Attached files
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| 8-K - 8-K - Bank of Marin Bancorp | form8k-q32012.htm |
EXHIBIT 99.1
 | ||
FOR IMMEDIATE RELEASE | CONTACT: | Sandy Pfaff |
415-819-7447 | ||
sandy@pfaffpr.com | ||
BANK OF MARIN BANCORP REPORTS EARNINGS OF $13.1 MILLION YEAR-TO-DATE
RESULTS DRIVEN BY STRONG CORE BUSINESS FUNDAMENTALS
NOVATO, CA, October 22, 2012 - Bank of Marin Bancorp, "Bancorp" (NASDAQ: BMRC), parent company of Bank of Marin, announced earnings for the nine-month period ended September 30, 2012 of $13.1 million, up 7.7%, from $12.2 million in the same period a year ago. Diluted earnings per share for the nine-month period ended September 30, 2012 totaled $2.41, up $0.15, or 6.6%, from $2.26 in the same period a year ago. Earnings for the quarter ended September 30, 2012 totaled $3.2 million, compared to $5.0 million in the second quarter of 2012, and $4.2 million in the third quarter of 2011. Diluted earnings per share totaled $0.59 in the third quarter, compared to $0.91 in the prior quarter, and $0.79 in the same quarter a year ago. Third quarter earnings reflect a $2.1 million provision for loan loss that is primarily related to one borrowing relationship.
“Bank of Marin's underlying business fundamentals are very strong, including the quality of the credit portfolio and continued deposit growth," said Russell A. Colombo, President and CEO of Bank of Marin. “We continue to focus on growing our loan totals, with funded deals increasing this quarter.”
Bancorp also provided the following highlights on its operating and financial performance for the third quarter of 2012:
• | Loan fundings were $31.8 million in the third quarter, offset by payoffs of $36.1 million, which included the prepayment of five performing real estate loans totaling $20.1 million due to the sale of properties. Loans in Napa increased $13.5 million, or 22.2%, in the third quarter of 2012. |
• | Deposits totaled $1.3 billion at September 30, 2012, increasing 2.3% from $1.2 billion at June 30, 2012 and increasing 7.0% from September 30, 2011. Non-interest bearing deposits totaled 32.5% of total deposits at September 30, 2012. |
• | In a conscious effort to deploy excess liquidity and reduce the cost of funds, Bancorp redeemed a $5.0 million subordinated debenture at one-month LIBOR plus 2.48% in the third quarter of 2012. |
• | The total risk-based capital ratio for Bancorp grew to 14.0%, up from 13.9% at June 30, 2012 and 13.3% at September 30, 2011. The risk-based capital ratio continues to be well above industry requirements for a well-capitalized institution. |
• | On October 18, 2012, the Board of Directors declared a quarterly cash dividend of $0.18 per share. The cash dividend is payable to shareholders of record at the close of business on November 1, 2012 and will be payable on November 9, 2012. |
1
Loans and Credit Quality
Gross loans totaled $1.0 billion at both September 30, 2012 and June 30, 2012, and totaled $992.6 million at September 30, 2011. The third quarter loan activity reflected the payoff of five performing real estate loans totaling $20.1 million, due to the sale of properties.
"We are encouraged by our strong loan pipeline, especially in San Francisco," said Chris Cook, Chief Financial Officer. "We are well-positioned with highly experienced lenders in all of our markets and are confident in our ability to build business relationships."
Non-performing loans totaled $19.2 million, or 1.90%, of Bancorp's loan portfolio at September 30, 2012, compared to $14.3 million, or 1.40%, at June 30, 2012 and $10.7 million, or 1.08%, a year ago. The increase in non-performing loans from the prior quarter primarily relates to a construction loan of $3.0 million that is expected to be paid off before year end and a commercial loan of $4.2 million that is expected to be paid down gradually as the borrower liquidates the collateral in an orderly fashion. Accruing loans past due 30 to 89 days totaled $2.1 million at September 30, 2012, down from $9.8 million at June 30, 2012 and $5.0 million a year ago.
