# Merchants Bancorp: AI strategy

Source: https://www.bankingnewsai.com/banks/merchants-indiana
Last updated: Oct 14, 2026

*A multifamily and mortgage-warehouse specialist posting record assets and tangible book value for a 30th straight quarter, whose short-duration, securitisation-driven model is built on process speed, with no disclosed AI programme.*

## How is Merchants Bank of Indiana using AI?

Merchants Bancorp, the Carmel, Indiana parent of Merchants Bank of Indiana, is a different animal from the community banks around it in the Federal Reserve's ranking: its three segments are multifamily mortgage banking, which originates, services and securitises multifamily and healthcare-facility loans and syndicates low-income housing tax credit funds, mortgage warehousing, which finances other lenders' pipelines, and banking, which holds portfolio loans and correspondent residential mortgages. That model produced second-quarter 2026 net income of $78.3 million, up 106% from a year earlier, or $1.48 per diluted share, up 147%, total assets of $21.2 billion, a fifth consecutive quarterly record, tangible book value per share of $39.93, a 30th consecutive record, liquidity of $13.0 billion, or 61% of assets, and a fifth straight quarterly decline in criticised loans after a 2025 in which net income had fallen 32% on a credit-provision spike. Chairman and CEO Michael Petrie credited 'the strength of our balance sheet, the benefit of improved credit metrics, and ongoing momentum in our business', and president and COO Michael Dunlap said the 'diversified business model continues to create multiple sources of earnings support in the current rate environment' with 10-year Treasury rates elevated. American Banker's top-performer analysis attributes the returns to a deliberately short-duration book across multifamily and warehouse lending. The company's filings and releases describe technology only in generic terms; there is no AI programme, leader, vendor or budget in them, and its customer content is wire-fraud guidance and rate promotions. Information technology sits under Kevin Langford, executive vice president and chief administrative officer, and the 2026 proxy names no chief information, data or AI officer. Its 2025 10-K does carry a risk factor headed 'Adoption of AI may present significant challenges relating to compliance risk, credit risk, reputation risk, and operational risk', but it has been in the filings since the 2023 10-K and describes the industry's AI use cases (chatbots, fraud detection, credit scoring) rather than any of its own. The Q2 2026 10-Q does not mention AI at all. The technology deals on record are not AI: in June 2025 the bank selected Clarifire's workflow-automation platform for loss mitigation, in August 2025 Alkami reported that MANTL-based online account opening raised more than $500 million of deposits in six weeks, and in September 2025 its mortgage division went live on Blue Sage's cloud digital lending platform for a new jumbo correspondent programme, with wholesale and retail channels to follow, and in August 2026 Blue Sage reported that jumbo correspondent volume had grown more than 200% since mid-2025, which it credits to workflow automation and standardised processes rather than AI. Merchants Bank of Indiana is an Indiana state nonmember bank supervised by the FDIC and the Indiana Department of Financial Institutions, with which it held a memorandum of understanding from 30 June 2025 until early 2026 after mortgage-fraud-related credit losses; its Ginnie Mae, Fannie Mae and Freddie Mac programmes also bring agency counterparty requirements. Treat this as a thin AI record for a bank whose edge is balance-sheet velocity.

*Thin public record: No earnings-call transcripts or AI remarks found for its last four quarters, a 10-K whose only AI passage is a generic risk factor repeated since the 2023 filing, no named AI leader, vendor or budget, and three disclosed technology deals (Blue Sage, Clarifire, Alkami with MANTL), none described as AI.*

## At a glance

| Field | Value |
| --- | --- |
| Lead bank | Merchants Bank of Indiana |
| Ticker | MBIN |
| Headquarters | Carmel, IN |
| Consolidated assets | $21,171 million |
| Federal Reserve rank | 93 |
| Charter | Indiana state nonmember bank (FDIC) |

