Carmel-based Merchants Bancorp (Nasdaq: MBIN) has announced its PR Mortgage & Investments subsidiary has completed the acquisition of Connecticut-based RICHMAC Funding LLC. The deal had an effect on Merchants Bancorp’s net income, which it reported to be $10.5 million in the third quarter, compared to $11.6 million in the same period last year.
When the deal was announced in August, PR Mortgage & Investments Executive Vice President Michael Dury said "the RICHMAC platform gives our existing customer base access to Freddie Mac and Fannie Mae, which complements our existing FHA lending platform. Furthermore, RICHMAC and its customers, which include some of the country’s largest apartment owners, will now have support from PR and its parent company, Merchants Bank of Indiana. MBI will be providing conventional construction and/or bridge loan products that enhance RICHMAC’s permanent loan products. This acquisition solidifies our commitment to affordable housing and gives the MBI family of companies a full array of affordable housing debt products with FHA, Freddie Mac, Fannie Mae, and conventional bank financing."
Mathew Wambua and Marsha Goff will continue to lead RICHMAC from existing offices in New York and Minneapolis.
In Thursday’s quarterly earnings report, which included a $1.8 million noninterest expense increase the company says reflects — in part — the RICHMAC acquisition, Merchants Chief Executive Officer Michael Petrie said:
Our results through the third quarter of 2017 reflected continued momentum in providing our customers with the banking services they value. We are pleased with the growth we’ve seen this year in all of our segments. Clearly, our multi-family business is having a strong year and mortgage warehousing net income is up 18 percent when mortgage originations are down nationally. We’re also excited to add the RICHMAC team because it gives us new affordable multi-family housing products and an experienced presence in attractive new markets through offices in New York City and Minneapolis-Saint Paul.
You can connect to the company’s third quarter results by clicking here.