NOVATO, Calif.--(BUSINESS WIRE)--
Bank of Marin Bancorp, "Bancorp" (NASDAQ:BMRC), parent company of Bank
of Marin, announced earnings of $4.5 million in the first quarter of
2015, compared to $4.7 million in the fourth quarter of 2014 and $4.5
million in the first quarter of 2014. Diluted earnings per share totaled
$0.74 in the first quarter, compared to $0.78 in the prior quarter and
$0.76 in the same quarter a year ago.
“Our relationship banking focus is yielding a strong pipeline as we move
into the second quarter. At the same time, we are experiencing loan
payoffs similar to other banks in the Bay Area," said Russell A.
Colombo, President and Chief Executive Officer. "We have had numerous
customers sell properties and businesses to take advantage of the high
valuations prevalent in today’s market. We remain optimistic about 2015.”
Bancorp also provided the following highlights on its operating and
financial performance for the first quarter of 2015:
-
Loans totaled $1.35 billion at March 31, 2015, compared to $1.36
billion at December 31, 2014 and $1.28 billion at March 31, 2014. New
loan volume of approximately $30 million in the first quarter of 2015
was offset by payoffs of approximately $40 million, and combined with
utilization and amortization on existing loans produced a net decrease
of $16.9 million over December 31, 2014. Higher advances on
construction loans increased balances by $8.6 million over December
31, 2014 despite the sale of one large project. Several other projects
nearing successful completion will contribute to pay-downs in future
quarters.
-
Credit quality remains strong with non-accrual loans representing
0.70% of total loans at March 31, 2015, compared to 0.69% at December
31, 2014 and 0.79% a year ago. Net recoveries for the first quarter
totaled $57 thousand, compared to $50 thousand in the prior quarter
and net charge-offs in the same quarter a year ago of $142 thousand.
-
Deposits totaled $1.6 billion at March 31, 2015, and grew $33.5
million over December 31, 2014. Non-interest bearing deposits
increased to 45.2% of total deposits, compared to 43.2% at year-end
and 44.5% at March 31, 2014. Day-to-day deposit volatility in
transaction accounts due to normal seasonal activity and new business
ventures by several of our largest business customers resulted in a
$32.3 million decrease in average deposit balances for the quarter
while ending balances increased for the quarter.
-
The total risk-based capital ratio for Bancorp was 13.8% at March 31,
2015 compared to 13.9% at December 31, 2014 and 13.5% at March 31,
2014. The common equity tier one ratio, a new regulatory ratio under
Basel III (Basel Committee on Bank Supervision guidelines for
determining regulatory capital), was 12.5% at March 31, 2015. All
capital ratios are well above regulatory requirements for a
well-capitalized institution under the new requirements that took
effect January 1, 2015. Tangible common equity to tangible assets
totaled 10.7% at both March 31, 2015 and December 31, 2014, compared
to 9.8% at March 31, 2014.
-
On April 17, 2015, the Board of Directors declared a quarterly cash
dividend of $0.22 per share. The cash dividend is payable to
shareholders of record at the close of business on May 1, 2015 and
will be payable on May 8, 2015.
Loans and Credit Quality
Loans totaled $1.35 billion at March 31, 2015, compared to $1.36 billion
at December 31, 2014 and $1.28 billion at March 31, 2014. Approximately
$40 million in first quarter payoffs included four large loans totaling
$23.1 million that were due to property sales.
Non-accrual loans totaled $9.5 million at March 31, 2015, compared to
$9.4 million at December 31, 2014 and $10.1 million a year ago. Accruing
loans past due 30 to 89 days decreased to $949 thousand at March 31,
2015, from $1.0 million at December 31, 2014 and $2.8 million a year ago.
There was no provision for loan losses recorded in the first quarter of
2015 or the prior quarter, compared to a provision for loan losses
totaling $150 thousand in the first quarter of 2014. The ratio of loan
loss reserve to loans totaled 1.13% at March 31, 2015, compared to 1.11%
at both December 31, 2014 and March 31, 2014.
Deposits
Deposits totaled $1.6 billion at March 31, 2015, and grew $33.5 million
over December 31, 2014 and $8.8 million over March 31, 2014.
