Merchants Bancorp building capital with $230 mln preferred stock offering, Raymond James says

Merchants Bancorp

20/11/2024 11:45

** Raymond James says regional lender Merchants Bancorp's
 MBIN.O  recent perpetual preferred stock offering does not
reflect credit stress within its loan portfolio, but rather
management's preference to build capital given the continuation
of robust balance sheet growth
    ** MBIN on Monday priced a $230 mln perpetual preferred
stock offering selling 9.2 mln depositary shares
    ** Bank expects to use the proceeds to redeem preferred
stock and for general corporate purposes, including to support
balance sheet growth
    ** Brokerage says the refinancing and incremental increase
in capital is a component of a fast-growing bank, which it
expects to continue
    ** Offering enhances total capital levels by ~63 basis
points, continuing to strengthen capital and providing balance
sheet flexibility for growth - Raymond James 

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))