Merchants Bancorp MBINM

Merchants Bancorp is a diversified bank holding company headquartered in Carmel Indiana. The firm operates as a bank holding company under the Bank Holding Company Act of 1956 and provides a range of financial services through its wholly owned banking subsidiary Merchants Bank. Its core activities include originating and servicing loans for multi family rental housing and healthcare facilities, providing warehouse financing to independent mortgage bankers, and delivering traditional community banking products such as retail deposits, commercial loans, agricultural loans and SBA lending. As of December 31 2025 the company reported total assets of nineteen point four billion dollars, deposits of thirteen point zero billion dollars and shareholders equity of two point three billion dollars.

Revenue is generated primarily through net interest income earned on the loan portfolio and through gains realized on the sale of loans to government sponsored enterprises and other investors. The company also earns servicing fees on loans it retains after sale, tax credit syndication and asset management fees from its affordable housing equity funds, and warehouse lending fees from lines of credit extended to mortgage bankers. Additional income comes from deposit related service charges, fees on residential mortgage origination and correspondent lending, and interest earned on agricultural and SBA loans. The combination of interest based earnings and fee based income provides a diversified revenue stream that is not reliant on any single product line.

The company operates through the following three operational segments: Multi family Mortgage Banking, Mortgage Warehousing, and Banking.

• Multi family Mortgage Banking originates and services loans for affordable multi family rental housing and healthcare facility financing.
• The segment acts as a syndicators of low income housing tax credit and debt funds, providing bridge financing, construction lending and USDA Rural Housing 538 loans for rural markets.
• It offers customized loan products for skilled nursing facilities including independent living assisted living and memory care projects.
• Fixed rate loans are typically sold as mortgage backed securities with servicing rights retained, while adjustable rate loans are held for investment.
• The segment also operates a tax credit equity syndication platform and a registered investment advisor that deploys third party capital into high quality assets originated by the lending desk.
• Additionally it facilitates securitizations and capital markets transactions to manage balance sheet risk and enhance liquidity.
• Mortgage Warehousing provides asset based financing in the form of warehouse facilities to eligible non depository financial institutions and mortgage bankers.
• The financing is secured by residential and multi family mortgage loans that meet underwriting standards set by Merchants Bank and by agencies such as Fannie Mae Freddie Mac FHA and VA.
• The segment funds loan inventory for originators until the loans are sold in the secondary market to approved investors.
• Primary sources of liquidity are custodial and corporate deposits from customers.
• In 2025 the segment funded sixty six point three billion dollars of loan principal, reflecting its role as one of the largest warehouse lenders in the country.
• The Banking segment delivers traditional community banking services through retail branches in central Indiana and a nationwide digital platform.
• It includes retail and correspondent residential mortgage banking, commercial lending, agricultural lending and SBA lending.
• The segment holds multi family and healthcare bridge loans, multi family construction loans, owner occupied commercial real estate loans, commercial and industrial loans, residential mortgage loans and consumer loans.
• Deposits are gathered from retail customers in Hamilton Marion Randolph and surrounding counties and from escrows generated by servicing activities of the Multi family Mortgage Banking segment.
• Agricultural lending operates from offices in Lynn Richmond and Carmel Indiana offering lines of credit for crop and livestock production equipment financing and farm real estate purchases.
• SBA lending operates under Preferred Lender Program status with offices in Indiana Illinois Ohio and Texas serving small business communities.

Merchants Bancorp holds a leading position as one of the top ranked agency affordable lenders in the nation for multi family and healthcare financing. Its Mortgage Warehousing segment is consistently ranked among the largest warehouse lenders in the United States, competing with major financial institutions and specialized finance companies. The Banking segment benefits from a strong community bank franchise in Indiana while also offering national capabilities through correspondent and SBA platforms. Competitive advantages arise from the company’s originate to sell model, which reduces interest rate risk, and from its integrated tax credit syndication and investment advisory capabilities that create additional lending capacity. The firm’s diversified business model provides insulation from cyclical downturns and generates synergies across its lines of business, setting it apart from peers that rely on a single product focus.

The company serves a varied customer base that includes institutional investors such as banks insurance companies and large publicly traded corporations that participate in its tax credit equity and debt funds. Independent mortgage bankers and small to medium sized lending firms obtain warehouse financing from the Mortgage Warehousing segment. Retail and commercial customers in central Indiana and nationwide access banking products through the branch network and online channels. Agricultural borrowers in eastern Indiana and nearby Ohio receive financing for crop livestock equipment and farm real estate. Small business owners in Indiana Illinois Ohio and Texas obtain SBA loans through the dedicated lending platform. Multi family and healthcare developers receive construction bridge and permanent financing from the Multi family Mortgage Banking segment.