Non-interest bearing deposits totaled $716.7 million at March 31, 2015,
an increase of $45.8 million when compared to December 31, 2014. CDARS
time deposits increased $11.5 million from both December 31, 2014 and
March 31, 2014, as Management made a strategic decision to bring back
CDARS reciprocal deposits in the first quarter of 2015.
Earnings
“Bank of Marin's underwriting, pricing and expense discipline continues
to support our net interest margin and ongoing profitability in the low
interest rate environment,” said Tani Girton, Chief Financial Officer.
"The same principles are at work as we grow organically and pursue other
expansion opportunities."
Net interest income totaled $16.6 million in the first quarter of 2015,
compared to $17.1 million in the prior quarter and $17.9 million in the
same quarter a year ago. The decrease from the prior quarter reflects
fewer days in the first quarter of 2015. The impact of a lower loan
yield on the margin was largely offset by a higher allocation of average
loans and lower average cash and investment balances. The decrease from
the same quarter a year ago primarily relates to a lower level of income
recognition on acquired loans as well as lower average balances on
investments. The tax-equivalent net interest margin was 4.00%, 3.99% and
4.25% for those respective periods, and return on assets was 1.00%,
compared to 1.01% for the prior quarter and year ago quarter.
Loans acquired through the acquisition of other banks are classified as
Purchase Credit Impaired ("PCI") or non-PCI loans and recorded at fair
value at acquisition date. For acquired loans not considered credit
impaired, the level of accretion varies due to maturities and early
pay-offs. 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.
Accretion and gains on pay-offs of purchased loans recorded to interest
income were as follows:
|
|
Three months ended
|
| | March 31, 2015 |
| December 31, 2014 |
| March 31, 2014 |
| | |
|
Basis point
| | |
|
Basis point
| | |
|
Basis point
|
| |
Dollar
| |
impact to net
| |
Dollar
| |
impact to net
| |
Dollar
| |
impact to net
|
(dollars in thousands; unaudited)
|
|
Amount
|
|
interest margin
|
|
Amount
|
|
interest margin
|
|
Amount
|
|
interest margin
|
|
Accretion on PCI loans
| |
|
$
|
119
|
| | |
3 bps
| |
|
$
|
120
|
| | |
3 bps
| |
|
$
|
180
|
| | |
4 bps
|
|
Accretion on non-PCI loans
| | |
$
|
371
| | | |
9 bps
| | |
$
|
475
| | | |
11 bps
| | |
$
|
1,330
| | | |
31 bps
|
|
Gains on pay-offs of PCI loans
| | |
$
|
43
| | | |
1 bps
| | |
$
|
—
| | | |
0 bps
| | |
$
|
—
| | | |
0 bps
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
Non-interest expense totaled $11.8 million in the first quarter of 2015,
compared to $11.6 million in the prior quarter and $12.8 million in the
same quarter a year ago. The increase in non-interest expense from the
prior quarter was associated with a year-end reduction to accrued bonus
expense and first quarter salaries for several positions that were
vacant in the fourth quarter. A reduction in reserve requirements for
off-balance sheet commitments due to the reduced effect of historical
charge-offs resulted in a reversal of some provision in the first
quarter of 2015. The decrease in non-interest expense from the same
quarter a year ago primarily relates to $746 thousand in one-time
acquisition-related expenses associated with data processing and
personnel severance costs in the first quarter of 2014 and the reversal
of provision for off-balance sheet commitments in 2015.
Earnings Call and Webcast Information
Bank of Marin Bancorp will webcast its first quarter earnings call on
Monday, April 20, 2015 at 8:30 a.m. PT/ 11:30 a.m. ET. Investors will
have the opportunity to listen to the conference call online through
Bank of Marin’s website at http://www.bankofmarin.com
under “Latest Press and News.” To listen to the live call, please go to
the website at least 15 minutes early to register, download and install
any necessary audio software. For those who cannot listen to the live
broadcast, a replay will be available at the same website location
shortly after the call.
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, visit www.bankofmarin.com.
