CARMEL,
Ind., Aug. 1, 2024 /PRNewswire/ -- (Nasdaq:
MBIN) Leading financial services provider Merchants
Capital today announced the execution of a $543.5 million Credit Risk Transfer (CRT),
secured by 41 performing multifamily bridge loans. This is the
second multifamily CRT and the third overall completed by
Merchants' Capital Markets platform, which has executed nearly
$4 billion in
securitizations.
The transaction, which closed in March, was structured as a
Credit Default Swap (CDS), with $76
million in credit protection purchased from a large
institutional investor as a first-loss risk transfer. Bridge loans
from 53 properties are included in the portfolio, with a total of
7,040 units from 14 states, the largest concentrations located in
Indiana, South Carolina and Illinois.
"The Capital Markets team continues to add value, demonstrate
innovation and fuel lending across Merchants Capital," said
Evan Gibson, Executive Vice
President, Capital Markets at Merchants Capital. "We are very
pleased with the growth of our platform and efficiency in providing
capital relief, which provides Merchants Capital with capacity for
additional loan growth."
The transactions led by Merchants' Capital Markets platform,
including this CRT, support Merchants Capital's production, which
totaled nearly $7 billion in
2023.
To learn more about Merchants Capital and its services,
visit www.merchantscapital.com or find Merchants Capital
on Facebook, X, LinkedIn and Instagram.
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 Multifamily Mortgage Banking that primarily
offers multifamily housing and healthcare facility financing and
servicing (through this segment it also serves as a syndicator of
low-income housing tax credit and debt funds); Mortgage Warehousing
that offers mortgage warehouse financing, commercial loans, and
deposit services; and Banking that offers retail and correspondent
residential mortgage banking, agricultural lending, and traditional
community banking. Merchants Bancorp, with $18.2 billion in assets and $14.9 billion in deposits as of June 30, 2024, 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, 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.
ABOUT MERCHANTS CAPITAL
With more than 30 years of success built on putting people
first, Merchants Capital is a proven leader in financing for
multifamily housing nationwide. Our licenses with Fannie Mae,
Freddie Mac and HUD/FHA, in addition to our bank's balance sheet
products, allow us to offer custom solutions with agility and ease
of execution, expanding access to housing in meaningful and
impactful ways. Recognized as a top five affordable lender,
Merchants Capital pairs our comprehensive debt offerings with
in-house tax credit equity to provide a one-stop-shop for
developers and owners. To learn more about Merchants Capital,
visit www.merchantscapital.com.
Forward-Looking Statements
This press release
contains forward-looking statements which reflect Merchants
Bancorp'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 Merchants Bancorp 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
Merchants Bancorp'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 Merchants Bancorp'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 we do 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