Reports Third Quarter Earnings of $3.4 Million
NOVATO, Calif.--(BUSINESS WIRE)--
Bank of Marin Bancorp (the “Bank”) (NASDAQ:BMRC) announced 2010 third
quarter earnings of $3.4 million, compared to $3.3 million in the second
quarter of 2010. Diluted earnings per share were $0.63 in both the
second and third quarter of 2010.
Earnings for the nine-month period ended September 30, 2010 totaled $9.6
million, compared to $10.0 million for the same period a year ago.
Diluted earnings per share for the nine-month period ended September 30,
2010 totaled $1.82.
“We have reached an important milestone of $1 billion in deposits, while
continuing our solid and consistent level of earnings. This demonstrates
the continued trust and confidence our customers have in Bank of Marin,
as well as our application of conservative fundamentals, which has
driven our success,” said Russell A. Colombo, President and CEO. “We are
well positioned to continue to expand our markets.”
The Bank also provided the following highlights on its operating and
financial performance for the third quarter of 2010:
-
Deposits exceeded $1 billion, reflecting growth of $74.0 million, or
7.8%, over a year ago. Demand deposits grew 11.9% over a year ago and
comprised 27.0% of the total deposits at September 30, 2010.
-
Credit quality remains solid with a low level of non-performing loans
at 1.13% of loans, or $10.6 million, down from 1.15%, or $10.8
million, at June 30, 2010. The allowance for loan losses as a
percentage of loans totaled 1.28%, compared to 1.25% at June 30, 2010.
-
Total risk-based capital ratio for Bancorp grew to 12.9%, up from
12.8% at June 30, 2010 and 12.1% at September 30, 2009, and continues
to be well above industry requirements for a well-capitalized
institution. Total risk-based capital for Bancorp amounted to $134.4
million as of September 30, 2010.
- Bank of Marin has been recognized as a 2010 Sm-All Star by Sander
O’Neill, an independent investment banking firm. The Sm-All Stars
consist of the 32 top performing small-cap banks and thrifts out of
503 in the nation that are publicly traded with a market cap of less
than $2 billion.
Loans and Credit Quality
Total loans grew to $938.1 million at September 30, 2010, representing
an increase of $18.3 million, or 2.0%, over September 30, 2009 and
remained relatively unchanged from June 30, 2010. The growth in loans
from a year ago primarily reflects an increase in commercial real estate
loans, partially offset by a decrease in construction loans. The opening
of the Santa Rosa loan production office on October 14, 2010 is expected
to position the Bank for additional growth, particularly in commercial
and industrial loans.
“Our loan portfolio has been relatively resilient to the current
economic environment,” said Christina J. Cook, Chief Financial Officer.
“Our credit quality remains solid, which is a testament to our
conservative banking fundamentals, relationship banking, and the
strength of the markets that we serve.”
Non-performing loans totaled $10.6 million, or 1.13% of Bancorp’s loan
portfolio at September 30, 2010, compared to $10.8 million, or 1.15% of
Bancorp’s loan portfolio at June 30, 2010 and $6.0 million or 0.7% a
year ago. Accruing loans past due 30 to 89 days increased to $4.6
million at September 30, 2010 from $3.7 million at June 30, 2010, and
$4.4 million a year ago.
In the third quarter of 2010, Bancorp’s loan loss provision totaled $1.4
million, up $50 thousand from the prior quarter and up $300 thousand
from the same quarter a year ago. The provision for loan losses totaled
$4.3 million and $3.0 million in the first nine months of 2010 and 2009,
respectively. The allowance for loan losses of $12.0 million totaled
1.28% of loans at September 30, 2010 compared to 1.25% and 1.21% at June
30, 2010 and September 30, 2009, respectively. The increase in the
allowance for loan losses as a percentage of loans and the higher
provision for loan losses reflects proactive management of the portfolio
in the continuing difficult economy. Net charge-offs in the third
quarter of 2010 increased to $1.2 million from $225 thousand in the
prior quarter and $117 thousand in the same quarter a year ago,
primarily reflecting the write-down of one impaired construction credit.
Deposits
Total deposits grew $74.0 million or 7.8% over a year ago to $1.0
billion. The higher level reflected growth in most deposit categories.
The notable growth in demand deposits of $29.4 million, or 11.9%,
reflects the Bank’s focus on relationship banking.
“Our newest full service branch in Greenbrae has grown to $27.2 million
in deposit after one year in operation, exceeding expectations,” said
Mr. Colombo. “According to the FDIC1 Deposit Market Share
Report as of June 30, 2010, we increased our market share to 9.9% in
Marin County, strengthening our position as the top community bank in
our core market.”
