Merchants Bancorp provides traditional community banking services, alongside lending for multi-family residential developments, healthcare facilities, small businesses, and the agricultural sector.

While Merchants Bancorp is primarily based in Indiana, it ranks among the top agency lenders in the United States. Agency lenders originate and service loans that are backed or guaranteed by government-sponsored enterprises such as Fannie Mae and Freddie Mac. These enterprises provide guarantees or insurance, mitigating lender risk and fostering lending in specific sectors.

Merchants Bancorp adopts an "originate-to-sell" model, whereby many loans are sold, thus freeing up its balance sheet. At the same time, it retains an annuity-based income stream through loan servicing and the management of captive escrow deposits related to mortgage servicing (funds set aside for property taxes and mortgage insurance).