Disciplined Acquisition Approach and Strong Deposit Growth Drives
Positive Results
NOVATO, Calif.--(BUSINESS WIRE)--
Bank of Marin Bancorp (“Bancorp”) (NASDAQ:BMRC) announced second quarter
2011 earnings of $3.4 million, up 3% from $3.3 million in the second
quarter of 2010. Diluted earnings per share were $0.64, up $0.01 from
the same quarter a year ago. Earnings for the six-month period ended
June 30, 2011 totaled $7.9 million, up 26% from $6.3 million in the same
period a year ago. Diluted earnings per share (EPS) for the six-month
period ended June 30, 2011 totaled $1.48, up $0.29 from $1.19 for the
same period a year ago. Earnings for the first half of 2011 include the
impact of the FDIC1-assisted acquisition of certain assets
and the assumption of certain liabilities of the former Charter Oak Bank
on February 18, 2011 (the “Acquisition”).
“Our earnings reflect the positive impact of the recently acquired
Charter Oak portfolio, as well as certain one-time Acquisition related
costs. We expect the uncharacteristic fluctuations related to the
accounting for the acquired loan portfolio to be reduced over the next
several quarters," said Russell A. Colombo, President and CEO. "In June
we successfully completed the conversion and integration of our Napa
operations, and are very pleased with our results to date.”
Bancorp also provided the following highlights on its operating and
financial performance for the second quarter of 2011:
-
Accretion on purchased non-credit impaired loans recorded to interest
income totaled $887 thousand and $1.3 million in the second and first
quarter of 2011, respectively. The current level of accretion is
expected to continue to decline. Non-recurring pre-tax
Acquisition-related third-party costs totaled $642 thousand (7 cents
of EPS) in the second quarter of 2011 and $348 thousand (4 cents of
EPS) in the first quarter of 2011.
-
Total deposits grew $139.7 million or 14.0%, over a year ago, with
non-interest bearing deposits growing $88.7 million or 34.4%. The
increase reflects the impact of the assumption of $93.9 million of
deposits at fair value of the former Charter Oak Bank, as well as
growth in other markets, partly offset by decreases in CDARS® time
deposits and the disposition of the internet time deposits assumed as
part of the Acquisition.
-
The tax equivalent net interest margin totaled 5.51% in the second
quarter of 2011, up from 5.01% in the same quarter a year ago, and
5.44% last quarter, reflecting the impact of accounting for acquired
loans.
-
Loans grew $47.3 million, or 5.0%, over a year ago, including loans
purchased as part of the Acquisition.
-
Credit quality remains solid with non-performing loans at 0.88% of
loans, down from 1.15% a year ago, and 0.92% at March 31, 2011.
Accruing loans past due 30 to 89 days decreased from $3.7 million a
year ago and $21.9 million at March 31, 2011 to $763 thousand at June
30, 2011. Results also include a $2.0 million higher loan loss
provision from the prior quarter, primarily relating to the
charge-offs of four non-performing loans, and to a lesser extent,
newly identified specific reserves on certain acquired loans.
-
In a conscious effort to deploy excess liquidity, Bancorp grew the
investment securities portfolio by $59.3 million (primarily securities
of U.S. Government agencies) in the second quarter of 2011.
Loans and Credit Quality
Total loans reached $986.6 million at June 30, 2011, representing an
increase of $47.3 million, or 5.0%, over a year ago, and an increase of
$7.7 million or 0.8% from March 31, 2011. The increase from the same
quarter a year ago largely reflects $61.8 million of loans purchased at
fair value without loss share as part of the Acquisition, partially
offset by a decreased emphasis on certain product lines, including
construction lending, as well as payoffs due to the successful
resolution of several high credit risk loans.
"We experienced modest loan growth this quarter which was in line with
our expectations based on current market demand, and a conscious effort
to de-emphasize certain product lines," said Christina Cook, Chief
Financial Officer. "Our credit quality continues to be healthy as a
result of our disciplined lending practices and strong relationships
with our customers."
Non-performing loans decreased to $8.7 million or 0.88% of Bancorp’s
loan portfolio at June 30, 2011, from $10.8 million or 1.15% a year ago
and $9.0 million, or 0.92% at March 31, 2011. Accruing loans past due 30
to 89 days decreased from $3.7 million a year ago and $21.9 million at
March 31, 2011 to $763 thousand at June 30, 2011. The decrease in past
due loans from last quarter relates to $21.1 million of past due loans
that have become current or paid off.
Non-performing loans exclude purchased credit-impaired (“PCI”) loans,
unless such loans experience credit quality deterioration post
Acquisition. PCI loans totaled $7.2 million at June 30th,
2011 (excluding loans totaling $701 thousand that have experienced
credit deterioration post Acquisition), compared to PCI loans of $9.2
million at March 31, 2011. These loans were reflected at fair value as
of the Acquisition date, and are excluded from the non-performing
designation as their accretable yield interest recognition is
independent from the underlying contractual loan delinquency status.
