Merrill Merchants Bancshares (NASDAQ:MERB)
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From Jun 2019 to Jun 2024
Edwin N. Clift, Chairman and Chief Executive Officer of Merrill
Merchants Bancshares, Inc. (the “Company”)
(Nasdaq: MERB), the parent company of Merrill Merchants Bank, reported
net income of $1.6 million for the three months ended September 30,
2006, a 13% increase over the same period last year. The Company
reported diluted earnings per share of $0.46 for the third quarter of
2006, a 12% increase over 2006’s third
quarter earnings per share of $0.41.
The Company reported net income of $4.5 million or earnings per share of
$1.26 on a fully diluted basis for the nine months ended September 30,
2006, compared to $4.1 million or earnings per share of $1.14 for the
same period last year.
Balance Sheet. The Company’s
consolidated assets were $445.0 million at September 30, 2006, an
increase of $36.9 million or 9% from the same date a year ago. Comparing
September 30, 2006 and 2005, total loans grew $19.0 million or 6%. Loans
to businesses increased 11% and consumer loans grew 26% from a year ago.
Real estate loan activity has slowed compared to 2005; however, growth
was steady with the commercial real estate portfolio increasing 4%, home
equity balances growing 11% and residential mortgages up 4%.
Construction balances decreased $4.0 million from a year ago.
Total deposits were $358.3 million at September 30, 2006 compared to
$325.0 million a year ago, representing growth of $33.3 million or 10%.
Short-term interest rate increases and stock market volatility have
spurred a migration of funds from core deposits as well as an influx of
new funds to higher yielding certificates of deposit (CDs). CDs grew
$34.9 million or 30% from a year ago. Comparing September 30, 2006 and
2005, money market balances increased $3.0 million while savings account
balances decreased $4.4 million and checking accounts declined $114,000.
Net Income. The Company’s net income
for the nine months ended September 30, 2006 amounted to $4.5 million
compared to $4.1 million for the same period in 2005, an increase of
11%. Return on assets and return on equity were 1.40% and 16.87%,
respectively, for the nine months of 2006 compared to return on assets
of 1.42% and return on equity of 16.95% for the same period in 2005.
Net income for the third quarter of 2006 was $1.6 million compared to
$1.5 million for the same period in 2005, an increase of 13%. Return on
assets and return on equity were 1.48% and 17.89%, respectively, for the
third quarter of 2006 compared to return on assets of 1.45% and return
on equity of 17.60% for the same period in 2005.
Net Interest Income. Net interest income increased $1.1 million,
or 10%, for the nine months ended September 30, 2006 to $12.7 million.
The increase was driven by $44.4 million of growth in average earning
assets for the first nine months of 2006 compared to the same period in
2005. The Company’s net interest margin
decreased to 4.12% for the nine months ended September 30, 2006,
compared to 4.22% for the same period in 2005 as the cost of funds
increased by 93 basis points while the yield on earning assets increased
71 basis points.
Net interest income increased $341,000, or 8%, for the third quarter of
2006 to $4.4 million. The increase was driven by $40.8 million of growth
in average earning assets for the third quarter of 2006 compared to the
same period in 2005. The Company’s net
interest margin for the third quarter of 2006 and 2005, was 4.21% and
4.29%, respectively.
Non-Interest Income. Non-interest income was $4.1 million for the
nine months ended September 30, 2006, an increase of $271,000 compared
to the same period in 2005. The 7% increase in non-interest income was
due to an increase in trust fees of $157,000, increases in service
charges on deposit accounts of $69,000 and an increase in investment
security gains of $49,000.
Non-interest income was $1.3 million for the third quarter of 2006, an
increase of 11% from the same period in 2005. The $134,000 increase in
non-interest income was due to growth in trust fees of 14% and an
increase in mortgage banking income of 74%.
Non-Interest Expense. Non-interest expense totaled $9.5 million
for the nine months ended September 30, 2006 compared to $8.9 million
for the same period last year. The increase in non-interest expense of
$672,000, or 8%, was due to an increase in personnel costs of 8%,
increases in occupancy, equipment and data processing expenses of 5% and
an increase in other expenses of 8%. Personnel costs increased $430,000
due to normal salary increases and additional staffing required as a
result of asset growth, and other expenses increased $165,000 due to
increases in professional fees, ATM/debit card processing expense and
postage costs.
