Vermont Business Magazine Merchants Bancshares, Inc(NASDAQ:MBVT),the parent company of Merchants Bank, today announced net incomeof$2.31 million, or$0.36per basic and diluted share for the fourth quarter of 2015. The fourth quarter of 2015 included$1.6 millionof merger-related expenses, net of tax, related to the acquisition of NUVO Bank & Trust Company, which closed onDecember 4, 2015, and retirement costs net of tax. Excluding these items, the Company's core net income was $3.94 millionor$0.61per basic and diluted share. This compares to net income of$2.50 million, or$0.40per basic and$0.39per diluted share, for the fourth quarter of 2014. For the year endedDecember 31, 2015, net income totaled$12.62 million, or$1.98per basic and diluted share, compared to net income of$12.13 million, or$1.92per basic and$1.91per diluted share for the year endedDecember 31, 2014.
The return on average assets was 0.49% and 0.71% for the three months and year endedDecember 31, 2015, respectively, compared to 0.59% and 0.73% for the same periods in 2014. The return on average equity was 6.73% and 9.69% for the three months and year endedDecember 31, 2015, respectively, compared to 7.95% and 9.84% for the same periods in 2014. The Company's Board of Directors approved a dividend of$0.28per share, payableFebruary 18, 2016, to stockholders of record as ofFebruary 4, 2016.
"The completion of the NUVO Bank & Trust Company acquisition onDecember 4, 2015expands our New England footprint, presenting new opportunities for our lending teams. We are excited about these growth prospects and welcome our new customers in the greaterSpringfieldandWestern Massachusettsmarkets," commentedGeoffrey Hesslink, Merchants Bancshares, Inc.'s President and Chief Executive Officer.
Hesslink added, "The Company continues to deliver solid core earnings on ourVermontbusiness. The recent NUVO acquisition will be immediately accretive to earnings and puts us in a great position for business expansion in 2016."
As a result of the acquisition of NUVO, Merchants Bancshares added assets of$165 million, loans of$149 millionand deposits of$143 million.
2015 Financial Highlights
- Balance Sheet:
- The investment portfolio for the fourth quarter of 2015 was$406.9 million, an increase of$60.7 millionfrom the fourth quarter of 2014. A significant cash position was maintained in anticipation of funding requirements arising from the restructuring of NUVO's relatively higher rate deposits.
- Total loan balances atDecember 31, 2015were$1.4 billion,$156.3 millionhigher on a linked quarter basis and$231.9 millionhigher from the fourth quarter of 2014. Balances were impacted by the addition of$149 millionrelated to the acquisition NUVO.
- Total commercial loans, defined as commercial, commercial real estate and construction, increased$191.9 millionfromDecember 31, 2014to$805.8 millionatDecember 31, 2015. The growth in the loan portfolio was primarily attributable to the addition of NUVO. The standalone Merchants Bank loan portfolio experienced moderate growth on a linked quarter basis.
- The Allowance for Loan Losses (ALL) as ofDecember 31, 2015was$12.1 million, or 0.86% of portfolio loans, as compared to$11.8 million, or 1.00% of portfolio loans, as ofDecember 31, 2014. The decrease in the ALL as a percentage of portfolio loans was primarily a result of the increase in loan balances resulting from the NUVO acquisition. Loans acquired in the acquisition were marked to their fair value at acquisition, and, as such, no additional ALL was recorded for the acquired portfolio.
- Total deposits reached$1.6 billionfor the fourth quarter of 2015, an increase of$242.7 millioncompared toDecember 31, 2014, excluding NUVO deposits; standalone Merchants Bank deposits increased$99 million. The increase is primarily attributable to higher retail and trust account deposits.
- Total stockholders' equity ended the quarter at$148.0 million, driven by 517,109 new shares issued in the NUVO deal.
- Book value per share increased$1.68to$21.57per share atDecember 31, 2015from$19.89atDecember 31, 2014.
- Income Statement:
- Net interest income on a fully-taxable basis was$13.25 millionfor the three months endedDecember 31, 2015, compared to$12.60 millionfor the quarter endingSeptember 30, 2015, and$12.02 millionfor the same period in 2014.
- The Company recorded a zero provision for credit losses during the fourth quarters of 2015 and 2014. The year to date provision for credit losses totaled$250 thousandcompared to$150 thousandfor the twelve months endedDecember 31, 2014, reflecting the trend of solid credit quality.
