Merchants Bancshares, Inc. (NASDAQ: MBVT), the parent company of Merchants Bank, today announced net income of $15.19 million, or diluted earnings per share of $2.42 for the year ended December 31, 2012, compared to $14.62 million, or diluted earnings per share of $2.35 for the year ended December 31, 2011. Net income for the fourth quarter of 2012 was $3.84 million, or diluted earnings per share of $0.61. This compares to net income of $3.71 million, or diluted earnings per share of $0.59 for the fourth quarter of 2011.
The return on average assets was 0.91% and 0.92% for the quarter and year ended December 31, 2012, respectively, compared to 0.95% and 0.97% for the same periods in 2011. The return on average equity was 13.08% and 13.37% for the quarter and year ended December 31, 2012, respectively, compared to 13.77% and 14.11% for the same periods in 2011. We previously announced the declaration of a dividend of $0.28 per share, payable February 14, 2013, to shareholders of record as of January 31, 2013. This quarter represents our 65th consecutive quarterly dividend payment and our 29th consecutive quarter at the current payout level.
"We are very pleased to report our annual results for 2012 are second only to our record high year of 2010. Highlights for the year include strong organic growth in loans, deposits and trust fees. At the same time, asset quality was maintained at high levels throughout the year, nonperforming assets and delinquencies remain at very low levels," commented Michael R. Tuttle, our President and Chief Executive Officer.
Total assets reached a record high of $1.71 billion at December 31, 2012, an increase of $96.68 million, or 6.00%, from December 31, 2011. Total shareholders' equity also reached a record high of $118.22 million at December 31, 2012. Book value per share increased $1.25 per share, or 7.11%, to $18.82 at year-end 2012, compared to year-end 2011. Our capital ratios remain strong, with a Tier 1 leverage ratio of 8.08%, a total risk-based capital ratio of 16.05% and a tangible capital ratio of 6.92%.
Our loan portfolio continued to grow during the quarter, reaching a new record high of $1.08 billion. For the year ended December 31, 2012 the loan portfolio grew $55.30 million, or 5.38%.
The following table summarizes the components of our loan portfolio as of the periods indicated:
December 31, September 30, December 31,
(In thousands) 2012 2012 2011
------------- ------------- -------------
Commercial, financial and
agricultural $ 165,023 $ 169,450 $ 146,990
Municipal loans 84,689 82,048 101,705
Real estate loans - residential 489,951 477,321 439,818
Real estate loans - commercial 327,622 327,182 313,915
Real estate loans - construction 10,561 11,285 18,993
Installment loans 4,701 5,259 5,806
All other loans 376 334 399
------------- ------------- -------------
Total loans $ 1,082,923 $ 1,072,879 $ 1,027,626
------------- ------------- -------------
Year-to-date growth in our commercial loan portfolio has been driven by new customer acquisition and expansion of existing relationships. 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.
We booked a $250 thousand provision for credit losses during the fourth quarter of 2012 and 2011. The 2012 provision for credit losses was $950 thousand, compared to $750 thousand for 2011. Asset quality remained strong throughout 2012; nonperforming assets totaled $2.91 million, or 0.17% of total assets, at December 31, 2012, compared to $2.87 million, or 0.18% of total assets, at December 31, 2011. Additionally, loans past due 30-89 days were zero at December 31, 2012, compared to $213 thousand at December 31, 2011. We booked net charge-offs of $18 thousand during the fourth quarter of 2012, and net recoveries of $9 thousand for the year.
Our investment portfolio totaled $509.09 million at December 31, 2012, a decrease of $3.22 million from the December 31, 2011 ending balance of $512.31 million. We sold bonds with a book value of $129.43 million during 2012 for a net pre-tax gain of $507 thousand. These trades allowed us to lock in gains on faster paying mortgage-backed securities and helped us to reduce our exposure to accelerated premium amortization in the portfolio.
