Business Description
Merchants Bancorp, an Indiana corporation formed in 2006, is a diversified
bank holding company headquartered in Carmel, Indiana and registered under the
Bank Holding Company Act of 1956, as amended. We currently operate in and service
multiple lines of business, including multi-family housing, mortgage warehouse
financing, retail and correspondent residential mortgage banking, agricultural
lending, and traditional community banking.
We were founded in 1990 as a mortgage banking company, providing financing
for multi-family housing and senior living properties. The shared vision of
our founders, Michael Petrie and Randall Rogers, was to create a diversified
financial services company, which efficiently operates both nationally through
mortgage banking and related services and locally through a community bank.
We have grown both organically and through acquisitions focused on expanding
our services. We have strategically built our business in a way that we believe
offers insulation from cyclical economic and credit swings and provides synergies
across our lines of business.
Merchants Bank of Indiana, one of our wholly owned banking subsidiaries, operates
under an Indiana charter and provides traditional community banking services,
as well as retail and correspondent residential mortgage banking and agricultural
lending. Merchants Bank has six depository branches located in Carmel, Indianapolis,
Lynn, Spartanburg, and Richmond, Indiana. Farmers-Merchants Bank of Illinois
(“FMBI”, formerly named Joy State Bank), another wholly-owned banking
subsidiary, acquired on January 2, 2018, operates under an Illinois charter
and provides traditional community banking services and agricultural lending.
FMBI has five depository branches located in Joy, New Boston, Paxton, Melvin,
and Piper City, Illinois.
Our business consists primarily of funding low risk loans that sell within
90 days of origination. The sale of loans and servicing fees generated primarily
from the multi-family rental real estate loans servicing portfolio contribute
to noninterest income. The funding source is primarily from mortgage custodial,
municipal, retail, commercial, and brokered deposits. We believe that the combination
of net interest income and noninterest income from the sale of low risk profile
assets results in lower than industry charge offs and a lower expense base,
which serves to maximize net income and shareholder return.
0.82% 