## Key points

- No AI programme, leader, vendor or budget disclosed; the 2025 10-K's AI risk factor is generic and names no AI use of its own.
- Model: multifamily and healthcare mortgage banking with securitisation, mortgage warehousing and portfolio banking; short-duration assets.
- Q2 2026 net income $78.3 million ($1.48 per share, +147% year on year); total assets a record $21.2 billion; tangible book value $39.93, a 30th consecutive record.
- Liquidity of $13.0 billion (61% of assets) with $5.5 billion of unused FHLB and discount-window capacity.
- Credit repair: fifth consecutive quarterly decline in criticised loans after 2025 net income fell 32% on provisions.
- Dividend raised 10% in February 2026, the eighth consecutive annual increase.
- Blue Sage digital lending platform live for jumbo correspondent lending since September 2025; rollout to wholesale and retail channels planned.
- The AI risk factor ('Adoption of AI may present significant challenges...') first appeared in the 10-K for 2023, filed 12 March 2024, and is repeated in the 2024 and 2025 10-Ks; the 2022 10-K had no AI passage and the Q2 2026 10-Q has none.
- Mortgage Warehousing funded $33.0 billion of loan principal in 2023, $45.6 billion in 2024 and $66.3 billion in 2025, and $42.5 billion in the first half of 2026; loans are typically held under 30 days before sale to an investor.
- Servicing portfolio at 30 June 2026: $21.5 billion serviced for others and $4.3 billion sub-serviced, primarily Ginnie Mae, Fannie Mae and Freddie Mac loans; the 10-K calls Merchants Capital one of the largest agency servicers.
- Information technology, consumer and commercial banking, marketing and project delivery report to Kevin Langford, executive vice president and chief administrative officer, who was chief information officer at First Financial Bank before joining in 2017; no chief data, AI or technology officer is named in filings.
- Mortgage fraud and suspected fraud among multifamily borrowers drove a $43.1 million rise in the Q2 2025 provision and $46.1 million of charge-offs; the bank signed a memorandum of understanding with the FDIC and Indiana regulator on 30 June 2025, terminated in the first quarter of 2026.
- Headcount rose from 618 (2023) to 663 (2024) and 735 (2025) employees, 424 of them in central Indiana, while the 10-K says core processing, mortgage servicing, wire, mobile and online banking, web hosting and deposit processing are bought from third parties.

