NOVATO, Calif.--(BUSINESS WIRE)--
Bank of Marin Bancorp (Nasdaq:BMRC) President and CEO Russell A. Colombo
announced first quarter 2009 earnings for Bank of Marin Bancorp
("Bancorp") of $3.2 million, compared to $3.3 million in the first
quarter of 2008 and $2.8 million in the fourth quarter of 2008.
"The Bank continues to produce strong results despite the challenging
economic climate," said Russell A. Colombo, President and Chief
Executive Officer. "Excluding non-recurring items, earnings are up and
both loans and deposits experienced healthy growth. The success of
community banks like Bank of Marin contributes to the recovery of our
local economy and is vital to the overall health of our financial
system."
Loans totaled $921.6 million at March 31, 2009, which represents an
increase of $152.0 million, or 19.8%, over the first quarter of 2008.
The mix of loans reflects an increase in the percentage of home equity
lines of credit, as well as a slight increase in the percentage of
commercial loans and a slight decrease in commercial real estate loans
in line with the Bank's strategic plan to diversify loan concentrations.
In the first quarter of 2009 and 2008, the Bank's loan loss provision
totaled $1.2 million and $0.6 million, respectively. The allowance for
loan losses as a percentage of loans totaled 1.12% at March 31, 2009
compared to 1.07% a year ago. The increase in the loan loss reserve
reflects strong loan growth and an increased factor for economic
uncertainty.
Non-accrual loans totaled $7.4 million, or 0.8%, of the Bank's loan
portfolio at March 31, 2009, compared to $6.7 million, or 0.8%, at
December 31, 2008, and a nominal amount a year ago. Loans past due 30 to
89 days totaled $11.7 million at March 31, 2009, 84% of which are less
than 60 days past due. "We do not deem most of these loans to be
potential problem credits," said Colombo. "We expect renewals or
extensions in the normal course of business to return over 90% of the
30-to-89-day-past-due loans to current status."
Deposits totaled $859.4 million at March 31, 2009, which represents an
increase of 13.1% over March 31, 2008. "We are pleased with the growth
in deposits because it reflects the confidence our customers place in
us," said Colombo, "and we will continue to operate in a manner that
positions Bank of Marin as a strong and stable institution in any
economic climate." Late in the first quarter of 2008, the Bank began to
offer a new deposit product, CDARS(R), short for Certificate of Deposit
Account Registry Service, a network through which the Bank offers
Federal Deposit Insurance Corporation insurance coverage in excess of
the $250 thousand regulatory maximum by placing deposits in multiple
banks participating in the network. CDARS(R) reciprocal deposits totaled
$50.6 million at March 31, 2009.
Bancorp's total risk-based capital totaled 11.3% at March 31, 2009 after
repayment of the TARP capital. The first quarter 2009 efficiency ratio
of 53.81% improved eight basis points from the same quarter last year.
"Our capital levels exceed regulatory well-capitalized standards, which
positions us to weather this economic storm," said Christina Cook, Chief
Financial Officer. "Strong capital levels and efficient operations are
priorities of Management."
Diluted earnings per common share in the first quarter of 2009 were
$0.37, compared to $0.63 in the first quarter of 2008. The 2009
first-quarter earnings per common share were reduced by $0.25 as a
result of the non-recurring accelerated accretion of the redemption
premium resulting from our early repurchase of the preferred stock that
had been issued to the U.S. Department of the Treasury (the "Treasury")
under the voluntary Capital Purchase Program ("CPP") discussed below,
and dividends on the preferred stock. In accordance with accounting
guidance, upon repurchase of preferred stock, the excess of the
repurchase price and the carrying amount of the preferred stock should
be subtracted from net earnings to arrive at net earnings available to
common stockholders in the calculation of earnings per share. Further,
the first-quarter 2008 net income includes a pre-tax non-recurring gain
of $457 thousand related to the mandatory redemption of a portion of the
Bank's shares in Visa Inc. and the reversal of a pre-tax charge of $242
thousand that was originally recorded in the fourth quarter of 2007, for
the potential obligation to Visa Inc. in connection with certain
litigation indemnifications provided to Visa Inc. by Visa member banks.
Therefore, first quarter 2008 diluted earnings per share were positively
impacted by $0.09 as a result of these non-recurring items.
In March 2009, Bancorp repurchased all 28,000 shares of preferred stock
issued on December 5, 2008 as part of the CPP. A total of $28.2 million
was paid to the Treasury, including accrued dividends of $179 thousand.
The CPP was established by the Treasury pursuant to the Troubled Asset
Relief Program ("TARP"). Warrants that were issued to the Treasury as
part of TARP to purchase 154,242 shares of common stock at a per share
exercise price of $27.23 remain outstanding.
