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8-K - BODY OF FORM 8-K - MERCHANTS BANCSHARES INCd78235_mer8k.htm



Exhibit 99.1

[ex99_78235002.gif]

For Release: January 25, 2012

Contact: Lisa Razo, Merchants Bank, at (802) 865-1838


Merchants Bancshares, Inc. Announces Strong Fourth Quarter and Annual
2011 Results


SOUTH BURLINGTON, VT Merchants Bancshares, Inc. (NASDAQ: MBVT), the parent company of Merchants Bank, today announced net income of $14.62 million, or diluted earnings per share of $2.35 for the year ended December 31, 2011, compared to earnings of $15.46 million, or diluted earnings per share of $2.51 for the year ended December 31, 2010. Earnings for the fourth quarter of 2011 were $3.71 million, or diluted earnings per share of $0.59. This compares with net income of $2.54 million, or diluted earnings per share of $0.41 for the fourth quarter of 2010. The return on average assets was 0.95% and 0.97% for the quarter and year ended December 31, 2011, respectively, compared to 0.68% and 1.07% for the same periods in 2010. The return on average equity was 13.77% and 14.11% for the quarter and year ended December 31, 2011, respectively, compared to 10.31% and 16.18% for the same periods in 2010. We previously announced the declaration of a dividend of $0.28 per share, payable February 16, 2012, to shareholders of record as of February 2, 2012. This quarter represents our 61st consecutive quarterly dividend payment and our 25th consecutive quarter at the current payout level.

“We are very pleased to report not only a very strong fourth quarter but the second most profitable year in our history. Highlights for the year include exceptional organic growth in loans, deposits and trust fees. At the same time asset quality improved throughout the year and finished at very favorable levels for both delinquencies and nonperforming assets,” commented Michael R. Tuttle, our President and Chief Executive Officer.

Total assets reached a record high of $1.61 billion at December 31, 2011, an increase of $124.23 million, or 8.3% over year end 2010. Total shareholders’ equity also reached a record high of $109.54 million at December 31, 2011. Book value per share increased $1.51 per share, or 9.4%, to $17.57 during 2011. Our capital ratios remain very strong, with a Tier 1 leverage ratio of 8.08%, a total risk-based capital ratio of 15.92% and a tangible capital ratio of 6.80%.

We also achieved a new record high in our loan portfolio. Ending loan balances at December 31, 2011 were $1.03 billion, an increase of $19.55 million from ending loan balances at September 30, 2011, and an increase of $116.83 million, or 13%, from ending loan balances of December 31, 2010.

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

(In thousands)

December 31,
2011

September 30,
2011

December 31,
2010

Commercial, financial and agricultural

$146,990

$156,043

$ 112,514

Municipal loans

101,705

97,015

67,861

Real estate loans – residential

439,818

425,620

422,981

Real estate loans – commercial

313,915

310,863

284,296

Real estate loans – construction

18,993

12,238

16,420

Installment loans

5,806

5,858

6,284

All other loans

399

439

438

Total loans

$1,027,626

$1,008,076

$ 910,794





Growth in our commercial and municipal categories was a focus for us this year and reflects the acquisition of new customers and growth within our existing customer base. Residential loan growth was concentrated in the last six months of the year and was driven by increased first mortgage refinance volume due to the very low interest rate environment.

We booked a $250 thousand provision for credit losses during the fourth quarter of 2011, compared to a negative provision of $1.95 million during the fourth quarter of 2010. The 2011 provision for credit losses was $750 thousand, compared to a negative provision of $1.75 million for 2010. Asset quality remained very strong throughout 2011; nonperforming assets totaled $2.87 million, or 0.18% of total assets, at December 31, 2011, compared to $4.30 million, or 0.29% of total assets, at December 31, 2010. Additionally, loans past due 30-89 days were $213 thousand at December 31, 2011, compared to $1.29 million at December 31, 2010. Net charge-offs for 2011 were minimal at $151 thousand, or 0.02% of total loans.

