Developments to provide more than 650 affordably priced units for NYC residents CARMEL, IN (Mar. 29, 2019) – Mortgage banking firm Merchants Capital has secured financing for two affordable housing developments, totaling more than $180.6 million, in the New York City area: MEC 125th Street and Caton Flats. Both transactions executed a novel risk-share structure between Merchants Capital, Freddie Mac and New York City Housing Development Corporation (NYCHDC) as the local housing finance agency. These risk-share loans are structured as permanent forward commitments to take out the new construction loans. “The creativity of these two transactions is unparalleled. We are incredibly thankful to our partners at Freddie Mac and NYCHDC for their inventiveness, as well as to our clients for their commitment to ensuring the development of truly transformative projects,” said Mathew Wambua, executive vice president at Merchants Capital. “These projects are a testament to our continued mission to provide quality affordable housing to workforce and low-income families.” Located in East Harlem, MEC 125th Street is a 19-story, 404-unit mixed-use, mixed-income complex that will bring much needed affordable and market-rate units to this revitalized neighborhood. In coordination with NYCHDC, New York City Housing Preservation and Development (NYCHPD), New York City Economic Development Corporation (NYC EDC), Freddie Mac, Citi Community Capital, Blank Rome LLP and Sidley Austin LLP, MEC 125th Street is key in providing greater affordability to residents in Manhattan. The development was financed through a $120 million, 35-year Freddie Mac Forward Commitment loan secured by Merchants Capital on behalf of The Richman Group Development Corporation. “We are excited to be partners in what will be a remarkable addition to thriving East Harlem and to be part of the community,” said Kristin Miller, president of The Richman Group Development Corporation. “This is the culmination of the efforts of many talented people and organizations, as well as over 10 years of hard work and perseverance. It will be amazing to see this project come to fruition.” Fifty percent of the project’s apartments will be offered at rents ranging from 37 percent of the area’s annual median income (AMI) to 80 percent AMI. An additional 23 percent of units will have rents ranging from 130 percent AMI to 145 percent AMI, and the remaining 27 percent will be market rate. The development site is conveniently located one block from the 125th Street Subway and two blocks from Harlem 125th Metro North Station, providing easy access throughout the city and the greater New York Area. The second development, Caton Flats, is the much-anticipated revitalization of the Flatbush Caton Market (FCM), a destination of Caribbean commerce, entertainment and culture in New York City. The approximately 280,000-square-foot, 255-unit project is being developed by BRP Development, Urbane Development and the Caribbean American Chamber of Commerce and Industry (CACCI) in coordination with the NYCHDC, the NYCHPD, NYC EDC, Freddie Mac, Citi Community Capital, Blank Rome LLP and Sidley Austin LLP. Loan proceeds will fund the development of mixed-income housing, ground floor retail, space for community groups, a business incubator, and a new home for the Flatbush Caton Market. Merchants Capital secured the loan through the new Freddie Mac Non-LIHTC Forward Commitment on behalf of BRP Development Corporation. Non-LIHTC forwards are unfunded, forward commitments for affordable housing developed by nonprofits and subsidized, rent-restricted affordable housing that for-profit developers can use for their new multifamily construction or substantial rehabilitation projects. “The financing secures the future of Caton Flats as an incredible source of affordable housing and economic opportunity for community residents and entrepreneurs,” said Andy Cohen, director of development for BRP Companies. “In addition to providing the neighborhood with much-needed housing, Caton Flats will also serve as a center of commerce, entrepreneurship and culture for Flatbush and the surrounding community.” Ten percent of the Caton Flats apartments will be priced affordably at 37 percent AMI. Fifteen percent of the units will be set at 57 percent AMI, and another 25 percent set at 90 percent AMI. The other half of the Caton Flats apartments will have rents capped at 130 percent AMI.

