Merchants Bank
Merchants Bank of Indiana, subsidiary of Merchants Bancorp (NASDAQ:MBIN), is a Carmel, Indiana-based bank holding company with $20.3B in assets, providing community banking, SBA lending, residential and multifamily mortgage banking, warehouse lending, and white-label correspondent mortgage services to consumers, small and mid-size businesses, real estate developers, and smaller financial institutions nationwide.
- Company typePublic
- Founded1990
- HeadquartersCarmel, United States
- Headcount501–1,000
- GTM typeB2B and B2C
- OfferingServices
What Merchants Bank does
Merchants Bank of Indiana is the banking subsidiary of Merchants Bancorp (NASDAQ:MBIN), a publicly traded bank holding company headquartered in Carmel, Indiana, with $20.3 billion in total assets and $13.0 billion in deposits as of Q1 2026. The bank operates through three core subsidiaries — Merchants Bank (community and commercial banking), Merchants Capital (multifamily mortgage banking), and Merchants Mortgage (retail and correspondent residential mortgage banking) — plus BCU Mortgage Services, a white-label platform that enables smaller banks and credit unions to originate secondary-market eligible home loans under their own brands. The customer base spans retail consumers, small and mid-size businesses, multifamily and commercial real estate developers, agricultural borrowers, and financial institution partners, with a geographic footprint that includes six Indiana branches, regional production offices in Chicago, Houston, Dayton, and Spartanburg, and a nationwide digital banking platform.
The bank's core products include personal checking, money market and savings accounts (rates positioned at approximately 10x the national average), traditional and Flex Index CDs, the All-In-One Loan (a single-close construction-to-permanent mortgage), SBA 7(a) and 504 lending under Preferred Lenders Program (PLP) status, agricultural lending, mortgage warehouse financing, correspondent lending, and a $50 million Indiana University Athletics sponsorship anchored by a financial literacy program for student-athletes. Technology infrastructure consists of standard online and mobile banking with Zelle person-to-person payment integration, mortgage origination and servicing systems, the MTG Connect correspondent portal, and the BCU Mortgage Services platform; there is no disclosed proprietary AI/ML capability or public API.
Merchants Bancorp generates revenue primarily through net interest income from its loan portfolio (multi-family, commercial real estate, agricultural, consumer, and warehouse lending) and non-interest income from mortgage banking fees, SBA loan originations, and treasury management services; Q1 2026 net interest income rose 5% year-over-year while non-interest income rose 97% year-over-year, producing $67.7M in quarterly net income at a 16.02% net margin. Full-year 2025 revenue was approximately $1.37 billion. Quarterly dividends of $0.11 per share (raised 10% in Q2 2026) and a $100 million stock repurchase program expiring December 31, 2027 indicate active capital return alongside balance sheet growth.
Merchants Bank firmographics
Firmographics- Name
- Merchants Bank
- Legal name
- Merchants Bank of Indiana
- Website
- https://bankmerchants.com
- Company type
- Public
- Founded year
- 1990
- Operating status
- Operating
- Headcount range
- 501–1,000 employees
- Short description
- Merchants Bank of Indiana, subsidiary of Merchants Bancorp (NASDAQ:MBIN), is a Carmel, Indiana-based bank holding company with $20.3B in assets, providing community banking, SBA lending, residential and multifamily mortgage banking, warehouse lending, and white-label correspondent mortgage services to consumers, small and mid-size businesses, real estate developers, and smaller financial institutions nationwide.