Non-interest expense totaled $3.2 million for the third quarter of 2006
compared to $3.0 million for the same period last year. The increase in
non-interest expense of $219,000, or 7%, was due to increases in
personnel costs of $135,000 and increases in other expenses of $42,000.
Shareholders’ Equity. At September 30,
2006, shareholders’ equity totaled $37.2
million. The net increase of $3.7 million for the nine months of 2006
was attributable to net income of $4.5 million and proceeds from stock
option exercises of $176,000 less cash dividends of $1.9 million and
common stock repurchases of $89,000. In the third quarter of 2006, the
Company declared a cash dividend of $.18 per share on the Company’s
common stock. This was an increase of 16% over last year’s
third quarter dividend.
On June 17, 2004, the Board of Directors approved a fourth stock
repurchase program authorizing the Company to repurchase up to 169,995,
or 5%, of its outstanding shares of common stock. As of September 30,
2006, 25,894 shares had been repurchased under the program. During the
third quarter of 2006, the Company repurchased 3,757 shares at an
average price of $23.58 per share. Repurchases will be made from time to
time at the discretion of Company management.
The Company’s subsidiary, Merrill Merchants
Bank, is headquartered in Bangor, Maine. Merrill Merchants Bank provides
consumer, commercial, and trust and investment services through its
eleven locations in Central and Eastern Maine. The Bank is a “Preferred
Lender” of the Small Business Administration
(SBA) and was a leading SBA lender in the State of Maine in 2006.
MERRILL MERCHANTS BANCSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months
Ended
Nine Months
Ended
September 30,
September 30,
(In thousands except per share data)
2006
2005
2006
2005
Interest income
$
7,349
$
5,951
$
20,679
$
16,513
Interest expense
2,947
1,890
8,027
4,962
Net interest income
4,402
4,061
12,652
11,551
Provision for loan losses
87
106
346
300
Non-interest income
1,336
1,202
4,051
3,780
Non-interest expense
3,169
2,950
9,533
8,861
Income before income taxes
2,482
2,207
6,824
6,170
Income taxes
835
745
2,311
2,086
Net income
$
1,647
$
1,462
$
4,513
$
4,084
Per share data
Basic earnings per common share (1)
$
0.46
$
0.41
$
1.27
$
1.15
Diluted earnings per common share (1)
$
0.46
$
0.41
$
1.26
$
1.14
(1) Adjusted to reflect the 3% stock dividend in March 2006.
SELECTED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30,
December 31,
(In thousands)
2006
2005
2005
Total assets
$
444,952
$
408,031
$
417,073
Loans receivable
330,045
311,064
318,965
Allowance for loan losses
(4,214)
(4,083)
(4,086)
Loans held for sale
859
1,393
925
Investment securities
79,098
70,168
72,489
Deposits
358,281
324,995
331,414
Borrowings
44,351
44,900
47,008
Shareholders' equity
37,229
33,522
34,352
Off-Balance Sheet
Trust assets under management
381,222
358,359
365,950
Mortgage servicing portfolio
152,974
132,806
141,125
SELECTED CONSOLIDATED AVERAGE BALANCES
(Unaudited)
Three Month Period
Nine Month Period
September 30,
September 30,
(In thousands)
2006
2005
2006
2005
Total assets
$
441,724
$
401,259
$
429,807
$
383,964
Loans and loans held for sale
332,009
304,249
327,231
293,960
Investment securities
80,376
66,605
78,524
65,924
Deposits
354,393
321,817
339,260
305,692
Borrowings
45,432
42,293
50,088
42,118
Shareholders' equity
36,541
32,947
35,768
32,216
OTHER SELECTED CONSOLIDATED DATA
(Unaudited)
At or for the Three Months
At or for the Nine Months
Ended September 30,
Ended September 30,
2006
2005
2006
2005
Return on average assets (1)
1.48%
1.45%
1.40%
1.42%
Return on average equity (1)
17.89%
17.60%
16.87%
16.95%
Leverage ratio
8.32%
8.22%
8.32%
8.22%
Net interest margin (1)
4.21%
4.29%
4.12%
4.22%
Non-performing assets to total assets
0.22%
0.21%
0.22%
0.21%
Net loan charge-offs to average net loans (1)
0.07%
0.08%
0.04%
0.04%
Allowance for loan losses to total loans
1.28%
1.31%
1.28%
1.31%
Number of shares outstanding (2)
3,550,010
3,538,702
3,550,010
3,538,702
Weighted-average shares outstanding-diluted (2)
3,572,795
3,570,894
3,570,070
3,568,953
Book value per share (2)
$
10.49
$
9.47
$
10.49
$
9.47
(1) Computed on an annualized basis.
