Exhibit 99.1

PRESS RELEASE

Merchants Bancorp Reports Full Year and Fourth Quarter 2018 Results

For Release January 30, 2019

·Return on average assets of 1.71% and 1.61% for twelve and three months ended December 31, 2018, respectively

·Total assets of $3.9 billion increased $491.0 million, or 14%, compared with December 31, 2017

·Gross loans receivable of $2.1 billion increased 50% compared with December 31, 2017

·Pre-tax net income of $84.0 million increased 9% during the twelve months ended December 2018 and decreased 2%, to $21.1 million, in the fourth quarter of 2018 compared with the fourth quarter of 2017

·Closed on the acquisitions of Farmers-Merchants Bank of Paxton on October 1, 2018 and the assets of NattyMac, LLC on December 31, 2018.

CARMEL, Indiana — (PR Newswire) - Merchants Bancorp (the “Company” or “Merchants”) (Nasdaq: MBIN), parent company of Merchants Bank of Indiana, today reported fourth quarter 2018 net income of $15.4 million, or $0.51 per common share, compared with $20.3 million, or $0.73 per common share in the fourth quarter of 2017. The decrease in earnings per common share was primarily due to the additional common shares associated with the Company’s initial public offering in October of 2017, as well as the $6.9 million one-time benefit in the fourth quarter of 2017 associated with lower tax rates under federal income tax reform legislation.

The Company also reported net income of $62.9 million for the twelve months ended December 31, 2018, a 15% increase compared with $54.7 million in the comparable period of 2017.  Earnings per common share of $2.07 for the twelve months ended December 31, 2018 compared with $2.28 per common share in the comparable period of 2017.  The results for 2017 included a 6.2 million lower share count, and a $6.9 million one-time benefit associated with lower tax rates under federal income tax reform legislation.

“Our underlying results during the fourth quarter reflected strength in all business segments, with strong loan growth, high asset quality metrics across the board, and a demonstrated ability to effectively manage a rising interest rate environment. We delivered on our commitment to effectively utilize the capital raised from our IPO, by growing our loan portfolio by 50% over the last year.  We have also positioned ourselves to continue the trajectory of profitable growth into 2019,” said Michael Petrie, Chairman and CEO of Merchants. “I could not be prouder of all that our team accomplished during 2018 and in our first full year as a public company,” added Petrie.

Total Assets

Total assets increased $491.0 million, or 14%, to $3.9 billion at December 31, 2018, compared with $3.4 billion at December 31, 2017. The increase was due primarily to loan growth.  Return on average assets was 1.61% for the three months ended December 31, 2018, compared with 2.54% for the three months ended December 31, 2017.

Total loans receivable before allowance for loan losses increased $683.5 million, or 50%, to $2.1 billion at December 31, 2018, compared with $1.4 billion at December 31, 2017. This increase was primarily a result of growth in multi-family and healthcare financing, as well as mortgage warehouse lines of credit.

Asset Quality

The allowance for loan losses increased by $4.4 million, to $12.7 million, at December 31, 2018, compared with $8.3 million at December 31, 2017, reflecting growth in loans held for investment.  Non-performing loans were $3.6 million, or 0.18% of total loans at December 31, 2018, compared with $3.1 million, or 0.23% of total loans at December 31, 2017.

Total Deposits

Total deposits increased $287.5 million, or 10%, to $3.2 billion at December 31, 2018, compared with $2.9 billion at December 31, 2017. The increase was due primarily to growth in demand deposits and certificates of deposit during 2018.  Total short-term brokered deposits increased by 5%, to $988.2 million, or 31% of total deposits at December 31, 2018, compared with 32% at December 31, 2017.

Interest Income

Interest income increased $12.9 million, or 48%, to $39.8 million for the three months ended December 31, 2018, compared with $26.9 million for the three months ended December 31, 2017. This increase was due to both higher loan yields and loan growth.  The average yield on loans increased 59 basis points, to 4.93%, for the three months ended December 31, 2018, compared with

4.34% for the three months ended December 31, 2017.  The average balance of loans, including loans held for sale, during the three months ended December 31, 2018, increased by $622.2 million, or 29%, to $2.7 billion, compared with $2.1 billion for the three months ended December 31, 2017.