Bancorp's loan loss provision totaled $2.2 million and $4.6 million for the nine-month periods ended September 30, 2012 and 2011, respectively. The provision for loan losses totaled $2.1 million in the third quarter of 2012, compared to $100 thousand in the prior quarter and $500 thousand from the same quarter a year ago. The $2.1 million provision for loan losses in the third quarter of 2012 is primarily related to one commercial real estate borrowing relationship, based on an appraisal received in the third quarter. Foreclosure is in process for the property securing the loan.
The allowance for loan losses totaled 1.30% of loans at September 30, 2012, compared to 1.31% at June 30, 2012 and 1.33% at September 30, 2011. Net charge-offs in the first nine-months of 2012 and 2011 both totaled $3.7 million. Net charge-offs in the third quarter of 2012 totaled $2.4 million, primarily reflecting the partial charge-off of one commercial real estate borrowing relationship discussed above, compared to $187 thousand in the prior quarter and $1.2 million in the third quarter of 2011.
Deposits
Deposits totaled $1.3 billion at September 30, 2012, compared to $1.2 billion at June 30, 2012 and September 30, 2011. Non-interest bearing deposits comprised 32.5% of total deposits at September 30, 2012 and June 30, 2012, and comprised 31.8% at September 30, 2011.
Earnings
Net interest income for the first nine months of 2012 totaled $47.4 million compared to $48.1 million in the same period a year ago. The tax-equivalent net interest margin was 4.78% in the first nine months of 2012 compared to 5.25% in the same period a year ago. The decreases in the first nine months compared to the same period a year ago primarily relate to a lower level of accretion on purchased non-credit impaired loans and a lower level of gains on pay-offs of purchased credit-impaired ("PCI") loans. In addition, rate concessions and downward repricing on existing loans, as well as new loans boarded at lower rates continue to negatively impact the loan yield. The decreases are partially offset by a reduction in the cost of interest-bearing liabilities, as the prior year reflects a $924 thousand pre-payment penalty on a Federal Home Loan Bank ("FHLB") advance in September 2011. Furthermore, the current year reflects the maturity of another FHLB advance in January 2012 and the downward repricing on deposits.
Net interest income totaled $14.9 million in the third quarter of 2012 compared to $15.2 million in the same quarter last year, and the tax-equivalent net interest margin was 4.44% compared to 4.76% for those respective periods. The decreases in the third quarter of 2012 compared to the same quarter a year ago primarily reflect the same reasons mentioned above.
Net interest income totaled $14.9 million in the third quarter of 2012 compared to $16.3 million in the prior quarter, and the tax-equivalent net interest margin was 4.44% compared to 4.94% for those respective periods. The decreases in the third quarter of 2012 compared to the prior quarter primarily relate to rate concessions, the downward repricing on both existing and new loans and a lower level of accretion on purchased loans.
2
Accretion and gains on pay-offs of purchased loans recorded to interest income were as follows:
Three months ended | Nine months ended | ||||||
(dollars in thousands; unaudited) | 9/30/2012 | 6/30/2012 | 9/30/2011 | 9/30/2012 | 9/30/2011 | ||
Accretion on PCI loans | $231 | $478 | $412 | $1,219 | $779 | ||
Accretion on non-PCI loans | $232 | $311 | $405 | $746 | $2,616 | ||
Gains on pay-offs of PCI loans | $101 | $69 | $448 | $692 | $1,670 | ||
Accretion on PCI loans fluctuates based on changes in cash flows expected to be collected. For acquired loans not considered credit-impaired, the level of accretion varies due to maturities and early pay-offs of these loans. Gains on pay-offs of PCI loans are recorded as interest income when the pay-off amounts exceed the recorded investment.
Non-interest income totaled $5.3 million for the first nine months of 2012, an increase of $551 thousand, or 11.6% from the same period a year ago. Non-interest income in the third quarter of 2012 totaled $1.8 million and remained relatively consistent with the prior quarter and increased $236 thousand, or 15.1%, from the same quarter a year ago. The increase in the first nine months and third quarter of 2012 compared to the same periods a year ago primarily relate to higher merchant interchange income, debit card interchange fees and service charges on deposit accounts.
