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Merchants Bancshares, Inc. Announces Second Quarter 2014 Results


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Merchants Bancshares, Inc.

Jul 22, 2014, 04:54 ET

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SOUTH BURLINGTON, Vt., July 22, 2014 /PRNewswire/ -- Merchants Bancshares, Inc. (NASDAQ: MBVT), the parent company of Merchants Bank, today announced net income of $3.41 million and $6.82 million, or diluted earnings per share of $0.54 and $1.07 for the three and six months ended June 30, 2014, respectively.   This compares to net income of $4.03 million and $7.63 million, or diluted earnings per share of $0.64 and $1.21 for the three and six months ended June 30, 2013, respectively. The return on average assets was 0.82% for the three and six months ended June 30, 2014, respectively, compared to 0.96% and 0.91% for the same periods in 2013. The return on average equity was 11.15% and 11.23% for the three and six months ended June 30, 2014, respectively, compared to 13.61% and 12.96% for the same periods in 2013.  We previously announced the declaration of a dividend of $0.28 per share, payable August 14, 2014, to shareholders of record as of July 31, 2014.

"We have continued to transition and strengthen the balance sheet by reducing exposure to price volatility in the investment portfolio, increasing liquidity and building capital. All of this is in response to market conditions that do not favor asset extension or compensate adequately for credit risk.  At the same time, we are making a significant investment in the company with our core conversion project that will negatively impact results for the next quarter, though with expected benefits starting to be seen in the fourth quarter and into 2015," commented Michael R. Tuttle, our President and Chief Executive Officer.

Shareholders' equity reached another record high of $124.96 million, and our book value per share increased to $19.75 per share at June 30, 2014 from $18.93 at December 31, 2013.  Our capital ratios remain strong at June 30, 2014. Our Tier 1 leverage ratio was 8.79%, total risk-based capital ratio increased to 16.76% and our tangible capital ratio increased to 7.77%.

Our taxable equivalent net interest income was $12.14 million and $24.50 million for the three and six months ended June 30, 2014, respectively, compared to $12.80 million and $25.53 million for the same periods in 2013.  Our taxable equivalent net interest margin was 3.06% and 3.08% for the quarter and six months ended June 30, 2014, compared to 3.17% and 3.18% for the same periods in 2013. The margin decreased by four basis points during the second quarter of 2014, primarily a result of reduced asset yields which decreased by four basis points during the second quarter. Both the net interest margin and average asset yields were unchanged from the fourth quarter of 2013 to the first quarter of 2014. We have increased liquidity and reduced price volatility exposure in our investment portfolio by allowing the investment portfolio to run off and holding a larger percentage of our balance sheet in cash, which has compressed asset yields.  These changes have shortened our assets and caused us to give up some current income, but have reduced price volatility exposure on our balance sheet and better positioned us for rising rates. At the same time our loan yields have continued to compress due to a combination of the extended low interest rate environment, tighter credit spreads and competitive pressures.  Additionally, we have increased our variable rate loan portfolio.  Average variable rate loans for the second quarter of 2014 were $328.98 million, a $44.46 million increase over the second quarter of 2013.  These loans have a lower current yield than fixed rate loans, but will have higher yields when rates start to rise.

Quarterly average loan balances for the second quarter of 2014 were $1.17 billion, $47.14 million higher than quarterly average balances for the second quarter of 2013. Ending loan balances at June 30, 2014 were impacted by seasonal fluctuations in municipal cash flows, causing municipal loan balances at June 30, 2014 to be $46.82 million lower than at March 31, 2014; as of July 10, 2014, municipal loan balances had increased by $40.49 million to $86.85 million.

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

(In thousands)

June 30, 2014

March 31, 2014

December 31, 2013

June 30, 2013

Commercial, financial and agricultural

$ 193,806

$ 190,840

$ 172,810

$ 169,215

Municipal loans

46,358

93,176

94,007

45,319

Real estate loans - residential

476,696

482,775

489,706

485,764

Real estate loans – commercial

372,825

372,155

371,319

365,693

Real estate loans – construction

32,336

27,567

34,841

31,813

Installment loans

4,238

4,993

5,655

5,667

All other loans

252

231

895

544

Total loans            

$ 1,126,511

$ 1,171,737

$ 1,166,233

$ 1,104,015

Growth in our commercial loan categories has been driven by new customer acquisition and expansion of existing relationships, offset by increased prepayment activity.  Mortgage refinancing activity has slowed considerably, leading to reduced residential real estate balances. We expect this trend to continue in our residential real estate portfolio.