Net interest income of $12.8 million in the quarter ended March 31, 2009
increased $1.5 million, or 13.4%, from the same period last year,
reflecting growth in interest earning assets and a decline in the cost
of funds, partially offset by lower loan yields in a declining rate
environment. The tax-equivalent net interest margin was 5.15% in the
first quarter of 2009 compared to 5.41% in the first quarter of 2008,
and 5.36% for the fourth quarter of 2008.
Non-interest income totaled $1.2 million in the first quarter of 2009.
Excluding a $457 thousand pre-tax non-recurring gain on the sale of Visa
Inc. shares in the first quarter of 2008, non-interest income is
essentially unchanged between the two periods.
Non-interest expense totaled $7.6 million in the first quarter of 2009.
Excluding the first quarter 2008 reversal of the $242 thousandVisa Inc.
litigation liability initially recorded in the fourth quarter of 2007,
non-interest expense increased $314 thousand, or 4.3%, from the same
period a year ago. The increase reflected higher personnel costs
associated with branch expansion, higher FDIC premiums related to
increased deposits levels and significantly higher FDIC premium
assessments, increased legal fees in connection with our participation
and termination in the CPP program, as well as legal fees associated
with non-accrual loans, partially offset by lower information technology
costs.
About Bank of Marin Bancorp
Bancorp's assets currently exceed $1 billion. Bank of Marin, as the sole
subsidiary of Bancorp, operates twelve branch offices in California and
a commercial loan production office in San Francisco. The Bank's
Administrative offices are located in Novato, California and its Wealth
Management Services are located in Corte Madera, Novato and Petaluma,
California. Bank of Marin has received a superior five-star rating from
Bauer Financial for 39 consecutive quarters, and has been named to the
Bauer Financial recommended list for 68 quarters (www.bauerfinancial.com).
The Bank has also received the distinction of being rated number 19 out
of 317 California banks by The Street as of December 31, 2008, and was
awarded one of the "Best Places to Work in the Bay Area" by the San
Francisco Business Times. For more information, visit Bank of Marin at www.bankofmarin.com.
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 current
financial turmoil 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 or the Bank,
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.
BANK OF MARIN BANCORP
FINANCIAL HIGHLIGHTS
Year To Year Comparison
March 31, 2009
FIRST QUARTER QTR 2009 QTR 2008 CHANGE % CHANGE
NET INCOME $3,229,000 $3,276,000 ($47,000) (1.4%)
DILUTED EARNINGS PER $0.37 $0.63 ($0.26) (41.3%)
COMMON SHARE
RETURN ON AVERAGE ASSETS 1.23% 1.48% (0.25%) (16.9%)
(ROA)
RETURN ON AVERAGE EQUITY 10.28% 14.63% (4.36%) (29.8%)
(ROE)
RETURN ON AVERAGE COMMON 7.77% 14.63% (6.86%) (46.9%)
EQUITY
EFFICIENCY RATIO 53.81% 53.89% (0.08%) (0.1%)
TAX-EQUIVALENT NET 5.15% 5.41% (0.26%) (4.8%)
INTEREST MARGIN
AT PERIOD END Mar 31 2009 Mar 31 2008 CHANGE % CHANGE
TOTAL ASSETS $1,074,828,000 $919,839,000 $154,989,000 16.8%
TOTAL DEPOSITS $859,449,000 $760,162,000 $99,287,000 13.1%
TOTAL LOANS $921,559,000 $769,530,000 $152,029,000 19.8%
TOTAL NONPERFORMING LOANS $7,419,000 $244,000 $7,175,000 2940.6%
TOTAL ACCRUING LOANS 30-89 $11,665,000 $1,006,000 $10,659,000 1059.5%
DAYS PAST DUE
LOAN LOSS RESERVE TO LOANS 1.12% 1.07% 0.05% 4.7%
LOAN LOSS RESERVE TO 1.4x 33.6x (32.2)x (95.8%)
NON-PERFORMING LOANS
STOCKHOLDERS' EQUITY $100,287,000 $90,713,000 $9,574,000 10.6%
BOOK VALUE PER SHARE $19.46 $17.68 $1.78 10.1%
TOTAL CAPITAL TO ASSETS 9.33% 9.86% (0.53%) (5.4%)
TOTAL RISK BASED CAPITAL 11.1% 11.4% (0.30%) (2.6%)
RATIO-BANK*
TOTAL RISK BASED CAPITAL 11.3% 11.9% (0.60%) (5.0%)
RATIO-BANCORP*
*Current period estimated
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENT OF CONDITION
at March 31, 2009, December 31, 2008 and March 31, 2008
(in thousands, except share
data; March 31, 2009 and March 31, 2009 December 31, 2008 March 31, 2008
March 31, 2008 unaudited)
Assets
Cash and due from banks $ 19,587 $ 24,926 $ 28,328
