Merchants Financial Group, Inc Announces Earnings of Over $3,470,000 through First Quarter of 2019, Pays 70 Cents Per Share Dividend

Greg Evans, President & CEO

Merchants Financial Group, Inc. (MFGI) announced first quarter net income of just over $3,470,000 according to MFGI President & CEO Gregory M. Evans.

“We are on target for a strong 2019 and we’re pleased with both our financial results and progress on key strategic initiatives,” said Evans.

As a result of continued profitable performance, the MFGI Board of Directors authorized a semiannual dividend of 70 cents per share to shareholders during its April meeting. Dividends will be paid in June to shareholders of record as of May 17.

Net income is ahead of MFGI’s plan for 2019 by $442,818, but is behind performance of a year ago by $476,827. One impact on year-over-year earnings was a necessary contribution of an additional $240,000 in loan loss reserve put aside to cushion against possible future loan stress. Contributing to the overall positive first quarter performance, three of the Bank’s four regions exceeded their 2019 first quarter plans. Additionally, MFGI saw year-over-year growth in total loans of $80 million and total deposits of $53.2 million.

“Our commitment to provide exceptional service to our customers and support our communities is what continues to make us a unique player in the financial industry,” notes Evans. “It’s our stakeholders – everyone from our customers, employees, boards and shareholders – recognizing and valuing this commitment that has helped us achieve a solid start to 2019.”

The ownership of Merchants Financial Group 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 branches in southeastern Minnesota and west-central Wisconsin. Headquartered in Winona, MN, the Bank has more than $1.76 billion in assets and was founded in 1875.

 

Merchants Financial Group, Inc. Announces Earnings of $18,887,308 for 2018

Greg Evans, President & CEO

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.

Merchants Financial Group, Inc Announces Earnings of $9,152,505 through Second Quarter of 2018

Greg Evans, President & CEO

Merchants Financial Group, Inc. (MFGI) announced net income of $9,152,505 through the first two quarters of 2018, according to MFGI President & CEO Gregory M. Evans.

“This quarter’s performance was a true team effort – every one of our Bank Regions and our Merchants Bank Equipment Finance division exceeded its respective income plan for the first half of the year,” said Evans.

Net income is ahead MFGI’s plan by $2.1 million and is an increase of 53.51% compared to 2017 second quarter earnings. Some key contributors to the quarter’s financial performance include: strong loan volume in both the commercial and residential mortgage lending, a continued prudent focus on credit quality, and a decrease in loan loss reserve contribution as compared to last year.

“Our second quarter earnings enable us to help grow the communities we serve,” said Evans. “As a community bank, it’s important for us to continue to support our friends and neighbors not only through our personal and commercial banking services, but also monetary contributions to local non-profits.”

As of June 30, 2018, MFGI’s contributions and outstanding non-profit commitments are 3.25% of pre-tax income.

In reflecting on the rest of 2018, Evans said: “I’m looking forwarding to continuing the momentum we’ve had in the beginning of 2018 through the remainder of the year.”

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 Member FDIC and Equal Housing Lender. 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 more than 440 employees and its shareholders, mostly individuals and families from southeastern Minnesota and west-central Wisconsin

Merchants Financial Group, Inc. Announces Earnings of Nearly $3.95 Million Through the First Quarter of 2018

Greg Evans, President & CEO

Merchants Financial Group, Inc. (MFGI) announced net income of $3,949,425 through the first quarter of 2018, according to MFGI President & CEO Gregory M. Evans.

“It has been a very good start to the year thanks to the work of our employees across our locations,” Evans said. Net income for the first quarter was more than $1.8 million ahead of last year.

In acknowledgment of the performance, the MFGI Board of Directors authorized an 8.9% stockholder dividend increase from 56 cents per share to 61 cents per share.

“We had strong and consistent contributions throughout our company. Each of our four Bank regions was ahead of its plan for the year, as were our leasing division and our secondary market mortgage operation. We have experienced year-over-year deposit and loan growth, and we have focused on credit quality,” Evans said. “I am optimistic about the remainder of the year.”

Year-over-year deposit growth was $57.2 million, and year-over-year loan growth was $49.9 million. Mortgage loan volume for the first quarter was $75 million, exceeding the Company’s forecast by $5 million for the quarter. In addition to providing mortgage services for its locations, Merchants also provides correspondent mortgage banking services to more than 62 bank charters with 130 locations across Minnesota, Wisconsin, Iowa, and North and South Dakota.