Earnings
Net interest income of $14.0 million in the quarter ended September 30,
2010 increased $629 thousand, or 4.7%, from the same period last year,
and the year-to-date amount of $40.9 million increased $1.7 million, or
4.3% from the same period last year. The increases reflect growth in the
interest-earning assets and a reduced cost of funds. The tax-equivalent
net interest margin was 4.88% in the third quarter of 2010, compared to
5.18% in the third quarter of 2009 and 5.01% in the prior quarter. The
tax-equivalent net interest margin was 4.96% in the first nine months of
2010 compared to 5.16% in the comparable period 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.
Non-interest income in the third quarter of 2010 remained relatively
unchanged from the same period last year. The 2010 year-to-date
non-interest income of $4.2 million increased $320 thousand, or 8.3%
from the same period last year due to higher Wealth Management and Trust
Services fees and higher merchant interchange income.
Non-interest expense totaled $8.5 million in the third quarter of 2010,
an increase of $731 thousand, or 9.4% from the same quarter a year ago,
primarily due to higher personnel costs associated with branch expansion
and higher professional costs associated with strategic expansion
initiatives. Non-interest expense totaled $25.3 million in the first
nine months of 2010, up $1.4 million, or 5.8% from $23.9 million in the
first nine months of 2009. This increase reflected higher personnel
costs and occupancy costs associated with branch expansion, higher
professional costs and higher data processing costs, partially offset by
the absence of the 2009 FDIC1 special assessment.
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 fourteen branch offices in San
Francisco, Marin and Sonoma counties and one loan production office in
Santa Rosa. 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 20th anniversary in 2010, 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.
1Federal Deposit Insurance Corporation.
| BANK OF MARIN BANCORP |
| FINANCIAL HIGHLIGHTS |
| Year To Year Comparison |
| September 30, 2010 |
|
(dollars in thousands, except per share data; unaudited)
|
|
| |
| |
| |
| | |
THIRD QUARTER | | QTD 2010 | | QTD 2009 | | CHANGE | | % CHANGE | |
| | | | | | | | |
|
| NET INCOME | |
$3,359
| |
$3,601
| |
($242)
| |
(6.7%)
| |
| DILUTED EARNINGS PER COMMON SHARE | |
$0.63
| |
$0.68
| |
($0.05)
| |
(7.4%)
| |
| RETURN ON AVERAGE ASSETS (ROA) | |
1.10%
| |
1.29%
| |
(0.19%)
| |
(14.7%)
| |
| RETURN ON AVERAGE EQUITY (ROE) | |
11.32%
| |
13.46%
| |
(2.14%)
| |
(15.9%)
| |
| EFFICIENCY RATIO | |
55.70%
| |
53.02%
| |
2.68%
| |
5.1%
| |
| TAX-EQUIVALENT NET INTEREST MARGIN 2 | |
4.88%
| |
5.18%
| |
(0.30%)
| |
(5.8%)
| |
| NET CHARGE-OFFS | |
$1,150
| |
$117
| |
$1,033
| |
882.9%
| |
| NET CHARGE-OFFS TO AVERAGE LOANS | |
0.12%
| |
0.01%
| |
0.11%
| |
1100.0%
| |
| | | | | | | | |
|
YEAR-TO-DATE | | YTD 2010 | | YTD 2009 | | CHANGE | | % CHANGE | |
| | | | | | | | |
|
| NET INCOME | |
$9,644
| |
$9,963
| |
($319)
| |
(3.2%)
| |
| DILUTED EARNINGS PER COMMON SHARE 3 | |
$1.82
| |
$1.66
| |
$0.16
| |
9.6%
| |
| RETURN ON AVERAGE ASSETS (ROA) | |
1.10%
| |
1.23%
| |
(0.13%)
| |
(10.6%)
| |
| RETURN ON AVERAGE EQUITY (ROE) | |
11.27%
| |
11.89%
| |
(0.62%)
| |
(5.2%)
| |
| EFFICIENCY RATIO | |
56.25%
| |
55.63%
| |
0.62%
| |
1.1%
| |
| TAX-EQUIVALENT NET INTEREST MARGIN 2 | |
4.96%
| |
5.16%
| |
(0.20%)
| |
(3.9%)
| |
| NET CHARGE-OFFS | |
$2,895
| |
$1,817
| |
$1,078
| |
59.3%
| |