(2) Adjusted to reflect the 3% stock dividend in March 2006.
This press release and the documents incorporated by reference herein
contain certain forward-looking statements. These forward-looking
statements may be contained in this press release, quarterly and annual
filings with the Securities and Exchange Commission (the “SEC”),
the Annual Report to Shareholders, other filings with the SEC, and in
other communications by Merrill Merchants Bancshares, Inc. (the “Company”)
and its wholly-owned subsidiary, Merrill Merchants Bank (the “Bank”),
which are made in good faith pursuant to the “safe
harbor” provisions of the Private Securities
Litigation Reform Act of 1995. The words “may,”
“could,” “should,”
“would,” “believe,”
“anticipate,” “estimate,”
“expect,” “intend,”
“plan” and
similar expressions are intended to identify forward-looking statements.
In preparing these disclosures, management must make assumptions,
including, but not limited to, the level of future interest rates,
prepayments on loans and investment securities, required levels of
capital, needs for liquidity, and the adequacy of the allowance for loan
losses. These forward-looking statements may be subject to significant
known and unknown risks, uncertainties, and other factors, including,
but not limited to, those matters referred to in the preceding sentence.
Although we believe that the expectations reflected in such
forward-looking statements are reasonable, actual results may differ
materially from the results discussed in these forward-looking
statements. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The
Company undertakes no obligation to republish revised forward-looking
statements to reflect events or circumstances after the date hereof or
to reflect the occurrence of unanticipated events. You are also urged to
carefully review and consider the various disclosures made by the
Company which attempt to advise interested parties of the facts which
affect the Company's business.
Edwin N. Clift, Chairman and Chief Executive Officer of Merrill
Merchants Bancshares, Inc. (the "Company") (Nasdaq: MERB), the parent
company of Merrill Merchants Bank, reported net income of $1.6 million
for the three months ended September 30, 2006, a 13% increase over the
same period last year. The Company reported diluted earnings per share
of $0.46 for the third quarter of 2006, a 12% increase over 2006's
third quarter earnings per share of $0.41.
The Company reported net income of $4.5 million or earnings per
share of $1.26 on a fully diluted basis for the nine months ended
September 30, 2006, compared to $4.1 million or earnings per share of
$1.14 for the same period last year.
Balance Sheet. The Company's consolidated assets were $445.0
million at September 30, 2006, an increase of $36.9 million or 9% from
the same date a year ago. Comparing September 30, 2006 and 2005, total
loans grew $19.0 million or 6%. Loans to businesses increased 11% and
consumer loans grew 26% from a year ago. Real estate loan activity has
slowed compared to 2005; however, growth was steady with the
commercial real estate portfolio increasing 4%, home equity balances
growing 11% and residential mortgages up 4%. Construction balances
decreased $4.0 million from a year ago.
Total deposits were $358.3 million at September 30, 2006 compared
to $325.0 million a year ago, representing growth of $33.3 million or
10%. Short-term interest rate increases and stock market volatility
have spurred a migration of funds from core deposits as well as an
influx of new funds to higher yielding certificates of deposit (CDs).
CDs grew $34.9 million or 30% from a year ago. Comparing September 30,
2006 and 2005, money market balances increased $3.0 million while
savings account balances decreased $4.4 million and checking accounts
declined $114,000.
Net Income. The Company's net income for the nine months ended
September 30, 2006 amounted to $4.5 million compared to $4.1 million
for the same period in 2005, an increase of 11%. Return on assets and
return on equity were 1.40% and 16.87%, respectively, for the nine
months of 2006 compared to return on assets of 1.42% and return on
equity of 16.95% for the same period in 2005.
Net income for the third quarter of 2006 was $1.6 million compared
to $1.5 million for the same period in 2005, an increase of 13%.