Total deposits also reached a record high during 2012 and ended the year at $1.27 billion, an increase of $93.20 million, or 7.91%, from balances of $1.18 billion at December 31, 2011, and an increase of $18.12 million from balances at September 30, 2012. Growth during 2012 has been concentrated in our transaction account categories. Demand deposits have shown solid growth during 2012, increasing by $42.97 million, or 21.75%, to $240.49 million at December 31, 2012 from $197.52 million at December 31, 2011. Other transaction account categories have increased by $68.08 million, or 10.77% to $700.19 million during 2012, compared to 2011. Deposits continued to migrate away from time deposit categories during 2012. Total time deposits decreased during 2012 by $17.85 million, or 5.13%, to $330.40 million, compared to 2011. Securities sold under agreement to repurchase, which represent collateralized customer accounts, ended 2012 at $287.52 million, a $24.99 million increase from December 31, 2011.
Our taxable equivalent net interest income was $13.02 million and $51.99 million for the three months and year ended December 31, 2012, respectively, compared to $12.92 million and $51.30 million for same periods in 2011; and $13.15 million for the third quarter of 2012. Our taxable equivalent net interest margin decreased 9 basis points to 3.20% during the fourth quarter of 2012 from 3.29% for the third quarter of 2012. Compared to the same periods in 2011, our taxable equivalent net interest margin decreased 17 basis points for the fourth quarter of 2012 and 23 basis points for the year. Our continued growth in earning assets has helped to offset margin compression and allowed us to increase net interest income during 2012. Average earning assets for the three months and year ended December 31, 2012 were $1.62 billion and $1.59 billion, respectively, an increase of $98.39 million and $125.83 million over the same periods in 2011, and an increase of $30.16 million over the third 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 3.55% for the fourth quarter of 2012, compared to 3.68% for the third quarter of 2012 and 3.89% for the fourth quarter of 2011. The average rate on our loan portfolio was 4.30% for the fourth quarter of 2012, a 10 basis point decrease from the third quarter of 2012, and a 38 basis point decrease from the fourth quarter of 2011. The average rate on our investment portfolio for the fourth quarter of 2012 was 2.17%, a 13 basis point decrease from the third quarter of 2012, and a 40 basis point decrease from the fourth 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 fourth quarter of 2012 was 43 basis points, a 5 basis point decrease from the prior quarter, and a 20 basis point decrease from the fourth quarter of 2011. 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.
"Similar to last year, growth in our balance sheet helped us to offset compression in the net interest margin in 2012. We are very pleased to have increased taxable equivalent net interest income during the year," commented Mr. Tuttle.
Total noninterest income increased to $2.76 million for the fourth quarter of 2012 from $2.32 million for the same period in 2011, and increased to $11.48 million for 2012 from $10.38 million for 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 $85 thousand and $507 thousand during the quarter and year ended December 31, 2012, respectively, compared to $(53) thousand and $994 thousand for the same periods in 2011. Excluding net gains (losses) on investment securities and the gains on the sale of the branch location and mineral rights, noninterest income increased slightly to $2.67 million for the fourth quarter of 2012 from $2.37 million for the fourth quarter of 2011, and increased to $9.89 million for 2012 from $9.39 million for 2011. The change for the quarter and year ended December 31, 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 $(327) thousand for the fourth quarter of 2012 from $(442) thousand for the fourth quarter of last year, and $(1.52) million for 2012, compared to $(1.77) million for 2011. Trust assets under management have continued to grow in 2012 and now total $555 million.