- Ownership category
- akta.pro rank
Merchants Bank industry classification
Industry- Product category
- Community Banking
- NAICS
- Commercial Banking (52211), Commercial Banking (522110)
- SIC
- State Commercial Banks (6022), National Commercial Banks (6021), Personal Credit Institutions (6141)
- akta.pro primary industry
- Mass-Market Consumer Deposit Banking (Checking/Savings) (FSABAAAA)
- akta.pro secondary industry
- Retail Lending (Personal Loans, Auto, Credit Lines) (FSABAAAB)
Keywords
Where Merchants Bank is headquartered
LocationHeadquarters
- HQ city
- Carmel
- HQ country
- United States
- HQ region
- North America
Offices10 records
Markets served
Merchants Bank business model
Business model- GTM type
- B2B and B2C
- Offering type
- Services
- Cost components
- Personnel, Operations, Infrastructure, Marketing or Sales, Technology or R&D, Others
Revenue model
- Net Interest Income: Interest income from loan portfolio including multi-family mortgages, commercial real estate, agricultural loans, and consumer loans, offset by interest paid on deposits. Q1 2026 net interest income increased 5% year-over-year.
- Non-Interest Income: Fee income from mortgage banking operations including retail and correspondent lending, SBA loan originations, warehouse lending fees, and treasury management services. Q1 2026 noninterest income rose 97% year-over-year.
- Dividend Distributions: Quarterly cash dividends on common stock ($0.11 per share in Q2 2026) and preferred stock series. Represents return of capital to shareholders.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Monthly | Money Market Savings Account |
| Subscription | Annual | Certificates of Deposit (Fixed Rate and Flex Index) |
| Unit Pricing | Multi-year contract | SBA 7(a) Loans up to $5 Million |
| Unit Pricing | Multi-year contract | SBA 504 Loans |
Go-to-market motion2 records
Distribution channels6 records
Marketing channels7 records
Merchants Bank product offering
Product offeringCore offering
Merchants Bank is a diversified community bank that delivers retail and business deposit products (checking, savings, money market, CDs, HSAs), consumer and commercial loans, SBA 7(a) and 504 small business lending, agricultural lending, retail residential mortgages (Merchants Mortgage), multifamily mortgage banking (Merchants Capital), correspondent and warehouse lending, and the BCU Mortgage Services white-label mortgage program for partner institutions. It serves both individual consumers in Indiana and commercial customers nationwide through its branch network, regional production offices, and digital banking platform.
Product overview
Merchants Bank operates as a diversified regional bank holding company offering a comprehensive suite of banking and lending products across multiple segments. The portfolio includes core personal and business banking services (checking, savings, CDs, loans), digital banking with Zelle® integration, SBA lending through its Preferred Lenders Program designation, agricultural lending, and a significant mortgage banking operation comprising retail residential mortgage (Merchants Mortgage), multifamily finance (through Merchants Capital subsidiary), warehouse lending for correspondent lenders, and the BCU Mortgage Services white-label program. The bank also offers specialized products like the All In One Loan for mortgage interest savings and Single Close Construction loans. Headquartered in Carmel, Indiana with $20.3 billion in assets, the bank serves customers nationwide through banking centers, regional production offices, and its digital banking platform.
Differentiator
Problem solved
Functional benefit
Brands
- Merchants Capital: Multifamily mortgage banking and commercial mortgage lending subsidiary
- Merchants Mortgage
- BCU Mortgage Services
- MPACT
Products and services
- Personal Checking
- Money Market Savings
- Certificates of Deposit (Fixed Rate and Flex Index)
- Health Savings Account
- Digital Banking
- Consumer Loans
- Business Checking
- Business Savings
- Treasury Management
- Business Loans
- SBA Lending (SBA 7(a) and 504)
- AG Lending
- Merchants Mortgage
- All In One Loan
- Warehouse Lending
- Correspondent Lending
- Multifamily Finance (Merchants Capital)
- BCU Mortgage Services
Quantifiable outcome
- IDC Financial Publishing superior safety rating of 300 for 12 consecutive quarters since 2009
- +5 more outcomes
Companies that use Merchants Bank
Customer profileNamed customers11 records
Segments6 records
Ideal customer profiles5 records
Merchants Bank technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration1 record
Feature4 records
Merchants Bank partnerships and signals
Strategic signalPartnerships
Eight partnerships are on record, tiered core, flagship and minor.
