Results Reflect Strong 4th Quarter Loan Volume and Gains
NOVATO, Calif.--(BUSINESS WIRE)--
Bank of Marin Bancorp, "Bancorp" (NASDAQ:BMRC), parent company of Bank
of Marin, announced record quarterly earnings of $5.6 million in the
first quarter of 2016, compared to $4.9 million in the fourth quarter of
2015 and $4.5 million in the first quarter of 2015. Diluted earnings per
share totaled $0.93 in the first quarter, an increase from $0.81 in the
prior quarter and $0.74 in the same quarter a year ago.
“We built up considerable earnings momentum coming out of 2015 which is
reflected in our first quarter results. Gains on acquired loan payoffs
and securities sales also had a positive impact on earnings in the first
quarter,” said Russell A. Colombo, President and Chief Executive
Officer. “Our deposit and loan pipelines are healthy and we made some
important commercial banking hires in the quarter, primarily in the East
Bay and Santa Rosa markets.”
Bancorp also provided the following highlights on its operating and
financial performance for the first quarter of 2016:
-
Loans totaled $1,441.8 million at March 31, 2016, compared to $1,451.2
million at December 31, 2015 and $1,346.5 million at March 31, 2015.
New loan volume of approximately $29 million in the first quarter of
2016 was offset by payoffs of approximately $37 million.
-
Deposits continue to reflect the strength of our customer
relationships. Non-interest bearing deposits make up 45.1% of total
deposits and the cost of total deposits is 0.08%.
-
Credit quality remains a cornerstone of our credit culture.
Non-accrual loans represent 0.18% of total loans as of March 31, 2016
with the Texas Ratio at 1.36%. There was no provision for loan losses
recorded in the quarter.
-
At 10.38%, return on equity is up from 9.12% in the fourth quarter of
2015 and 8.92% in the first quarter of 2015. Return on assets is also
up to 1.15% from 0.98% in the prior quarter and 1.00% a year ago.
-
All capital ratios are well above regulatory requirements for a
well-capitalized institution. The total risk-based capital ratio for
Bancorp was 13.9% at March 31, 2016 compared to 13.4% at December 31,
2015 and tangible common equity to tangible assets increased to 11.0%
at March 31, 2016 from 10.1% at December 31, 2015.
-
To reflect the strength of the Bank and its future prospects, the
Board of Directors declared a quarterly cash dividend of $0.25 per
share on April 22, 2016. The cash dividend is payable to shareholders
of record at the close of business on May 6, 2016 and will be payable
on May 13, 2016.
Loans and Credit Quality
Geographically, loan originations were distributed across our markets.
By loan type, investor commercial real estate and commercial and
industrial, including related owner-occupied commercial real estate,
accounted for the majority of the new loan volume for the quarter.
Non-accrual loans totaled $2.7 million, or 0.18% of Bancorp's loan
portfolio at March 31, 2016, compared to $2.2 million, or 0.15%, at
December 31, 2015 and $9.5 million, or 0.70% 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, the payoff of a
commercial real estate loan, and a land development loan that was sold.
Accruing loans past due 30 to 89 days totaled $584 thousand at March 31,
2016, compared to $2.1 million at December 31, 2015 and $949 thousand a
year ago.
There was no provision for loan losses recorded in the first quarter of
2016 as the existing level of loan loss reserve did not warrant a
provision, consistent with the same quarter a year ago. A provision for
loan losses of $500 thousand was recorded in the prior quarter primarily
due to the significant loan growth in the fourth quarter. Net recoveries
for the first quarter totaled $29 thousand compared to $42 thousand in
the prior quarter and $57 thousand in the same quarter a year ago. The
ratio of loan loss reserve to loans totaled 1.04% at March 31, 2016,
compared to 1.03% at December 31, 2015 and 1.13% at March 31, 2015.
