Results Driven by Strong Core Business Fundamentals
NOVATO, Calif.--(BUSINESS WIRE)--
Bank of Marin Bancorp, “Bancorp” (NASDAQ:BMRC), parent company of Bank
of Marin, announced first quarter 2014 earnings of $4.5 million,
compared to $2.3 million in the fourth quarter of 2013 and $4.9 million
in the first quarter of 2013. Diluted earnings per share totaled $0.76
in the first quarter of 2014, compared to $0.41 in the prior quarter and
$0.89 in the same quarter a year ago.
“The Bank of Alameda system conversion in March went smoothly due to a
tremendous team effort across our organization. With this positive
momentum, we continue our focus on team integration and customer
relationships in the East Bay,” said Russell A. Colombo, President and
Chief Executive Officer. “We also have hired several key commercial
lenders in Napa and Santa Rosa, positioning us for future growth in the
North Bay.”
Bancorp also provided the following highlights on its operating and
financial performance for the first quarter of 2014:
-
First quarter 2014 results include several non-recurring non-interest
expense items, the net impact of which was a $0.05 reduction in
diluted earnings per share. This includes $746 thousand in one-time
expenses related to the acquisition of NorCal Community Bancorp
(“NorCal”), parent company of Bank of Alameda. One-time
acquisition-related expenses of $3.4 million in the fourth quarter of
2013 negatively impacted diluted earnings per share by $0.38.
-
Credit quality improved with non-accrual loans representing 0.79% of
total loans at March 31, 2014, down from 0.92% at year-end and 1.43% a
year ago. Net charge-offs for the first quarter totaled $142 thousand,
compared to net recoveries of $266 thousand in the prior quarter and
net recoveries of $3 thousand in the same quarter a year ago. The
current quarter charge-offs primarily relate to the resolution of two
non-accrual loans, for which reserves had been previously established.
-
Deposits totaled $1.6 billion at both March 31, 2014 and December 31,
2013, and grew $344.8 million, or 28.0%, over a year ago. The increase
primarily reflects deposits acquired from the NorCal acquisition, as
well as organic growth in Marin and Sonoma markets.
-
The total risk-based capital ratio for Bancorp was 13.5% at March 31,
2014 compared to 13.2% at December 31, 2013 and 14.0% at March 31,
2013. The ratio fell compared to the same quarter a year ago due to
$10.7 million in goodwill and intangibles related to the NorCal
acquisition, which are excluded from regulatory capital. The
risk-based capital ratio continues to be well above regulatory
requirements for a well-capitalized institution. Tangible common
equity to tangible assets totaled 9.8% at March 31, 2014, compared to
9.5% at the end of the prior quarter and 11.0% a year ago. The ratio
fell compared to the same quarter a year ago due to the NorCal
acquisition.
-
On April 17, 2014, the Board of Directors declared a quarterly cash
dividend of $0.19 per share. The cash dividend is payable to
shareholders of record at the close of business on May 2, 2014 and
will be payable on May 9, 2014.
Loans and Credit Quality
Gross loans totaled $1.3 billion at both March 31, 2014 and December 31,
2013, and totaled $1.1 billion at March 31, 2013. The increase in loans
from a year ago reflects both loans acquired from NorCal and organic
growth. Non-accrual loans totaled $10.1 million, or 0.79%, of Bancorp's
loan portfolio at March 31, 2014, a decrease from $11.7 million, or
0.92%, at December 31, 2013 and $15.3 million, or 1.43%, a year ago. The
decrease in non-accrual loans from year-end primarily relates to $1.4
million in commercial and construction loans that were resolved in the
first quarter. Accruing loans past due 30 to 89 days totaled $2.8
million at March 31, 2014, compared to $995 thousand at December 31,
2013 and $8.1 million a year ago.
The provision for loan losses totaled $150 thousand in both the first
quarter of 2014 and the fourth quarter of 2013, compared to a reversal
in the provision for loan losses totaling $230 thousand in the same
quarter a year ago. The ratio of loan loss reserve to loans decreased
slightly from 1.12% at December 31, 2013 to 1.11% at March 31, 2014.