We recorded a $50 thousand and $150 thousand provision for credit losses during the three and six months ended June 30, 2014, compared to $150 thousand and $400 thousand for the three and six months ended June 30, 2013.  Credit quality improved further during the quarter, we are consistently a top performer in this measure.  Our nonperforming loans were 0.08% of total loans at June 30, 2014, loans past due 30-89 days were 0.01% of total loans at June 30, 2014. Net charge-offs during 2014 have been negligible.

The average investment portfolio for the second quarter of 2014 was $352.90 million, a reduction of $50.08 million from average balances for the fourth quarter of 2013.  The ending balance in the investment portfolio at June 30, 2014 was $33 5 .44 million, compared to $365.34 million at March 31, 2014 and $393.34 million at December 31, 2013. The book balance of the portfolio at June 30, 2014 includes a $2.24 million unrealized gain on the available for sale portion of the investment portfolio, compared to an unrealized loss of ($220) thousand at December 31, 2013. Interest rates have trended down over the course of 2014 which has positively impacted the value of our largely fixed rate investment portfolio.  We sold $19 million in securities during the quarter for a small gain.  We sold bonds that had higher than average price volatility and lower than average yields to continue to reduce the exposure to rising rates and the risk to tangible capital in the investment portfolio. We also took advantage of an opportunity to continue to unwind our remaining CLO portfolio.  Our remaining CLO position totals $9.41 million.

Quarterly average deposits for the second quarter of 2014 were $1.32 billion, a $45.43 million increase over quarterly average deposits for the second quarter of 2013. Total deposits at June 30, 2014 were $1.31 billion, a $12.88 million decrease compared to balances at December 31, 2013. Strong growth in demand deposits and money market categories has been offset by reduced time deposit balances. Securities sold under agreement to repurchase, which represent collateralized customer accounts, declined to $141.06 million at June 30, 2014 from $250.31 million at December 31, 2013 as a result of seasonal municipal cash flows.

Total noninterest income increased $184 thousand to $2.95 million for the second quarter of 2014 compared to the second quarter of 2013 and increased $447 thousand for the first six months of 2014 compared to the first six months of 2013. Excluding net gains on investment securities, total noninterest income increased $153 thousand and $291 thousand for the second quarter and first half of 2014 compared to the same periods in 2013.  Trust division income increased $69 thousand and $163 thousand for the three and six months ended June 30, 2014, respectively, compared to the same periods in 2013 as trust division assets under management have continued to show strong growth and now total $632 million. Service charges on deposits increased $22 thousand and $43 thousand for the three and six months ended June 30, 2014 compared to the same period in 2013, a result of increased in cash management fees and business checking service charges.  Overdraft fees decreased $33 thousand and $94 thousand for the three and six months ended June 30, 2014. This revenue source continues  to come under pressure, but the rate of decrease has slowed.

Total noninterest expense increased $519 thousand to $10.10 million for the second quarter of 2014 compared to the same period in 2013 and increased $924 thousand to $20.25 million for the first six months of 2014 compared to the same periods in 2013. Excluding core system conversion costs total noninterest expense increased $302 thousand to $9.88 million for the second quarter of 2014 compared to the same period in 2013 and increased $536 thousand to $19.86 million for the first six months of 2014 compared to the same period in 2013.  Pre-tax expenses related to the conversion of our core banking systems incurred during the quarter and six months ended June 30, 2014 were $217 thousand and $388 thousand, respectively, which represents $.02 and $.04 per share after tax. The conversion is scheduled to occur during the fourth quarter of this year. In total, we expect to incur approximately $1.20 million in expenses related to the core conversion during 2014 and expect to realize annual cost savings and additional revenue opportunities of approximately $800 thousand starting in November of this year.

Compensation and benefits increased $328 thousand and $456 thousand for the three and six months ended June 30, 2014, respectively, compared to the same periods in 2013. The increase was a result of additional investments we have made in the Finance and Risk areas combined with lower credits related to loan originations. Additionally expenses associated with our self-funded employee health insurance plan were higher for the first half of 2014 compared to 2013.  During the second quarter of 2013, we reversed $225 thousand of our accrued health insurance expense as a result of positive claims experience. This increase in health insurance expense was partially offset by a larger credit from our overfunded pension plan.

