Announces 48th Consecutive Quarterly Cash Dividend
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
2017, compared to $5.7 million in the fourth quarter of 2016 and $5.6
million in the first quarter of 2016. Diluted earnings per share were
$0.74 in the first quarter of 2017, compared to $0.93 in both the prior
quarter and the same quarter last year.
“The Bank continues to operate at a very high level,” said Russell A.
Colombo, President and Chief Executive Officer. “Disciplined
fundamentals are the key to remaining consistently successful over the
years, with a focus on long-term profitability. We will stay true to our
mission and our markets, and invest in the strategic initiatives we have
developed to grow in those markets and build the value of the franchise.”
The Bank is investing in a number of strategic initiatives. This summer
we will be opening a new branch office in Healdsburg, California, which
will stretch our footprint north and help us solidify our presence in a
vibrant and growing market. We will also be expanding our geographic
reach by adding a commercial banking office in the East Bay, which
continues to be one of the strongest growth markets in the Bay Area
region.
Bancorp also provided the following highlights from its operating and
financial performance for the first quarter of 2017:
-
Total deposits increased $6.6 million in the first quarter to $1,779.3
million. Non-interest bearing deposits represent 49.4% of total
deposits, and the cost of total deposits dropped one basis point to
0.07%, from both the prior quarter and the first quarter of 2016.
-
Gross loans decreased $9.0 million and totaled $1,477.6 million at
March 31, 2017, compared to $1,486.6 million at December 31, 2016. New
loan volume of $23.9 million in the first quarter of 2017 was $5.2
million lower than the same quarter of 2016. The pipeline is
considerably stronger than at this time last year, which should
translate into loan growth throughout the year.
-
All capital ratios are well above regulatory requirements for a
well-capitalized institution. Total risk-based capital ratio for
Bancorp was 14.7% at March 31, 2017 compared to 14.3% at December 31,
2016. Tangible common equity to tangible assets increased to 11.2% at
March 31, 2017 from 11.0% at December 31, 2016.
-
The Board of Directors declared a cash dividend of $0.27 per share on
April 21, 2017. This represents the 48th consecutive
quarterly dividend paid by Bank of Marin Bancorp. The dividend is
payable on May 12, 2017, to shareholders of record at the close of
business on May 5, 2017.
Loans and Credit Quality
First quarter loan originations totaled $23.9 million versus $29.1
million in the same quarter last year. Loan payoffs for the quarter were
$32.7 million, down from $37.3 million the same quarter last year. The
largest portion of payoffs came from the successful completion of
construction projects and sales of other assets. The commercial
financing market continues to be competitive in general, but rate
compression seems to be stabilizing as the prospect of an increasing
rate environment becomes more prevalent. Consumer loans received a $7.9
million boost in the quarter from Tenants in Common ("TIC") loans, a
highly specialized product we offer that continues to perform well as an
affordable option for homebuyers in San Francisco.
Non-accrual loans totaled $1.2 million, or 0.08% of Bank of Marin's loan
portfolio at March 31, 2017, compared to $0.1 million, or 0.01%, at
December 31, 2016 and $2.7 million, or 0.18% a year ago. A well secured
$1.1 million commercial real estate loan with a low loan-to-value ratio
was placed on non-accrual status during the first quarter of 2017.
Classified loans increased $10.6 million to $30.2 million at March 31,
2017, up from $19.6 million at December 31, 2016. One relationship of
$9.6 million and the non-accrual loan of $1.1 million previously
mentioned were downgraded to substandard in the first quarter of 2017.
Accruing loans past due 30 to 89 days totaled $834 thousand at March 31,
2017, compared to $410 thousand at December 31, 2016 and $584 thousand a
year ago.
There was no provision for loan losses recorded in the first quarters of
2017 and 2016 as the level of reserves is deemed appropriate for the
portfolio, compared to a reversal of provision for loan losses of $300
thousand in the fourth quarter of 2016. Net charge-offs were $223
thousand in the first quarter of 2017, compared to net recoveries of $29
thousand in the prior quarter and the same quarter a year ago. The ratio
of loan loss reserves to loans was 1.03% at March 31, 2017, compared to
1.04% at both December 31, 2016 and March 31, 2016. At March 31, 2017,
total loan loss reserves to loans excluding acquired loans was 1.09%.
Investments
The investment portfolio totaled $414.0 million at March 31, 2017, a
decrease of $3.1 million from December 31, 2016. Effective February 24,
2017, $129 million of mortgage-backed securities were transferred from
available-for-sale securities to held-to-maturity at fair value to
reduce balance sheet volatility. Our strong liquidity position made this
possible.
Deposits
On-balance-sheet deposits totaled $1,779.3 million at March 31, 2017,
compared to $1,772.7 million at December 31, 2016. The normal business
activity of our customers produced $61.4 million in non-interest bearing
deposit growth during the quarter. Excess liquidity of $46.0 million was
converted to one-way money market deposit sales with our third party
deposit networks, limiting deposit growth to $6.6 million, which
otherwise would have been $52.6 million.