## Timeline

- Aug 27, 2026 — **Blue Sage reports 200%+ jumbo correspondent volume growth** Vendor-reported: correspondent volume up more than 200% since the mid-2025 implementation, handled by the existing team through workflow automation and standardised processes; no AI is claimed. ([Blue Sage Solutions](https://bluesageusa.com/news/merchants-bank-grows-jumbo-correspondent-lending-volume-over-200-with-blue-sage))
- Aug 7, 2026 — **Second-quarter 2026 10-Q has no AI language** The filing reports $42.5 billion of warehouse funding and $21.5 billion of loans serviced for others at 30 June 2026 and does not mention AI. ([Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926092702/mbin-20260630x10q.htm))
- Jul 28, 2026 — **Second-quarter 2026 results** Net income $78.3 million; record assets and tangible book value; criticised loans down again. ([Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html))
- May 7, 2026 — **First-quarter 2026 10-Q** 'AI' appears only in the abbreviations list; there is no discussion of AI use or risk. ([Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926057107/mbin-20260331x10q.htm))
- Apr 28, 2026 — **First-quarter 2026 results** Net income $67.7 million; $1.25 per diluted share; the 2025 memorandum of understanding with the FDIC and Indiana regulator was terminated during the quarter. ([Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-first-quarter-2026-results-302755998.html))
- Apr 10, 2026 — **2026 proxy names the executive who oversees technology** Kevin Langford, executive vice president and chief administrative officer since 2017, oversees information technology and the project delivery team; the executive-officer list has no chief information, data or AI officer. ([Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926042047/tm261436d1_def14a.htm))
- Feb 27, 2026 — **2025 10-K repeats the AI risk factor** AI adoption 'may present significant challenges' across compliance, credit, reputation and operational risk; the passage cites accountability, explainability, bias, privacy and third-party risks but describes no AI use by the company. Headcount 735; an Information Security Officer under the chief administrative officer runs a CIS- and NIST-based programme overseen by an IT committee that includes the president and COO. ([Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926021549/mbin-20251231x10k.htm))
- Feb 19, 2026 — **Dividend raised 10% to 11 cents** Eighth consecutive annual increase after 2025 net income fell 32% on provisions. ([Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-increases-quarterly-common-dividend-by-10-declares-quarterly-common-and-preferred-dividends-302692892.html), [Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/merchants-bancorp-rally-testing-much-125500408.html))
- Jan 28, 2026 — **Fourth-quarter 2025 results** Total assets a record $19.4 billion; criticised loans down 13%; record multifamily gain on sale. ([Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-fourth-quarter-2025-results-302672800.html))
- Dec 18, 2025 — **HousingWire reports Merchants Bank chose Clarifire for loss mitigation** The bank selected the Clarifire workflow platform for real-time rules application and automation in loss-mitigation and default processes; the article's AI features (call transcription) are a vendor product, and the bank has not said it uses them. ([HousingWire](https://housingwire.com/articles/clarifire-ai-automation-2025))
- Sep 17, 2025 — **Blue Sage digital lending platform goes live** Powers a newly launched jumbo correspondent lending programme from loan registration through purchase, with a seller/TPO portal; the bank plans to extend it to wholesale and retail lending. ([Blue Sage Solutions (PR Newswire)](https://www.prnewswire.com/news-releases/merchants-bank-goes-live-with-blue-sages-digital-lending-platform-to-power-its-jumbo-lending-program-302558834.html))
- Aug 21, 2025 — **Alkami reports Merchants Bank online account-opening results** Vendor case study: more than $500 million of deposits in six weeks and $680 million in under a year, account-opening cost down 60%, with stronger fraud prevention and back-office automation; no AI is claimed. ([Alkami](https://alkami.com/resources/client-success/case-study/500m-raised-in-deposits-in-just-6-weeks))
- Jul 28, 2025 — **Second-quarter 2025 results: mortgage-fraud provisions** Net income $38.0 million, down 50%; provision up $43.1 million on lower multifamily property values and the investigation of borrowers involved in mortgage fraud or suspected fraud; Dunlap said the bank was enhancing its risk management practices. ([Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-2025-results-302515176.html))
- Jul 24, 2025 — **Named among top-performing banks for lending niches** Short-duration multifamily and warehouse strategy cited. ([American Banker](https://americanbanker.com/news/top-performing-banks-used-lending-niches-to-fuel-growth))
- Jun 30, 2025 — **Memorandum of understanding with FDIC and Indiana regulator** Confidential informal agreement covering capital thresholds, asset concentrations and plans to mitigate risk in certain assets; terminated during the first quarter of 2026. ([Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465925108470/mbin-20250930x10q.htm), [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926057107/mbin-20260331x10q.htm))
- Feb 28, 2025 — **2024 10-K repeats the AI risk factor** Same passage, with the glossary now defining 'AI'; headcount 663, of whom 388 in central Indiana; no AI use of its own described. ([Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000155837025001941/mbin-20241231x10k.htm))
- Dec 11, 2024 — **Wire-transfer fraud guidance** Customer education on spotting fraudulent payment requests. ([Merchants Bank of Indiana](https://merchantsbankofindiana.com/what-to-know-before-you-wire-money))
- Mar 12, 2024 — **2023 10-K introduces an AI risk factor** 'Adoption of Artificial Intelligence (AI) may present significant challenges' across compliance, credit, reputation and operational risk, citing chatbots, fraud detection and credit scoring as industry use cases; the 10-K for 2022 had no AI passage. ([Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000155837024003005/mbin-20231231x10k.htm), [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000155837023004012/mbin-20221231x10k.htm))

