Merchants Financial Group, Inc. (MFGI) has announced financial results for the second quarter and details about COVID-19 assistance provided to its customers, according to MFGI President & CEO Gregory M. Evans.
Second quarter earnings of $8,442,992 were behind MFGI’s 2020 plan by $346,298 and behind 2019 mid-year results by $484,989. June earnings were profitable for MFGI even though the Company reversed $4 million out of income in the form of additional Allowance for Loan/Lease Loss Reserves as a precautionary measure to cover potential loan risk as the challenging economic situation continues to unfold.
“Our profitable performance through two quarters is a source of pride for our extraordinary employee team, which has been intensely focused on assisting our customers and communities experiencing hardship due to the COVID pandemic,” said Evans. “Most gratifying is the feedback I’ve received from clients who are appreciative of how our bankers have been available to them in serving as trusted advisors at this difficult time.”
Since March, Merchants has provided relief to more than 1,300 consumer and business loan customers in good standing in the form of loan payment deferment programs across all product categories. The Bank continues to assist business customers across its footprint with Paycheck Protection Program (PPP) financing through the Small Business Administration and will be accepting applications through the August 8, 2020 deadline. Merchants has been one of Minnesota’s PPP banking leaders, originating more than 1,500 loans with total volume of approximately $200 million. In addition, Merchants reported a 16.1% increase in deposits and origination volume of $478 million of residential mortgage loans through the first half of the year, as customers take advantage of the current interest rate environment.
“We want our customers and communities to know that Merchants will continue to be a source of assistance for those hit hardest by the pandemic and that we take our responsibility as a community bank seriously. We’re here to be your financial partner as you navigate challenges in the coming months,” Evans noted.
The ownership of Merchants Financial Group, Inc. is made up of its more than 440 employees and its shareholders, mostly individuals and families from southeastern Minnesota and west-central Wisconsin.
Merchants Bank is a full service community bank with 21 bank locations in southeastern Minnesota, two bank locations in west-central Wisconsin and a leasing division, Merchants Bank Equipment Finance, in Edina. Headquartered in Winona, MN, MFGI has more than $2.1 billion in assets. Merchants was founded in 1875.