NOVATO, Calif.--(BUSINESS WIRE)--
Bank of Marin Bancorp, "Bancorp" (NASDAQ:BMRC), parent company of Bank
of Marin, announced quarterly earnings of $4.8 million in the second
quarter of 2016, compared to $5.6 million in the first quarter of 2016
and $4.3 million in the second quarter of 2015. Diluted earnings per
share were $0.79 in the second quarter, compared to $0.93 in the prior
quarter and $0.71 in the same quarter a year ago. Year-to-date earnings
of $10.5 million grew 20.7% compared to $8.7 million for the same
six-month period a year ago. Diluted earnings per share were $1.72 in
the first six months of 2016, an increase from $1.44 for the same period
in 2015.
"Thanks to our consistent approach, we performed well in the first half
of 2016, producing excellent results," said Russell A. Colombo,
President and Chief Executive Officer. "We continue to build our
franchise and maintain our credit and expense discipline. We remain
focused on high-quality, organic growth through relationship banking in
our existing markets while actively seeking strategic acquisitions."
Bancorp also provided the following highlights on its operating and
financial performance for the second quarter of 2016:
-
We welcomed a number of new large marquee customers during the
quarter, affirming the value of our relationship-based model. Our
loan-to-deposit ratio was 84.9%, and our loan and deposit pipelines
are vibrant.
-
Loans totaled $1,448.4 million at June 30, 2016, compared to $1,441.8
million at March 31, 2016 and $1,339.2 million at June 30, 2015. New
loan volume of approximately $44.5 million in the second quarter of
2016 increased $15.5 million compared to the first quarter.
-
Deposit growth in the second quarter continued to reflect the strength
of our customer relationships. Non-interest bearing deposits now
represent 47.2% of total deposits and the cost of total deposits is
stable at 0.08%.
-
Strong credit quality remains the hallmark of our culture. Non-accrual
loans represented 0.19% of total loans as of June 30, 2016 resulting
in a Texas ratio of 1.35%. There was no provision for loan losses
recorded in the quarter, and a $150 thousand provision for off-balance
sheet commitments primarily related to an increase in commitments and
a decrease in the utilization of lines of credit.
-
All capital ratios are well above regulatory requirements for a
well-capitalized institution. The total risk-based capital ratio for
Bancorp was 14.1% at June 30, 2016 compared to 13.9% at March 31,
2016, and tangible common equity to tangible assets increased to 11.2%
at June 30, 2016 from 11.0% at March 31, 2016.
-
The Board of Directors declared a cash dividend of $0.25 per share on
July 22, 2016. This represents the 45th consecutive
quarterly dividend paid by Bank of Marin Bancorp. The dividend is
payable on August 12, 2016, to shareholders of record at the close of
business on August 5, 2016.
Loans and Credit Quality
Loan originations in the second quarter of 2016 were spread throughout
our markets with the majority focused in Marin County, Sonoma County and
San Francisco. By loan type, investor commercial real estate and
commercial and industrial accounted for the majority of the new loan
volume for the quarter.
Year-to-date loan originations appear to be on track with 2015 while
year-to-date payoffs are almost 20% lower than the first half of 2015.
Payoffs of $40.2 million in the quarter ended June 30, 2016 were
primarily the result of property sales or planned events.
Non-accrual loans totaled $2.7 million, or 0.19% of Bancorp's loan
portfolio at June 30, 2016, compared to $2.7 million, or 0.18%, at
March 31, 2016 and $7.1 million, or 0.53% a year ago. The decrease in
non-accrual loans from a year ago primarily relates to a previously
non-performing loan that was returned to accrual status and the payoff
of a commercial real estate loan. Accruing loans past due 30 to 89 days
totaled $135 thousand at June 30, 2016, compared to $584 thousand at
March 31, 2016 and $1.2 million a year ago.
There was no provision for loan losses recorded in the second quarter of
2016 as the quality of the loan portfolio did not warrant a provision,
consistent with the prior quarter and the same quarter a year ago. Net
recoveries for the second quarter totaled $59 thousand compared to $29
thousand in the prior quarter and net charge offs of $801 thousand in
the same quarter a year ago. The ratio of loan loss reserve to loans
totaled 1.04% at both June 30, 2016 and March 31, 2016, compared to
1.07% at June 30, 2015.
Investments and Borrowings
The investment portfolio totaled $381.9 million at June 30, 2016, a
decline of $17.6 million from March 31, 2016 mainly due to the sale of
investment securities. The Bank retired a $15 million fixed rate Federal
Home Loan Bank ("FHLB") advance which resulted in a prepayment penalty
of $312 thousand reflected in the quarter’s net interest margin. The
prepayment penalty was substantially offset by a $284 thousand gain on
the sale of securities which is reflected in non-interest income. These
actions are expected to improve the net interest margin by 4 basis
points going forward.
Deposits
Deposits totaled $1,705.6 million at June 30, 2016, compared to $1,681.3
million at March 31, 2016 and $1,630.5 million at June 30, 2015. While
day-to-day volatility continues due to the normal business activity of
our customers, the trend is upward in both average and ending balances.
Non-interest bearing deposits totaled $804.4 million, or 47.2% of total
deposits, compared to 45.1% at March 31, 2016 and 45.5% at June 30, 2015.
