Merchants Bank

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.

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

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

• Community banking services
• Residential mortgage lending
• SBA small business loans
• Multifamily mortgage banking
• Agricultural lending

Headquarters

HQ city

Carmel

HQ country

United States

HQ region

North America

Offices10 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Marketing or Sales, Technology or R&D, Others

Revenue model

1. 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.
2. 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.
3. 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

Go-to-market motion2 records

Distribution channels6 records

Marketing channels7 records

Core 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

Named customers11 records

Segments6 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature4 records

Partnerships

Eight partnerships are on record, tiered core, flagship and minor.

• Federal Home Loan Bank of IndianapoliscoreStrategic or Co-development Partner · 4 September 2025Merchants 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 AthleticsflagshipGTM or Marketing Partner · 21 August 2025Merchants 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 InstitutionscoreChannel Partner/ Reseller/ Distributor · 23 August 2022BCU 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)coreTechnology or IntegrationMerchants 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 IndianapolisminorStrategic or Co-development PartnerMerchants 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 AchievementminorStrategic or Co-development PartnerMerchants 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 PropertiesminorStrategic or Co-development PartnerMerchants 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 MaecoreStrategic or Co-development PartnerMerchants 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

Direct 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

• Xx.com/merchantsbankin
• YouTubeyoutube.com/channel/UCnfH15vAfwE1x9b8tYdkFxg
• Facebookfacebook.com/merchantsbankin
• LinkedInlinkedin.com/company/merchants-bank-of-indiana
• Instagraminstagram.com/merchantsbankin

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles19 records

Subsidiaries3 records

Funding overview

Funding rounds5 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments5 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Merchants Bank