Return on assets and return on equity were 1.48% and 17.89%,
respectively, for the third quarter of 2006 compared to return on
assets of 1.45% and return on equity of 17.60% for the same period in
2005.
Net Interest Income. Net interest income increased $1.1 million,
or 10%, for the nine months ended September 30, 2006 to $12.7 million.
The increase was driven by $44.4 million of growth in average earning
assets for the first nine months of 2006 compared to the same period
in 2005. The Company's net interest margin decreased to 4.12% for the
nine months ended September 30, 2006, compared to 4.22% for the same
period in 2005 as the cost of funds increased by 93 basis points while
the yield on earning assets increased 71 basis points.
Net interest income increased $341,000, or 8%, for the third
quarter of 2006 to $4.4 million. The increase was driven by $40.8
million of growth in average earning assets for the third quarter of
2006 compared to the same period in 2005. The Company's net interest
margin for the third quarter of 2006 and 2005, was 4.21% and 4.29%,
respectively.
Non-Interest Income. Non-interest income was $4.1 million for the
nine months ended September 30, 2006, an increase of $271,000 compared
to the same period in 2005. The 7% increase in non-interest income was
due to an increase in trust fees of $157,000, increases in service
charges on deposit accounts of $69,000 and an increase in investment
security gains of $49,000.
Non-interest income was $1.3 million for the third quarter of
2006, an increase of 11% from the same period in 2005. The $134,000
increase in non-interest income was due to growth in trust fees of 14%
and an increase in mortgage banking income of 74%.
Non-Interest Expense. Non-interest expense totaled $9.5 million
for the nine months ended September 30, 2006 compared to $8.9 million
for the same period last year. The increase in non-interest expense of
$672,000, or 8%, was due to an increase in personnel costs of 8%,
increases in occupancy, equipment and data processing expenses of 5%
and an increase in other expenses of 8%. Personnel costs increased
$430,000 due to normal salary increases and additional staffing
required as a result of asset growth, and other expenses increased
$165,000 due to increases in professional fees, ATM/debit card
processing expense and postage costs.
Non-interest expense totaled $3.2 million for the third quarter of
2006 compared to $3.0 million for the same period last year. The
increase in non-interest expense of $219,000, or 7%, was due to
increases in personnel costs of $135,000 and increases in other
expenses of $42,000.
Shareholders' Equity. At September 30, 2006, shareholders' equity
totaled $37.2 million. The net increase of $3.7 million for the nine
months of 2006 was attributable to net income of $4.5 million and
proceeds from stock option exercises of $176,000 less cash dividends
of $1.9 million and common stock repurchases of $89,000. In the third
quarter of 2006, the Company declared a cash dividend of $.18 per
share on the Company's common stock. This was an increase of 16% over
last year's third quarter dividend.
On June 17, 2004, the Board of Directors approved a fourth stock
repurchase program authorizing the Company to repurchase up to
169,995, or 5%, of its outstanding shares of common stock. As of
September 30, 2006, 25,894 shares had been repurchased under the
program. During the third quarter of 2006, the Company repurchased
3,757 shares at an average price of $23.58 per share. Repurchases will
be made from time to time at the discretion of Company management.
The Company's subsidiary, Merrill Merchants Bank, is headquartered
in Bangor, Maine. Merrill Merchants Bank provides consumer,
commercial, and trust and investment services through its eleven
locations in Central and Eastern Maine. The Bank is a "Preferred
Lender" of the Small Business Administration (SBA) and was a leading
SBA lender in the State of Maine in 2006.
-0-
*T
MERRILL MERCHANTS BANCSHARES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Nine Months
Ended Ended
September 30, September 30,
(In thousands except per share data) 2006 2005 2006 2005
------ ------ ------- -------
Interest income $7,349 $5,951 $20,679 $16,513
Interest expense 2,947 1,890 8,027 4,962
------ ------ ------- -------
Net interest income 4,402 4,061 12,652 11,551
Provision for loan losses 87 106 346 300
Non-interest income 1,336 1,202 4,051 3,780
Non-interest expense 3,169 2,950 9,533 8,861
------ ------ ------- -------
Income before income taxes 2,482 2,207 6,824 6,170
Income taxes 835 745 2,311 2,086
------ ------ ------- -------
Net income $1,647 $1,462 $ 4,513 $ 4,084
====== ====== ======= =======
Per share data
Basic earnings per common share
(1) $ 0.46 $ 0.41 $ 1.27 $ 1.15
====== ====== ======= =======
Diluted earnings per common share
(1) $ 0.46 $ 0.41 $ 1.26 $ 1.14
====== ====== ======= =======
(1) Adjusted to reflect the 3% stock dividend in March 2006.
