Attached files
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| 8-K - BANK OF MARIN BANCORP 8-K 1-24-2011 - Bank of Marin Bancorp | form8k.htm |
EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
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CONTACT: Sandy Pfaff
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415-459-8800
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sandy@pfaffpr.com
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BANK OF MARIN BANCORP REPORTS RECORD ANNUAL EARNINGS OF $13.6 MILLION
DEMAND DEPOSITS GREW 22.4% OVER A YEAR AGO
NOVATO, CA, January 24, 2011 – Bank of Marin Bancorp (“Bancorp”, NASDAQ: BMRC) announced 2010 annual earnings of $13.6 million, an increase of $787 thousand, or 6.2% from $12.8 million a year ago. Diluted earnings per share for the year ended December 31, 2010 totaled $2.55, up $0.36 from $2.19 in the prior year.
2010 fourth quarter earnings totaled $3.9 million, an increase of $549 thousand, or 16.3%, from $3.4 million in the third quarter of 2010, and an increase of $1.1 million, or 39.5%, from $2.8 million in the fourth quarter of 2009. Diluted earnings per share increased to $0.73 from $0.63 in the third quarter of 2010 and $0.53 in the fourth quarter of 2009.
“We are pleased to end the year with record earnings,” said Russell A. Colombo, President and CEO. “Earnings growth reflects a lower level of credit losses, continued focus on cost controls and loan growth in our two newest markets, San Francisco and Santa Rosa.”
Bancorp also provided the following highlights on its operating and financial performance for the fourth quarter of 2010:
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·
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Deposits grew $71.7 million, or 7.6%, over a year ago. Demand deposits grew $51.6 million or 22.4% over a year ago and comprised 27.8% of total deposits at December 31, 2010.
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·
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Credit quality remains solid with a modest level of non-performing loans at 1.37% of loans. Net charge-offs in the fourth quarter of 2010 decreased to $682 thousand from $1.2 million in the prior quarter and $3.0 million in the same quarter a year ago. The provision for loan losses of $1.1 million decreased $350 thousand from the prior quarter and decreased $1.5 million from the same quarter a year ago.
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·
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Total risk-based capital ratio grew to 13.3%, up from 12.9% at September 30, 2010 and 12.3% at December 31, 2009, and continues to be well above industry requirements for a well-capitalized institution.
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·
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In the fourth quarter, Bancorp declared and paid an increased quarterly cash dividend of $0.16 per share, up from $0.15 in the previous quarter.
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·
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Bank of Marin (the “Bank”) expanded its community banking footprint into Sonoma County. On October 14, 2010, the Bank opened a loan production office in Santa Rosa, which will be converted to a full service commercial banking office in the second quarter of 2011. In addition, in December 2010, the Bank signed a lease for a branch in downtown Sonoma. This office will open as the Bank’s fifth branch in Sonoma County by late spring 2011.
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Loans and Credit Quality
Total loans reached $941.4 million at December 31, 2010, representing an increase of $23.7 million, or 2.6%, over December 31, 2009. This growth primarily reflects growth in the Bank’s San Francisco and Santa Rosa markets and represents an increase in commercial real estate loans, partially offset by decreases in construction and commercial loans.
1
“Our credit risk is proactively managed,” said Christina J. Cook, Chief Financial Officer. “We apply prudent underwriting fundamentals, build strong relationships with our customers and operate within markets we know.”
Non-performing loans totaled $12.9 million, or 1.37% of Bancorp’s loan portfolio at December 31, 2010, compared to $10.6 million, or 1.13% at September 30, 2010 and $11.6 million or 1.26% a year ago. Accruing loans past due 30 to 89 days decreased to $352 thousand at December 31, 2010 from $4.6 million at September 30, 2010 and $835 thousand a year ago.
In the fourth quarter of 2010, Bancorp’s loan loss provision totaled $1.1 million, down $350 thousand from the prior quarter and down $1.5 million from the same quarter a year ago. The provision for loan losses totaled $5.4 million and $5.5 million in 2010 and 2009, respectively. The allowance for loan losses of $12.4 million totaled 1.32% of loans at December 31, 2010 compared to 1.28% and 1.16% at September 30, 2010 and December 31, 2009, respectively. The increases in the allowance for loan losses as a percentage of loans from both a quarter ago and a year ago reflect a higher level of non-performing loans and the related specific reserves. Net charge-offs in the fourth quarter of 2010 decreased to $682 thousand from $1.2 million in the prior quarter and $3.0 million in the same quarter a year ago. Net charge-offs in 2010 decreased to $3.6 million in 2010 from $4.8 million in 2009.