Investments and Borrowings
The investment portfolio totaled $399.5 million at March 31, 2016, a
decline of $87.9 million from December 31, 2015. In addition to paydowns
and maturities in the securities portfolio, $54.9 million in securities
were sold at gains totaling $110 thousand, and overnight borrowings were
reduced by $47.7 million.
Deposits
Deposits totaled $1,681.3 million at March 31, 2016, compared to
$1,728.2 million at December 31, 2015 and $1,585.1 million at March 31,
2015. The $46.9 million decline was due to normal seasonal factors in
several deposit customers' balances related to their business models.
Non-interest bearing deposits totaled $758.9 million, or 45.1% of total
deposits, compared to 44.6% at December 31, 2015 and 45.2% at March 31,
2015.
Earnings
“We are pleased to have increased our net interest margin while staying
true to our credit culture,” said Tani Girton, Chief Financial Officer.
“Our expense discipline is evident in the 57.74% efficiency ratio, and
strong capital and liquidity positions will support continued growth in
2016.”
Net interest income totaled $18.6 million in the first quarter of 2016,
compared to $17.2 million in the prior quarter and $16.6 million in the
same quarter a year ago. Interest income increased due to higher average
loan balances in the first quarter of 2016 related to substantial loan
growth late in the fourth quarter of 2015. Gains on payoffs of Purchased
Credit Impaired ("PCI") loans in the first quarter of 2016 also
contributed to the increase.
The tax-equivalent net interest margin was 4.04% in the first quarter of
2016, compared to 3.70% in the prior quarter and 4.00% in the same
quarter a year ago. The increase from last quarter includes 10 basis
points related to a shift in the mix of interest-earning assets from
lower yielding interest-bearing cash and investment securities to higher
yielding loans. Another 21 basis points came from PCI loan payoffs and
market value adjustments on interest rate swaps.
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 $2.8 million, $3.7 million, and $5.1 million at March 31, 2016,
December 31, 2015 and March 31, 2015, respectively.
Accretion and gains on payoffs of purchased loans recorded to interest
income were as follows:
|
|
|
Three months ended
|
| | | March 31, 2016 |
|
| December 31, 2015 |
|
| March 31, 2015 |
|
(dollars in thousands; unaudited)
|
|
|
Dollar
Amount
|
|
Basis point
impact to net
interest margin
|
|
|
Dollar
Amount
|
|
Basis point
impact to net
interest margin
|
|
|
Dollar
Amount
|
|
Basis point
impact to net
interest margin
|
|
Accretion on PCI loans
| | |
|
$
|
98
|
| |
|
2 bps
| | |
|
$
|
128
|
| |
|
3 bps
| | |
|
$
|
119
|
| |
|
3 bps
|
|
Accretion on non-PCI loans
| | | |
$
|
330
| | | |
7 bps
| | | |
$
|
243
| | | |
5 bps
| | | |
$
|
371
| | | |
9 bps
|
|
Gains on payoffs of PCI loans
| | | |
$
|
740
| | | |
16 bps
| | | |
$
|
—
| | | |
0 bps
| | | |
$
|
43
| | | |
1 bps
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Non-interest income in the first quarter of 2016 totaled $2.2 million,
compared to $2.1 million in the prior quarter and $2.2 million in the
same quarter a year ago. The increase compared to the prior quarter
relates to a $110 thousand net gain on the sale of four government
agency debentures.
Non-interest expense totaled $12.0 million in the first quarter of 2016,
compared to $11.1 million in the prior quarter and $11.8 million in the
same quarter a year ago. Non-interest expense was higher than the prior
quarter and the first quarter of 2015 due to reductions in the
off-balance sheet reserve in the first and fourth quarters of 2015.
First quarter 2016 non-interest expense was also higher than the prior
quarter due to 401(k) employer matching contributions, a decline in
deferred costs related to the lower level of loan originations and a
reversal of accrued incentive bonus in December 2015.
