Merchants Financial Group, Inc. (MFGI) announced year-end earnings for 2018 with net income of $18,887,308, according to MFGI President & CEO, Gregory M. Evans.
The earnings exceeded MFGI’s plan for the year by more than $3 million. Merchants benefitted from corporate tax reform throughout 2018, which contributed to performance results. Evans noted that on a pre-tax basis, MFGI increased earnings by 12% from 2017 to $25,237,358.
“All areas of the organization contributed to help us surpass our planned income for the year with three of our four Bank Regions exceeding their income targets and strong performance from our leasing division, Merchants Bank Equipment Finance, and our Secondary Market Mortgage operation,” said Evans.
Core earnings for 2018 were also bolstered by commercial loan and deposit growth, and intense credit risk monitoring and mitigation, which resulted in a year-over-year reduction in the Allowance for Loan/Lease Loss Reserve contributions. Evans credits MFGI’s strategic diversification of business segments, product offerings and markets for the steady business and earnings growth Merchants consistently achieves.
“The Merchants team is truly special and I’m proud to share our team’s success over the last year,” said Evans. “We look forward to continuing to improve the lives of our customers through the caring and advising approach to financial services they deserve.”
MFGI’s net income was $20,878,465 for 2017, which included an accounting adjustment of more than $6.5 million as a result of the reduction of a deferred tax liability associated with the Tax Cuts and Job Act of 2017. Net income was $14,154,891 for 2016.
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. Additionally, MFGI also owns Twin Cities-based Merchants Bank Equipment Finance, a division of Merchants Bank, N.A.
Merchants Financial Group is a publicly traded Company. Ownership is made up of its more than 440 employees and mostly individuals and families from southeastern Minnesota and west-central Wisconsin.