CARMEL,
Ind., March 13, 2023 /PRNewswire/ -- Merchants
Bancorp ("Merchants") (Nasdaq: MBIN), parent company and registered
bank holding company of Merchants Bank of Indiana ("Merchants Bank"), today confirmed
that its liquidity remains strong despite recent market concerns
facing other financial institutions.
"Merchants' business model is truly unique and positions us well
to withstand rapidly changing market dynamics. Not only do we
have significant sources of liquidity, the vast majority of our
loan and securities portfolio have variable rates that reprice
within 30 days to constantly reflect current market values.
Our model intentionally minimizes interest rate risk by
conservatively matching the duration of assets and liabilities,"
said Michael F. Petrie, Chairman and
CEO of Merchants.
- At December 31, 2022, Merchants
had $3.1 billion in unused borrowing
capacity with the Federal Home Loan Bank and the Federal Reserve
discount window, based on available collateral.
- Merchants' most liquid assets are in cash, short-term
investments, including interest-bearing demand deposits, mortgage
loans in process of securitization, loans held for sale, and
warehouse lines of credit included in loans receivable. Taken
together with its unused borrowing capacity, these totaled 54% of
its $12.6 billion total assets at
December 31, 2022.
- As of December 31, 2022,
approximately 93% of Merchants' loan portfolio reprices within 30
days. Additionally, approximately 79% of its investment securities
reprice within 30 days, with none maturing in more than 2
years.
- Merchants reported minimal Accumulated Other Comprehensive
Losses ("AOCI") of $10.5 million as
of December 31, 2022, related to
unrealized losses in its securities portfolio. This represented
less than 1% of its total investment securities and only 3% of its
securities available for sale, which is significantly lower than
industry averages.
- In addition to the $250,000 of
insurance available to depositors through the Federal Deposit
Insurance Corporation ("FDIC"), Merchants also offers its customers
an opportunity to insure up to $100
million through its Insured Cash Sweep ("ICS") program that
extends FDIC protection.
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 $12.6 billion in assets and $10.1 billion in deposits as of December 31, 2022, 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, such as
the potential impacts of the COVID-19 pandemic. 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 the Company 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 the COVID-19
pandemic, such as the severity, magnitude, duration and businesses'
and governments' responses thereto, on the Company's operations and
personnel, and on activity and demand across its businesses, and
other factors identified in "Risk Factors" or "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in the Company's 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 the Company 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/merchants-bancorp-confirms-its-liquidity-remains-strong-301770449.html
SOURCE Merchants Bancorp
