Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Bank of Marin Bancorp | form8k-q42012.htm |
EXHIBIT 99.1
 | ||
FOR IMMEDIATE RELEASE | CONTACT: | Sandy Pfaff |
415-819-7447 | ||
sandy@pfaffpr.com | ||
BANK OF MARIN BANCORP REPORTS RECORD ANNUAL EARNINGS
SIGNIFICANT LOAN GROWTH OF $60.2 MILLION IN THE FOURTH QUARTER
NOVATO, CA, January 22, 2013 - Bank of Marin Bancorp, "Bancorp" (NASDAQ: BMRC), parent company of Bank of Marin, announced earnings for the quarter ended December 31, 2012 of $4.7 million, an increase of $1.5 million, or 45.8% from $3.2 million in the third quarter of 2012, and an increase of $1.3 million, or 39.0% from $3.4 million in the fourth quarter of 2011. Diluted earnings per share totaled $0.86 in the fourth quarter of 2012, up $0.27, or 45.8% from $0.59 in the prior quarter, and up $0.23, or 36.5% from $0.63 in the same quarter a year ago. Earnings for the fourth quarter of 2012 reflect a $1.0 million pre-tax gain on the pay-off of a purchased-credit impaired ("PCI") loan. This gain increased fourth quarter diluted earnings per share by 12 cents on an after-tax basis.
2012 record annual earnings totaled $17.8 million, an increase of $2.3 million, or 14.5%, from $15.6 million a year ago. Diluted earnings per share for the year ended December 31, 2012 totaled $3.28, up $0.39, or 13.5%, from $2.89 in the prior year.
“The Bank's overall strong performance demonstrates the solid relationships we have built with customers while also maintaining our high credit quality standards," said Russell A. Colombo, President and Chief Executive Officer. "Our robust loan growth in the fourth quarter reflects our continued focus on business development to build the loan portfolio."
Bancorp also provided the following highlights on its operating and financial performance for the fourth quarter and year ended December 31, 2012:
• | Loan growth in the fourth quarter of 2012 totaled $60.2 million, or 5.9%, primarily due to investor-owned commercial real estate loan originations in the Marin and San Francisco markets. Gross loans totaled $1.1 billion at December 31, 2012. |
• | Credit quality remains solid with non-performing loans at 1.64% of total loans, down from 1.90% in the prior quarter. Accruing loans past due 30 to 89 days decreased from $2.1 million in the prior quarter to $588 thousand at December 31, 2012. |
• | Deposits increased $50.3 million, or 4.2% in 2012 to $1.3 billion, reflecting a favorable shift in the deposit mix from higher-interest bearing time accounts to core deposits. Non-interest bearing deposits comprised 31.1% of total deposits at December 31, 2012. |
• | In a conscious effort to deploy excess liquidity, Bancorp grew the investment portfolio by $52.1 million in the fourth quarter of 2012 and $98.6 million in the year ended December 31, 2012 (primarily investment-grade municipal securities and corporate bonds). |
• | On January 17, 2013, 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 February 1, 2013 and will be payable on February 15, 2013. |
1
"By funding a significant volume of new loans, increasing security purchases, and strategically running off higher-cost, non-relationship deposit accounts, we reduced our excess liquidity and managed our net interest margin," said Christina Cook, Chief Financial Officer. "The strong lending effort also increased the loan-to-deposit ratio from last quarter, reflecting improved utilization of our funding sources."
Loans and Credit Quality
Gross loans totaled $1.1 billion at December 31, 2012 and increased $60.2 million, or 5.9% over last quarter, and increased $42.8 million, or 4.2% over a year ago. The uncertainty of the current economic environment makes the predictability of loan growth for the industry difficult going forward. Non-performing loans totaled $17.7 million, or 1.64%, of Bancorp's loan portfolio at December 31, 2012, compared to $19.2 million, or 1.90%, at September 30, 2012 and $12.0 million, or 1.16%, a year ago. The decrease in non-performing loans from the prior quarter includes a $3.0 million construction loan that was paid off as expected in November 2012, which had been placed on non-accrual status in the preceding quarter. Accruing loans past due 30 to 89 days totaled $588 thousand at December 31, 2012, down from $2.1 million at September 30, 2012 and $7.4 million a year ago.