- Federal Home Loan Bank of IndianapoliscoreMerchants Bank collaborates with the Federal Home Loan Bank of Indianapolis on affordable housing programs. The bank helps secure FHLBank Indianapolis grants for local housing nonprofits, including a $872,020 AHP grant for the Marvetta & Anthony Grimes Family Center, a 36-unit supportive housing project developed by 2 Thirty-Eight Properties in partnership with Seeds of Hope and Volunteers of America of Ohio and Indiana. Becca Murphy of Merchants Bank also won FHLBank Indianapolis' 2022 Community Spirit Award.
- Indiana University Athletics / Department of Intercollegiate AthleticsflagshipMerchants Bank entered a transformative $50 million sponsorship with Indiana University's Department of Intercollegiate Athletics, the largest sponsorship in the company's history. A central component is providing free financial literacy education to all IU student-athletes. The bank also signed multiple IU basketball players (Trayce Jackson-Davis, Race Thompson) as brand ambassadors who promote Merchants Bank's products through personal appearances and advertising. The new Bloomington branch serves as a hub for financial literacy programming for student-athletes.
- BCU Mortgage Services Partner Financial InstitutionscoreBCU Mortgage Services, a third-party mortgage origination program created by Merchants Bank, enables qualified smaller banks and credit unions to originate secondary market eligible home loans (conventional, FHA, USDA) under their own brand. Partner institutions receive a customized branded online mortgage application, all required disclosures, processing, underwriting, and fulfillment support. This allows partners to retain and deepen customer relationships without maintaining a full-service mortgage department.
- Zelle (Early Warning Services, LLC)coreMerchants Bank partnered with Zelle to provide fast, safe, and easy person-to-person payment capabilities within its digital banking platform and mobile app. Zelle is integrated directly into Merchants Bank's Bill Pay and mobile banking, allowing customers to send money using email addresses or U.S. mobile phone numbers. No separate app download is required.
- Habitat for Humanity of Greater IndianapolisminorMerchants Bank employees participate in Habitat for Humanity home rehabilitation and building projects as part of the MPACT community volunteer program. Employees also mentor future homeowners through Habitat for Humanity as part of the MPACT initiative.
- Junior AchievementminorMerchants Bank provides financial literacy training and education sessions at Junior Achievement BizTown and Finance Park programs, helping students develop financial literacy skills. Multiple employees are involved in delivering these programs across local schools.
- Kenwood Place Apartments / Affordable Housing PropertiesminorMerchants Bank employees provide financial literacy training and collect donations (books, games, puzzles) for affordable housing properties including Kenwood Place Apartments in Indianapolis, Village of Merici, and other affordable housing communities.
- Fannie MaecoreMerchants Capital (affiliated entity) operates in the multifamily mortgage market and would be subject to Fannie Mae's fraud investigation protocols and lending guidelines. Fannie Mae reported 12-month lows in multifamily fraud tips as of July 2025, following heightened scrutiny in 2024 with 193 investigations and 87 confirmed fraud cases. The bank faces exposure to multi-family mortgage and warehousing cycles as a core risk factor noted in analyst coverage.
Scale indicators13 records
Recent moves7 records
Expansion highlights6 records
Merchants Bank competitors and assessment
Company assessmentDirect peers
- Hanover Bancorp: Explicitly cited as a comparison peer in Merchants' financials — used by analysts to benchmark 16.02% net margin vs Hanover's 5.22%. Similar community-bank orientation and product mix.
- First Merchants Corporation: Indiana-headquartered community bank with overlapping Midwest branch footprint, comparable commercial banking, mortgage, and wealth management services. Several Merchants Bank executives (e.g., Traci Saunders, John Rinker) previously worked at First Merchants, confirming direct talent and product overlap.
- Customers Bancorp: Public bank with a specialty in multifamily mortgage banking and warehouse lending through its Customers Bank Mortgage segment, closely comparable to Merchants Capital and Merchants' warehouse lending business.
- Old National Bancorp: Indiana-based regional bank holding company operating commercial banking, mortgage, and wealth management across the Midwest. Directly comparable size and product mix to Merchants Bancorp, both anchored in Indiana but pursuing multi-state expansion.