Non-interest expense totaled $29.1 million and $28.5 million in the first nine months of 2012 and 2011, respectively. The increase primarily reflects higher personnel costs associated with merit increases, and to a lesser extent, new hires in the lending and deposit services areas. Non-interest expense totaled $9.6 million in the third quarter of 2012, compared to $9.7 million in the prior quarter and $9.4 million in the same quarter a year ago.
About Bank of Marin Bancorp
Bank of Marin, as the sole subsidiary of Bank of Marin Bancorp (NASDAQ: BMRC), is the premier community and business bank in Marin County with 17 offices in Marin, San Francisco, Napa and Sonoma counties. Bank of Marin offers business and personal banking, private banking and wealth management services, with a strong focus on supporting local businesses in the community. Incorporated in 1989, Bank of Marin has received the highest five star rating from Bauer Financial for more than thirteen years (www.bauerfinancial.com) and has been recognized for several years as one of the "Best Places to Work in the North Bay" by the North Bay Business Journal and one of the “Top Corporate Philanthropists" by the San Francisco Business Times. With assets exceeding $1.4 billion, Bank of Marin Bancorp is included in the Russell 2000 Small-Cap Index and has been recognized as a Top 200 Community Bank for the past five years by US Banker Magazine.
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, expected future cash flows on acquired loans, 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 | |||||||||||||||
September 30, 2012 | |||||||||||||||
(dollars in thousands, except per share data; unaudited) | |||||||||||||||
QUARTER-TO-DATE | September 30, 2012 | June 30, 2012 | September 30, 2011 | ||||||||||||
NET INCOME | $ | 3,224 | $ | 4,951 | $ | 4,233 | |||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.59 | $ | 0.91 | $ | 0.79 | |||||||||
RETURN ON AVERAGE ASSETS (ROA) | 0.89 | % | 1.39 | % | 1.23 | % | |||||||||
RETURN ON AVERAGE EQUITY (ROE) | 8.76 | % | 14.01 | % | 12.78 | % | |||||||||
EFFICIENCY RATIO | 57.38 | % | 53.56 | % | 56.13 | % | |||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 4.44 | % | 4.94 | % | 4.76 | % | |||||||||
NET CHARGE-OFFS | $ | 2,396 | $ | 187 | $ | 1,196 | |||||||||
NET CHARGE-OFFS TO AVERAGE LOANS | 0.24 | % | 0.02 | % | 0.12 | % | |||||||||
YEAR-TO-DATE | |||||||||||||||
NET INCOME | $ | 13,115 | $ | 9,891 | $ | 12,181 | |||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 2.41 | $ | 1.82 | $ | 2.26 | |||||||||
RETURN ON AVERAGE ASSETS (ROA) | 1.23 | % | 1.40 | % | 1.24 | % | |||||||||
RETURN ON AVERAGE EQUITY (ROE) | 12.32 | % | 14.20 | % | 12.74 | % | |||||||||
EFFICIENCY RATIO | 55.25 | % | 54.26 | % | 54.02 | % | |||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 4.78 | % | 4.96 | % | 5.25 | % | |||||||||
NET CHARGE-OFFS | $ | 3,700 | $ | 1,304 | $ | 3,718 | |||||||||
NET CHARGE-OFFS TO AVERAGE LOANS | 0.36 | % | 0.13 | % | 0.38 | % | |||||||||
AT PERIOD END | |||||||||||||||
TOTAL ASSETS | $ | 1,435,114 | $ | 1,407,000 | $ | 1,362,717 | |||||||||
LOANS: | |||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 171,662 | $ | 176,002 | $ | 172,389 | |||||||||