Occupancy and equipment costs were $97 thousand higher for the second quarter of 2014 compared to 2013, and were $227 thousand higher for the first half of 2014 compared to 2013, a result of investments we have made recently to update, and in some cases, combine our facilities.   Legal and professional fees were $74 thousand higher for the second quarter of 2014 compared to 2013, and were $25 thousand higher for the first half of 2014 compared to 2013, a result of additional resources for our compliance and risk areas. Marketing expenses for the second quarter of 2014 were $323 thousand, $162 thousand lower than the second quarter of 2013, and were $642 thousand year to date, $123 thousand lower than the first half of 2013, a result of our transition to a new marketing partner which will push some expenses later in the year.

During the first quarter of 2014 we adopted, and applied retrospectively, Financial Accounting Standards Board Accounting Standards Update 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects" which allows investors in low income housing tax credit entities that meet certain conditions to account for the investments entirely in income tax expense, which we believe more accurately reflects the economics of the investment.  The application of this standard reduced total noninterest expense by $327 thousand and $654 thousand for the quarter and six months ended June 30, 2014, respectively; and by $270 thousand and $540 thousand for the quarter and six months ended June 30, 2013, respectively and increased income tax expense by an equivalent amount.  The application of the standard also increased our effective tax rate to 23% for the three and six months ended June 30, 2014 and 24% and 25% for the three and six months ended June 30, 2013.

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 Chief Operating Officer and Senior Lender, will host a conference call to discuss these earnings results, business and outlook at 9:00 a.m. Eastern Time on Wednesday, July 23, 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. Q2 2014 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 July 31, 2014. The U.S. replay dial-in telephone number is (877) 344-7529.  The Canada replay telephone number is (855) 669-9658.  The international replay telephone number is (412) 317-0088. The replay access code for all replay telephone numbers is 10037007. Additionally, a recording of the call will be available on our website at www.mbvt.com.

Established in 1849, Merchants Bank is Vermont's largest and sole remaining statewide independent bank. Consumer, business, municipal and investment customers enjoy personalized relationships, sophisticated online and mobile banking options, and 32 branches statewide.  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 have earned several "Best Places to Work in Vermont" awards. American Banker ranks Merchants Bank a "Top 200" 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 $525 thousand for the three months ended June 30, 2014, and $485 thousand for the same period in 2013. 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, 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 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)









June 30,

March 31,

December 31, 

June 30,



2014

2014

2013

2013


Balance Sheets - Period End






Total assets

$      1,608,943

$         1,662,045

$         1,725,469

$       1,619,807


Loans

1,126,511

1,171,737

1,166,233

1,104,015


Allowance for loan losses ("ALL")