Earnings
"The positive year-over-year trends in earnings and financial measures
reflect Bank of Marin's robust business model," said Tani Girton, Chief
Financial Officer. "Our 0.99% return on assets and 61.35% efficiency
ratio in the second quarter are the result of the Bank's consistent
earnings and expense control which flow from diligent balance sheet
management, sound underwriting and relationship management."
Net interest income totaled $35.8 million in the first six months of
2016 compared to $33.1 million for the same period of 2015. The increase
of $2.7 million was primarily due to an increase in average earning
assets of $152.0 million. Additionally, an increase in acquired loan
income of $453 thousand in 2016 as seen in the table below was partially
offset by the FHLB prepayment penalty of $312 thousand.
Net interest income totaled $17.2 million in the second quarter of 2016,
compared to $18.6 million in the prior quarter and $16.5 million in the
same quarter a year ago. Net interest income decreased $1.4 million in
the second quarter compared to the prior quarter partially due to $740
thousand in gains on payoffs of Purchased Credit Impaired ("PCI") loans
and a $106 thousand loan principal and interest recovery recorded in the
first quarter. The prepayment penalty of $312 thousand on the retirement
of the FHLB fixed rate advance also contributed to the decrease.
The tax-equivalent net interest margin was 3.77% in the second quarter
of 2016, compared to 4.04% in the prior quarter and 3.86% in the same
quarter a year ago. The decrease from last quarter includes 16 basis
points related to the absence of payoffs of PCI loans and 7 basis points
related to the FHLB prepayment penalty.
Loans acquired through the acquisition of other banks are classified as
PCI or non-PCI loans and are recorded at fair value at acquisition date.
For acquired loans not considered credit impaired, the level of
accretion varies due to maturities and early payoffs. Accretion on PCI
loans fluctuates based on changes in cash flows expected to be
collected. Gains on payoffs of PCI loans are recorded as interest income
when the payoff amounts exceed the recorded investment. PCI loans
totaled $2.9 million, $2.8 million, and $5.1 million at June 30, 2016,
March 31, 2016 and June 30, 2015, respectively.
Accretion and gains on payoffs of purchased loans recorded to interest
income were as follows:
|
|
|
|
|
|
|
|
Three months ended
|
| | | June 30, 2016 |
|
| March 31, 2016 |
|
| June 30, 2015 |
| | | |
|
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 1 | | |
|
$
|
87
|
| | |
2 bps
| | |
|
$
|
98
|
| | |
2 bps
| | |
|
$
|
120
|
| | |
3 bps
|
|
Accretion on non-PCI loans 2 | | | |
$
|
317
| | | |
7 bps
| | | |
$
|
330
| | | |
7 bps
| | | |
$
|
465
| | | |
11 bps
|
|
Gains on payoffs of PCI loans
|
|
|
|
$
|
—
|
|
|
|
0 bps
|
|
|
|
$
|
740
|
|
|
|
16 bps
|
|
|
|
|
|
|
0 bps
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
| | | June 30, 2016 |
|
| June 30, 2015 |
| | | |
|
Basis point
| | | |
|
Basis point
|
| | |
Dollar
| |
impact to net
| | |
Dollar
| |
impact to net
|
|
(dollars in thousands; unaudited)
|
|
|
Amount
|
|
interest margin
|
|
|
Amount
|
|
interest margin
|
|
Accretion on PCI loans 1 | | |
$
|
185
| | |
2 bps
| | |
$
|
239
| | |
3 bps
|
|
Accretion on non-PCI loans 2 | | |
$
|
647
| | |
7 bps
| | |
$
|
837
| | |
10 bps
|
|
Gains on payoffs of PCI loans
|
|
|
$
|
740
|
|
|
8 bps
|
|
|
$
|
43
|
|
|
0 bps
|
| | | | | | | | | | | | | |
|
1 Accretable yield on PCI loans totaled $1.7 million,
$1.7 million and $3.7 million at June, 30, 2016, March 31, 2016
and June 30, 2015, respectively.
|
2 Unaccreted purchase discounts on non-PCI loans
totaled $2.5 million, $2.8 million and $3.7 million at June, 30,
2016, March 31, 2016 and June 30, 2015, respectively.
|
|
|
| |
Non-interest income in the second quarter of 2016 totaled $2.4 million,
compared to $2.2 million in the prior quarter and $2.6 million in the
same quarter a year ago. The increase compared to the prior quarter
primarily relates to a $284 thousand gain on the sale of four securities
in the second quarter of 2016 compared to a $110 thousand gain in the
first quarter of this year. The decrease from the same quarter last year
is primarily due to a $305 thousand special dividend from the FHLB and a
$147 thousand one-time settlement received in the second quarter of
2015, partially offset by this quarter's $284 thousand gain on sale of
securities.
Non-interest expense totaled $12.0 million in the second quarter of
2016, unchanged from the prior quarter and down from $12.3 million in
the same quarter a year ago. The decline from the second quarter of 2015
was due to a decrease in rent expense related to the relocation of some
offices in 2016, and one-time lease accounting adjustments recorded in
2015. These decreases were partially offset by a $150 thousand provision
for off-balance sheet commitments recorded in the second quarter of 2016
compared to a reversal of $109 thousand in the same quarter last year.