REAL ESTATE | |||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 191,397 | $ | 172,757 | $ | 160,558 | |||||||||
COMMERCIAL INVESTOR-OWNED | $ | 438,685 | $ | 453,456 | $ | 420,427 | |||||||||
CONSTRUCTION | $ | 42,857 | $ | 47,948 | $ | 54,806 | |||||||||
HOME EQUITY | $ | 94,939 | $ | 98,565 | $ | 97,323 | |||||||||
OTHER RESIDENTIAL | $ | 53,590 | $ | 55,316 | $ | 63,850 | |||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 20,580 | $ | 21,150 | $ | 23,290 | |||||||||
TOTAL LOANS | $ | 1,013,710 | $ | 1,025,194 | $ | 992,643 | |||||||||
NON-PERFORMING LOANS2: | |||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 6,048 | $ | 1,751 | $ | 3,147 | |||||||||
REAL ESTATE | |||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 1,403 | $ | 1,403 | $ | 2,169 | |||||||||
COMMERCIAL INVESTOR-OWNED | $ | 3,725 | $ | 5,961 | $ | — | |||||||||
CONSTRUCTION | $ | 5,787 | $ | 2,821 | $ | 3,028 | |||||||||
HOME EQUITY | $ | 881 | $ | 981 | $ | 583 | |||||||||
OTHER RESIDENTIAL | $ | 736 | $ | 740 | $ | 1,400 | |||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 652 | $ | 690 | $ | 413 | |||||||||
TOTAL NON-PERFORMING LOANS | $ | 19,232 | $ | 14,347 | $ | 10,740 | |||||||||
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE | $ | 2,055 | $ | 9,837 | $ | 4,967 | |||||||||
LOAN LOSS RESERVE TO LOANS | 1.30 | % | 1.31 | % | 1.33 | % | |||||||||
LOAN LOSS RESERVE TO NON-PERFORMING LOANS | 0.68 | x | 0.94 | x | 1.23 | x | |||||||||
NON-PERFORMING LOANS TO TOTAL LOANS | 1.90 | % | 1.40 | % | 1.08 | % | |||||||||
TEXAS RATIO3 | 12.01 | % | 9.14 | % | 7.52 | % | |||||||||
TOTAL DEPOSITS | $ | 1,258,873 | $ | 1,230,717 | $ | 1,176,525 | |||||||||
LOAN TO DEPOSIT RATIO | 80.5 | % | 83.3 | % | 84.4 | % | |||||||||
STOCKHOLDERS' EQUITY | $ | 147,336 | $ | 144,326 | $ | 133,001 | |||||||||
BOOK VALUE PER SHARE | $ | 27.45 | $ | 26.92 | $ | 24.95 | |||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS4 | 10.27 | % | 10.26 | % | 9.71 | % | |||||||||
TOTAL RISK BASED CAPITAL RATIO-BANK5 | 13.8 | % | 13.6 | % | 13.0 | % | |||||||||
TOTAL RISK BASED CAPITAL RATIO-BANCORP5 | 14.0 | % | 13.9 | % | 13.3 | % | |||||||||
FULL TIME EQUIVALENT EMPLOYEES | 234 | 232 | 227 | ||||||||||||
1 Net interest income is annualized by dividing actual number of days in the period times 360 days. | |||||||||||||||
2 Excludes accruing troubled-debt restructured loans of $15.7 million, $25.2 million and $5.4 million at September 30, 2012, June 30, 2012 and September 30, 2011, respectively. Excludes purchased credit-impaired (PCI) loans with carrying values of $3.1 million, $3.1 million and $3.9 million that were accreting interest at September 30, 2012, June 30, 2012 and September 30, 2011, respectively. These amounts are excluded as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status. Total PCI loans were $4.7 million at September 30, 2012 and June 30, 2012 and $6.5 million at September 30, 2011. | |||||||||||||||
3 (Non-performing assets + 90 day delinquent loans)/(tangible common equity + allowance for loan losses). | |||||||||||||||
4 Tangible common equity includes common stock, retained earnings and unrealized gain on available for sale securities, net of tax, less intangible assets. Tangible assets exclude core deposit intangibles totaling zero at September 30, 2012 and June 30, 2012 and $695 thousand at September 30, 2011. | |||||||||||||||