| NET CHARGE-OFFS TO AVERAGE LOANS | |
0.31%
| |
0.20%
| |
0.11%
| |
55.0%
| |
| | | | | | | | |
|
AT PERIOD END | | September 30, 2010 | | September 30, 2009 | | CHANGE | | % CHANGE | |
| | | | | | | | |
|
| TOTAL ASSETS | |
$1,219,214
| |
$1,126,529
| |
$92,685
| |
8.2%
| |
| | | | | | | | |
|
| LOANS: | | | | | | | | | |
| COMMERCIAL | |
$152,188
| |
$152,446
| |
($258)
| |
(0.2%)
| |
| REAL ESTATE | | | | | | | | | |
| COMMERCIAL OWNER-OCCUPIED | |
$144,931
| |
$149,660
| |
($4,729)
| |
(3.2%)
| |
| COMMERCIAL INVESTOR | |
$374,030
| |
$326,159
| |
$47,871
| |
14.7%
| |
| CONSTRUCTION | |
$82,581
| |
$112,419
| |
($29,838)
| |
(26.5%)
| |
| HOME EQUITY | |
$89,052
| |
$84,036
| |
$5,016
| |
6.0%
| |
| OTHER RESIDENTIAL | |
$67,914
| |
$64,139
| |
$3,775
| |
5.9%
| |
| INSTALLMENT AND OTHER CONSUMER LOANS | |
$27,438
| |
$30,985
| |
($3,547)
| |
(11.4%)
| |
| TOTAL LOANS | |
$938,134
| |
$919,844
| |
$18,290
| |
2.0%
| |
| | | | | | | | |
|
| NON-PERFORMING LOANS4: | | | | | | | | | |
| CONSTRUCTION | |
$4,955
| |
$0
| |
$4,955
| |
NM
| |
| COMMERCIAL REAL ESTATE | |
$3,388
| |
$4,353
| |
($965)
| |
(22.2%)
| |
| COMMERCIAL | |
$1,562
| |
$1,346
| |
$216
| |
16.0%
| |
| INSTALLMENT AND OTHER CONSUMER | |
$404
| |
$138
| |
$266
| |
192.8%
| |
| HOME EQUITY | |
$150
| |
$212
| |
($62)
| |
(29.2%)
| |
| RESIDENTIAL REAL ESTATE | |
$150
| |
$0
| |
$150
| |
NM
| |
| TOTAL NON-PERFORMING LOANS | |
$10,609
| |
$6,049
| |
$4,560
| |
75.4%
| |
| | | | | | | | |
|
| TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE | |
$4,636
| |
$4,418
| |
$218
| |
4.9%
| |
| LOAN LOSS RESERVE TO LOANS | |
1.28%
| |
1.21%
| |
0.07%
| |
5.8%
| |
| LOAN LOSS RESERVE TO NON-PERFORMING LOANS | |
1.1x
| |
1.8x
| |
(0.7)x
| |
(38.9%)
| |
| NON-PERFORMING LOANS TO TOTAL LOANS | |
1.13%
| |
0.66%
| |
0.47%
| |
71.2%
| |
| TEXAS RATIO 5 | |
8.23%
| |
5.16%
| |
3.07%
| |
59.5%
| |
| TOTAL DEPOSITS | |
$1,023,278
| |
$949,291
| |
$73,987
| |
7.8%
| |
| LOAN TO DEPOSIT RATIO | |
91.7%
| |
96.9%
| |
(5.2%)
| |
(5.4%)
| |
| STOCKHOLDERS' EQUITY | |
$118,614
| |
$107,416
| |
$11,198
| |
10.4%
| |
| BOOK VALUE PER SHARE | |
$22.56
| |
$20.55
| |
$2.01
| |
9.8%
| |
| TANGIBLE COMMON EQUITY TO ASSETS 6 | |
9.73%
| |
9.54%
| |
0.19%
| |
2.0%
| |
| TOTAL RISK BASED CAPITAL RATIO-BANK 7 | |
12.5%
| |
12.0%
| |
0.50%
| |
4.2%
| |
| TOTAL RISK BASED CAPITAL RATIO-BANCORP 7 | |
12.9%
| |
12.1%
| |
0.80%
| |
6.6%
| |
| | | | | | | | |
|
| 2 Net interest income is annualized by dividing actual
number of days in the period times 360 days.
| |
|
|
3 The earnings per common share of $1.66 for the first
nine months of 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. Warrants that were
issued to the Treasury as part of the TCPP to purchase 154,242
shares of common stock at a per share exercise price of $27.23
remain outstanding. As a result of the participation in the TCPP
and the related repurchase, net income available to common
stockholders for the first quarter of 2009 was reduced by $354
thousand in preferred stock dividends and $945 thousand in
accelerated accretion on the preferred stock
| |
|
|
| 4 Excludes accruing troubled-debt restructured loans of
$1.2 million and $377 thousand at September 30, 2010 and 2009,
respectively.
| |
|
|
| 5 (Non-performing assets + 90 day delinquent
loans)/(tangible common equity + allowance for loan losses)
| |
|
|
| 6 Tangible common equity includes common stock, retained
earnings and unrealized gain on available for sale securities, net
of tax.
| |
|
|
| 7 Current period estimated.
