MERCHANTS BANCSHARES,INC. SOUTH BURLINGTON, Vt., Oct. 26, 2015 /PRNewswire/ -- Merchants Bancshares, Inc. (NASDAQ: MBVT), the parent company of Merchants Bank, today announced net income of $3.86 million and $10.31 million, or diluted earnings per share of $0.61 and $1.62, for the three and nine months ended September 30, 2015, respectively. This compares to net income of $2.81 million and $9.62 million, or diluted earnings per share of $0.44 and $1.52, for the three and nine months ended September 30, 2014, respectively.
The return on average assets was 0.88% for the three months and 0.79% for the nine months ended September 30, 2015, compared to 0.68% and 0.77% for the same periods in 2014. The return on average equity was 11.93% and 10.75% for the three and nine months ended September 30, 2015, respectively, compared to 9.02% and 10.48% for the same periods in 2014. Merchants Bancshares' Board of Directors approved a dividend of $0.28 per share, payable November 23, 2015, to shareholders of record as of November 9, 2015.
"We are pleased to report strong third quarter results. The numbers reflect improvement in several areas that contribute to fully tax equivalent net interest income, and non-interest income. The earnings trend is consistent with our expectations for the second half of 2015 and bodes well for the future," commented Michael R. Tuttle, Merchants Bancshares' President and Chief Executive Officer.
"As expected we are beginning to see the benefits of our investments and plans. Solid commercial loan growth is driving improvement in net interest income and initiatives to grow fee income and control expenses have been successful. We are delighted with the progress on these fronts and expect the benefits will continue to build over the course of the year. The favorable trends with our business combined with the expected closure of the NUVO acquisition in the fourth quarter leave us well positioned entering 2016," added Geoffrey R. Hesslink, Merchants Bank's President and Chief Executive Officer.
Average loan balances for the three months ended September 30, 2015 were $1.25 billion, $25.4 million higher on a linked quarter basis and $82.1 million higher from the fourth quarter of 2014. Ending loan balances were $1.26 billion, an increase of $54.3 million from June 30, 2015 and $75.6 million from December 31, 2014. The increase in loan balances since June 30, 2015, reflects growth in commercial real estate loans and normal seasonal growth in municipal loans. Municipal balances increased approximately $49 million from June 30, 2015. Total commercial loans, defined as commercial, commercial real estate and construction, increased $11.0 million from June 30, 2015 to $698.5 million at September 30, 2015. Total commercial loans increased $84.6 million from December 31, 2014, which represents a year-to-date annualized commercial loan growth of 18.4%.
The following table summarizes the components of the loan portfolio for the periods ending:
(In thousands) September 30, 2015 June 30, 2015 December 31, 2014 September 30, 2014
------------- ------------------ ------------- ----------------- ------------------
Commercial,
financial and
agricultural $207,067 $210,458 $177,597 $183,069
Municipal loans 108,423 59,035 94,366 96,258
Real estate loans
-commercial 450,673 438,622 412,447 381,301
Real estate loans
-residential 448,632 454,114 469,529 472,986
Real estate loans
-construction 40,748 38,435 23,858 17,970
Installment Loans 2,370 2,950 4,504 4,793
All other loans 19 41 33 286
--------------- --- --- --- ---
Total Loans $1,257,932 $1,203,655 $1,182,334 $1,156,663
----------- ---------- ---------- ---------- ----------
Merchants Bancshares recorded a $250 thousand provision for credit losses during the nine months ended September 30, 2015, compared to $150 thousand during the nine months ended September 30, 2014. The additional provision was a result of continued loan growth. Nonperforming loans were 0.11% of total loans at September 30, 2015, compared to 0.07% of total loans at December 31, 2014 and 0.06% of total loans at September 30, 2014. The increase in nonperforming loans from the prior year-end was primarily attributable to one commercial credit that was placed on non-accrual during the second quarter of 2015. Accruing loans past due 31-90 days were 0.01% of total loans at September 30, 2015. The Bank continues to experience strong credit quality.
The average investment portfolio for the third quarter of 2015 was $396 million, an increase of $54 million from both the third quarter of 2014, and fourth quarter of 2014. The ending balance in the investment portfolio at September 30, 2015 was $410 million, compared to $333 million at September 30, 2014 and $346 million at December 31, 2014.