- Noninterest income for the fourth quarter of 2015 was$3.09 million, a decrease of$362 thousandon a linked quarter basis and an increase of$284 thousandfrom the fourth quarter of 2014. The decline on a linked quarter basis was attributable to non-recurring miscellaneous income recognized in the prior quarter. The increase from the fourth quarter of 2014 was due to higher seasonal volumes in debit card and overdraft fee income.
- Excluding merger-related, severance and retirement costs for 2015, and conversion and severance expenses for 2014, noninterest expense was$10.9 millionfor the fourth quarter of 2015, an increase of$805 thousandon a linked quarter basis and an increase of$543 thousandfrom the fourth quarter of 2014. The primary drivers of the increases were incentive accruals.
- The effective tax rate was 20% for the three and twelve months endedDecember 31, 2015, compared to 20% and 23% for the three and twelve months endedDecember 31, 2014. The decrease in the twelve month effective tax rate was due to higher tax credits.
- Other Items:
- The taxable equivalent net interest margin for the three months endedDecember 31, 2015was 2.89%, a decrease of 7 basis points on a linked quarter basis, and a decrease of 4 basis points from the fourth quarter of 2014.
- Nonperforming loans were$4.17 million, or 0.30% of total loans, atDecember 31, 2015, compared to 0.11% of total loans atSeptember 30, 2015and 0.07% of total loans atDecember 31, 2014. The increase in nonperforming loans from both periods was primarily attributable to$2.23 millionnonperforming loans acquired from NUVO.
- Regulatory Capital Ratios atDecember 31, 2015:
- Common Equity Tier 1 – 12.88%
- Tier 1 Leverage – 8.71%
- Total Risk-Based Capital – 15.80%
- Tangible Capital – 6.94%
Geoffrey R. Hesslink, President and Chief Executive Officer, andMarie Thresher, Executive Vice President and Chief Operating Officer, will host a conference call to discuss these earnings results, business and outlook at9:00 a.m. Eastern TimeonFriday, January 22, 2016. Interested parties may participate in the conference call by dialing U.S. number (866) 218-2405,Canadanumber (855) 669-9657, or internationalnumber (412) 902-4124. The title of the call is Merchants Bancshares, Inc. Q4 2015 Earnings Call. Participants are asked to call a few minutes prior to register. A replay will be available until9:00 a.m. Eastern TimeonFriday, January 29, 2016. The U.S. replay dial-in telephone number is (877) 344-7529. TheCanadareplay 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 10068671. Additionally, a recording of the call will be available on Merchants website atwww.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, such as core net income, tangible capital ratio and fully taxable equivalent net interest income. 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. Merchants Bancshares believes 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. Additionally, capital ratios as presented are preliminary and will not be finalized until the Bank completes and files it regulatory reporting.
The Merger of Merchants Bank and NUVO Bank & Trust Company
OnDecember 4, 2015, Merchants completed the acquisition of NUVO Bank & Trust Company ("NUVO"), which was structured as a merger of NUVO with and into Merchants' wholly-owned subsidiary, Merchants Bank. NUVO's banking business will be operated as a division of Merchants Bank. Total compensation paid by Merchants for NUVO's outstanding stock was comprised of approximately 517,109 shares of common stock and$5.106 millionin cash. Merchants also paid an aggregate of approximately$878,000to cash out NUVO stock options and a portion of its common stock warrants and issued replacement warrants to purchase Merchants common stock on adjusted terms. With completion of the merger, Merchants Bancshares now has consolidated assets of approximately$2.0 billionand 32 banking locations, including the new office inSpringfield, Massachusetts. These balances are unaudited and do not include any adjustments for purchase accounting. Upon completion of the merger onDecember 4, 2015, Merchants had 6,859,933 shares of common stock outstanding, including the 517,109 shares of common stock issued as consideration for the merger.