Forward-Looking Statements
This release may contain certain forward-looking statements that are
based on management's current expectations regarding economic,
legislative, and regulatory issues that may impact Bancorp's earnings in
future periods. Forward-looking statements can be identified by the fact
that they do not relate strictly to historical or current facts. They
often include the words “believe,” “expect,” “intend,” “estimate” or
words of similar meaning, or future or conditional verbs such as “will,”
“would,” “should,” “could” or “may.” Factors that could cause future
results to vary materially from current management expectations include,
but are not limited to, general economic conditions, 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, 2015 |
|
|
|
(dollars in thousands, except per share data; unaudited)
| |
|
| | |
| | |
| | |
| QUARTER-TO-DATE | | March 31, 2015 | | | December 31, 2014 | | | March 31, 2014 | |
|
NET INCOME
| |
$
|
4,457
| | | |
$
|
4,692
| | | |
$
|
4,533
| | |
|
DILUTED EARNINGS PER COMMON SHARE
| |
$
|
0.74
| | | |
$
|
0.78
| | | |
$
|
0.76
| | |
|
RETURN ON AVERAGE ASSETS (ROA)
| |
1.00
| |
%
| |
1.01
| |
%
| |
1.01
| |
%
|
|
RETURN ON AVERAGE EQUITY (ROE)
| |
8.92
| |
%
| |
9.36
| |
%
| |
9.97
| |
%
|
|
EFFICIENCY RATIO
| |
63.07
| |
%
| |
60.18
| |
%
| |
63.86
| |
%
|
|
TAX-EQUIVALENT NET INTEREST MARGIN1 | |
4.00
| |
%
| |
3.99
| |
%
| |
4.25
| |
%
|
|
NET CHARGE-OFFS/(RECOVERIES)
| |
$
|
(57
|
)
| | |
$
|
(50
|
)
| | |
$
|
142
| | |
|
NET CHARGE-OFFS/(RECOVERIES) TO AVERAGE LOANS
| |
—
| |
%
| |
—
| |
%
| |
0.01
| |
%
|
| | | | | | | | |
|
| AT PERIOD END | | | | | | | | | |
|
TOTAL ASSETS
| |
$
|
1,826,149
| | | |
$
|
1,787,130
| | | |
$
|
1,797,852
| | |
| | | | | | | | |
|
|
LOANS:
| | | | | | | | | |
|
COMMERCIAL AND INDUSTRIAL
| |
$
|
196,442
| | | |
$
|
210,223
| | | |
$
|
177,995
| | |
|
REAL ESTATE
| | | | | | | | | |
|
COMMERCIAL OWNER-OCCUPIED
| |
$
|
235,337
| | | |
$
|
230,605
| | | |
$
|
232,117
| | |
|
COMMERCIAL INVESTOR-OWNED
| |
$
|
653,848
| | | |
$
|
673,499
| | | |
$
|
640,843
| | |
|
CONSTRUCTION
| |
$
|
57,050
| | | |
$
|
48,413
| | | |
$
|
32,512
| | |
|
HOME EQUITY
| |
$
|
113,277
| | | |
$
|
110,788
| | | |
$
|
99,723
| | |
|
OTHER RESIDENTIAL
| |
$
|
73,375
| | | |
$
|
73,035
| | | |
$
|
78,772
| | |
|
INSTALLMENT AND OTHER CONSUMER LOANS
| |
$
|
17,155
|
| | |
$
|
16,788
|
| | |
$
|
16,028
|
| |
|
TOTAL LOANS
| |
$
|
1,346,484
| | | |
$
|
1,363,351
| | | |
$
|
1,277,990
| | |
| | | | | | | | |
|
|
NON-PERFORMING LOANS2:
| | | | | | | | | |
|
COMMERCIAL AND INDUSTRIAL
| |
$
|
373
| | | |
$
|
—
| | | |
$
|
154
