Merchants and Manufacturers Bank's business-focused operating model has driven consistent growth in total loans, total assets and total deposits. Net interest income, reflecting disciplined margin management and pricing, has grown steadily, even during challenging economic years. This underscores the success of the bank's new business outreach, high customer retention rates (virtually no business customer attrition during the past decade), and efficient operations.
The company has experienced growth in its core earnings, as measured by Net Operating Income (pre-tax) plus provisions to the loan loss reserve, during the past ten years. This earnings growth has accelerated over the past five years as the bank has reached certain economies of scale and as asset growth has accelerated. The strong growth over the last two years has been instrumental in allowing the bank to recognize losses in its loan portfolio related to the economic downturn yet still show an overall profit in both years. Management believes this strong foundation of core earnings will allow it to post better than historical earnings performances in the years and decades to come.
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Our focus on serving small and midsize manufacturers and distributors enables us to tap a large and generally underserved group of businesses. While many of the businesses we serve aren't necessarily glamorous, they provide absolutely vital products and services. They employ thousands and generate profits, and we think that's glamorous. Most of our clients are owners who roll up their sleeves every day and actively run their businesses with a high degree of focus and efficiency. The Chicago area has thousands of manufacturing, light industrial and distribution companies. Many are family-owned and a large number have been family-owned for several generations. These businesses are our customers.
Larry Foy, CEO and co-founder of the bank, explains: "We're excited about the future of manufacturing in the Chicago area, northern Illinois and northern Indiana. There are thousands of small businesses manufacturing anything and everything. A great deal of manufacturing, particularly specialty and low-tech parts and products, is more efficient, cost effective and desirable to manufacture domestically. Domestic companies can offer short lead times, rapid delivery, high quality, specialty engineering, emergency replacement capabilities, and more."
For distribution, the Chicago metro area has long been the nation's transportation hub for both national and international shipping. Distributors have very specific financing and banking needs, yet they have largely been ignored by banks, states Mr. Foy.
Our customers need a bank that understands their financial needs without a lot of hassle and time-consuming explanation. They are experts in what they need to do to be successful. Because of our focus on these businesses and industries, we can be vital allies in achieving that success. We believe manufacturing and distribution remains an underserved market, presenting our institution with extensive opportunities for new business.
Contact: Larry Foy
The financial presentations presented herein are representative of the operating results of Merchants and Manufacturers Bank and not of its Holding Company, Merchants and Manufacturers Bank Corporation. Individuals interesting in investing in stock of the Holding Company should refer to separately provided Private Placement Memorandum or Offering Circulars provided during an official capital offering for the financial statements and results of Merchants and Manufacturers Bank Corporation. Merchants and Manufacturers Bank is a wholly-owned subsidiary and the only operating subsidiary of Merchants and Manufacturers Bank Corporation.