*T
-0-
*T
SELECTED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31,
(In thousands) 2006 2005 2005
------------- --------- -----------
Total assets $ 444,952 $ 408,031 $ 417,073
Loans receivable 330,045 311,064 318,965
Allowance for loan losses (4,214) (4,083) (4,086)
Loans held for sale 859 1,393 925
Investment securities 79,098 70,168 72,489
Deposits 358,281 324,995 331,414
Borrowings 44,351 44,900 47,008
Shareholders' equity 37,229 33,522 34,352
Off-Balance Sheet
Trust assets under management 381,222 358,359 365,950
Mortgage servicing portfolio 152,974 132,806 141,125
*T
-0-
*T
SELECTED CONSOLIDATED AVERAGE BALANCES
(Unaudited)
Three Month Period Nine Month Period
September 30, September 30,
(In thousands) 2006 2005 2006 2005
-------- -------- -------- --------
Total assets $441,724 $401,259 $429,807 $383,964
Loans and loans held for sale 332,009 304,249 327,231 293,960
Investment securities 80,376 66,605 78,524 65,924
Deposits 354,393 321,817 339,260 305,692
Borrowings 45,432 42,293 50,088 42,118
Shareholders' equity 36,541 32,947 35,768 32,216
*T
-0-
*T
OTHER SELECTED CONSOLIDATED DATA
(Unaudited)
At or for the Three At or for the Nine
Months Months
Ended September 30, Ended September 30,
2006 2005 2006 2005
---------- ---------- ---------- ----------
Return on average
assets (1) 1.48% 1.45% 1.40% 1.42%
Return on average
equity (1) 17.89% 17.60% 16.87% 16.95%
Leverage ratio 8.32% 8.22% 8.32% 8.22%
Net interest margin
(1) 4.21% 4.29% 4.12% 4.22%
Non-performing assets
to total assets 0.22% 0.21% 0.22% 0.21%
Net loan charge-offs
to average net loans
(1) 0.07% 0.08% 0.04% 0.04%
Allowance for loan
losses to total loans 1.28% 1.31% 1.28% 1.31%
Number of shares
outstanding (2) 3,550,010 3,538,702 3,550,010 3,538,702
Weighted-average
shares outstanding-
diluted (2) 3,572,795 3,570,894 3,570,070 3,568,953
Book value per share
(2) $ 10.49 $ 9.47 $ 10.49 $ 9.47
(1) Computed on an annualized basis.
(2) Adjusted to reflect the 3% stock dividend in March 2006.
*T
This press release and the documents incorporated by reference
herein contain certain forward-looking statements. These
forward-looking statements may be contained in this press release,
quarterly and annual filings with the Securities and Exchange
Commission (the "SEC"), the Annual Report to Shareholders, other
filings with the SEC, and in other communications by Merrill Merchants
Bancshares, Inc. (the "Company") and its wholly-owned subsidiary,
Merrill Merchants Bank (the "Bank"), which are made in good faith
pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. The words "may," "could," "should,"
"would," "believe," "anticipate," "estimate," "expect," "intend,"
"plan" and similar expressions are intended to identify
forward-looking statements. In preparing these disclosures, management
must make assumptions, including, but not limited to, the level of
future interest rates, prepayments on loans and investment securities,
required levels of capital, needs for liquidity, and the adequacy of
the allowance for loan losses. These forward-looking statements may be
subject to significant known and unknown risks, uncertainties, and
other factors, including, but not limited to, those matters referred
to in the preceding sentence.
Although we believe that the expectations reflected in such
forward-looking statements are reasonable, actual results may differ
materially from the results discussed in these forward-looking
statements. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
The Company undertakes no obligation to republish revised
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events.
You are also urged to carefully review and consider the various
disclosures made by the Company which attempt to advise interested
parties of the facts which affect the Company's business.