| | |
|
REAL ESTATE
| | | | | | | | | |
|
COMMERCIAL OWNER-OCCUPIED
| |
$
|
1,403
| | | |
$
|
1,403
| | | |
$
|
1,403
| | |
|
COMMERCIAL INVESTOR-OWNED
| |
$
|
2,354
| | | |
$
|
2,429
| | | |
$
|
2,694
| | |
|
CONSTRUCTION
| |
$
|
5,107
| | | |
$
|
5,134
| | | |
$
|
4,813
| | |
|
HOME EQUITY
| |
$
|
166
| | | |
$
|
280
| | | |
$
|
228
| | |
|
OTHER RESIDENTIAL
| |
$
|
—
| | | |
$
|
—
| | | |
$
|
646
| | |
|
INSTALLMENT AND OTHER CONSUMER LOANS
| |
$
|
79
|
| | |
$
|
104
|
| | |
$
|
161
|
| |
|
TOTAL NON-ACCRUAL LOANS
| |
$
|
9,482
| | | |
$
|
9,350
| | | |
$
|
10,099
| | |
| | | | | | | | |
|
|
CLASSIFIED LOANS (GRADED SUBSTANDARD & DOUBTFUL)
| |
$
|
34,129
| | | |
$
|
36,237
| | | |
$
|
34,285
| | |
|
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE
| |
$
|
949
| | | |
$
|
1,009
| | | |
$
|
2,809
| | |
|
LOAN LOSS RESERVE TO LOANS
| |
1.13
| |
%
| |
1.11
| |
%
| |
1.11
| |
%
|
|
LOAN LOSS RESERVE TO NON-ACCRUAL LOANS
| |
1.60
| |
x
| |
1.61
| |
x
| |
1.41
| |
x
|
|
NON-ACCRUAL LOANS TO TOTAL LOANS
| |
0.70
| |
%
| |
0.69
| |
%
| |
0.79
| |
%
|
| TEXAS RATIO3 | |
4.71
| |
%
| |
4.79
| |
%
| |
5.57
| |
%
|
| | | | | | | | |
|
|
TOTAL DEPOSITS
| |
$
|
1,585,120
| | | |
$
|
1,551,619
| | | |
$
|
1,576,340
| | |
|
LOAN-TO-DEPOSIT RATIO
| |
84.9
| |
%
| |
87.9
| |
%
| |
81.1
| |
%
|
|
STOCKHOLDERS' EQUITY
| |
$
|
204,506
| | | |
$
|
200,026
| | | |
$
|
186,165
| | |
|
BOOK VALUE PER SHARE
| |
$
|
34.27
| | | |
$
|
33.68
| | | |
$
|
31.51
| | |
|
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS4 | |
10.7
| |
%
| |
10.7
| |
%
| |
9.8
| |
%
|
|
TOTAL RISK-BASED CAPITAL RATIO-BANK5 | |
13.5
| |
%
| |
13.7
| |
%
| |
13.0
| |
%
|
|
TOTAL RISK-BASED CAPITAL RATIO-BANCORP5 | |
13.8
| |
%
| |
13.9
| |
%
| |
13.5
| |
%
|
|
FULL-TIME EQUIVALENT EMPLOYEES
| |
267
| | | |
260
| | | |
277
| | |
| | | | | | | | |
|
| 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
$15.6 million, $15.9 million and $14.5 million at March 31, 2015,
December 31, 2014 and March 31, 2014, respectively. Excludes
purchased credit-impaired (PCI) loans with carrying values of $3.7
million, $3.8 million and $5.8 million that were accreting interest
at March 31, 2015, December 31, 2014 and March 31, 2014,
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 $5.1
million, $5.2 million and $7.2 million at March 31, 2015, December
31, 2014 and March 31, 2014.
|
| 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 $10.0
million, $10.2 million and $10.7 million at March 31, 2015, December
31, 2014 and March 31, 2014, respectively. Tangible assets exclude
goodwill and intangible assets.
|
| 5 Current period estimated.