Deposits
Deposits totaled $1.6 billion at both March 31, 2014 and December 31,
2013, compared to $1.2 billion at March 31, 2013. The increase in
deposits from a year ago results from the NorCal acquisition and organic
growth, with higher balances seen in most deposit categories, except for
CDARS time deposits. The decrease in money market accounts compared to
prior quarter-end is primarily due to attrition in a small population of
high-priced deposits after repricing at conversion. Non-interest bearing
deposits totaled 44.5% of total deposits as of March 31, 2014, compared
to 40.8% at the prior quarter-end and 39.5% at March 31, 2013. The
increase primarily reflects the conversion of certain NorCal interest
bearing accounts to non-interest bearing Bank of Marin accounts.
Earnings
“With the successful system conversion of Bank of Alameda complete and
the remaining costs accounted for this quarter, we are pleased with the
trends in our efficiency ratio and return on assets,” said Tani Girton,
Chief Financial Officer. “We had a healthy increase in net interest
margin thanks to a full quarter of East Bay earnings and the investment
of excess cash into loans and securities.”
Net interest income totaled $17.9 million in the first quarter of 2014
compared to $15.6 million in the prior quarter and $14.8 million in the
same quarter a year ago. The increase from prior quarter and the same
quarter a year ago primarily relates to a full quarter of interest
income on loans acquired from NorCal and a higher volume of investment
securities. The tax-equivalent net interest margin was 4.25%, 4.05% and
4.48% for those respective periods. The accretion of the purchase
discounts on loans acquired from NorCal and a shift towards higher
yielding assets contributed to the increase in net-interest margin in
the first quarter of 2014 compared to the prior quarter. The decrease in
the first quarter of 2014 compared to the same quarter a year ago
relates to the impact of the low interest rate environment on our loan
portfolio rates, an increase in cash balances as a percentage of
interest-earning assets and the absence of gains on pay-offs of purchase
credit-impaired loans (“PCI”). This decrease is partially offset by the
accretive effects of loans from the NorCal acquisition.
Summary of Charter Oak and NorCal acquisitions' impact on net interest
margin:
|
|
|
Three months ended
|
| | | March 31, 2014 |
| December 31, 2013 |
| March 31, 2013 |
| | | |
| | | |
| | | |
|
|
| | | | |
Basis point
| | | |
Basis point
| | | |
Basis point
|
|
(dollars in thousands;
| | |
Dollar
| |
impact to net
| |
Dollar
| |
impact to net
| |
Dollar
| |
impact to net
|
|
unaudited)
|
|
|
Amount
|
|
interest margin
|
|
Amount
|
|
interest margin
|
|
Amount
|
|
interest margin
|
|
Accretion on PCI loans
| | |
| $180 | | |
4 bps
| |
| $180 | | |
5 bps
| |
| $236 | | |
7 bps
|
|
Accretion on non-PCI loans
| | | | $1,330 | | |
31 bps
| | | $571 | | |
14 bps
| | | $132 | | |
4 bps
|
|
Gains on pay-offs of PCI loans
| | | |
$—
| | |
0 bps
| | |
$—
| | |
0 bps
| | | $320 | | |
9 bps
|
| | | | | | | | | | | | | | | | | | |
|
For acquired loans not considered credit-impaired, the level of
accretion varies due to maturities and early pay-offs of these loans.
Accretion on PCI loans fluctuates based on changes in cash flows
expected to be collected. 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 first quarter of 2014 totaled $2.2 million,
compared to $2.1 million in both the prior quarter and same quarter a
year ago. The increase from the prior quarter and same quarter a year
ago primarily relates to an increase in other income, including higher
dividend income from the Federal Home Loan Bank of San Francisco.
Non-interest expense totaled $12.8 million in the first quarter of 2014,
compared to $13.9 million in the prior quarter and $9.7 million in the
same quarter a year ago. First quarter 2014 non-interest expense
includes $746 thousand in one-time acquisition-related expenses
associated with data processing and personnel severance costs, compared
to $3.4 million in one-time acquisition-related expenses in the fourth
quarter of 2013. No significant one-time expenses related to the NorCal
acquisition are expected going forward. The increase in non-interest
expense from the same quarter a year ago primarily reflects the one-time
acquisition-related expenses in the first quarter of 2014 (discussed
above), temporary conversion personnel, and higher staffing and
occupancy costs. Ongoing expenses for data processing transaction
volumes, staffing, and facilities are projected to stabilize at somewhat
higher than pre-acquisition levels due to the expansion into the East
Bay and lenders added in the North Bay.
