10 Most Undervalued Bank Stocks To Invest In According To Analysts

5. Merchants Bancorp (NASDAQ:MBIN)

Average Upside Potential: 35.76%

Forward P/E: 7.48

Merchants Bancorp (NASDAQ:MBIN) is a diversified bank holding company based in Carmel, Indiana. The firm operates different lines of business which include Multi-family Mortgage Banking, Mortgage Warehousing, and Banking.

Merchants Bancorp, ranked as a top-performing U.S. public bank by S&P Global Market Intelligence, has $12.9 billion in deposits and $18.7 billion in assets, as of September 30, 2024. While the company has maintained superior profitability and earnings growth profile in every interest rate environment, Merchant’s unique originate-to-sell model with differentiated revenue streams tends to reduce earnings volatility through the full rate cycle.

Although Merchants Bancorp (NASDAQ:MBIN) saw its financials get impacted in the recent quarter due to unfavorable fair market value adjustments related to derivatives and servicing rights and some isolated credit issues, the firm was successful in surpassing prior records with its total assets of $18.7 billion exceeding any level previously reported and raising its tangible book value to a record high of $32.38, up 25% year-over-year.