It divests several branches to streamline operations
Merchants Bancorp has announced a strategic move to streamline its focus on its core mortgage lending business.
As part of the initiative, Farmers-Merchants Bank, a subsidiary of Merchants, has entered into agreements to divest several of its branch locations. Bank of Pontiac will acquire two of Farmers-Merchants’ branches in Illinois. The deal includes the transfer of approximately $157 million in deposits and $22 million in loans.
Additionally, Iowa-headquartered CBI Bank & Trust will take over Farmers-Merchants’ branch in Joy, Ill., along with approximately $62 million in deposits and $27 million in loans.
Merchants chairman Michael Petrie said this strategic move allows Merchants to sharpen its focus on its primary business of single and multifamily mortgage lending.
Based in Indiana, Merchants offers multifamily and healthcare facility financing and servicing, as well as mortgage warehouse financing. The bank also provides retail and correspondent residential mortgage banking, agricultural lending, and traditional community banking.
“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,” Petrie added. “Farmers-Merchants and its employees have played a valuable role in Merchants’ success, and they will continue to thrive with their new partners.”
While the specific terms of the agreements remain undisclosed, the bank said it expects the acquisitions to be completed by the first quarter of 2024.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