Deposits
Total deposits grew $71.7 million or 7.6% over a year ago to $1.0 billion. The higher level of deposits reflects growth in most deposit categories, most notably in demand deposits of $51.6 million, or 22.4%.
“We have built a strong core deposit base reflecting the continued trust our customers place in us,” said Mr. Colombo. “Our high level of demand deposits is attributable to the relationships we have built and the personalized service we provide.”
Earnings
Net interest income of $14.1 million in the fourth quarter of 2010 increased $669 thousand, or 5.0%, from the same period last year. Net interest income of $54.9 million for the full year increased $2.3 million, or 4.5% from 2009. The increases reflect growth in the interest-earning assets and reduction in the cost of funds, partially offset by reduction in the yield on investment securities. The tax-equivalent net interest margin was 4.92% in the fourth quarter of 2010, compared to 5.18% in the fourth quarter of 2009 and 4.88% in the prior quarter. The tax-equivalent net interest margin was 4.95% in 2010 compared to 5.17% in 2009. Decreases in the tax-equivalent net interest margin were primarily due to lower yields on investment securities (as a result of increased prepayments and lower yields on recent purchases) and a shift in the relative composition of interest-earning assets from higher-yielding loans to lower-yielding cash held at the Federal Reserve Bank and other short-term investments. The excess liquidity from deposit inflows has not been deployed as the banking industry as a whole is experiencing challenges with loan demand from qualified borrowers.
Non-interest income in the fourth quarter of 2010 remained relatively unchanged from the same period last year. The 2010 non-interest income of $5.5 million increased $339 thousand, or 6.5% from last year due to higher Wealth Management and Trust Services fees and higher Visa debit card and merchant interchange fees.
Non-interest expense totaled $8.0 million in the fourth quarter of 2010, an increase of $274 thousand, or 3.5% from the same quarter a year ago, primarily due to higher personnel costs associated with franchise expansion. Non-interest expense totaled $33.4 million in 2010, up $1.7 million, or 5.2% from $31.7 million in 2009. This increase reflected higher personnel costs and occupancy costs associated with franchise expansion, higher professional costs associated with strategic expansion initiatives and higher data processing costs, partially offset by the 2009 Federal Deposit Insurance Corporation special assessment of $496 thousand.
2
About Bank of Marin Bancorp
Bank of Marin Bancorp's assets currently exceed $1 billion. Bank of Marin, as the sole subsidiary of Bank of Marin Bancorp, is the largest community bank in Marin County with sixteen offices in Marin, San Francisco and Sonoma counties. The Bank's Administrative offices are located in Novato, California. Bank of Marin offers business and personal banking, private banking and wealth management services, with a strong focus on supporting the local community. Bank of Marin Bancorp is included in the Russell 2000 Small-Cap Index, is recognized as a Top 200 Community Bank, ranked number 42 in the U.S. by US Banker Magazine, and has received the highest five star rating from Bauer Financial for more than ten years (www.bauerfinancial.com). Celebrating its 21st anniversary in 2011, Bank of Marin has been recognized as one of the "Best Places to Work in the Bay Area" and one of the "Top Corporate Philanthropists" by the San Francisco Business Times.