Total deposits at September 30, 2015 were $1.39 billion, $79 million higher than balances at December 31, 2014 and $83 million higher than balances at September 30, 2014. Quarterly average deposit balances increased by $60 million to $1.40 billion, a 4% increase over quarterly averages for the third quarter of 2014. Securities sold under agreement to repurchase, which represent collateralized customer accounts, were $268 million at September 30, 2015, an increase of $80 million from September 30, 2014, due to an increase in municipal customers.
Merchants Bancshares' shareholders' equity and capital ratios remain strong. Shareholders' equity ended the quarter at $132.6 million, and the book value per share increased by $1.04 to $20.93 per share at September 30, 2015 from $19.89 at December 31, 2014. At September 30, 2015, common equity tier 1 ratio was 13.83%. At September 30, 2015, the tier 1 leverage ratio increased to 8.93%, total risk-based capital ratio increased to 17.10% and the tangible capital ratio decreased slightly to 7.29% from 8.76%, 16.95% and 7.30%, respectively, at December 31, 2014.
Merchants Bancshares' taxable equivalent net interest income was $12.60 million for the three months ended September 30, 2015, compared to $12.25 million for the quarter ending June 30, 2015, and $12.01 million for the same period in 2014. The increase in net interest income is attributable to growth in both total commercial loans and the investment portfolio. The taxable equivalent net interest margin for the three months ended September 30, 2015 was 2.96%, an increase of one basis point on a linked quarter basis, and a decrease of seven basis points from the third quarter of 2014. The stability of the net interest margin on a linked basis reflects a decline in assets yields, offset by the change in our asset mix. The decline in the margin from the same period last year was primarily due to the decline in asset yields.
Total noninterest income for the third quarter of 2015 was $3.45 million, an increase of $696 thousand on a linked quarter basis and an increase of $573 thousand as compared to the third quarter in 2014. On a linked quarter basis other noninterest income increased $484 thousand to $829 thousand due to non-recurring miscellaneous income of $440 thousand and overdraft fee income which increased $215 thousand to $548 thousand. The increase from the third quarter of 2014 is primarily due to higher debit card income of $118 thousand, which is reflective of increased volumes.
Total noninterest expense for the third quarter of 2015 was $10.6 million, compared to $10.5 million for the quarter ended June 2015 and $10.7 million for the third quarter of 2014. The increase on a linked quarter basis was primarily due to higher severance of $292 thousand, offset by various expense reductions. The higher severance expense is primarily related to a strategic initiative to align our resources with customer needs and behavior, which resulted in a reduction of branch staffing. Excluding merger-related and severance costs for 2015, and conversion and severance expenses for 2014, noninterest expense was $10.05 million in the third quarter 2015, a decrease of $254 thousand on a linked-quarter basis and an increase of $175 thousand from the third quarter in 2014. The decline on a linked quarter basis was attributable to reductions in numerous expense line items. The increase from the third quarter of 2014 was primarily attributable to higher benefit expense due to an increase in health care costs of $220 thousand and reduced pension income of $213 thousand. These increases were partially offset by lower marketing expense of $275 thousand. The 2014 third quarter expense included costs for a new marketing campaign.
Merchants Bancshares' effective tax rate was 19% and 20% for the three and nine months ended September 30, 2015, respectively, compared to 20% on a linked quarter basis, and 23% for the three and nine months ended September 30, 2014. The effective tax rate declined from the third quarter 2014 due to higher tax credits.