Earnings
“Historically, first quarter loan growth is slower than the rest of the
year. We continue to see a strong flow of commercial lending
opportunities, but we can't fully control the timing of loan closings,”
said Tani Girton, Chief Financial Officer. “With a strong pipeline and
credit quality that remains at the top of our peer group, we are looking
forward to a continuation of the success that Bank of Marin has shown
for 27 years. Our strong capital and low cost deposit base position us
well for the future.”
Net interest income totaled $17.6 million in the first quarter of 2017,
compared to $18.0 million in the prior quarter and $18.6 million in the
same quarter a year ago. The decrease from earlier quarters was
primarily due to a decline in gains on early payoffs of acquired loans
and purchased loan accretion as shown in the table below. In addition,
there were fewer days in the first quarter of 2017. These variances were
partially offset by an increase in the yield on investment securities in
the first quarter of 2017. Finally, average earning assets were higher
in 2017 compared to the first quarter of 2016, while interest expense
was lower as a result of the Federal Home Loan Bank ("FHLB") fixed rate
advance prepayment last year.
The tax-equivalent net interest margin was 3.79% in the first quarter of
2017, compared to 3.78% in the prior quarter and 4.04% in the same
quarter a year ago. The minimal increase in the first quarter of 2017,
compared to the prior quarter, reflects the changes discussed above. As
presented in the table below, there were no gains on payoffs of
purchased credit impaired ("PCI") loans in the first quarter of this
year compared to $287 thousand, or six basis points impact on the net
interest margin in the fourth quarter of 2016. The decrease was offset
by increases in the yield on investment securities and average loan
balances.
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 at both March 31, 2017 and December 31, 2016, and
$2.8 million at March 31, 2016, respectively.
As our acquired loans continue to pay off, we expect the accretion on
acquired loans to continue to decline. Accretion and gains on payoffs of
purchased loans recorded to interest income were as follows:
|
|
Three months ended
|
| | March 31, 2017 |
| December 31, 2016 |
| March 31, 2016 |
|
(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 1 | |
|
$
|
90
|
| |
|
2 bps
| |
|
$
|
90
|
| |
|
2 bps
| |
|
$
|
98
|
| |
|
2 bps
|
|
Accretion on non-PCI loans 2 | | |
$
|
150
| | | |
3 bps
| | |
$
|
159
| | | |
3 bps
| | |
$
|
330
| | | |
7 bps
|
|
Gains on payoffs of PCI loans
|
|
|
$
|
—
|
|
|
|
0 bps
|
|
|
$
|
287
|
|
|
|
6 bps
|
|
|
$
|
740
|
|
|
|
16 bps
|
1 Accretable yield on PCI loans totaled $1.4 million,
$1.5 million and $1.7 million at March 31, 2017, December 31, 2016
and March 31, 2016, respectively.
|
2 Unaccreted purchase discounts on non-PCI loans
totaled $1.6 million, $1.8 million and $2.8 million at March 31,
2017, December 31, 2016 and March 31, 2016, respectively.
|
Non-interest income in the first quarter of 2017 totaled $2.1 million,
compared to $2.5 million in the prior quarter and $2.2 million in the
same quarter a year ago. The decrease compared to the prior quarter
primarily relates to a $347 thousand special cash dividend paid on FHLB
stock and $31 thousand in gains on the sale of investment securities in
the fourth quarter of 2016. These decreases were partially offset by an
increase in fees collected on one-way deposit sales placed with third
party deposit networks in the first quarter of 2017. The decrease from
the same quarter last year is partially due to a $110 thousand gain on
the sale of securities in the first quarter of 2016 and lower wealth
management and trust services fees in 2017, partially offset by an
increase of $63 thousand in cash dividends on FHLB stock and $37
thousand in fees collected on one-way deposit sales this year.
Non-interest expense totaled $13.0 million in the first quarter of 2017,
$11.8 million in the prior quarter and $12.0 million in the same quarter
a year ago. The increase from both the fourth quarter and the first
quarter of 2016 was primarily due to higher salaries and benefits
related to filling open positions, an increase in 401(k) matching, and
implementation of the new accounting rule for stock-based compensation.
In addition, a provision of $165 thousand for off-balance sheet
commitments was recorded in the first quarter of 2017, as a result of
the increase in classified loans.
