Merchants Financial Group, Inc. Announces Earnings of $18.16 Million through Second Quarter of 2021

Greg Evans, President & CEO

Merchants Financial Group, Inc. (MFGI) announced net income of $18,157,527 through the first two quarters of 2021, according to MFGI President & CEO Gregory M. Evans.

Performance was driven by the Bank’s active involvement in the origination of Small Business Administration (SBA) Paycheck Protection Program (PPP) loans for small businesses throughout the region and continued strong origination volume of residential mortgage loans.

“Our strong earnings reflect our commitment to continue showing up in our communities as a trusted advisor and resource. As community bankers, it’s our privilege to serve our communities and do our part to help local economies and neighbors recover from the pandemic,” said Evans.

Net income is $9.7 million ahead of mid-year earnings performance for 2020 when the early onset of COVID dramatically impacted MFGI’s performance results. All four Bank regions, Merchants Bank Equipment Finance and the Secondary Market Mortgage division have exceeded earnings plans for the first six months.

Merchants has originated an additional $80 million of PPP loans during a recent round of SBA funding and approximately 65% of Merchants’ total PPP origination volume of $290 million has been forgiven, providing area small business owners a much needed resource to survive the pandemic. Merchants’ residential mortgage loan volume for the first half of the year has been $484 million, and mid-year performance was also bolstered by reversal of excess Allowance for Loan/Lease Loss Reserves.

“We continue to focus on walking our business customers through the forgiveness process for PPP loans, and those proceeds have been a significant lifeline for owners of family-owned businesses that are the backbone of our communities’ economic viability,” noted Evans. “Our market leadership in mortgage lending has afforded many families to take advantage of low interest rates by purchasing a new home or refinancing their current mortgage.”

Merchants Financial Group, Inc. is a publicly-traded Company. Ownership is made up of its more than 440 employees and mostly individuals and families from the communities the Bank serves.

Merchants Bank is a full-service community bank with 23 bank locations in southeastern Minnesota and west-central Wisconsin and a leasing division, Merchants Bank Equipment Finance, in Edina. Headquartered in Winona, MN, MFGI has more than $2.5 billion in assets. Merchants was founded in 1875.

Strong Performance Continued in 2014

BlogLinkImage-RodNelsonMerchants Financial Group, Inc. (MFGI) continued its history of strong performance with $12,349,685 in net income in 2014, according to Merchants Financial Group, Inc. President & CEO Rodney R. Nelson.

It is MFGI’s second highest year in terms of performance, less than $100,000 behind the record year of 2012, when net income was $12,439,492. MFGI has a history of consistent performance. In 2013, MFGI reported net income of $11,612,049.

“Our performance results from the team effort of our talented staff across all of our locations,” Nelson said. “We are pleased with our earnings, which were more than 15 percent over our plan, and we also anticipate continued growth.”

One of the key drivers in the 2014 performance was continued commercial loan growth, which was up 13.97% over 2013. Credit quality was again very strong. Total loan balances increased to $1,107.0 billion, up from $972.3 million in 2013. Total deposits increased to $1,207.0 billion, up from 1,128.8 billion in 2013. Total equity increased to $131.1 million, up from $116.0 million in 2013. The asset size of the Merchants organization also increased to $1,522.6 billion, up from $1,366.0 billion in 2013.

“We are pleased to share these numbers with our shareholders and customers. The numbers show we are well-positioned for continued success,” Nelson said. “We are especially proud of the long-term relationships our employees have built with our customers, helping those customers reach their business and personal financial goals.”