Our investment portfolio totaled $512.31 million at December 31, 2011, an increase of $45.55 million from the December 31, 2010 ending balance of $466.76 million. We sold bonds with a book value of $131.86 million during 2011 for a net pre-tax gain of $1.05 million; these trades allowed us to lock in gains on faster paying mortgage-backed securities and helped us to reduce our exposure to premium write-off in the portfolio. All but $6.11 million of the bonds in our portfolio carry some type of agency guarantee.

Total deposits also reached a record high during 2011 and ended the year at $1.18 billion, an increase of $85.68 million, or 7.8%, from balances of $1.09 billion at December 31, 2010, and an increase of $12.32 million from balances at September 30, 2011. Average balances for the fourth quarter of 2011 were $1.16 billion, an increase of $82.11 million from fourth quarter 2010 average balances of $1.08 billion. Demand deposits have shown solid growth during 2011, increasing by $56.11 million, or 39.7%, to $197.52 million at December 31, 2011 from $141.41 million at December 31, 2010. Deposits have continued to migrate away from time deposit categories during 2011. Time deposits as a percentage of total deposits have decreased from 33.5% at December 31 2010 to 29.6% at the December 31, 2011. We experienced strong growth in transaction accounts led by business and retail balances during 2011. Short-term retail repo balances ended 2011 at $262.53 million, a $37.83 million increase from December 31, 2010 attributable to new and expanded municipal banking relationships.

Our taxable equivalent net interest income was $12.92 million for the fourth quarter of 2011, and $51.30 million for the year ended December 31, 2011, compared to $12.22 million for the fourth quarter of 2010 and $50.35 million for the year ended December 31, 2010. Our taxable equivalent net interest margin decreased 24 basis points during the fourth quarter of 2011 to 3.37% from 3.61% for the third quarter of 2011, and was unchanged from the fourth quarter of 2010. The margin decreased by 14 basis points for 2011 to 3.51% from 3.65% for 2010. The most significant driver of the decreased margin has been reduced yield on both our loan and investment portfolios. The average rate earned on loans decreased 32 basis points during 2011 to 4.86%, while the average rate earned on our investment portfolio decreased 34 basis points to 2.90% during the same period. We have continued our efforts to offset decreased yields on the asset side by reducing our liability costs, as a result of which the average cost of interest bearing liabilities decreased 23 basis points during 2011 to 0.70%.

“Growth in our balance sheet allowed us to offset compression in net interest margin in the second half of 2011. We are very pleased to have increased taxable equivalent net interest income during the year,” commented Mr. Tuttle.

Total noninterest income decreased to $2.32 million for the fourth quarter of 2011 from $2.54 million for the same period in 2010; and decreased to $10.38 million for 2011 from $11.63




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million for 2010. Excluding net gains (losses) on security sales and other than temporary impairment losses, noninterest income increased slightly to $2.37 million for the fourth quarter of 2011 from $2.36 million for the fourth quarter of 2010, and decreased to $9.39 million for 2011 from $9.72 million for 2010. Trust fees increased to $622 thousand and $2.52 million for the quarter and year ended December 31, 2011, respectively, compared to $573 thousand and $2.16 million for the same periods in 2010, a result of a combination of increased sales and improved market performance. Revenue related to service charges on deposits increased slightly to $1.10 million for the fourth quarter of 2011 compared to $1.08 million for the fourth quarter of 2010. This category decreased to $4.30 million for 2011 compared to $4.93 million for 2010. The decrease is a result of legislative changes restricting overdrafts that went into effect on August 15, 2010. Net overdraft fee revenue decreased to $3.43 million for 2011 compared to $4.05 million for 2010. Net overdraft fee revenue was $879 thousand for the fourth quarter of 2011, a slight increase from $858 thousand for the fourth quarter of 2010.

