** Merchants Bancorp MBIN.O shares up 5.3% to one-yr high of $44.71 before the bell as it's set to join S&P SmallCap Index .SPCY this week

** MBIN to replace TreeHouse Foods THS.N effective Weds, Feb 11, S&P Dow Jones Indices announced late Fri

** Packaged foodmaker THS being acquired by European investment group Investindustrial in $2.9 bln deal

** Stephens analyst Melissa Roberts said in a note she expects passive funds will need to purchase 4 mln MBIN shares, implying nearly 24 days of buying demand

** Carmel, Indiana-based MBIN has ~45.9 mln shares outstanding for about $2 bln market cap as of stock's last close

** Last month, MBIN said in Q4 criticized loans decreased 13% and nonperforming loans decreased by nearly one-third from Q3, reflecting improved asset quality

** MBIN ended 2025 with $19.4 bln of assets

** Through Fri, MBIN shares up 25% YTD after ~7% decline last year

** 2 of 3 analysts covering the stock rate it "buy", 1 rates "hold"; PTs are $42, $46 and $49, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))