## Where AI runs

| Use case | What | Status | Detail | Sources |
| --- | --- | --- | --- | --- |
| [Credit scoring & underwriting](https://www.bankingnewsai.com/ai-regulation/by-use-case#credit-underwriting) | Multifamily and healthcare mortgage banking with securitisation | In production | Origination, servicing and agency securitisation; LIHTC fund syndication. | [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html), [American Banker](https://americanbanker.com/news/top-performing-banks-used-lending-niches-to-fuel-growth) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Mortgage warehouse financing | In production | Pipeline finance for other lenders, a process-intensive business. | [American Banker](https://americanbanker.com/news/top-performing-banks-used-lending-niches-to-fuel-growth) |
| [Fraud detection](https://www.bankingnewsai.com/ai-regulation/by-use-case#fraud) | Wire-fraud customer education | In production | Guidance on verifying payment instructions. | [Merchants Bank of Indiana](https://merchantsbankofindiana.com/what-to-know-before-you-wire-money) |
| [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general) | No disclosed AI deployment | Announced | Earnings materials silent on AI. | [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html) |
| [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk) | AI risk-factor disclosure | In production | The 10-K lists lack of accountability and explainability, reliance on large volumes of data, potential bias, privacy, third-party, cybersecurity and consumer-protection concerns as risks of AI adoption. | [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926021549/mbin-20251231x10k.htm) |
| [Cybersecurity](https://www.bankingnewsai.com/ai-regulation/by-use-case#cybersecurity) | Information security programme under an IT committee | In production | Controls based on the CIS Critical Security Controls and the NIST Cybersecurity Framework, coordinated by an Information Security Officer; a board-established IT committee that includes the president and COO meets quarterly. | [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926021549/mbin-20251231x10k.htm) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Blue Sage Digital Lending Platform (not AI) | In production | Cloud loan-origination and purchase platform with automated workflow for jumbo correspondent lending; Blue Sage reports correspondent volume up more than 200% since mid-2025 without a matching increase in staff. Workflow automation, not AI. | [Blue Sage Solutions (PR Newswire)](https://www.prnewswire.com/news-releases/merchants-bank-goes-live-with-blue-sages-digital-lending-platform-to-power-its-jumbo-lending-program-302558834.html), [Blue Sage Solutions](https://bluesageusa.com/news/merchants-bank-grows-jumbo-correspondent-lending-volume-over-200-with-blue-sage) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Clarifire workflow automation for loss mitigation (not AI) | Announced | SaaS rules and workflow platform selected for servicing loss-mitigation and default processes; HousingWire describes real-time rules application and workflow automation. The vendor's AI transcription is not stated to be in use at the bank. | [HousingWire](https://housingwire.com/articles/clarifire-ai-automation-2025) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Alkami and MANTL online account opening (vendor-reported, not AI) | In production | Alkami reports that a new online account-opening approach raised more than $500 million of deposits in six weeks and $680 million in under a year, cut account-opening cost by 60% and strengthened fraud prevention; the case study claims automation, not AI. | [Alkami](https://alkami.com/resources/client-success/case-study/500m-raised-in-deposits-in-just-6-weeks) |
| [Fraud detection](https://www.bankingnewsai.com/ai-regulation/by-use-case#fraud) | Mortgage-fraud exposure in multifamily lending | In production | Mortgage fraud or suspected fraud by borrowers contributed to a $43.1 million rise in the Q2 2025 provision and $46.1 million of charge-offs; management said it was enhancing risk management practices. No detection technology is named, and the 10-K lists fraud detection only as an industry AI use case. | [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-2025-results-302515176.html), [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-first-quarter-2026-results-302755998.html), [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926021549/mbin-20251231x10k.htm) |
| [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general) | Regulatory memorandum of understanding, 2025 to 2026 | In production | A confidential agreement with the FDIC and Indiana regulator from 30 June 2025 covered capital thresholds, asset concentrations and risk-mitigation plans; it ended in the first quarter of 2026. It does not mention AI. | [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465925108470/mbin-20250930x10q.htm), [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926057107/mbin-20260331x10q.htm) |
| [Credit scoring & underwriting](https://www.bankingnewsai.com/ai-regulation/by-use-case#credit-underwriting) | Credit risk transfer on multifamily and healthcare pools | In production | Credit default swaps and a credit-linked note since 2023, covering 13% to 15% of each pool; $2.2 billion of loans were protected at 30 June 2026, including a $169.9 million multifamily pool in June 2026. The release names no model or AI. | [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html) |