Investment securities
Held to maturity, at 26,978 23,558 20,297
amortized cost
Available for sale (at fair
market value; amortized cost
$75,127, $79,284 and $73,747 76,369 79,952 74,118
March 31, 2009, December 31,
2008 and March 31, 2008,
respectively)
Total investment securities 103,347 103,510 94,415
Loans, net of allowance for
loan losses of $10,289,
$9,950 and $8,199 at March 911,270 880,594 761,331
31, 2009, December 31, 2008
and March 31, 2008,
respectively
Bank premises and equipment, 8,032 8,292 7,887
net
Interest receivable and other 32,592 32,235 27,878
assets
Total assets $ 1,074,828 $ 1,049,557 $ 919,839
Liabilities and Stockholders'
Equity
Liabilities
Deposits
Non-interest bearing $ 218,455 $ 201,363 $ 204,875
Interest bearing
Transaction accounts 89,873 82,223 76,461
Savings and money market 405,370 440,496 396,463
CDARS(R) reciprocal time 50,589 42,892 ---
Other time 95,162 85,316 82,363
Total deposits 859,449 852,290 760,162
Federal funds purchased and
Federal Home Loan Bank 99,100 56,800 55,300
borrowings
Subordinated debenture 5,000 5,000 5,000
Interest payable and other 10,992 9,921 8,664
liabilities
Total liabilities 974,541 924,011 829,126
Stockholders' Equity
Preferred stock, no par
value, $1,000 per share
liquidation preference
Authorized - 5,000,000
shares; Issued and --- 27,055 ---
outstanding - none, 28,000
shares and none at March 31,
2009, December 31, 2008 and
March 31, 2008, respectively
Common stock, no par value
Authorized - 15,000,000
shares
Issued and outstanding -
5,154,430 shares, 5,146,798
shares and 5,131,546 shares 52,221 51,965 50,959
at March 31, 2009, December
31, 2008 and March 31, 2008,
respectively
Retained earnings 47,346 46,138 39,539
Accumulated other 720 388 215
comprehensive income, net
Total stockholders' equity 100,287 125,546 90,713
Total liabilities and $ 1,074,828 $ 1,049,557 $ 919,839
stockholders' equity
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENT OF OPERATIONS
for the three months ended March 31, 2009, December 31, 2008 and March 31, 2008
(in thousands, except per March 31, 2009 December 31, 2008 March 31, 2008
share amounts; unaudited)
Interest income
Interest and fees on loans $ 13,462 $ 13,930 $ 13,312
Interest on investment
securities
Securities of U.S. Government 868 914 867
agencies
Obligations of state and
political subdivisions (tax 246 204 161
exempt)
Corporate debt securities and 1 15 89
other
Interest on Federal funds --- --- 112
sold
Total interest income 14,577 15,063 14,541
Interest expense
Interest on interest bearing 24 67 88
transaction accounts
Interest on savings and money 790 1,303 2,191
market deposits
Interest on CDARS(R) 181 145 ---
reciprocal time deposits
Interest on other time 413 504 751
deposits
Interest on borrowed funds 361 195 221
Total interest expense 1,769 2,214 3,251
Net interest income 12,808 12,849 11,290
Provision for loan losses 1,185 2,200 615
Net interest income after 11,623 10,649 10,675
provision for loan losses
Non-interest income
Service charges on deposit 435 401 406
accounts
Wealth Management Services 316 316 336
Net gain on redemption of --- --- 457
shares in Visa, Inc.
Other income 486 464 503
Total non-interest income 1,237 1,181 1,702
Non-interest expense
Salaries and related benefits 4,346 3,725 4,158
Occupancy and equipment 777 839 768
Depreciation and amortization 350 344 318
Data processing 381 470 445
Professional services 423 439 406
Other expense 1,280 1,277 906
Total non-interest expense 7,557 7,094 7,001
Income before provision for 5,303 4,736 5,376
income taxes
Provision for income taxes 2,074 1,943 2,100
Net income $ 3,229 $ 2,793 $ 3,276
Preferred stock dividends and $ (1,299 ) $ (113 ) ---
accretion
Net income available to $ 1,930 $ 2,680 $ 3,276
common stockholders
Net income per common share:
Basic $ 0.38 $ 0.52 $ 0.64
Diluted $ 0.37 $ 0.52 $ 0.63
Weighted average shares used
to compute net income per
common share:
Basic 5,146 5,137 5,136
Diluted 5,184 5,200 5,238
Dividends declared per common $ 0.14 $ 0.14 $ 0.14
share
Source: Bank of Marin Bancorp
Contact: Bank of Marin Bancorp
Sandy Pfaff, 415-633-3224
spaff@peppercom.com