Earnings Call and Webcast Information
Bank of Marin Bancorp will webcast its first quarter earnings call on
Monday, April 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 $2 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 |
| March 31, 2016 |
|
(dollars in thousands, except per share data; unaudited)
| |
QUARTER-TO-DATE |
|
| March 31, 2016 |
|
|
| December 31, 2015 |
|
|
| March 31, 2015 |
|
|
NET INCOME
| | |
$
|
5,646
| | | | |
$
|
4,925
| | | | |
$
|
4,457
| | |
|
DILUTED EARNINGS PER COMMON SHARE
| | |
$
|
0.93
| | | | |
$
|
0.81
| | | | |
$
|
0.74
| | |
|
RETURN ON AVERAGE ASSETS (ROA)
| | |
1.15
| |
%
| | |
0.98
| |
%
| | |
1.00
| |
%
|
|
RETURN ON AVERAGE EQUITY (ROE)
| | |
10.38
| |
%
| | |
9.12
| |
%
| | |
8.92
| |
%
|
|
EFFICIENCY RATIO
| | |
57.74
| |
%
| | |
57.57
| |
%
| | |
63.07
| |
%
|
|
TAX-EQUIVALENT NET INTEREST MARGIN1 | | |
4.04
| |
%
| | |
3.70
| |
%
| | |
4.00
| |
%
|
|
NET CHARGE-OFFS/(RECOVERIES)
| | |
$
|
(29
|
)
| | | |
$
|
(42
|
)
| | | |
$
|
(57
|
)
| |
|
NET CHARGE-OFFS/(RECOVERIES) TO AVERAGE LOANS
| | |
—
| |
%
| | |
—
| |
%
| | |
—
| |
%
|
| | | | | | | | | | | |
|
AT PERIOD END | | | | | | | | | | | | |
|
TOTAL ASSETS
| | |
$
|
1,943,602
| | | | |
$
|
2,031,134
| | | | |
$
|
1,826,149
| | |
| | | | | | | | | | | |
|
|
LOANS:
| | | | | | | | | | | | |
|
COMMERCIAL AND INDUSTRIAL
| | |
$
|
213,068
| | | | |
$
|
219,452
| | | | |
$
|
196,442
| | |
|
REAL ESTATE
| | | | | | | | | | | | |
|
COMMERCIAL OWNER-OCCUPIED
| | |
$
|
238,332
| | | | |
$
|
242,309
| | | | |
$
|
235,337
| | |
|
COMMERCIAL INVESTOR-OWNED
| | |
$
|
707,340
| | | | |
$
|
715,879
| | | | |
$
|
653,848
| | |
|
CONSTRUCTION
| | |
$
|
74,528
| | | | |
$
|
65,495
| | | | |
$
|
57,050
| | |
|
HOME EQUITY
| | |
$
|
110,893
| | | | |
$
|
112,300
| | | | |
$
|
113,277
| | |
|
OTHER RESIDENTIAL
| | |
$
|
73,896
| | | | |
$
|
73,154
| | | | |
$
|
73,375
| | |
|
INSTALLMENT AND OTHER CONSUMER LOANS
| | |
$
|
23,782
|
| | | |
$
|
22,639
|
| | | |
$
|
17,155
|
| |
|
TOTAL LOANS
| | |
$
|
1,441,839
| | | | |
$
|
1,451,228
| | | | |
$
|
1,346,484
| | |
| | | | | | | | | | | |
|
|
NON-PERFORMING LOANS2:
| | | | | | | | | | | | |
|
COMMERCIAL AND INDUSTRIAL
| | |
$
|
21
| | | | |
$
|
21
| | | | |
$
|
373
| | |
|
REAL ESTATE
| | | | | | | | | | | | |
|
COMMERCIAL OWNER-OCCUPIED
| | |
$
|
—
| | | | |
$
|
—
| | | | |
$
|
1,403
| | |
|
COMMERCIAL INVESTOR-OWNED
| | |
$
|
1,789
| | | | |
$
|
1,903
| | | | |
$
|
2,354
| | |
|
CONSTRUCTION
