Exhibit 99.1 |
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For Release: August 2, 2005 |
Contact: Lisa Razo |
(802) 865-1838 |
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Merchants Bancshares, Inc. Announces 2005 Second Quarter Results |
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SOUTH BURLINGTON, VT - Merchants Bancshares, Inc. (NASDAQ: MBVT), the parent company of Merchants Bank, today announced net income of $3.06 million, or diluted earnings of 48 cents per share, for the quarter ended June 30, 2005. This compares with net income of $2.84 million, or diluted earnings per share of 45 cents for the quarter ended June 30, 2004. The return on average assets was 1.15% and the return on average equity was 18.89% for the second quarter of 2005, compared to 1.15% and 12.96%, respectively, for the second quarter of 2004.Merchants declared a dividend on July 21, 2005, of 27 cents per share payable August 18, 2005, to shareholders of record as of August 4, 2005. For more information on the quarter please refer to Merchants' quarterly Form 10-Q, which will be filed no later than August 3 and is available on the SEC website at www.sec.gov. |
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Mr. Joseph Boutin, President and Chief Executive Officer, Mr. Michael Tuttle, Chief Operating Officer and Ms. Janet Spitler, Chief Financial Officer, will host a conference call to discuss these earnings results at 9:00 a.m. Eastern Time on Friday August 5, 2005. Interested parties may participate in the conference call by dialing (800) 230-1085; the title of the call isEarnings Release Conference Call for Merchants Bancshares, Inc. Participants are asked to call a few minutes prior to the conference in order to register. A replay will be available through Friday August 12, 2005. The U.S. replay dial-in number is (800) 475-6701. The replay access code is 750849. |
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The mission of Merchants Bank is to provide best-in-class community banking services in the state of Vermont. This commitment is fulfilled through a community, branch-based system that includes 35 bank offices throughout Vermont, employees dedicated to quality customer service, and innovative banking products such as Free Checking for LifeÒ , MoneyLYNXÒ money market accounts, and CommerceLYNXÒ business banking products. Merchants Bank also includes a trust and investment division, known as Merchants Trust Company, serving individuals and institutions. For more information about Merchants Bank visit our website at www.mbvt.com. Merchants' stock is traded on the NASDAQ National Market system under the symbol MBVT. Member FDIC. |
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Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements reflect Merchants' current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause Merchants' actual results to differ significantly from those expressed in any forward-looking statement. Forward-looking statements should not be relied on since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond Merchants' control and which could materially affect actual results. The factors that could cause actual results to differ materially from current expectations include changes in general economic conditions in Vermont, changes in interest rates, changes in competitive product and pricing pressures among financial institutions within Merchants' markets, and changes in the financial condition of Merchants' borrowers. The forward-looking statements contained herein represent Merchants' judgment as of the date of this report, and Merchants cautions readers not to place undue reliance on such statements. For further information, please refer to Merchants' reports filed with the Securities and Exchange Commission. |
Merchants Bancshares, Inc. |
Financial Highlights |
For the period ended June 30, 2005 |
(In thousands except share and per share data) |
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| | 06/30/05 | | 12/31/04 | | 06/30/04 | | 12/31/03 |
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Balance Sheets - Period End | | | | | | | |
Total assets | $1,054,435 | | $1,032,405 | | $1,033,186 | | $969,902 |
Loans | 595,176 | | 584,332 | | 589,108 | | 568,997 |
Allowance for loan losses ("ALL") | 7,497 | | 7,512 | | 7,999 | | 7,954 |
Net loans | 587,679 | | 576,820 | | 581,109 | | 561,043 |
Investment securities | 388,733 | | 376,547 | | 377,564 | | 340,337 |
Other assets | 78,023 | | 79,038 | | 74,513 | | 68,522 |
Deposits | 837,942 | | 834,164 | | 816,756 | | 808,083 |
Short-term borrowings | 41,957 | | 57,374 | | 46,153 | | 57,058 |
Long-term debt | 76,594 | | 49,757 | | 63,280 | | 6,618 |
Junior subordinated debentures issued to | | | | | | | |
Unconsolidated subsidiary trust | 20,619 | | 20,619 | | -- | | -- |
Other liabilities | 11,016 | | 5,307 | | 20,206 | | 11,830 |
Shareholders' equity | 66,307 | | 65,184 | | 86,791 | | 86,313 |
