SOURCE: Merchants Bancshares, Inc.

Merchants Bancshares, Inc.

January 28, 2014 16:01 ET

Merchants Bancshares, Inc. Announces 2013 Results Highlighted by 9% Growth in Average Loans

SOUTH BURLINGTON, VT--(Marketwired - Jan 28, 2014) - Merchants Bancshares, Inc. (NASDAQ: MBVT), the parent company of Merchants Bank, today announced net income of $3.82 million and $15.13 million, or diluted earnings per share of $0.60 and $2.40, for the three months and year ended December 31, 2013, respectively. This compares to net income of $3.84 million and $15.19 million, or diluted earnings per share of $0.61 and $2.42, for the three months and year ended December 31, 2012, respectively.

The return on average assets was 0.91% and 0.90% for the three months and year ended December 31, 2013, respectively, compared to 0.91% and 0.92% for the same periods in 2012. The return on average equity was 13.07% and 12.97% for the three months and year ended December 31, 2013, respectively, compared to 13.08% and 13.37% for the same periods in 2012. We previously announced the declaration of a dividend of $0.28 per share, payable February 20, 2014, to shareholders of record as of February 6, 2014.

Shareholders' equity ended the year at $119.61 million, and our book value per share was $18.93 at December 31, 2013. Our capital ratios remain strong at December 31, 2013, with a Tier 1 leverage ratio of 8.44%, compared to 8.08% at December 31, 2012, and a total risk-based capital ratio of 16.12%, compared to 16.00% at December 31, 2012.

"We are very pleased to report another strong year for our company. The loan growth we experienced during the first three quarters of 2013 allowed us to shrink our investment portfolio and reduce our exposure to price volatility associated with fixed rate bonds. Although the margin continued to decline, the rate of compression slowed as the yield curve steepened. We were able to reduce costs enough to offset the decline in net interest income," commented Michael R. Tuttle, our President and CEO.

We realized a one time gain of $898 thousand during the fourth quarter in conjunction with the sale of one of our locations. The total gain on the sale was $1.83 million; the balance of the gain of $934 thousand will be deferred and amortized over 10 years as we are leasing back a portion of the sold property. We also took an impairment charge totaling $166 thousand related to our $38 million portfolio of collateralized loan obligations ("CLOs") portfolio. Under the recently finalized Volcker rule, we may be required to divest of some of our CLOs by July of 2015. During January of 2014 we sold $15.74 million of our CLOs for a modest gain.

Quarterly average loan balances for the fourth quarter were $1.17 billion, an increase of $96 million over average loan balances for the fourth quarter of 2012; this represents an average annualized growth rate of 9%. 

The following table summarizes the components of our ending loan portfolio balances as of the periods indicated:

             
(In thousands)   December 31, 2013   September 30, 2013   December 31, 2012
Commercial, financial and agricultural   $ 172,810   $ 163,138   $ 165,023
Municipal loans     94,007     96,491     84,689
Real estate loans - residential     489,706     493,667     460,395
Real estate loans - commercial     371,319     373,085     357,178
Real estate loans - construction     31,841     32,768     10,561
Installment loans     5,655     5,898     4,701
All other loans     895     454     376
Total loans   $ 1,166,233   $ 1,165,501   $ 1,082,923
                   
                   

Year to date growth in our commercial loan portfolio has been primarily driven by new customer acquisition and expansion of existing relationships. Higher long-term interest rates have led to a reduction in refinancing applications in our residential loan portfolio resulting in lower outstanding balances. Heightened competition in the commercial real estate space resulted in a reduction in that segment of our portfolio during the quarter.

The average investment portfolio balance for the fourth quarter of 2013 was $402.99 million, a reduction of $107.57 million from the fourth quarter of 2012. The ending balance in the investment portfolio at December 31, 2013 was $393.34 million, compared to $509.09 million at December 31, 2012. We intentionally allowed the investment portfolio to run off during the year and deployed the cash to fund our loan growth. This allowed us to control overall asset growth and strengthen our capital ratios and returns.