Bancorp’s loan loss provision totaled $3.0 million in the second quarter
of 2011, an increase of $1.7 million from the same quarter a year ago,
and an increase of $2.0 million from the first quarter of 2011. The
provision for loan losses totaled $4.1 million and $2.9 million in the
first half of 2011 and 2010, respectively. Net charge-offs in the second
quarter of 2011 totaled $2.1 million compared to $225 thousand in the
same quarter a year ago, and $372 thousand in the prior quarter. The
increase to the provision for loan losses and net charge-offs primarily
reflects the write-off of two unsecured commercial loans, as well as
declines in the values of real estate collateral securing one problem
commercial loan and one problem construction loan. These loans were part
of Bancorp’s originated loan portfolio. The allowance for loan losses of
$13.9 million totaled 1.41% of loans at June 30, 2011, compared to 1.25%
and 1.34% at June 30, 2010 and March 31, 2011, respectively. The
increases in the allowance for loan losses as a percentage of loans from
both a year ago and a quarter ago reflect newly identified specific
reserves on certain acquired loans.
Deposits
Total deposits grew $139.7 million, or 14%, over a year ago to $1.1
billion. The higher level of deposits reflects growth in most deposit
categories, except for CDARS® time deposits which decreased $49.8
million. Demand deposits comprised 30.4% of total deposits at June 30,
2011, compared to 25.8% a year ago. In addition, Management has
strategically allowed the $9.0 million internet deposits assumed as part
of the Acquisition to run off.
"Our deposit growth continues to be very strong, driven by our
successful Acquisition of Charter Oak Bank in Napa and our expansion
into new markets," said Russell A. Colombo. "We have also experienced
significant deposit increases in our core markets, which is a testament
to the confidence our customers have in us."
Earnings
Net interest income of $17.0 million in the quarter ended June 30, 2011
increased $3.2 million, or 23.6%, from the same period last year, and
increased $1.1 million, or 7.1%, from the prior quarter. The net
interest income for the first half of 2011 totaled $32.9 million,
representing an increase of $6.0 million, or 22.3% from the same period
last year. The increases primarily reflect the Acquisition of loans from
the former Charter Oak Bank and a reduction in the cost of deposits. The
tax-equivalent net interest margin was 5.51% in the second quarter of
2011, compared to 5.01% in the same quarter last year and 5.44% in the
first quarter of 2011. The tax-equivalent net interest margin was 5.48%
in the first half of 2011 compared to 5.00% in the first half of 2010.
The acquired non-credit impaired loans were initially measured and
recorded at their estimated fair values at Acquisition date and are
being accreted back to their unpaid principal balances over the
remaining lives of the loans through interest income. Excluding
accretion, one-time third-party Acquisition-related costs, allocated
overhead, allocated cost of funds and bargain purchase gain, the
acquired operations of the former Charter Oak Bank contributed
approximately $618 thousand, after tax, to Bancorp’s earnings in the
first half of 2011.
Non-interest income in the second quarter of 2011 totaled $1.6 million
and remained relatively unchanged from the same period last year and
from the prior quarter. Non-interest income for the first half of 2011
totaled $3.2 million, an increase of $326 thousand, or 11% from the
first half of 2010. The increase relates to the pre-tax bargain purchase
gain of $146 thousand from the Acquisition and higher Wealth Management
and Trust Services fees.
Non-interest expense totaled $10.0 million in the second quarter of
2011, an increase of $1.4 million, or 16.4%, from the same quarter a
year ago and increased $868 thousand, or 9.5%, from the prior quarter.
Non-interest expense totaled $19.1 million and $16.8 million in the
first half of 2011 and 2010, respectively, representing a 13.8%
increase. The increases primarily reflect higher personnel costs
associated with franchise expansion, as well as data processing costs
associated with the Acquisition. Bancorp incurred one-time
Acquisition-related third-party costs of approximately $642 thousand in
the second quarter of 2011 and $348 thousand in the first quarter of
2011. Bancorp does not expect to incur significant one-time
Acquisition-related third-party costs going forward.
About Bank of Marin Bancorp
Bank of Marin Bancorp's assets total $1.3 billion. Bank of Marin, as the
sole subsidiary of Bank of Marin Bancorp, is the largest community bank
in Marin County with seventeen offices in Marin, San Francisco, Napa and
Sonoma counties. The Bank's Administrative offices are located in
Novato, California. Bank of Marin offers business and personal banking,
private banking and wealth management services, with a strong focus on
supporting the local community. Bank of Marin Bancorp is included in the
Russell 2000 Small-Cap Index, is recognized as a Top 200 Community Bank,
ranked number 43 in the U.S. by US Banker Magazine, and has received the
highest five star rating from Bauer Financial for more than ten years (www.bauerfinancial.com).
