Merchants Bancorp (MBIN): ANSOFF MATRIX [Dec-2025 Updated]

You're looking at Merchants Bancorp's next big moves, and honestly, with a $19.4 billion asset base as of Q3 2025, the foundation is rock solid for expansion. As an analyst who's seen a few cycles, I've mapped out exactly where the bank can push for growth across the four classic Ansoff quadrants: digging deeper in current markets, taking existing services to new places, building new offerings like that specialized treasury platform, or even making bold diversification plays. The goal is clear: build on that impressive 36% core deposit jump from 2024 by turning these strategic options into concrete actions below.

Merchants Bancorp (MBIN) - Ansoff Matrix: Market Penetration

You're looking at how Merchants Bancorp (MBIN) can drive more revenue from its current customer base and existing markets. This is about deepening the relationship with the clients already doing business with Merchants Bank of Indiana, Merchants Capital Corp., and the other subsidiaries.

The immediate focus is on deposit gathering within the current footprint. The goal is to increase core deposit growth, aiming to surpass the 36% rise seen in 2024. You saw core deposits reach $12.8 billion as of September 30, 2025, which was a 36% increase from December 31, 2024, representing $3.4 billion in growth over those nine months. This success was attributed to growth in custodial deposits from warehouse customers and strategic initiatives focused on delivering innovative liquidity solutions.

Here's a look at how core deposits have been building up:

The strategy requires focusing on retaining the $12.8 billion in core deposits through innovative liquidity solutions. This high percentage of core deposits, 92% of total deposits as of September 30, 2025, shows strong existing customer stickiness.

For the lending side, deepening relationships with existing mortgage warehouse clients is key to boosting line utilization. The loans receivable portfolio, net of the allowance for credit losses, showed an increase of $161.2 million, or 2%, compared to December 31, 2024, as of September 30, 2025. The growth in total assets to $19.4 billion by the third quarter of 2025 was primarily due to higher balances in the warehouse portfolios.

Aggressively cross-selling commercial and agricultural loans to current Indiana banking customers ties directly into the Banking segment operations. The company's total assets were $19.4 billion as of September 30, 2025.

For the multi-family business, optimizing pricing on bridge loans is a national play. The company executed a credit default swap on a $557.1 million pool of healthcare mortgage loans in the third quarter of 2025 to manage risk and capital efficiency.

• Core deposits reached $12.8 billion as of September 30, 2025.
• Core deposits grew 36% from December 31, 2024, to September 30, 2025.
• Total assets stood at $19.4 billion at September 30, 2025.
• Loans receivable (net of ACL) increased 2% from December 31, 2024, to September 30, 2025.
• The company redeemed Series B Preferred Stock for approximately $125.0 million on January 2, 2025.

Finance: review Q3 utilization rates for warehouse lines against the $5.9 billion unused borrowing capacity reported on September 30, 2025, by next Tuesday.

Merchants Bancorp (MBIN) - Ansoff Matrix: Market Development

You're looking at how Merchants Bancorp can use its existing financing and syndication expertise to enter new geographic markets. This is about taking what you do well-like multi-family and healthcare facility financing-and selling it where you haven't before. The foundation for this expansion is the balance sheet strength Merchants Bancorp has built.

Consider the liquidity position as of September 30, 2025. The unused lines of credit available from the Federal Home Loan Bank and the Federal Reserve Discount window stood at a substantial $5.9 billion, which was 30% of the total assets reported at that date. This liquidity, which grew from $5.0 billion on June 30, 2025, provides the capital base to support out-of-state lending initiatives without immediate deposit reliance. Total assets reached $19.4 billion, the highest level ever reported by Merchants Bancorp.

The current geographic concentration in the multi-family loan portfolio shows existing activity in Indiana, Iowa, Florida, and South Carolina. Market development means pushing beyond these established hubs. The capital base supports this; for instance, the total loans receivable was $10.5 billion on September 30, 2025, while core deposits had grown to $12.8 billion, representing 92% of total deposits.