| |
|
|
|
|
| BANK OF MARIN BANCORP |
| CONSOLIDATED STATEMENT OF CONDITION |
| at September 30, 2010, June 30, 2010 and September 30, 2009 |
|
|
|
(in thousands, except share data; unaudited)
|
|
September 30, 2010
|
|
June 30, 2010
|
|
September 30, 2009
|
|
| | |
| | |
| | |
| Assets | | | | | | | | | |
|
Cash and due from banks
| |
$
|
73,546
| |
$
|
50,477
| |
$
|
63,589
|
|
Short-term investments and Federal funds sold
|
|
|
24,208
|
|
|
18,706
|
|
|
---
|
|
Cash and cash equivalents
| | |
97,754
| | |
69,183
| | |
63,589
|
| | | | | | | | |
|
|
Investment securities
| | | | | | | | | |
|
Held to maturity, at amortized cost
| | |
29,809
| | |
30,324
| | |
30,163
|
Available for sale (at fair value; amortized cost $114,625,
$108,004 and $79,850 at September 30, 2010, June 30, 2010, and
September 30, 2009, respectively)
|
|
|
118,113
|
|
|
111,781
|
|
|
81,841
|
|
Total investment securities
| | |
147,922
| | |
142,105
| | |
112,004
|
| | | | | | | | |
|
Loans, net of allowance for loan losses of $12,023, $11,773 and
$11,118 at September 30, 2010, June 30, 2010 and September 30,
2009, respectively
| |
|
926,111
| |
|
927,520
| |
|
908,726
|
|
Bank premises and equipment, net
| | |
8,584
| | |
8,047
| | |
8,257
|
|
Interest receivable and other assets
|
|
|
38,843
|
|
|
38,681
|
|
|
33,953
|
| | | | | | | | |
|
| Total assets |
| $ | 1,219,214 |
| $ | 1,185,536 |
| $ | 1,126,529 |
| | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | |
| | | | | | | | |
|
| Liabilities | | | | | | | | | |
|
Deposits
| | | | | | | | | |
|
Non-interest bearing
| |
$
|
276,320
| |
$
|
257,643
| |
$
|
246,968
|
|
Interest bearing
| | | | | | | | | |
|
Transaction accounts
| | |
99,367
| | |
98,375
| | |
89,355
|
|
Savings accounts
| | |
52,991
| | |
52,041
| | |
51,056
|
|
Money market accounts
| | |
392,381
| | |
382,277
| | |
403,703
|
|
CDARS® time accounts
| | |
70,661
| | |
81,463
| | |
55,535
|
|
Other time accounts
|
|
|
131,558
|
|
|
127,379
|
|
|
102,674
|
|
Total deposits
| | |
1,023,278
| | |
999,178
| | |
949,291
|
| | | | | | | | |
|
|
Federal Home Loan Bank borrowings
| | |
55,000
| | |
55,000
| | |
55,000
|
|
Subordinated debenture
| | |
5,000
| | |
5,000
| | |
5,000
|
|
Interest payable and other liabilities
|
|
|
17,322
|
|
|
10,390
|
|
|
9,822
|
| | | | | | | | |
|
|
Total liabilities
|
|
|
1,100,600
|
|
|
1,069,568
|
|
|
1,019,113
|
| | | | | | | | |
|
| Stockholders' Equity | | | | | | | | | |
|
Preferred stock, no par value, $1,000 per share liquidation
preference
| | | | | | | | | |
|
Authorized - 5,000,000 shares; none issued
| | |
---
| | |
---
| | |
---
|
|
Common stock, no par value
| | | | | | | | | |
|
Authorized - 15,000,000 shares
| | | | | | | | | |
Issued and outstanding - 5,258,487 shares, 5,256,174 shares and
5,226,993 shares at September 30, 2010, June 30, 2010 and
September 30, 2009, respectively
| | |
54,664
| | |
54,420
| | |
53,635
|
|
Retained earnings
| | |
61,927
| | |
59,357
| | |
52,626
|
|
Accumulated other comprehensive income, net
|
|
|
2,023
|
|
|
2,191
|
|
|
1,155
|
| | | | | | | | |
|
|
Total stockholders' equity
|
|
|
118,614
|
|
|
115,968
|
|
|
107,416
|
| | | | | | | | |
|
| Total liabilities and stockholders' equity |
| $ | 1,219,214 |
| $ | 1,185,536 |
| $ | 1,126,529 |
| | | | | | | | |
|
|
|
| BANK OF MARIN BANCORP |
| CONSOLIDATED STATEMENT OF INCOME |