5 Current period estimated. | |||||||||||||||
4
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CONDITION |
at September 30, 2012, June 30, 2012 and September 30, 2011 |
(in thousands, except share data; unaudited) | September 30, 2012 | June 30, 2012 | September 30, 2011 | ||||||||
Assets | |||||||||||
Cash and due from banks | $ | 141,438 | $ | 98,321 | $ | 130,675 | |||||
Short-term investments | — | — | 2,111 | ||||||||
Cash and cash equivalents | 141,438 | 98,321 | 132,786 | ||||||||
Investment securities | |||||||||||
Held to maturity, at amortized cost | 94,571 | 83,134 | 39,077 | ||||||||
Available for sale (at fair value; amortized cost $143,263, $159,024 and $156,531 at September 30, 2012, June 30, 2012 and September 30, 2011, respectively) | 146,789 | 161,803 | 159,478 | ||||||||
Total investment securities | 241,360 | 244,937 | 198,555 | ||||||||
Loans, net of allowance for loan losses of $13,139, $13,435 and $13,224 at September 30, 2012, June 30, 2012 and September 30, 2011, respectively | 1,000,571 | 1,011,759 | 979,419 | ||||||||
Bank premises and equipment, net | 8,989 | 9,074 | 9,624 | ||||||||
Interest receivable and other assets | 42,756 | 42,909 | 42,333 | ||||||||
Total assets | $ | 1,435,114 | $ | 1,407,000 | $ | 1,362,717 | |||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities | |||||||||||
Deposits | |||||||||||
Non-interest bearing | $ | 408,565 | $ | 399,835 | $ | 373,844 | |||||
Interest bearing | |||||||||||
Transaction accounts | 158,957 | 149,822 | 128,916 | ||||||||
Savings accounts | 91,506 | 86,590 | 74,392 | ||||||||
Money market accounts | 422,874 | 423,682 | 417,505 | ||||||||
CDARS® time accounts | 33,699 | 27,297 | 32,592 | ||||||||
Other time accounts | 143,272 | 143,491 | 149,276 | ||||||||
Total deposits | 1,258,873 | 1,230,717 | 1,176,525 | ||||||||
Federal Home Loan Bank borrowings | 15,000 | 15,000 | 35,000 | ||||||||
Subordinated debenture | — | 5,000 | 5,000 | ||||||||
Interest payable and other liabilities | 13,905 | 11,957 | 13,191 | ||||||||
Total liabilities | 1,287,778 | 1,262,674 | 1,229,716 | ||||||||
Stockholders' Equity | |||||||||||
Preferred stock, no par value, Authorized - 5,000,000 shares, none issued | --- | --- | --- | ||||||||
Common stock, no par value, Authorized - 15,000,000 shares; Issued and outstanding - 5,368,386, 5,362,222 and 5,331,368 at September 30, 2012, June 30, 2012 and September 30, 2011, respectively | 57,862 | 57,543 | 56,670 | ||||||||
Retained Earnings | 87,429 | 85,171 | 74,622 | ||||||||
Accumulated other comprehensive income, net | 2,045 | 1,612 | 1,709 | ||||||||
Total stockholders' equity | 147,336 | 144,326 | 133,001 | ||||||||
Total liabilities and stockholders' equity | $ | 1,435,114 | $ | 1,407,000 | $ | 1,362,717 | |||||
5
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
Three months ended | Nine months ended | ||||||||||||||||||
(in thousands, except per share amounts; unaudited) | September 30, 2012 | June 30, 2012 | September 30, 2011 | September 30, 2012 | September 30, 2011 | ||||||||||||||
Interest income | |||||||||||||||||||
