Company: MBINL
Filing Date: 2025-02-14
Form Type: CORRESP
Source: 0001104659-25-013544
Chunk: 2

Company: Merchants Bancorp
Filing Date: 2025-02-14
Form: CORRESP
Chunk 2
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 impact to earnings. Therefore, the Company believes it would be misleading and inappropriate
to report the loss on the face of the Statement of Income. However, in future filings the transaction will be clarified in the derivatives
footnote to describe both sides of the transaction, which by design should have no net impact on earnings.

| 410 Monon                                                                
 Blvd., Carmel, IN 46032 | PHONE 317.324.4660 | WEB www.bankmerchants.com |

5. Please more fully disclose and discuss in future filings, the existence of and reasons for the quarterly loss on derivative put options ($16.1 million) and interest rate floors ($7.7 million), which comprise the majority of the $27 million quarterly loss on derivatives as noted in Note 8 on page 31. We note Item 303(b) of Regulation S-K.

Response:

Future filings will contain the nature of the loss on derivative put
options and the equal and offsetting gain on the related securities available for sale utilizing the fair value option, both of which
are included in other income as described in the response to number 4 above. Because the amounts are substantially equal and offsetting
in the same line item on the Statement of Income, they will have no net impact to earnings.

The Company also has an arrangement with counterparties, whereby there
is a guaranteed minimum interest rate the Company will receive on certain assets bearing variable interest rates. This arrangement was
determined to be a free-standing derivative, recorded in Other Assets and any changes in value are recognized as Other Noninterest Income.
The $7.7 loss on interest rate floor derivatives in the Form 10-Q was associated with the change in fair value during the period,
driven largely by the change in market interest rates. It is not anticipated that the losses will be significant in the future, but will
be discussed in future filings if the amounts are material.

| Sincerely,                   |
| MERCHANTS BANCORP            |
| /s/ Sean Sievers             |
| Sean Sievers                 |
| EVP, Chief Financial Officer |

| 410 Monon                                                                
 Blvd., Carmel, IN 46032 | PHONE 317.324.4660 | WEB www.bankmerchants.com |