SOURCE: Merchants Bancshares, Inc.

Merchants Bancshares, Inc.

October 24, 2012 17:48 ET

Merchants Bancshares, Inc. Announces Third Quarter 2012 Results -- Year-to-Date Results up 4% Over 2011 Driven by Continued Loan and Deposit Growth

SOUTH BURLINGTON, VT--(Marketwire - Oct 24, 2012) - Merchants Bancshares, Inc. (NASDAQ: MBVT), the parent company of Merchants Bank, today announced net income of $4.00 million and $11.35 million, or diluted earnings per share of $0.64 and $1.82 for the three and nine months ended September 30, 2012, respectively. This compares to earnings of $4.18 million and $10.91 million, or diluted earnings per share of $0.67 and $1.76 for the three and nine months ended September 30, 2011, respectively. The return on average assets was 0.97% and 0.92% for the quarter and nine months ended September 30, 2012, compared to 1.11% and 0.98% for the same periods in 2011. The return on average equity was 13.95% and 13.47% for the quarter and nine months ended September 30, 2012, compared to 15.84% and 14.23% for the same periods in 2011. We previously announced the declaration of a dividend of $0.28 per share, payable November 15, 2012, to shareholders of record as of November 1, 2012. This quarter represents our 64th consecutive quarterly dividend payment and our 28th consecutive quarter at the current payout level.

Total assets ended the quarter at $1.69 billion and total shareholders' equity ended the quarter at $118.03 million. Our book value per share was $18.81 at September 30, 2012. Our Tier 1 leverage ratio was 8.10%, total risk-based capital ratio was 15.83% and tangible capital ratio was 7.00% at September 30, 2012.

"The third quarter results exhibit improvement on a linked quarter basis. We are on track to record another strong year in 2012. The rate of growth for the past twelve months has added significantly to the core earnings base for our company. Average loans for the third quarter are up 6% over the third quarter of last year. Although we expect the economic environment to pose some challenges, we remain confident in our ability to grow and maintain strong asset quality," commented Michael R. Tuttle, our President and Chief Executive Officer.

Our taxable equivalent net interest income was $13.15 million and $38.97 million for the three and nine months ended September 30, 2012, respectively, compared to $13.27 million and $38.39 million for the same periods in 2011; and $12.86 million for the second quarter of 2012. Our taxable equivalent net interest margin increased slightly during the third quarter of 2012 to 3.29% from 3.27% for the second quarter of this year. This quarter-over-quarter increase is driven by a reduction in our average cost of borrowed funds to 0.98% for the third quarter of 2012 from 1.30% for the second quarter of 2012. The decrease in borrowing cost was primarily driven by reduced costs associated with our customer repurchase agreements combined with our prepayment of Federal Home Loan Bank ("FHLB") debt discussed below. Year-to-date the net interest margin has decreased 26 basis points to 3.30%, compared to 3.56% for the first nine months of 2011. Our continued growth in earning assets has helped to offset margin compression and allowed us to increase net interest income for the first nine months of 2012, compared to the first nine months of 2011. Average earning assets for the three and nine months ended September 30, 2012 were $1.59 billion and $1.58 billion, respectively, an increase of $129.39 million and $135.06 million over the same periods in 2011; and an increase of $8.38 million over the second quarter of 2012.

The extended low interest rate environment continues to present a challenge as our assets reprice down at a steady rate and new assets come on at lower rates. Overall asset yields were 3.68% for the third quarter of 2012, compared to 3.76% for the second quarter of 2012 and 4.19% for the third quarter of last year. The average rate on our loan portfolio was 4.40% for the third quarter of 2012, an 8 basis point decrease from the second quarter of 2012, and a 39 basis point decrease from the third quarter of 2011. The average rate on our investment portfolio for the third quarter of 2012 was 2.30%, a 7 basis point decrease from the second quarter of 2012, and a 107 basis point decrease from the third quarter of 2011. These decreases were offset, in part, by decreases in the cost of our interest bearing liabilities. The average cost of interest bearing liabilities for the third quarter of 2012 was 48 basis points, a 10 basis point decrease from the second quarter of this year, and a 21 basis point decrease from the third quarter of 2011. We prepaid $10.00 million in long-term FHLB debt on August 30, 2012, and paid a prepayment penalty of $677 thousand. We have prepaid a total of $20 million in long-term FHLB advances at a rate of 2.75% during 2012, incurring total prepayment penalties of $1.36 million. These prepayments will reduce our overall cost of funds going forward.