About Bank of Marin Bancorp
Bank of Marin is a leading business and community bank in the San
Francisco Bay Area, with assets of $1.8 billion. Founded in 1989 and
headquartered in Novato, Bank of Marin is the sole subsidiary of Bank of
Marin Bancorp (NASDAQ:BMRC). With 21 offices in San Francisco, Marin,
Napa, Sonoma and Alameda counties, Bank of Marin provides business and
personal banking, commercial lending, and wealth management services.
Specializing in providing legendary service to its customers and
investing in its local communities, Bank of Marin has consistently been
ranked one of the “Top Corporate Philanthropists" by the San Francisco
Business Times and one of the “Best Places to Work” by the North Bay
Business Journal. Bank of Marin Bancorp is included in the Russell 2000
Small-Cap Index and has been recognized as a Top 200 Community Bank by
US Banker Magazine for the past five years. For more information, go to 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, our ability to integrate the business of NorCal,
general economic conditions, economic uncertainty in the United States
and abroad, changes in interest rates, deposit flows, real estate
values, expected future cash flows on acquired loans, competition,
changes in accounting principles, policies or guidelines, 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, including the
impact of the NorCal acquisition, 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.
|
|
| BANK OF MARIN BANCORP |
| FINANCIAL HIGHLIGHTS |
| March 31, 2014 |
|
(dollars in thousands, except per share data; unaudited)
| |
|
|
| | |
|
| | |
|
| | |
| | | | | | | | | | | |
|
QUARTER-TO-DATE | | | March 31, 2014 | | | | December 31, 2013 | | | | March 31, 2013 | |
|
NET INCOME
| | |
$
|
4,533
| | | | |
$
|
2,345
| | | | |
$
|
4,866
| | |
|
DILUTED EARNINGS PER COMMON SHARE
| | |
$
|
0.76
| | | | |
$
|
0.41
| | | | |
$
|
0.89
| | |
|
RETURN ON AVERAGE ASSETS (ROA)
| | |
1.01
| |
%
| | |
0.57
| |
%
| | |
1.38
| |
%
|
|
RETURN ON AVERAGE EQUITY (ROE)
| | |
9.97
| |
%
| | |
5.47
| |
%
| | |
12.76
| |
%
|
|
EFFICIENCY RATIO
| | |
63.86
| |
%
| | |
78.39
| |
%
| | |
57.36
| |
%
|
|
TAX-EQUIVALENT NET INTEREST MARGIN1 | | |
4.25
| |
%
| | |
4.05
| |
%
| | |
4.48
| |
%
|
|
NET CHARGE-OFFS/(RECOVERIES)
| | |
$
|
142
| | | | |
$
|
(266
|
)
| | | |
$
|
(3
|
)
| |
|
NET CHARGE-OFFS/(RECOVERIES) TO AVERAGE LOANS
| | |
0.01
| |
%
| | |
(0.02
|
)
|
%
| | |
—
| |
%
|
| | | | | | | | | | | |
|
AT PERIOD END | | | | | | | | | | | | |
|
TOTAL ASSETS
| | |
$
|
1,797,852
| | | | |
$
|
1,805,194
| | | | |
$
|
1,427,022
| | |
| | | | | | | | | | | |
|
|
LOANS:
| | | | | | | | | | | | |
|
COMMERCIAL AND INDUSTRIAL
| | |
$
|
177,995
| | | | |
$
|
183,291
| | | | |
$
|
175,735
| | |
|
REAL ESTATE
| | | | | | | | | | | | |
|
COMMERCIAL OWNER-OCCUPIED
| | |
$
|
232,117
| | | | |
$
|
241,113
| | | | |
$
|
196,803
| | |
|
COMMERCIAL INVESTOR-OWNED
| | |
$
|
640,843
| | | | |
$
|
625,019
| | | | |
$
|
509,829
| | |
|
CONSTRUCTION
| | |
$
|
32,512
| | | | |
$
|
31,577
| | | | |
$
|
