCHANTS BANCORP
Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana operating multiple lines of business, including multi-family housing and healthcare facility financing and servicing, mortgage warehouse financing, retail and correspondent residential mortgage banking, agricultural lending and traditional community banking.  Merchants Bancorp, with $11.0 billion in assets and $8.9 billion in deposits as of September 30, 2021, conducts its business through its direct and indirect subsidiaries, Merchants Bank of Indiana, Merchants Capital Corp., Farmers-Merchants Bank of Illinois, and Merchants Mortgage, a division of Merchants Bank of Indiana. For more information and financial data, please visit Merchants' Investor Relations page at investors.merchantsbancorp.com.

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SOURCE Merchants Bancorp

FAQ

What is Merchants Bancorp's stock repurchase program?

Merchants Bancorp's stock repurchase program allows the company to buy back up to $75 million in common stock until December 31, 2023.

Why did Merchants Bancorp renew its stock buyback program?

The company aims to enhance shareholder value and manage its capital effectively.

How does the stock buyback affect MBIN's share price?

Stock repurchases typically lead to fewer shares outstanding, potentially increasing the share price due to improved earnings per share metrics.

What factors influence the execution of the stock buyback?

Repurchases will depend on market conditions, financial health, and regulatory requirements.