Ending loan balances at September 30, 2012 were $1.07 billion, an increase of $45.25 million over ending loan balances at December 31, 2011. This represents an annualized loan growth rate of 6%. Quarterly average loans for the third quarter of 2012 were $50.40 million higher than for the fourth quarter of 2011. Year-to-date growth in our commercial loan portfolio has been driven by new customer acquisition and expansion of existing relationships, partially offset by decreased line of credit utilization during the third quarter of 2012. Reduced loan demand by our municipal customers has led to a year-to-date reduction in municipal balances. Growth in our residential real estate loan portfolio continues to be driven by increased mortgage refinance volume due to the low interest rate environment.

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

             
(In thousands)   September 30, 2012   June 30, 2012   December 31, 2011
Commercial, financial and agricultural   $169,450   $173,114   $146,990
Municipal loans   82,048   42,578   101,705
Real estate loans - residential   477,321   464,202   439,818
Real estate loans - commercial   327,182   329,698   313,915
Real estate loans - construction   11,285   9,875   18,993
Installment loans   5,259   5,842   5,806
All other loans   334   356   399
Total loans   $1,072,879   $1,025,665   $1,027,626
             

We recorded a $250 thousand and $700 thousand provision for credit losses during the three and nine months ended September 30, 2012, respectively, compared to a provision of $250 thousand and $500 thousand for the three and nine months ended September 30, 2011, respectively. Asset quality remained high throughout 2012 and continues to be a core strength for our company. Our continued loan growth was the primary factor for the provision to date in 2012. Our nonperforming asset totals decreased to $2.74 million at September 30, 2012, compared to $3.52 million at June 30, 2012 and $2.87 million at December 31, 2011. There were no loans fully or partially charged-off during the third quarter of 2012 and year-to-date we have booked net recoveries of $27 thousand. Our total accruing substandard loans remain low at 1.78% of total loans. Loans past due 30-89 days were 0.01% of total loans at September 30, 2012.

Total deposits at September 30, 2012 were $1.25 billion compared to $1.18 billion at December 31, 2011. Growth during 2012 has been concentrated in our demand deposit and money market categories. Securities sold under agreement to repurchase, which represent collateralized customer accounts, declined by $34.53 million to $228.00 million at September 30, 2012 from $262.53 million at December 31, 2011 as a result of seasonal cash flows combined with migration to other deposit products due to the low interest rate environment. Short-term wholesale borrowings were $55.60 million at September 30, 2012, compared to zero at December 31, 2011. Our long-term debt was $20 million lower than balances at December 31, 2011 as a result of the FHLB prepayment discussed previously.

Total noninterest income decreased $213 thousand to $3.20 million for the third quarter of 2012 compared to 2011, and increased $658 thousand for the first nine months of 2012 compared to 2011. During the third quarter of 2012, we recognized a net gain on the sale of one of our branch locations of $749 thousand. Additionally, during the second quarter of 2012, we recognized a gain of $334 thousand on the sale of the mineral rights we owned on properties in Oklahoma which we acquired in a bank acquisition in 1971. We also recognized net gains (losses) on investment securities of $(26) thousand and $422 thousand during the quarter and nine months ended September 30, 2012, respectively. Excluding net gains (losses) on investment securities and the gains on the sale of the branch location and mineral rights, total noninterest income decreased $16 thousand to $2.48 million for the third quarter of 2012 compared to $2.49 million for the third quarter of 2011, and increased $200 thousand to $7.22 million for the first nine months of 2012, compared to $7.02 million for the first nine months of 2011. The change for the three and nine months ended September 30, 2012, compared to the same periods in 2011 is primarily a result of increases in net debit card income and Trust division income, offset in part by decreased overdraft fee revenue. Additionally, the timing of investments in low income housing partnerships and their associated tax credits led to a reduction in equity in losses of real estate limited partnerships to $(370) thousand for the third quarter of 2012 from $(441) thousand for the third quarter of last year, and $(1.19) million for the first nine months of 2012, compared to $(1.32) million for the same period in 2011. Trust assets under management have continued to grow in 2012 and now total $531 million.