Interest Expense

Total interest expense increased $7.7 million, or 97%, to $15.7 million for the three months ended December 31, 2018, compared with the three months ended December 31, 2017. Interest expense on deposits increased $8.0 million, or 136%, to $13.8 million for the three months ended December 31, 2018, compared with the three months ended December 31, 2017. The increase in the cost of deposits was due primarily to the higher volume of interest-bearing checking and certificates of deposits, but also the overall increase in interest rates since last year. There was a 68 basis point increase in the average cost of interest-bearing deposits, to 1.81%, for the three months ended December 31, 2018, compared with 1.13% for the same period in 2017, and an increase in the average balance of interest-bearing deposits of $976.3 million, or 48%, to $3.0 billion for the three months ended December 31, 2018.

Net Interest Income

Net interest income increased $5.2 million, or 28%, to $24.2 million for the three months ended December 31, 2018 compared to the three months ended December 31, 2017.  The increase was primarily due to the growth in loans and loans held for sale and a 32 basis point increase in the interest rate spread, to 2.28%, for the three months ended December 31, 2018, from 1.96% for the three months ended December 31, 2017.  The net interest margin increased 17 basis points to 2.60% for the three months ended December 31, 2018, from 2.43% for the three months ended December 31, 2017.

Noninterest Income

Noninterest income decreased by $172,000, or 1%, to $14.7 million for the three months ended December 31, 2018, compared with the three months ended December 31, 2017. The decrease was primarily due to a $2.3 million decrease in loan servicing fees that reflected a positive fair market value adjustment in mortgage servicing rights of $436,000 in the fourth quarter of 2018 and $3.7 million in the fourth quarter of 2017. Gain on sale of loans increased $1.7 million, or 17%, primarily associated with higher multi-family loan sales in the secondary market.

Noninterest Expense

Noninterest expense increased $5.4 million, or 50%, to $16.2 million for the three months ended December 31, 2018, compared with $10.8 million for the three months ended December 31, 2017.  The increase was due primarily to a $3.6 million, or 51%, increase in salaries and employee benefits.  The increase in salaries and employee benefits was due primarily to an increase in the number of employees resulting from business growth and higher commissions related to higher multi-family volume.  The efficiency ratio grew to 41.6% in the fourth quarter of 2018, compared with 31.9% for the fourth quarter of 2017.

Income Taxes

Income tax expense increased $4.4 million, or 328%, to $5.7 million for the three months ended December 31, 2018, compared with the three months ended December 31, 2017.  The increase was due primarily to the one-time benefit of $6.9 million in the fourth quarter of 2017 from federal income tax reform legislation.  The effective tax rate was 27.0% for the three months ended December 31, 2018 compared with 6.1% for the three months ended December 31, 2017.

Segments

For the three months ended December 31, 2018, net income increased 16% for Mortgage Warehousing and 156% for Banking, compared with the fourth quarter of 2017. The increase in Banking reflected an increase in net interest income and a $1.0 million one-time expense associated with federal income tax reform legislation in the fourth quarter of 2017.  During the same period, Multi-family Mortgage Banking decreased 68%, primarily due to a $7.9 million one-time benefit associated with federal income tax reform legislation in the fourth quarter of 2017 and higher commissions on loan growth in the fourth quarter of 2018.

About Merchants Bancorp

Merchants Bancorp is a diversified bank holding company headquartered in Carmel, Indiana operating multiple lines of business with a focus on Federal Housing Administration (“FHA”) multi-family housing and healthcare facility financing and servicing; mortgage warehouse financing; retail and correspondent residential mortgage banking; agricultural lending; and traditional community banking.  Merchants Bancorp, with $3.9 billion in assets and $3.2 billion in deposits as of December 31, 2018, conducts its business through its direct and indirect subsidiaries, Merchants Bank of Indiana, Merchants Capital Corp. (formerly known as P/R Mortgage and Investment Corp. prior to October 1, 2018), Farmers-Merchants Bank of Illinois (formerly known as Joy State Bank prior to October 22, 2018 and includes the October 1, 2018 acquisition of Farmers-Merchants National Bank of Paxton, Illinois), Merchants Capital Servicing, LLC (formerly known as RICHMAC Funding LLC prior to November 1, 2018), and Merchants Mortgage, a division of Merchants Bank of Indiana. For

more information and financial data, please visit Merchants’ Investor Relations page at investors.merchantsbankofindiana.com.