Here's a quick look at the capacity and scale as of the third quarter of 2025:

For the Low-Income Housing Tax Credit (LIHTC) syndicator service, the platform has already demonstrated national reach, having managed capital for projects in 26 states. However, the first fund closed in partnership with Merchants Bank and four other community banks was specifically focused on providing $22 million in equity to support affordable housing projects across Indiana, covering more than 1,100 units in cities like Indianapolis, Gary, and South Bend. Introducing this service to new state markets means replicating that fund structure with new regional bank partners outside of the initial focus area.

Establishing a dedicated correspondent banking channel is a clear action for reaching smaller, regional banks outside current hubs. Merchants Bancorp already lists Sales Executives for the Central Region and the Western Region, indicating existing, albeit perhaps targeted, out-of-market engagement. The correspondent lending business supports a full suite of Agency products, including Fannie Mae, Freddie Mac, FHA, USDA, and VA programs, alongside Non-Agency offerings like the Merchants Premium Program.

The Mortgage Warehousing segment, which offers warehouse financing, is another area for market development by targeting non-depository financial institutions in new geographies. This segment is a core part of the business, alongside the Multi-family Mortgage Banking segment. The ability to offer warehouse financing is directly supported by the bank's liquidity, including the $5.9 billion in unused capacity.

The expansion strategy into new regions for multi-family and healthcare facility financing can be mapped against the existing loan concentration. The portfolio has significant concentrations in Indiana, Iowa, Florida, and South Carolina. New market development means targeting states with similar demographic or regulatory environments that favor affordable housing development, leveraging the firm's top-tier Freddie Mac lender rankings, such as being the #2 Optigo Targeted Affordable Housing Lender in 2024.

The scale of the syndication business shows potential for new state penetration. In 2024 alone, Merchants Capital surpassed $1.08 billion in tax credit equity raised. This capital raise comprised $900 million in multi-investor offerings, $68.8 million in state credit syndications, and $1.1 billion in proprietary fund investments since the platform launched.

Finance: draft a target list of five new states for LIHTC syndication by next Tuesday.

Merchants Bancorp (MBIN) - Ansoff Matrix: Product Development

You're looking at building out new offerings when Merchants Bancorp (MBIN) already has $12.8 billion in core deposits as of September 30, 2025, representing 92% of total deposits, up 36% since December 31, 2024. This deposit base is the foundation for developing new, higher-margin products to deploy capital against. Total assets stood at a record high of $19.4 billion at that same date.

The focus here is on creating new products for existing markets or new segments, which is the Product Development quadrant of the Ansoff Matrix. The success in existing fee-based services shows a path forward; for instance, syndication and asset management fees in Q3 2025 increased by 165%, or $3.0 million, over the second quarter of 2025.

Launch a specialized treasury management platform for multi-family property managers

This move targets the existing multi-family mortgage banking segment with a new technology offering. The broader property management tech market is projected to reach $41.52 billion in 2025, and research indicates that 80% of third-party managers are centralizing operations, showing a clear demand for integrated solutions. A specialized platform could aim to capture a share of the administrative tasks that software currently cuts by 40%.

Develop proprietary debt funds to complement the existing tax credit equity syndication offerings

Merchants Capital already has a proven track record here, having closed $1.08 billion in fund investments across its offerings for the year ended December 31, 2024. The proprietary fund component of that raise accounted for $1.1 billion in 2024. The first fund launched in partnership with Merchants Bank and four other community banks provided $22 million in equity for seven affordable housing projects in Indiana. As of June 17, 2025, the total equity raised since inception for the platform surpassed $2.4B. Developing more proprietary debt funds allows Merchants Bancorp to deploy its balance sheet alongside investor capital, potentially capturing more of the fee income that saw a 165% quarter-over-quarter jump.

Introduce a high-yield, short-duration certificate of deposit (CD) product to attract new core deposits

With core deposits at $12.8 billion, attracting more, especially short-term, sticky funds is key. The current market shows competitive online banks offering up to 4.25% APY on short-term CDs as of December 2025, while the national average one-year CD yield was 1.92% APY. A high-yield, short-duration product would aim to capture deposits away from the national average and potentially from the $1.1 billion in brokered deposits that decreased by 55% from the end of 2024 to Q3 2025.