Total noninterest expense decreased $596 thousand to $10.45 million for the third quarter of 2012 compared to 2011, and $165 thousand to $31.20 million for the first nine months of 2012 compared to 2011. As mentioned previously, we prepaid $20 million in FHLB long-term debt during the second and third quarters of 2012 and incurred prepayment penalties totaling $677 thousand during the third quarter and $1.36 million during the first nine months of 2012. We also prepaid $16 million in FHLB debt during the third quarter of 2011, and incurred a prepayment penalty of $861 thousand. Excluding the prepayment penalties, noninterest expense decreased $412 thousand for the third quarter of 2012 compared to 2011 and decreased $667 thousand for the first nine months of 2012 compared to 2011. Compensation and benefits were lower for both the quarter and nine months ended September 30, 2012. Normal salary increases were offset by increased vacancies, a lower incentive accrual, and credits related to loan origination fees. A change to our health insurance plan for 2012 resulted in a $193 thousand reduction in health and group insurance expense for the first nine months of 2012 compared to 2011. The effective tax rate for the quarter and nine months ended September 30, 2012 was 22% and 20%, respectively, compared to 14% and 17% for the same periods last year. Taxes for 2011 were positively impacted by the purchase of large historic rehabilitation credits that were available in 2011. Absent those credits, our effective tax rate for 2011 would have been approximately 20%.

Michael R. Tuttle, our President and Chief Executive Officer, Janet P. Spitler, our Chief Financial Officer and Executive Vice President, and Geoffrey R. Hesslink, our Senior Lender and Executive Vice President, will host a conference call to discuss these earnings results, business highlights and outlook at 10:00 a.m. Eastern Time on Friday, October 26, 2012. Interested parties may participate in the conference call by dialing U.S. number (877) 317-6789, Canada number (866) 605-3852 or international number (412) 317-6789. The title of the call is Merchants Bancshares, Inc. Q3 2012 Earnings. Participants are asked to call a few minutes prior to register. A replay will be available until 9:00 a.m. Eastern Time on Monday, November 26, 2012. The U.S. replay dial-in telephone number is (877) 344-7529. The international replay telephone number is (412) 317-0088. The conference number is 10019234. Additionally, a recording of the call will be available on our website at www.mbvt.com.

Established in 1849, Merchants Bank strives to deliver a fully integrated customer experience to its retail, commercial and investment customers, with a comprehensive array of online and mobile delivery options -- and 33 community bank offices and 40 ATMs throughout Vermont. Merchants Bank and its holding company, Merchants Bancshares, Inc., employ approximately 300 full-time employees and 40 part-time employees. Merchants Trust Company, a division of Merchants Bank, provides investment management, financial planning and trustee services. Please visit www.mbvt.com for access to Merchants Bank information, programs and services. Merchants' stock is traded on the NASDAQ Global Select Market under the symbol "MBVT." Member FDIC. Equal Housing Lender.

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 $485 thousand and $1.53 million, respectively, for the three and nine months ended September 30, 2012, and $529 thousand and $1.40 million, respectively, for the same periods in 2011. An additional non-GAAP financial measure we use is the tangible equity ratio. Because we have no intangible assets, our tangible equity is the same as our book 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 which impact 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; declines 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, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, 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 loan 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)  
                         
    September 30,     June 30,     December 31,     September 30,  
    2012     2012     2011     2011  
Balance Sheets - Period End                                
Total assets   $ 1,685,836     $ 1,601,765     $ 1,611,869     $ 1,560,949  
Loans     1,072,879       1,025,665       1,027,626       1,008,076  
Allowance for loan losses ("ALL")     11,444       11,203       10,619       10,480  
Net loans     1,061,435       1,014,462       1,017,007       997,596  
Investments-taxable     526,700       495,303       512,309       418,543  
Federal Home Loan Bank ("FHLB") stock     8,145       8,145       8,630       8,630  
Cash and due from banks     30,097       30,459       10,392       10,945  
Interest earning cash and other short-term investments     22,935       17,000       27,420       86,438  
Other assets     36,524       36,396       36,111       38,797  
Non-interest bearing deposits     227,879       211,916       197,522       180,696  
Savings, interest bearing checking and money market accounts     687,267       680,803       632,110       630,355  
Time deposits     337,817       347,427       348,248       354,508  
Total deposits     1,252,963       1,240,146       1,177,880       1,165,559  
Short-term borrowings     55,600       52,000       --       3,013  
Securities sold under agreement to repurchase, short-term     227,996       153,700       262,527       222,338  
Other long-term debt     2,503       12,522       22,562       22,581  
Junior subordinated debentures issued to unconsolidated subsidiary trust     20,619       20,619       20,619       20,619  
Other liabilities     8,126       8,719       18,744       18,839  
Shareholders' equity     118,029       114,059       109,537       108,000  
                                 