Forward-Looking Statements

This press release contains forward-looking statements which reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “outlook,” “aim,” “would,” “annualized” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  A number of important factors could cause our actual results to differ materially from those indicated in these forward-looking statements, including those factors identified in “Risk Factors” or “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission.  Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Media Contact: Rebecca Marsh

Merchants Bancorp

Phone: (317) 805-4356

Email: rmarsh@merchantsbankofindiana.com

Investor Contact: John Macke

Merchants Bancorp

Phone: (317) 536-7421

Email: jmacke@merchantsbankofindiana.com

Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)

	December 31,			December 31,
	2018			2017
Assets
Cash and due from banks	$	25,855		$	18,905
Interest-earning demand accounts	310,669			340,614
Cash and cash equivalents	336,524			359,519
Securities purchased under agreements to resell	6,875			7,043
Trading securities	163,419			140,837
Available for sale securities	331,071			408,371
Federal Home Loan Bank (FHLB) stock	7,974			7,539
Loans held for sale (includes $11,886, at fair value for 2018)	832,455			995,319
Loans receivable, net of allowance for loan losses of $12,704 and $8,311, respectively	2,045,423			1,366,349
Premises and equipment, net	15,136			5,354
Mortgage servicing rights	77,844			66,079
Interest receivable	13,827			8,326
Goodwill	17,477			3,902
Intangible assets, net	3,542			1,512
Other assets and receivables	32,596			22,983
Total assets	$	3,884,163		$	3,393,133
Liabilities and Shareholders’ Equity
Liabilities
Deposits
Noninterest bearing	$	182,879		$	620,700
Interest bearing	3,048,207			2,322,861
Total deposits	3,231,086			2,943,561
Borrowings	195,453			56,612
Deferred and current tax liabilities, net	15,444			12,422
Other liabilities	20,943			13,064
Total liabilities	3,462,926			3,025,659
Commitments and Contingencies
Shareholders’ Equity
Common stock, without par value Authorized - 50,000,000 shares Issued and outstanding - 28,694,036 shares at December 31, 2018 and 28,685,167 shares at December 31, 2017	135,057			134,891
Preferred stock - $1,000 per share, without par value Authorized - 5,000,000 shares Issued and outstanding - 41,625 shares	41,581			41,581
Retained earnings	244,909			192,008
Accumulated other comprehensive loss	(310		)	(1,006		)
Total shareholders’ equity	421,237			367,474
Total liabilities and shareholders’ equity	$	3,884,163		$	3,393,133

Consolidated Statement of Income

(Unaudited)

(In thousands, except share data)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2018			2017			2018			2017
Interest Income
Loans	$	33,999		$	23,101		$	119,457		$	79,922
Investment securities:
Trading	1,235			1,063			5,012			5,187
Available for sale	1,740			1,356			6,448			4,531
Federal Home Loan Bank stock	88			81			385			321
Other	2,763			1,309			9,261			4,426
Total interest income	39,825			26,910			140,563			94,387
Interest Expense
Deposits	13,789			5,833			42,216			20,003
Borrowed funds	1,861			2,125			8,376			7,787
Total interest expense	15,650			7,958			50,592			27,790
Net Interest Income	24,175			18,952			89,971			66,597
Provision for loan losses	1,608			1,400			4,629			2,472
Net Interest Income After Provision for Loan Losses	22,567			17,552			85,342			64,125
Noninterest Income
Gain on sale of loans	11,718			9,977			39,266			37,790
Loan servicing fees, net	1,657			3,972			5,741			6,273
Mortgage warehouse fees	602			601			2,550			2,608
Other income	758			357			2,028			1,009
Total noninterest income	14,735			14,907			49,585			47,680
Noninterest Expense
Salaries and employee benefits	10,643			7,055			32,240			21,472
Loan expenses	1,109			1,025			4,621			4,097
Occupancy and equipment	726			522			2,788			1,602
Professional fees	830			425			2,585			1,516
Deposit insurance expense	273			226			1,024			930
Technology expense	548			340			1,544			1,171
Other expense	2,052			1,207			6,098			3,856
Total noninterest expense	16,181			10,800			50,900			34,644
Income Before Income Taxes	21,121			21,659			84,027			77,161
Provision for Income Taxes	5,699			1,330			21,153			22,477
Net Income	$	15,422		$	20,329		$	62,874		$	54,684
Dividends on preferred stock	(832		)	(833		)	(3,330		)	(3,330		)
Net Income Allocated to Common Shareholders	14,590			19,496			59,544			51,354
Basic Earnings Per Share	$	0.51		$	0.73		$	2.08		$	2.28
Diluted Earnings Per Share	$	0.51		$	0.73		$	2.07		$	2.28
Weighted-Average Shares Outstanding
Basic	28,694,036			26,619,950			28,692,955			22,551,452
Diluted	28,738,444			26,646,338			28,724,419			22,568,154
Dividends Per Share	$	0.06		$	0.05		$	0.24		$	0.20