| Merchants Bancshares, Inc. | |||||||
| Financial Highlights (unaudited) | |||||||
| (Dollars in thousands except share and per share data) | |||||||
| December 31, | September 30, | December 31 | September 30, | ||||
| 2015 | 2015 | 2014 | 2014 | ||||
| Balance Sheets - Period End | |||||||
| Total assets | $ 2,021,198 | $ 1,818,341 | $ 1,723,464 | $ 1,647,586 | |||
| Cash and due from banks | 30,355 | 21,541 | 23,745 | 27,283 | |||
| Interest earning cash and other short-term investments | 104,828 | 89,918 | 130,714 | 92,374 | |||
| Fed funds sold and other Short Term Investments | 15,000 | - | - | - | |||
| Investments-available for sale, taxable | 283,454 | 282,083 | 203,473 | 186,049 | |||
| Investments-held to maturity, taxable | 119,674 | 123,929 | 138,421 | 142,110 | |||
| Loans | 1,414,280 | 1,257,932 | 1,182,334 | 1,156,663 | |||
| Allowance for loan losses ("ALL") | 12,113 | 12,210 | 11,833 | 12,019 | |||
| Net loans | 1,402,167 | 1,245,722 | 1,170,501 | 1,144,644 | |||
| Federal Home Loan Bank ("FHLB") stock | 3,797 | 4,378 | 4,378 | 4,378 | |||
| Bank premises and equipment, net | 15,030 | 15,019 | 15,492 | 15,922 | |||
| Bank owned life insurance | 10,551 | 10,492 | 10,311 | 10,237 | |||
| Goodwill | 6,967 | - | - | - | |||
| Investment in real estate limited partnerships | 5,687 | 5,982 | 5,196 | 5,511 | |||
| Core Deposit Intangible | 1,360 | - | - | - | |||
| Other assets | 22,329 | 19,277 | 21,233 | 19,078 | |||
| Non-interest bearing deposits | 631,244 | 575,492 | 566,366 | 544,425 | |||
| Savings, interest bearing checking and money market accounts | 665,623 | 620,224 | 530,722 | 525,680 | |||
| Time deposits | 254,572 | 191,757 | 211,684 | 233,976 | |||
| Total deposits | 1,551,439 | 1,387,473 | 1,308,772 | 1,304,081 | |||
| Short-term borrowings | 3,001 | - | - | - | |||
| Securities sold under agreement to repurchase, short-term | 286,639 | 267,794 | 258,464 | 188,157 | |||
| Other long-term debt | 2,237 | 2,258 | 2,320 | 2,341 | |||
| Junior subordinated debentures issued to unconsolidated subsidiary trust | 20,619 | 20,619 | 20,619 | 20,619 | |||
| Other liabilities | 9,272 | 7,551 | 7,468 | 6,644 | |||
| Stockholders' equity | 147,992 | 132,646 | 125,821 | 125,744 | |||
| Balance Sheets - Quarter-to-Date Averages | |||||||
| Total assets | $ 1,891,143 | $ 1,759,743 | $ 1,692,286 | $ 1,642,390 | |||
| Cash and due from banks | 28,380 | 26,049 | 26,476 | 27,871 | |||
| Interest earning cash and other short-term investments | 106,681 | 52,795 | 124,913 | 72,400 | |||
| Investments-available for sale, taxable | 279,416 | 264,633 | 196,557 | 191,771 | |||
| Investments-held to maturity, taxable | 122,924 | 126,549 | 140,339 | 144,510 | |||
| Loans | 1,306,613 | 1,245,861 | 1,163,776 | 1,162,236 | |||
| Allowance for loan losses | 12,269 | 12,223 | 12,079 | 12,090 | |||
| Net loans | 1,294,344 | 1,233,638 | 1,151,697 | 1,150,146 | |||
| FHLB stock | 3,751 | 4,378 | 4,378 | 4,883 | |||
| Bank owned life insurance | 10,515 | 10,456 | 10,270 | 10,190 | |||
| Other assets | 45,132 | 41,245 | 37,657 | 40,618 | |||
| Non-interest bearing deposits | 610,499 | 586,773 | 558,960 | 475,101 | |||
| Savings, interest bearing checking and money market accounts | 632,481 | 613,337 | 529,189 | 612,811 | |||
| Time deposits | 210,527 | 195,044 | 220,114 | 247,297 | |||
| Total deposits | 1,453,507 | 1,395,154 | 1,308,263 | 1,335,209 | |||
| Short-term borrowings | 1,011 | 9,649 | - | 96 | |||
| Securities sold under agreement to repurchase, short-term | 268,614 | 195,410 | 228,080 | 152,451 | |||
| Other long-term debt | 2,244 | 2,265 | 2,327 | 2,348 | |||