Celebrating its 21st anniversary in 2011, Bank of Marin has been
recognized as one of the "Best Places to Work in the Bay Area" and one
of the "Top Corporate Philanthropists" by the San Francisco Business
Times.
Forward Looking Statements
This release may contain certain forward-looking statements that are
based on management’s current expectations regarding economic,
legislative, and regulatory issues that may impact Bancorp’s earnings in
future periods. Forward-looking statements can be identified by the fact
that they do not relate strictly to historical or current facts. They
often include the words “believe,” “expect,” “intend,” “estimate” or
words of similar meaning, or future or conditional verbs such as “will,”
“would,” “should,” “could” or “may.” Factors that could cause future
results to vary materially from current management expectations include,
but are not limited to, estimated fair values related to the assets
acquired and liabilities assumed of the former Charter Oak Bank, 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
June 30, 2011 |
|
(dollars in thousands, except per share data; unaudited)
|
| |
| |
| |
| |
| | | | | | | |
|
SECOND QUARTER | | QTD 2011 | | QTD 2010 | | CHANGE | | % CHANGE |
| | | | | | | |
|
| NET INCOME | |
$3,439
| |
$3,338
| |
$101
| |
3.0%
|
| DILUTED EARNINGS PER COMMON SHARE | |
$0.64
| |
$0.63
| |
$0.01
| |
1.6%
|
| RETURN ON AVERAGE ASSETS (ROA) | |
1.04%
| |
1.14%
| |
(0.10%)
| |
(8.8%)
|
| RETURN ON AVERAGE EQUITY (ROE) | |
10.78%
| |
11.71%
| |
(0.93%)
| |
(7.9%)
|
| EFFICIENCY RATIO | |
53.80%
| |
56.29%
| |
(2.49%)
| |
(4.4%)
|
| TAX-EQUIVALENT NET INTEREST MARGIN 1 | |
5.51%
| |
5.01%
| |
0.50%
| |
10.0%
|
| NET CHARGE-OFFS | |
$2,149
| |
$225
| |
$1,924
| |
855.1%
|
| NET CHARGE-OFFS TO AVERAGE LOANS | |
0.22%
| |
0.02%
| |
0.20%
| |
1000.0%
|
| | | | | | | |
|
YEAR-TO-DATE | | YTD 2011 | | YTD 2010 | | CHANGE | | % CHANGE |
| | | | | | | |
|
| NET INCOME | |
$7,948
| |
$6,285
| |
$1,663
| |
26.5%
|
| DILUTED EARNINGS PER COMMON SHARE | |
$1.48
| |
$1.19
| |
$0.29
| |
24.4%
|
| RETURN ON AVERAGE ASSETS (ROA) | |
1.23%
| |
1.09%
| |
0.14%
| |
12.8%
|
| RETURN ON AVERAGE EQUITY (ROE) | |
12.72%
| |
11.24%
| |
1.48%
| |
13.2%
|
| EFFICIENCY RATIO | |
53.04%
| |
56.54%
| |
(3.50%)
| |
(6.2%)
|
| TAX-EQUIVALENT NET INTEREST MARGIN 1 | |
5.48%
| |
5.00%
| |
0.48%
| |
9.6%
|
| NET CHARGE-OFFS | |
$2,522
| |
$1,745
| |
$777
| |
44.5%
|
| NET CHARGE-OFFS TO AVERAGE LOANS | |
0.26%
| |
0.19%
| |
0.07%
| |
36.8%
|
| | | | | | | |
|
AT PERIOD END | | June 30, 2011 | | June 30, 2010 | | CHANGE | | % CHANGE |
| | | | | | | |
|
| TOTAL ASSETS | |
$1,337,393
| |
$1,185,536
| |
$151,857
| |
12.8%
|
| | | | | | | |
|
| LOANS: | | | | | | | | |
| COMMERCIAL | |
$177,255
| |
$164,711
| |
$12,544
| |
7.6%
|
| REAL ESTATE | | | | | | | | |
| COMMERCIAL OWNER-OCCUPIED | |
$164,990
| |
$152,504
| |
$12,486
| |
8.2%
|
| COMMERCIAL INVESTOR-OWNED | |
$390,549
| |
$347,436
| |
$43,113
| |
12.4%
|
| CONSTRUCTION | |
$66,504
| |
$88,358
| |
($21,854)
| |
(24.7%)
|
| HOME EQUITY | |
$95,212
| |
$87,947
| |
$7,265
| |
8.3%
|
| OTHER RESIDENTIAL | |
$66,886
| |
$70,719
| |
($3,833)
| |
(5.4%)
|
| INSTALLMENT AND OTHER CONSUMER LOANS | |
$25,238
| |
$27,618
| |
($2,380)
| |
(8.6%)
|
| TOTAL LOANS | |
$986,634
| |
$939,293
| |
$47,341
| |
5.0%
|
| | | | | | | |
|
| NON-PERFORMING LOANS 2: | | | | | | | | |