Interest and fees on loans | $ | 14,117 | $ | 15,324 | $ | 15,567 | $ | 44,769 | $ | 48,329 | |||||||||
Interest on investment securities | |||||||||||||||||||
Securities of U.S. Government agencies | 731 | 817 | 1,153 | 2,515 | 2,631 | ||||||||||||||
Obligations of state and political subdivisions | 382 | 455 | 298 | 1,224 | 903 | ||||||||||||||
Corporate debt securities and other | 326 | 285 | 151 | 812 | 433 | ||||||||||||||
Interest on Federal funds sold and short-term investments | 42 | 56 | 56 | 148 | 152 | ||||||||||||||
Total interest income | 15,598 | 16,937 | 17,225 | 49,468 | 52,448 | ||||||||||||||
Interest expense | |||||||||||||||||||
Interest on interest bearing transaction accounts | 48 | 45 | 35 | 137 | 121 | ||||||||||||||
Interest on savings accounts | 26 | 24 | 21 | 72 | 75 | ||||||||||||||
Interest on money market accounts | 181 | 180 | 326 | 544 | 1,004 | ||||||||||||||
Interest on CDARS® time accounts | 19 | 21 | 50 | 72 | 192 | ||||||||||||||
Interest on other time accounts | 254 | 269 | 305 | 827 | 978 | ||||||||||||||
Interest on borrowed funds | 153 | 117 | 1,268 | 417 | 1,977 | ||||||||||||||
Total interest expense | 681 | 656 | 2,005 | 2,069 | 4,347 | ||||||||||||||
Net interest income | 14,917 | 16,281 | 15,220 | 47,399 | 48,101 | ||||||||||||||
Provision for loan losses | 2,100 | 100 | 500 | 2,200 | 4,550 | ||||||||||||||
Net interest income after provision for loan losses | 12,817 | 16,181 | 14,720 | 45,199 | 43,551 | ||||||||||||||
Non-interest income | |||||||||||||||||||
Service charges on deposit accounts | 528 | 549 | 478 | 1,601 | 1,389 | ||||||||||||||
Wealth Management and Trust Services | 507 | 488 | 486 | 1,451 | 1,389 | ||||||||||||||
Debit card interchange fees | 261 | 259 | 221 | 754 | 612 | ||||||||||||||
Merchant interchange fees | 183 | 186 | 58 | 562 | 323 | ||||||||||||||
Earnings on Bank-owned life Insurance | 192 | 192 | 194 | 572 | 556 | ||||||||||||||
Other income | 130 | 126 | 128 | 356 | 476 | ||||||||||||||
Total non-interest income | 1,801 | 1,800 | 1,565 | 5,296 | 4,745 | ||||||||||||||
Non-interest expense | |||||||||||||||||||
Salaries and related benefits | 5,211 | 5,314 | 5,320 | 16,129 | 15,469 | ||||||||||||||
Occupancy and equipment | 1,089 | 1,056 | 1,021 | 3,132 | 3,021 | ||||||||||||||
Depreciation and amortization | 339 | 341 | 329 | 1,021 | 951 | ||||||||||||||
Federal Deposit Insurance Corporation insurance | 221 | 218 | 189 | 672 | 790 | ||||||||||||||
Data processing | 596 | 660 | 642 | 1,862 | 2,133 | ||||||||||||||
Professional services | 519 | 516 | 465 | 1,620 | 1,938 | ||||||||||||||
Other expense | 1,617 | 1,580 | 1,455 | 4,676 | 4,247 | ||||||||||||||
Total non-interest expense | 9,592 | 9,685 | 9,421 | 29,112 | 28,549 | ||||||||||||||
Income before provision for income taxes | 5,026 | 8,296 | 6,864 | 21,383 | 19,747 | ||||||||||||||
Provision for income taxes | 1,802 | 3,345 | 2,631 | 8,268 | 7,566 | ||||||||||||||
Net income | $ | 3,224 | $ | 4,951 | $ | 4,233 | $ | 13,115 | $ | 12,181 | |||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | 0.60 | $ | 0.93 | $ | 0.80 | $ | 2.46 | $ | 2.30 | |||||||||
Diluted | $ | 0.59 | $ | 0.91 | $ | 0.79 | $ | 2.41 | $ | 2.26 | |||||||||