| | |
$
|
—
| | | | |
$
|
1
| | | | |
$
|
5,107
| | |
|
HOME EQUITY
| | |
$
|
791
| | | | |
$
|
171
| | | | |
$
|
166
| | |
|
OTHER RESIDENTIAL
| | |
$
|
—
| | | | |
$
|
—
| | | | |
$
|
—
| | |
|
INSTALLMENT AND OTHER CONSUMER LOANS
| | |
$
|
65
|
| | | |
$
|
83
|
| | | |
$
|
79
|
| |
|
TOTAL NON-ACCRUAL LOANS
| | |
$
|
2,666
| | | | |
$
|
2,179
| | | | |
$
|
9,482
| | |
| | | | | | | | | | | |
|
|
CLASSIFIED LOANS (GRADED SUBSTANDARD & DOUBTFUL)
| | |
$
|
22,309
| | | | |
$
|
22,331
| | | | |
$
|
34,129
| | |
|
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE
| | |
$
|
584
| | | | |
$
|
2,104
| | | | |
$
|
949
| | |
|
LOAN LOSS RESERVE TO LOANS
| | |
1.04
| |
%
| | |
1.03
| |
%
| | |
1.13
| |
%
|
|
LOAN LOSS RESERVE TO NON-ACCRUAL LOANS
| | |
5.64
| |
x
| | |
6.88
| |
x
| | |
1.60
| |
x
|
|
NON-ACCRUAL LOANS TO TOTAL LOANS
| | |
0.18
| |
%
| | |
0.15
| |
%
| | |
0.70
| |
%
|
| TEXAS RATIO3 | | |
1.36
| |
%
| | |
1.18
| |
%
| | |
4.71
| |
%
|
| | | | | | | | | | | |
|
|
TOTAL DEPOSITS
| | |
$
|
1,681,346
| | | | |
$
|
1,728,226
| | | | |
$
|
1,585,120
| | |
|
LOAN-TO-DEPOSIT RATIO
| | |
85.8
| |
%
| | |
84.0
| |
%
| | |
84.9
| |
%
|
|
STOCKHOLDERS' EQUITY
| | |
$
|
221,646
| | | | |
$
|
214,473
| | | | |
$
|
204,506
| | |
|
BOOK VALUE PER SHARE
| | |
$
|
36.24
| | | | |
$
|
35.34
| | | | |
$
|
34.27
| | |
|
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS4 | | |
11.0
| |
%
| | |
10.1
| |
%
| | |
10.7
| |
%
|
|
TOTAL RISK-BASED CAPITAL RATIO-BANK
| | |
13.6
| |
%
| | |
13.1
| |
%
| | |
13.5
| |
%
|
|
TOTAL RISK-BASED CAPITAL RATIO-BANCORP
| | |
13.9
| |
%
| | |
13.4
| |
%
| | |
13.8
| |
%
|
|
FULL-TIME EQUIVALENT EMPLOYEES
| | |
256
| | | | |
259
| | | | |
267
| | |
| | | | | | | | | | | |
|
| 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
$19.7 million, $19.0 million and $15.6 million at March 31, 2016,
December 31, 2015 and March 31, 2015, respectively. Excludes
purchased credit-impaired (PCI) loans with carrying values of $2.8
million, $3.7 million and $3.7 million that were accreting interest
at March 31, 2016, December 31, 2015 and March 31, 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 $2.8
million, $3.7 million and $5.1 million at March 31, 2016, December
31, 2015 and March 31, 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 $9.4 million, $9.5 million and $10.0 million
at March 31, 2016, December 31, 2015 and March 31, 2015,
respectively. Tangible assets exclude goodwill and intangible
assets.