Here's a quick look at the competitive deposit landscape as of December 2025:

Create a suite of Small Business Administration (SBA) loan products with a defintely faster approval process

This targets the small business segment with an enhanced process. In Q2 FY2025, SBA 7(a) approvals exceeded $10 billion, and more than 80% of those loans were under $500,000 early in FY2025. The general business loan full approval rate was only 38% in 2023, suggesting a market gap for efficient processing. Merchants Bancorp's $10.5 billion in loans receivable as of September 30, 2025, provides the balance sheet capacity to support this expansion.

Offer structured finance solutions, like Credit Risk Transfers (CRT), to smaller banks

Merchants Bancorp is already using credit protection arrangements, with a balance of $2.4 billion in loans subject to these arrangements as of September 30, 2025, including a recent credit default swap on a $557.1 million pool of healthcare loans. This internal expertise can be productized for smaller institutions. The broader market for banks shifting assets off-balance-sheet via private credit solutions is projected to be a $3 trillion opportunity in 2025, according to one outlook. U.S. banks' committed credit lines to private credit entities reached about $95 billion by the end of 2024, showing the scale of the market for risk transfer mechanisms.

Finance: draft 13-week cash view by Friday.

Merchants Bancorp (MBIN) - Ansoff Matrix: Diversification

You're looking at Merchants Bancorp (MBIN) as it stands at $19.4 billion in total assets as of September 30, 2025, with $13.9 billion in total deposits. The current business structure includes Merchants Asset Management, LLC, which is a starting point for wealth sector expansion.

Acquire a niche asset management firm to enter the private wealth sector for real estate investors.

This move builds upon the existing structure that includes Merchants Asset Management, LLC. Consider the scale of related activity: Merchants Capital provided $7 billion in debt and equity financing in 2024, ending that year with more than $26 billion in assets under management. A niche acquisition targets a specific client base that requires more personalized, high-net-worth services than the current syndication of low-income housing tax credit and debt funds provides.

• Target AUM growth from existing $26 billion baseline (2024).
• Focus on real estate investor private wealth management.
• Leverage $36.31 tangible book value per common share as of Q3 2025.

Establish a dedicated division for equipment leasing and financing outside of real estate.

Merchants Bank Equipment Finance (MBEF) already works with businesses nationwide, financing equipment values from $50,000 to over $10 million. The terms generally run for two to seven years. Expanding this dedicated division means pushing beyond current industry focuses like Construction, Manufacturing, and Healthcare, to capture a larger share of the national market, using the existing $5.9 billion in unused borrowing capacity as immediate support.

Enter the national consumer lending market via a strategic FinTech partnership or acquisition.

The current Banking segment offers retail residential mortgage banking and agricultural lending, but consumer lending is a new frontier. The bank has significant liquidity, with core deposits reaching $12.8 billion as of September 30, 2025, representing 92% of total deposits. This deposit base provides a stable funding source for a national consumer lending push, which could aim to generate non-interest income similar to the $77.3 million in noninterest expense reported for Q3 2025.

Develop a non-agency commercial real estate lending platform for non-government-backed loans.

Merchants Bancorp has a strong agency presence, evidenced by the $373.3 million Freddie Mac-sponsored Q-Series securitization completed on June 5, 2025. Moving into non-agency CRE means originating loans that do not carry government guarantees, which typically command higher yields but carry different risk profiles. The warehouse portfolio, which is exclusively agency-eligible mortgages and commercial loans, stood at a level that contributed to the $213.4 million asset increase from June 30, 2025.

Target international trade finance services for existing commercial clients in the Midwest.

This strategy targets existing commercial relationships, likely within the Mortgage Warehousing or Banking segments. The bank's Q3 2025 net income was $54.7 million. Trade finance introduces cross-border transaction fee income potential. Here's the quick math: if a new international service captures just 1% of the $18.8 billion total assets from Q1 2025 in annual trade volume, that's $188 million in potential activity to support. What this estimate hides is the actual capital charge and regulatory overhead for international operations.

The following table summarizes key financial metrics from the latest available reports to contextualize the scale of Merchants Bancorp as these diversification efforts are considered:

Finance: draft 13-week cash view by Friday.