Forward Looking Statements
This release may contain certain forward-looking statements that are based on management’s current expectations regarding economic, legislative, and regulatory issues that may impact Bancorp’s earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, the economic downturn in the United States and abroad, changes in interest rates, deposit flows, real estate values, and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting Bancorp’s operations, pricing, products and services. These and other important factors are detailed in various securities law filings made periodically by Bancorp, copies of which are available from Bancorp without charge. Bancorp undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
3
BANK OF MARIN BANCORP
FINANCIAL HIGHLIGHTS
Year To Year Comparison
December 31, 2010
(dollars in thousands, except per share data; unaudited)
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FOURTH QUARTER
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QTD 2010
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QTD 2009
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CHANGE
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% CHANGE
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NET INCOME
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$ | 3,908 | $ | 2,802 | $ | 1,106 | 39.5 | % | ||||||||
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DILUTED EARNINGS PER COMMON SHARE
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$ | 0.73 | $ | 0.53 | $ | 0.20 | 37.7 | % | ||||||||
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RETURN ON AVERAGE ASSETS (ROA)
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1.28 | % | 0.97 | % | 0.31 | % | 32.0 | % | ||||||||
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RETURN ON AVERAGE EQUITY (ROE)
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12.81 | % | 10.15 | % | 2.66 | % | 26.2 | % | ||||||||
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EFFICIENCY RATIO
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52.12 | % | 52.70 | % | (0.58 | %) | (1.1 | %) | ||||||||
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TAX-EQUIVALENT NET INTEREST MARGIN 1
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4.92 | % | 5.18 | % | (0.26 | %) | (5.0 | %) | ||||||||
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NET CHARGE-OFFS
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$ | 682 | $ | 3,025 | $ | (2,343 | ) | (77.5 | %) | |||||||
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NET CHARGE-OFFS TO AVERAGE LOANS
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0.07 | % | 0.33 | % | (0.26 | %) | (78.8 | %) | ||||||||
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YEAR-TO-DATE
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YTD 2010
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YTD 2009
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CHANGE
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% CHANGE
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NET INCOME
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$ | 13,552 | $ | 12,765 | $ | 787 | 6.2 | % | ||||||||
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DILUTED EARNINGS PER COMMON SHARE 2
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$ | 2.55 | $ | 2.19 | $ | 0.36 | 16.4 | % | ||||||||
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RETURN ON AVERAGE ASSETS (ROA)
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1.14 | % | 1.16 | % | (0.02 | %) | (1.7 | %) | ||||||||
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RETURN ON AVERAGE EQUITY (ROE)
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11.67 | % | 11.46 | % | 0.21 | % | 1.8 | % | ||||||||
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EFFICIENCY RATIO
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55.20 | % | 54.89 | % | 0.31 | % | 0.6 | % | ||||||||
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TAX-EQUIVALENT NET INTEREST MARGIN 1
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4.95 | % | 5.17 | % | (0.22 | %) | (4.3 | %) | ||||||||
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NET CHARGE-OFFS
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$ | 3,577 | $ | 4,842 | $ | (1,265 | ) | (26.1 | %) | |||||||
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NET CHARGE-OFFS TO AVERAGE LOANS
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0.38 | % | 0.53 | % | (0.15 | %) | (28.3 | %) | ||||||||
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AT PERIOD END
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December 31, 2010
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December 31, 2009
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CHANGE
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% CHANGE
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TOTAL ASSETS
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$ | 1,208,150 | $ | 1,121,672 | $ | 86,478 | 7.7 | % | ||||||||
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LOANS:
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COMMERCIAL
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$ | 153,836 | $ | 164,643 | $ | (10,807 | ) | (6.6 | %) | |||||||
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REAL ESTATE
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COMMERCIAL OWNER-OCCUPIED
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$ | 142,590 | $ | 146,133 | $ | (3,543 | ) | (2.4 | %) | |||||||
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COMMERCIAL INVESTOR
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$ | 383,553 | $ | 332,752 | $ | 50,801 | 15.3 | % | ||||||||