|
|
|
|
|
| BANK OF MARIN BANCORP |
| CONSOLIDATED STATEMENTS OF CONDITION |
at March 31, 2016, December 31, 2015 and March 31, 2015 |
|
|
| |
|
| |
|
| |
| | | March 31,
| | | December 31,
| | | March 31,
|
|
(in thousands, except share data; unaudited)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
| Assets | | | | | | | | | |
|
Cash and due from banks
| | |
$
|
39,770
| | | |
$
|
26,343
| | | |
$
|
103,164
|
|
Investment securities
| | | | | | | | | |
|
Held-to-maturity, at amortized cost
| | |
63,246
| | | |
69,637
| | | |
107,476
|
|
Available-for-sale, at fair value
|
|
|
336,234
|
|
|
|
417,787
|
|
|
|
204,680
|
|
Total investment securities
| | |
399,480
| | | |
487,424
| | | |
312,156
|
|
Loans, net of allowance for loan losses of $15,028, $14,999 and
$15,156 at March 31, 2016, December 31, 2015 and March 31, 2015,
respectively
| | |
1,426,811
| | | |
1,436,229
| | | |
1,331,328
|
|
Bank premises and equipment, net
| | |
8,909
| | | |
9,305
| | | |
9,852
|
| Goodwill | | |
6,436
| | | |
6,436
| | | |
6,436
|
|
Core deposit intangible
| | |
2,980
| | | |
3,113
| | | |
3,577
|
|
Interest receivable and other assets
|
|
|
59,216
|
|
|
|
62,284
|
|
|
|
59,636
|
| Total assets |
|
| $ | 1,943,602 |
|
|
| $ | 2,031,134 |
|
|
| $ | 1,826,149 |
| | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | |
| Liabilities | | | | | | | | | |
|
Deposits
| | | | | | | | | |
|
Non-interest bearing
| | |
$
|
758,869
| | | |
$
|
770,087
| | | |
$
|
716,719
|
|
Interest bearing
| | | | | | | | | |
|
Transaction accounts
| | |
102,829
| | | |
114,277
| | | |
95,439
|
|
Savings accounts
| | |
145,874
| | | |
141,316
| | | |
133,792
|
|
Money market accounts
| | |
514,274
| | | |
541,089
| | | |
478,145
|
|
Time accounts
|
|
|
159,500
|
|
|
|
161,457
|
|
|
|
161,025
|
|
Total deposits
| | |
1,681,346
| | | |
1,728,226
| | | |
1,585,120
|
| Federal Home Loan Bank ("FHLB") and other borrowings
| | |
19,350
| | | |
67,000
| | | |
15,000
|
|
Subordinated debentures
| | |
5,445
| | | |
5,395
| | | |
5,238
|
|
Interest payable and other liabilities
|
|
|
15,815
|
|
|
|
16,040
|
|
|
|
16,285
|
|
Total liabilities
|
|
|
1,721,956
|
|
|
|
1,816,661
|
|
|
|
1,621,643
|
| | | | | | | | |
|
| 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 -
6,116,473, 6,068,543 and 5,967,614 at March 31, 2016, December 31,
2015 and March 31, 2015, respectively
| | |
86,133
| | | |
84,727
| | | |
83,011
|
|
Retained earnings
| | |
133,681
| | | |
129,553
| | | |
119,652
|
|
Accumulated other comprehensive income, net
|
|
|
1,832
|
|
|
|
193
|
|
|
|
1,843
|
|
Total stockholders' equity
|
|
|
221,646
|
|
|
|
214,473
|
|
|
|
204,506
|
| Total liabilities and stockholders' equity |
|
| $ | 1,943,602 |
|