| for the three months ended September 30, 2010, June 30, 2010 and
September 30, 2009 |
|
| |
| |
| |
|
(in thousands, except per share amounts; unaudited)
|
|
September 30, 2010
|
|
June 30, 2010
|
|
September 30, 2009
|
| | | | | |
|
| Interest income | | | | | | |
|
Interest and fees on loans
| |
$
|
14,296
| |
$
|
14,169
| |
$
|
13,860
|
|
Interest on investment securities
| | | | | | |
|
Securities of U.S. Government agencies
| | |
829
| | |
885
| | |
794
|
|
Obligations of state and political subdivisions
| | |
284
| | |
285
| | |
285
|
|
Corporate debt securities and other
| | |
144
| | |
138
| | |
176
|
|
Interest on Federal funds sold and short-term investments
|
|
|
48
|
|
|
28
|
|
|
1
|
|
Total interest income
| | |
15,601
| | |
15,505
| | |
15,116
|
| | | | | |
|
| Interest expense | | | | | | |
|
Interest on interest-bearing transaction accounts
| | |
32
| | |
26
| | |
31
|
|
Interest on savings accounts
| | |
27
| | |
27
| | |
24
|
|
Interest on money market accounts
| | |
602
| | |
729
| | |
797
|
|
Interest on CDARS® time accounts
| | |
221
| | |
233
| | |
186
|
|
Interest on other time accounts
| | |
391
| | |
377
| | |
378
|
|
Interest on borrowed funds
|
|
|
363
|
|
|
356
|
|
|
364
|
|
Total interest expense
|
|
|
1,636
|
|
|
1,748
|
|
|
1,780
|
| | | | | |
|
|
Net interest income
| | |
13,965
| | |
13,757
| | |
13,336
|
|
Provision for loan losses
|
|
|
1,400
|
|
|
1,350
|
|
|
1,100
|
|
Net interest income after provision for loan losses
|
|
|
12,565
|
|
|
12,407
|
|
|
12,236
|
| | | | | |
|
| Non-interest income | | | | | | |
|
Service charges on deposit accounts
| | |
446
| | |
463
| | |
456
|
|
Wealth Management and Trust Services
| | |
364
| | |
368
| | |
350
|
|
Other income
|
|
|
497
|
|
|
674
|
|
|
525
|
|
Total non-interest income
|
|
|
1,307
|
|
|
1,505
|
|
|
1,331
|
| | | | | |
|
| Non-interest expense | | | | | | |
|
Salaries and related benefits
| | |
4,665
| | |
4,561
| | |
4,286
|
|
Occupancy and equipment
| | |
880
| | |
914
| | |
950
|
|
Depreciation and amortization
| | |
335
| | |
360
| | |
335
|
|
FDIC insurance
| | |
388
| | |
375
| | |
307
|
|
Data processing
| | |
491
| | |
485
| | |
400
|
|
Professional services
| | |
550
| | |
454
| | |
366
|
|
Other expense
|
|
|
1,198
|
|
|
1,442
|
|
|
1,132
|
|
Total non-interest expense
|
|
|
8,507
|
|
|
8,591
|
|
|
7,776
|
|
Income before provision for income taxes
| | |
5,365
| | |
5,321
| | |
5,791
|
| | | | | |
|
|
Provision for income taxes
|
|
|
2,006
|
|
|
1,983
|
|
|
2,190
|
| Net income |
| $ | 3,359 |
| $ | 3,338 |
| $ | 3,601 |
| | | | | |
|
|
Net income per common share:
| | | | | | |
|
Basic
| |
$
|
0.64
| |
$
|
0.64
| |
$
|
0.69
|
|
Diluted
| |
$
|
0.63
| |
$
|
0.63
| |
$
|
0.68
|
| | | | | |
|
Weighted average shares used to compute net income per common
share:
| | | | | | |
|
Basic
| | |
5,241
| | |
5,234
| | |
5,205
|
|
Diluted
| | |
5,311
| | |
5,308
| | |
5,274
|
| | | | | |
|
|
Dividends declared per common share
| |
$
|
0.15
| |
$
|
0.15
| |
$
|
0.14
|
| | | | | | | | |
|
| BANK OF MARIN BANCORP |
| CONSOLIDATED STATEMENT OF INCOME |
| for the nine months ended September 30, 2010 and September 30,
2009 |
|
| |
| |
|
(in thousands, except per share amounts; unaudited)
|
|
September 30, 2010
|
|
September 30, 2009
|
| | | |
|
| Interest income | | | | |
|
Interest and fees on loans
| |
$
|
42,146
| |
$
|
40,945
| |
|
Interest on investment securities
| | | | |