Very strong credit quality combined with low loan growth during the fourth quarter resulted in a zero provision for credit losses during the fourth quarter of 2013. Year to date our provision for credit losses totaled $800 thousand, compared to $250 thousand and $950 thousand for the three months and year ended December 31, 2012, respectively. Our overall loan growth during 2013 was the primary factor for the provision in 2013. Credit quality improved further during the quarter with non-performing loans at $906 thousand, or 0.08% of total loans at the end of 2013. 

Total deposits at December 31, 2013 were $1.32 billion compared to December 31, 2012 balances of $1.27 billion. Total average deposits for the fourth quarter of 2013 were $1.32 billion, a $75.27 million increase over average balances for the fourth quarter of 2012. This represents a 6.03% annualized growth rate. Growth during 2013 has been concentrated in our transaction account categories, with continued reductions in time deposit balances. Securities sold under agreement to repurchase, which represent collateralized customer accounts, increased $70.82 million to $250.31 million at December 31, 2013 from $179.49 million at September 30, 2013, and decreased $37.21 million from $287.52 million at December 31, 2012. The quarter-over-quarter increase was a result of seasonal municipal cash flows, while the decrease compared to 2012 year end resulted from migration to deposit products.

Our taxable equivalent net interest income was $12.74 million and $50.96 million for the three months and year ended December 31, 2013, respectively, compared to $13.02 million and $51.99 million for the same periods in 2012. Our taxable equivalent net interest margin decreased four basis points to 3.10% for the fourth quarter of 2013 from 3.14% for the third quarter of 2013. Quarter-over-quarter and year-over-year, our taxable equivalent net interest margin decreased 10 basis points and 13 basis points, respectively. The margin compression during the fourth quarter of 2013 was due primarily to temporarily high cash balances, driven by a combination of seasonal municipal cash flows, flat linked quarter loan balances and a smaller securities portfolio. Most of the margin compression during 2013 was concentrated in our average asset yields, which decreased 25 basis points during 2013. Average loans yields decreased 38 basis points and average investment yields decreased 14 basis points. One of the factors influencing our loan yields was an increase in variable rate loans. Average variable rate loans for the fourth quarter of 2013 were $315.58 million, an increase of $53.63 million from the fourth quarter of 2012. These loans have a lower current yield than fixed rate loans, but will have higher yields when rates start to rise.

Total noninterest income increased $736 thousand to $3.52 million for the fourth quarter of 2013 compared to the third quarter of 2013 and decreased $983 thousand to $11.63 million for 2013 compared to 2012. Excluding net gains on investment securities, other than temporary impairment charges, and gains on sales of other assets, total noninterest income increased $19 thousand to $2.80 million for the fourth quarter of 2013 compared to the third quarter of this year, and decreased $9 thousand to $11.01 million for 2013 compared to 2012. Increases in cash management fees and other service charge income offset continued reductions in overdraft fees during 2013. Trust division income increased $377 thousand for 2013 compared to 2012. Other noninterest income decreased $318 thousand to $1.09 million for 2013 compared to 2012; $168 thousand of this reduction was a result of the discontinuation of our credit card affinity program at the end of 2012.

Total noninterest expense increased $1.04 million to $10.94 million for the fourth quarter of 2013 compared to the third quarter of 2013 and decreased $1.85 million to $40.62 million for 2013 compared to 2012. Excluding a $1.36 million prepayment penalty incurred during 2012, noninterest expense decreased $485 thousand for the year ended December 31, 2013 compared to 2012.