Michael R. Tuttle, Merchants Bancshares, Inc.'s President and Chief Executive Officer, Geoffrey R. Hesslink, Merchants Bank's President and Chief Executive Officer, and Thomas J. Meshako, Merchants Bancshares, Inc.'s Senior Vice President and Chief Financial Officer, will host a conference call to discuss these earnings results, business and outlook at 10:00 a.m. Eastern Time on Tuesday, October 27, 2015. Interested parties may participate in the conference call by dialing U.S. number (866) 218-2405, Canada number (855) 669-9657, or international number (412) 902-4124. The title of the call is Merchants Bancshares, Inc. Q3 2015 Earnings Call. Participants are asked to call a few minutes prior to register. A replay will be available until 12:01 a.m. Eastern Time on Wednesday, November 4, 2015. 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 10057202. Additionally, a recording of the call will be available on Merchants website at 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 $527 thousand for the three months ended September 30, 2015, $504 thousand on a linked quarter basis and $509 thousand for the same period in 2014. An additional non-GAAP financial measure Merchants Bancshares uses is the tangible equity ratio. Because Merchants Bancshares has no intangible assets, the tangible equity is the same as the book equity. 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.
Information About the Pending Merger Transaction
Neither this document nor any statements contained herein constitutes an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities.
Merchants' proposed acquisition of NUVO Bank & Trust Company ("NUVO") will be structured as a merger of NUVO with and into Merchants' wholly-owned subsidiary, Merchants Bank. Merchants has filed a Registration Statement on Form S-4 with the Securities and Exchange Commission ("SEC") that includes a prospectus of Merchants, which also constitutes a proxy statement of NUVO for a special meeting of shareholders held on September 30, 2015 at which the merger was approved. Investors and security holders are urged to read the registration statement and the proxy statement/prospectus, as well as other documents filed by Merchants with the SEC, because they contain important information about the merger and the parties to the transaction. You may obtain a free copy of the proxy statement/prospectus and other related documents filed by Merchants with the SEC at the SEC's website at www.sec.gov. You may also obtain a free copy of the proxy statement/prospectus, as well as other filings containing information about Merchants on its website, at www.mbvt.com.
In addition, copies of the proxy statement/prospectus can be obtained without charge by directing a request to Merchants Bancshares, Inc., 275 Kennedy Drive, South Burlington, VT 05402, Attention: Investor Relations, (802) 865-1807.
Cautionary Note Regarding Forward-Looking Statements
This document contains statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and this Cautionary Note is included for purposes of complying with these safe harbor provisions. Readers should not place undue reliance on such forward-looking statements, which speak only as of the date made. These forward-looking statements are based on current plans and expectations, which are subject to a number of risk factors and uncertainties that could cause future results to differ materially from historical performance or future expectations. These differences may be the result of various factors, including, among others: (1) failure of the parties to the merger to satisfy the closing conditions in the merger agreement in a timely manner or at all; (2) failure to obtain all required regulatory approvals for the merger; (3) disruptions to the parties' businesses as a result of the announcement and pendency of the merger; (4) costs or difficulties related to the integration of the business following the merger; (5) changes in general, national or regional economic conditions; (6) the risk that the anticipated benefits and cost savings from the transaction may not be fully realized or may take longer than expected to realize; (7) changes in loan default and charge-off rates; (8) changes in interest rates or credit availability; (9) changes in government regulation; (10) changes in levels of income and expense in non-interest income and expense related activities; and (11) competition and its effect on pricing, spending, third-party relationships and revenues. The foregoing list should not be construed as exhaustive, and Merchants undertakes no obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements, or to reflect the occurrence of anticipated or unanticipated events or circumstances.
For additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements, please refer to the filings by Merchants with the SEC, including its periodic and current reports, and to the proxy statement/prospectus included in Merchants' Registration Statement on Form S-4, which are available on the SEC's website, at www.sec.gov.
Contact: Jodi L. Bachand, Merchants Bank, at (802) 865-1807
Merchants Bancshares, Inc.