|
Securities of U.S. Government agencies
| | |
2,442
| | |
2,471
| |
|
Obligations of state and political subdivisions
| | |
855
| | |
818
| |
|
Corporate debt securities and other
| | |
452
| | |
292
| |
|
Interest on Federal funds sold and short-term investments
|
|
|
98
|
|
|
4
|
|
|
Total interest income
| | |
45,993
| | |
44,530
| |
| | | |
|
| Interest expense | | | | |
|
Interest on interest-bearing transaction accounts
| | |
81
| | |
86
| |
|
Interest on savings accounts
| | |
79
| | |
69
| |
|
Interest on money market accounts
| | |
2,128
| | |
2,359
| |
|
Interest on CDARS® time accounts
| | |
663
| | |
550
| |
|
Interest on other time accounts
| | |
1,122
| | |
1,188
| |
|
Interest on borrowed funds
|
|
|
1,070
|
|
|
1,101
|
|
|
Total interest expense
|
|
|
5,143
|
|
|
5,353
|
|
| | | |
|
|
Net interest income
| | |
40,850
| | |
39,177
| |
|
Provision for loan losses
|
|
|
4,300
|
|
|
2,985
|
|
|
Net interest income after provision for loan losses
|
|
|
36,550
|
|
|
36,192
|
|
| | | |
|
| Non-interest income | | | | |
|
Service charges on deposit accounts
| | |
1,355
| | |
1,323
| |
|
Wealth Management and Trust Services
| | |
1,127
| | |
1,017
| |
|
Other income
|
|
|
1,679
|
|
|
1,501
|
|
|
Total non-interest income
|
|
|
4,161
|
|
|
3,841
|
|
| | | |
|
| Non-interest expense | | | | |
|
Salaries and related benefits
| | |
13,832
| | |
13,050
| |
|
Occupancy and equipment
| | |
2,692
| | |
2,569
| |
|
Depreciation and amortization
| | |
1,033
| | |
1,021
| |
|
FDIC insurance
| | |
1,125
| | |
1,456
| |
|
Data processing
| | |
1,422
| | |
1,173
| |
|
Professional services
| | |
1,436
| | |
1,184
| |
|
Other expense
|
|
|
3,780
|
|
|
3,480
|
|
|
Total non-interest expense
|
|
|
25,320
|
|
|
23,933
|
|
|
Income before provision for income taxes
| | |
15,391
| | |
16,100
| |
| | | |
|
|
Provision for income taxes
|
|
|
5,747
|
|
|
6,137
|
|
| Net income |
| $ | 9,644 |
| $ | 9,963 |
|
| | | |
|
|
Preferred stock dividends and accretion
| |
$
|
---
| |
$
|
(1,299
|
)
|
|
Net income available to common stockholders
| |
$
|
9,644
| |
$
|
8,664
| |
| | | |
|
|
Net income per common share:
| | | | |
|
Basic
| |
$
|
1.84
| |
$
|
1.68
| |
|
Diluted
| |
$
|
1.82
| |
$
|
1.66
| |
| | | |
|
Weighted average shares used to compute net income per common
share:
| | | | |
|
Basic
| | |
5,231
| | |
5,172
| |
|
Diluted
| | |
5,305
| | |
5,224
| |
| | | |
|
|
Dividends declared per common share
| |
$
|
0.45
| |
$
|
0.42
| |
| | | | | | |
|
| Average Statements of Condition and Analysis of Net Interest
Income |
|
|
|
|
Three months ended
September 30, 2010
|
|
Three months ended
June 30, 2010
|
|
Three months ended
September 30, 2009
|
|
(Dollars in thousands; unaudited)
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Assets
| | |
| |
| |
| |
| |
| |
| |
| |
| |
|
Interest-bearing due from banks
| |
$
|
65,461
| |
$
|
48
| |
0.29
|
%
| |
$
|
27,077
| |
$
|
27
| |
0.39
|
%
| |
$
|
---
| |
$
|
---
| |
$
|
---
| |
|
Federal funds sold
| | |
---
| | |
---
| |
---
| | | |
4,380
| | |
1
| |
0.09
|
%
| | |
223
| | |
1
| | |
0.23
|
%
|
|
Investment securities
| | | | | | | | | | | | | | | | | | |
|
U.S. Government agencies (1)
| | |
94,255
| | |
829
| |
3.52
|
%
| | |
96,255
| | |
885
| |
3.68
|
%
| | |
67,514
| | |
794
| | |
4.70
|
%
|
|
Corporate CMOs and other (1)
| | |
12,333
| | |
144
| |
4.67
|
%
| | |
12,586
| | |
138
| |
4.39