32,835
| | |
|
HOME EQUITY
| | |
$
|
99,723
| | | | |
$
|
98,469
| | | | |
$
|
90,495
| | |
|
OTHER RESIDENTIAL
| | |
$
|
78,772
| | | | |
$
|
72,634
| | | | |
$
|
45,879
| | |
|
INSTALLMENT AND OTHER CONSUMER LOANS
| | |
$
|
16,028
|
| | | |
$
|
17,219
|
| | | |
$
|
20,259
|
| |
|
TOTAL LOANS
| | |
$
|
1,277,990
| | | | |
$
|
1,269,322
| | | | |
$
|
1,071,835
| | |
| | | | | | | | | | | |
|
|
NON-PERFORMING LOANS2:
| | | | | | | | | | | | |
|
COMMERCIAL AND INDUSTRIAL
| | |
$
|
154
| | | | |
$
|
1,187
| | | | |
$
|
3,884
| | |
|
REAL ESTATE
| | | | | | | | | | | | |
|
COMMERCIAL OWNER-OCCUPIED
| | |
$
|
1,403
| | | | |
$
|
1,403
| | | | |
$
|
1,403
| | |
|
COMMERCIAL INVESTOR-OWNED
| | |
$
|
2,694
| | | | |
$
|
2,807
| | | | |
$
|
5,714
| | |
|
CONSTRUCTION
| | |
$
|
4,813
| | | | |
$
|
5,218
| | | | |
$
|
2,239
| | |
|
HOME EQUITY
| | |
$
|
228
| | | | |
$
|
234
| | | | |
$
|
530
| | |
|
OTHER RESIDENTIAL
| | |
$
|
646
| | | | |
$
|
660
| | | | |
$
|
1,165
| | |
|
INSTALLMENT AND OTHER CONSUMER LOANS
| | |
$
|
161
|
| | | |
$
|
169
|
| | | |
$
|
356
|
| |
|
TOTAL NON-ACCRUAL LOANS
| | |
$
|
10,099
| | | | |
$
|
11,678
| | | | |
$
|
15,291
| | |
| | | | | | | | | | | |
|
|
CLASSIFIED LOANS (GRADED SUBSTANDARD & DOUBTFUL)
| | |
$
|
34,285
| | | | |
$
|
31,140
| | | | |
$
|
31,141
| | |
|
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE
| | |
$
|
2,809
| | | | |
$
|
995
| | | | |
$
|
8,077
| | |
|
LOAN LOSS RESERVE TO LOANS
| | |
1.11
| |
%
| | |
1.12
| |
%
| | |
1.25
| |
%
|
|
LOAN LOSS RESERVE TO NON-ACCRUAL LOANS
| | |
1.41
| |
x
| | |
1.22
| |
x
| | |
0.88
| |
x
|
|
NON-ACCRUAL LOANS TO TOTAL LOANS
| | |
0.79
| |
%
| | |
0.92
| |
%
| | |
1.43
| |
%
|
| TEXAS RATIO3 | | |
5.57
| |
%
| | |
6.58
| |
%
| | |
9.09
| |
%
|
| | | | | | | | | | | |
|
|
TOTAL DEPOSITS
| | |
$
|
1,576,340
| | | | |
$
|
1,587,102
| | | | |
$
|
1,231,551
| | |
|
LOAN TO DEPOSIT RATIO
| | |
81.1
| |
%
| | |
80.0
| |
%
| | |
87.0
| |
%
|
|
STOCKHOLDERS' EQUITY
| | |
$
|
186,165
| | | | |
$
|
180,887
| | | | |
$
|
156,843
| | |
|
BOOK VALUE PER SHARE
| | |
$
|
31.51
| | | | |
$
|
30.78
| | | | |
$
|
28.88
| | |
|
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS4 | | |
9.8
| |
%
| | |
9.5
| |
%
| | |
11.0
| |
%
|
|
TOTAL RISK BASED CAPITAL RATIO-BANK5 | | |
13.0
| |
%
| | |
12.6
| |
%
| | |
13.5
| |
%
|
|
TOTAL RISK BASED CAPITAL RATIO-BANCORP5 | | |
13.5
| |
%
| | |
13.2
| |
%
| | |
14.0
| |
%
|
|
FULL TIME EQUIVALENT EMPLOYEES
| | |
277
| | | | |
281
| | | | |
241
| | |
| | | | | | | | | | | |
|
| 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
$14.5 million, $12.9 million and $10.8 million at March 31, 2014,
December 31, 2013 and March 31, 2013, respectively. Excludes
purchased credit-impaired (PCI) loans with carrying values of $5.8
million, $5.7 million and $2.0 million that were accreting interest
at March 31, 2014, December 31, 2013 and March 31, 2013,
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 $7.2
million, $7.1 million and $3.6 million at March 31, 2014, December
31, 2013 and March 31, 2013.