|
|
|
|
|
| BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CONDITION |
| at March 31, 2015, December 31, 2014 and March 31, 2014 |
|
(in thousands, except share data; March 2015 and March 2014
unaudited)
|
| March 31,
2015
|
| December 31,
2014
|
| March 31,
2014
|
| Assets |
| |
| |
| |
|
Cash and due from banks
| |
$
|
103,164
| | |
$
|
41,367
| | |
$
|
91,567
|
|
Investment securities
| | | | | | |
|
Held-to-maturity, at amortized cost
| |
107,476
| | |
116,437
| | |
132,019
|
|
Available-for-sale (at fair value; amortized cost $201,568,
$199,045, and $230,067 at March 31, 2015, December 31, 2014 and
March 31, 2014, respectively)
|
|
204,680
|
|
|
200,848
|
|
|
230,337
|
|
Total investment securities
| |
312,156
| | |
317,285
| | |
362,356
|
|
Loans, net of allowance for loan losses of $15,156, $15,099 and
$14,232 at March 31, 2015, December 31, 2014 and March 31, 2014,
respectively
| |
1,331,328
| | |
1,348,252
| | |
1,263,758
|
|
Bank premises and equipment, net
| |
9,852
| | |
9,859
| | |
9,036
|
|
Goodwill
| |
6,436
| | |
6,436
| | |
6,436
|
|
Core deposit intangible
| |
3,577
| | |
3,732
| | |
4,310
|
|
Interest receivable and other assets
|
|
59,636
|
|
|
60,199
|
|
|
60,389
|
| Total assets |
| $ | 1,826,149 |
|
| $ | 1,787,130 |
|
| $ | 1,797,852 |
| | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | |
| Liabilities | | | | | | |
|
Deposits
| | | | | | |
|
Non-interest bearing
| |
$
|
716,719
| | |
$
|
670,890
| | |
$
|
701,561
|
|
Interest bearing
| | | | | | |
|
Transaction accounts
| |
95,439
| | |
93,758
| | |
96,550
|
|
Savings accounts
| |
133,792
| | |
133,714
| | |
119,361
|
|
Money market accounts
| |
478,145
| | |
503,543
| | |
499,909
|
|
CDARS® time accounts
| |
11,493
| | |
—
| | |
—
|
|
Other time accounts
|
|
149,532
|
|
|
149,714
|
|
|
158,959
|
|
Total deposits
| |
1,585,120
| | |
1,551,619
| | |
1,576,340
|
| Federal Home Loan Bank ("FHLB") borrowings
| |
15,000
| | |
15,000
| | |
15,000
|
|
Subordinated debentures
| |
5,238
| | |
5,185
| | |
5,023
|
|
Interest payable and other liabilities
|
|
16,285
|
|
|
15,300
|
|
|
15,324
|
|
Total liabilities
|
|
1,621,643
|
|
|
1,587,104
|
|
|
1,611,687
|
| | | | | |
|
| 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 - 5,967,614, 5,939,482
and 5,906,881 at March
31, 2015, December 31, 2014 and
March 31, 2014, respectively
| |
83,011
| | |
82,436
| | |
81,049
|
|
Retained earnings
| |
119,652
| | |
116,502
| | |
104,877
|
|
Accumulated other comprehensive income, net
|
|
1,843
|
|
|
1,088
|
|
|
239
|
|
Total stockholders' equity
|
|
204,506
|
|
|
200,026
|
|
|
186,165
|
| Total liabilities and stockholders' equity |
| $ | 1,826,149 |
|
| $ | 1,787,130 |
|
| $ | 1,797,852 |
| | | | | | | | | | |
|
|
|
| BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
|
Three months ended
|
|
(in thousands, except per share amounts; unaudited)
|
| March 31, 2015 |
|
| December 31, 2014 |
|
| March 31, 2014 |
| Interest income | | |
|
| |
|
| |
|
Interest and fees on loans
| |
$
|
15,379
| | | |
$
|
15,946
| | | |
$
|
16,319
| |
|
Interest on investment securities
| | | | | | | | |
|
Securities of U.S. government agencies
| |
1,035
| | | |
951
| | | |
1,232
| |
|
Obligations of state and political subdivisions
| |
540
| | | |
536
| | | |
634
| |
|
Corporate debt securities and other
| |
205
| | | |
253
| | | |