|
%
| | |
9,403
| | |
176
| | |
7.49
|
%
|
|
Obligations of state and political subdivisions (2)
| | |
30,068
| | |
431
| |
5.73
|
%
| | |
30,347
| | |
433
| |
5.71
|
%
| | |
30,558
| | |
433
| | |
5.67
|
%
|
|
Loans and banker's acceptances (2) (3) (4)
|
|
|
935,116
|
|
|
14,374
|
|
6.01
|
%
|
|
|
932,468
|
|
|
14,236
|
|
6.04
|
%
|
|
|
916,177
|
|
|
13,924
|
|
|
5.95
|
%
|
|
Total interest-earning assets (4)
| | |
1,137,233
| | |
15,826
| |
5.45
|
%
| | |
1,103,113
| | |
15,720
| |
5.64
|
%
| | |
1,023,875
| | |
15,328
| | |
5.86
|
%
|
|
Cash and non-interest-bearing due from banks
| | |
34,464
| | | | | | |
31,192
| | | | | | |
51,316
| | | | |
|
Bank premises and equipment, net
| | |
8,524
| | | | | | |
7,994
| | | | | | |
8,193
| | | | |
Interest receivable and other assets, net
|
|
|
32,056
|
|
|
|
|
|
|
30,807
|
|
|
|
|
|
|
25,550
|
|
|
|
|
|
Total assets
|
|
$
|
1,212,277
|
|
|
|
|
|
$
|
1,173,106
|
|
|
|
|
|
$
|
1,108,934
|
|
|
|
|
|
Liabilities and Stockholders' Equity
| | | | | | | | | | | | | | | | | | |
|
Interest-bearing transaction accounts
| |
$
|
102,982
| |
$
|
32
| |
0.12
|
%
| |
$
|
96,768
| |
$
|
26
| |
0.11
|
%
| |
$
|
90,448
| |
$
|
31
| | |
0.14
|
%
|
|
Savings accounts
| | |
52,091
| | |
27
| |
0.21
|
%
| | |
50,954
| | |
27
| |
0.21
|
%
| | |
46,731
| | |
24
| | |
0.20
|
%
|
|
Money market accounts
| | |
388,549
| | |
602
| |
0.61
|
%
| | |
386,755
| | |
729
| |
0.76
|
%
| | |
397,692
| | |
797
| | |
0.80
|
%
|
|
CDARS® time accounts
| | |
78,318
| | |
221
| |
1.12
|
%
| | |
76,498
| | |
233
| |
1.22
|
%
| | |
54,923
| | |
186
| | |
1.34
|
%
|
|
Other time accounts
| | |
130,276
| | |
391
| |
1.19
|
%
| | |
122,972
| | |
377
| |
1.23
|
%
| | |
100,157
| | |
378
| | |
1.50
|
%
|
|
FHLB fixed-rate advances
| | |
55,000
| | |
323
| |
2.33
|
%
| | |
55,000
| | |
319
| |
2.33
|
%
| | |
55,000
| | |
323
| | |
2.33
|
%
|
|
Subordinated debenture (4)
|
|
|
5,000
|
|
|
40
|
|
3.13
|
%
|
|
|
5,000
|
|
|
37
|
|
2.93
|
%
|
|
|
5,000
|
|
|
41
|
|
|
3.21
|
%
|
|
Total interest-bearing liabilities
| | |
812,216
| | |
1,636
| |
0.80
|
%
| | |
793,947
| | |
1,748
| |
0.88
|
%
| | |
749,951
| | |
1,780
| | |
0.94
|
%
|
|
Demand accounts
| | |
271,591
| | | | | | |
256,211
| | | | | | |
243,950
| | | | |
|
Interest payable and other liabilities
| | |
10,744
| | | | | | |
8,622
| | | | | | |
8,899
| | | | |
|
Stockholders' equity
|
|
|
117,726
|
|
|
|
|
|
|
114,326
|
|
|
|
|
|
|
106,134
|
|
|
|
|
|
Total liabilities & stockholders' equity
|
|
$
|
1,212,277
|
|
|
|
|
|
$
|
1,173,106
|
|
|
|
|
|
$
|
1,108,934
|
|
|
|
|
|
Tax-equivalent net interest income/margin (4)
|
|
|
|
$
|
14,190
|
|
4.88
|
%
|
|
|
|
$
|
13,972
|
|
5.01
|
%
|
|
|
|
$
|
13,548
|
|
|
5.18
|
%
|
|
Reported net interest income/margin
|
|
|
|
$
|
13,965
|
|
4.81
|
%
|
|
|
|
$
|
13,757
|
|
4.93
|
%
|
|
|
|
$
|
13,336
|
|
|
5.10
|
%
|
|
Tax-equivalent net interest rate spread
|
|
|
|
|
|
4.65
|
%
|
|
|
|
|
|
4.76
|
%
|
|
|
|
|
|
|
4.92
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
| |
Nine months ended
September 30, 2010
|
|
Nine months ended
September 30, 2009
| | | | | | |
|
(Dollars in thousands; unaudited)
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
| | | | | | |
|
Assets
| | | | | | | | | | | | | | | | | | |
|
Interest-bearing due from banks
| |
$
|
37,292
| |
$
|
96
| |
0.34
|
%
| |
$
|
---
| |
$
|
---
| |
$ ---
| | | | | | |
|