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CONSTRUCTION
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$ | 77,619 | $ | 91,289 | $ | (13,670 | ) | (15.0 | %) | |||||||
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HOME EQUITY
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$ | 86,932 | $ | 83,977 | $ | 2,955 | 3.5 | % | ||||||||
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OTHER RESIDENTIAL
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$ | 69,991 | $ | 69,369 | $ | 622 | 0.9 | % | ||||||||
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INSTALLMENT AND OTHER CONSUMER LOANS
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$ | 26,879 | $ | 29,585 | $ | (2,706 | ) | (9.1 | %) | |||||||
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TOTAL LOANS
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$ | 941,400 | $ | 917,748 | $ | 23,652 | 2.6 | % | ||||||||
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NON-PERFORMING LOANS 3:
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COMMERCIAL
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$ | 2,486 | $ | 910 | $ | 1,576 | 173.2 | % | ||||||||
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REAL ESTATE
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COMMERCIAL OWNER-OCCUPIED
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$ | 632 | $ | 3,722 | $ | (3,090 | ) | (83.0 | %) | |||||||
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CONSTRUCTION
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$ | 9,297 | $ | 6,520 | $ | 2,777 | 42.6 | % | ||||||||
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HOME EQUITY
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$ | 0 | $ | 100 | $ | (100 | ) | (100.0 | %) | |||||||
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OTHER RESIDENTIAL
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$ | 148 | $ | 0 | $ | 148 |
NM
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INSTALLMENT AND OTHER CONSUMER LOANS
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$ | 362 | $ | 313 | $ | 49 | 15.7 | % | ||||||||
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TOTAL NON-PERFORMING LOANS
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$ | 12,925 | $ | 11,565 | $ | 1,360 | 11.8 | % | ||||||||
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TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE
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$ | 352 | $ | 835 | $ | (483 | ) | (57.8 | %) | |||||||
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LOAN LOSS RESERVE TO LOANS
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1.32 | % | 1.16 | % | 0.16 | % | 13.8 | % | ||||||||
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LOAN LOSS RESERVE TO NON-PERFORMING LOANS
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0.96 | x | 0.92 | x | 0.04 | x | 4.3 | % | ||||||||
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NON-PERFORMING LOANS TO TOTAL LOANS
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1.37 | % | 1.26 | % | 0.11 | % | 8.7 | % | ||||||||
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TEXAS RATIO 4
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9.72 | % | 9.74 | % | (0.02 | %) | (0.2 | %) | ||||||||
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TOTAL DEPOSITS
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$ | 1,015,739 | $ | 944,061 | $ | 71,678 | 7.6 | % | ||||||||
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LOAN TO DEPOSIT RATIO
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92.7 | % | 97.2 | % | (4.5 | %) | (4.6 | %) | ||||||||
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STOCKHOLDERS' EQUITY
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$ | 121,920 | $ | 109,051 | $ | 12,869 | 11.8 | % | ||||||||
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BOOK VALUE PER SHARE
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$ | 23.05 | $ | 20.85 | $ | 2.20 | 10.6 | % | ||||||||
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TANGIBLE COMMON EQUITY TO ASSETS 5
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10.09 | % | 9.72 | % | 0.37 | % | 3.8 | % | ||||||||
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TOTAL RISK BASED CAPITAL RATIO-BANK 6
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12.7 | % | 11.6 | % | 1.10 | % | 9.5 | % | ||||||||
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TOTAL RISK BASED CAPITAL RATIO-BANCORP 6
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13.3 | % | 12.3 | % | 1.00 | % | 8.1 | % | ||||||||
1 Net interest income is annualized by dividing actual number of days in the period times 360 days.
2 The earnings per common share of $2.19 in 2009 were reduced by $0.25 as a result of Bancorp’s participation and withdrawal from the U.S. Department of the Treasury Capital Purchase Program (“TCPP”) and $0.06 related to an FDIC special assessment. In March 2009, Bancorp repurchased all 28,000 shares of preferred stock issued under the TCPP on December 5, 2008. A total of $28.2 million was paid to the Treasury, including accrued dividends of $179 thousand. As a result of the participation in the TCPP and the related repurchase, net income available to common stockholders in 2009 was reduced by $354 thousand in preferred stock dividends and $945 thousand in accelerated accretion on the preferred stock.
3 Excludes accruing troubled-debt restructured loans of $1.2 million and $615 thousand at December 31, 2010 and 2009, respectively.
4 (Non-performing assets + 90 day delinquent loans)/(tangible common equity + allowance for loan losses)
5 Tangible common equity includes common stock, retained earnings and unrealized gain on available for sale securities, net of tax.