  • Total compensation and benefits increased $352 thousand for the fourth quarter of 2013 compared to the third quarter of 2013 and decreased $417 thousand for the year ended December 31, 2013 compared to 2012. There are a number of reasons for these changes. Strong growth and performance ahead of plan triggered an addition to our incentive accrual of $120 thousand during the fourth quarter of 2013. Additionally, a number of vacant positions were filled during the quarter. We experienced higher than usual claim volume in our self funded group health insurance plan during the fourth quarter of this year leading to an additional expense of $140 thousand. The decrease for 2013 compared to 2012 was primarily a result of reduced employee benefit costs as normal salary increases for 2013 were offset by reduced incentive expense. Expenses related to our group health insurance plan were $146 thousand lower for the year ended December 31, 2013 compared to 2012. Additionally, the overfunded status of our pension plan produced $162 thousand in income for us in 2013 compared to an expense of $252 thousand in 2012.
  • Occupancy and equipment expenses increased $294 thousand to $2.20 million for the fourth quarter of 2013 compared to the third quarter of this year, and increased $605 thousand for year ended December 31, 2013 compared to 2012. This increase was a result of additional investments we made in our facilities and in technology to increase efficiency and improve customer service. Additionally, we will be changing our core system provider during 2014 and have accelerated the write off of certain assets during the fourth quarter related to the current core system.
  • The timing of certain events and donations resulted in a $205 thousand increase in marketing expenses for the fourth quarter of 2013 compared to the third quarter of 2013. Year to date marketing expenses are $85 thousand lower than 2012.
  • The timing of investments in low income housing partnerships and their associated tax credits led to a reduction in expenses related to real estate limited partnerships to $1.08 million for the year ended December 31, 2013 compared to $1.52 million for 2012.

Our effective tax rate for 2013 was negatively impacted by the timing of investments in low income housing partnerships discussed above, which produced a lower level of tax credits for us in 2013 compared to 2012. This was offset by the positive impact on our tax rate of the donation of our branch building in North Bennington, Vermont, to a non-profit organization during the second quarter of 2013. Our effective tax rate for both 2012 and 2013 was 21%.

Michael R. Tuttle, our President and Chief Executive Officer, Janet P. Spitler, our Executive Vice President and Chief Financial Officer and Geoffrey R. Hesslink, our Executive Vice President, Chief Operating Officer and Senior Lender, will host a conference call to discuss these earnings results, business highlights and outlook at 9:00 a.m. Eastern Time on Wednesday, January 29, 2014. Interested parties may participate in the conference call by dialing U.S. number (888) 317-6016, Canada number (855) 669-9657, or international number (412) 317-6016. The title of the call is Merchants Bancshares, Inc. Q4 2013 Earnings Call. Participants are asked to call a few minutes prior to register. A replay will be available until 9:00 a.m. Eastern Time on February 6, 2014. The U.S. replay dial-in telephone number is (877) 344-7529. The international replay telephone number is (412) 317-0088. The replay access code for both replay telephone numbers is 10036734. Additionally, a webcast of the call will be available on our website at www.mbvt.com shortly after the conclusion of the call.

Established in 1849, Merchants Bank is the largest Vermont-based bank, independent and locally operated. Consumer, business, municipal and investment customers enjoy personalized relationships, sophisticated online and mobile banking options, more than 30 community bank locations statewide, plus a nationwide network of over 55,000 surcharge-free Allpoint ATMs. Merchants Bank (Member FDIC, Equal Housing Lender) (NASDAQ: MBVT), and Merchants Trust Company employ approximately 300 full-time employees and 40 part-time employees statewide, and has earned several "Best Place to Work in Vermont" awards. American Banker ranks Merchants Bank #10 in America among 851 peers. www.mbvt.com

Non-GAAP Financial Measure. In addition to results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures. In several places net interest income is presented on a fully taxable equivalent basis. Specifically included in interest income was tax-exempt interest income from certain tax-exempt loans. An amount equal to the tax benefit derived from this tax exempt income is added back to the interest income total, to produce net interest income on a fully taxable equivalent basis. The amount added back was $530 thousand and $2.06 million, respectively, for the three months and year ended December 31, 2013, compared to $484 thousand and $2.02 million, respectively, for the same periods in 2012. An additional non-GAAP financial measure we use is the tangible capital ratio. Because we have no intangible assets, our tangible shareholder's equity is the same as our shareholder's equity. We believe that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Certain statements contained in this press release that are not historical facts may constitute forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. These statements, which are based on certain assumptions and describe Merchants' future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on the current assumptions and beliefs of management and are only expectations of future results. Our actual results could differ materially from those projected in the forward-looking statements as a result of, among others, continued weakness in general, national, regional or local economic conditions, the performance of our investment portfolio, quality of credits or the overall demand for services; changes in loan default and charge-off rates which could affect the allowance for credit losses; volatility in the equity and financial markets; reductions in deposit levels which could necessitate increased and/or higher cost borrowing to fund loans and investments; declines in mortgage loan refinancing, equity loan and line of credit activity which could reduce net interest and non-interest income; changes in the domestic interest rate environment and inflation; changes in the carrying value of investment securities and other assets; misalignment of our interest-bearing assets and liabilities; increases in loan repayment rates affecting interest income and the value of mortgage servicing rights; changing business, banking, or regulatory conditions or policies, or new legislation affecting the financial services industry that could lead to changes in the competitive balance among financial institutions, restrictions on bank activities, changes in costs (including deposit insurance premiums), increased regulatory scrutiny, declines in consumer confidence in depository institutions, or changes in the secondary market for bank loans and other products; and changes in accounting rules, federal and state laws, IRS regulations, and other regulations and policies governing financial holding companies and their subsidiaries which may impact our ability to take appropriate action to protect our financial interests in certain loan situations.