Financial Highlights (unaudited)
(Dollars in thousands except share and per share data)
September 30, June 30, December 31 September 30,
------------- -------- ----------- -------------
2015 2015 2014 2014
---- ---- ---- ----
Balance Sheets - Period End
Total assets $1,818,341 $1,675,888 $1,723,464 $1,647,586
Cash and due from banks 21,541 26,721 23,745 27,283
Interest earning cash and other short-term investments 89,918 13,924 130,714 92,374
Investments-available for sale, taxable 282,083 259,556 203,473 186,049
Investments-held to maturity, taxable 123,929 129,312 138,421 142,110
Loans 1,257,932 1,203,655 1,182,334 1,156,663
Allowance for loan losses ("ALL") 12,210 12,162 11,833 12,019
Net loans 1,245,722 1,191,493 1,170,501 1,144,644
Federal Home Loan Bank ("FHLB") stock 4,378 4,378 4,378 4,378
Bank premises and equipment, net 15,019 15,230 15,492 15,922
Investment in real estate limited partnerships 5,982 5,923 5,196 5,511
Bank owned life insurance 10,492 10,432 10,311 10,237
Other assets 19,277 18,919 21,233 19,078
Non-interest bearing deposits 575,492 572,169 566,366 544,425
Savings, interest bearing checking and money market accounts 620,224 575,524 530,722 525,680
Time deposits 191,757 199,132 211,684 233,976
Total deposits 1,387,473 1,346,825 1,308,772 1,304,081
Securities sold under agreement to repurchase, short-term 267,794 169,959 258,464 188,157
Other long-term debt 2,258 2,279 2,320 2,341
Junior subordinated debentures issued to unconsolidated subsidiary trust 20,619 20,619 20,619 20,619
Other liabilities 7,551 7,231 7,468 6,644
Shareholders' equity 132,646 128,975 125,821 125,744
Balance Sheets - Quarter-to-Date Averages
Total assets $1,759,743 $1,731,063 $1,692,286 $1,642,390
Cash and due from banks 26,049 23,663 26,476 27,871
Interest earning cash and other short-term investments 52,795 66,247 124,913 72,400
Investments-available for sale, taxable 264,633 243,032 196,557 191,771
Investments-held to maturity, taxable 126,549 131,966 140,339 144,510
Loans 1,245,861 1,220,418 1,163,776 1,162,236
Allowance for loan losses 12,223 12,075 12,079 12,090
Net loans 1,233,638 1,208,343 1,151,697 1,150,146
FHLB stock 4,378 4,378 4,378 4,883
Bank owned life insurance 10,456 10,395 10,270 10,190
Other assets 41,245 43,039 37,657 40,618
Non-interest bearing deposits 586,773 574,660 558,960 475,101
Savings, interest bearing checking and money market accounts 613,337 576,038 529,189 612,811
Time deposits 195,044 202,050 220,114 247,297
Total deposits 1,395,154 1,352,748 1,308,263 1,335,209
Short-term borrowings 9,649 6,099 - 96
Securities sold under agreement to repurchase, short-term 195,410 213,436 228,080 152,451
Other long-term debt 2,265 2,286 2,327 2,348
Junior subordinated debentures issued to unconsolidated subsidiary trust 20,619 20,619 20,619 20,619
Other liabilities 7,388 7,833 7,139 7,250
Shareholders' equity 129,258 128,043 125,858 124,417
Earning assets 1,694,216 1,669,217 1,629,963 1,575,801
Interest bearing liabilities 1,036,324 1,014,429 1,000,329 1,035,622
Ratios and Supplemental Information - Period End
Book value per share $20.93 $20.35 $19.89 $19.86
Common Equity Tier 1 13.83% 13.55% N/A N/A
Tier I leverage ratio 8.93% 8.95% 8.76% 8.95%
Total risk-based capital ratio 17.10% 16.82% 16.95% 17.29%
Tangible capital ratio (1) 7.29% 7.70% 7.30% 7.63%
Period end common shares outstanding 6,338,158 6,336,408 6,327,226 6,329,958
Credit Quality - Period End
Nonperforming loans ("NPLs") $1,404 $1,387 $791 $732
Nonperforming assets ("NPAs") $1,404 $1,387 $791 $732
NPLs as a percent of total loans 0.11% 0.12% 0.07% 0.06%
NPAs as a percent of total assets 0.08% 0.08% 0.05% 0.04%
ALL as a percent of NPLs 870% 877% 1496% 1642%
ALL as a percent of total loans 0.97% 1.01% 1.00% 1.04%
(1) The tangible capital ratio is calculated by dividing tangible equity by tangible assets. Because we have no intangible assets, our tangible shareholder's equity is the same as our shareholder's equity.