Key Operating Results

(Unaudited)

($ in thousands)

	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2018			2018			2017			2018			2017
Noninterest Expense	16,181			12,449			10,800			50,900			34,644
Net Interest Income (before provision for losses)	24,175			23,482			18,952			89,971			66,597
Noninterest Income	14,735			11,907			14,907			49,585			47,680
Total Income	38,910			35,389			33,859			139,556			114,277
Efficiency Ratio	41.59		%	35.18		%	31.90		%	36.47		%	30.32		%
Average Assets	3,839,594			3,829,172			3,204,591			3,680,934			2,973,589
Net Income	15,422			16,739			20,329			62,874			54,684
Return on Average Assets before annualizing	0.40		%	0.44		%	0.63		%	1.71		%	1.84		%
Annualization Factor	4.00			4.00			4.00			1.00			1.00
Return on Average Assets	1.61		%	1.75		%	2.54		%	1.71		%	1.84		%
Return on Average Tangible Common Equity (1)	16.24		%	17.92		%	28.60		%	17.23		%	25.14		%
Tangible Book Value Per Common Share (1)	$	12.50		$	12.50		$	11.17		$	12.50		$	11.17
Tangible Common Equity/Tangible Assets (1)	9.28		%	9.44		%	9.46		%	9.28		%	9.46		%

(1) Non-GAAP financial measure - see “Reconciliation of Non-GAAP Measures”

(1) Reconciliation of Non-GAAP Financial Measures

Certain non-GAAP financial measures provide useful information to management and investors that is supplementary to the company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, they do have a number of limitations.  As such, the reader should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable  to non-GAAP financial measures that other companies use.  A reconciliation of GAAP to non-GAAP financial measures is below.  Net Income Available to Common Shareholders excludes preferred stock.  Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets and preferred stock from the calculation of total assets.  Tangible Assets is calculated by excluding the balance of goodwill and intangible assets.  Tangible book value per share is calculated by dividing tangible common equity by the number of shares outstanding.    

	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2018			2018			2017			2018			2017
Net Income	15,422			16,739			20,329			62,874			54,684
Less: Preferred Stock Dividends	(832		)	(833		)	(833		)	(3,330		)	(3,330		)
Net Income Available to Common Shareholders	14,590			15,906			19,496			59,544			51,354
Average Shareholders Equity	417,072			403,757			321,785			396,350			248,515
Less: Average Goodwill & Intangibles	(16,127		)	(7,120		)	(7,552		)	(9,265		)	(2,662		)
Less: Average Preferred Stock	(41,581		)	(41,581		)	(41,581		)	(41,581		)	(41,581		)
Average Tangible Common Shareholder’s Equity	359,364			355,056			272,652			345,504			204,272
Annualization Factor	4.00			4.00			4.00			1.00			1.00
Return on Average Tangible Common Equity	16.24		%	17.92		%	28.60		%	17.23		%	25.14		%
Total Equity	421,237			407,346			367,474			421,237			367,474
Less: Goodwill and Intangibles	(21,019		)	(7,065		)	(5,414		)	(21,019		)	(5,414		)
Less: Preferrd Stock	(41,581		)	(41,581		)	(41,581		)	(41,581		)	(41,581		)
Tangible Common Equity	358,637			358,700			320,479			358,637			320,479
Assets	3,884,163			3,806,949			3,393,133			3,884,163			3,393,133
Less: Goodwill and Intangibles	(21,019		)	(7,065		)	(5,414		)	(21,019		)	(5,414		)
Tangible Assets	3,863,144			3,799,884			3,387,719			3,863,144			3,387,719
Ending Common Shares	28,694,036			28,694,036			28,685,167			28,694,036			28,685,167
Tangible Book Value per Common Share	$	12.50		$	12.50		$	11.17		$	12.50		$	11.17
Tangible Common Equity/Tangible Assets	9.28		%	9.44		%	9.46		%	9.28		%	9.46		%