Earnings Call and Webcast Information
Bank of Marin Bancorp will webcast its second quarter earnings call on
Monday, July 25, 2016 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 “Investor Relations.” 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 $1.9 billion. Founded in 1989 and
headquartered in Novato, Bank of Marin is the wholly-owned subsidiary of
Bank of Marin Bancorp (NASDAQ: BMRC). With 20 retail offices in San
Francisco, Marin, Napa, Sonoma and Alameda counties, Bank of Marin
provides business and personal banking, commercial lending, and wealth
management and trust services. Specializing in providing legendary
service to its customers and investing in its local communities, Bank of
Marin was named 2016 Community Bank of the Year by Western Independent
Bankers and 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 NASDAQ ABA
Community Bank 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, general economic conditions, economic
uncertainty in the United States and abroad, changes in interest rates,
deposit flows, real estate values, costs or effects of future
acquisitions, competition, changes in accounting principles, policies or
guidelines, legislation or regulation, and other economic, competitive,
governmental, regulatory and technological factors (including external
fraud and cyber-security threats) 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.
|
|
| BANK OF MARIN BANCORP |
| FINANCIAL HIGHLIGHTS |
|
|
| | |
| | |
|
| |
(dollars in thousands, except per share data; unaudited)
| | | | | | | | | | |
| | | | | | |
|
QUARTER-TO-DATE | | | June 30, 2016 | | March 31, 2016 | | June 30, 2015 |
|
NET INCOME
| | |
$
|
4,837
| | | |
$
|
5,646
| | | |
$
|
4,286
| | |
|
DILUTED EARNINGS PER COMMON SHARE
| | |
$
|
0.79
| | | |
$
|
0.93
| | | |
$
|
0.71
| | |
|
RETURN ON AVERAGE ASSETS (ROA)
| | |
0.99
| |
%
| |
1.15
| |
%
| |
0.93
| |
%
|
|
RETURN ON AVERAGE EQUITY (ROE)
| | |
8.68
| |
%
| |
10.38
| |
%
| |
8.33
| |
%
|
|
EFFICIENCY RATIO
| | |
61.35
| |
%
| |
57.74
| |
%
| |
64.62
| |
%
|
|
TAX-EQUIVALENT NET INTEREST MARGIN1 | | |
3.77
| |
%
| |
4.04
| |
%
| |
3.86
| |
%
|
|
NET CHARGE-OFFS/(RECOVERIES)
| | |
$
|
(59
|
)
| | |
$
|
(29
|
)
| | |
$
|
801
| | |
|
NET CHARGE-OFFS/(RECOVERIES) TO AVERAGE LOANS
| | |
—
| |
%
| |
—
| |
%
| |
0.06
| |
%
|
| | | | | | | | | |
|
YEAR-TO-DATE | | | | | | | | | | |
|
NET INCOME
| | |
$
|
10,483
| | | | | | |
$
|
8,743
| | |
|
DILUTED EARNINGS PER COMMON SHARE
| | |
$
|
1.72
| | | | | | |
$
|
1.44
| | |
|
RETURN ON AVERAGE ASSETS (ROA)
| | |
1.07
| |
%
| | | | |
0.96
| |
%
|
|
RETURN ON AVERAGE EQUITY (ROE)
| | |
9.52
| |
%
| | | | |
8.62
| |
%
|
|
EFFICIENCY RATIO
| | |
59.49
| |
%
| | | | |
63.86
| |
%
|
|
TAX-EQUIVALENT NET INTEREST MARGIN1 | | |
3.90
| |
%
| | | | |
3.93
| |
%
|
|
NET CHARGE-OFFS/(RECOVERIES)
| | |
$
|
(89
|
)
| | | | | |
$
|
744
| | |
|
NET CHARGE-OFFS/(RECOVERIES) TO AVERAGE LOANS
| | |
(0.01
|
)
|
%
| | | | |
0.06
| |
%
|
| | | | | | | | | |
|
AT PERIOD END | | | | | | | | | | |
|
TOTAL ASSETS
| | |
$
|
1,950,452
| | | |
$
|
1,943,602
| | | |
$
|
1,870,762
| | |
| | | | | | | | | |
|
|
LOANS:
| | | | | | | | | | |
|
COMMERCIAL AND INDUSTRIAL
| | |
$
|
215,257
| | | |
$
|
213,068
| | | |
$
|
185,020
| | |
|
REAL ESTATE
| | | | | | | | | | |
|
COMMERCIAL OWNER-OCCUPIED