For the Nine Months Ended
September 30, September 30,
------------- -------------
2015 2014
---- ----
Balance Sheets - Year-to-Date Averages
Total assets $1,736,523 $1,659,369
Cash and due from banks 25,066 27,646
Interest earning cash and other short-term investments 73,630 64,328
Investments-available for sale, taxable 243,049 208,868
Investments-held to maturity, taxable 131,603 145,664
Loans 1,218,067 1,166,197
Allowance for loan losses 12,065 12,138
Net loans 1,206,002 1,154,059
FHLB stock 4,378 6,258
Bank owned life insurance 10,395 10,110
Other assets 42,400 42,436
Non-interest bearing deposits 581,351 337,546
Savings, interest bearing checking and money market accounts 577,006 715,869
Time deposits 201,601 271,062
Total deposits 1,359,958 1,324,477
Short-term borrowings 5,285 283
Securities sold under agreement to repurchase, short-term 212,859 181,002
Other long-term debt 2,286 2,369
Junior subordinated debentures issued to unconsolidated subsidiary trust 20,619 20,619
Other liabilities 7,640 8,204
Shareholders' equity 127,876 122,415
Earning assets 1,670,727 1,591,315
Interest bearing liabilities 1,019,656 1,191,204
For the Three Months Ended For the Nine Months Ended
-------------------------- -------------------------
September 30, June 30, September 30, September 30, September 30,
------------- -------- ------------- ------------- -------------
2015 2015 2014 2015 2014
---- ---- ---- ---- ----
Operating Results
Interest income
Interest and fees on loans $11,055 $10,800 $10,642 $32,478 $32,160
Interest and dividends on investments $1,961 $1,913 $1,885 $5,784 6,145
Interest on interest earning deposits with banks and other short-term investments 25 59 37 157 110
Total interest and dividend income 13,041 12,772 12,564 38,419 38,415
Interest expense
Savings, interest bearing checking and money market accounts 354 354 370 1,075 1,283
Time deposits $100 thousand and greater 120 123 155 365 503
Other time deposits 198 200 278 610 855
Total Deposits 672 677 803 2,050 2,641
Securities sold under agreement to repurchase and other short-term borrowings 97 151 62 403 241
Long-term debt 199 199 201 595 598
Total interest expense 968 1,027 1,066 3,048 3,480
Net interest income 12,073 11,745 11,498 35,371 34,935
Provision for credit losses 150 100 - 250 150
Net interest income after provision for credit losses 11,923 11,645 11,498 35,121 34,785
Noninterest income
Trust division income 886 885 856 2,666 2,537
Net, debit card income 796 812 678 2,301 2,014
Overdraft income 548 333 639 1,327 1,919
Service charges on deposits 390 378 331 1,108 977
Gain (losses) on investment securities, net - - (37) - 106
Gain (losses) on sale of other assets - - - - (35)
Other noninterest income 829 345 409 1,470 1,217
Total noninterest income 3,449 2,753 2,876 8,872 8,735
Noninterest expense
Compensation and benefits 5,508 5,190 5,145 15,746 14,906
Occupancy expense 1,036 1,049 1,064 3,228 3,296
Equipment expense 726 732 754 2,224 2,151
Telephone expense 206 186 223 609 686
Legal and professional fees 414 537 490 1,394 1,440
Mobile & internet banking 399 410 363 1,195 1,062
Core / Item processing 450 433 415 1,289 1,338
Marketing expenses 148 137 423 437 924
State franchise taxes 404 404 340 1,094 1,096
FDIC insurance 218 217 218 653 651
Conversion costs - - 442 - 830
Merger costs 215 143 - 363 -
Other noninterest expense 867 1,043 848 2,847 2,594
Total noninterest expense 10,591 10,481 10,725 31,079 30,974
Income before provision for income taxes 4,781 3,917 3,649 12,914 12,546
Provision for income taxes 925 801 843 2,606 2,923
Net income $3,856 $3,116 $2,806 $10,308 $9,623
Ratios and Supplemental Information
