Merchants Financial Group, Inc., (MFGI) announced robust business growth and year-to-date net income of $8.93 million through the end of the second quarter, according to MFGI President and CEO Gregory M. Evans.
Year-over-year loan growth for the Winona-based company was $111.3 million (8.2 percent) and deposit growth was a healthy $95.8 million (6.9 percent).
“As usual our strong performance during the first half of the year has resulted from a total team effort, with meaningful contributions coming from business growth throughout our footprint,” said Evans. “I’m tremendously proud of our entire banking team. We continue to experience strong organic growth because of bankers who stand out as difference makers in a very competitive environment.”
Net income is ahead of MFGI’s plan for 2019 by $1.1 million, but just slightly behind last year’s earnings pace by $206,944. One impact on year-over-year earnings was a necessary contribution of an additional $543,000 in loan loss reserve put aside to cushion against possible future loan stress. Contributing to the overall positive performance, three of the bank’s four regions and its secondary market mortgage operation exceeded their respective income forecasts through the first six months of 2019. “It’s our privilege to help so many individuals and families achieve their dream of home ownership,” noted Evans. “Many customers have also benefitted from the current low-rate environment and reduced their mortgage payments by refinancing.”
The ownership of Merchants Financial Group is made up of its more than 440 employees and shareholders, mostly individuals and families from Southeast Minnesota and West Central Wisconsin. Merchants Bank is a full-service community bank with 21 branches in Southeast Minnesota and West Central Wisconsin. Headquartered in Winona, the bank has more than $1.76 billion in assets and was founded in 1875. Loans are subject to credit approval.