| | |
$
|
242,103
| | | |
$
|
238,332
| | | |
$
|
235,121
| | |
|
COMMERCIAL INVESTOR-OWNED
| | |
$
|
703,458
| | | |
$
|
707,340
| | | |
$
|
663,357
| | |
|
CONSTRUCTION
| | |
$
|
77,024
| | | |
$
|
74,528
| | | |
$
|
48,754
| | |
|
HOME EQUITY
| | |
$
|
112,240
| | | |
$
|
110,893
| | | |
$
|
115,493
| | |
|
OTHER RESIDENTIAL
| | |
$
|
73,761
| | | |
$
|
73,896
| | | |
$
|
73,721
| | |
|
INSTALLMENT AND OTHER CONSUMER LOANS
| | |
$
|
24,556
|
| | |
$
|
23,782
|
| | |
$
|
17,739
|
| |
|
TOTAL LOANS
| | |
$
|
1,448,399
| | | |
$
|
1,441,839
| | | |
$
|
1,339,205
| | |
| | | | | | | | | |
|
|
NON-PERFORMING LOANS2:
| | | | | | | | | | |
|
COMMERCIAL AND INDUSTRIAL
| | |
$
|
21
| | | |
$
|
21
| | | |
$
|
347
| | |
|
REAL ESTATE
| | | | | | | | | | |
|
COMMERCIAL OWNER-OCCUPIED
| | |
$
|
176
| | | |
$
|
—
| | | |
$
|
1,403
| | |
|
COMMERCIAL INVESTOR-OWNED
| | |
$
|
1,676
| | | |
$
|
1,789
| | | |
$
|
2,278
| | |
|
CONSTRUCTION
| | |
$
|
—
| | | |
$
|
—
| | | |
$
|
2,733
| | |
|
HOME EQUITY
| | |
$
|
789
| | | |
$
|
791
| | | |
$
|
265
| | |
|
OTHER RESIDENTIAL
| | |
$
|
—
| | | |
$
|
—
| | | |
$
|
—
| | |
|
INSTALLMENT AND OTHER CONSUMER LOANS
| | |
$
|
63
|
| | |
$
|
65
|
| | |
$
|
42
|
| |
|
TOTAL NON-ACCRUAL LOANS
| | |
$
|
2,725
| | | |
$
|
2,666
| | | |
$
|
7,068
| | |
| | | | | | | | | |
|
|
CLASSIFIED LOANS (GRADED SUBSTANDARD & DOUBTFUL)
| | |
$
|
20,399
| | | |
$
|
22,309
| | | |
$
|
27,806
| | |
|
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE
| | |
$
|
135
| | | |
$
|
584
| | | |
$
|
1,151
| | |
|
LOAN LOSS RESERVE TO LOANS
| | |
1.04
| |
%
| |
1.04
| |
%
| |
1.07
| |
%
|
|
LOAN LOSS RESERVE TO NON-ACCRUAL LOANS
| | |
5.54
| |
x
| |
5.64
| |
x
| |
2.03
| |
x
|
|
NON-ACCRUAL LOANS TO TOTAL LOANS
| | |
0.19
| |
%
| |
0.18
| |
%
| |
0.53
| |
%
|
| TEXAS RATIO3 | | |
1.35
| |
%
| |
1.36
| |
%
| |
3.54
| |
%
|
| | | | | | | | | |
|
|
TOTAL DEPOSITS
| | |
$
|
1,705,615
| | | |
$
|
1,681,346
| | | |
$
|
1,630,483
| | |
|
LOAN-TO-DEPOSIT RATIO
| | |
84.9
| |
%
| |
85.8
| |
%
| |
82.1
| |
%
|
|
STOCKHOLDERS' EQUITY
| | |
$
|
226,452
| | | |
$
|
221,646
| | | |
$
|
207,182
| | |
|
BOOK VALUE PER SHARE
| | |
$
|
37.00
| | | |
$
|
36.24
| | | |
$
|
34.63
| | |
|
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS4 | | |
11.2
| |
%
| |
11.0
| |
%
| |
10.6
| |
%
|
|
TOTAL RISK-BASED CAPITAL RATIO-BANK
| | |
13.8
| |
%
| |
13.6
| |
%
| |
13.8
| |
%
|
|
TOTAL RISK-BASED CAPITAL RATIO-BANCORP
| | |
14.1
| |
%
| |
13.9
| |
%
| |
14.1
| |
%
|
|
FULL-TIME EQUIVALENT EMPLOYEES
| | |
255
| | | |
256
| | | |
261
| | |
| 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
$19.9 million, $19.7 million and $16.1 million at June 30, 2016,
March 31, 2016 and June 30, 2015, respectively. Excludes purchased
credit-impaired (PCI) loans with carrying values of $2.9 million,
$2.8 million and $3.7 million that were accreting interest at June
30, 2016, March 31, 2016 and June 30, 2015, 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 $2.9 million, $2.8 million
and $5.1 million at June 30, 2016, March 31, 2016 and June 30, 2015,
respectively.
|
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 $9.3 million, $9.4 million and $9.9 million
at June 30, 2016, March 31, 2016 and June 30, 2015, respectively.
Tangible assets exclude goodwill and intangible assets.