Total noninterest expense decreased to $9.90 million from $13.34 million for the fourth quarter of 2011 compared to the same period in 2010; and decreased to $41.26 million from $42.43 million for 2011 compared to 2010. There were a number of increases and decreases that contributed to this overall increase.

Ø

The largest change for 2011 compared to 2010 was a result of decreased prepayment penalties in 2011 compared to 2010. During the fourth quarter of 2010 we prepaid $46.50 million in long term debt and incurred a $3.07 million prepayment penalty. There were no debt prepayments during the fourth quarter of 2010, however, we prepaid $16.00 million in long-term debt during the third quarter of 2011 and incurred prepayment penalties of $861 thousand.

Ø

Salaries, wages and benefits decreased to $4.97 million for the fourth quarter of 2011 compared to $5.38 million for the fourth quarter of 2010, a result of adjustments to expected incentive payouts in the fourth quarter of 2010. Salaries and wages were slightly higher at $20.52 million for 2011 compared to $20.50 million for 2010.

Ø

Occupancy and equipment expenses increased to $7.19 million for 2011 compared to $6.64 million for 2010 as a result of capital investments, which we expect will provide us with additional operating efficiencies and revenue enhancement opportunities.

Ø

Legal and professional fees increased to $2.81 million for 2011 compared to $2.44 million for 2010 as consultants were retained to help us explore opportunities for expense reductions and improved operating efficiencies.

Ø

FDIC insurance expense for 2011 decreased to $936 thousand from $1.42 million for 2010 as a result of new deposit insurance assessment rules that went into effect on April 1, 2011.

Ø

Other real estate owned (“OREO”) expense for 2011 was $193 thousand, compared to a negative expense of $298 thousand during 2010, a result of sales of OREO properties.

We previously announced the extension, through January 2013, of our stock buyback program, originally adopted in January 2007. Under the program we may repurchase 200,000 shares of our common stock on the open market from time to time, and have purchased 143,475 shares since the program's adoption in 2007. Although we did not repurchase any our shares during 2011, and do not expect to repurchase shares in the near future, we wanted to preserve the flexibility of an active buyback program.

Michael R. Tuttle, our President and Chief Executive Officer, Janet P. Spitler, our Chief Financial Officer and Geoffrey R. Hesslink, Executive Vice President and Senior Lender will host a conference call to discuss these earnings results at 10:00 a.m. Eastern Time on Friday, January 27, 2012. Interested parties may participate in the conference call by dialing (800) 230-




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1059; 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 noon on Friday, February 3, 2012. The U.S. replay dial-in telephone number is (800) 475-6701. The international replay telephone number is (320) 365-3844. The replay access code for both replay telephone numbers is 222040.

Merchants Bank was established in 1849 in Burlington, Vermont. Our continuing mission is to provide Vermonters with a statewide community bank that combines a strong technology platform with a genuine appreciation for local markets. We deliver this commitment through a branch-based system that includes: 34 community bank offices and 40 ATMs throughout Vermont; local community banking managers and personal bankers dedicated to high-quality customer service; online banking, phone banking, and electronic bill payment services; high-value depositing programs that feature Cash Rewards Checking, Rewards Checking for Business, business cash management, money market accounts, health savings accounts, certificates of deposit, Flexible CD, IRAs, and overdraft assurance; feature-rich loan programs including mortgages, home equity credit, vehicle loans, personal and small business loans and lines of credit; and merchant card processing. We offer a strong set of commercial and government banking solutions, delivered by experienced banking officers in markets throughout the state; these teams provide customized financing for medium-to-large companies, non-profits, cities, towns, and school districts. Merchants Trust Company provides investment management, financial planning and trustee services. Please visit www.mbvt.com for access to our information, programs, and services. Our stock is traded on the NASDAQ National Market system 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 $534 thousand and $1.93 million for the three months and year ended December 31, 2011, respectively, and $397 thousand and $1.19 million was added back for the three months and year ended December 31, 2010, 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.