Total noninterest expense increased $239 thousand to $10.14 million for the fourth quarter of 2012 from $9.90 million for the same period in 2011; and increased $74 thousand to $41.33 million for 2012, compared to $41.26 million for 2011. As stated above, we prepaid $20 million in FHLB long-term debt during 2012 and incurred prepayment penalties totaling $1.36 million during 2012. We also prepaid $16 million in FHLB debt during 2011, and incurred a prepayment penalty of $861 thousand. Excluding the prepayment penalties, noninterest expense decreased $428 thousand for 2012, compared to 2011. Compensation and benefits were slightly higher for the fourth quarter of 2012, compared to the third quarter of 2012, as a result of an increased incentive accrual during the fourth quarter of 2012. Compensation and benefits were $935 thousand lower for 2012, compared to 2011; normal salary increases were offset by higher than normal vacant positions during 2012, a lower incentive accrual, and credits related to loan origination fees. Additionally, a change to our health insurance plan for 2012 resulted in a $274 thousand reduction in health and group insurance expense for 2012, compared to 2011. Occupancy and equipment expenses for 2012 increased $262 thousand to $7.45 million from $7.19 million for 2011, a result of ongoing capital investments related to maintenance, increased compliance requirements and enhancement and expansion of customer service delivery channels. The effective tax rate for 2012 was 21%, compared to 18% for 2011. 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, Executive Vice President and Chief Financial Officer and Geoffrey R. Hesslink, Executive Vice President 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 Thursday, January 24, 2013. Interested parties may participate in the conference call by dialing U.S. number (888) 317-6016, Canadian number (855) 669-9657 or international number (412) 317-6016; the title of the call is Merchants Bancshares, Inc. 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 Thursday, January 31, 2013. 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 10023203.
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 41 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 $484 thousand and $2.01 million for the three months and year ended December 31, 2012, respectively, and $534 thousand and $1.93 million was added back for the three months and year ended December 31, 2011, respectively. 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)
December 31, September 30, December 31, September 30,
------------ ------------- ------------ -------------
2012 2012 2011 2011
------------ ------------- ------------ -------------
Balance Sheets -
Period End
Total assets $ 1,708,550 $ 1,685,836 $ 1,611,869 $ 1,560,949
Loans 1,082,923 1,072,879 1,027,626 1,008,076
Allowance for loan
losses ("ALL") 11,562 11,444 10,619 10,480
Net loans 1,071,361 1,061,435 1,017,007 997,596
Investments-
taxable 509,088 526,700 512,309 418,543
Federal Home Loan
Bank ("FHLB")
stock 8,145 8,145 8,630 8,630
Cash and due from
banks 34,547 30,097 10,392 10,945
Interest earning
cash and other
short-term
investments 42,681 22,935 27,420 86,438
Other assets 42,728 36,524 36,111 38,797
Non-interest
bearing deposits 240,491 227,879 197,522 180,696
Savings, interest
bearing checking
and money market
accounts 700,191 687,267 632,110 630,355
Time deposits 330,398 337,817 348,248 354,508
Total deposits 1,271,080 1,252,963 1,177,880 1,165,559
Short-term
borrowings -- 55,600 -- 3,013
Securities sold
under agreement
to repurchase,
short-term 287,520 227,996 262,527 222,338
Other long-term
debt 2,483 2,503 22,562 22,581
Junior
subordinated
