Revenue during the quarter grew 6.87 percent to $16.43 million from $15.37 million in the previous year period. Net interest income for the quarter rose 14.28 percent over the prior year period to $13.80 million. Non-interest income for the quarter fell 9.22 percent over the last year period to $3.13 million.

Merchants Bancshares has made provision of $0.50 million for loan losses during the quarter, up 233.33 percent from $0.15 million in the same period last year.

Net interest margin improved 7 basis points to 3.03 percent in the quarter from 2.96 percent in the last year period. Efficiency ratio for the quarter improved to 59.80 percent from 64.09 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.

Geoffrey Hesslink, Merchants Bancshares, Inc.s president and chief executive officer commented, "We look forward to becoming part of Community Bank System, Inc. as it enables us to further enhance the outstanding service and commitment that our customers and communities have come to expect from Merchants Bank. I thank our management team and talented employees for their continued focus on achieving our strategic priorities. We remain committed to delivering exceptional service to our customers."

Deposits stood at $1,503.84 million as on Sep. 30, 2016, up 8.39 percent compared with $1,387.47 million on Sep. 30, 2015.

Noninterest-bearing deposit liabilities were $632.85 million or 42.08 percent of total deposits on Sep. 30, 2016, compared with $575.49 million or 41.48 percent of total deposits on Sep. 30, 2015.

Investments stood at $395 million as on Sep. 30, 2016, down 4.13 percent or $17 million from year-ago. Shareholders equity was at $158.29 million as on Sep. 30, 2016.

Return on average assets moved down 8 basis points to 0.80 percent in the quarter from 0.88 percent in the last year period. At the same time, return on average equity decreased 84 basis points to 9.91 percent in the quarter from 10.75 percent in the last year period.

Nonperforming assets moved up 455.18 percent or $3.47 million to $4.24 million on Sep. 30, 2016 from $0.76 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.21 percent in the quarter, up from 0.04 percent in the last year period.

Tier-1 leverage ratio stood at 8.84 percent for the quarter, down from 8.93 percent for the previous year quarter. Book value per share was $22.99 for the quarter, up 9.84 percent or $2.06 compared to $20.93 for the same period last year.