12,040

12,174

12,042

11,890


Net loans

1,114,471

1,159,563

1,154,191

1,092,125


Investments-available for sale, taxable

188,593

214,957

252,513

428,068


Investments-held to maturity, taxable

146,848

150,382

140,826

325


Federal Home Loan Bank ("FHLB") stock

5,877

7,496

7,496

7,496


Cash and due from banks

39,423

31,130

30,434

31,458


Interest earning cash and other short-term investments

62,325

45,354

85,037

17,672


Bank owned life insurance

10,158

10,080

10,000

-


Other assets

41,248

43,083

44,972

42,663


Non-interest bearing deposits

286,374

271,704

266,299

242,393


Savings, interest bearing checking and money market accounts 

763,427

770,980

752,171

751,599


Time deposits

260,898

283,373

305,106

318,527


Total deposits

1,310,699

1,326,057

1,323,576

1,312,519


Short-term borrowings

-

-

-

21,000


Securities sold under agreement to repurchase, short-term

141,064

182,647

250,314

141,055


Other long-term debt

2,362

2,382

2,403

2,443


Junior subordinated debentures issued to






unconsolidated subsidiary trust

20,619

20,619

20,619

20,619


Other liabilities

9,237

8,102

8,946

7,152


Shareholders' equity

124,962

122,238

119,611

115,019








Balance Sheets - Quarter-to-Date Averages






Total assets

$      1,657,705

$         1,678,407

$         1,685,103

$       1,681,747


Loans

1,169,339

1,167,067

1,169,935

1,122,201


Allowance for loan losses

12,206

12,117

12,256

11,842


Net loans

1,157,133

1,154,950

1,157,679

1,110,359


Investments-available for sale, taxable

204,148

236,120

265,667

466,566


Investments-held to maturity, taxable

148,756

143,716

137,319

343


FHLB stock

6,428

7,490

7,496

7,496


Cash and due from banks

26,906

28,164

29,626

25,533


Interest earning cash and other short-term investments

60,928

59,516

47,624

23,371


Bank owned life insurance

10,110

10,029

-

-


Other assets

43,296

38,422

39,692

48,079


Non-interest bearing deposits

272,334

263,120

267,838

239,601


Savings, interest bearing checking and money market accounts 

777,090

759,068

744,634

711,895


Time deposits

271,658

294,752

310,817

324,157


Total deposits

1,321,082

1,316,940

1,323,289

1,275,653


Short-term borrowings

752

-

198

28,565


Securities sold under agreement to repurchase, short-term

181,593

209,589

212,313

228,726


Other long-term debt

2,369

2,390

2,409

2,450


Junior subordinated debentures issued to






unconsolidated subsidiary trust

20,619

20,619

20,619

20,619


Other liabilities

8,813

8,564

9,297

7,465


Shareholders' equity

122,477

120,305

116,978

118,269


Earning assets

1,589,599

1,613,909

1,628,041

1,619,977


Interest bearing liabilities

1,254,081

1,286,418

1,290,990

1,316,412








Ratios and Supplemental Information - Period End






Book value per share

$              20.73

$                20.29

$                19.94

$              19.19


Book value per share (1)

$              19.75

$                19.34

$                18.93

$              18.24


Tier I leverage ratio

8.79%

8.57%

8.44%

8.36%


Total risk-based capital ratio

16.76%

16.40%

16.12%

16.42%


Tangible capital ratio (2)

7.77%

7.35%

6.93%

7.10%


Period end common shares outstanding (1)

6,326,927

6,320,531

6,318,708

6,304,649








Credit Quality - Period End






Nonperforming loans ("NPLs")

$                  888

$                1,006

$                   906

$              1,600


Nonperforming assets ("NPAs")

$                  888

$                1,091

$                1,015

$              1,740


NPLs as a percent of total loans

0.08%

0.09%

0.08%

0.14%


NPAs as a percent of total assets

0.06%

0.07%

0.06%

0.11%


ALL as a percent of NPLs

1356%

1210%

1329%

743%


ALL as a percent of total loans

1.07%

1.04%

1.03%

1.08%








(1)  This book value and period end common shares outstanding includes 299,565, 294,673; 319,854; and 310,381 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.






Merchants Bancshares, Inc.

Financial Highlights (unaudited)

(Dollars in thousands except share and per share data)



For the Six Months Ended


June 30,

June 30,


2014

2013

Balance Sheets - Year-to-Date Averages



Total assets

$      1,667,999

$         1,681,440

Loans

1,168,210

1,104,344

Allowance for loan losses

12,162

11,766

Net loans

1,156,048

1,092,578

Investments-available for sale, taxable

217,496

484,912

Investments-held to maturity, taxable

146,251

365

FHLB stock

6,956

7,743

Cash and due from banks

27,532

25,377

Interest earning cash and other short-term investments

60,225

21,044

Bank owned life insurance

10,070

-

Other assets

43,421

49,421

Non-interest bearing deposits

267,752

231,468

Savings, interest bearing checking and money market accounts 

768,129

704,071

Time deposits

283,142

329,237

Total deposits

1,319,023

1,264,776

Short-term borrowings

378

21,260

Securities sold under agreement to repurchase, short-term

195,514

246,705

Other long-term debt

2,379

2,460

Junior subordinated debentures issued to



unconsolidated subsidiary trust

20,619

20,619

Other liabilities

8,689

7,851

Shareholders' equity

121,397

117,769

Earning assets

1,599,138

1,618,408

Interest bearing liabilities

1,270,161

1,324,352

Merchants Bancshares, Inc.