## Disclosed numbers

| Measure | Value | As of | Sources |
| --- | --- | --- | --- |
| Q2 2026 net income / diluted EPS | $78.3 million (+106% year on year) / $1.48 (+147%) | Jul 28, 2026 | [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html) |
| Total assets / tangible book value per share | $21.2 billion (record) / $39.93 (30th consecutive record) | Jun 30, 2026 | [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html) |
| Liquidity | $13.0 billion (61% of assets); $5.5 billion unused borrowing capacity | Jun 30, 2026 | [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html) |
| Total capital ratio | 12.5% | Jun 30, 2026 | [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html) |
| Mortgage Warehousing funded loan principal | $33.0 billion (2023); $45.6 billion (2024); $66.3 billion (2025); $42.5 billion (first half of 2026) | Jun 30, 2026 | [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926021549/mbin-20251231x10k.htm), [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926092702/mbin-20260630x10q.htm) |
| Servicing portfolio | $21.5 billion serviced for others; $4.3 billion sub-serviced; $1.2 billion other | Jun 30, 2026 | [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926092702/mbin-20260630x10q.htm) |
| Employees | 735 (424 in central Indiana) at year-end 2025; 663 in 2024; 618 in 2023 | Dec 31, 2025 | [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926021549/mbin-20251231x10k.htm), [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000155837025001941/mbin-20241231x10k.htm), [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000155837024003005/mbin-20231231x10k.htm) |
| Loans protected by credit default swaps | $2.2 billion, including a $169.9 million multifamily pool added in June 2026 | Jun 30, 2026 | [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html) |
| Q2 2025 provision increase and charge-offs | Provision up $43.1 million (432%) to $53.0 million; $46.1 million of charge-offs on 14 customers, linked to appraisals and mortgage fraud | Jun 30, 2025 | [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-2025-results-302515176.html), [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html) |
| Alkami-reported deposit growth from online account opening | $500 million+ in six weeks; $680 million in under a year; account-opening cost down 60% (vendor-reported) | Aug 21, 2025 | [Alkami](https://alkami.com/resources/client-success/case-study/500m-raised-in-deposits-in-just-6-weeks) |

## Quotes

> "These results demonstrate the strength of our balance sheet, the benefit of improved credit metrics, and ongoing momentum in our business." — Michael F. Petrie, Chairman and CEO, Jul 28, 2026 ([Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html))

> "With 10-year Treasury rates remaining elevated, our diversified business model continues to create multiple sources of earnings support in the current rate environment." — Michael J. Dunlap, President and Chief Operating Officer, Jul 28, 2026 ([Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html))

> "The automation, transparency and flexibility of the platform gives our sellers a competitive advantage and gives us the confidence to expand further." — Jerry Koors, President of Mortgage, Sep 17, 2025 ([Blue Sage Solutions (PR Newswire)](https://www.prnewswire.com/news-releases/merchants-bank-goes-live-with-blue-sages-digital-lending-platform-to-power-its-jumbo-lending-program-302558834.html))

> "We have implemented strategies to address our asset quality issues and to enhance our overall risk management practices to ensure long-term resilience." — Michael J. Dunlap, President and Chief Operating Officer, Jul 28, 2025 ([Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-2025-results-302515176.html))