| Junior subordinated debentures issued to unconsolidated subsidiary trust | 20,619 | 20,619 | 20,619 | 20,619 | |||
| Other liabilities | 7,973 | 7,388 | 7,139 | 7,250 | |||
| Stockholders' equity | 137,176 | 129,258 | 125,858 | 124,417 | |||
| Earning assets | 1,819,385 | 1,694,216 | 1,629,963 | 1,575,801 | |||
| Interest bearing liabilities | 1,135,496 | 1,036,324 | 1,000,329 | 1,035,622 | |||
| Ratios and Supplemental Information - Period End | |||||||
| Book value per share | $ 21.57 | $20.93 | $ 19.89 | $ 19.86 | |||
| Common Equity Tier 1 | 12.88% | 13.83% | N/A | N/A | |||
| Tier I leverage ratio | 8.71% | 8.93% | 8.76% | 8.95% | |||
| Total risk-based capital ratio | 15.80% | 17.10% | 16.95% | 17.29% | |||
| Tangible capital ratio (1) | 6.94% | 7.29% | 7.30% | 7.63% | |||
| Period end common shares outstanding | 6,859,933 | 6,338,158 | 6,327,226 | 6,329,958 | |||
| Credit Quality - Period End | |||||||
| Nonperforming loans ("NPLs") | $ 4,173 | $1,404 | $ 791 | $ 732 | |||
| Nonperforming assets ("NPAs") | $ 4,185 | $1,404 | $ 791 | $ 732 | |||
| NPLs as a percent of total loans | 0.30% | 0.11% | 0.07% | 0.06% | |||
| NPAs as a percent of total assets | 0.21% | 0.08% | 0.05% | 0.04% | |||
| ALL as a percent of NPLs | 290% | 870% | 1496% | 1642% | |||
| ALL as a percent of total loans | 0.86% | 0.97% | 1.00% | 1.04% | |||
| (1) The tangible capital ratio is calculated by dividing tangible equity by tangible assets. See Non-GAAP reconciliation below. | |||||||
| For the Twelve Months Ended | |||||||
| December 30, | December 30, | ||||||
| 2015 | 2014 | ||||||
| Balance Sheets - Year-to-Date Averages | |||||||
| Total assets | $ 1,775,496 | $ 1,667,666 | |||||
| Cash and due from banks | 25,901 | 27,351 | |||||
| Interest earning cash and other short-term investments | 81,961 | 79,599 | |||||
| Investments-available for sale, taxable | 252,215 | 208,169 | |||||
| Investments-held to maturity, taxable | 129,416 | 144,322 | |||||
| Loans | 1,240,386 | 1,165,586 | |||||
| Allowance for loan losses | 12,116 | 12,123 | |||||
| Net loans | 1,228,270 | 1,153,463 | |||||
| FHLB stock | 4,175 | 5,784 | |||||
| Bank owned life insurance | 10,426 | 10,150 | |||||
| Other assets | 43,132 | 38,828 | |||||
| Non-interest bearing deposits | 588,698 | 393,355 | |||||
| Savings, interest bearing checking and money market accounts | 590,988 | 668,815 | |||||
| Time deposits | 203,851 | 258,220 | |||||
| Total deposits | 1,383,537 | 1,320,390 | |||||
| Short-term borrowings | 4,207 | 212 | |||||
| Securities sold under agreement to repurchase, short-term | 226,913 | 192,868 | |||||
| Other long-term debt | 2,275 | 2,358 | |||||
| Junior subordinated debentures issued to unconsolidated subsidiary trust | 20,619 | 20,619 | |||||
| Other liabilities | 7,725 | 7,936 | |||||
| Stockholders' equity | 130,220 | 123,282 | |||||
| Earning assets | 1,708,153 | 1,603,459 | |||||
| Interest bearing liabilities | 1,048,853 | 1,143,092 | |||||
| Loan Portfolios - Period End | |||||||
| (In thousands) | December 31, 2015 |
September 30, 2015 |
December 31, 2014 |
September 30, 2014 |
|||
| Commercial, financial and agricultural | $ 237,478 | $ 207,067 | $ 177,597 | $ 183,069 | |||
| Municipal loans | 105,421 | 108,423 | 94,366 | 96,258 | |||
| Real estate loans - commercial | 533,569 | 450,673 | 412,447 | 381,301 | |||
| Real estate loans - residential | 492,801 | 448,632 | 469,529 | 472,986 | |||
| Real estate loans - construction | 34,802 | 40,748 | 23,858 | 17,970 | |||
| Installment Loans | 10,143 | 2,370 | 4,504 | 4,793 | |||
| All other loans | 66 | 19 | 33 | 286 | |||