6 Current period estimated.
4
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BANK OF MARIN BANCORP
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CONSOLIDATED STATEMENT OF CONDITION
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at December 31, 2010, September 30, 2010 and December 31, 2009
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(in thousands, except share data; 2010 unaudited)
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December 31, 2010
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September 30, 2010
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December 31, 2009
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Assets
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Cash and due from banks
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$ | 65,724 | $ | 73,546 | $ | 23,660 | ||||||
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Short-term investments
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19,508 | 24,208 | 15,000 | |||||||||
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Cash and cash equivalents
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85,232 | 97,754 | 38,660 | |||||||||
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Investment securities
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Held to maturity, at amortized cost
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34,917 | 29,809 | 30,396 | |||||||||
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Available for sale (at fair value; amortized cost $109,070, $114,625 and $96,752 at December 31, 2010, September 30, 2010, and December 31, 2009, respectively)
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111,736 | 118,113 | 97,818 | |||||||||
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Total investment securities
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146,653 | 147,922 | 128,214 | |||||||||
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Loans, net of allowance for loan losses of $12,392, $12,023 and $10,618 at December 31, 2010, September 30, 2010 and December 31, 2009, respectively)
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929,008 | 926,111 | 907,130 | |||||||||
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Bank premises and equipment, net
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8,419 | 8,584 | 8,043 | |||||||||
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Interest receivable and other assets
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38,838 | 38,843 | 39,625 | |||||||||
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Total assets
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$ | 1,208,150 | $ | 1,219,214 | $ | 1,121,672 | ||||||
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Liabilities and Stockholders' Equity
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Liabilities
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Deposits
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Non-interest bearing
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$ | 282,195 | $ | 276,320 | $ | 230,551 | ||||||
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Interest bearing
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Transaction accounts
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105,177 | 99,367 | 89,660 | |||||||||
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Savings accounts
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56,760 | 52,991 | 47,871 | |||||||||
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Money market accounts
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371,352 | 392,381 | 416,481 | |||||||||
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CDARS® time accounts
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67,261 | 70,661 | 51,819 | |||||||||
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Other time accounts
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132,994 | 131,558 | 107,679 | |||||||||
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Total deposits
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1,015,739 | 1,023,278 | 944,061 | |||||||||
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Federal Home Loan Bank borrowings
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55,000 | 55,000 | 55,000 | |||||||||
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Subordinated debenture
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5,000 | 5,000 | 5,000 | |||||||||
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Interest payable and other liabilities
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10,491 | 17,322 | 8,560 | |||||||||
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Total liabilities
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1,086,230 | 1,100,600 | 1,012,621 | |||||||||
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Stockholders' Equity
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Preferred stock, no par value, $1,000 per share liquidation preference
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Authorized - 5,000,000 shares; none issued
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--- | --- | --- | |||||||||
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Common stock, no par value
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Authorized - 15,000,000 shares
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Issued and outstanding - 5,290,082 shares, 5,258,487 shares and 5,229,529 shares at December 31, 2010, September 30, 2010 and December 31, 2009, respectively
