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Merchants Bancshares Inc. Reports Operating Results (10-Q)

November 05, 2010 | About:
10qk

10qk

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Merchants Bancshares Inc. (MBVT) filed Quarterly Report for the period ended 2010-09-30.

Merchants Bancshares Inc. has a market cap of $160.7 million; its shares were traded at around $26.24 with a P/E ratio of 10.1 and P/S ratio of 2.1. The dividend yield of Merchants Bancshares Inc. stocks is 4.4%. Merchants Bancshares Inc. had an annual average earning growth of 6% over the past 10 years.

Highlight of Business Operations:

Net income was $4.50 million and $12.92 million for the quarter and nine months ended September 30, 2010, respectively. This compares with net income of $3.71 million and $8.68 million for the same periods in 2009, respectively. The return on average assets was 1.25% and 1.21% for the quarter and nine months ended September 30, 2010, respectively, compared to 1.07% and 0.85% for the same periods in 2009, respectively. The return on average equity was 18.39% and 18.14% for the quarter and nine months ended September 30, 2010, respectively, and was 17.37% and 13.93% for the same periods in 2009, respectively.

Merchants taxable equivalent net interest income for the third quarter of 2010 was $12.82 million, and was $38.13 million for the first nine months of 2010 compared to $12.79 million for the third quarter of 2009 and $37.55 million for the first nine months of 2009.

Merchants recorded a $400 thousand negative provision for credit losses for the third quarter of 2010 and recorded a $200 thousand provision for credit losses for the first nine months of 2010 compared to $600 thousand for the third quarter of 2009 and $3.50 million for the first nine months of 2009.

Merchants recognized $685 thousand in pre-tax security gains during the third quarter of 2010 and $1.90 million for the first nine months of 2010 compared to $261 thousand for the third quarter of 2009 and $56 thousand for the first nine months of 2009. Merchants also recognized $89 thousand in impairment losses during the third quarter of 2010 related to the sale of four securities at small losses just after the end of the quarter. Year to date impairment losses total $169 thousand as a result of an $80 thousand OTTI charge taken during the first quarter of 2010 combined with the sales just mentioned.

Loans were $906.91 million at September 30, 2010, a decrease of $11.63 million compared to December 31, 2010.

This discussion should be read in conjunction with the tables on the following three pages. Merchants taxable equivalent net interest income for the third quarter of 2010 was $12.82 million, and was $38.13 million for the first nine months of 2010 compared to $12.79 million for the third quarter of 2009 and $37.55 million for the first nine months of 2009. Merchants taxable equivalent net interest margin decreased to 3.70% for the third quarter of 2010 compared to 3.77% for the third quarter of 2009 and decreased by six basis points to 3.75% for the first nine months of 2010 from 3.81% for the same period in 2009.

Read the The complete Report

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10qk
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