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Merchants Bancorp Triumphs with Stock Offering amid Expansion Plans


Robert Tavares

May 14, 2024 - 00:58 am


Merchants Bancorp Announces Common Stock Offering Success Amidst Expansion Efforts

CARMEL, Ind., May 13, 2024 /PRNewswire/ -- In a significant financial move, Merchants Bancorp (Nasdaq: MBIN), a distinguished holding company recognized for its dynamic banking services, has made headlines with the announcement of its latest success in the financial market. The parent entity, operating predominantly through its banking affiliate, Merchants Bank of Indiana, has publicly disclosed the pricing details for its much-awaited underwritten public offering. Setting the stock world abuzz, Merchants Bancorp has determined that 2,400,000 shares of its valuable common stock will be available to investors at an attractive price of $43.00 per share. This decisive action is expected to channel approximately $98,040,000 into the company's reserves, after accounting for standard underwriting allowances yet excluding supplementary expenses for the offering process.

Adding to the offering's appeal, Merchants Bancorp has extended the opportunity for underwriters to purchase an additional allotment of up to 360,000 shares. This option, viable for 30 days following the announcement, allows the purchase at the original public offering price while factoring in the standard underwriting concessions. This strategic maneuver underscores Merchants Bancorp's commitment to fostering a robust financial environment for its current and prospective stakeholders.

Distinguished financial institutions, namely Morgan Stanley, Piper Sandler, and Raymond James, have stepped up as primary executives of the offering, taking roles as lead and joint bookrunning managers respectively. In a landscape where the right partnership can spell the difference between success and stagnation, the involvement of these esteemed market players signifies the offering's soundness and the company's commendable position in the banking sphere.

Merchants Bancorp has earmarked the net proceeds from this stock sale for a series of tactical initiatives. Intent on bolstering its corporate purview, the company has highlighted its plan to leverage the accumulated funds to enhance the bank's balance sheet growth. Such strategic allocation of resources is evidence of Merchants Bancorp's forward-thinking approach and sustained commitment to corporate stability and expansion.

With a firm grip on the reins, Merchants Bancorp has set its sights on finalizing this offering by May 16, 2024. This closure, adhering to customary market conditions, marks a new chapter for the organization, allowing it to deepen its financial roots and continue on its trajectory of strategic growth and innovation.

Additional Information Regarding the Offering

Investors are keenly watching as the offering unfolds under a prophylactic guard of legal compliance. The structural foundation of this financial offering lies in a Form S-3 registration statement (File No. 333-266672), which had gained the green light from the Securities and Exchange Commission (SEC) back on August 17, 2022. With a layering of preliminary prospectus supplements and ancillary documents filed with the SEC, Merchants Bancorp provides investors with a transparent, in-depth understanding of the offering's nuances and the company's overarching mission.

Investors and interested parties may obtain these comprehensive documents at no cost by visiting the SEC's website at In an alternative path to procurement, hardcopies of the preliminary prospectus supplement, the prospectus supplement, and the accompanying prospectus, once available, can be requested from the aforementioned financial facilitators: Morgan Stanley & Co. LLC, Piper Sandler & Co., and Raymond James & Associates, Inc., at their respective addresses and contact information provided in the original documentation.

No Offer or Solicitation

In a cautionary note, Merchants Bancorp makes it clear that the press release serves an informational purpose only and does not act as a commercial offer, an incitement to sell, or a solicitation for offers to purchase any securities. Stressing legal and regulatory compliance, the company emphasizes that no securities transactions will occur in jurisdictions where such offers, solicitations, or sales might violate registration requirements or other local securities laws.

About Merchants Bancorp

Established as a model of performance and reliability by S&P Global Market Intelligence, Merchants Bancorp's headquarters stand proudly in Carmel, Indiana. The company steers an impressive fleet of business segments, efficiently covering multifaceted banking services. The Multi-family Mortgage Banking segment emerges as a robust platform, offering financing and servicing solutions for multi-family housing and healthcare facilities. Furthermore, this segment's activities extend into the orchestration of low-income housing tax credit and debt fund syndication.

Merchants Bancorp's Mortgage Warehouse Financing arm presents specialized services in mortgage warehouse financing, alongside a well-rounded suite of commercial lending and deposit provisions. Its Banking division casts a wide net, encompassing a portfolio lending structure for multi-family and healthcare loans, a spread of retail and correspondent residential mortgage banking, agricultural lending services, and Small Business Administration lending, all rooted in the values of traditional community banking. As of March 31, 2024, Merchants Bancorp boasts $17.8 billion in assets and a notable $14.0 billion in deposits, with its operations conducted through its direct and indirect subsidiaries, including Merchants Bank of Indiana, Merchants Capital Corp., and Merchants Mortgage.

Forward-Looking Statements

The forward march of Merchants Bancorp is adorned with anticipations of future events and a strategic outlook on the company's financial performance. With a distinctive lexicon that includes modal verbs like "may," "might," and "will," alongside terms such as "predict" and "estimate," the corporation's discourse is inevitably characterized by a future-focused perspective. These forward-looking statements, inherently subject to unpredictable market variables and uncertainties, provide a framework for the aspirations and planned initiatives of the company.

Although based in present-day estimations, the tangible outcomes may deviate materially, and these anticipations—though reflective of current managerial beliefs—cannot be construed as irrefutable forecasts. Investors are encouraged to consider the speculative nature of such statements and acknowledge the potential divergence from actual future results. Contributors to potential variations include financial market innovation, regulatory changes, as well as economic and sector-specific shifts that could alter the commercial landscape.

Company filings with the SEC, especially those categorized under "Risk Factors" or the expository "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Merchants Bancorp's Annual Report on Form 10-K, offer an inventory of potential challenges and uncertainties. Investors can glean insights from these documents, which chart potential variables impacting the company's forward trajectory. Given the evolving business environment, the company underlines its policy of not updating or amending any forward-looking statements post-release, thereby reminding stakeholders of the inherent dynamics of predictive narratives.

In a move that encapsulates transparency and communication with its investor base, Merchants Bancorp signs off its announcement reaffirming its corporate identification as a source of banking solutions and a paragon of fiduciary diligence.

Indeed, as Merchants Bancorp navigates through the complexities of the financial sector with its recent stock offering, the company not only solidifies its capital base but also reasserts its position as a venerable institution within the banking industry. With strategic investments and decisions guided by a clear vision for the future, Merchants Bancorp stands as a beacon of stability and growth in an ever-fluctuating economic climate.

Investors and financial aficionados alike will continue to keep a keen eye on Merchants Bancorp's operational strides, as the company continues its business endeavors, ever with a focus on maximizing shareholder value and cementing its place in the competitive banking landscape.


With Merchants Bancorp's announcement marking a significant episode in its growth narrative, the company underscores its commitment to advancing its corporate objectives and fortifying its financial framework. The careful calibration of its stock offering price point and the strategic use of proceeds illustrate a dedication to calculated corporate decision-making. As the offering concludes, stakeholders wait with expectation for the positive ripple effects it may have on Merchants Bancorp's future contributions to the banking industry and the broader economic domain.

As the landscape of corporate finance continues to evolve, Merchants Bancorp's story—a tale of prudent planning, ambitious vision, and transparent communication—serves as a case study in how to navigate the rich waters of public offerings and shareholder engagement. With the public offering poised to close soon, the business community watches in anticipation, ready to witness how this decisive step will further shape Merchants Bancorp's operational success and financial stewardship in the years to come.

SOURCE: Merchants Bancorp