Merchants Financial Group announced third quarter earnings of $14.26 million. Net income fell in the third quarter to $3.92 million from $5.84 million in 2023’s third quarter and was lower than company expectations. An additional provision to Merchants’ Allowance for Credit Loss of $4.62 million caused the biggest variance to plan, as increased risk was identified in Merchants’ consolidated loan portfolio.

“Merchants continues to maintain a stable, profitable position while navigating in this economic cycle,” said MFGI President & CEO Gregory M. Evans. “Our community banking disciplines continue to position us for future strength and performance.”

Strong deposit growth continued in the third quarter with total deposits increasing to $2.33 billion, which was $74.5 million above plan and an 8.36% increase year-over-year. Total loans declined slightly to $2.317 billion, which was $42 million below plan but $75.3 million ahead of 2023.

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.