Merchants Bank of Indiana Receives Superior Rating from IDC Financial Publishing, Inc.

CARMEL, Ind., May 10, 2023 /PRNewswire/ -- Merchants Bank of Indiana (NASDAQ: MBIN) ("Merchants Bank") is proud to announce it has received a superior rating from the nationally recognized bank rating agency IDC Financial Publishing, Inc. Merchants Bank of Indiana received a 300 rating, the highest possible safety rating awarded from the agency.

Since 1985, IDC Financial Publishing, Inc. (IDC) has been rating the safety and soundness of over 10,000 financial institutions across the country. Each quarter, IDC evaluates financial institutions based on the elements of "CAMEL," a unique analysis of 24 key financial ratios. Banks are then given safety ratings from 1 (the lowest) to 300 (the highest), falling into one of six categories: Superior, Excellent, Average, Lowest Ratios and Rank of One.

Each of the CAMEL analysis' elements are the foundation of financial ratios that measure each institution. These ratios have a significant impact on the quality of a financial institution. According to the IDC, CAMEL specifically measures the following:

• Capital risk/requirements: Credit and interest rate risk as well as estimates risk in the asset base;
• Adequacy of capital: The levels of delinquent loans, nonaccrual loans, restructured and foreclosed assets relative to loan loss reserves and capital;
• Margins: The spreads between operating profit and net operating revenues, after-tax return on earning assets less after-tax cost of funding, and the return on equity (ROE) compared to estimated cost of equity capital (COE);
• Earnings returns: The success of the bank's operating and financial strategies; and
• Liquidity: The balance sheet cash flow as a percent of Tier I capital and loans compared to stable deposits and borrowings, plus estimated unused lines of credit at the Federal Home Loan Bank.

Merchants Bank is no stranger to receiving high honors from IDC. Since 2009, the bank has consistently earned superior ratings every quarter, and for the past 12 consecutive quarters, it has been awarded its highest rating of 300.

"At a time when faith in the American banking system is of utmost importance, Merchants Bank of Indiana is honored that IDC has rated us superior, a ranking we've consistently held since 2009," said Michael F. Petrie, Merchants Bancorp Co-Founder, Chairman and CEO. "This recognition is further proof that Americans across the nation can confidently put their trust in Merchants Bank of Indiana. Our assets remain safe, stable and secure and we look forward to continuing our service to our customers for more decades to come."

As a whole, Merchants Bancorp has been recognized nationally as one of the top-performing public banks in the U.S. by S&P Global Market Intelligence. Locally, Merchants Bank of Indiana was selected as a Best Place to Work in Indiana for seven consecutive years, recognized as an Indianapolis Top Workplace in 2023, and chosen as an honoree for the Indiana Bankers Association Commitment to Community Award in 2020.

To learn more about Merchants Bank of Indiana, visit www.merchantsbankofindiana.com or find Merchants Bank on Facebook, LinkedIn, Twitter and Instagram.

ABOUT MERCHANTS BANK OF INDIANA
Ranked as one of the top-performing public banks in the U.S. by S&P Global Market Intelligence, Merchants Bank of Indiana focuses on several segments of the banking industry, including retail and correspondent residential mortgage banking, multifamily mortgage banking, business banking (including small business lending), agricultural lending, mortgage warehouse financing, and traditional community banking. Merchants Bank of Indiana conducts business from its six Central Indiana banking centers and various regional production offices. Additional information can be found at www.merchantsbankofindiana.com. Member FDIC | Equal Housing Lender

SOURCE Merchants Bancorp