MFGI has recorded three consecutive years of record net income. Net income in 2017 was $20,878,465, including $14,297,105 in core earnings, a record on its own, and a $6.5 million accounting adjustment as a result of the reduction of a deferred tax liability, necessitated by the passage of the Tax Cuts and Jobs Act of 2017.

MFGI owns 21 Merchants Bank locations, divided into four Bank regions, 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 Southeastern Minnesota and West-central Wisconsin.

Merchants Financial Group, Inc. Announces Record Earnings of $20,878,465 in 2017

Greg Evans, President & CEO

For the third consecutive year Merchants Financial Group, Inc. (MFGI) has recorded record earnings, ending 2017 with $20,878,465 in net income.

The record earnings report includes $14,297,105 in earnings from Merchants core business activity in 2017, which surpasses 2016’s record earnings total by $140,000 on its own. Additionally, Merchants recorded an accounting adjustment of more than $6.5 million as a result of the reduction of a deferred tax liability, necessitated by the passage of the Tax Cuts and Jobs Act of 2017 occurring before year-end, according to MFGI President & CEO Gregory M. Evans.

“We are especially pleased with the work of our team across all of our locations in pushing our core earnings to a record level,” Evans said. “While we appreciate the addition of the extra income that comes from the tax act, it can only be viewed as a one-time addition to our bottom line because of the deferred tax line item on our balance sheet.”

MFGI benefitted from the Tax Cuts and Jobs Act of 2017 primarily because of depreciable assets leased to commercial clients through the Company’s equipment finance division, Merchants Bank Equipment Finance (MBEF) in Minneapolis. The corporate tax rate reduction impacted the reduction of that future tax payment liability, creating the additional income accounting adjustment. Because of the significant year-over-year increase in reported net income, the MFGI Board of Directors authorized a special $1 per share dividend to be paid to shareholders. That dividend payment will be made March 30 to shareholders of record as of February 9.

Evans said MFGI’s focus is on the core earnings of the company, and he credited deposit growth, strong mortgage activity and commercial loan growth for contributing to the record year.

“I am exceptionally proud of our team and the work we did together, especially over the last quarter of the year to reach this level of accomplishment,” Evans said, noting that MFGI’s net income through the first three quarters of 2017 was at $8,841,114.

MFGI’s net income was $14,154,891 for 2016 and $13,454,698 for 2015. MFGI’s stock continues to perform well, trading today at $71.00 per share.

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 more than 440 employees and its shareholders, mostly individuals and families from southeastern Minnesota and west-central Wisconsin.

Merchants Financial Group, Inc. Announces Earnings of $8.84 million Through the Third Quarter of 2017

GregEvansPresidentCEO

Merchants Financial Group, Inc. (MFGI) announced net income of $8,841,114 through the first three quarters of 2017, according to MFGI President & CEO Gregory M. Evans.

Evans said MFGI is enjoying both commercial loan and deposit growth, and mortgage loan volume also continues to be strong.

“Our core business continues to perform very well and drive our profitability,” Evans said. “Our community bankers continue to build our business by providing our customers guidance, convenience and excellent service across all of our locations.”

Net income is behind 2016’s pace, when MFGI had record earnings. Evans said that in alignment with MFGI’s conservative approach, $1.4 million was set aside for additional loan loss reserves in the third quarter. MFGI also made adjustments to loan loss reserves in each of the first two quarters of 2017. To date in 2017, MFGI has put aside more than $3.4 million in loan loss reserves to cushion against possible future loan stress, most notably in the ag sector. Evans said actual loan charge-off activity is negligible.

Evans reported the MFGI Board of Directors approved retaining a 56-cent per share dividend during its October meeting. MFGI stock continues to perform well, trading at $62.35 per share, compared to $48.75 a year ago.

“We are optimistic about the remainder of our year, and we expect continued good results,” Evans said.

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.

The ownership of Merchants Financial Group is made up of its 440 employees and its shareholders, mostly individuals and families from southeastern Minnesota and west-central Wisconsin.

Merchants Financial Group, Inc. Posts Earnings of Nearly $6 million Through the Second Quarter of 2017

GregEvansPresidentCEOMerchants Financial Group, Inc. (MFGI) announced net income of $5,970,031 through the second quarter of 2017, according to MFGI President & 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 southeastern Minnesota and west-central Wisconsin.