Balance Sheets - Quarter-to-Date Averages                                
Total assets   $ 1,649,457     $ 1,642,070     $ 1,564,335     $ 1,503,192  
Loans     1,064,507       1,056,735       1,014,105       1,007,240  
Allowance for loan losses     11,309       11,135       10,584       10,550  
Net loans     1,053,198       1,045,600       1,003,521       996,690  
Investments-taxable     499,688       497,860       443,713       366,435  
FHLB stock     8,145       8,145       8,630       8,630  
Cash and due from banks     25,793       24,968       10,186       10,389  
Interest earning cash and other short-term investments     16,241       17,461       53,907       76,887  
Other assets     46,392       48,036       44,378       44,161  
Non-interest bearing deposits     220,646       205,072       190,864       171,648  
Savings, interest bearing checking and money market accounts     677,321       662,713       622,208       600,639  
Time deposits     341,231       350,075       349,832       355,007  
Total deposits     1,239,198       1,217,860       1,162,904       1,127,294  
Short-term borrowings     60,141       35,773       1,798       1,592  
Securities sold under agreement to repurchase, short-term     196,117       225,797       238,935       207,037  
Securities sold under agreement to repurchase, long-term     --       --       --       3,995  
Other long-term debt     9,032       20,771       22,569       27,763  
Junior subordinated debentures issued to unconsolidated subsidiary trust     20,619       20,619       20,619       20,619  
Other liabilities     9,466       9,015       9,783       9,341  
Shareholders' equity     114,884       112,235       107,727       105,551  
Earning assets     1,588,581       1,580,201       1,520,355       1,459,192  
Interest bearing liabilities     1,304,461       1,315,748       1,255,961       1,216,652  
                                 
Ratios and Supplemental Information - Period End                                
Book value per share   $ 19.82     $ 19.20     $ 18.54     $ 18.29  
Book value per share (1)   $ 18.81     $ 18.23     $ 17.57     $ 17.35  
Tier I leverage ratio     8.10 %     7.97 %     8.08 %     8.26 %
Total risk-based capital ratio     15.83 %     15.85 %     15.92 %     15.81 %
Tangible capital ratio (2)     7.00 %     7.12 %     6.80 %     6.92 %
Period end common shares outstanding (1)     6,274,683       6,256,481       6,232,783       6,224,886  
                                 
Credit Quality - Period End                                
Nonperforming loans ("NPLs")   $ 2,740     $ 3,130     $ 2,511     $ 3,192  
Nonperforming assets ("NPAs")   $ 2,740     $ 3,516     $ 2,869     $ 3,532  
NPLs as a percent of total loans     0.26 %     0.31 %     0.24 %     0.32 %
NPAs as a percent of total assets     0.16 %     0.22 %     0.18 %     0.23 %
ALL as a percent of NPLs     418 %     358 %     423 %     328 %
ALL as a percent of total loans     1.07 %     1.09 %     1.03 %     1.04 %
     
(1)   This book value and period end common shares outstanding includes 319,572; 314,418; 325,703; and 320,845 Rabbi Trust shares for the periods noted above, respectively.
(2)   The tangible capital ratio is a non-GAAP financial measure which we believe provides investors with information that is useful in understanding our financial performance. Because we have no intangible assets, our tangible equity is the same as our book equity.
     
     
     
    For the Nine Months Ended
    September 30,
    2012   2011
Balance Sheets - Year to-Date Averages            
Total assets   $ 1,636,883   $ 1,488,556
Loans     1,051,886     956,478
Allowance for loan losses     11,061     10,380
Net loans     1,040,825     946,098
Investments-taxable     497,991     423,404
FHLB stock     8,265     8,630
Cash and due from banks     24,037     12,114
Federal funds sold and other short-term investments     18,454     53,020
Other assets     47,311     45,290
Non-interest bearing deposits     207,097     153,731
Savings, interest bearing checking and money market accounts     660,386     591,575
Time deposits     346,347     360,549
Total deposits     1,213,830     1,105,855
Short-term borrowings     39,614     2,272
Securities sold under agreement to repurchase, short-term     223,540     210,708
Securities sold under agreement to repurchase, long-term     --     6,319
Other long-term debt     17,420     29,987
Junior subordinated debentures issued to unconsolidated subsidiary trust     20,619     20,619
Other liabilities     9,514     10,535
Shareholders' equity     112,346     102,261
Earning assets     1,576,596     1,441,532
Interest bearing liabilities     1,307,926     1,222,029
             
             
             