|
| 3 (Non-performing assets + 90 day delinquent
loans)/(tangible common equity + allowance for loan losses).
|
4 Tangible common equity to tangible assets is
considered to be a meaningful non-GAAP financial measure of
capital adequacy and is useful for investors to assess Bancorp's
ability to absorb potential losses. Tangible common equity
includes common stock, retained earnings and unrealized gain on
available for sale securities, net of tax, less goodwill and
intangible assets of $10.7 million and $10.9 million at March 31,
2014 and December 31, 2013, respectively. Tangible assets excludes
goodwill and intangible assets.
|
| 5 Current period estimated.
|
|
|
|
|
| BANK OF MARIN BANCORP |
| CONSOLIDATED STATEMENTS OF CONDITION |
at March 31, 2014, December 31, 2013 and March 31, 2013 |
|
|
| |
|
| |
|
| |
| | | March 31,
| | | December 31,
| | | March 31,
|
(in thousands, except share data; March 2014 & March 2013
unaudited)
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
| Assets | | | | | | | | | |
|
Cash and due from banks
| | |
$
|
91,567
| | | |
$
|
103,773
| | | |
$
|
31,364
|
|
Investment securities
| | | | | | | | | |
|
Held-to-maturity, at amortized cost
| | |
132,019
| | | |
122,495
| | | |
138,978
|
|
Available-for-sale (at fair value; amortized cost $230,067, $245,158
and $139,414 at March 31, 2014, December 31, 2013 and March 31,
2013, respectively)
|
|
|
230,337
|
|
|
|
243,998
|
|
|
|
142,653
|
|
Total investment securities
| | |
362,356
| | | |
366,493
| | | |
281,631
|
|
Loans, net of allowance for loan losses of $14,232, $14,224 and
$13,434 at March 31, 2014, December 31, 2013 and March 31, 2013,
respectively
| | |
1,263,758
| | | |
1,255,098
| | | |
1,058,401
|
|
Bank premises and equipment, net
| | |
9,036
| | | |
9,110
| | | |
9,358
|
|
Goodwill
| | |
6,436
| | | |
6,436
| | | |
—
|
|
Interest receivable and other assets
|
|
|
64,699
|
|
|
|
64,284
|
|
|
|
46,268
|
| Total assets |
|
| $ | 1,797,852 |
|
|
| $ | 1,805,194 |
|
|
| $ | 1,427,022 |
| | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | |
| Liabilities | | | | | | | | | |
|
Deposits
| | | | | | | | | |
|
Non-interest bearing
| | |
$
|
701,561
| | | |
$
|
648,191
| | | |
$
|
485,942
|
|
Interest bearing
| | | | | | | | | |
|
Transaction accounts
| | |
96,550
| | | |
137,748
| | | |
86,124
|
|
Savings accounts
| | |
119,361
| | | |
118,770
| | | |
95,428
|
|
Money market accounts
| | |
499,909
| | | |
520,525
| | | |
417,293
|
|
CDARS® time accounts
| | |
—
| | | |
400
| | | |
7,448
|
|
Other time accounts
|
|
|
158,959
|
|
|
|
161,468
|
|
|
|
139,316
|
|
Total deposits
| | |
1,576,340
| | | |
1,587,102
| | | |
1,231,551
|
| Federal Home Loan Bank borrowings
| | |
15,000
| | | |
15,000
| | | |
23,200
|
|
Subordinated debentures
| | |
5,023
| | | |
4,969
| | | |
—
|
|
Interest payable and other liabilities
|
|
|
15,324
|
|
|
|
17,236
|
|
|
|
15,428
|
|
