Merchants Financial Group, Inc. (MFGI) announced net income of $5,970,031 through the second quarter of 2017, according to MFGI President and CEO Gregory M. Evans.
“Our core business is performing extremely well,” Evans said. “Our year has been one of significant strategic progress, and our earnings have been solid.”
Evans noted that there has been year-over-year growth in both deposits and loans. He said mortgage volume continues to be strong and well ahead of MFGI’s plan through the first six months of 2017.
Net income is slightly behind MFGI’s plan for two quarters and is behind 2016’s pace, when MFGI celebrated record earnings. Earnings were impacted by $900,000 set aside as addition to loan loss reserves in the second quarter. Merchants made a similar adjustment at the end of the first quarter. The money is a cushion against possible future loan stress. Evans said putting the money aside is consistent with MFGI’s conservative principles, and that actual loan charge-off activity is well below industry averages.
“We believe we are well-positioned for continued strong earnings during the second half of the year,” Evans said. “I am optimistic about the remainder of the year and beyond.”
MFGI owns 21 Merchants Bank locations, including Minnesota locations in Winona, St. Charles, Goodview, Rochester, Rushford, Lanesboro, Caledonia, La Crescent, Spring Grove, Cannon Falls, Red Wing, Hampton, and the southern Twin Cities metropolitan suburbs of Apple Valley, Cottage Grove, Hastings, Lakeville and Rosemount. Merchants has Wisconsin locations in Eau Claire and Onalaska. All banks are FDIC members and equal housing lenders. Additionally, MFGI also owns Twin Cities-based Merchants Bank Equipment Finance, a division of Merchants Bank, N.A.
The ownership of Merchants Financial Group is made up of its 440 employees and its shareholders, mostly individuals and families from Southeast Minnesota and West Central Wisconsin.