debentures issued
to unconsolidated
subsidiary trust 20,619 20,619 20,619 20,619
Other liabilities 8,627 8,126 18,744 18,839
Shareholders'
equity 118,221 118,029 109,537 108,000
Balance Sheets -
Quarter-to-Date
Averages
Total assets $ 1,682,673 $ 1,649,457 $ 1,564,335 $ 1,503,192
Loans 1,074,007 1,064,507 1,014,105 1,007,240
Allowance for loan
losses 11,542 11,309 10,584 10,550
Net loans 1,062,465 1,053,198 1,003,521 996,690
Investments-
taxable 510,557 499,688 443,713 366,435
FHLB stock 8,145 8,145 8,630 8,630
Cash and due from
banks 28,730 25,793 10,186 10,389
Interest earning
cash and other
short-term
investments 26,036 16,241 53,907 76,887
Other assets 46,740 46,392 44,378 44,161
Non-interest
bearing deposits 235,007 220,646 190,864 171,648
Savings, interest
bearing checking
and money market
accounts 680,330 677,321 622,208 600,639
Time deposits 332,678 341,231 349,832 355,007
Total deposits 1,248,015 1,239,198 1,162,904 1,127,294
Short-term
borrowings 34,347 60,141 1,798 1,592
Securities sold
under agreement
to repurchase,
short-term 250,355 196,117 238,935 207,037
Securities sold
under agreement
to repurchase,
long-term -- -- -- 3,995
Other long-term
debt 2,490 9,032 22,569 27,763
Junior
subordinated
debentures issued
to unconsolidated
subsidiary trust 20,619 20,619 20,619 20,619
Other liabilities 9,430 9,466 9,783 9,341
Shareholders'
equity 117,417 114,884 107,727 105,551
Earning assets 1,618,745 1,588,581 1,520,355 1,459,192
Interest bearing
liabilities 1,320,819 1,304,461 1,255,961 1,216,652
Ratios and
Supplemental
Information -
Period End
Book value per
share $ 19.84 $ 19.82 $ 18.54 $ 18.29
Book value per
share (1) $ 18.82 $ 18.81 $ 17.57 $ 17.35
Tier I leverage
ratio 8.08% 8.10% 8.08% 8.26%
Total risk-based
capital ratio 16.05% 15.83% 15.92% 15.81%
Tangible capital
ratio (2) 6.92% 7.00% 6.80% 6.92%
Period end common
shares
outstanding (1) 6,282,385 6,274,683 6,232,783 6,224,886
Credit Quality -
Period End
Nonperforming
loans ("NPLs") $ 2,912 $ 2,740 $ 2,511 $ 3,192
Nonperforming
assets ("NPAs") $ 2,912 $ 2,740 $ 2,869 $ 3,532
NPLs as a percent
of total loans 0.27% 0.26% 0.24% 0.32%
NPAs as a percent
of total assets 0.17% 0.16% 0.18% 0.23%
ALL as a percent
of NPLs 397% 418% 423% 328%
ALL as a percent
of total loans 1.07% 1.07% 1.03% 1.04%
(1) This book value and period end common shares outstanding includes
324,515; 319,572; 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 inunderstanding
our financial performance. Because we have no intangible assets, our
tangible equity is the same as our book equity.
For the Twelve Months Ended
December 31,
2012 2011
------------- -------------
Balance Sheets - Year to-Date Averages
Total assets $ 1,648,393 $ 1,507,656
Loans 1,057,446 971,003
Allowance for loan losses 11,182 10,432
Net loans 1,046,264 960,571
Investments-taxable 501,149 427,540
FHLB stock 8,235 8,630
Cash and due from banks 25,217 10,686
Federal funds sold and other short-term
investments 20,360 54,186
Other assets 47,168 46,043
Non-interest bearing deposits 214,113 163,090
Savings, interest bearing checking and money
market accounts 665,399 599,296
Time deposits 342,911 357,848
Total deposits 1,222,423 1,120,234
Short-term borrowings 38,290 2,153
Securities sold under agreement to repurchase,
short-term 230,281 217,823
Securities sold under agreement to repurchase,
long-term -- 4,726
Other long-term debt 13,667 28,117
Junior subordinated debentures issued to
unconsolidated subsidiary trust 20,619 20,619
Other liabilities 9,492 10,345
Shareholders' equity 113,621 103,639
Earning assets 1,587,190 1,461,359
Interest bearing liabilities 1,311,167 1,230,582
For the Twelve
For the Three Months Ended Months Ended