Regional players
- STAR Financial Bank: Indiana-headquartered community bank with commercial and mortgage banking. Several Merchants Mortgage executives (e.g., Ron Berry) previously held senior roles at STAR Financial, indicating directly comparable operating model and customer segments.
Broad incumbents
- Wells Fargo: National bank with significant SBA, mortgage, and commercial banking operations. Multiple Merchants Bank SBA lenders (Brian Konwar, Ron Berry) previously worked at Wells Fargo, and Wells Fargo competes for the same small business and mortgage customers nationwide.
- Huntington Bancshares: Midwest-focused super-regional bank with overlapping commercial, SBA, and mortgage banking products. Directly competitive in Merchants' geographic expansion markets (Ohio, Indiana, Michigan).
- Fifth Third Bancorp: Major Midwest bank with commercial banking, mortgage, and treasury management comparable to Merchants' offerings. John Rinker of Merchants previously served as Commercial Banking Relationship Manager at Fifth Third.
- PNC Financial Services: Super-regional bank with significant Midwest presence competing directly in commercial banking, SBA, and mortgage segments. Multiple Merchants Bank executives (Mark Harville, John Rinker, Ron Berry) previously worked at PNC, and PNC competes for the same Indiana/Midwest business banking customers.
- JPMorgan Chase: National banking incumbent competing across consumer deposits, mortgage, SBA, and treasury management. Merchants Treasury Management Officer Janette Milborn previously worked at JPMorgan Chase, and the bank competes with Chase's digital banking offerings.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights7 records
Customer concentration
Merchants Bank social profiles
Digital presenceMerchants Bank compliance and trust
Trust signalCompliance1 record
Merchants Bank financial estimates
Financial estimateRevenue estimate
Valuation estimate
Merchants Bank leadership team
Management profileNumber of profiles
Profiles19 records
Merchants Bank subsidiaries and ownership
Company hierarchySubsidiaries3 records
Merchants Bank funding detail
Funding detailFunding overview
Funding rounds5 records
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Merchants Bank M&A and investment
M&A and investmentM&A
Investments5 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Merchants Bank
What does Merchants Bank do?
Merchants Bank is a diversified community bank that delivers retail and business deposit products (checking, savings, money market, CDs, HSAs), consumer and commercial loans, SBA 7(a) and 504 small business lending, agricultural lending, retail residential mortgages (Merchants Mortgage), multifamily mortgage banking (Merchants Capital), correspondent and warehouse lending, and the BCU Mortgage Services white-label mortgage program for partner institutions. It serves both individual consumers in Indiana and commercial customers nationwide through its branch network, regional production offices, and digital banking platform.
Is Merchants Bank a public or private company?
Merchants Bank is a public company. It is classified as public and is currently operating.
When was Merchants Bank founded?
Merchants Bank was founded in 1990. It employs 501 to 1,000 people.
Where is Merchants Bank based?
Merchants Bank is headquartered in Carmel, United States, in the North America region.
How does Merchants Bank make money?
Three revenue lines are on record. Net Interest Income is the primary driver. The others are non-Interest Income and dividend Distributions.
Who are Merchants Bank's main competitors?
Direct peers on record are Hanover Bancorp, First Merchants Corporation, Customers Bancorp and Old National Bancorp. STAR Financial Bank is listed as a regional player. Broad incumbents are Wells Fargo, Huntington Bancshares, Fifth Third Bancorp, PNC Financial Services and JPMorgan Chase.
Does Merchants Bank have an API?
No public API is recorded for Merchants Bank.
What industry is Merchants Bank in?
Merchants Bank's product category is Community Banking. Its primary akta.pro industry code is FSABAAAA, Mass-Market Consumer Deposit Banking (Checking/Savings), with a secondary code of FSABAAAB, Retail Lending (Personal Loans, Auto, Credit Lines). Its NAICS code is 52211 and its SIC code is 6022.