You should not place undue reliance on our forward-looking statements, and are cautioned that forward-looking statements are inherently uncertain. Actual performance and results of operations may differ materially from those projected or suggested in the forward-looking statements due to certain risks and uncertainties, which are included in more detail in our Annual Report on Form 10-K, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

   
Merchants Bancshares, Inc.  
Financial Highlights (unaudited)  
(Dollars in thousands except share and per share data)  
                   
    December 31,   September 30,   December 31,   September 30,  
    2013   2013   2012   2012  
Balance Sheets - Period End                          
Total assets   $ 1,725,469   $ 1,667,130   $ 1,708,550   $ 1,685,836  
Loans     1,166,233     1,165,501     1,082,923     1,072,879  
Allowance for loan losses ("ALL")     12,042     12,199     11,562     11,444  
Net loans     1,154,191     1,153,302     1,071,361     1,061,435  
Investments-available for sale, taxable     252,513     269,676     508,681     526,257  
Investments-held to maturity, taxable     140,826     136,017     407     443  
Federal Home Loan Bank ("FHLB") stock     7,496     7,496     8,145     8,145  
Cash and due from banks     30,434     35,634     34,547     30,097  
Interest earning cash and other short-term investments     85,037     21,648     42,681     22,935  
Other assets     54,972     43,357     42,728     36,524  
Non-interest bearing deposits     266,299     267,608     240,491     227,879  
Savings, interest bearing checking and money market accounts     752,171     745,814     700,191     687,267  
Time deposits     305,106     317,824     330,398     337,817  
Total deposits     1,323,576     1,331,246     1,271,080     1,252,963  
Short-term borrowings     --     8,200     --     55,600  
Securities sold under agreement to repurchase, short-term     250,314     179,490     287,520     227,996  
Other long-term debt     2,403     2,423     2,483     2,503  
Junior subordinated debentures issued to unconsolidated subsidiary trust    
20,619
   
20,619
   
20,619
   
20,619
 
Other liabilities     8,946     8,229     8,627     8,126  
Shareholders' equity     119,611     116,923     118,221     118,029  
                           
Balance Sheets - Quarter-to-Date Averages                          
Total assets   $ 1,685,103   $ 1,661,517   $ 1,682,673   $ 1,649,457  
Loans     1,169,935     1,154,967     1,074,007     1,064,507  
Allowance for loan losses     12,256     11,946     11,542     11,309  
Net loans     1,157,679     1,143,021     1,062,465     1,053,198  
Investments-available for sale, taxable     265,667     310,165     510,129     499,224  
Investments-held to maturity, taxable     137,319     109,753     428     464  
FHLB stock     7,496     7,496     8,145     8,145  
Cash and due from banks     29,626     27,913     28,730     25,793  
Interest earning cash and other short-term investments     47,624     21,700     26,036     16,241  
Other assets     39,692     41,469     46,740     46,392  
Non-interest bearing deposits     267,838     252,795     235,007     220,646  
Savings, interest bearing checking and money market accounts     744,634     772,234     680,330     677,321  
Time deposits     310,817     318,795     332,678     341,231  
Total deposits     1,323,289     1,343,824     1,248,015     1,239,198  
Short-term borrowings     198     26,451     34,347     60,141  
Securities sold under agreement to repurchase, short-term     212,313     145,962     250,355     196,117  
Other long-term debt     2,409     2,430     2,490     9,032  
Junior subordinated debentures issued to unconsolidated subsidiary trust    
20,619
   