The provision for loan losses totaled $700 thousand in the fourth quarter of 2012, compared to $2.1 million in the prior quarter and $2.5 million in the same quarter a year ago. The decreases in the fourth quarter of 2012 compared to the prior quarter and same quarter a year ago are primarily due to fewer newly identified problem loans that have significant credit loss exposure. The provision for loan loss totaled $2.9 million and $7.1 million in 2012 and 2011, respectively.
The allowance for loan losses totaled 1.27% of loans at December 31, 2012, compared to 1.30% at September 30, 2012 and 1.42% at December 31, 2011. The decline from the prior quarter end primarily relates to a shift in the mix of loans towards those that have a lower reserve factor. The decline from prior year primarily relates to current year charge-offs of specific reserves established in 2011. Net charge-offs in the fourth quarter of 2012 totaled $178 thousand, compared to $2.4 million in the prior quarter and $1.1 million in the fourth quarter of 2011. Net charge-offs in 2012 totaled $3.9 million compared to $4.8 million in the prior year.
Deposits
Deposits totaled $1.3 billion at both December 31, 2012 and September 30, 2012, and increased $50.3 million, or 4.2% from $1.2 billion at December 31, 2011. The increase in deposits from the prior year primarily reflects increases of $35.0 million in transaction accounts, $30.1 million in non-interest bearing accounts, $17.8 million in savings accounts and $9.3 million in money market accounts, partially offset by decreases of $30.9 million in CDARS® time accounts and $10.9 million in other time accounts.
Earnings
Net interest income totaled $15.8 million in the fourth quarter of 2012, up from $14.9 million in the prior quarter and $15.7 million in the same quarter last year. The tax-equivalent net interest margin was 4.62%, 4.44% and 4.79% for those respective periods. The increase in the fourth quarter of 2012 compared to the prior quarter primarily relates to a $1.0 million gain on the pay-off of a purchased-credit impaired loan.
Net interest income totaled $63.2 million and $63.8 million in 2012 and 2011, respectively. The tax-equivalent net interest margin was 4.74% in 2012 compared to 5.13% in 2011. The decreases in 2012 compared to 2011 primarily relate to a lower level of accretion on purchased loans. In addition, rate concessions and downward repricing on existing loans, as well as new loans yielding 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, as well as the downward repricing on deposits.
2
Key components of our net interest margin were as follows:
Three months ended | ||||||||||||||||
December 31, 2012 | September 30, 2012 | December 31, 2011 | ||||||||||||||
(dollars in thousands; unaudited) | Dollar Amount | Basis point impact to net interest margin | Dollar Amount | Basis point impact to net interest margin | Dollar Amount | Basis point impact to net interest margin | ||||||||||
Accretion on PCI loans | $ | 423 | 12 bps | $ | 231 | 7 bps | $ | 639 | 19 bps | |||||||
Accretion on non-PCI loans | $ | 42 | 1 bps | $ | 232 | 7 bps | $ | 241 | 7 bps | |||||||
Gains on pay-offs of PCI loans | $ | 1,022 | 29 bps | $ | 101 | 3 bps | $ | 208 | 6 bps | |||||||
Interest recoveries | $ | 182 | 5 bps | $ | — | — | $ | 6 | — | |||||||
Interest reversals | $ | (40 | ) | (1 bps) | $ | (115 | ) | (3 bps) | $ | (30 | ) | (1 bps) | ||||
Years ended | ||||||||||
December 31, 2012 | December 31, 2011 | |||||||||
(dollars in thousands; unaudited) | Dollar Amount | Basis point impact to net interest margin | Dollar Amount | Basis point impact to net interest margin | ||||||
Accretion on PCI loans | $ | 1,641 | 12 bps | $ | 1,418 | 11 bps | ||||
Accretion on non-PCI loans | $ | 789 | 6 bps | $ | 2,857 | 23 bps | ||||
Gains on pay-offs of PCI loans | $ | 1,714 | 13 bps | $ | 1,879 | 15 bps | ||||
Interest recoveries | $ | 182 | 1 bps | $ | 6 | — | ||||
Interest reversals | $ | (231 | ) | (2 bps) | $ | (233 | ) | (2 bps) | ||
FHLB Prepayment Penalty - September 2011 | N/A | N/A | $ | (924 | ) | (7 bps) | ||||
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 in the fourth quarter of 2012 totaled $1.8 million and remained relatively consistent with the prior quarter and increased $292 thousand, or 19.2%, from the same quarter a year ago. The 2012 non-interest income totaled $7.1 million, an increase of $843 thousand, or 13.4% from last year. The increases in the year and fourth quarter of 2012 compared to the same periods a year ago primarily relate to higher merchant interchange income and service charges on deposit accounts.