| COMMERCIAL | |
$3,669
| |
$1,354
| |
$2,315
| |
171.0%
|
| REAL ESTATE | | | | | | | | |
| COMMERCIAL OWNER-OCCUPIED | |
$293
| |
$3,455
| |
($3,162)
| |
(91.5%)
|
| CONSTRUCTION | |
$3,263
| |
$5,654
| |
($2,391)
| |
(42.3%)
|
| HOME EQUITY | |
$710
| |
$0
| |
$710
| |
NM
|
| OTHER RESIDENTIAL | |
$138
| |
$0
| |
$138
| |
NM
|
| INSTALLMENT AND OTHER CONSUMER LOANS | |
$621
| |
$310
| |
$311
| |
100.3%
|
| TOTAL NON-PERFORMING LOANS | |
$8,694
| |
$10,773
| |
($2,079)
| |
(19.3%)
|
| | | | | | | |
|
| TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE3 | |
$763
| |
$3,675
| |
($2,912)
| |
(79.2%)
|
| LOAN LOSS RESERVE TO LOANS | |
1.41%
| |
1.25%
| |
0.16%
| |
12.8%
|
| LOAN LOSS RESERVE TO NON-PERFORMING LOANS | |
1.60x
| |
1.09x
| |
0.51x
| |
46.8%
|
| NON-PERFORMING LOANS TO TOTAL LOANS | |
0.88%
| |
1.15%
| |
(0.27%)
| |
(23.5%)
|
| TEXAS RATIO 4 | |
6.11%
| |
8.52%
| |
(2.41%)
| |
(28.3%)
|
| | | | | | | |
|
| TOTAL DEPOSITS | |
$1,138,906
| |
$999,178
| |
$139,728
| |
14.0%
|
| LOAN TO DEPOSIT RATIO | |
86.6%
| |
94.0%
| |
(7.4%)
| |
(7.9%)
|
| STOCKHOLDERS' EQUITY | |
$129,058
| |
$115,968
| |
$13,090
| |
11.3%
|
| BOOK VALUE PER SHARE | |
$24.25
| |
$22.06
| |
$2.19
| |
9.9%
|
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS 5 | |
9.60%
| |
9.78%
| |
(0.18%)
| |
(1.8%)
|
| TOTAL RISK BASED CAPITAL RATIO-BANK 6 | |
12.6%
| |
12.2%
| |
0.4%
| |
3.3%
|
| TOTAL RISK BASED CAPITAL RATIO-BANCORP6 | |
13.0%
| |
12.8%
| |
0.2%
| |
1.6%
|
|
|
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
$1.5 million and $908 thousand at June 30, 2011 and 2010,
respectively. Excludes purchased-credit impaired (PCI) loans that
have not experienced credit quality deterioration post-acquisition
with a carrying value of $7.2 million at June 30, 2011 and zero at
June 30, 2010. These amounts are excluded as PCI loan accretable
yield interest recognition is independent from the underlying
contractual loan delinquency status.
|
3 Excludes purchased-credit impaired loans.
|
4 (Non-performing assets + 90 day delinquent
loans)/(tangible common equity + allowance for loan losses).
|
5 Tangible common equity includes common stock,
retained earnings and unrealized gain on available for sale
securities, net of tax, less intangible assets. Tangible assets
exclude core deposit intangibles totaling $707 thousand at June
30, 2011 and zero at June 30, 2010.
|
6 Current period estimated.
|
|
|
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF
CONDITION
at June 30, 2011, March 31, 2011 and June 30,
2010 |
|
| |
| |
| |
|
(in thousands, except share data; unaudited)
|
|
June 30, 2011
|
|
March 31, 2011
|
|
June 30, 2010
|
| | | | | |
|
| Assets | | | | | | |
|
Cash and due from banks
| |
$
|
88,043
| |
$
|
109,850
| |
$
|
50,477
|
|
Short-term investments
|
|
|
22,116
|
|
|
19,110
|
|
|
18,706
|
|
Cash and cash equivalents
| | |
110,159
| | |
128,960
| | |
69,183
|
| | | | | |
|
|
Investment securities
| | | | | | |
|
Held to maturity, at amortized cost
| | |
35,514
| | |
34,866
| | |
30,324
|
Available for sale (at fair value; amortized cost $164,731,
$107,118 and $108,004 at June 30, 2011, March 31, 2011, and June
30, 2010, respectively)
|
|
|
167,406
|
|
|
108,726
|
|
|
111,781
|
|
Total investment securities
| | |
202,920
| | |
143,592
| | |
142,105
|
| | | | | |
|
Loans, net of allowance for loan losses of $13,920, $13,069 and