|
| $ | 2,031,134 |
|
|
| $ | 1,826,149 |
| | | | | | | | | | | | | |
|
|
|
| BANK OF MARIN BANCORP |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
|
| |
| | |
Three months ended
|
|
(in thousands, except per share amounts; unaudited)
|
|
| March 31, 2016 |
|
| December 31, 2015 |
|
| March 31, 2015 |
| Interest income | | | |
|
| |
|
| |
|
Interest and fees on loans
| | |
$
|
17,141
| | | |
$
|
15,590
| | | |
$
|
15,379
| |
|
Interest on investment securities
| | | | | | | | | |
|
Securities of U.S. government agencies
| | |
1,352
| | | |
1,461
| | | |
1,035
| |
|
Obligations of state and political subdivisions
| | |
586
| | | |
577
| | | |
540
| |
|
Corporate debt securities and other
| | |
105
| | | |
139
| | | |
205
| |
|
Interest on Federal funds sold and short-term investments
|
|
|
11
|
|
|
|
28
|
|
|
|
21
|
|
|
Total interest income
| | |
19,195
| | | |
17,795
| | | |
17,180
| |
| Interest expense | | | | | | | | | |
|
Interest on interest-bearing transaction accounts
| | |
27
| | | |
27
| | | |
30
| |
|
Interest on savings accounts
| | |
14
| | | |
14
| | | |
12
| |
|
Interest on money market accounts
| | |
111
| | | |
120
| | | |
127
| |
|
Interest on time accounts
| | |
196
| | | |
204
| | | |
231
| |
|
Interest on FHLB and other borrowings
| | |
100
| | | |
81
| | | |
78
| |
|
Interest on subordinated debentures
|
|
|
109
|
|
|
|
106
|
|
|
|
104
|
|
|
Total interest expense
|
|
|
557
|
|
|
|
552
|
|
|
|
582
|
|
|
Net interest income
| | |
18,638
| | | |
17,243
| | | |
16,598
| |
|
Provision for loan losses
|
|
|
—
|
|
|
|
500
|
|
|
|
—
|
|
|
Net interest income after provision for loan losses
|
|
|
18,638
|
|
|
|
16,743
|
|
|
|
16,598
|
|
| Non-interest income | | | | | | | | | |
|
Service charges on deposit accounts
| | |
456
| | | |
461
| | | |
525
| |
| Wealth Management and Trust Services | | |
566
| | | |
582
| | | |
638
| |
|
Debit card interchange fees
| | |
338
| | | |
358
| | | |
347
| |
|
Merchant interchange fees
| | |
113
| | | |
115
| | | |
130
| |
|
Earnings on bank-owned life insurance
| | |
201
| | | |
204
| | | |
203
| |
|
Dividends on FHLB stock
| | |
169
| | | |
186
| | | |
148
| |
|
Gains on investment securities, net
| | |
110
| | | |
(1
|
)
| | |
8
| |
|
Other income
|
|
|
210
|
|
|
|
193
|
|
|
|
190
|
|
|
Total non-interest income
|
|
|
2,163
|
|
|
|
2,098
|
|
|
|
2,189
|
|
| Non-interest expense | | | | | | | | | |
|
Salaries and related benefits
| | |
6,748
| | | |
6,002
| | | |
6,790
| |
|
Occupancy and equipment
| | |
1,281
| | | |
1,317
| | | |
1,342
| |
|
Depreciation and amortization
| | |
453
| | | |
456
| | | |
421
| |
| Federal Deposit Insurance Corporation insurance
| | |
261
| | | |
258
| | | |
236
| |
|
Data processing