Non-interest expense totaled $9.6 million in both the fourth quarter of 2012 and the prior quarter. Non-interest expense decreased from $9.7 million in the same quarter a year ago, which included a $683 thousand core deposit intangible asset write-off, partially offset by higher personnel costs in the fourth quarter of 2012. Non-interest expense totaled $38.7 million and $38.3 million in 2012 and 2011, respectively, representing a $411 thousand or 1.1% increase. The increase in the full year of 2012 compared to 2011 primarily reflects higher personnel costs associated with merit increases, and to a lesser extent, new hires in the lending and deposit services areas.
3
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 uncertainty 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.
4
BANK OF MARIN BANCORP | |||||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||||
December 31, 2012 | |||||||||||||||
(dollars in thousands, except per share data; unaudited) | Dec. 31, 2012 | Sept. 30, 2012 | Dec. 31, 2011 | ||||||||||||
QUARTER-TO-DATE | |||||||||||||||
NET INCOME | $ | 4,702 | $ | 3,224 | $ | 3,383 | |||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.86 | $ | 0.59 | $ | 0.63 | |||||||||
RETURN ON AVERAGE ASSETS (ROA) | 1.28 | % | 0.89 | % | 0.96 | % | |||||||||
RETURN ON AVERAGE EQUITY (ROE) | 12.50 | % | 8.76 | % | 9.97 | % | |||||||||
EFFICIENCY RATIO | 54.42 | % | 57.38 | % | 56.46 | % | |||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 4.62 | % | 4.44 | % | 4.79 | % | |||||||||
NET CHARGE-OFFS | $ | 178 | $ | 2,396 | $ | 1,085 | |||||||||
NET CHARGE-OFFS TO AVERAGE LOANS | 0.02 | % | 0.24 | % | 0.11 | % | |||||||||
YEAR-TO-DATE | |||||||||||||||
NET INCOME | $ | 17,817 | $ | 15,564 | |||||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 3.28 | $ | 2.89 | |||||||||||
RETURN ON AVERAGE ASSETS (ROA) | 1.24 | % | 1.16 | % | |||||||||||
RETURN ON AVERAGE EQUITY (ROE) | 12.36 | % | 12.01 | % | |||||||||||
EFFICIENCY RATIO | 55.04 | % | 54.62 | % | |||||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 4.74 | % | 5.13 | % | |||||||||||
NET CHARGE-OFFS | $ | 3,878 | $ | 4,803 | |||||||||||
NET CHARGE-OFFS TO AVERAGE LOANS | 0.38 | % | 0.49 | % | |||||||||||
AT PERIOD END | |||||||||||||||
TOTAL ASSETS | $ | 1,434,749 | $ | 1,435,114 | $ | 1,393,263 | |||||||||
LOANS: | |||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 176,431 | $ | 171,662 | $ | 175,790 | |||||||||
REAL ESTATE | |||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 196,406 | $ | 191,397 | $ | 174,705 | |||||||||
COMMERCIAL INVESTOR-OWNED | $ | 509,006 | $ | 438,685 | $ | 446,425 | |||||||||
CONSTRUCTION | $ | 30,665 | $ | 42,857 | $ | 51,957 | |||||||||
HOME EQUITY | $ | 93,237 | $ | 94,939 | $ | 98,043 | |||||||||
OTHER RESIDENTIAL | $ | 49,432 | $ | 53,590 | $ | 61,502 | |||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 18,775 | $ | 20,580 | $ | 22,732 | |||||||||