> "marked by an increase in our provision for credit losses and charge-offs largely associated with mortgage fraud or suspected fraud that has also impacted a number of other multi-family lenders" — Michael F. Petrie, Chairman and CEO, Jul 28, 2025 ([Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-2025-results-302515176.html))

> "Automation, standardized workflows, and greater operational visibility have allowed our existing team to manage substantially higher loan volume without a corresponding increase in staffing." — Jerry Koors, President of Mortgage, Aug 27, 2026 ([Blue Sage Solutions](https://bluesageusa.com/news/merchants-bank-grows-jumbo-correspondent-lending-volume-over-200-with-blue-sage))

> "Adoption of AI may present significant challenges relating to compliance risk, credit risk, reputation risk, and operational risk." — Merchants Bancorp, Form 10-K risk factor heading, Feb 27, 2026 ([Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926021549/mbin-20251231x10k.htm))

## Who runs AI

- **Michael F. Petrie** — Chairman and CEO ([LinkedIn](https://www.linkedin.com/in/michael-petrie-7b84022b)) ([Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html))
- **Michael J. Dunlap** — President and Chief Operating Officer ([LinkedIn](https://www.linkedin.com/in/mike-dunlap-4b14191b)) ([Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html), [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926021549/mbin-20251231x10k.htm), [Merchants Bancorp (PR Newswire)](https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-2025-results-302515176.html))
- **Jerry Koors** — President of Mortgage (Merchants Mortgage) ([LinkedIn](https://www.linkedin.com/in/jerry-koors-56038916)) ([Blue Sage Solutions (PR Newswire)](https://www.prnewswire.com/news-releases/merchants-bank-goes-live-with-blue-sages-digital-lending-platform-to-power-its-jumbo-lending-program-302558834.html), [HousingWire](https://housingwire.com/articles/clarifire-ai-automation-2025), [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926042047/tm261436d1_def14a.htm))
- **Kevin T. Langford** — Executive Vice President and Chief Administrative Officer (oversees information technology, consumer and commercial banking, marketing, facilities and the project delivery team; appoints the Information Security Officer) ([Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926042047/tm261436d1_def14a.htm), [Merchants Bancorp (SEC filings)](https://www.sec.gov/Archives/edgar/data/1629019/000110465926021549/mbin-20251231x10k.htm))

## Open AI roles

Data as of Oct 14, 2026 (2026-10-14) · read from the bank's own careers site, re-checked weekly.

1 open AI-related posting on [the careers site](https://merchantsbankofindiana.com/careers) as of Oct 14, 2026. A snapshot of current openings, not a source: postings close.

- [AI Enablement Specialist](https://jobtarget.com/jobs/jt-8jm49drtp7/ai-enablement-specialist-carmel-indiana) — Carmel, Indiana — posted Aug 8, 2026

## Regulators it answers to

- [FDIC](https://www.bankingnewsai.com/ai-regulation/fdic) — Merchants Bank of Indiana is a state nonmember bank; FDIC model-risk and third-party guidance would govern any AI in underwriting or warehouse operations. See [FDIC FIL-29-2023](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-29-2023), [FDIC FIL-15-2026](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-15-2026).
- [Federal Reserve](https://www.bankingnewsai.com/ai-regulation/federal-reserve) — Holding-company oversight of a securitisation-heavy, agency-dependent model. See [SR 11-7](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-11-7), [SR 23-4](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-23-4).
- [CFPB](https://www.bankingnewsai.com/ai-regulation/cfpb) — Correspondent residential mortgage banking brings adverse-action and servicing duties to any automated decisioning. See [ECOA / Regulation B adverse action (15 U.S.C. 1691(d); 12 CFR 1002.9)](https://www.bankingnewsai.com/ai-regulation/documents/cfpb-ecoa-regulation-b-adverse-action).

## What the record suggests

### Warehouse lending is document automation waiting to happen

Funding other lenders' pipelines is a high-volume, document-heavy process where AI classification and exception handling pay quickly; nothing has been said.