Balance Sheets - Quarter-to-Date Averages | | | | | | | |
Total assets | $1,059,300 | | $1,041,944 | | $ 991,802 | | $965,247 |
Loans | 590,400 | | 586,268 | | 579,975 | | 564,421 |
Allowance for loan losses | 7,505 | | 7,862 | | 8,002 | | 8,032 |
Net loans | 582,895 | | 578,406 | | 571,973 | | 556,389 |
Investment securities, including Federal Home | | | | | | | |
Loan Bank stock | 406,871 | | 391,967 | | 348,111 | | 338,042 |
Federal funds sold, securities purchased under | | | | | | | |
agreements to resell, and interest bearing | | | | | | | |
deposits with banks | 55 | | 433 | | 2,362 | | 1,398 |
Other assets | 69,479 | | 71,138 | | 69,356 | | 69,418 |
Deposits | 839,639 | | 844,958 | | 813,943 | | 804,694 |
Short-term borrowings | 47,251 | | 45,652 | | 41,084 | | 57,962 |
Long-term debt | 80,066 | | 52,157 | | 37,379 | | 6,482 |
Junior subordinated debentures issued to | | | | | | | |
Unconsolidated subsidiary trust | 20,619 | | 3,214 | | -- | | -- |
Other liabilities | 7,006 | | 14,113 | | 11,675 | | 10,571 |
Shareholders' Equity | 64,719 | | 81,850 | | 87,721 | | 85,538 |
Interest earning assets | 997,326 | | 978,668 | | 930,448 | | 903,861 |
Interest bearing liabilities | 872,081 | | 822,601 | | 781,766 | | 760,812 |
Ratios and Supplemental Information | | | | | | | |
Book value per share | $10.53 | | $10.44 | | $13.94 | | $13.93 |
Tier I leverage ratio | 8.19% | | 8.09% | | 8.77% | | 8.70% |
Period end common shares outstanding | 6,296,640 | | 6,243,710 | | 6,226,756 | | 6,196,053 |
Credit Quality - Period End | | | | | | | |
Nonperforming loans ("NPLs") | $3,597 | | $3,336 | | $893 | | $2,212 |
Nonperforming assets ("NPAs") | 3,597 | | 3,336 | | 893 | | 2,212 |
NPLs as a percent of total loans | 0.60% | | 0.57% | | 0.15% | | 0.39% |
NPAs as a percent of total assets | 0.34% | | 0.32% | | 0.09% | | 0.23% |
ALL as a percent of NPLs | 208% | | 225% | | 896% | | 360% |
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| | For the Three Months Ended | | For the Six Months Ended |
| | June 30, | | June 30, | | June 30, | | June 30, |
| | 2005 | | 2004 | | 2005 | | 2004 |
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Operating Results | | | | | | | |
Interest income | | | | | | | |
Interest and fees on loans | $ 9,030 | | $ 8,026 | | $17,586 | | $16,066 |
Interest and dividends on investments | 4,255 | | 3,479 | | 8,477 | | 7,078 |
Total interest income | 13,285 | | 11,505 | | 26,063 | | 23,144 |
Interest expense | | | | | | | |
Deposits | 2,072 | | 1,477 | | 3,723 | | 3,056 |
Short-term borrowings | 365 | | 118 | | 716 | | 322 |
Long-term debt | 926 | | 201 | | 1,688 | | 277 |
Total interest expense | 3,363 | | 1,796 | | 6,127 | | 3,655 |
Net interest income | 9,922 | | 9,709 | | 19,936 | | 19,489 |
Provision for loan losses | -- | | -- | | -- | | -- |
Net interest income after provision for loan losses | 9,922 | | 9,709 | | 19,936 | | 19,489 |
Noninterest income | | | | | | | |
Trust Company income | 414 | | 390 | | 835 | | 768 |
Service charges on deposits | 1,126 | | 1,254 | | 2,202 | | 2,401 |
Gain (loss) on sale of investments, net | 23 | | (67) | | 84 | | (4) |
Other noninterest income | 740 | | 635 | | 1,366 | | 1,198 |
Total noninterest income | 2,303 | | 2,212 | | 4,487 | | 4,363 |
Noninterest expense | | | | | | | |
Salaries and employee benefits | 4,016 | | 3,827 | | 8,022 | | 7,762 |
Occupancy and equipment expenses | 1,563 | | 1,497 | | 3,181 | | 3,007 |
Legal and professional fees | 472 | | 540 | | 897 | | 963 |
Marketing expenses | 226 | | 304 | | 574 | | 686 |
Equity in losses of real estate limited partnerships | 420 | | 431 | | 850 | | 844 |
Other noninterest expense | 1,537 | | 1,532 | | 3,096 | | 3,046 |
Total noninterest expense | 8,234 | | 8,131 | | 16,620 | | 16,308 |
Income before income taxes | 3,991 | | 3,790 | | 7,803 | | 7,544 |
Income taxes | 934 | | 948 | | 1,846 | | 1,882 |
Net income | $3,057 | | $2,842 | | $5,957 | | $5,662 |
Ratios and Supplemental Information | | | | | | | |
Weighted average common shares outstanding | 6,316,227 | | 6,224,674 | | 6,322,872 | | 6,217,467 |
Weighted average diluted shares outstanding | 6,358,506 | | 6,288,573 | | 6,366,141 | | 6,284,865 |
Basic earnings per common share | $0.48 | | $0.46 | | $0.94 | | $0.91 |
Diluted earnings per common share | 0.48 | | 0.45 | | 0.94 | | 0.90 |
Return on average assets | 1.15% | | 1.15% | | 1.13% | | 1.14% |
Return on average shareholders' equity | 18.89% | | 12.96% | | 18.29% | | 12.91% |
Net interest rate spread | 3.80% | | 4.05% | | 3.88% | | 4.06% |
Net interest margin | 3.99% | | 4.20% | | 4.06% | | 4.21% |
Efficiency ratio (1) | 61.36% | | 61.63% | | 62.15% | | 62.27% |
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(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 June 30, 2005, the Bank had off-balance sheet liabilities in the form of standby letters of credit to customers in the amount of $8.66 million. |