$11,773 at June 30, 2011, March 31, 2011 and June 30, 2010,
respectively
| | |
972,714
| | |
965,881
| | |
927,520
|
|
Bank premises and equipment, net
| | |
9,280
| | |
8,750
| | |
8,047
|
|
Interest receivable and other assets
|
|
|
42,320
|
|
|
43,516
|
|
|
38,681
|
| | | | | |
|
| Total assets |
| $ | 1,337,393 |
| $ | 1,290,699 |
| $ | 1,185,536 |
| | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | |
| | | | | |
|
| Liabilities | | | | | | |
|
Deposits
| | | | | | |
|
Non-interest bearing
| |
$
|
346,317
| |
$
|
313,599
| |
$
|
257,643
|
|
Interest bearing
| | | | | | |
|
Transaction accounts
| | |
133,429
| | |
119,331
| | |
98,375
|
|
Savings accounts
| | |
72,458
| | |
67,711
| | |
52,041
|
|
Money market accounts
| | |
403,782
| | |
393,867
| | |
382,277
|
|
CDARS® time accounts
| | |
31,674
| | |
31,670
| | |
81,463
|
|
Other time accounts
|
|
|
151,246
|
|
|
162,182
|
|
|
127,379
|
|
Total deposits
| | |
1,138,906
| | |
1,088,360
| | |
999,178
|
| | | | | |
|
|
Federal Home Loan Bank borrowings
| | |
55,000
| | |
55,000
| | |
55,000
|
|
Subordinated debenture
| | |
5,000
| | |
5,000
| | |
5,000
|
|
Interest payable and other liabilities
|
|
|
9,429
|
|
|
16,855
|
|
|
10,390
|
| | | | | |
|
|
Total liabilities
|
|
|
1,208,335
|
|
|
1,165,215
|
|
|
1,069,568
|
| | | | | |
|
| 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 - 5,321,227 shares, 5,307,247 shares and
5,256,174 shares at June 30, 2011, March 31, 2011 and June 30,
2010, respectively
| | |
56,265
| | |
55,898
| | |
54,420
|
|
Retained earnings
| | |
71,241
| | |
68,653
| | |
59,357
|
|
Accumulated other comprehensive income, net
|
|
|
1,552
|
|
|
933
|
|
|
2,191
|
| | | | | |
|
|
Total stockholders' equity
|
|
|
129,058
|
|
|
125,484
|
|
|
115,968
|
| | | | | |
|
| Total liabilities and stockholders' equity |
| $ | 1,337,393 |
| $ | 1,290,699 |
| $ | 1,185,536 |
| | | | | |
|
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF
INCOME |
|
|
Three months ended
|
|
Six months ended
|
|
(in thousands, unaudited)
|
|
June 30, 2011
|
|
Mar. 31, 2011
|
|
June 30, 2010
|
|
June 30, 2011
|
|
June 30, 2010
|
| | |
| |
| | | |
| |
| Interest income | | | | | | | | | | |
|
Interest and fees on loans
| |
$
|
16,862
| |
$
|
15,900
| |
$
|
14,169
| |
$
|
32,762
| |
$
|
27,850
|
|
Interest on investment securities
| | | | | | | | | | |
|
Securities on U.S. Government agencies
| | |
745
| | |
733
| | |
885
| | |
1,478
| | |
1,613
|
|
Obligations of state and political subdivisions
| | |
303
| | |
302
| | |
285
| | |
605
| | |
571
|
|
Corporate debt securities and other
| | |
171
| | |
111
| | |
138
| | |
282
| | |
308
|
|
Interest on Federal funds sold and short-term investments
|
|
|
56
|
|
|
40
|
|
|
28
|
|
|
96
|
|
|
50
|
|
Total interest income
| | |
18,137
| | |
17,086
| | |
15,505
| | |
35,223
| | |
30,392
|
| | | | | | | | | |
|
| Interest expense | | | | | | | | | | |
|
Interest on interest-bearing transaction accounts
| | |
48
| | |
38
| | |
26
| | |
86
| | |
49
|
|
Interest on savings accounts
| | |
25
| | |
29
| | |
27
| | |
54
| | |
52
|
|
Interest on money market accounts
| | |
341
| | |
337
| | |
729
| | |
678
| | |
1,526
|
|
Interest on CDARS® time accounts
| | |
48
| | |
94
| | |
233
| | |
142
| | |
442
|
|
Interest on other time accounts
| | |
315
| | |
358
| | |
377
| | |
673
| | |
731
|
|
Interest on borrowed funds
|
|
|
357
|
|
|
352
|
|
|
356
|
|
|
709
|
|
|