|
|
|
|
|
| BANK OF MARIN BANCORP |
| CONSOLIDATED STATEMENTS OF CONDITION |
At June 30, 2016, March 31, 2016 and June 30, 2015 |
|
|
|
| |
| |
| |
|
(in thousands, except share data; unaudited)
|
|
|
| June 30, 2016 |
| March 31, 2016 |
| June 30, 2015 |
| Assets | | | | | | | | |
|
Cash and due from banks
| | | |
$
|
55,438
| | |
$
|
39,770
| | |
$
|
117,533
|
|
Investment securities
| | | | | | | | |
|
Held-to-maturity, at amortized cost
| | | |
58,491
| | |
63,246
| | |
94,475
|
|
Available-for-sale (at fair value; amortized cost $318,335, $333,044
and $252,709 at June 30, 2016, March 31, 2016 and June 30, 2015,
respectively)
|
|
|
|
323,361
|
|
|
336,234
|
|
|
254,018
|
|
Total investment securities
| | | |
381,852
| | |
399,480
| | |
348,493
|
|
Loans, net of allowance for loan losses of $15,087, $15,028 and
$14,354 at June 30, 2016, March 31, 2016 and June 30, 2015,
respectively
| | | |
1,433,312
| | |
1,426,811
| | |
1,324,851
|
|
Bank premises and equipment, net
| | | |
8,650
| | |
8,909
| | |
9,673
|
| Goodwill | | | |
6,436
| | |
6,436
| | |
6,436
|
|
Core deposit intangible
| | | |
2,846
| | |
2,980
| | |
3,423
|
|
Interest receivable and other assets
|
|
|
|
61,918
|
|
|
59,216
|
|
|
60,353
|
| Total assets |
|
|
| $ | 1,950,452 |
|
| $ | 1,943,602 |
|
| $ | 1,870,762 |
| | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | |
| Liabilities | | | | | | | | |
|
Deposits
| | | | | | | | |
|
Non-interest bearing
| | | |
$
|
804,447
| | |
$
|
758,869
| | |
$
|
741,107
|
|
Interest bearing
| | | | | | | | |
|
Transaction accounts
| | | |
88,365
| | |
102,829
| | |
95,622
|
|
Savings accounts
| | | |
149,745
| | |
145,874
| | |
132,377
|
|
Money market accounts
| | | |
502,476
| | |
514,274
| | |
502,263
|
|
Time accounts
|
|
|
|
160,582
|
|
|
159,500
|
|
|
159,114
|
|
Total deposits
| | | |
1,705,615
| | |
1,681,346
| | |
1,630,483
|
| Federal Home Loan Bank ("FHLB") and other borrowings
| | | |
—
| | |
19,350
| | |
15,000
|
|
Subordinated debentures
| | | |
5,493
| | |
5,445
| | |
5,291
|
|
Interest payable and other liabilities
|
|
|
|
12,892
|
|
|
15,815
|
|
|
12,806
|
|
Total liabilities
|
|
|
|
1,724,000
|
|
|
1,721,956
|
|
|
1,663,580
|
| | | | | | | |
|
| 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 -
6,120,684, 6,116,473 and 5,983,551 at June 30, 2016, March 31,
2016 and June 30, 2015, respectively
| | | |
86,569
| | |
86,133
| | |
83,826
|
|
Retained earnings
| | | |
136,992
| | |
133,681
| | |
122,625
|
|
Accumulated other comprehensive income, net
|
|
|
|
2,891
|
|
|
1,832
|
|
|
731
|
|
Total stockholders' equity
|
|
|
|
226,452
|
|
|
221,646
|
|
|
207,182
|
| Total liabilities and stockholders' equity |
|
|
| $ | 1,950,452 |
|
| $ | 1,943,602 |
|
| $ | 1,870,762 |
| | | | | | | | | | | | |
|
|
|
| BANK OF MARIN BANCORP |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
|
|
|
Three months ended
|
|
|
Six months ended
|
| | | | June 30,
|
| March 31,
| |
| June 30,
| | | June 30,
|
|
| June 30,
| |
(in thousands, except per share amounts; unaudited)
|
|
|
|
2016
|
|
2016
|
|
|
2015
| | |
2016
|
|
|
2015
|
|
| Interest income | | | | | | | | | | | | | | | | | |
|
Interest and fees on loans
| | | |
$
|
16,097
| | |
$
|
17,141
| | |
$
|
15,287
| |
| |
$
|
33,238
| | |
$
|
30,666
| |
|
Interest on investment securities
| | | | | | | | | | | | | | | | | |
|
Securities of U.S. government agencies
| | | |
1,191
| | |
1,352
| | |
990
| | | |
2,543
| | |
2,025
| |
|
Obligations of state and political subdivisions
| | | |
588
| | |
586
| | |
511
| | | |
1,174
| | |
1,051
| |
|
Corporate debt securities and other
| | | |
77
| | |
105
| | |
179
| | | |
182
| | |
384
| |
|
Interest on Federal funds sold and short-term investments
|
|
|
|
40
|
|
|
11
|
|
|
51
| | | |
51
|
|
|
72
|
|
|
Total interest income
| | | |
17,993
| | |
19,195
| | |
17,018
| | | |
37,188
| | |
34,198
| |
| Interest expense | | | | | | | | | | | | | | | | | |
|