268
| |
|
Interest on Federal funds sold and due from banks
|
|
21
|
|
|
|
36
|
|
|
|
51
|
|
|
Total interest income
| |
17,180
| | | |
17,722
| | | |
18,504
| |
| Interest expense | | | | | | | | |
|
Interest on interest-bearing transaction accounts
| |
30
| | | |
25
| | | |
23
| |
|
Interest on savings accounts
| |
12
| | | |
12
| | | |
11
| |
|
Interest on money market accounts
| |
127
| | | |
135
| | | |
158
| |
|
Interest on CDARS® time accounts
| |
11
| | | |
—
| | | |
—
| |
|
Interest on other time accounts
| |
220
| | | |
222
| | | |
235
| |
|
Interest on FHLB and overnight borrowings
| |
78
| | | |
80
| | | |
78
| |
|
Interest on subordinated debentures
|
|
104
|
|
|
|
106
|
|
|
|
105
|
|
|
Total interest expense
|
|
582
|
|
|
|
580
|
|
|
|
610
|
|
|
Net interest income
| |
16,598
| | | |
17,142
| | | |
17,894
| |
|
Provision for loan losses
|
|
—
|
|
|
|
—
|
|
|
|
150
|
|
|
Net interest income after provision for loan losses
|
|
16,598
|
|
|
|
17,142
|
|
|
|
17,744
|
|
| Non-interest income | | | | | | | | |
|
Service charges on deposit accounts
| |
525
| | | |
531
| | | |
556
| |
| Wealth Management and Trust Services | |
638
| | | |
565
| | | |
564
| |
|
Debit card interchange fees
| |
347
| | | |
343
| | | |
300
| |
|
Merchant interchange fees
| |
130
| | | |
174
| | | |
198
| |
|
Earnings on Bank-owned life insurance
| |
203
| | | |
209
| | | |
213
| |
|
Gains (losses) on investment securities, net
| |
8
| | | |
(13
|
)
| | |
(8
|
)
|
|
Other income
|
|
338
|
|
|
|
347
|
|
|
|
393
|
|
|
Total non-interest income
|
|
2,189
|
|
|
|
2,156
|
|
|
|
2,216
|
|
| Non-interest expense | | | | | | | | |
|
Salaries and related benefits
| |
6,790
| | | |
5,735
| | | |
6,930
| |
|
Occupancy and equipment
| |
1,342
| | | |
1,426
| | | |
1,334
| |
|
Depreciation and amortization
| |
421
| | | |
383
| | | |
416
| |
| Federal Deposit Insurance Corporation insurance
| |
236
| | | |
252
| | | |
250
| |
|
Data processing
| |
786
| | | |
809
| | | |
1,360
| |
|
Professional services
| |
564
| | | |
653
| | | |
628
| |
|
(Reversal of) provision for losses on off-balance sheet commitments
| |
(201
|
)
| | |
336
| | | |
—
| |
|
Other expense
|
|
1,910
|
|
|
|
2,019
|
|
|
|
1,925
|
|
|
Total non-interest expense
|
|
11,848
|
|
|
|
11,613
|
|
|
|
12,843
|
|
|
Income before provision for income taxes
| |
6,939
| | | |
7,685
| | | |
7,117
| |
|
Provision for income taxes
|
|
2,482
|
|
|
|
2,993
|
|
|
|
2,584
|
|
| Net income |
| $ | 4,457 |
|
|
| $ | 4,692 |
|
|
| $ | 4,533 |
|
|
Net income per common share:
| | | | | | | | |
|
Basic
| |
$
|
0.75
| | | |
$
|
0.79
| | | |
$
|
0.77
| |
|
Diluted
| |
$
|
0.74
| | | |
$
|
0.78
| | | |
$
|
0.76
| |
|
Weighted average shares used to compute net income per common share:
| | | | | | | | |
|
Basic
| |
5,921
| | | |
5,913
| | | |
5,870
| |
|
Diluted
| |
6,048
| | | |
6,037
| | | |
5,980
| |
|
Dividends declared per common share
|
|
$
|
0.22
|
|
|
|
$
|
0.22
|
|
|
|
$
|
0.19
|
|
| Comprehensive income: | | | | | | | | |
|
Net income
| |
$
|
4,457
| | | |
$
|
4,692
| | | |
$
|
4,533
| |
|
Other comprehensive income
| | | | | | | | |
|
Change in net unrealized gain on available-for-sale securities
| |
1,317
| | | |
884
| | | |
1,415
| |
Reclassification adjustment for (gain) loss on available-for-sale
securities included in net income
|
|
(8
|
)
|
|
|
13
|
|