Federal funds sold
| | |
4,076
| | |
2
| |
0.06
|
%
| | |
2,342
| | |
4
| |
0.23
|
%
| | | | | | |
|
Investment securities
| | | | | | | | | | | | | | | | | | |
|
U.S. Government agencies (1)
| | |
90,507
| | |
2,442
| |
3.60
|
%
| | |
70,590
| | |
2,471
| |
4.67
|
%
| | | | | | |
|
Corporate CMOs and other (1)
| | |
13,017
| | |
452
| |
4.63
|
%
| | |
5,493
| | |
292
| |
7.09
|
%
| | | | | | |
|
Obligations of state and political subdivisions (2)
| | |
30,265
| | |
1,298
| |
5.98
|
%
| | |
28,880
| | |
1,243
| |
5.74
|
%
| | | | | | |
|
Loans and banker's acceptances (2) (3) (4)
|
|
|
928,807
|
|
|
42,358
|
|
5.49
|
%
|
|
|
909,417
|
|
|
41,137
|
|
5.96
|
%
| | | | | | |
|
Total interest-earning assets (4)
| | |
1,103,964
| | |
46,648
| |
5.57
|
%
| | |
1,016,722
| | |
45,147
| |
5.86
|
%
| | | | | | |
|
Cash and non-interest-bearing due from banks
| | |
33,648
| | | | | | |
32,637
| | | | | | | | | | |
|
Bank premises and equipment, net
| | |
8,167
| | | | | | |
8,119
| | | | | | | | | | |
|
Interest receivable and other assets, net
|
|
|
30,964
|
|
|
|
|
|
|
25,832
|
|
|
|
| | | | | | |
|
Total assets
|
|
$
|
1,176,743
|
|
|
|
|
|
$
|
1,083,310
|
|
|
|
| | | | | | |
|
Liabilities and Stockholders' Equity
| | | | | | | | | | | | | | | | | | |
|
Interest-bearing transaction accounts
| |
$
|
96,837
| |
$
|
81
| |
0.11
|
%
| |
$
|
89,789
| |
$
|
86
| |
0.13
|
%
| | | | | | |
|
Savings accounts
| | |
50,551
| | |
79
| |
0.21
|
%
| | |
45,451
| | |
69
| |
0.20
|
%
| | | | | | |
|
Money market accounts
| | |
394,084
| | |
2,128
| |
0.72
|
%
| | |
379,010
| | |
2,359
| |
0.83
|
%
| | | | | | |
|
CDARS® time accounts
| | |
71,762
| | |
663
| |
1.24
|
%
| | |
51,229
| | |
550
| |
1.44
|
%
| | | | | | |
|
Other time accounts
| | |
122,126
| | |
1,122
| |
1.23
|
%
| | |
95,879
| | |
1,188
| |
1.66
|
%
| | | | | | |
|
Overnight borrowings
| | |
---
| | |
---
| |
---
| | | |
14,268
| | |
29
| |
0.26
|
%
| | | | | | |
|
FHLB fixed-rate advances
| | |
55,000
| | |
958
| |
2.33
|
%
| | |
53,388
| | |
929
| |
2.33
|
%
| | | | | | |
|
Subordinated debenture (4)
|
|
|
5,000
|
|
|
112
|
|
2.95
|
%
|
|
|
5,000
|
|
|
143
|
|
3.77
|
%
| | | | | | |
|
Total interest-bearing liabilities
| | |
795,360
| | |
5,143
| |
0.86
|
%
| | |
734,014
| | |
5,353
| |
0.98
|
%
| | | | | | |
|
Demand accounts
| | |
257,736
| | | | | | |
227,587
| | | | | | | | | | |
|
Interest payable and other liabilities
| | |
9,208
| | | | | | |
9,720
| | | | | | | | | | |
|
Stockholders' equity
|
|
|
114,439
|
|
|
|
|
|
|
111,989
|
|
|
|
| | | | | | |
|
Total liabilities & stockholders' equity
|
|
$
|
1,176,743
|
|
|
|
|
|
$
|
1,083,310
|
|
|
|
| | | | | | |
|
Tax-equivalent net interest income/margin (4)
|
|
|
|
$
|
41,505
|
|
4.96
|
%
|
|
|
|
$
|
39,794
|
|
5.16
|
%
| | | | | | |
|
Reported net interest income/margin
|
|
|
|
$
|
40,850
|
|
4.88
|
%
|
|
|
|
$
|
39,177
|
|
5.08
|
%
| | | | | | |
|
Tax-equivalent net interest rate spread
|
|
|
|
|
|
4.71
|
%
|
|
|
|
|
|
4.88
|
%
| | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
(1) 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.
|
(2) 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.
|
(3) 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.
|
|
(4) 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.
|
Source: Bank of Marin Bancorp
Contact:
For Bank of Marin Bancorp
Sandy Pfaff, 415-459-8800
sandy@pfaffpr.com