| | |
856
| | | |
905
| | | |
786
| |
|
Professional services
| | |
498
| | | |
549
| | | |
564
| |
|
Directors' expense
| | |
189
| | | |
206
| | | |
191
| |
|
Information technology
| | |
193
| | | |
182
| | | |
152
| |
|
Reversal of losses on off-balance sheet commitments
| | |
—
| | | |
(277
|
)
| | |
(201
|
)
|
|
Other expense
|
|
|
1,531
|
|
|
|
1,537
|
|
|
|
1,567
|
|
|
Total non-interest expense
|
|
|
12,010
|
|
|
|
11,135
|
|
|
|
11,848
|
|
|
Income before provision for income taxes
| | |
8,791
| | | |
7,706
| | | |
6,939
| |
|
Provision for income taxes
|
|
|
3,145
|
|
|
|
2,781
|
|
|
|
2,482
|
|
| Net income |
|
| $ | 5,646 |
|
|
| $ | 4,925 |
|
|
| $ | 4,457 |
|
|
Net income per common share:
| | | | | | | | | |
|
Basic
| | |
$
|
0.93
| | | |
$
|
0.82
| | | |
$
|
0.75
| |
|
Diluted
| | |
$
|
0.93
| | | |
$
|
0.81
| | | |
$
|
0.74
| |
|
Weighted average shares used to compute net income per common share:
| | | | | | | | | |
|
Basic
| | |
6,048
| | | |
6,033
| | | |
5,921
| |
|
Diluted
| | |
6,090
| | | |
6,083
| | | |
6,048
| |
|
Dividends declared per common share
|
|
|
$
|
0.25
|
|
|
|
$
|
0.24
|
|
|
|
$
|
0.22
|
|
| Comprehensive income: | | | | | | | | | |
|
Net income
| | |
$
|
5,646
| | | |
$
|
4,925
| | | |
$
|
4,457
| |
|
Other comprehensive income
| | | | | | | | | |
Change in net unrealized gain (loss) on available-for-sale
securities
| | |
2,923
| | | |
(2,456
|
)
| | |
1,317
| |
Reclassification adjustment for (gains) losses on
available-for-sale securities included in net income
|
|
|
(110
|
)
|
|
|
1
|
|
|
|
(8
|
)
|
Net change in unrealized gain (loss) on available-for-sale
securities, before tax
| | |
2,813
| | | |
(2,455
|
)
| | |
1,309
| |
|
Deferred tax expense (benefit)
|
|
|
1,174
|
|
|
|
(1,048
|
)
|
|
|
554
|
|
|
Other comprehensive income (loss), net of tax
|
|
|
1,639
|
|
|
|
(1,407
|
)
|
|
|
755
|
|
| Comprehensive income |
|
|
$
|
7,285
|
|
|
|
$
|
3,518
|
|
|
|
$
|
5,212
|
|
| | | | | | | | | | | | | | |
|
|
|
| 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, 2016 |
| December 31, 2015 |
| March 31, 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 | | |
$
|
8,996
| | |
$
|
11
| | |
0.48
|
%
| |
$
|
41,604
| | |
$
|
28
| | |
0.26
|
%
| |
$
|
38,295
| | |
$
|
21
| | |
0.22
|
%
|
|
Investment securities 2, 3 | | |
428,055
| | |
2,264
| | |
2.12
|
%
| |
460,811
| | |
2,391
| | |
2.08
|
%
| |
311,978
| | |
1,927
| | |
2.47
|
%
|
|
Loans 1, 3, 4 |
|
|
1,442,601
|
|
|
17,456
|
|
|
4.79
|
%
|
|
1,377,932
|
|
|
15,890
|
|
|
4.51
|
%
|
|
1,351,791
|
|
|
15,675
|
|
|
4.64
|
%
|
|
Total interest-earning assets 1 | | |
1,879,652
| | |
19,731
| | |
4.15
|
%
| |
1,880,347
| | |
18,309
| | |
3.81
|
%
| |
1,702,064
| | |
17,623
| | |