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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, general, national, regional or local economic conditions which are less favorable than anticipated, including continued global recession, impacting 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, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, 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.




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Merchants Bancshares, Inc.

Financial Highlights (unaudited)

(Dollars in thousands except share and per share data)


 

12/31/11

 

09/30/11

 

12/31/10

 

09/30/10

Balance Sheets - Period End

 

 

 

 

 

 

 

Total assets

$ 1,611,869

 

$ 1,560,949

 

$ 1,487,644

 

$ 1,481,908

Loans

1,027,626

 

1,008,076

 

910,794

 

906,906

Allowance for loan losses ("ALL")

10,619

 

10,480

 

10,135

 

10,090

Net loans

1,017,007

 

997,596

 

900,659

 

896,816

Investments-taxable

512,309

 

418,543

 

466,756

 

503,332

Federal Home Loan Bank ("FHLB") stock

8,630

 

8,630

 

8,630

 

8,630

Interest earning cash and other short-term investments

27,420

 

86,438

 

62,273

 

7,239

Other assets

46,503

 

49,742

 

49,326

 

65,891

Non-interest bearing deposits

197,522

 

180,696

 

141,412

 

136,636

Savings, interest bearing checking and money market accounts

632,110

 

630,355

 

584,582

 

565,927

Time deposits

348,248

 

354,508

 

366,202

 

370,086

Securities sold under agreement to repurchase and

 

 

 

 

 

 

 

 other short-term debt

262,527

 

225,351

 

227,657

 

175,133

Securities sold under agreement to repurchase, long-term

--

 

--

 

7,500

 

54,000

Other long-term debt

22,562

 

22,581

 

31,139

 

31,158

Junior subordinated debentures issued to
   unconsolidated subsidiary trust

20,619

 

20,619

 

20,619

 

20,619

Other liabilities

18,744

 

18,839

 

9,202

 

29,236

Shareholders' equity

109,537

 

108,000

 

99,331

 

99,113

 

 

 

 

 

 

 

 

Balance Sheets - Quarter-to-Date Averages

 

 

 

 

 

 

 

Total assets

$ 1,564,335

 

$ 1,503,192

 

$ 1,488,753

 

$ 1,436,703

Loans

1,014,105

 

1,007,240

 

905,048

 

917,682

Allowance for loan losses

10,584

 

10,550

 

10,676

 

10,461

Net loans

1,003,521

 

996,690

 

894,372

 

907,221

Investments-taxable

443,713

 

366,435

 

475,046

 

416,406

FHLB stock

8,630

 

8,630

 

8,630

 

8,630

Interest earning cash and other short-term investments

53,907

 

76,887

 

48,217

 

29,683

Other assets

54,564

 

54,550

 

62,488

 

74,763

Non-interest bearing deposits

190,864

 

171,648

 

143,175

 

135,434

Savings, interest bearing checking and money market accounts

622,208

 

600,639

 

571,742

 

553,625

Time deposits

349,832

 

355,007

 

365,873

 

370,532

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

240,733

 

208,629

 

205,529

 

160,738

Securities sold under agreement to repurchase, long-term

--

 

3,995

 

38,353

 

54,000

Other long-term debt

22,569

 

27,763

 

31,145

 

31,165

Junior subordinated debentures issued to
   unconsolidated subsidiary trust

20,619

 

20,619

 

20,619

 

20,619

Other liabilities

9,783

 

9,341

 

13,621

 

13,061

Shareholders' equity

107,727

 

105,551

 

98,696

 

97,529

Interest earning assets

1,520,355

 

1,459,192

 

1,436,942

 

1,372,401

Interest bearing liabilities

1,255,961

 

1,216,652

 

1,233,261

 

1,190,679

 

 

 

 

 

 

 

 

Ratios and Supplemental Information - Period End

 

 

 

 

 

 

 

Book value per share

$        18.54

 

$        18.29

 