Weighted average shares used to compute net income per common share: | |||||||||||||||||||
Basic | 5,344 | 5,337 | 5,310 | 5,335 | 5,298 | ||||||||||||||
Diluted | 5,455 | 5,419 | 5,390 | 5,433 | 5,381 | ||||||||||||||
Dividends declared per common share | $ | 0.18 | $ | 0.17 | $ | 0.16 | $ | 0.52 | $ | 0.48 | |||||||||
Comprehensive income | |||||||||||||||||||
Net income | $ | 3,224 | $ | 4,951 | $ | 4,233 | $ | 13,115 | $ | 12,181 | |||||||||
Other comprehensive income (loss) | |||||||||||||||||||
Change in net unrealized gain on available for sale securities | 747 | (39 | ) | 271 | 736 | 281 | |||||||||||||
Reclassification adjustment for (gain) losses on sale of securities included in net income | — | (4 | ) | — | 34 | — | |||||||||||||
Net change in unrealized gain on available for sale securities, before tax | 747 | (43 | ) | 271 | 770 | 281 | |||||||||||||
Deferred tax expense (benefit) | 314 | (18 | ) | 114 | 324 | 118 | |||||||||||||
Other comprehensive income (loss), net of tax | 433 | (25 | ) | 157 | 446 | 163 | |||||||||||||
Comprehensive income | $ | 3,657 | $ | 4,926 | $ | 4,390 | $ | 13,561 | $ | 12,344 | |||||||||
6
BANK OF MARIN BANCORP |
AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST INCOME |
Three months ended | Three months ended | Three months ended | |||||||||||||||||||||||
September 30, 2012 | June 30, 2012 | September 30, 2011 | |||||||||||||||||||||||
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 | $ | 84,539 | $ | 42 | 0.19 | % | $ | 70,003 | $ | 56 | 0.32 | % | $ | 94,153 | $ | 56 | 0.23 | % | |||||||
Investment securities 2, 3 | 241,461 | 1,578 | 2.61 | % | 230,609 | 1,750 | 3.04 | % | 195,576 | 1,753 | 3.59 | % | |||||||||||||
Loans 1, 3, 4 | 1,014,708 | 14,265 | 5.50 | % | 1,028,761 | 15,466 | 5.95 | % | 982,165 | 15,676 | 6.25 | % | |||||||||||||
Total interest-earning assets 1 | 1,340,708 | 15,885 | 4.64 | % | 1,329,373 | 17,272 | 5.14 | % | 1,271,894 | 17,485 | 5.38 | % | |||||||||||||
Cash and non-interest-bearing due from banks | 55,727 | 53,269 | 46,799 | ||||||||||||||||||||||
Bank premises and equipment, net | 9,042 | 9,136 | 9,484 | ||||||||||||||||||||||
Interest receivable and other assets, net | 36,474 | 35,813 | 32,825 | ||||||||||||||||||||||
Total assets | $ | 1,441,951 | $ | 1,427,591 | $ | 1,361,002 | |||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 159,721 | $ | 48 | 0.12 | % | $ | 147,463 | $ | 45 | 0.12 | % | $ | 129,862 | $ | 35 | 0.11 | % | |||||||
Savings accounts | 91,020 | 26 | 0.11 | % | 85,118 | 24 | 0.11 | % | 72,288 | 21 | 0.12 | % | |||||||||||||
Money market accounts | 435,110 | 181 | 0.17 | % | 431,625 | 180 | 0.17 | % | 413,186 | 326 | 0.31 | % | |||||||||||||
CDARS® time accounts | 29,519 | 19 | 0.25 | % | 28,045 | 21 | 0.30 | % | 32,139 | 50 | 0.62 | % | |||||||||||||
Other time accounts | 143,668 | 254 | 0.70 | % | 142,189 | 269 | 0.76 | % | 150,199 | 305 | 0.81 | % | |||||||||||||
FHLB fixed-rate advances 1 | 15,000 | 79 | 2.07 | % | 15,000 | 78 | 2.07 | % | 52,391 | 1,232 | 9.33 | % | |||||||||||||
Subordinated debenture 1 | 4,239 | 74 | 6.83 | % | 5,000 | 39 | 3.09 | % | 5,000 | 36 | 2.82 | % | |||||||||||||
Total interest-bearing liabilities | 878,277 | 681 | 0.31 | % | 854,440 | 656 | 0.31 | % | 855,065 | 2,005 | 0.93 | % | |||||||||||||