707
|
|
Total interest expense
|
|
|
1,134
|
|
|
1,208
|
|
|
1,748
|
|
|
2,342
|
|
|
3,507
|
| | | | | | | | | |
|
|
Net interest income
| | |
17,003
| | |
15,878
| | |
13,757
| | |
32,881
| | |
26,885
|
|
Provision for loan losses
|
|
|
3,000
|
|
|
1,050
|
|
|
1,350
|
|
|
4,050
|
|
|
2,900
|
|
Net interest income after provision for loan losses
|
|
|
14,003
|
|
|
14,828
|
|
|
12,407
|
|
|
28,831
|
|
|
23,985
|
| | | | | | | | | |
|
| Non-interest income | | | | | | | | | | |
|
Service charges on deposit accounts
| | |
468
| | |
443
| | |
463
| | |
911
| | |
909
|
|
Wealth Management and Trust Services
| | |
469
| | |
434
| | |
368
| | |
903
| | |
763
|
|
Other income
|
|
|
644
|
|
|
722
|
|
|
674
|
|
|
1,366
|
|
|
1,182
|
|
Total non-interest income
|
|
|
1,581
|
|
|
1,599
|
|
|
1,505
|
|
|
3,180
|
|
|
2,854
|
| | | | | | | | | |
|
| Non-interest expense | | | | | | | | | | |
|
Salaries and related benefits
| | |
5,220
| | |
4,929
| | |
4,561
| | |
10,149
| | |
9,167
|
|
Occupancy and equipment
| | |
1,093
| | |
907
| | |
914
| | |
2,000
| | |
1,812
|
|
Depreciation and amortization
| | |
314
| | |
308
| | |
360
| | |
622
| | |
698
|
|
FDIC insurance
| | |
214
| | |
387
| | |
375
| | |
601
| | |
737
|
|
Data processing
| | |
909
| | |
582
| | |
485
| | |
1,491
| | |
931
|
|
Professional services
| | |
740
| | |
733
| | |
454
| | |
1,473
| | |
886
|
|
Other expense
|
|
|
1,508
|
|
|
1,284
|
|
|
1,442
|
|
|
2,792
|
|
|
2,582
|
|
Total non-interest expense
|
|
|
9,998
|
|
|
9,130
|
|
|
8,591
|
|
|
19,128
|
|
|
16,813
|
|
Income before provision for income taxes
| | |
5,586
| | |
7,297
| | |
5,321
| | |
12,883
| | |
10,026
|
| | | | | | | | | |
|
|
Provision for income taxes
|
|
|
2,147
|
|
|
2,788
|
|
|
1,983
|
|
|
4,935
|
|
|
3,741
|
| Net income |
| $ | 3,439 |
| $ | 4,509 |
| $ | 3,338 |
| $ | 7,948 |
| $ | 6,285 |
| | | | | | | | | |
|
| | | | | | | | | |
|
|
Net income per common share:
| | | | | | | | | | |
|
Basic
| |
$
|
0.65
| |
$
|
0.85
| |
$
|
0.64
| |
$
|
1.50
| |
$
|
1.20
|
|
Diluted
| |
$
|
0.64
| |
$
|
0.84
| |
$
|
0.63
| |
$
|
1.48
| |
$
|
1.19
|
| | | | | | | | | |
|
Weighted average shares used to compute net income per common
share:
| | | | | | | | | | |
|
Basic
| | |
5,300
| | |
5,283
| | |
5,234
| | |
5,292
| | |
5,226
|
|
Diluted
| | |
5,385
| | |
5,366
| | |
5,308
| | |
5,376
| | |
5,302
|
| | | | | | | | | |
|
|
Dividends declared per common share
| |
$
|
0.16
| |
$
|
0.16
| |
$
|
0.15
| |
$
|
0.32
| |
$
|
0.30
|
| | | | | | | | | | | | | | |
|
| Average Statements of Condition and Analysis of Net Interest
Income |
|
|
|
|
Three months ended
June 30, 2011
|
|
Three months ended
March 31, 2011
|
|
Three months ended
June 30, 2010
|
|
(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 (1)
| |
$
|
89,952
| |
$
|
56
| |
0.25
|
%
| |
$
|
62,374
| |
$
|
40
| |
0.26
|
%
| |
$
|
31,457
| |
$
|
28
| |
0.35
|
%
|
|
Investment securities
| | | | | | | | | | | | | | | | | | |
|
U.S. Government agencies (2)
| | |
117,057
| | |
745
| |
2.55
|
%
| | |
92,172
| | |
733
| |
3.18
|
%
| | |
96,255
| | |
885
| |
3.68
|
%
|
|
Corporate CMOs and other (2)
| | |
16,401
| | |
171
| |
4.17
|
%
| | |
15,872
| | |
111
| |
2.80
|
%
| | |
12,586
| | |
138
| |
4.39
|
%
|
|
Obligations of state and political subdivisions (3)
| | |
34,986
| | |
460
| |
5.26
|
%
| | |
34,900
| | |
460
| |
5.27
|
%
| | |
30,347
| | |
433
| |
5.71
|
%
|
|