Total liabilities
|
|
|
1,611,687
|
|
|
|
1,624,307
|
|
|
|
1,270,179
|
| | | | | | | | |
|
| 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 - 5,907,736, 5,877,524 and 5,430,220 at
March 31, 2014, December 31, 2013 and March 31, 2013, respectively
| | |
81,049
| | | |
80,095
| | | |
59,906
|
|
Retained earnings
| | |
104,877
| | | |
101,464
| | | |
95,059
|
|
Accumulated other comprehensive income, net
|
|
|
239
|
|
|
|
(672
|
)
|
|
|
1,878
|
|
Total stockholders' equity
|
|
|
186,165
|
|
|
|
180,887
|
|
|
|
156,843
|
| Total liabilities and stockholders' equity |
|
| $ | 1,797,852 |
|
|
| $ | 1,805,194 |
|
|
| $ | 1,427,022 |
| | | | | | | | | | | | | |
|
|
|
| BANK OF MARIN BANCORP |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
|
| |
| | |
|
| | |
Three months ended
|
|
(in thousands, except per share amounts; unaudited)
|
|
| March 31, 2014 |
|
| December 31, 2013 |
|
| March 31, 2013 |
| Interest income | | | |
|
| |
|
| |
|
Interest and fees on loans
| | |
$
|
16,319
| | | |
$
|
14,358
| | | |
$
|
13,635
| |
|
Interest on investment securities
| | | | | | | | | |
|
Securities of U.S. Government agencies
| | |
1,232
| | | |
810
| | | |
625
| |
|
Obligations of state and political subdivisions
| | |
634
| | | |
615
| | | |
638
| |
|
Corporate debt securities and other
| | |
268
| | | |
271
| | | |
324
| |
|
Interest due from banks and other
|
|
|
51
|
|
|
|
75
|
|
|
|
8
|
|
|
Total interest income
| | |
18,504
| | | |
16,129
| | | |
15,230
| |
| Interest expense | | | | | | | | | |
|
Interest on interest bearing transaction accounts
| | |
23
| | | |
17
| | | |
11
| |
|
Interest on savings accounts
| | |
11
| | | |
10
| | | |
8
| |
|
Interest on money market accounts
| | |
158
| | | |
124
| | | |
99
| |
|
Interest on CDARS® time accounts
| | |
—
| | | |
—
| | | |
5
| |
|
Interest on other time accounts
| | |
235
| | | |
232
| | | |
232
| |
|
Interest on FHLB and overnight borrowings
| | |
78
| | | |
79
| | | |
79
| |
|
Interest on subordinated debentures
|
|
|
105
|
|
|
|
35
|
|
|
|
—
|
|
|
Total interest expense
|
|
|
610
|
|
|
|
497
|
|
|
|
434
|
|
|
Net interest income
| | |
17,894
| | | |
15,632
| | | |
14,796
| |
|
Provision for (reversal of) loan losses
|
|
|
150
|
|
|
|
150
|
|
|
|
(230
|
)
|
|
Net interest income after provision for (reversal of) loan losses
|
|
|
17,744
|
|
|
|
15,482
|
|
|
|
15,026
|
|
| Non-interest income | | | | | | | | | |
|
Service charges on deposit accounts
| | |
556
| | | |
517
| | | |
521
| |
| Wealth Management and Trust Services | | |
564
| | | |
544
| | | |
547
| |
|
Debit card interchange fees
| | |
300
| | | |
284
| | | |
252
| |
|
Merchant interchange fees
| | |
198
| | | |
199
| | | |
205
| |
|
Earnings on Bank-owned life Insurance
| | |
213
| | | |
188
| | | |
401
| |
|
(Loss) gain on sale of securities
| | |
(8
|
)
| | |
34
| | | |
—
| |
|
Other income
|
|
|
393
|
|
|
|
297
|
|
|
|
180
|
|
|