|
|
15
|
|
Net change in unrealized gain on available-for-sale securities,
before tax
| |
1,309
| | | |
897
| | | |
1,430
| |
|
Deferred tax expense
|
|
554
|
|
|
|
375
|
|
|
|
519
|
|
|
Other comprehensive income, net of tax
|
|
755
|
|
|
|
522
|
|
|
|
911
|
|
| Comprehensive income |
|
$
|
5,212
|
|
|
|
$
|
5,214
|
|
|
|
$
|
5,444
|
|
| | | | | | | | | | | | | |
|
|
|
| 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, 2015 | December 31, 2014 | March 31, 2014 |
| | |
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 | |
$
|
38,295
| |
$
|
21
| |
0.22
|
%
|
$
|
54,845
| |
$
|
36
| |
0.26
|
%
|
$
|
85,750
| |
$
|
51
| |
0.24
|
%
|
|
Investment securities 2, 3 | |
311,978
| |
1,927
| |
2.47
|
%
|
322,027
| |
1,887
| |
2.34
|
%
|
361,795
| |
2,293
| |
2.54
|
%
|
|
Loans 1, 3, 4 |
|
1,351,791
|
|
15,675
|
|
4.64
|
%
|
1,348,013
|
|
16,251
|
|
4.72
|
%
|
1,268,841
|
|
16,511
|
|
5.20
|
%
|
|
Total interest-earning assets 1 | |
1,702,064
| |
17,623
| |
4.14
|
%
|
1,724,885
| |
18,174
| |
4.12
|
%
|
1,716,386
| |
18,855
| |
4.39
|
%
|
|
Cash and non-interest-bearing due from banks
| |
41,073
| | | |
47,930
| | | |
41,793
| | | |
|
Bank premises and equipment, net
| |
9,839
| | | |
9,503
| | | |
9,088
| | | |
|
Interest receivable and other assets, net
|
|
58,132
|
|
|
|
56,718
|
|
|
|
55,829
|
|
|
|
| Total assets |
| $ | 1,811,108 |
|
|
| $ | 1,839,036 |
|
|
| $ | 1,823,096 |
|
|
|
|
Liabilities and Stockholders' Equity
| | | | | | | | | | |
|
Interest-bearing transaction accounts
| |
$
|
92,376
| |
$
|
30
| |
0.13
|
%
|
$
|
90,659
| |
$
|
25
| |
0.11
|
%
|
$
|
127,098
| |
$
|
23
| |
0.07
|
%
|
|
Savings accounts
| |
133,877
| |
12
| |
0.04
|
%
|
131,728
| |
12
| |
0.04
|
%
|
121,278
| |
11
| |
0.04
|
%
|
|
Money market accounts
| |
486,830
| |
127
| |
0.11
|
%
|
502,637
| |
135
| |
0.11
|
%
|
518,930
| |
158
| |
0.12
|
%
|
|
CDARS® time accounts
| |
4,689
| |
11
| |
0.95
|
%
|
—
| |
—
| |
—
|
%
|
—
| |
—
| |
—
|
%
|
|
Other time accounts
| |
149,429
| |
220
| |
0.60
|
%
|
150,298
| |
222
| |
0.59
|
%
|
160,978
| |
235
| |
0.59
|
%
|
|
FHLB borrowing and overnight borrowings1 | |
15,397
| |
78
| |
2.07
|
%
|
15,015
| |
80
| |
2.07
|
%
|
15,000
| |
78
| |
2.07
|
%
|
|
Subordinated debentures 1 |
|
5,207
|
|
104
|
|
7.99
|
%
|
5,152
|
|
106
|
|
8.05
|
%
|
4,988
|
|
105
|
|
8.58
|
%
|
|
Total interest-bearing liabilities
| |
887,805
| |
582
| |
0.27
|
%
|
895,489
| |
580
| |
0.26
|
%
|
948,272
| |
610
| |
0.26
|
%
|
|
Demand accounts
| |
705,024
| | | |
729,183
| | | |
674,689
| | | |
|
Interest payable and other liabilities
| |
15,594
| | | |
15,551
| | | |
15,748
| | | |
|
Stockholders' equity
|
|
202,685
|
|
|
|
198,813
|
|
|
|
184,387
|
|
|
|
| Total liabilities & stockholders' equity |
| $ | 1,811,108 |
|
|
| $ | 1,839,036 |
|
|
| $ | 1,823,096 |
|
|
|
|
Tax-equivalent net interest income/margin 1 |
|
|
$
|
17,041
|
|
4.00
|
%
|
|
$
|
17,594
|
|
3.99
|
%
|
|
$
|
18,245
|
|
4.25
|
%
|
|
Reported net interest income/margin 1 |
|
|
$
|
16,598
|
|
3.90
|
%
|
|
$
|
17,142
|
|
3.89
|
%
|
|
$
|
17,894
|
|
4.17
|
%
|
|
Tax-equivalent net interest rate spread
|
|
|
|
3.88
|
%
|
|
|
3.86
|
%
|
|
|
4.13
|
%
|
| | | | | | | | | |
|
| 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.
|
Pfaff PR for Bank of Marin
Sandy Pfaff, 415-819-7447
sandy@pfaffpr.com
Source: Bank of Marin Bancorp