TOTAL LOANS | $ | 1,073,952 | $ | 1,013,710 | $ | 1,031,154 | |||||||||
NON-PERFORMING LOANS2: | |||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 4,893 | $ | 6,048 | $ | 2,955 | |||||||||
REAL ESTATE | |||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 1,403 | $ | 1,403 | $ | 2,033 | |||||||||
COMMERCIAL INVESTOR-OWNED | $ | 6,843 | $ | 3,725 | $ | 741 | |||||||||
CONSTRUCTION | $ | 2,239 | $ | 5,787 | $ | 3,014 | |||||||||
HOME EQUITY | $ | 545 | $ | 881 | $ | 766 | |||||||||
OTHER RESIDENTIAL | $ | 1,196 | $ | 736 | $ | 1,942 | |||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 533 | $ | 652 | $ | 519 | |||||||||
TOTAL NON-PERFORMING LOANS | $ | 17,652 | $ | 19,232 | $ | 11,970 | |||||||||
CLASSIFIED LOANS (GRADED SUBSTANDARD & DOUBTFUL) | $ | 36,916 | $ | 42,602 | $ | 64,670 | |||||||||
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE | $ | 588 | $ | 2,055 | $ | 7,382 | |||||||||
LOAN LOSS RESERVE TO LOANS | 1.27 | % | 1.30 | % | 1.42 | % | |||||||||
LOAN LOSS RESERVE TO NON-PERFORMING LOANS | 0.77 | x | 0.68 | x | 1.22 | x | |||||||||
NON-PERFORMING LOANS TO TOTAL LOANS | 1.64 | % | 1.90 | % | 1.16 | % | |||||||||
TEXAS RATIO3 | 10.69 | % | 12.01 | % | 7.99 | % | |||||||||
TOTAL DEPOSITS | $ | 1,253,289 | $ | 1,258,873 | $ | 1,202,972 | |||||||||
LOAN TO DEPOSIT RATIO | 85.7 | % | 80.5 | % | 85.7 | % | |||||||||
STOCKHOLDERS' EQUITY | $ | 151,792 | $ | 147,336 | $ | 135,551 | |||||||||
BOOK VALUE PER SHARE | $ | 28.17 | $ | 27.45 | $ | 25.40 | |||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS4 | 10.58 | % | 10.27 | % | 9.73 | % | |||||||||
TOTAL RISK BASED CAPITAL RATIO-BANK5 | 13.6 | % | 13.8 | % | 12.9 | % | |||||||||
TOTAL RISK BASED CAPITAL RATIO-BANCORP5 | 13.7 | % | 14.0 | % | 13.1 | % | |||||||||
FULL TIME EQUIVALENT EMPLOYEES | 238 | 234 | 232 | ||||||||||||
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 $10.8 million, $15.7 million and $6.3 million at December 31, 2012, September 30, 2012 and December 31, 2011, respectively. Excludes purchased credit-impaired (PCI) loans with carrying values of $3.0 million, $3.1 million and $3.4 million that were accreting interest at December 31, 2012, September 30, 2012 and December 31, 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 $4.5 million at December 31, 2012, $4.7 million at September 30, 2012 and $6.0 million at December 31, 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. | |||||||||||||||
5 Current period estimated. | |||||||||||||||
5
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CONDITION |
at December 31, 2012, September 30, 2012 and December 31, 2011 |
(in thousands, except share data; unaudited) | Dec. 31, 2012 | Sept. 30, 2012 | Dec. 31, 2011 | ||||||||
Assets | |||||||||||
Cash and due from banks | $ | 28,349 | $ | 141,438 | $ | 127,732 | |||||
Short-term investments | — | — | 2,011 | ||||||||
Cash and cash equivalents | 28,349 | 141,438 | 129,743 | ||||||||
Investment securities | |||||||||||