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55,383 | 54,664 | 53,789 | |||||||||
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Retained earnings
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64,991 | 61,927 | 54,644 | |||||||||
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Accumulated other comprehensive income, net
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1,546 | 2,023 | 618 | |||||||||
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Total stockholders' equity
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121,920 | 118,614 | 109,051 | |||||||||
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Total liabilities and stockholders' equity
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$ | 1,208,150 | $ | 1,219,214 | $ | 1,121,672 | ||||||
5
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BANK OF MARIN BANCORP
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CONSOLIDATED STATEMENT OF INCOME
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3 Months Ended
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Year Ended
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(in thousands, except per share amounts; 2010 and quarterly data unaudited)
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Dec. 31,
2010
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Sep. 30,
2010
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Dec. 31,
2009
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Dec. 31,
2010
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Dec. 31,
2009
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Interest income
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Interest and fees on loans
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$ | 14,093 | $ | 14,296 | $ | 13,871 | $ | 56,239 | $ | 54,816 | ||||||||||
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Interest on investment securities
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Securities on U.S. Government agencies
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792 | 829 | 833 | 3,234 | 3,304 | |||||||||||||||
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Obligations of state and political subdivisions
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291 | 284 | 285 | 1,146 | 1,103 | |||||||||||||||
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Corporate debt securities and other
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141 | 144 | 214 | 593 | 506 | |||||||||||||||
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Interest on Federal funds sold and short-term investments
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47 | 48 | 1 | 145 | 5 | |||||||||||||||
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Total interest income
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15,364 | 15,601 | 15,204 | 61,357 | 59,734 | |||||||||||||||
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Interest expense
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Interest on interest-bearing transaction accounts
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29 | 32 | 29 | 110 | 115 | |||||||||||||||
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Interest on savings accounts
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25 | 27 | 25 | 104 | 94 | |||||||||||||||
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Interest on money market accounts
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339 | 602 | 876 | 2,467 | 3,235 | |||||||||||||||
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Interest on CDARS® time accounts
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179 | 221 | 171 | 842 | 721 | |||||||||||||||
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Interest on other time accounts
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373 | 391 | 353 | 1,495 | 1,541 | |||||||||||||||
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Interest on borrowed funds
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360 | 363 | 360 | 1,430 | 1,461 | |||||||||||||||
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Total interest expense
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1,305 | 1,636 | 1,814 | 6,448 | 7,167 | |||||||||||||||
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Net interest income
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14,059 | 13,965 | 13,390 | 54,909 | 52,567 | |||||||||||||||
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Provision for loan losses
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1,050 | 1,400 | 2,525 | 5,350 | 5,510 | |||||||||||||||
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Net interest income after provision for loan losses
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13,009 | 12,565 | 10,865 | 49,559 | 47,057 | |||||||||||||||
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Non-interest income
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Service charges on deposit accounts
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442 | 446 | 459 | 1,797 | 1,782 | |||||||||||||||
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Wealth Management and Trust Services
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394 | 364 | 366 | 1,521 | 1,383 | |||||||||||||||
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Other income
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524 | 497 | 516 | 2,203 | 2,017 | |||||||||||||||