Total non-interest income
|
|
|
2,216
|
|
|
|
2,063
|
|
|
|
2,106
|
|
| Non-interest expense | | | | | | | | | |
|
Salaries and related benefits
| | |
6,930
| | | |
5,857
| | | |
5,298
| |
|
Occupancy and equipment
| | |
1,334
| | | |
1,182
| | | |
1,073
| |
|
Depreciation and amortization
| | |
416
| | | |
363
| | | |
336
| |
| Federal Deposit Insurance Corporation insurance
| | |
250
| | | |
240
| | | |
214
| |
|
Data processing
| | |
1,360
| | | |
3,477
| | | |
549
| |
|
Professional services
| | |
628
| | | |
869
| | | |
527
| |
|
Other expense
|
|
|
1,925
|
|
|
|
1,883
|
|
|
|
1,698
|
|
|
Total non-interest expense
|
|
|
12,843
|
|
|
|
13,871
|
|
|
|
9,695
|
|
|
Income before provision for income taxes
| | |
7,117
| | | |
3,674
| | | |
7,437
| |
|
Provision for income taxes
|
|
|
2,584
|
|
|
|
1,329
|
|
|
|
2,571
|
|
| Net income |
|
| $ | 4,533 |
|
|
| $ | 2,345 |
|
|
| $ | 4,866 |
|
|
Net income per common share:
| | | | | | | | | |
|
Basic
| | |
$
|
0.77
| | | |
$
|
0.42
| | | |
$
|
0.90
| |
|
Diluted
| | |
$
|
0.76
| | | |
$
|
0.41
| | | |
$
|
0.89
| |
|
Weighted average shares used to compute net income per common share:
| | | | | | | | | |
|
Basic
| | |
5,870
| | | |
5,585
| | | |
5,389
| |
|
Diluted
| | |
5,980
| | | |
5,697
| | | |
5,487
| |
|
Dividends declared per common share
|
|
|
$
|
0.19
|
|
|
|
$
|
0.19
|
|
|
|
$
|
0.18
|
|
| Comprehensive income: | | | | | |
| | | |
|
Net income
| | |
$
|
4,533
| | | |
$
|
2,345
| | | |
$
|
4,866
| |
|
Other comprehensive income (loss)
| | | | | | | | | |
Change in net unrealized gain (loss) on available-for-sale
securities
| | |
1,415
| | | |
(2,131
|
)
| | |
(303
|
)
|
Reclassification adjustment for loss (gain) on sale of
available-for-sale securities included in net income
|
|
|
15
|
|
|
|
(16
|
)
|
|
|
—
|
|
Net change in unrealized gain (loss) on
available-for-sale securities, before tax
| | |
1,430
| | | |
(2,147
|
)
| | |
(303
|
)
|
|
Deferred tax expense (benefit)
|
|
|
519
|
|
|
|
(903
|
)
|
|
|
(126
|
)
|
|
Other comprehensive income (loss), net of tax
|
|
|
911
|
|
|
|
(1,244
|
)
|
|
|
(177
|
)
|
| Comprehensive income |
|
|
$
|
5,444
|
|
|
|
$
|
1,101
|
|
|
|
$
|
4,689
|
|
| | | | | | | | | | | | | | |
|
|
|
BANK OF MARIN BANCORP |
AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST
INCOME |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | |
|
| | |
Three months ended
| |
Three months ended
| |
Three months ended
|
| | | March 31, 2014 |
| December 31, 2013 |
| March 31, 2013 |
| | | | |
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 | | |
$
|
85,750
| | |
$
|
51
| | |
0.24
|
%
| |
$
|
116,627
| | |
$
|
75
| | |
0.25
|
%
| |
$
|
5,710
| | |
$
|
8
| | |
0.56
|
%
|
|
Investment securities 2, 3 | | |
361,795
| | |
2,293
| | |
2.54
|
%
| |
285,537
| | |
1,873
| | |
2.62
|
%
| |
284,429
| | |
1,780
| | |
2.50
|
%
|
|
Loans 1, 3, 4 |
|
|
1,268,841
|
|
|
16,511
|
|
|
5.20
|
%
|
|