Held to maturity, at amortized cost | 139,452 | 94,571 | 59,738 | ||||||||
Available for sale (at fair value; amortized cost $150,420, $143,263 and $132,348 at December 31, 2012, September 30, 2012 and December 31, 2011, respectively) | 153,962 | 146,789 | 135,104 | ||||||||
Total investment securities | 293,414 | 241,360 | 194,842 | ||||||||
Loans, net of allowance for loan losses of $13,661, $13,139 and $14,639 at December 31, 2012, September 30, 2012 and December 31, 2011, respectively | 1,060,291 | 1,000,571 | 1,016,515 | ||||||||
Bank premises and equipment, net | 9,344 | 8,989 | 9,498 | ||||||||
Interest receivable and other assets | 43,351 | 42,756 | 42,665 | ||||||||
Total assets | $ | 1,434,749 | $ | 1,435,114 | $ | 1,393,263 | |||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities | |||||||||||
Deposits | |||||||||||
Non-interest bearing | $ | 389,722 | $ | 408,565 | $ | 359,591 | |||||
Interest bearing | |||||||||||
Transaction accounts | 169,647 | 158,957 | 134,673 | ||||||||
Savings accounts | 93,404 | 91,506 | 75,617 | ||||||||
Money market accounts | 443,742 | 422,874 | 434,461 | ||||||||
CDARS® time accounts | 15,718 | 33,699 | 46,630 | ||||||||
Other time accounts | 141,056 | 143,272 | 152,000 | ||||||||
Total deposits | 1,253,289 | 1,258,873 | 1,202,972 | ||||||||
Federal Home Loan Bank borrowings | 15,000 | 15,000 | 35,000 | ||||||||
Subordinated debenture | — | — | 5,000 | ||||||||
Interest payable and other liabilities | 14,668 | 13,905 | 14,740 | ||||||||
Total liabilities | 1,282,957 | 1,287,778 | 1,257,712 | ||||||||
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 - 5,389,210, 5,368,386 and 5,336,927 at December 31, 2012, September 30, 2012 and December 31, 2011, respectively | 58,573 | 57,862 | 56,854 | ||||||||
Retained earnings | 91,164 | 87,429 | 77,098 | ||||||||
Accumulated other comprehensive income, net | 2,055 | 2,045 | 1,599 | ||||||||
Total stockholders' equity | 151,792 | 147,336 | 135,551 | ||||||||
Total liabilities and stockholders' equity | $ | 1,434,749 | $ | 1,435,114 | $ | 1,393,263 | |||||
6
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
Three months ended | Years ended | ||||||||||||||||||
(in thousands, except per share amounts; unaudited) | Dec. 31, 2012 | Sept. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||||||||
Interest income | |||||||||||||||||||
Interest and fees on loans | $ | 14,634 | $ | 14,117 | $ | 15,150 | $ | 59,403 | $ | 63,479 | |||||||||
Interest on investment securities | |||||||||||||||||||
Securities of U.S. government agencies | 680 | 731 | 847 | 3,195 | 3,478 | ||||||||||||||
Obligations of state and political subdivisions | 565 | 382 | 396 | 1,789 | 1,299 | ||||||||||||||
Corporate debt securities and other | 353 | 326 | 203 | 1,165 | 636 | ||||||||||||||
Interest on Federal funds sold and short-term investments | 66 | 42 | 70 | 214 | 222 | ||||||||||||||
Total interest income | 16,298 | 15,598 | 16,666 | 65,766 | 69,114 | ||||||||||||||