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Total non-interest income
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1,360 | 1,307 | 1,341 | 5,521 | 5,182 | |||||||||||||||
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Non-interest expense
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Salaries and related benefits
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4,408 | 4,665 | 3,951 | 18,240 | 17,001 | |||||||||||||||
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Occupancy and equipment
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884 | 880 | 947 | 3,576 | 3,516 | |||||||||||||||
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Depreciation and amortization
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311 | 335 | 349 | 1,344 | 1,370 | |||||||||||||||
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FDIC insurance
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381 | 388 | 344 | 1,506 | 1,800 | |||||||||||||||
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Data processing
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494 | 491 | 477 | 1,916 | 1,650 | |||||||||||||||
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Professional services
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481 | 550 | 543 | 1,917 | 1,727 | |||||||||||||||
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Other expense
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1,078 | 1,198 | 1,152 | 4,858 | 4,632 | |||||||||||||||
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Total non-interest expense
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8,037 | 8,507 | 7,763 | 33,357 | 31,696 | |||||||||||||||
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Income before provision for income taxes
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6,332 | 5,365 | 4,443 | 21,723 | 20,543 | |||||||||||||||
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Provision for income taxes
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2,424 | 2,006 | 1,641 | 8,171 | 7,778 | |||||||||||||||
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Net income
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$ | 3,908 | $ | 3,359 | $ | 2,802 | $ | 13,552 | $ | 12,765 | ||||||||||
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Preferred stock dividends and accretion
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--- | --- | --- | --- | $ | (1,299 | ) | |||||||||||||
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Net income available to common stockholders
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$ | 3,908 | $ | 3,359 | $ | 2,802 | $ | 13,552 | $ | 11,466 | ||||||||||
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Net income per common share:
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Basic
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$ | 0.74 | $ | 0.64 | $ | 0.54 | $ | 2.59 | $ | 2.21 | ||||||||||
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Diluted
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$ | 0.73 | $ | 0.63 | $ | 0.53 | $ | 2.55 | $ | 2.19 | ||||||||||
|
Weighted average shares used to compute net income per common share:
|
||||||||||||||||||||
|
Basic
|
5,259 | 5,241 | 5,210 | 5,238 | 5,182 | |||||||||||||||
|
Diluted
|
5,342 | 5,311 | 5,295 | 5,314 | 5,242 | |||||||||||||||
|
Dividends declared per common share
|
$ | 0.16 | $ | 0.15 | $ | 0.15 | $ | 0.61 | $ | 0.57 | ||||||||||
6
Average Statements of Condition and Analysis of Net Interest Income
|
Three months ended
|
Three months ended
|
Three months ended
|
||||||||||||||||||||||||||||||||||
|
December 31, 2010
|
September 30, 2010
|
December 31, 2009
|
||||||||||||||||||||||||||||||||||
|
Interest
|
Interest
|
Interest
|
||||||||||||||||||||||||||||||||||
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
||||||||||||||||||||||||||||
|
(Dollars in thousands; unaudited)
|
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
|||||||||||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||||||||||||||
|
Interest-bearing due from banks (1)
|
$ | 60,050 | $ | 47 | 0.31 | % | $ | 65,461 | $ | 48 | 0.29 | % | $ | 652 | $ | 1 | 0.60 | % | ||||||||||||||||||
|
Investment securities
|
||||||||||||||||||||||||||||||||||||
|
U.S. Government agencies (2)
|
95,910 | 792 | 3.30 | 94,255 | 829 | 3.52 | 69,312 | 833 | 4.81 | |||||||||||||||||||||||||||
|
Corporate CMOs and other (2)
|
15,628 | 141 | 3.61 | 12,333 | 144 | 4.67 | 13,046 | 214 | 6.56 | |||||||||||||||||||||||||||
|
Obligations of state and political subdivisions (3)
|
32,756 | 443 | 5.41 | 30,068 | 431 | 5.73 | 30,233 | 434 | 5.74 | |||||||||||||||||||||||||||
|
Loans and banker's acceptances (1) (3) (4)
|
932,570 | 14,184 | 5.95 | 935,116 | 14,374 | 6.01 | 913,538 | 13,934 | 5.97 | |||||||||||||||||||||||||||
|
Total interest-earning assets (1)
|
1,136,914 | 15,607 | 5.37 | 1,137,233 | 15,826 | 5.45 | 1,026,781 | 15,416 | 5.88 | |||||||||||||||||||||||||||
|
Cash and non-interest-bearing due from banks
|
36,567 | 34,464 | 88,060 | |||||||||||||||||||||||||||||||||
|
Bank premises and equipment, net
|
8,531 | 8,524 | 8,201 | |||||||||||||||||||||||||||||||||
|
Interest receivable and other assets, net
|
32,144 | 32,056 | 26,669 | |||||||||||||||||||||||||||||||||
|
Total assets
|
$ | 1,214,156 | $ | 1,212,277 | $ | 1,149,711 | ||||||||||||||||||||||||||||||
|
Liabilities and Stockholders' Equity
|
||||||||||||||||||||||||||||||||||||
|