### Agency securitisation sets the data standard

Ginnie, Fannie and Freddie programmes already force structured loan data, a base most community banks lack for models.

### Credit surveillance is the priority after 2025

A provision-driven earnings drop argues for early-warning analytics on multifamily and healthcare credits before anything customer-facing.

### Velocity, not cost, is the AI case

A bank that earns on turnover would use AI to shorten cycle times rather than cut headcount.

## FAQ

### Does Merchants Bank of Indiana use AI?

Merchants Bancorp has not disclosed an AI programme, leader, vendor or budget. Its business is multifamily and healthcare mortgage banking with securitisation, mortgage warehousing and portfolio banking, and its customer content is limited to fraud guidance and rate promotions. Its 2025 10-K includes a generic AI risk factor, and its disclosed technology deals are non-AI: Blue Sage's digital lending platform for jumbo correspondent loans, Clarifire workflow automation for loss mitigation and Alkami with MANTL for online account opening.

### How is Merchants Bancorp performing?

Second-quarter 2026 net income was $78.3 million, or $1.48 per diluted share, up 147% from a year earlier, with record total assets of $21.2 billion and a 30th consecutive record in tangible book value per share at $39.93, following a 2025 in which net income fell 32% on higher credit provisions.

### Who leads AI at Merchants Bancorp?

No AI leader is named. Merchants Bancorp has no disclosed chief AI, data or technology officer. Its 2026 proxy gives information technology to Kevin Langford, executive vice president and chief administrative officer since 2017, who was chief information officer at First Financial Bank. The 10-K says the president and COO, Michael Dunlap, sits on the IT committee that governs cyber risk, and an unnamed Information Security Officer reports through Langford.

### How has mortgage fraud affected Merchants Bancorp's risk management?

In the second quarter of 2025 the provision for credit losses rose $43.1 million to $53.0 million and charge-offs reached $46.1 million, largely on lower multifamily property values and borrowers involved in mortgage fraud or suspected fraud. Net income fell 50% year on year to $38.0 million. On 30 June 2025 Merchants Bank signed a memorandum of understanding with the FDIC and Indiana regulator covering capital and asset concentrations; it was terminated in the first quarter of 2026. Criticised loans have since fallen five quarters in a row to $444.7 million. No fraud-detection technology is named.

### Which technology vendors does Merchants Bank of Indiana use?

Three third-party deployments are public, and none is described as AI. Blue Sage's cloud lending platform has run jumbo correspondent lending since September 2025, and Blue Sage reports volume up more than 200%. Clarifire's workflow platform was chosen for loss mitigation, according to HousingWire in December 2025. Alkami, with MANTL, reports online account opening that raised more than $500 million of deposits in six weeks. The 10-K adds that core processing, servicing, wires and mobile banking are outsourced, without naming providers.