Weighted average common shares outstanding 6,337,778 6,331,487 6,329,081 6,332,663 6,324,759
Weighted average diluted shares outstanding 6,349,086 6,345,960 6,344,834 6,345,554 6,343,438
Basic earnings per common share $0.61 $0.49 $0.44 $1.63 $1.52
Diluted earnings per common share $0.61 $0.49 $0.44 $1.62 $1.52
Return on average assets 0.88% 0.72% 0.68% 0.79% 0.77%
Return on average shareholders' equity 11.93% 9.73% 9.02% 10.75% 10.48%
Average yield on loans 3.69% 3.72% 3.81% 3.73% 3.86%
Average yield on investments 1.98% 2.02% 2.19% 2.04% 2.28%
Average yield of earning assets 3.19% 3.20% 3.29% 3.20% 3.36%
Average cost of interest bearing deposits 0.33% 0.35% 0.37% 0.35% 0.36%
Average cost of borrowed funds 0.52% 0.58% 0.60% 0.55% 0.55%
Average cost of interest bearing liabilites 0.37% 0.40% 0.41% 0.40% 0.39%
Net interest rate spread 2.82% 2.80% 2.88% 2.80% 2.97%
Net interest margin 2.96% 2.95% 3.03% 2.95% 3.07%
Net interest income on a fully taxable equivalent basis $12,601 $12,250 $12,007 $36,906 $36,502
Net charge-offs (recoveries) to Average Loans 0.00% (0.01)% 0.02% 0.01% 0.01%
Net charge-offs (recoveries) $43 $(27) $48 $67 $120
Efficiency ratio (1) 64.09% 65.42% 64.10% 64.12% 63.26%
(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.
Merchants Bancshares, Inc.
Average Balance Sheets and Average Rates
Three Months Ended
September 30, 2015 June 30, 2015
------------------ -------------
Interest Interest
Average Income/ Average Average Income/ Average
(In thousands, fully
taxable equivalent) Balance Expense Rate Balance Expense Rate
------- ------- ---- ------- ------- ----
ASSETS:
Loans, including fees on
loans $1,245,861 $11,583 3.69% $1,220,418 $11,305 3.72%
Investments 395,560 1,961 1.98% 379,376 1,913 2.02%
Interest-earning deposits
with banks and other
short-term investments 52,795 25 0.19% 66,247 59 0.36%
Total interest earning
assets 1,694,216 $13,569 3.19% 1,666,041 $13,277 3.20%
--------- ------- ---- --------- ------- ----
Allowance for loan losses (12,223) (12,075)
Cash and due from banks 26,049 23,663
Bank premises and
equipment, net 15,142 15,561
Bank owned life insurance 10,456 10,395
Other assets 26,103 27,478
Total assets $1,759,743 $1,731,063
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest-bearing deposits:
Savings, interest bearing
checking and money market
accounts $613,337 $354 0.23% $576,038 $354 0.25%
Time deposits 195,044 318 0.65% 202,050 323 0.64%
Total interest bearing
deposits 808,381 672 0.33% 778,088 677 0.35%
------- --- ---- ------- --- ----
Short-term borrowings 9,649 8 0.33% 6,099 5 0.34%
Securities sold under
agreements to repurchase,
short-term 195,410 89 0.18% 213,436 146 0.27%
Other long-term debt 2,265 12 2.01% 2,286 12 2.04%
Junior subordinated
debentures issued to
unconsolidated subsidiary
trust 20,619 187 3.63% 20,619 187 3.70%
Total borrowed funds 227,943 296 0.52% 242,439 350 0.58%
------- --- ---- ------- --- ----
Total interest bearing
liabilities 1,036,324 $968 0.37% 1,020,527 $1,027 0.40%
--------- ---- ---- --------- ------ ----
Noninterest bearing
deposits 586,773 574,660
Other liabilities 7,388 7,833
Shareholders' equity 129,258 128,043
Total liabilities and
shareholders' equity $1,759,743 $1,731,063
========== ==========
Net interest earning assets $657,893 $645,513
======== ========
Net interest income (fully taxable equivalent) $12,601 $12,250
------- -------
Tax equivalent adjustment (527) (504)
Net interest income $12,073 $11,746
======= =======
Net interest rate spread 2.82% 2.80%
==== ====
Net interest margin 2.96% 2.95%
==== ====
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SOURCE Merchants Bancshares, Inc.