------------------------------- -------------------
December September December December December
31, 30, 31, 31, 31,
-------- --------- --------- --------- --------
2012 2012 2011 2012 2011
-------- --------- --------- --------- --------
Operating
Results
Interest income
Interest and
fees on loans $ 11,117 $ 11,278 $ 11,441 $ 44,977 $ 45,271
Interest and
dividends on
investments 2,846 2,951 2,949 11,880 12,747
Total interest
and dividend
income 13,963 14,229 14,390 56,857 58,018
Interest
expense
Deposits 803 860 1,030 3,551 4,474
Securities sold
under
agreement to
repurchase and
other short-
term
borrowings 336 341 523 1,790 2,065
Long-term debt 289 364 452 1,542 2,105
Total interest
expense 1,428 1,565 2,005 6,883 8,644
Net interest
income 12,535 12,664 12,385 49,974 49,374
Provision for
credit losses 250 250 250 950 750
Net interest
income after
provision for
credit losses 12,285 12,414 12,135 49,024 48,624
Noninterest
income
Trust division
income 685 670 622 2,685 2,516
Service charges
on deposits 1,077 1,033 1,103 4,078 4,298
Gain (loss) on
investment
securities,
net 85 (26) 2 507 1,049
Gain on sale of
other assets -- 749 -- 1,083 --
Other-than-
temporary
impairment
losses on
securities -- -- (55) -- (55)
Equity in
losses of real
estate limited
partnerships,
net (327) (370) (442) (1,516) (1,766)
Other
noninterest
income 1,238 1,143 1,085 4,644 4,338
Total
noninterest
income 2,758 3,199 2,315 11,481 10,380
Noninterest
expense
Compensation
and benefits 4,826 4,809 4,973 19,582 20,517
Occupancy and
equipment
expenses 1,925 1,837 1,813 7,452 7,190
Legal and
professional
fees 591 677 713 2,545 2,811
Marketing
expenses 577 360 474 1,841 1,733
State franchise
taxes 330 321 314 1,295 1,265
FDIC insurance 222 217 196 866 936
Prepayment
penalty -- 677 -- 1,363 861
Other real
estate owned 68 65 65 197 193
Other
noninterest
expense 1,598 1,486 1,350 6,193 5,754
Total
noninterest
expense 10,137 10,449 9,898 41,334 41,260
Income before
provision for
income taxes 4,906 5,164 4,552 19,171 17,744
Provision for
income taxes 1,066 1,159 843 3,977 3,124
Net income $ 3,840 $ 4,005 $ 3,709 $ 15,194 $ 14,620
Ratios and
Supplemental
Information
Weighted
average common
shares 6,279,2 6,269,34 6,229,43 6,258,83 6,212,1
outstanding 79 7 0 2 87
Weighted
average
diluted shares 6,291,2 6,280,47 6,243,63 6,271,10 6,223,7
outstanding 37 9 2 2 69
Basic earnings
per common
share $ 0.61 $ 0.64 $ 0.60 $ 2.43 $ 2.35
Diluted
earnings per
common share $ 0.61 $ 0.64 $ 0.59 $ 2.42 $ 2.35
Return on
average assets 0.91% 0.97% 0.95% 0.92% 0.97%
Return on
average
shareholders'
equity 13.08% 13.95% 13.77% 13.37% 14.11%
Average yield
on loans 4.30% 4.40% 4.68% 4.44% 4.86%
Average yield
on investments 2.17% 2.30% 2.57% 2.32% 2.90%
Average yield
of earning
assets 3.55% 3.68% 3.89% 3.71% 4.10%
Average cost of
interest
bearing
deposits 0.32% 0.34% 0.42% 0.35% 0.47%
Average cost of
borrowed funds 0.81% 0.98% 1.36% 1.10% 1.52%
Average cost of
interest
bearing
liabilites 0.43% 0.48% 0.63% 0.52% 0.70%
Net interest
rate spread 3.12% 3.20% 3.26% 3.19% 3.40%
Net interest
margin 3.20% 3.29% 3.37% 3.28% 3.51%
Net interest
income on a
fully taxable
equivalent
basis $ 13,019 $ 13,149 $ 12,919 $ 51,989 $ 51,304
Net (charge-
offs)
recoveries to
Average Loans 0.00% 0.00% 0.00% 0.00% (0.02%)
Net (charge-
offs)
recoveries $ (18) $ 12 $ 14 $ 9 $ (151)
Efficiency
ratio (1) 60.74% 58.64% 61.55% 60.63% 62.61%
(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, 2012, Merchants Bank had off-balance sheet
liabilities in the form of standby letters of credit to customers
in the amount of $4.48 million.
Source: South Burlingotn Vermont--(Marketwire - January 23, 2013)
Contact:
Lisa Razo
Merchants Bank
(802) 865-1838