Merrill Merchants Bancshares Inc

Merrill Merchants Bancshares — Shareholder Meeting (May 2006)

25 slides from Merrill Merchants Bancshares's shareholder meeting presentation, May 4, 2006

  1. Slide 1: Merrill Merchants Bancshares, Inc. Annual Meeting May 4, 2006

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Merrill Merchants Bancshares, Inc. Forward-looking statements are subject to various factors which could cause actual results to dif

  3. Slide 3: 2005 Highlights

    2005 Highlights oe e Solid growth e Record earnings performance e Number 1 SBA lender in Maine e Superior trust investment returns se

  4. Slide 4: Financial Highlights

    Financial Highlights (in millions, except per share amounts) 2005 2004 Change Assets $417.1 $368.7 13% Loans Ee he Hara 13% Deposits 331.4 299.8 11% Net Income by 4.9 16% Earnings per Share 1.66 1.40 19% Dividend per Share 0.64 0.54 19%

  5. Slide 5: Net Income

    6.0 45 3.0 Ly Net Income Compound Annual Growth Rate of 19% 1998 HD) 2000 2001 2002 2003 2004 2005

  6. Slide 6: Return on Average Assets

    1S r.0 0.5 Return on Average Assets @ Merrill @ Peer 1.47% TWH 1998 1999 2000 2001 2002 2003 2004 2005 Data Source: FFIEC Bank Holding Company Performance Report ($300-$500 million)

  7. Slide 7: Return on Average Equity

    20 1S Io Return on Average Equity @ Merrill Me Peer 17.59% | Th 1998 1999 2000 2001 2002 2003 2004 2005 Data Source: FFIEC Bank Holding Company Performance Report ($300-$500 million)

  8. Slide 8: Loan Portfolio Composition

    Loan Portfolio Composition Commercial RE Construction Residential Home Equity Consumer Commercial $319 Million

  9. Slide 9: Net Charge-Offs to Average Loans

    Net Charge-Offs to Average Loans @ Merrill Mf Peer 0.25 0.20 lll 1998 1999 2000 2001 2002 2003 2004 2005 Data Source: FFIEC Bank Holding Company Performance Report ($300-$500 million)

  10. Slide 10: Non-Performing to Total Assets

    Non-Performing to Total Assets @ Merrill @f Peer 0.700 a 0.48% 0.350 0-475 0.10 0 1998 1999 2000 2001 2002 2003 2004 2005 Data Source: FFIEC Bank Holding Company Performance Report ($300-$500 million)

  11. Slide 11: Deposit Composition

    Deposit Composition Checking Savings, MM Retail CDs National CDs $331 Million

  12. Slide 12: Deposit Market Share

    Deposit Market Share (in millions) Bangor Savings Merrill TD BankNorth Key Bank UnitedKingfield Bank of America Other Data Source: FDIC Deposits Market Share $547.2 39% 312.1 22% OWNS 14% NQ2NG 9% 92.8 7% 90.6 7% 31.3 2%

  13. Slide 13: Operating Efficiency

    Operating Efficiency @ Merrill @ Peer 70 Mt 64.7% 60 57-4 JS so 1998 1999 2000 2001 2002 2003 2004 2005 Data Source: FFIEC Bank Holding Company Performance Report ($300-$500 million)

  14. Slide 14: Trust Assets

    ‘Trust Assets (in millions) rat $366 300 200 I E : 0 1998 1999 2000 2001 2002 2003 2004 2005

  15. Slide 15: First Quarter Results

    First Quarter Results (in millions, except per share amounts) 2006 2005 Change Loans $323.5 $285.8 T 13% Deposits 332.8 294.4 T13% Net Income 1.4 eS ih) 9% Earnings per Share Mae Sain) 9% Dividend per Share 0.170 0.146 117%

  16. Slide 16: Value to Community

    Value to Community Only publicly traded company in Bangor & 150 employees ~ $5.5 million annual payroll @ Community investment @ $464,000 contributions, sponsorship, and taxes 8 10,000 hours volunteer service 2 Merrill Financial Center renovations

  17. Slide 17: Mission

    Mission ery best inve

  18. Slide 18: Merrill Merchants Bancshares, Inc.

    AA Merrill Merchants Bancshares, Inc.

  19. Slide 19: Cash Dividend

    Cash Dividend $0.64 1998 1999 2000 2001 2002 2003 2004 2005

  20. Slide 20: Share Increases - Stock Dividend

    Share Increases - Stock Dividend 15,000 11,250 7,500 3,750 ioe 0 1992 1996 1997 2/98 6/98 1999 2000 2001 2002 2003 2004 2005 2006 Eleven consecutive years of stock dividend

  21. Slide 21: Maine Peer Group Comparison

    Maine Peer Group Comparison Ist Quarter 2006 lait P/E ROE ROA Eipet Camden 2.30% 14.47 15.48% 1.18% 54.3% Union Trust) 2.44% 21.55 818% 0.62% 76.2% BHB&T 2199% 15.08) 11.16% 0.84% 73.6% FNLC BiA9% 13.84) 11.56% 1.15%) 52.6% Merrill 2.69% 16.61 15.80% 1.33% 59.5% Average 2.78% 16.31 12.44% 1.02% 63.2

  22. Slide 22: Stock Performance Comparison

    Stock Performance Comparison 450.0 FNLC MERB 337-5 Camden 225.0 BHBT Union Trust 112.5 0 2000 2001 2002 2003 2004 2005 Data Source: Bloomberg, LP, and each company’s respective proxy statement.

  23. Slide 23: Five Year Relative Stock Performance

    300% 250% 200% 150% 100% Five Year Relative Stock Performance NASD Bank & & a z % % & & X & 7, Ye, 25 iy, Mg, Pay GY 25, 2, ee > 7% 20,

  24. Slide 24: Merrill Stock Performance

    Merrill Stock Performance Initial Annual Investment Value (a2) Return Original Shareholder Oct. 1992 - 1,000 shares at $46 (adjusted basis of $3.59) $46,000 $305,996 16.5% IPO Shareholder Aug. 1998 - 1,000 shares at $12.50 (adjusted basis of $9.97) (a) Market Value at 12/31/05 plus cash dividends $1

  25. Slide 25: Merrill Merchants Bancshares, Inc.

    AA Merrill Merchants Bancshares, Inc.

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