Interest expense | |||||||||||||||||||
Interest on interest bearing transaction accounts | 14 | 48 | 30 | 151 | 151 | ||||||||||||||
Interest on savings accounts | 16 | 26 | 23 | 88 | 98 | ||||||||||||||
Interest on money market accounts | 145 | 181 | 282 | 689 | 1,286 | ||||||||||||||
Interest on CDARS® time accounts | 11 | 19 | 45 | 83 | 237 | ||||||||||||||
Interest on other time accounts | 241 | 254 | 336 | 1,068 | 1,314 | ||||||||||||||
Interest on borrowed funds | 80 | 153 | 232 | 497 | 2,209 | ||||||||||||||
Total interest expense | 507 | 681 | 948 | 2,576 | 5,295 | ||||||||||||||
Net interest income | 15,791 | 14,917 | 15,718 | 63,190 | 63,819 | ||||||||||||||
Provision for loan losses | 700 | 2,100 | 2,500 | 2,900 | 7,050 | ||||||||||||||
Net interest income after provision for loan losses | 15,091 | 12,817 | 13,218 | 60,290 | 56,769 | ||||||||||||||
Non-interest income | |||||||||||||||||||
Service charges on deposit accounts | 529 | 528 | 447 | 2,130 | 1,836 | ||||||||||||||
Wealth Management and Trust Services | 513 | 507 | 445 | 1,964 | 1,834 | ||||||||||||||
Debit card interchange fees | 261 | 261 | 233 | 1,015 | 845 | ||||||||||||||
Merchant interchange fees | 177 | 183 | 30 | 739 | 353 | ||||||||||||||
Earnings on Bank-owned life Insurance | 190 | 192 | 196 | 762 | 752 | ||||||||||||||
Other income | 146 | 130 | 173 | 502 | 649 | ||||||||||||||
Total non-interest income | 1,816 | 1,801 | 1,524 | 7,112 | 6,269 | ||||||||||||||
Non-interest expense | |||||||||||||||||||
Salaries and related benefits | 5,010 | 5,211 | 4,742 | 21,139 | 20,211 | ||||||||||||||
Occupancy and equipment | 1,098 | 1,089 | 981 | 4,230 | 4,002 | ||||||||||||||
Depreciation and amortization | 334 | 339 | 342 | 1,355 | 1,293 | ||||||||||||||
Federal Deposit Insurance Corporation insurance | 245 | 221 | 210 | 917 | 1,000 | ||||||||||||||
Data processing | 652 | 596 | 557 | 2,514 | 2,690 | ||||||||||||||
Professional services | 720 | 519 | 561 | 2,340 | 2,499 | ||||||||||||||
Other expense | 1,523 | 1,617 | 2,341 | 6,199 | 6,588 | ||||||||||||||
Total non-interest expense | 9,582 | 9,592 | 9,734 | 38,694 | 38,283 | ||||||||||||||
Income before provision for income taxes | 7,325 | 5,026 | 5,008 | 28,708 | 24,755 | ||||||||||||||
Provision for income taxes | 2,623 | 1,802 | 1,625 | 10,891 | 9,191 | ||||||||||||||
Net income | $ | 4,702 | $ | 3,224 | $ | 3,383 | $ | 17,817 | $ | 15,564 | |||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | 0.88 | $ | 0.60 | $ | 0.64 | $ | 3.34 | $ | 2.94 | |||||||||
Diluted | $ | 0.86 | $ | 0.59 | $ | 0.63 | $ | 3.28 | $ | 2.89 | |||||||||
Weighted average shares used to compute net income per common share: | |||||||||||||||||||
Basic | 5,357 | 5,344 | 5,313 | 5,341 | 5,302 | ||||||||||||||
Diluted | 5,451 | 5,455 | 5,394 | 5,438 | 5,384 | ||||||||||||||
Dividends declared per common share | $ | 0.18 | $ | 0.18 | $ | 0.17 | $ | 0.70 | $ | 0.65 | |||||||||
Comprehensive income | |||||||||||||||||||