Loans and banker's acceptances (1) (3) (4)
|
|
|
979,550
|
|
|
16,955
|
|
6.85
|
%
|
|
|
979,674
|
|
|
15,988
|
|
6.53
|
%
|
|
|
932,468
|
|
|
14,236
|
|
6.04
|
%
|
|
Total interest-earning assets (1)
| | |
1,237,946
| | |
18,387
| |
5.88
|
%
| | |
1,184,992
| | |
17,332
| |
5.85
|
%
| | |
1,103,113
| | |
15,720
| |
5.64
|
%
|
|
Cash and non-interest-bearing due from banks
| | |
45,133
| | | | | | |
42,378
| | | | | | |
31,192
| | | | |
|
Bank premises and equipment, net
| | |
8,971
| | | | | | |
8,468
| | | | | | |
7,994
| | | | |
|
Interest receivable and other assets, net
|
|
|
38,391
|
|
|
|
|
|
|
31,400
|
|
|
|
|
|
|
30,807
|
|
|
|
|
|
Total assets
|
|
$
|
1,330,441
|
|
|
|
|
|
$
|
1,267,238
|
|
|
|
|
|
$
|
1,173,106
|
|
|
|
|
|
Liabilities and Stockholders' Equity
| | | | | | | | | | | | | | | | | | |
|
Interest-bearing transaction accounts
| |
$
|
127,544
| |
$
|
48
| |
0.15
|
%
| |
$
|
115,067
| |
$
|
38
| |
0.13
|
%
| |
$
|
96,768
| |
$
|
26
| |
0.11
|
%
|
|
Savings accounts
| | |
69,357
| | |
25
| |
0.14
|
%
| | |
62,574
| | |
29
| |
0.19
|
%
| | |
50,954
| | |
27
| |
0.21
|
%
|
|
Money market accounts
| | |
395,159
| | |
341
| |
0.35
|
%
| | |
382,794
| | |
337
| |
0.36
|
%
| | |
386,755
| | |
729
| |
0.76
|
%
|
|
CDARS® time accounts
| | |
31,879
| | |
48
| |
0.60
|
%
| | |
54,432
| | |
94
| |
0.70
|
%
| | |
76,498
| | |
233
| |
1.22
|
%
|
|
Other time accounts
| | |
156,008
| | |
315
| |
0.81
|
%
| | |
157,631
| | |
358
| |
0.92
|
%
| | |
122,972
| | |
377
| |
1.23
|
%
|
|
FHLB fixed-rate advances
| | |
55,000
| | |
320
| |
2.33
|
%
| | |
58,934
| | |
316
| |
2.17
|
%
| | |
55,000
| | |
319
| |
2.33
|
%
|
|
Subordinated debenture (1)
|
|
|
5,000
|
|
|
37
|
|
2.93
|
%
|
|
|
5,000
|
|
|
36
|
|
2.88
|
%
|
|
|
5,000
|
|
|
37
|
|
2.93
|
%
|
|
Total interest-bearing liabilities
| | |
839,947
| | |
1,134
| |
0.54
|
%
| | |
836,432
| | |
1,208
| |
0.59
|
%
| | |
793,947
| | |
1,748
| |
0.88
|
%
|
|
Demand accounts
| | |
346,469
| | | | | | |
298,075
| | | | | | |
256,211
| | | | |
|
Interest payable and other liabilities
| | |
16,062
| | | | | | |
8,635
| | | | | | |
8,622
| | | | |
|
Stockholders' equity
|
|
|
127,963
|
|
|
|
|
|
|
124,096
|
|
|
|
|
|
|
114,326
|
|
|
|
|
|
Total liabilities & stockholders' equity
|
|
$
|
1,330,441
|
|
|
|
|
|
$
|
1,267,238
|
|
|
|
|
|
$
|
1,173,106
|
|
|
|
|
|
Tax-equivalent net interest income/margin (1)
|
|
|
|
$
|
17,253
|
|
5.51
|
%
|
|
|
|
$
|
16,124
|
|
5.44
|
%
|
|
|
|
$
|
13,972
|
|
5.01
|
%
|
|
Reported net interest income/margin (1)
|
|
|
|
$
|
17,003
|
|
5.43
|
%
|
|
|
|
$
|
15,878
|
|
5.36
|
%
|
|
|
|
$
|
13,757
|
|
4.93
|
%
|
|
Tax-equivalent net interest rate spread
|
|
|
|
|
|
5.34
|
%
|
|
|
|
|
|
5.26
|
%
|
|
|
|
|
|
4.76
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
| |
Six months ended
June 30, 2011
|
|
Six months ended
June 30, 2010
| | | | | | |
|
(Dollars in thousands; unaudited)
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
| | | | | | |
|
Assets
| | | | | | | | | | | | | | | | | | |
|
Interest-bearing due from banks (1)
| |
$
|
76,240
| |
$
|
96
| |
0.25
|
%
| |
$
|
29,122
| |
$
|
50
| |
0.34
|
%
| | | | | | |
|
Investment securities
| | | | | | | | | | | | | | | | | | |
|
U.S. Government agencies (2)
| | |
104,683
| | |
1,478
| |
2.82
|
%
| | |
88,602
| | |
1,613
| |
3.64
|
%
| | | | | | |
|
Corporate CMOs and other (2)
| | |
16,138
| | |
282
| |
3.49
|
%
