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.

Merchants Financial Group, Inc. Posts First Half Net Income of $6,104,872

WINONA, Minn. – Merchants Financial Group, Inc. (MFGI) posted net income of $6,104,872 for the first half of 2013, according MFGI President & CEO Richard L. Mahoney.

“The positive work of our employees over the past several years and over the first six months of this year continue to enhance the value of Merchants Bank,” Mahoney said. “I look forward to their continued great work as we move toward meeting our goals.”

Net income through the first six months is still ahead of plan. It is slightly behind last year’s net income of $6,183,933. Merchants had record profit in 2012 with net income of $12.439 million. Current asset size is $1.3 billion, and Merchants remains in an excellent equity position.

“We continue to look closely at opportunities that become available and fit with our long-term plan,” Mahoney said. Mahoney recently announced his retirement at the end of the year. He will be succeeded by Winona Charter President and MFGI Executive Vice President Rod Nelson.

Merchants stock is closely held, but is available to the public when shares become available. There are approximately 400 shareholders, mostly individuals and families from southeastern Minnesota and west-central Wisconsin. Merchants also has an Employee Stock Ownership Program (ESOP).