$        16.95

 

$        16.93

Book value per share (1)

$        17.57

 

$        17.35

 

$        16.06

 

$        16.05

Tier I leverage ratio

8.08%

 

8.26%

 

7.90%

 

8.11%

Total risk-based capital ratio

15.92%

 

15.81%

 

16.10%

 

15.87%

Tangible capital ratio (2)

6.80%

 

6.92%

 

6.68%

 

6.69%

Period end common shares outstanding (1)

6,232,783

 

6,224,886

 

6,186,363

 

6,174,524

 

 

 

 

 

 

 

 

Credit Quality - Period End

 

 

 

 

 

 

 

Nonperforming loans ("NPLs")

$         2,511

 

$        3,192

 

$        4,104

 

$        3,437

Nonperforming assets ("NPAs")

$         2,869

 

$        3,532

 

$        4,295

 

$        3,457

NPLs as a percent of total loans

0.24%

 

0.32%

 

0.45%

 

0.38%

NPAs as a percent of total assets

0.18%

 

0.23%

 

0.29%

 

0.23%

ALL as a percent of NPLs

423%

 

328%

 

247%

 

294%

ALL as a percent of total loans

1.03%

 

1.04%

 

1.11%

 

1.11%


(1)

This book value and period end common shares outstanding includes 325,703; 320,845; 327,100; and 321,776 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 in understanding our financial performance. Because we have no intangible assets, our tangible equity is the same as our book equity.




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Merchants Bancshares, Inc.

Financial Highlights (unaudited)

(Dollars in thousands except share and per share data)


 

For the Twelve Months Ended
December 31,

 

2011

 

2010

Balance Sheets - Year to-Date Averages

 

 

 

Total assets

$ 1,507,656

 

$ 1,438,730

Loans

971,003

 

912,363

Allowance for loan losses

10,432

 

10,609

Net loans

960,571

 

901,754

Investments-taxable

427,540

 

428,428

FHLB stock

8,630

 

8,630

Federal funds sold and other short-term investments

54,186

 

30,054

Other assets

56,729

 

69,864

Non-interest bearing deposits

163,090

 

129,947

Savings, interest bearing checking and money market accounts

599,297

 

548,788

Time deposits

357,847

 

374,768

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

219,976

 

174,895

Securities sold under agreement to repurchase, long-term

4,726

 

50,056

Other long-term debt

28,117

 

31,179

Junior subordinated debentures issued to
   unconsolidated subsidiary trust

20,619

 

20,619

Other liabilities

10,345

 

12,898

Shareholders' equity

103,639

 

95,580

Interest earning assets

1,461,359

 

1,379,475

Interest bearing liabilities

1,230,582

 

1,200,305





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Merchants Bancshares, Inc.

Financial Highlights (unaudited)

(Dollars in thousands except share and per share data)


 

For the Three Months Ended
December 31,

 

For the Twelve Months ended
December 31,

 

2011

 

2010

 

2011

 

2010

Operating Results

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

Interest and fees on loans

$     11,441 

 

$     11,366 

 

$     45,271 

 

$     46,041 

Interest and dividends on investments

2,949 

 

3,038 

 

12,747 

 

14,221 

Total interest and dividend income

14,390 

 

14,404 

 

58,018 

 

60,262 

Interest expense

 

 

 

 

 

 

 

Deposits

1,030 

 

1,276 

 

4,474 

 

5,614 

Short-term borrowings

523 

 

459 

 

2,205 

 

1,623 

Long-term debt

452 

 

850 

 

1,965 

 

3,870 

Total interest expense

2,005 

 

2,585 

 

8,644 

 

11,107 

Net interest income

12,385 

 

11,819 

 

49,374 

 

49,155 

Provision (credit) for credit losses

250 

 

(1,950)

 

750 

 

(1,750)

Net interest income after provision for credit losses

12,135 

 

13,769 

 

48,624 

 