1,143,509
|
|
|
14,563
|
|
|
4.98
|
%
|
|
1,062,957
|
|
|
13,808
|
|
|
5.20
|
%
|
|
Total interest-earning assets 1 | | |
1,716,386
| | |
18,855
| | |
4.39
|
%
| |
1,545,673
| | |
16,511
| | |
4.18
|
%
| |
1,353,096
| | |
15,596
| | |
4.61
|
%
|
|
Cash and non-interest-bearing due from banks
| | |
41,793
| | | | | | |
43,385
| | | | | | |
28,250
| | | | | |
|
Bank premises and equipment, net
| | |
9,088
| | | | | | |
9,033
| | | | | | |
9,425
| | | | | |
|
Interest receivable and other assets, net
|
|
|
55,829
|
|
|
|
|
|
|
44,278
|
|
|
|
|
|
|
37,892
|
|
|
|
|
|
| Total assets |
|
| $ | 1,823,096 |
|
|
|
|
|
| $ | 1,642,369 |
|
|
|
|
|
| $ | 1,428,663 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity
| | | | | | | | | | | | | | | | | | | |
|
Interest-bearing transaction accounts
| | |
$
|
127,098
| | |
$
|
23
| | |
0.07
|
%
| |
$
|
99,116
| | |
$
|
17
| | |
0.07
|
%
| |
$
|
129,379
| | |
$
|
11
| | |
0.03
|
%
|
|
Savings accounts
| | |
121,278
| | |
11
| | |
0.04
|
%
| |
108,229
| | |
10
| | |
0.03
|
%
| |
96,561
| | |
8
| | |
0.03
|
%
|
|
Money market accounts
| | |
518,930
| | |
158
| | |
0.12
|
%
| |
475,051
| | |
124
| | |
0.10
|
%
| |
432,154
| | |
99
| | |
0.09
|
%
|
|
CDARS® time accounts
| | |
36
| | |
—
| | |
—
|
%
| |
889
| | |
—
| | |
—
|
%
| |
12,866
| | |
5
| | |
0.16
|
%
|
|
Other time accounts
| | |
160,942
| | |
235
| | |
0.59
|
%
| |
146,549
| | |
232
| | |
0.63
|
%
| |
140,254
| | |
232
| | |
0.67
|
%
|
|
FHLB borrowings 1 | | |
15,000
| | |
78
| | |
2.07
|
%
| |
15,003
| | |
79
| | |
2.07
|
%
| |
18,513
| | |
79
| | |
1.71
|
%
|
|
Subordinated debenture 1 |
|
|
4,988
|
|
|
105
|
|
|
8.58
|
%
|
|
1,616
|
|
|
35
|
|
|
8.48
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
Total interest-bearing liabilities
| | |
948,272
| | |
610
| | |
0.26
|
%
| |
846,453
| | |
497
| | |
0.23
|
%
| |
829,727
| | |
434
| | |
0.21
|
%
|
|
Demand accounts
| | |
674,689
| | | | | | |
610,261
| | | | | | |
429,335
| | | | | |
|
Interest payable and other liabilities
| | |
15,748
| | | | | | |
15,498
| | | | | | |
14,892
| | | | | |
|
Stockholders' equity
|
|
|
184,387
|
|
|
|
|
|
|
170,157
|
|
|
|
|
|
|
154,709
|
|
|
|
|
|
| Total liabilities & stockholders' equity |
|
| $ | 1,823,096 |
|
|
|
|
|
| $ | 1,642,369 |
|
|
|
|
|
| $ | 1,428,663 |
|
|
|
|
|
|
Tax-equivalent net interest income/margin 1 |
|
|
|
|
$
|
18,244
|
|
|
4.25
|
%
|
|
|
|
$
|
16,014
|
|
|
4.05
|
%
|
|
|
|
$
|
15,162
|
|
|
4.48
|
%
|
|
Reported net interest income/margin 1 |
|
|
|
|
$
|
17,894
|
|
|
4.17
|
%
|
|
|
|
$
|
15,632
|
|
|
3.96
|
%
|
|
|
|
$
|
14,796
|
|
|
4.37
|
%
|
|
Tax-equivalent net interest rate spread
|
|
|
|
|
|
|
4.13
|
%
|
|
|
|
|
|
3.95
|
%
|
|
|
|
|
|
4.40
|
%
|
| | | | | | | | | | | | | | | | | | |
|
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.
|
for Bank of Marin Bancorp
Sandy Pfaff, 415-819-7447
sandy@pfaffpr.com
Source: Bank of Marin Bancorp