Merchants Bancorp

Average Balance Analysis

($ in thousands)

(Unaudited)

	Three Months Ended							Three Months Ended							Three Months Ended
	December 31, 2018							September 30, 2018							December 31, 2017
	Average					Yield/		Average					Yield/		Average					Yield/
	Balance			Int.		Rate		Balance			Int.		Rate		Balance			Int.		Rate
Assets:
Interest bearing deposits, and other	$	490,189		$	2,851	2.31	%	$	510,115		$	2,681	2.09	%	$	442,789		$	1,390	1.25	%
Securities available for sale	331,613			1,740		2.08	%	355,564			1,541		1.72	%	414,895			1,356		1.30	%
Trading securities	125,582			1,235		3.90	%	137,351			1,299		3.75	%	119,220			1,063		3.54	%
Loans and loans held for sale	2,736,228			33,999		4.93	%	2,677,449			32,056		4.75	%	2,114,048			23,101		4.34	%
Total Interest Earning Assets	3,683,612			39,825		4.29	%	3,680,479			37,577		4.05	%	3,090,952			26,910		3.45	%
Allowance for loan losses	(11,495		)					(10,695		)					(7,551		)
Noninterest earning assets	167,477							159,388							121,190
Total assets	$	3,839,594						$	3,829,172						$	3,204,591
Liabilities/Equity:
Interest bearing checking	1,335,051			6,122		1.82	%	853,066			4,471		2.08	%	612,674			2,153		1.39	%
Savings deposits	159,724			100		0.25	%	148,348			109		0.29	%	357,363			143		0.16	%
Money market	904,838			4,234		1.86	%	997,046			4,294		1.71	%	778,837			2,582		1.32	%
Certificates of deposit	617,659			3,333		2.14	%	577,233			2,796		1.92	%	292,142			955		1.30	%
Total interest bearing deposits	3,017,272			13,789		1.81	%	2,575,693			11,670		1.80	%	2,041,016			5,833		1.13	%
Borrowings	74,072			1,861		9.97	%	74,227			2,425		12.96	%	76,505			2,125		11.02	%
Total Interest Bearing Liabilities	3,091,344			15,650		2.01	%	2,649,920			14,095		2.11	%	2,117,521			7,958		1.49	%
Noninterest bearing deposits	293,197							748,312							730,936
Noninterest bearing liabilities	37,981							27,183							34,349
Total liabilities	3,422,522							3,425,415							2,882,806
Equity	417,072							403,757							321,785
Total liabilities and equity	$	3,839,594						$	3,829,172						$	3,204,591
Net Interest Income				$	24,175						$	23,482						$	18,952
Interest Rate Spread						2.28	%						1.94	%						1.96	%
Net Interest Earning Assets	$	592,268						$	1,030,559						$	973,431
Net Interest Margin						2.60	%						2.53	%						2.43	%
Average Interest Earning Assets to Average Interest Bearing Liabilities						119.16	%						138.89	%						145.97	%

Segment Results

(Unaudited)

($ in thousands)

	Net Income						Net Income
	Three Months Ended						Twelve Months Ended						Total Assets
	December 31,						December 31,						December 31,		December 31,
	2018			2017			2018			2017			2018		2017
Segment
Multi-family Mortgage Banking	$	4,698		$	14,871		$	19,810		$	28,661		$	166,102	$	134,390
Mortgage Warehousing	4,942			4,277			21,000			18,241			1,430,776		1,352,748
Banking	6,703			2,617			26,269			11,410			2,237,588		1,889,140
Other	(921		)	(1,436		)	(4,205		)	(3,628		)	49,697		16,855
Total	$	15,422		$	20,329		$	62,874		$	54,684		$	3,884,163	$	3,393,133