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

August 07, 2012 | About:
10qk

10qk

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Merchants Bancshares Inc. (MBVT) filed Quarterly Report for the period ended 2012-06-30.

Merchants Bancshares,inc. has a market cap of $168.4 million; its shares were traded at around $27.33 with a P/E ratio of 11.1 and P/S ratio of 2.5. The dividend yield of Merchants Bancshares,inc. stocks is 4.1%. Merchants Bancshares,inc. had an annual average earning growth of 4.1% over the past 10 years.

Highlight of Business Operations:

This discussion should be read in conjunction with the tables on the following three pages. Our taxable equivalent net interest income was $12.85 million and $25.82 million for the three and six months ended June 30, 2012, respectively, compared to $12.95 million and $25.11 million for the same periods in 2011, and $12.97 million for the first quarter of 2012. Our taxable equivalent net interest margin decreased 35 basis points to 3.27% for the second quarter of 2012 compared to 3.62% for the same period in 2011, and decreased 22 basis points to 3.31% for the six months ended June 30, 2012 compared to 3.53% for the same period in 2011. The net interest margin decreased seven basis points for the second quarter of 2012 compared to the first quarter of 2012. Our continued growth in earning assets has helped to offset margin compression and allowed us to increase net interest income for the first half of 2012 compared to the first half of 2011. Average earning assets for the first three and six months of 2012 were $1.58 billion and $1.57 billion, respectively, an increase of $146.07 million and $137.98 million over the same periods in 2011, and an increase of $19.33 million over the first quarter of 2012.

Noninterest Income: Total noninterest income increased $603 thousand to $3.16 million for the second quarter of 2012 compared to 2011, and increased $871 thousand for the first half of 2012 compared to 2011. During the second quarter of 2012, we recognized a gain of $334 thousand on the sale of the mineral rights that we owned on properties in Oklahoma which we acquired in a bank acquisition in 1971. We recognized pre-tax security gains of $372 thousand and $448 thousand during the three and six months ended June 30, 2012. Excluding net gains on security sales, and the gain on the sale of the mineral rights, noninterest income increased $34 thousand to $2.46 million for the second quarter of 2012 compared to $2.42 million for the second quarter of 2011, and increased $216 thousand to $4.74 million for the first six months of 2012 compared to $4.53 million for the first six months of 2011. The increase for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011 is primarily a result of increases in net debit card income and Trust division income, offset in part by decreased overdraft fee revenue. Trust assets under management have continued to grow through 2012 and now total $518 million.

Read the The complete Report

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