Interest on interest-bearing transaction accounts
| | | |
28
| | |
27
| | |
30
| | | |
55
| | |
60
| |
|
Interest on savings accounts
| | | |
14
| | |
14
| | |
13
| | | |
28
| | |
25
| |
|
Interest on money market accounts
| | | |
107
| | |
111
| | |
123
| | | |
218
| | |
250
| |
|
Interest on time accounts
| | | |
193
| | |
196
| | |
215
| | | |
389
| | |
437
| |
|
Interest on FHLB and other borrowings
| | | |
378
| | |
100
| | |
78
| | | |
478
| | |
156
| |
|
Interest on subordinated debentures
|
|
|
|
107
|
|
|
109
|
|
|
105
| | | |
216
|
|
|
209
|
|
|
Total interest expense
|
|
|
|
827
|
|
|
557
|
|
|
564
| | | |
1,384
|
|
|
1,137
|
|
Net interest income
| | | |
17,166
| | |
18,638
| | |
16,454
| | | |
35,804
| | |
33,061
| |
|
Provision for loan losses
|
|
|
|
—
|
|
|
—
|
|
|
—
| | | |
—
|
|
|
—
|
|
|
Net interest income after provision for loan losses
|
|
|
|
17,166
|
|
|
18,638
|
|
|
16,454
| | | |
35,804
|
|
|
33,061
|
|
| Non-interest income | | | | | | | | | | | | | | | | | |
|
Service charges on deposit accounts
| | | |
441
| | |
456
| | |
504
| | | |
897
| | |
1,029
| |
| Wealth Management and Trust Services | | | |
527
| | |
566
| | |
603
| | | |
1,093
| | |
1,241
| |
|
Debit card interchange fees
| | | |
381
| | |
338
| | |
368
| | | |
719
| | |
715
| |
|
Merchant interchange fees
| | | |
128
| | |
113
| | |
129
| | | |
241
| | |
259
| |
|
Earnings on bank-owned life insurance
| | | |
209
| | |
201
| | |
203
| | | |
410
| | |
406
| |
|
Dividends on FHLB stock
| | | |
185
| | |
169
| | |
461
| | | |
354
| | |
608
| |
|
Gains on investment securities, net
| | | |
284
| | |
110
| | |
—
| | | |
394
| | |
8
| |
|
Other income
|
|
|
|
266
|
|
|
210
|
|
|
340
|
| | |
476
|
|
|
531
|
|
|
Total non-interest income
|
|
|
|
2,421
|
|
|
2,163
|
|
|
2,608
|
| | |
4,584
|
|
|
4,797
|
|
| Non-interest expense | | | | | | | | | | | | | | | | | |
|
Salaries and related benefits
| | | |
6,724
| | |
6,748
| | |
6,672
| | | |
13,472
| | |
13,462
| |
|
Occupancy and equipment
| | | |
1,175
| | |
1,281
| | |
1,493
| | | |
2,456
| | |
2,835
| |
|
Depreciation and amortization
| | | |
441
| | |
453
| | |
650
| | | |
894
| | |
1,071
| |
| Federal Deposit Insurance Corporation insurance
| | | |
246
| | |
261
| | |
253
| | | |
507
| | |
489
| |
|
Data processing
| | | |
916
| | |
856
| | |
792
| | | |
1,772
| | |
1,578
| |
|
Professional services
| | | |
554
| | |
498
| | |
515
| | | |
1,052
| | |
1,079
| |
|
Directors' expense
| | | |
116
| | |
189
| | |
247
| | | |
305
| | |
438
| |
|
Information technology
| | | |
165
| | |
193
| | |
216
| | | |
358
| | |
368
| |
|
Provision for (reversal of) losses on off-balance sheet commitments
| | | |
150
| | |
—
| | |
(109
|
)
| | |
150
| | |
(310
|
)
|
|
Other expense
|
|
|
|
1,530
|
|
|
1,531
|
|
|
1,590
|
| | |
3,061
|
|
|
3,166
|
|
|
Total non-interest expense
|
|
|
|
12,017
|
|
|
12,010
|
|
|
12,319
|
| | |
24,027
|
|
|
24,176
|
|
|
Income before provision for income taxes
| | | |
7,570
| | |
8,791
| | |
6,743
| | | |
16,361
| | |
13,682
| |
|
Provision for income taxes
|
|
|
|
2,733
|
|
|
3,145
|
|
|
2,457
|
| | |
5,878
|
|
|
4,939
|
|
| Net income |
|
|
| $ | 4,837 |
|
| $ | 5,646 |
|
| $ | 4,286 |
| | | $ | 10,483 |
|
| $ | 8,743 |
|
|
Net income per common share:
| | | | | | | | | | | | | | | | | |
|
Basic
| | | |
$
|
0.80
| | |
$
|
0.93
| | |
$
|
0.72
| | | |
$
|
1.73
| | |
$
|
1.47
| |
|
Diluted
| | | |
$
|
0.79
| | |
$
|
0.93
| | |
$
|
0.71
| | | |
$
|
1.72
| | |
$
|
1.44
| |
|
Weighted average shares used to compute net income per common share:
| | | | | | | | | | | | | | | | | |
|
Basic
| | | |
6,078
| | |
6,048
| | |
5,945
| | | |
6,063
| | |
5,933
| |
|
Diluted
| | | |
6,109
| | |
6,092
| | |
6,062
| | | |
6,100
| | |
6,055
| |
|
Dividends declared per common share
|
|
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
$
|
0.22
|
| | |
$
|
0.50
|
|
|
$
|
0.44
|
|
| Comprehensive income: | | | | | | | | | | | | | | | | | |