Financial Highlights (unaudited)

(Dollars in thousands except share and per share data)



For the Three Months Ended

For the Six Months Ended


June 30,

March 31,

June 30,

June 30,

June 30,


2014

2014

2013

2014

2013

Operating Results






Interest income






Interest and fees on loans

$            10,756

$              10,762

$              11,044

$          21,518

$              21,794

Interest and dividends on investments

2,080

2,253

2,576

4,333

5,373

Total interest and dividend income

12,836

13,015

13,620

25,851

27,167

Interest expense






Deposits

936

902

728

1,838

1,474

Securities sold under agreement to repurchase and other short-term borrowings

87

92

377

179

734

Long-term debt

200

197

205

397

401

Total interest expense

1,223

1,191

1,310

2,414

2,609

Net interest income

11,613

11,824

12,310

23,437

24,558

Provision for credit losses

50

100

150

150

400

Net interest income after provision for credit losses

11,563

11,724

12,160

23,287

24,158

Noninterest income






Trust division income

830

852

761

1,682

1,519

Service charges on deposits

329

317

306

646

603

Debit card income, net

715

621

739

1,336

1,394

Overdraft income

653

627

686

1,280

1,374

Gain (losses) on investment securities, net

17

126

(13)

143

(13)

Gain (losses) on sale of other assets

(35)

-

-

(35)

-

Other noninterest income

440

367

286

807

535

Total noninterest income

2,949

2,910

2,765

5,859

5,412

Noninterest expense






Compensation and benefits

4,838

4,923

4,510

9,761

9,305

Occupancy and equipment expenses

2,030

2,140

1,933

4,170

3,943

Legal and professional fees

693

638

619

1,331

1,306

Marketing expenses

323

319

485

642

765

State franchise taxes

379

377

362

756

719

FDIC insurance

217

216

220

433

440

Conversion costs

217

171

-

388

-

Other real estate owned

79

16

54

95

67

Other noninterest expense

1,320

1,354

1,394

2,674

2,781

Total noninterest expense

10,096

10,154

9,577

20,250

19,326

Income before provision for income taxes

4,416

4,480

5,348

8,896

10,244

Provision for income taxes

1,003

1,077

1,323

2,080

2,610

Net income

$              3,413

$                3,403

$                4,025

$             6,816

$                7,634







Ratios and Supplemental Information






Weighted average common shares outstanding

6,324,753

6,320,349

6,298,019

6,322,563

6,292,459

Weighted average diluted shares outstanding

6,343,461

6,326,745

6,309,890

6,342,719

6,304,756

Basic earnings per common share

$                 0.54

$                  0.54

$                  0.64

$               1.08

$                  1.21

Diluted earnings per common share

$                 0.54

$                  0.54

$                  0.64

$               1.07

$                  1.21

Return on average assets

0.82%

0.81%

0.96%

0.82%

0.91%

Return on average shareholders' equity

11.15%

11.31%

13.61%

11.23%

12.96%

Average yield on loans

3.87%

3.93%

4.12%

3.90%

4.16%

Average yield on investments

2.28%

2.32%

2.17%

2.30%

2.19%

Average yield of earning assets

3.37%

3.40%

3.49%

3.39%

3.51%

Average cost of interest bearing deposits 

0.36%

0.35%

0.28%

0.35%

0.29%

Average cost of borrowed funds

0.56%

0.51%

0.83%

0.53%

0.79%

Average cost of interest bearing liabilities

0.39%

0.38%

0.40%

0.38%

0.40%

Net interest rate spread

2.98%

3.03%

3.09%

3.00%

3.11%

Net interest margin

3.06%

3.10%

3.17%

3.08%

3.18%

Net interest income on a fully taxable equivalent basis

$            12,140

$              12,356

$              12,795

$          24,494

$              25,525

Net recoveries (charge-offs) to Average Loans

(0.01)%

0.00%

(0.01)%

0.00%

0.00%

Net recoveries (charge-offs)  

$                  (73)

$                       1

$                   (80)

$                 (72)

$                   (54)

Efficiency ratio (1)

62.28%

63.94%

58.55%

62.81%

59.64%







(1)  The efficiency ratio excludes amortization of intangibles, OREO expenses, gain/loss on sales of securities, state

franchise taxes, and any significant nonrecurring items.

Note: As of June 30, 2014, Merchants Bank had off-balance sheet liabilities in the form of standby letters of credit to customers in the amount of $7.51 million.

Amounts reported for prior periods are reclassified, where necessary, to be consistent with the current period presentation. 

Contact: Jodi Bachand, Merchants Bank, at (802) 865-1807

SOURCE Merchants Bancshares, Inc.

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