| Total Loans | $ 1,414,280 | $ 1,257,932 | $ 1,182,334 | $ 1,156,663 | |||
| For the Three Months Ended | For the Twelve Months Ended | ||||||
| December 31, | September 30, | December 31 | December 31, | December 31, | |||
| 2015 | 2015 | 2014 | 2015 | 2014 | |||
| Operating Results | |||||||
| Interest income | |||||||
| Interest and fees on loans | $ 11,608 | $ 11,055 | $ 10,655 | $ 44,087 | $ 42,815 | ||
| Interest and dividends on investments | $ 1,995 | $ 1,961 | $ 1,819 | $ 7,779 | 7,965 | ||
| Interest on interest earning deposits with banks and other short-term investments | 94 | 25 | 83 | 250 | 192 | ||
| Total interest and dividend income | 13,697 | 13,041 | 12,557 | 52,116 | 50,972 | ||
| Interest expense | |||||||
| Savings, interest bearing checking and money market accounts | 358 | 354 | 365 | 1,433 | 1,647 | ||
| Time deposits $100 thousand and greater | 105 | 120 | 132 | 467 | 635 | ||
| Other time deposits | 232 | 198 | 235 | 845 | 1,090 | ||
| Total Deposits | 695 | 672 | 732 | 2,745 | 3,372 | ||
| Securities sold under agreement to repurchase and other short-term borrowings | 108 | 97 | 111 | 510 | 353 | ||
| Long-term debt | 202 | 199 | 202 | 797 | 800 | ||
| Total interest expense | 1,005 | 968 | 1,045 | 4,052 | 4,525 | ||
| Net interest income | 12,693 | 12,073 | 11,512 | 48,064 | 46,447 | ||
| Provision for credit losses | - | 150 | - | 250 | 150 | ||
| Net interest income after provision for credit losses | 12,693 | 11,923 | 11,512 | 47,814 | 46,297 | ||
| Noninterest income | |||||||
| Trust division income | 858 | 886 | 856 | 3,525 | 3,393 | ||
| Net, debit card income | 779 | 796 | 645 | 3,080 | 2,660 | ||
| Overdraft income | 678 | 548 | 554 | 2,004 | 2,473 | ||
| Service charges on deposits | 396 | 390 | 392 | 1,504 | 1,369 | ||
| Gain (losses) on investment securities, net | - | - | - | - | 107 | ||
| Other noninterest income | 376 | 829 | 356 | 1,847 | 1,572 | ||
| Total noninterest income | 3,087 | 3,449 | 2,803 | 11,960 | 11,574 | ||
| Noninterest expense | |||||||
| Compensation and benefits | 6,133 | 5,508 | 5,534 | 21,879 | 20,440 | ||
| Occupancy expense | 1,023 | 1,036 | 996 | 4,251 | 4,292 | ||
| Equipment expense | 747 | 726 | 748 | 2,971 | 2,882 | ||
| Telephone expense | 179 | 206 | 211 | 789 | 895 | ||
| Legal and professional fees | 596 | 414 | 485 | 1,991 | 1,924 | ||
| Mobile & internet banking | 402 | 399 | 390 | 1,597 | 1,452 | ||
| Core / Item processing | 476 | 450 | 521 | 1,765 | 1,876 | ||
| Marketing expenses | 125 | 148 | 272 | 561 | 1,177 | ||
| State franchise taxes | 408 | 404 | 339 | 1,503 | 1,435 | ||
| FDIC insurance | 233 | 218 | 207 | 886 | 857 | ||
| Conversion costs | - | - | 489 | - | 1,319 | ||
| Merger costs | 1,511 | 215 | - | 1,875 | - | ||
| Core deposit intangible amortization | 17 | - | - | 17 | - | ||
| Other noninterest expense | 1,041 | 867 | 1,014 | 3,886 | 3,665 | ||
| Total noninterest expense | 12,892 | 10,591 | 11,206 | 43,971 | 42,214 | ||
| Income before provision for income taxes | 2,888 | 4,781 | 3,109 | 15,803 | 15,657 | ||
| Provision for income taxes | 579 | 925 | 608 | 3,185 | 3,532 | ||
| Net income | $ 2,309 | $ 3,856 | $ 2,501 | $ 12,618 | $ 12,125 | ||
| Ratios and Supplemental Information | |||||||
| Weighted average common shares outstanding | 6,493,180 | 6,337,778 | 6,330,244 | 6,373,122 | 6,326,142 | ||
| Weighted average diluted shares outstanding | 6,498,071 | 6,349,086 | 6,347,281 | 6,381,222 | 6,343,837 | ||
| Basic earnings per common share | $ 0.36 | $ 0.61 | $ 0.40 | $ 1.98 | $ 1.92 | ||
| Diluted earnings per common share | $ 0.36 | $ 0.61 | $ 0.39 | $ 1.98 | $ 1.91 | ||