|
Net income
| | | |
$
|
4,837
| | |
$
|
5,646
| | |
$
|
4,286
| | | |
$
|
10,483
| | |
$
|
8,743
| |
|
Other comprehensive income
| | | | | | | | | | | | | | | | | |
Change in net unrealized gain (loss) on available-for-sale
securities
| | | |
2,119
| | |
2,923
| | |
(1,803
|
)
| | |
5,042
| | |
(486
|
)
|
Reclassification adjustment for (gains) on available-for-sale
securities included in net income
|
|
|
|
(284
|
)
|
|
(110
|
)
|
|
—
|
| | |
(394
|
)
|
|
(8
|
)
|
Net change in unrealized gain (loss) on available-for-sale
securities, before tax
| | | |
1,835
| | |
2,813
| | |
(1,803
|
)
| | |
4,648
| | |
(494
|
)
|
|
Deferred tax expense (benefit)
|
|
|
|
776
|
|
|
1,174
|
|
|
(691
|
)
| | |
1,950
|
|
|
(137
|
)
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
1,059
|
|
|
1,639
|
|
|
(1,112
|
)
| | |
2,698
|
|
|
(357
|
)
|
| Comprehensive income |
|
|
|
$
|
5,896
|
|
|
$
|
7,285
|
|
|
$
|
3,174
|
| | |
$
|
13,181
|
|
|
$
|
8,386
|
|
| | | | | | | | | | | | | | | | | | | | | | |
|
|
|
| BANK OF MARIN BANCORP |
| AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST
INCOME |
|
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| | | |
Three months ended
| |
Three months ended
| |
Three months ended
|
| | | | June 30, 2016 |
| March 31, 2016 |
| June 30, 2015 |
| | | | | |
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 | | | |
$
|
28,766
| | |
$
|
39
| | |
0.54
|
%
| |
$
|
8,996
| | |
$
|
11
| | |
0.48
|
%
| |
$
|
76,710
| | |
$
|
52
| | |
0.27
|
%
|
|
Investment securities 2, 3 | | | |
389,023
| | |
2,080
| | |
2.14
|
%
| |
428,055
| | |
2,264
| | |
2.12
|
%
| |
319,032
| | |
1,842
| | |
2.31
|
%
|
|
Loans 1, 3, 4 |
|
|
|
1,440,847
|
|
|
16,416
|
|
|
4.51
|
%
|
|
1,442,601
|
|
|
17,456
|
|
|
4.79
|
%
|
|
1,336,249
|
|
|
15,587
|
|
|
4.61
|
%
|
|
Total interest-earning assets 1 | | | |
1,858,636
| | |
18,535
| | |
3.95
|
%
| |
1,879,652
| | |
19,731
| | |
4.15
|
%
| |
1,731,991
| | |
17,481
| | |
3.99
|
%
|
|
Cash and non-interest-bearing due from banks
| | | |
40,540
| | | | | | |
29,823
| | | | | | |
48,955
| | | | | |
|
Bank premises and equipment, net
| | | |
8,827
| | | | | | |
9,143
| | | | | | |
9,841
| | | | | |
|
Interest receivable and other assets, net
|
|
|
|
60,205
|
|
|
|
|
|
|
58,195
|
|
|
|
|
|
|
58,744
|
|
|
|
|
|
| Total assets |
|
|
| $ | 1,968,208 |
|
|
|
|
|
| $ | 1,976,813 |
|
|
|
|
|
| $ | 1,849,531 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity
| | | | | | | | | | | | | | | | | | | | |
|
Interest-bearing transaction accounts
| | | |
$
|
93,355
| | |
$
|
28
| | |
0.12
|
%
| |
$
|
100,990
| | |
$
|
27
| | |
0.11
|
%
| |
$
|
94,960
| | |
$
|
30
| | |
0.13
|
%
|
|
Savings accounts
| | | |
149,234
| | |
14
| | |
0.04
|
%
| |
142,499
| | |
14
| | |
0.04
|
%
| |
131,564
| | |
12
| | |
0.04
|
%
|
|
Money market accounts
| | | |
510,727
| | |
107
| | |
0.08
|
%
| |
528,984
| | |
111
| | |
0.08
|
%
| |
488,422
| | |
123
| | |
0.10
|
%
|
|
Time accounts including CDARS
| | | |
160,031
| | |
192
| | |
0.48
|
%
| |
160,943
| | |
196
| | |
0.50
|
%
| |
157,982
| | |
215
| | |
0.55
|
%
|
|
Overnight borrowings1 | | | |
1,082
| | |
1
| | |
0.40
|
%
| |
20,567
| | |
22
| | |
0.42
|
%
| |
—
| | |
—
| | |
—
|
%
|
|
FHLB fixed-rate advances
| | | |
12,363
| | |
377
| | |
12.07
|
%
| |
15,000
| | |
78
| | |
2.07
|
%
| |
15,000
| | |
79
| | |
2.07
|
%
|
|
Subordinated debentures 1 |
|
|
|
5,471
|
|
|
108
|
|
|
7.78
|
%
|
|
5,418
|
|
|
109
|
|
|
7.96
|
%
|
|
5,259
|
|
|
105
|
|
|
7.90
|
%
|
|
Total interest-bearing liabilities
| | | |
932,263
| | |
827
| | |
0.36
|
%
| |
974,401
| | |
557
| | |
0.23
|
%
| |
893,187
| | |
564
| | |
0.25
|
%
|
|
Demand accounts
| | | |
797,935
| | | | | | |
767,579
| | | | | | |
735,481
| | | | | |
|
Interest payable and other liabilities
| | | |
13,853
| | | | | | |
15,980
| | | | | | |
14,358
| | | | | |
|
Stockholders' equity
|
|
|
|
224,157
|
|
|
|
|
|
|
218,853
|
|
|
|
|
|
|
206,505
|
|
|
|
