Merchants Bancshares (MBVT), the parent company of Merchants Bank, has reported a 15.20 percent drop in profit for the quarter ended Jun. 30, 2014. The company earned $3.41 million or $0.54 a share in the second quarter compared with $4.02 million or $0.64 a share, a year ago. Analysts on average had predicted net income of $0.53 a share.

Revenue during the second-quarter slipped 3.40 percent to $14.56 million from $15.08 million in the last year period.

Net interest income for the quarter dropped 5.66 percent over the prior year period to $11.61 million.

Non-interest income for the quarter rose 6.65 percent over the last year period to $2.95 million.

Merchants Bancshares has made provision of $0.05 million for loan losses during the quarter, which was lower by 66.67 percent from $0.15 million in the same period last year.

"We are making a significant investment in the company with our core conversion project that will negatively impact results for the next quarter, though with expected benefits starting to be seen in the fourth quarter and into 2015," commented Michael R. Tuttle, our president and CEO.

Total assets stood at $1608.94 million as on Jun. 30, 2014, down 0.67 percent compared with $1619.81 million on Jun. 30, 2013.

While total liabilities stood at $1483.98 million as on Jun. 30, 2014, down 1.38 percent from $1504.79 million on Jun. 30, 2013.

Net loans stood at $1114.47 million as on Jun. 30, 2014, up 2.05 percent compared with $1092.12 million on Jun. 30, 2013.

Deposits stood at $1310.70 million as on Jun. 30, 2014, down 0.14 percent compared with $1312.52 million on Jun. 30, 2013.

Equity capital of Merchants Bancshares increased 8.64 percent to $124.96 million as on Jun. 30, 2014 compared with $115.02 million on Jun. 30, 2013.

Shares of Merchants Bancshares gained $0.04 or 0.14 percent to settle at $29.50 on Tuesday.