CARMEL, Ind. (Mar. 29, 2019) - Mortgage banking firm Merchants Capital announces today that it has reached a major milestone. As of Dec. 28, 2018, Merchants Capital, formerly PR Mortgage & Investments, now services loans in excess of $10 billion for Merchants Bank and other investors. Since its inception in 1990, Merchants Capital has originated and closed more than $13.8 billion in loans. In 2018 alone, Merchants Capital closed approximately 207 loans and generated nearly $2.6 billion in new loan production nationwide. In 2017, the company closed more than $1.7 billion in new loans. “We are extremely proud of our servicing teams for their continued commitment to providing the highest quality of service to our borrowers,” said Michael R. Dury, president of Merchants Capital. “Reaching this milestone is not only a testament to our highly driven team, but also to our valued customers who trust us and our skilled expertise in providing a direct way to access financing via our bank, Merchants Bank, with a single point of contact.” Merchants Capital provides servicing for a variety of loan types – including Fannie Mae, Freddie Mac and FHA – to meet the needs of a diverse portfolio of affordable, multifamily and healthcare housing loans. The company’s team of professionals specialize in managing the needs of multifamily and healthcare facility loans, providing skilled expertise to investors and borrowers. This milestone comes on the heels of the company’s rebrand to Merchants Capital, which renewed and elevated the company’s commitment to providing and servicing multifamily housing. Merchants Capital also recently announced its new $25 million, 100,000 square-foot headquarters in Carmel, Indiana, opening in 2019. The development will bring an estimated 150 bank employee jobs to the Carmel Midtown area.

CARMEL, Ind. (Mar. 26, 2019) – Leading mortgage banking company Merchants Capital today announces the hiring of Lisa Lundeen as vice president of government-sponsored enterprise (GSE) portfolio management and Toni Gilbert as vice president of insurance compliance to the company’s Saint Paul, Minnesota office. These are both newly created roles. Lundeen brings more than 12 years of multifamily servicing and asset management experience to the Merchants Capital team, with a background in both permanent and construction loans, as well as knowledge of investor accounting and reporting for Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) assets. Since stepping into the role, Lundeen has transformed the GSE Portfolio Management team, which is responsible for performing financial analyses, completing inspections, monitoring repairs and escrows, processing loan events and managing risks of the company’s Freddie Mac and Fannie Mae portfolios. Lundeen will be a critical leader in improving company procedures, as well as leading the implementation of a new servicing and database management application. With the conversion to Precision LM, Merchants continues to demonstrate its commitment to leading the industry in loan servicing. Gilbert’s addition will allow the Merchants Capital team to streamline the process for loan closings and post-closing insurance renewals. Her responsibility will include reviewing insurance information to ensure compliance with Freddie Mac, Fannie Mae, the Department of Housing and Urban Development (HUD) and Merchants Bank standards. Gilbert has 16 years of insurance compliance and multifamily escrow industry experience, as well as a vast knowledge of lender requirements. “We’re excited to have Lisa and Toni in these newly created positions as we continue to expand our Twin Cities office with top talent,” said Michael Dury, president of Merchants Capital. “Providing great service to our customers is, and always will be, a top priority at Merchants Capital.  Lisa and Toni’s unique backgrounds give them an excellent perspective that will greatly impact our day-to-day activities and allow us to deliver a better product to our customers. Lundeen is a 2002 graduate of the University of St. Thomas in Saint Paul, Minnesota, where she earned a Bachelor of Arts in Business Administration degree specializing in Marketing Management. She is currently enrolled in the Mortgage Bankers Association Future Leaders Program, an executive leadership development program that delivers a comprehensive curriculum for selected managers who have shown leadership interests and abilities. Gilbert graduated from Mankato State University in Mankato, Minnesota, with a Bachelor of Science in Business Management degree and a minor in Computer Science. She is a member of the MBA Insurance Stakeholders, holds a Certified Insurance Service Representative (CISR) designation and is licensed as a Minnesota Resident Insurance Producer.