Net income | $ | 4,702 | $ | 3,224 | $ | 3,383 | $ | 17,817 | $ | 15,564 | |||||||||
Other comprehensive income (loss) | |||||||||||||||||||
Change in net unrealized gain on available for sale securities | 16 | 747 | (191 | ) | 752 | 90 | |||||||||||||
Reclassification adjustment for loss on sale of securities included in net income | — | — | — | 34 | — | ||||||||||||||
Net change in unrealized gain on available for sale securities, before tax | 16 | 747 | (191 | ) | 786 | 90 | |||||||||||||
Deferred tax expense (benefit) | 6 | 314 | (81 | ) | 330 | 37 | |||||||||||||
Other comprehensive income (loss), net of tax | 10 | 433 | (110 | ) | 456 | 53 | |||||||||||||
Comprehensive income | $ | 4,712 | $ | 3,657 | $ | 3,273 | $ | 18,273 | $ | 15,617 | |||||||||
7
BANK OF MARIN BANCORP |
AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST INCOME |
Three months ended | Three months ended | Three months ended | |||||||||||||||||||||||
December 31, 2012 | September 30, 2012 | December 31, 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 | $ | 80,884 | $ | 66 | 0.32 | % | $ | 84,539 | $ | 42 | 0.19 | % | $ | 104,190 | $ | 70 | 0.26 | % | |||||||
Investment securities 2, 3 | 265,316 | 1,779 | 2.68 | % | 241,461 | 1,578 | 2.61 | % | 194,533 | 1,616 | 3.32 | % | |||||||||||||
Loans 1, 3, 4 | 1,020,737 | 14,788 | 5.67 | % | 1,014,708 | 14,265 | 5.50 | % | 1,009,916 | 15,289 | 5.92 | % | |||||||||||||
Total interest-earning assets 1 | 1,366,937 | 16,633 | 4.76 | % | 1,340,708 | 15,885 | 4.64 | % | 1,308,639 | 16,975 | 5.08 | % | |||||||||||||
Cash and non-interest-bearing due from banks | 44,225 | 55,727 | 52,574 | ||||||||||||||||||||||
Bank premises and equipment, net | 9,173 | 9,042 | 9,610 | ||||||||||||||||||||||
Interest receivable and other assets, net | 37,512 | 36,474 | 34,324 | ||||||||||||||||||||||
Total assets | $ | 1,457,847 | $ | 1,441,951 | $ | 1,405,147 | |||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 160,605 | $ | 14 | 0.03 | % | $ | 159,721 | $ | 48 | 0.12 | % | $ | 130,894 | $ | 30 | 0.09 | % | |||||||
Savings accounts | 91,609 | 16 | 0.07 | % | 91,020 | 26 | 0.11 | % | 75,217 | 23 | 0.12 | % | |||||||||||||
Money market accounts | 442,006 | 145 | 0.13 | % | 435,110 | 181 | 0.17 | % | 432,728 | 282 | 0.26 | % | |||||||||||||
CDARS® time accounts | 22,497 | 11 | 0.19 | % | 29,519 | 19 | 0.25 | % | 39,850 | 45 | 0.45 | % | |||||||||||||
Other time accounts | 141,375 | 241 | 0.68 | % | 143,668 | 254 | 0.70 | % | 152,619 | 336 | 0.87 | % | |||||||||||||
FHLB borrowings and overnight borrowings 1 | 15,010 | 80 | 2.08 | % | 15,000 | 79 | 2.07 | % | 35,000 | 195 | 2.21 | % | |||||||||||||
Subordinated debenture 1 | — | — | — | % | 4,239 | 74 | 6.83 | % | 5,000 | 37 | 2.90 | % | |||||||||||||
Total interest-bearing liabilities | 873,102 | 507 | 0.23 | % | 878,277 | 681 | 0.31 | % | 871,308 | 948 | 0.43 | % | |||||||||||||
Demand accounts | 420,517 | 404,677 | 386,066 | ||||||||||||||||||||||