4.14
|
%
|
|
Cash and non-interest-bearing due from banks
| | |
29,823
| | | | | | |
45,063
| | | | | | |
41,073
| | | | | |
|
Bank premises and equipment, net
| | |
9,143
| | | | | | |
9,465
| | | | | | |
9,839
| | | | | |
|
Interest receivable and other assets, net
|
|
|
58,195
|
|
|
|
|
|
|
58,342
|
|
|
|
|
|
|
58,132
|
|
|
|
|
|
| Total assets |
|
| $ | 1,976,813 |
|
|
|
|
|
| $ | 1,993,217 |
|
|
|
|
|
| $ | 1,811,108 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity
| | | | | | | | | | | | | | | | | | | |
|
Interest-bearing transaction accounts
| | |
$
|
100,990
| | |
$
|
27
| | |
0.11
|
%
| |
$
|
101,299
| | |
$
|
27
| | |
0.11
|
%
| |
$
|
92,376
| | |
$
|
30
| | |
0.13
|
%
|
|
Savings accounts
| | |
142,499
| | |
14
| | |
0.04
|
%
| |
139,281
| | |
13
| | |
0.04
|
%
| |
133,877
| | |
12
| | |
0.04
|
%
|
|
Money market accounts
| | |
528,984
| | |
111
| | |
0.08
|
%
| |
538,330
| | |
120
| | |
0.09
|
%
| |
486,830
| | |
127
| | |
0.11
|
%
|
|
Time accounts including CDARS
| | |
160,943
| | |
196
| | |
0.50
|
%
| |
155,899
| | |
205
| | |
0.52
|
%
| |
154,118
| | |
231
| | |
0.59
|
%
|
|
Overnight borrowings1 | | |
20,567
| | |
22
| | |
0.42
|
%
| |
2,535
| | |
2
| | |
0.31
|
%
| |
397
| | |
—
| | |
—
|
%
|
|
FHLB fixed-rate advances
| | |
15,000
| | |
78
| | |
2.07
|
%
| |
15,000
| | |
79
| | |
2.07
|
%
| |
15,000
| | |
78
| | |
2.07
|
%
|
|
Subordinated debentures 1 |
|
|
5,418
|
|
|
109
|
|
|
7.96
|
%
|
|
5,367
|
|
|
106
|
|
|
7.73
|
%
|
|
5,207
|
|
|
104
|
|
|
7.99
|
%
|
|
Total interest-bearing liabilities
| | |
974,401
| | |
557
| | |
0.23
|
%
| |
957,711
| | |
552
| | |
0.23
|
%
| |
887,805
| | |
582
| | |
0.27
|
%
|
|
Demand accounts
| | |
767,579
| | | | | | |
805,118
| | | | | | |
705,024
| | | | | |
|
Interest payable and other liabilities
| | |
15,980
| | | | | | |
16,014
| | | | | | |
15,594
| | | | | |
|
Stockholders' equity
|
|
|
218,853
|
|
|
|
|
|
|
214,374
|
|
|
|
|
|
|
202,685
|
|
|
|
|
|
| Total liabilities & stockholders' equity |
|
| $ | 1,976,813 |
|
|
|
|
|
| $ | 1,993,217 |
|
|
|
|
|
| $ | 1,811,108 |
|
|
|
|
|
|
Tax-equivalent net interest income/margin 1 |
|
|
|
|
$
|
19,174
|
|
|
4.04
|
%
|
|
|
|
$
|
17,757
|
|
|
3.70
|
%
|
|
|
|
$
|
17,041
|
|
|
4.00
|
%
|
|
Reported net interest income/margin 1 |
|
|
|
|
$
|
18,638
|
|
|
3.92
|
%
|
|
|
|
$
|
17,243
|
|
|
3.59
|
%
|
|
|
|
$
|
16,598
|
|
|
3.90
|
%
|
|
Tax-equivalent net interest rate spread
|
|
|
|
|
|
|
3.92
|
%
|
|
|
|
|
|
3.58
|
%
|
|
|
|
|
|
3.88
|
%
|
| | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | |
|
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/20160425005280/en/
Bank of Marin Bancorp
Sandy Pfaff, 415-819-7447
sandy@pfaffpr.com
Source: Bank of Marin Bancorp