| Return on average assets | 0.49% | 0.88% | 0.59% | 0.71% | 0.73% | ||
| Return on average stockholders' equity | 6.73% | 11.93% | 7.95% | 9.69% | 9.84% | ||
| Average yield on loans | 3.69% | 3.69% | 3.81% | 3.72% | 3.85% | ||
| Average yield on investments | 1.97% | 1.98% | 2.12% | 2.02% | 2.22% | ||
| Average yield of earning assets | 3.12% | 3.19% | 3.18% | 3.17% | 3.31% | ||
| Average cost of interest bearing deposits | 0.33% | 0.33% | 0.39% | 0.35% | 0.36% | ||
| Average cost of borrowed funds | 0.42% | 0.52% | 0.50% | 0.51% | 0.53% | ||
| Average cost of interest bearing liabilites | 0.35% | 0.37% | 0.41% | 0.39% | 0.40% | ||
| Net interest rate spread | 2.77% | 2.82% | 2.77% | 2.79% | 2.91% | ||
| Net interest margin | 2.89% | 2.96% | 2.93% | 2.94% | 3.03% | ||
| Net interest income on a fully taxable equivalent basis | $ 13,247 | $ 12,601 | $ 12,023 | $ 50,153 | $ 48,525 | ||
| Net charge-offs (recoveries) to Average Loans | 0.00% | 0.00% | 0.02% | 0.01% | 0.01% | ||
| Net charge-offs (recoveries) | $ 43 | $ 43 | $ 67 | $ 109 | $ 163 | ||
| Efficiency ratio (1) | 63.70% | 64.09% | 65.46% | 64.02% | 63.94% | ||
| (1) The efficiency ratio excludes amortization of intangibles, OREO expenses, gain/loss on sales of securities, state | |||||||
| franchise taxes, and any significant nonrecurring items. | |||||||
| Amounts reported for prior periods are reclassified, where necessary, to be consistent with the current period presentation. | |||||||
| Non-GAAP Reconciliation: | |||||||
| December 31, | |||||||
| Core Net Interest Income | 2015 | ||||||
| Merger Related Expenses and retirement costs | $ 2,039 | ||||||
| Tax effect | 408 | ||||||
| Merger Related Expenses and retirement costs, net of tax | 1,631 | ||||||
| GAAP Net Income as Reported | 2,309 | ||||||
| Core Net Income | $ 3,941 | ||||||
| Weighted average diluted shares outstanding | 6,498 | ||||||
| Core Diluted earnings per common share | $ 0.61 | ||||||
| Tangible Capital Ratio | |||||||
| December 31, | September 30, | December 31 | September 30, | ||||
| Period End | 2015 | 2015 | 2014 | 2014 | |||
| Total Assets | 2,021,198 | 1,818,341 | 1,723,464 | 1,647,586 | |||
| Core Deposit Intangible | 1,360 | - | - | - | |||
| Goodwill | 6,967 | - | - | - | |||
| Tangible Assets | 2,012,871 | 1,818,341 | 1,723,464 | 1,647,586 | |||
| Total Stockholders Equity | 147,992 | 132,646 | 125,821 | 125,744 | |||
| Core Deposit Intangible | 1,360 | - | - | - | |||
| Goodwill | 6,967 | - | - | - | |||
| Tangible Stockholders Equity | 139,665 | 132,646 | 125,821 | 125,744 | |||
| Tangible Capital Ratio | 6.94% | 7.29% | 7.30% | 7.63% | |||
SOURCE: SOUTH BURLINGTON, Vt.,Jan. 21, 2016/PRNewswire/ --Merchants Bancshares, Inc.
Cautionary Note Regarding Forward-Looking Statements
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 Bancshares' 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. Actual results could differ materially from those projected in the forward-looking statements as a result of, among others,costs or difficulties related to the integration of NUVO; weakness in general, national, regional or local economic conditions, the performance of the 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 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 Merchants Bancshares' ability to take appropriate action to protect financial interests in certain loan situations.
You should not place undue reliance on 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 the Annual Report on Form 10-K, as updated by Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission. Merchants Bancshares' does 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.