CARMEL,
Ind., Sept. 7, 2023 /PRNewswire/ -- 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.
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SOURCE Merchants Bancorp