Demand accounts | 404,677 | 417,354 | 364,502 | ||||||||||||||||||||||
Interest payable and other liabilities | 12,548 | 13,646 | 10,035 | ||||||||||||||||||||||
Stockholders' equity | 146,449 | 142,151 | 131,400 | ||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,441,951 | $ | 1,427,591 | $ | 1,361,002 | |||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 15,204 | 4.44 | % | $ | 16,616 | 4.94 | % | $ | 15,480 | 4.76 | % | |||||||||||||
Reported net interest income/margin 1 | $ | 14,917 | 4.35 | % | $ | 16,281 | 4.85 | % | $ | 15,220 | 4.68 | % | |||||||||||||
Tax-equivalent net interest rate spread | 4.33 | % | 4.83 | % | 4.45 | % | |||||||||||||||||||
Nine months ended | Nine months ended | ||||||||||||||||||||||||
September 30, 2012 | September 30, 2011 | ||||||||||||||||||||||||
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 | $ | 80,562 | $ | 148 | 0.24 | % | $ | 81,609 | $ | 152 | 0.25 | % | |||||||||||||
Federal funds sold | — | — | — | % | 86 | — | 0.01 | % | |||||||||||||||||
Investment securities 2, 3 | 223,503 | 5,050 | 3.01 | % | 169,180 | 4,434 | 3.49 | % | |||||||||||||||||
Loans 1, 3, 4 | 1,023,980 | 45,203 | 5.80 | % | 975,548 | 48,621 | 6.57 | % | |||||||||||||||||
Total interest-earning assets 1 | 1,328,045 | 50,401 | 4.99 | % | 1,226,423 | 53,207 | 5.72 | % | |||||||||||||||||
Cash and non-interest-bearing due from banks | 53,676 | 44,684 | |||||||||||||||||||||||
Bank premises and equipment, net | 9,187 | 8,977 | |||||||||||||||||||||||
Interest receivable and other assets, net | 35,701 | 34,136 | |||||||||||||||||||||||
Total assets | $ | 1,426,609 | $ | 1,314,220 | |||||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 150,150 | $ | 137 | 0.12 | % | $ | 123,436 | $ | 121 | 0.13 | % | |||||||||||||
Savings accounts | 85,011 | 72 | 0.11 | % | 67,963 | 75 | 0.15 | % | |||||||||||||||||
Money market accounts | 434,359 | 544 | 0.17 | % | 396,626 | 1,004 | 0.34 | % | |||||||||||||||||
CDARS® time accounts | 32,541 | 72 | 0.29 | % | 39,402 | 192 | 0.65 | % | |||||||||||||||||
Other time accounts | 145,023 | 827 | 0.76 | % | 151,612 | 978 | 0.86 | % | |||||||||||||||||
FHLB fixed-rate advances 1 | 16,606 | 265 | 2.10 | % | 54,683 | 1,868 | 4.57 | % | |||||||||||||||||
Subordinated debenture 1 | 4,745 | 152 | 4.21 | % | 5,000 | 109 | 2.87 | % | |||||||||||||||||
Total interest-bearing liabilities | 868,435 | 2,069 | 0.32 | % | 838,722 | 4,347 | 0.69 | % | |||||||||||||||||
Demand accounts | 402,276 | 334,747 | |||||||||||||||||||||||
Interest payable and other liabilities | 13,665 | 12,904 | |||||||||||||||||||||||
Stockholders' equity | 142,233 | 127,847 | |||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,426,609 | $ | 1,314,220 | |||||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 48,332 | 4.78 | % | $ | 48,860 | 5.25 | % | |||||||||||||||||
Reported net interest income/margin 1 | $ | 47,399 | 4.69 | % | $ | 48,101 | 5.17 | % | |||||||||||||||||
Tax-equivalent net interest rate spread | 4.67 | % | 5.03 | % | |||||||||||||||||||||
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. Investment security interest is earned on 30/360 day basis monthly. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
7