Profile: Merchants Bancshares Inc (MBVT.OQ)
20 Jan 2017
Merchants Bancshares, Inc., incorporated on April 20, 1987, is a bank holding company. The Company's subsidiary, Merchants Bank (the Bank) is a commercial bank. The Bank offers a range of deposit, loan, cash management and trust services to meet the financial needs of individual consumers, businesses and municipalities. The Bank operates approximately 30 full-service banking offices and over 40 automated teller machines (ATMs) located across the state of Vermont, and a full-service banking office in Massachusetts. Merchants Bank's trust division offers investment management, financial planning and trustee services.
The Bank offers commercial, financial and agricultural loans, municipal loans, residential real estate loans, commercial real estate loans, construction real estate loans and consumer installment loans for various personal needs, including vehicle and boat financing. As of December 31, 2015, the Bank serviced approximately $780 thousand in residential mortgage loans for investors, such as the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC), and other financial investors and government agencies. The Bank's total loans are totaled to approximately $1.41 billion.
The Bank classifies certain of its investments in debt securities as securities available for sale and securities held to maturity. The investment portfolio is used to generate interest income, manage liquidity and mitigate interest rate sensitivity. The securities available for sale include the United States Treasury Obligations, the United States Government Sponsored Enterprises (GSEs), Federal Home Loan Bank (FHLB) Obligations, Residential Real Estate Mortgage-backed Securities (Agency MBSs), Agency Commercial Mortgage Backed Securities (Agency CMBSs), Agency Collateralized Mortgage Obligations (Agency CMOs) and Asset Backed Securities (ABSs). The securities held to maturity include the United States Agency Obligations, the United States Government Sponsored Enterprises, FHLB Obligations, Agency CMOs and Agency MBSs. The Bank's investment portfolio is totaled to approximately $403.13 million.
Sources of Fund
The Bank's primary sources of funds are deposits, amortization and prepayment of loans, maturities of investment securities and other short-term investments, periodic principal repayments on mortgage-backed and other amortizing securities, advances from the Federal Home Loan Bank of Boston (FHLBB), and earnings and funds provided from operations. The deposits include demand; savings and interest bearing checking and money market accounts, and time deposits. The Company's total deposits are totaled to approximately $1.55 billion.
Merchants Bancshares Inc
275 Kennedy Dr
SOUTH BURLINGTON VT 05403-6785