20,619
   
20,619
   
20,619
 
Other liabilities     9,297     8,150     9,430     9,466  
Shareholders' equity     116,978     114,081     117,417     114,884  
Earning assets     1,628,041     1,604,081     1,618,745     1,588,581  
Interest bearing liabilities     1,290,990     1,286,491     1,320,819     1,304,461  
                           
Ratios and Supplemental Information - Period End                          
Book value per share   $ 19.94   $ 19.50   $ 19.84   $ 19.82  
Book value per share (1)   $ 18.93   $ 18.53   $ 18.82   $ 18.81  
Tier I leverage ratio     8.44 %   8.42 %   8.08 %   8.10 %
Total risk-based capital ratio     16.12 %   16.13 %   16.00 %   15.83 %
Tangible capital ratio (2)     6.93 %   7.01 %   6.92 %   7.00 %
Period end common shares outstanding (1)     6,318,708     6,311,332     6,282,385     6,274,683  
                           
Credit Quality - Period End                          
Nonperforming loans ("NPLs")   $ 906   $ 2,684   $ 2,912   $ 2,740  
Nonperforming assets ("NPAs")   $ 1,015   $ 2,707   $ 2,912   $ 2,740  
NPLs as a percent of total loans     0.08 %   0.23 %   0.27 %   0.26 %
NPAs as a percent of total assets     0.06 %   0.16 %   0.17 %   0.16 %
ALL as a percent of NPLs     1329 %   455 %   397 %   418 %
ALL as a percent of total loans     1.03 %   1.05 %   1.07 %   1.07 %
                           
   
(1) This book value and period end common shares outstanding includes 319,854; 314,956; 324,515; and 319,572 Rabbi Trust shares for the periods noted above, respectively.
(2) The tangible capital ratio is calculated by dividing tangible equity by tangible assets. Because we have no intangible assets, our tangible shareholder's equity is the same as our shareholder's equity.
   
   
         
    For the Twelve Months Ended
    December 31,
    2013   2012
Balance Sheets - Year-to-Date Averages            
Total assets   $ 1,677,342   $ 1,648,393
Loans     1,133,637     1,057,446
Allowance for loan losses     11,935     11,182
Net loans     1,121,702     1,046,264
Investments-available for sale, taxable     385,604     500,667
Investments-held to maturity, taxable     62,457     482
FHLB stock     7,618     8,235
Cash and due from banks     27,087     25,217
Interest earning cash and other short-term investments     27,909     20,360
Other assets     44,965     47,168
Non-interest bearing deposits     246,011     214,113
Savings, interest bearing checking and money market accounts     731,476     665,399
Time deposits     321,962     342,911
Total deposits     1,299,449     1,222,423
Short-term borrowings     17,260     38,290
Securities sold under agreement to repurchase, short-term     212,644     230,281
Other long-term debt     2,439     13,667
Junior subordinated debentures issued to unconsolidated subsidiary trust     20,619     20,619
Other liabilities     8,291     9,492
Shareholders' equity     116,640     113,621
Earning assets     1,617,225     1,587,190
Interest bearing liabilities     1,306,400     1,311,167
             
             
                       