| | |
13,365
| | |
308
| |
4.61
|
%
| | | | | | |
|
Obligations of state and political subdivisions (3)
| | |
34,943
| | |
921
| |
5.27
|
%
| | |
30,365
| | |
870
| |
5.73
|
%
| | | | | | |
|
Loans and banker's acceptances (1) (3) (4)
|
|
|
979,611
|
|
|
32,943
|
|
6.69
|
%
|
|
|
925,599
|
|
|
27,978
|
|
6.01
|
%
| | | | | | |
|
Total interest-earning assets (1)
| | |
1,211,615
| | |
35,720
| |
5.86
|
%
| | |
1,087,053
| | |
30,819
| |
5.64
|
%
| | | | | | |
|
Cash and non-interest-bearing due from banks
| | |
43,763
| | | | | | |
33,233
| | | | | | | | | | |
|
Bank premises and equipment, net
| | |
8,721
| | | | | | |
7,985
| | | | | | | | | | |
|
Interest receivable and other assets, net
|
|
|
34,915
|
|
|
|
|
|
|
30,410
|
|
|
|
| | | | | | |
|
Total assets
|
|
$
|
1,299,014
|
|
|
|
|
|
$
|
1,158,681
|
|
|
|
| | | | | | |
|
Liabilities and Stockholders' Equity
| | | | | | | | | | | | | | | | | | |
|
Interest-bearing transaction accounts
| |
$
|
121,340
| |
$
|
86
| |
0.14
|
%
| |
$
|
93,714
| |
$
|
49
| |
0.11
|
%
| | | | | | |
|
Savings accounts
| | |
65,984
| | |
54
| |
0.17
|
%
| | |
49,768
| | |
52
| |
0.21
|
%
| | | | | | |
|
Money market accounts
| | |
389,011
| | |
678
| |
0.35
|
%
| | |
396,897
| | |
1,526
| |
0.78
|
%
| | | | | | |
|
CDARS® time accounts
| | |
43,093
| | |
142
| |
0.66
|
%
| | |
68,429
| | |
442
| |
1.30
|
%
| | | | | | |
|
Other time accounts
| | |
156,815
| | |
673
| |
0.87
|
%
| | |
117,984
| | |
731
| |
1.25
|
%
| | | | | | |
|
FHLB borrowings
| | |
56,956
| | |
636
| |
2.25
|
%
| | |
55,000
| | |
635
| |
2.33
|
%
| | | | | | |
|
Subordinated debenture (1)
|
|
|
5,000
|
|
|
73
|
|
2.90
|
%
|
|
|
5,000
|
|
|
72
|
|
2.86
|
%
| | | | | | |
Total interest-bearing liabilities
| | |
838,199
| | |
2,342
| |
0.56
|
%
| | |
786,792
| | |
3,507
| |
0.90
|
%
| | | | | | |
|
Demand accounts
| | |
322,406
| | | | | | |
250,694
| | | | | | | | | | |
|
Interest payable and other liabilities
| | |
12,369
| | | | | | |
8,427
| | | | | | | | | | |
|
Stockholders' equity
|
|
|
126,040
|
|
|
|
|
|
|
112,768
|
|
|
|
| | | | | | |
|
Total liabilities & stockholders' equity
|
|
$
|
1,299,014
|
|
|
|
|
|
$
|
1,158,681
|
|
|
|
| | | | | | |
|
Tax-equivalent net interest income/margin (1)
|
|
|
|
$
|
33,378
|
|
5.48
|
%
|
|
|
|
$
|
27,312
|
|
5.00
|
%
| | | | | | |
|
Reported net interest income/margin (1)
|
|
|
|
$
|
32,881
|
|
5.40
|
%
|
|
|
|
$
|
26,885
|
|
4.92
|
%
| | | | | | |
|
Tax-equivalent net interest rate spread
|
|
|
|
|
|
5.30
|
%
|
|
|
|
|
|
4.74
|
%
| | | | | | |
| | | | | | | | | | | | | | | | | |
|
|
(1) Interest income/expense is divided by actual number of days in
the period times 360 days to correspond to stated interest rate
terms, where applicable.
|
(2) Yields on available-for-sale securities are calculated based
on amortized cost balances rather than fair value, as changes in
fair value are reflected as a component of stockholders' equity.
|
(3) Yields and interest income on tax-exempt securities and loans
are presented on a taxable-equivalent basis using the Federal
statutory rate of 35 percent.
|
(4) Average balances on loans outstanding include non-performing
loans. The amortized portion of net loan origination fees is
included in interest income on loans, representing an adjustment
to the yield.
|
Source: Bank of Marin Bancorp
Contact:
Bank of Marin Bancorp
Sandy Pfaff, 415-459-8800
sandy@pfaffpr.com