|
|
| Total liabilities & stockholders' equity |
|
|
| $ | 1,968,208 |
|
|
|
|
|
| $ | 1,976,813 |
|
|
|
|
|
| $ | 1,849,531 |
|
|
|
|
|
|
Tax-equivalent net interest income/margin 1 |
|
|
|
|
|
$
|
17,708
|
|
|
3.77
|
%
|
|
|
|
$
|
19,174
|
|
|
4.04
|
%
|
|
|
|
$
|
16,917
|
|
|
3.86
|
%
|
|
Reported net interest income/margin 1 |
|
|
|
|
|
$
|
17,166
|
|
|
3.65
|
%
|
|
|
|
$
|
18,638
|
|
|
3.92
|
%
|
|
|
|
$
|
16,454
|
|
|
3.76
|
%
|
|
Tax-equivalent net interest rate spread
|
|
|
|
|
|
|
|
3.59
|
%
|
|
|
|
|
|
3.92
|
%
|
|
|
|
|
|
3.74
|
%
|
| | | | | | | | | | | | | | | | | | | |
|
| | | |
Six months ended
| |
Six months ended
| | |
| | | | June 30, 2016 |
| June 30, 2015 | | |
| | | | | |
Interest
| | | | | |
Interest
| | | | | | | | |
| | | |
Average
| |
Income/
| |
Yield/
| |
Average
| |
Income/
| |
Yield/
| | | | | | |
|
(Dollars in thousands; unaudited)
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
| | | | | | |
|
Assets
| | | | | | | | | | | | | | | | | | | | |
|
Interest-bearing due from banks 1 | | | |
$
|
18,881
| | |
$
|
51
| | |
0.53
|
%
| |
$
|
57,608
| | |
$
|
72
| | |
0.25
|
%
| | | | | | |
|
Investment securities 2, 3 | | | |
408,539
| | |
4,344
| | |
2.13
|
%
| |
315,525
| | |
3,770
| | |
2.39
|
%
| | | | | | |
|
Loans 1, 3, 4 |
|
|
|
1,441,724
|
|
|
33,872
|
|
|
4.65
|
%
|
|
1,343,977
|
|
|
31,263
|
|
|
4.63
|
%
| | | | | | |
|
Total interest-earning assets 1 | | | |
1,869,144
| | |
38,267
| | |
4.05
|
%
| |
1,717,110
| | |
35,105
| | |
4.07
|
%
| | | | | | |
|
Cash and non-interest-bearing due from banks
| | | |
35,182
| | | | | | |
45,036
| | | | | | | | | | | |
|
Bank premises and equipment, net
| | | |
8,985
| | | | | | |
9,840
| | | | | | | | | | | |
|
Interest receivable and other assets, net
|
|
|
|
59,200
|
|
|
|
|
|
|
58,440
|
|
|
|
|
| | | | | | |
| Total assets |
|
|
| $ | 1,972,511 |
|
|
|
|
|
| $ | 1,830,426 |
|
|
|
|
| | | | | | |
|
Liabilities and Stockholders' Equity
| | | | | | | | | | | | | | | | | | | | |
|
Interest-bearing transaction accounts
| | | |
$
|
97,173
| | |
$
|
55
| | |
0.11
|
%
| |
$
|
93,676
| | |
$
|
60
| | |
0.13
|
%
| | | | | | |
|
Savings accounts
| | | |
145,866
| | |
28
| | |
0.04
|
%
| |
132,714
| | |
25
| | |
0.04
|
%
| | | | | | |
|
Money market accounts
| | | |
519,856
| | |
218
| | |
0.08
|
%
| |
487,630
| | |
250
| | |
0.10
|
%
| | | | | | |
|
Time accounts including CDARS
| | | |
160,486
| | |
389
| | |
0.49
|
%
| |
156,055
| | |
437
| | |
0.56
|
%
| | | | | | |
|
Overnight borrowings 1 | | | |
10,825
| | |
23
| | |
0.42
|
%
| |
197
| | |
—
| | |
—
|
%
| | | | | | |
|
FHLB borrowing and overnight borrowings1 | | | |
13,681
| | |
456
| | |
6.59
|
%
| |
15,000
| | |
156
| | |
2.07
|
%
| | | | | | |
|
Subordinated debentures 1 |
|
|
|
5,445
|
|
|
216
|
|
|
7.86
|
%
|
|
5,233
|
|
|
209
|
|
|
8.05
|
%
| | | | | | |
|
Total interest-bearing liabilities
| | | |
953,332
| | |
1,385
| | |
0.29
|
%
| |
890,505
| | |
1,137
| | |
0.26
|
%
| | | | | | |
|
Demand accounts
| | | |
782,757
| | | | | | |
720,342
| | | | | | | | | | | |
|
Interest payable and other liabilities
| | | |
14,917
| | | | | | |
14,973
| | | | | | | | | | | |
|
Stockholders' equity
|
|
|
|
221,505
|
|
|
|
|
|
|
204,606
|
|
|
|
|
| | | | | | |
| Total liabilities & stockholders' equity |
|
|
| $ | 1,972,511 |
|
|
|
|
|
| $ | 1,830,426 |
|
|
|
|
| | | | | | |
|
Tax-equivalent net interest income/margin 1 |
|
|
|
|
|
$
|
36,882
|
|
|
3.90
|
%
|
|
|
|
$
|
33,968
|
|
|
3.93
|
%
| | | | | | |
|
Reported net interest income/margin 1 |
|
|
|
|
|
$
|
35,804
|
|
|
3.79
|
%
|
|
|
|
$
|
33,061
|
|
|
3.83
|
%
| | | | | | |
|
Tax-equivalent net interest rate spread
|
|
|
|
|
|
|
|
3.76
|
%
|
|
|
|
|
|
3.81
|
%
| | | | | | |
| 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.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160725005248/en/
Bank of Marin Bancorp
Sandy Pfaff, 415-819-7447
sandy@pfaffpr.com
Source: Bank of Marin Bancorp