Merchants Bancorp and its wholly owned subsidiary MBank has completed the sale of its’ banking assets to Riverview Community Bank. Riverview has acquired approximately $116 million in assets from Merchants Bancorp. The three MBank branch offices, in Gresham, Portland and Lake Grove, will become Riverview branches when the transaction closes.
Subsequent to the transaction closing, Merchants has agreed to merge with Sortis, a Portland based private lender and advisory firm. The newly combined firm will retain the publicly traded Merchants Bancorp holding company that will be renamed Sortis Holdings Inc. The new ticker symbol will be (SOHI) effective June XX. Sortis led the recapitalization of Merchants Bancorp in 2012, which saved the bank from potential failure and led to a quick turn around to profitability in 2013. MBank has continued to strengthen its financial position and was a highly rated bank at the time of sale.
Sortis Holdings intends to aggressively expand the existing private lending platform nationwide. It will also use its expertise in banking to opportunistically invest in the Fintech space. “We look forward to the opportunity to participate in the fast growing private lending space. The regulatory environment is very difficult on small banks and we felt there was a much greater opportunity to pursue outside of banking. The Sortis acquisition allows us to hit the ground running and use the proceeds from our sale as growth capital” said Jef Baker formerly CEO of Merchants who will continue as CEO of Sortis Holdings. Paul Brenneke Founder and CEO of Sortis will become Executive Chairman of the Sortis Holdings board.
About Sortis Holdings Inc. (FKA Merchants Bancorp)
Based in Portland, Oregon, Sortis Holdings is a former bank holding company that sold its banking assets in 2016 to focus on investment with a focus on fintech. At the core is Sortis Financial, a wholly owned subsidiary that is a technology-driven platform licensed as a servicer and debt collector in 42 states with origination authority in 35 states. Our regulatory and operational infrastructure, backed by a team of experts in technology, banking, mortgage and business lending, and compliance, enables scaling for our proprietary online lending products and enables partnerships with emerging Fintech companies, greatly speeding time to market. Sortis is leading the vision and accelerating the pace of disruption as a new era unfolds for financial services.