Interest payable and other liabilities | 14,524 | 12,548 | 13,214 | ||||||||||||||||||||||
Stockholders' equity | 149,704 | 146,449 | 134,559 | ||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,457,847 | $ | 1,441,951 | $ | 1,405,147 | |||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 16,126 | 4.62 | % | $ | 15,204 | 4.44 | % | $ | 16,027 | 4.79 | % | |||||||||||||
Reported net interest income/margin 1 | $ | 15,791 | 4.52 | % | $ | 14,917 | 4.35 | % | $ | 15,718 | 4.70 | % | |||||||||||||
Tax-equivalent net interest rate spread | 4.53 | % | 4.33 | % | 4.65 | % | |||||||||||||||||||
Year ended | Year ended | ||||||||||||||||||||||||
December 31, 2012 | December 31, 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 | $ | 80,643 | $ | 214 | 0.26 | % | $ | 87,365 | $ | 222 | 0.25 | % | |||||||||||||
Investment securities 2, 3 | 234,014 | 6,829 | 2.92 | % | 175,571 | 6,049 | 3.45 | % | |||||||||||||||||
Loans 1, 3, 4 | 1,023,165 | 59,991 | 5.77 | % | 984,211 | 63,914 | 6.40 | % | |||||||||||||||||
Total interest-earning assets 1 | 1,337,822 | 67,034 | 4.93 | % | 1,247,147 | 70,185 | 5.55 | % | |||||||||||||||||
Cash and non-interest-bearing due from banks | 51,301 | 46,673 | |||||||||||||||||||||||
Bank premises and equipment, net | 9,183 | 9,136 | |||||||||||||||||||||||
Interest receivable and other assets, net | 36,155 | 34,183 | |||||||||||||||||||||||
Total assets | $ | 1,434,461 | $ | 1,337,139 | |||||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 152,778 | $ | 151 | 0.10 | % | $ | 125,316 | $ | 151 | 0.12 | % | |||||||||||||
Savings accounts | 86,670 | 88 | 0.10 | % | 69,792 | 98 | 0.14 | % | |||||||||||||||||
Money market accounts | 436,281 | 689 | 0.16 | % | 405,726 | 1,286 | 0.32 | % | |||||||||||||||||
CDARS® time accounts | 30,016 | 83 | 0.28 | % | 39,514 | 237 | 0.60 | % | |||||||||||||||||
Other time accounts | 144,106 | 1,068 | 0.74 | % | 151,866 | 1,314 | 0.87 | % | |||||||||||||||||
FHLB borrowings and overnight borrowings 1 | 16,205 | 345 | 2.09 | % | 49,722 | 2,062 | 4.15 | % | |||||||||||||||||
Subordinated debenture 1 | 3,552 | 152 | 4.21 | % | 5,000 | 147 | 2.90 | % | |||||||||||||||||
Total interest-bearing liabilities | 869,608 | 2,576 | 0.30 | % | 846,936 | 5,295 | 0.63 | % | |||||||||||||||||
Demand accounts | 406,861 | 347,682 | |||||||||||||||||||||||
Interest payable and other liabilities | 13,881 | 12,983 | |||||||||||||||||||||||
Stockholders' equity | 144,111 | 129,538 | |||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,434,461 | $ | 1,337,139 | |||||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 64,458 | 4.74 | % | $ | 64,890 | 5.13 | % | |||||||||||||||||
Reported net interest income/margin 1 | $ | 63,190 | 4.65 | % | $ | 63,819 | 5.05 | % | |||||||||||||||||
Tax-equivalent net interest rate spread | 4.63 | % | 4.92 | % | |||||||||||||||||||||
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. | |||||||||||||||||||||||||
8