Merchants Bank of Indiana is committed to the communities we serve.  In 2018, we launched the MPACT Program to foster and support our corporate initiative of Positively Advancing Communities Together through employee volunteer service hours. With the launch of the MPACT Program, we wanted to encourage and foster the ideals of community service and adopted a new culture of volunteerism by donating both time and resources to encourage our employees to get more involved and make an “MPACT” in the communities where they live, work and play.  Each Merchants employee is awarded 16 PTO hours per year to use towards local volunteer services. In keeping with the mission and core values of Merchants Bank and its employees, involvement within our communities is focused on advancing affordable housing, connecting people in their communities, promoting and improving education and financial literacy, stimulating community and economic development, and supporting the interests of employees and customers. Last month, we hosted the first-ever MPACT Awards to recognize our dedicated employees and thank them for their valued service. We named four 2018 MPACT Catalyst winners.  These individuals were selected from various markets for making an impact in the program or creating a change in the mindset for volunteer efforts. Aretha Hutchins (Merchants Capital, Carmel) Kelley Leix (Merchants Bank, Carmel) Dinese Watson (Merchants Bank, Lynn) Josh Canan (Merchants Capital, Saint Paul) We also recognized Angela Mazura (Merchants Mortgage, Carmel) as our 2018 Volunteer of the Year and awarded her with a surprise $1,000 check for her incredible efforts as a mentor for a future homeowner through Habitat for Humanity of Greater Indianapolis.         Over the course of 2018, our team members joined together for a variety of activities where groups of volunteers could participate.  This included the MPACT Service Day to preserve, enhance and develop high-quality affordable housing in Indianapolis’ best neighborhoods, a Habitat for Humanity home rehabilitation project, and a backpack give-away for IPS students in Indianapolis through Indy Backpack Attack and Partners in Housing. We also provided meals at St. Vincent House for families with seriously ill family members experiencing financial hardship, adopted several families to provide Thanksgiving meals and Christmas presents, and collected donations for the Horizon House – just to name a few. In 2018, more than 50 employees logged a total of 520 volunteer hours in the communities we serve. Nearly 400 of those hours were put towards Community Reinvestment Act (CRA) community development in Indianapolis, and another 41 hours were dedicated to CRA community development in Lynn, Indiana. CRA is federal regulation designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.

Merchants Bancorp has once again been named by S&P Global Market Intelligence as the #1 Best-Performing Community Bank in the State of Indiana for 2018, #6 nationally. Rankings are based on financials year ended December 31, 2018 for banks with $3B to $10B in assets. See the rankings at S&P Global.

Raymond James has announced the winners of the 2018 Raymond James Community Bankers Cup. We are delighted that Merchants Bancorp has been recognized as a 2018 winner. The award recognizes the top 10% of community banks based on various profitability, operational efficiency, and balance sheet metrics. The pool of banks considered for recognition includes all exchange-traded domestic banks, excluding mutual holding companies and potential acquisition targets, with assets between $500 million and $10 billion as of December 31, 2018. Congratulations to all of our wonderful employees for making it another year of outstanding performance. For more information...investors.merchantsbankofindiana.com

We are pleased to announce that Merchants Capital's own David Hines has earned HUD’s Deputy Chief Underwriter designation!  This is a tremendous accomplishment and one that takes years of hard work and dedication.  David has been with Merchants Capital since 2011.  In his experience as an underwriter, he has underwritten all types of loans from acquisition and refinance transactions, to substantial rehab and new construction.  A graduate with Highest Distinction from the Indiana University School of Business, Mr. Hines has structured over $1 billion in commercial real estate financing over his career at Merchants Capital. David Hines David's experience with complex transactions has been an invaluable resource for our underwriting staff and we celebrate his success. THANK YOU DAVID AND CONGRATULATIONS! DAVID HINESVICE PRESIDENT, FHA DEPUTY CHIEF UNDERWRITERCarmel, Indiana