Interest-bearing transaction accounts
|
$ | 102,117 | $ | 29 | 0.11 | % | $ | 102,982 | $ | 32 | 0.12 | % | $ | 91,256 | $ | 29 | 0.13 | % | ||||||||||||||||||
|
Savings accounts
|
55,259 | 25 | 0.18 | 52,091 | 27 | 0.21 | 47,410 | 25 | 0.21 | |||||||||||||||||||||||||||
|
Money market accounts
|
380,165 | 339 | 0.35 | 388,549 | 602 | 0.61 | 428,843 | 876 | 0.81 | |||||||||||||||||||||||||||
|
CDARS® time accounts
|
70,453 | 179 | 1.01 | 78,318 | 221 | 1.12 | 51,303 | 171 | 1.32 | |||||||||||||||||||||||||||
|
Other time accounts
|
132,062 | 373 | 1.12 | 130,276 | 391 | 1.19 | 103,996 | 353 | 1.35 | |||||||||||||||||||||||||||
|
Overnight borrowings (1)
|
8 | --- | 0.29 | --- | --- | --- | 2 | --- | 1.09 | |||||||||||||||||||||||||||
|
FHLB fixed-rate advances
|
55,000 | 323 | 2.33 | 55,000 | 323 | 2.33 | 55,000 | 323 | 2.33 | |||||||||||||||||||||||||||
|
Subordinated debenture (1)
|
5,000 | 37 | 2.90 | 5,000 | 40 | 3.13 | 5,000 | 37 | 2.90 | |||||||||||||||||||||||||||
|
Total interest-bearing liabilities
|
800,064 | 1,305 | 0.65 | 812,216 | 1,636 | 0.80 | 782,810 | 1,814 | 0.92 | |||||||||||||||||||||||||||
|
Demand accounts
|
281,563 | 271,591 | 247,085 | |||||||||||||||||||||||||||||||||
|
Interest payable and other liabilities
|
11,524 | 10,744 | 10,326 | |||||||||||||||||||||||||||||||||
|
Stockholders' equity
|
121,005 | 117,726 | 109,490 | |||||||||||||||||||||||||||||||||
|
Total liabilities & stockholders' equity
|
$ | 1,214,156 | $ | 1,212,277 | $ | 1,149,711 | ||||||||||||||||||||||||||||||
|
Tax-equivalent net interest income/margin (1)
|
$ | 14,302 | 4.92 | % | $ | 14,190 | 4.88 | % | $ | 13,602 | 5.18 | % | ||||||||||||||||||||||||
|
Reported net interest income/margin
|
$ | 14,059 | 4.84 | % | $ | 13,965 | 4.81 | % | $ | 13,390 | 5.10 | % | ||||||||||||||||||||||||
|
Tax-equivalent net interest rate spread
|
4.72 | % | 4.65 | % | 4.96 | % | ||||||||||||||||||||||||||||||
7
|
Year ended
|
Year ended
|
|||||||||||||||||||||||
|
December 31, 2010
|
December 31, 2009
|
|||||||||||||||||||||||
|
Interest
|
Interest
|
|||||||||||||||||||||||
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||||||||||
|
(Dollars in thousands; unaudited)
|
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Interest-bearing due from banks (1)
|
$ | 43,028 | $ | 143 | 0.33 | % | $ | 164 | $ | 1 | 0.60 | % | ||||||||||||
|
Federal funds sold
|
3,049 | 2 | 0.07 | 1,752 | 4 | 0.23 | ||||||||||||||||||
|
Investment securities
|
||||||||||||||||||||||||
|
U.S. Government agencies (2)
|
91,869 | 3,234 | 3.52 | 70,268 | 3,304 | 4.70 | ||||||||||||||||||
|
Corporate CMOs and other (2)
|
13,675 | 593 | 4.34 | 7,397 | 506 | 6.84 | ||||||||||||||||||
|
Obligations of state and political subdivisions (3)
|
30,893 | 1,741 | 5.64 | 29,221 | 1,677 | 5.74 | ||||||||||||||||||
|
Loans and banker's acceptances (1) (3) (4)
|
929,755 | 56,542 | 6.00 | 910,456 | 55,071 | 5.97 | ||||||||||||||||||
|
Total interest-earning assets (1)
|
1,112,269 | 62,255 | 5.52 | 1,019,258 | 60,563 | 5.86 | ||||||||||||||||||
|
Cash and non-interest-bearing due from banks
|
34,383 | 46,594 | ||||||||||||||||||||||
|
Bank premises and equipment, net
|
8,259 | 8,140 | ||||||||||||||||||||||
|
Interest receivable and other assets, net
|
31,262 | 26,041 | ||||||||||||||||||||||
|
Total assets
|
$ | 1,186,173 | $ | 1,100,033 | ||||||||||||||||||||
|
Liabilities and Stockholders' Equity
|
||||||||||||||||||||||||
|
Interest-bearing transaction accounts
|
$ | 98,168 | $ | 110 | 0.11 | % | $ | 90,159 | 115 | 0.13 | % | |||||||||||||
|
Savings accounts
|
51,738 | 104 | 0.20 | 45,944 | 94 | 0.20 | ||||||||||||||||||
|
Money market accounts
|
390,575 | 2,467 | 0.63 | 391,571 | 3,235 | 0.83 | ||||||||||||||||||
|
CDARS® time accounts
|
71,432 | 842 | 1.18 | 51,248 | 721 | 1.41 | ||||||||||||||||||
|
Other time accounts
|
124,631 | 1,495 | 1.20 | 97,924 | 1,541 | 1.57 | ||||||||||||||||||
|
Overnight borrowings (1)
|
2 | --- | 0.29 | 10,659 | 28 | 0.26 | ||||||||||||||||||
|
FHLB fixed-rate advances
|
55,000 | 1,281 | 2.33 | 53,794 | 1,253 | 2.33 | ||||||||||||||||||
|
Subordinated debenture (1)
|
5,000 | 149 | 2.94 | 5,000 | 180 | 3.55 | ||||||||||||||||||
|
Total interest-bearing liabilities
|
796,546 | 6,448 | 0.81 | 746,299 | 7,167 | 0.96 | ||||||||||||||||||
|
Demand accounts
|
263,742 | 232,502 | ||||||||||||||||||||||
|
Interest payable and other liabilities
|
9,791 | 9,873 | ||||||||||||||||||||||
|
Stockholders' equity
|
116,094 | 111,359 | ||||||||||||||||||||||
|
Total liabilities & stockholders' equity
|
$ | 1,186,173 | $ | 1,100,033 | ||||||||||||||||||||
|
Tax-equivalent net interest income/margin (1)
|
$ | 55,807 | 4.95 | % | $ | 53,396 | 5.17 | % | ||||||||||||||||
|
Reported net interest income/margin
|
$ | 54,909 | 4.87 | % | $ | 52,567 | 5.09 | % | ||||||||||||||||
|
Tax-equivalent net interest rate spread
|
4.71 | % | 4.90 | % | ||||||||||||||||||||
(1) Interest income/expense is divided by actual number of days in the period times 360 days to correspond to stated interest rate terms, where applicable.
(2) Yields on available-for-sale securities are calculated based on amortized cost balances rather than fair value, as changes in fair value are reflected as a component of stockholders' equity.
(3) Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the Federal statutory rate of 35 percent.
(4) Average balances on loans outstanding include non-performing loans. The amortized portion of net loan origination fees is included in interest income on loans, representing an adjustment to the yield.
8