Merchants Financial Group (MFGI) has announced to shareholders mid-year net income of $10.23 million, according to MFGI president and CEO Gregory M. Evans.
“The strength and diversity of Merchants’ balance sheet continues to drive profitable performance amidst a market environment of tight liquidity and interest margins,” Evans said. “I credit our team for enabling Merchants to remain favorably positioned compared to the broader banking industry.”
Net income through the second quarter was $1.1 million behind MFGI’s plan for 2024 and $3.4 million behind 2023’s second quarter performance. A significant driver of variance to plan included an additional provision of $850,000 to Merchants’ Allowance for Credit Loss for the second quarter due to identified increased risk in the consolidated loan portfolio. In total, credit risk analysis resulted in provision adjustments of $1.1 million more than planned through the first two quarters of the year.
Total deposits increased slightly to $2.25 billion, a 7.36% increase from 2023 and $27.9 million above plan. Loan growth is being managed intentionally with total net loans remaining stable at $2.18 billion, which is 1.52% above plan. Despite a challenging interest rate environment, mortgage loans for the first half of 2024 were $120.9 million. This volume exceeded Merchants’ mid-year target by $8.3 million.