    For the Three Months Ended     For the Nine Months Ended  
    September 30,     June 30,     September 30,     September 30,     September 30,  
    2012     2012     2011     2012     2011  
Operating Results                                        
Interest income                                        
Interest and fees on loans   $ 11,278     $ 11,253     $ 11,641     $ 33,860     $ 33,830  
Interest and dividends on investments     2,951       2,993       3,224       9,034       9,798  
Total interest and dividend income     14,229       14,246       14,865       42,894       43,628  
Interest expense                                        
Deposits     860       928       1,111       2,748       3,444  
Securities sold under agreement to repurchase and other short-term borrowings     341       537       518       1,454       1,682  
Long-term debt     364       442       492       1,253       1,513  
Total interest expense     1,565       1,907       2,121       5,455       6,639  
Net interest income     12,664       12,339       12,744       37,439       36,989  
Provision for credit losses     250       200       250       700       500  
Net interest income after provision for credit losses     12,414       12,139       12,494       36,739       36,489  
Noninterest income                                        
Trust division income     670       673       639       2,000       1,894  
Service charges on deposits     1,033       991       1,161       3,001       3,195  
(Loss) gain on investment securities, net     (26 )     372       920       422       1,047  
Gain on sale of other assets     749       334       --       1,083       --  
Equity in losses of real estate limited partnerships, net     (370 )     (409 )     (441 )     (1,189 )     (1,324 )
Other noninterest income     1,143       1,202       1,133       3,406       3,253  
Total noninterest income     3,199       3,163       3,412       8,723       8,065  
Noninterest expense                                        
Compensation and benefits     4,809       4,759       5,251       14,756       15,544  
Occupancy and equipment expenses     1,837       1,812       1,783       5,527       5,377  
Legal and professional fees     677       666       721       1,954       2,098  
Marketing expenses     360       493       475       1,264       1,259  
State franchise taxes     321       316       321       965       951  
FDIC insurance     217       212       194       644       740  
Prepayment penalty     677       686       861       1,363       861  
Other real estate owned     65       31       47       129       128  
Other noninterest expense     1,486       1,670       1,392       4,595       4,404  
Total noninterest expense     10,449       10,645       11,045       31,197       31,362  
Income before provision for income taxes     5,164       4,657       4,861       14,265       13,192  
Provision for income taxes     1,159       921       680       2,911       2,281  
Net income   $ 4,005     $ 3,736     $ 4,181     $ 11,354     $ 10,911  
                                         
Ratios and Supplemental Information                                        
Weighted average common shares outstanding     6,269,347       6,249,130       6,221,161       6,251,967       6,206,377  
Weighted average diluted shares outstanding     6,280,479       6,259,932       6,231,659       6,264,340       6,213,209  
Basic earnings per common share   $ 0.64     $ 0.60     $ 0.67     $ 1.82     $ 1.76  
Diluted earnings per common share   $ 0.64     $ 0.60     $ 0.67     $ 1.81     $ 1.76  
Return on average assets     0.97 %     0.91 %     1.11 %     0.92 %     0.98 %
Return on average shareholders' equity     13.95 %     13.31 %     15.84 %     13.47 %     14.23 %
Average yield on loans     4.40 %     4.48 %     4.79 %     4.49 %     4.92 %
Average yield on investments     2.30 %     2.37 %     3.37 %     2.38 %     3.01 %
Average yield of earning assets     3.68 %     3.76 %     4.19 %     3.76 %     4.18 %
Average cost of interest bearing deposits     0.34 %     0.37 %     0.46 %     0.36 %     0.48 %
Average cost of borrowed funds     0.98 %     1.30 %     1.54 %     1.20 %     1.58 %
Average cost of interest bearing liabilites     0.48 %     0.58 %     0.69 %     0.56 %     0.73 %
Net interest rate spread     3.20 %     3.17 %     3.50 %     3.20 %     3.45 %
Net interest margin     3.29 %     3.27 %     3.61 %     3.30 %     3.56 %
Net interest income on a fully taxable equivalent basis   $ 13,149     $ 12,855     $ 13,273     $ 38,970     $ 38,385  
Net recoveries (charge-offs) to Average Loans     0.00 %     (0.00 %)     (0.01 %)     0.00 %     (0.02 %)
Net recoveries (charge-offs)   $ 12     $ (15 )   $ (62 )   $ 27     $ (165 )
Efficiency ratio (1)     58.64 %     61.02 %     60.53 %     60.59 %     62.97 %
     
(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 September 30, 2012, Merchants Bank had off-balance sheet liabilities in the form of standby letters of credit to customers in the amount of $4.68 million.
 

Contact Information

  • Contact:
    Lisa Razo
    Merchants Bank
    (802) 865-1838