    For the Three Months Ended   For the Twelve Months Ended  
    December 31,   September 30,   December 31,   December 31,   December 31,  
    2013   2013   2012   2013   2012  
Operating Results                                
Interest income                                
Interest and fees on loans   $ 11,123   $ 11,070   $ 11,117   $ 43,987   $ 44,977  
Interest and dividends on investments     2,293     2,314     2,846     9,980     11,880  
Total interest and dividend income     13,416     13,384     13,963     53,967     56,857  
Interest expense                                
Deposits     928     948     803     3,350     3,551  
Securities sold under agreement to repurchase and other short-term borrowings     97     83     336     914     1,790  
Long-term debt     204     201     289     806     1,542  
Total interest expense     1,229     1,232     1,428     5,070     6,883  
Net interest income     12,187     12,152     12,535     48,897     49,974  
Provision for credit losses     --     400     250     800     950  
Net interest income after provision for credit losses     12,187     11,752     12,285     48,097     49,024  
Noninterest income                                
Trust division income     784     759     685     3,062     2,685  
Service charges on deposits     1,017     995     1,077     3,989     4,078  
Debit card income, net     761     720     752     2,875     2,854  
Gain (losses) on investment securities, net     --     1     85     (12 )   507  
Other-than-temporary impairment losses on securities     (166 )   --     --     (166 )   --  
Gain on sale of other assets     884     --     --     794     1,083  
Other noninterest income     242     311     386     1,088     1,406  
Total noninterest income     3,522     2,786     2,985     11,630     12,613  
Noninterest expense                                
Compensation and benefits     5,106     4,754     4,826     19,165     19,582  
Occupancy and equipment expenses     2,204     1,910     1,925     8,057     7,452  
Legal and professional fees     754     695     591     2,755     2,545  
Marketing expenses     598     393     577     1,756     1,841  
Equity in losses of real estate limited partnerships, net     273     271     327     1,084     1,516  
State franchise taxes     357     363     330     1,439     1,295  
FDIC insurance     217     215     222     872     866  
Prepayment penalty     --     --     --     --     1,363  
Other real estate owned     37     17     68     121     197  
Other noninterest expense     1,396     1,282     1,498     5,369     5,809  
Total noninterest expense     10,942     9,900     10,364     40,618     42,466  
Income before provision for income taxes     4,767     4,638     4,906     19,109     19,171  
Provision for income taxes     944     964     1,066     3,978     3,977  
Net income   $ 3,823   $ 3,674   $ 3,840   $ 15,131   $ 15,194  
                                 
Ratios and Supplemental Information                                
Weighted average common shares outstanding     6,315,936     6,308,796     6,279,279     6,302,494     6,258,832  
Weighted average diluted shares outstanding     6,330,303     6,323,602     6,291,237     6,315,936     6,271,102  
Basic earnings per common share   $ 0.61   $ 0.58   $ 0.61   $ 2.40   $ 2.43  
Diluted earnings per common share   $ 0.60   $ 0.58   $ 0.61   $ 2.40   $ 2.42  
Return on average assets     0.91 %   0.88 %   0.91 %   0.90 %   0.92 %
Return on average shareholders' equity     13.07 %   12.89 %   13.08 %   12.97 %   13.37 %
Average yield on loans     3.95 %   4.00 %   4.30 %   4.06 %   4.44 %
Average yield on investments     2.19 %   2.14 %   2.17 %   2.18 %   2.32 %
Average yield of earning assets     3.40 %   3.45 %   3.55 %   3.46 %   3.71 %
Average cost of interest bearing deposits     0.34 %   0.34 %   0.32 %   0.32 %   0.35 %
Average cost of borrowed funds     0.51 %   0.58 %   0.81 %   0.68 %   1.10 %
Average cost of interest bearing liabilites     0.37 %   0.38 %   0.43 %   0.39 %   0.52 %
Net interest rate spread     3.03 %   3.07 %   3.12 %   3.07 %   3.19 %
Net interest margin     3.10 %   3.14 %   3.20 %   3.15 %   3.28 %
Net interest income on a fully taxable equivalent basis   $ 12,735   $ 12,713   $ 13,019   $ 50,955   $ 51,989  
Net recoveries (charge-offs) to Average Loans     (0.01 )%   (0.01 )%   0.00 %   (0.02 )%   0.00 %
Net recoveries (charge-offs)   $ (162 ) $ (67 ) $ (18 ) $ (283 ) $ 9  
Efficiency ratio (1)     66.20 %   59.63 %   60.74 %   61.28 %   60.63 %
   
(1) The efficiency ratio excludes amortization of intangibles, equity in losses of real estate limited partnerships, OREO expenses, gain/loss on sales of securities, state franchise taxes, and any significant nonrecurring items.
   
Note: As of December 31, 2013, Merchants Bank had off-balance sheet liabilities in the form of standby letters of credit to customers in the amount of $4.73 million.
Amounts reported for prior periods are reclassified, where necessary, to be consistent with the current period presentation.
   
   

Contact Information

  • Contact:
    Margaret Bouffard
    Merchants Bank
    (802) 865-1807