## Sources (20)

1. Wire Transfer Fraud: How to Spot Them and Protect Your Funds — Merchants Bank of Indiana, Dec 11, 2024. https://merchantsbankofindiana.com/what-to-know-before-you-wire-money
2. Lending niches helped these banks to outperform their peers — American Banker, Jul 24, 2025. https://americanbanker.com/news/top-performing-banks-used-lending-niches-to-fuel-growth
3. Merchants Bancorp Reports Second Quarter of 2026 Results — Merchants Bancorp (PR Newswire), Jul 28, 2026. https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-of-2026-results-302836726.html
4. Merchants Bancorp Reports Fourth Quarter 2025 Results — Merchants Bancorp (PR Newswire), Jan 28, 2026. https://prnewswire.com/news-releases/merchants-bancorp-reports-fourth-quarter-2025-results-302672800.html
5. Merchants Bank Goes Live With Blue Sage's Digital Lending Platform to Power its Jumbo Lending Program — Blue Sage Solutions (PR Newswire), Sep 17, 2025. https://www.prnewswire.com/news-releases/merchants-bank-goes-live-with-blue-sages-digital-lending-platform-to-power-its-jumbo-lending-program-302558834.html
6. Merchants Bancorp Annual Report on Form 10-K for the fiscal year ended December 31, 2025 — Merchants Bancorp (SEC filings), Feb 27, 2026. https://www.sec.gov/Archives/edgar/data/1629019/000110465926021549/mbin-20251231x10k.htm
7. Merchants Bancorp Increases Quarterly Common Dividend by 10%; Declares Quarterly Common and Preferred Dividends — Merchants Bancorp (PR Newswire), Feb 19, 2026. https://prnewswire.com/news-releases/merchants-bancorp-increases-quarterly-common-dividend-by-10-declares-quarterly-common-and-preferred-dividends-302692892.html
8. Merchants Bank Grows Jumbo Correspondent Lending Volume Over 200% with Blue Sage — Blue Sage Solutions, Aug 27, 2026. https://bluesageusa.com/news/merchants-bank-grows-jumbo-correspondent-lending-volume-over-200-with-blue-sage
9. Merchants Bancorp's Rally Is Testing How Much Risk Investors Will Overlook — Yahoo Finance, Sep 5, 2026. https://finance.yahoo.com/markets/stocks/articles/merchants-bancorp-rally-testing-much-125500408.html
10. Merchants Bancorp Annual Report on Form 10-K for the fiscal year ended December 31, 2022 — Merchants Bancorp (SEC filings), Mar 16, 2023. https://www.sec.gov/Archives/edgar/data/1629019/000155837023004012/mbin-20221231x10k.htm
11. Merchants Bancorp Annual Report on Form 10-K for the fiscal year ended December 31, 2023 — Merchants Bancorp (SEC filings), Mar 12, 2024. https://www.sec.gov/Archives/edgar/data/1629019/000155837024003005/mbin-20231231x10k.htm
12. Merchants Bancorp Annual Report on Form 10-K for the fiscal year ended December 31, 2024 — Merchants Bancorp (SEC filings), Feb 28, 2025. https://www.sec.gov/Archives/edgar/data/1629019/000155837025001941/mbin-20241231x10k.htm
13. Merchants Bancorp Reports Second Quarter 2025 Results — Merchants Bancorp (PR Newswire), Jul 28, 2025. https://prnewswire.com/news-releases/merchants-bancorp-reports-second-quarter-2025-results-302515176.html
14. $500M+ Raised in Deposits in Just 6 Weeks (Merchants Bank of Indiana case study) — Alkami, Aug 21, 2025. https://alkami.com/resources/client-success/case-study/500m-raised-in-deposits-in-just-6-weeks
15. Merchants Bancorp Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 — Merchants Bancorp (SEC filings), Nov 7, 2025. https://www.sec.gov/Archives/edgar/data/1629019/000110465925108470/mbin-20250930x10q.htm
16. What's new from Tech100 honoree CLARIFIRE? Security, AI transcription and automation for mortgage servicers — HousingWire, Dec 18, 2025. https://housingwire.com/articles/clarifire-ai-automation-2025
17. Merchants Bancorp 2026 Proxy Statement (DEF 14A) — Merchants Bancorp (SEC filings), Apr 10, 2026. https://www.sec.gov/Archives/edgar/data/1629019/000110465926042047/tm261436d1_def14a.htm
18. Merchants Bancorp Reports First Quarter 2026 Results — Merchants Bancorp (PR Newswire), Apr 28, 2026. https://prnewswire.com/news-releases/merchants-bancorp-reports-first-quarter-2026-results-302755998.html
19. Merchants Bancorp Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 — Merchants Bancorp (SEC filings), May 7, 2026. https://www.sec.gov/Archives/edgar/data/1629019/000110465926057107/mbin-20260331x10q.htm
20. Merchants Bancorp Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 — Merchants Bancorp (SEC filings), Aug 7, 2026. https://www.sec.gov/Archives/edgar/data/1629019/000110465926092702/mbin-20260630x10q.htm

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