CARMEL, Ind., Sept. 7, 2023 - Merchants Bancorp (Nasdaq: MBIN)("Merchants"), a registered bank holding company and the parent company of Merchants Bank of Indiana and Farmers-Merchants Bank of Illinois ("Farmers-Merchants"), announced today that Farmers-Merchants has entered into an agreement with Bank of Pontiac, headquartered in Pontiac, Illinois, for Bank of Pontiac to acquire Farmers-Merchants' branch locations in Paxton, Melvin, and Piper City, Illinois, and into an agreement with CBI Bank & Trust, headquartered in Muscatine, Iowa, for CBI Bank & Trust to acquire Farmers-Merchants' branch located in Joy, Illinois.
In addition to the branches, Bank of Pontiac will acquire approximately $157 million in deposits and $22 million in loans, and CBI Bank & Trust will acquire approximately $62 million in deposits and $27 million in loans from Farmers-Merchants.
"We believe this transaction will be beneficial to both Farmers-Merchants and Merchants by allowing Merchants to focus on its core business of single and multi-family mortgage lending," said Michael Petrie, Chairman of Merchants. "The agreement strategically aligns Farmers-Merchants with institutions that share a similar business model and will provide Farmers-Merchants the ability to offer additional products to its customers. Both Bank of Pontiac and CBI Bank & Trust, like Farmers-Merchants, are deeply rooted in similar communities and share a strong commitment to serving their local markets. Farmers-Merchants and its employees have played a valuable role in Merchants' success and they will continue to thrive with their new partners."
Terms of the agreements are not being disclosed. The acquisitions are subject to customary closing conditions, including regulatory approvals, and are expected to close in the first quarter of 2024. Krieg DeVault LLP served as legal counsel for Merchants and Piper Sandler served as financial advisor. Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel and Cummings & Company, LLC served as financial advisor for each of Bank of Pontiac and CBI Bank & Trust.
ABOUT MERCHANTS BANCORP
Ranked as a top performing U.S. public bank by S&P Global Market Intelligence, Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana operating multiple segments, including Multi-family Mortgage Banking that offers multi-family housing and healthcare facility financing and servicing; Mortgage Warehousing that offers mortgage warehouse financing; and Banking that offers retail and correspondent residential mortgage banking, agricultural lending, and traditional community banking. Merchants Bancorp, with $15.9 billion in assets and $13.1 billion in deposits as of June 30, 2023, conducts its business primarily through its direct and indirect subsidiaries, Merchants Bank of Indiana, Merchants Capital Corp., Merchants Capital Investments, LLC, Merchants Capital Servicing, LLC, Merchants Asset Management, LLC, Farmers-Merchants Bank of Illinois, and Merchants Mortgage, a division of Merchants Bank of Indiana. For more information and financial data, please visit Merchants' Investor Relations page at investors.merchantsbancorp.com.
Forward-Looking Statements
This press release contains forward-looking statements which reflect management's current views with respect to, among other things, future events and financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, management cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although Merchants believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated in these forward-looking statements, including the impacts of factors identified in "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Merchants' Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission. Any forward-looking statements presented herein are made only as of the date of this press release, and Merchants does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
SOURCE Merchants Bancorp