50,905 

Noninterest income

 

 

 

 

 

 

 

Trust Company income

622 

 

573 

 

2,516 

 

2,163 

Service charges on deposits

1,103 

 

1,076 

 

4,298 

 

4,929 

Gain (loss) on investment securities, net

 

185 

 

1,049 

 

2,082 

Other-than-temporary impairment losses on securities

(55)

 

-- 

 

(55)

 

(169)

Equity in losses of real estate limited partnerships, net

(442)

 

(409)

 

(1,766)

 

(1,672)

Other noninterest income

1,085 

 

1,116 

 

4,338 

 

4,298 

Total noninterest income

2,315 

 

2,541 

 

10,380 

 

11,631 

Noninterest expense

 

 

 

 

 

 

 

Salaries, wages and benefits

4,973 

 

5,375 

 

20,517 

 

20,499 

Occupancy and equipment expenses

1,813 

 

1,743 

 

7,190 

 

6,635 

Legal and professional fees

713 

 

592 

 

2,811 

 

2,443 

Marketing expenses

474 

 

492 

 

1,733 

 

1,505 

State franchise taxes

314 

 

279 

 

1,265 

 

1,151 

FDIC insurance

196 

 

350 

 

936 

 

1,415 

Prepayment penalty

-- 

 

3,071 

 

861 

 

3,071 

Other real estate owned

65 

 

 

193 

 

(298)

Other noninterest expense

1,350 

 

1,434 

 

5,754 

 

6,006 

Total noninterest expense

9,898 

 

13,337 

 

41,260 

 

42,427 

Income before provision for income taxes

4,552 

 

2,973 

 

17,744 

 

20,109 

Provision for income taxes

843 

 

429 

 

3,124 

 

4,648 

Net income

$       3,709 

 

$       2,544 

 

$     14,620 

 

$     15,461 

 

 

 

 

 

 

 

 

Ratios and Supplemental Information

 

 

 

 

 

 

 

Weighted average common shares outstanding

6,229,430 

 

6,183,555 

 

6,212,187 

 

6,167,446 

Weighted average diluted shares outstanding

6,243,632 

 

6,195,206 

 

6,223,769 

 

6,171,473 

Basic earnings per common share

$         0.60 

 

$         0.41 

 

$         2.35 

 

$         2.51 

Diluted earnings per common share

$         0.59 

 

$         0.41 

 

$         2.35 

 

$         2.51 

Return on average assets

0.95%

 

0.68%

 

0.97%

 

1.07%

Return on average shareholders' equity

13.77%

 

10.31%

 

14.11%

 

16.18%

Average yield on loans

4.68%

 

5.16%

 

4.86%

 

5.18%

Average yield on investments

2.57%

 

2.48%

 

2.90%

 

3.24%

Average yield of interest earning assets

3.89%

 

4.09%

 

4.10%

 

4.45%

Average cost of interest bearing deposits

0.42%

 

0.54%

 

0.47%

 

0.61%

Average cost of borrowed funds

1.36%

 

1.76%

 

1.52%

 

1.98%

Average cost of interest bearing liabilites

0.63%

 

0.83%

 

0.70%

 

0.93%

Net interest rate spread

3.26%

 

3.26%

 

3.40%

 

3.53%

Net interest margin

3.37%

 

3.37%

 

3.51%

 

3.65%

Net interest income on a fully taxable equivalent basis

$     12,919 

 

$     12,216 

 

$     51,304 

 

$     50,348 

Net recoveries (charge-offs) to Average Loans

0.00%

 

0.21%

 

(0.02%)

 

0.09%

Net recoveries (charge-offs)

$            14 

 

$       2,084 

 

$        (151)

 

$          802 

Efficiency ratio (1)

61.55%

 

66.66%

 

62.61%

 

62.16%


(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, 2011, the Bank had off-balance sheet liabilities in the form of standby letters of credit to customers in the amount of $4.26 million.





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