Earnings Call and Webcast Information
Bank of Marin Bancorp will webcast its first quarter earnings call on
Monday, April 24, 2017 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 $2.0 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, 2017 |
|
|
|
(dollars in thousands, except per share data; unaudited)
| |
QUARTER-TO-DATE |
| March 31, 2017 |
|
| December 31, 2016 |
|
| March 31, 2016 |
|
|
NET INCOME
| |
$
|
4,548
| | | |
$
|
5,687
| | | |
$
|
5,646
| | |
|
DILUTED EARNINGS PER COMMON SHARE
| |
$
|
0.74
| | | |
$
|
0.93
| | | |
$
|
0.93
| | |
|
RETURN ON AVERAGE ASSETS (ROA)
| |
0.91
| |
%
| |
1.11
| |
%
| |
1.15
| |
%
|
|
RETURN ON AVERAGE EQUITY (ROE)
| |
7.92
| |
%
| |
9.74
| |
%
| |
10.38
| |
%
|
|
EFFICIENCY RATIO
| |
65.92
| |
%
| |
57.51
| |
%
| |
57.74
| |
%
|
|
TAX-EQUIVALENT NET INTEREST MARGIN1 | |
3.79
| |
%
| |
3.78
| |
%
| |
4.04
| |
%
|
|
NET CHARGE-OFFS (RECOVERIES)
| |
$
|
223
| | | |
$
|
(29
|
)
| | |
$
|
(29
|
)
| |
|
NET CHARGE-OFFS (RECOVERIES) TO AVERAGE LOANS
| |
0.02
| |
%
| |
—
| |
%
| |
—
| |
%
|
| | | | | | | | |
|
AT PERIOD END | | | | | | | | | |
|
TOTAL ASSETS
| |
$
|
2,033,708
| | | |
$
|
2,023,493
| | | |
$
|
1,943,602
| | |
| | | | | | | | |
|
|
LOANS:
| | | | | | | | | |
|
COMMERCIAL AND INDUSTRIAL
| |
$
|
219,760
| | | |
$
|
218,615
| | | |
$
|
213,068
| | |
|
REAL ESTATE
| | | | | | | | | |
|
COMMERCIAL OWNER-OCCUPIED
| |
$
|
254,180
| | | |
$
|
247,713
| | | |
$
|
238,332
| | |
|
COMMERCIAL INVESTOR-OWNED
| |
$
|
712,081
| | | |
$
|
724,228
| | | |
$
|
707,340
| | |
|
CONSTRUCTION
| |
$
|
67,162
| | | |
$
|
74,809
| | | |
$
|
74,528
| | |
|
HOME EQUITY
| |
$
|
115,180
| | | |
$
|
117,207
| | | |
$
|
110,893
| | |
|
OTHER RESIDENTIAL
| |
$
|
84,720
| | | |
$
|
78,549
| | | |
$
|
73,896
| | |
|
INSTALLMENT AND OTHER CONSUMER LOANS
| |
$
|
24,487
|
| | |
$
|
25,495
|
| | |
$
|
23,782
|
| |
|
TOTAL LOANS
| |
$
|
1,477,570
| | | |
$
|
1,486,616
| | | |
$
|
1,441,839
| | |
| | | | | | | | |
|
|
NON-PERFORMING LOANS2:
| | | | | | | | | |
|
COMMERCIAL AND INDUSTRIAL
| |
$
|
—
| | | |
$
|
—
| | | |
$
|
21
| | |
|
REAL ESTATE
| | | | | | | | | |
|
COMMERCIAL OWNER-OCCUPIED
| |
$
|
—
| | | |
$
|
—
| | | |
$
|
—
| | |
|
COMMERCIAL INVESTOR-OWNED
| |
$
|
1,076
| | | |
$
|
—
| | | |
$
|
1,789
| | |
|
CONSTRUCTION
| |
$
|
—
| | | |
$
|
—
| | | |
$
|
—
| | |
|
HOME EQUITY
| |
$
|
87
| | | |
$
|
90
| | | |
$
|
791
| | |
|
OTHER RESIDENTIAL
| |
$
|
—
| | | |
$
|
—
| | | |
$
|
—
| | |
|
INSTALLMENT AND OTHER CONSUMER LOANS
| |
$
|
52
|
| | |
$
|
55
|
| | |
$
|
65
|
| |
|
TOTAL NON-ACCRUAL LOANS
| |
$
|
1,215
| | | |
$
|
145
| | | |
$
|
2,666
| | |
| | | | | | | | |
|
|
CLASSIFIED LOANS (GRADED SUBSTANDARD & DOUBTFUL)
| |
$
|
30,230
| | | |
$
|
19,601
| | | |
$
|
22,309
| | |
|
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE
| |
$
|
834
| | | |
$
|
410
| | | |
$
|
584
| | |
|
LOAN LOSS RESERVE TO LOANS
| |
1.03
| |
%
| |
1.04
| |
%
| |
1.04
| |
%
|
|
LOAN LOSS RESERVE TO NON-ACCRUAL LOANS
| |
12.52
| |
x
| |
106.50
| |
x
| |
5.64
| |
x
|
|
NON-ACCRUAL LOANS TO TOTAL LOANS
| |
0.08
| |
%
| |
0.01
| |
%
| |
0.18
| |
%
|
| | | | | | | | |
|
|
TOTAL DEPOSITS
| |
$
|
1,779,269
| | | |
$
|
1,772,700
| | | |
$
|
1,681,346
| | |
|
LOAN-TO-DEPOSIT RATIO
| |
83.0
| |
%
| |
83.9
| |
%
| |
85.8
| |
%
|
|
STOCKHOLDERS' EQUITY
| |
$
|
234,986
| | | |
$
|
230,563
| | | |
$
|
221,646
| | |
|
BOOK VALUE PER SHARE
| |
$
|
38.22
| | | |
$
|
37.63
| | | |
$
|
36.24
| | |
|
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS3 | |
11.2
| |
%
| |
11.0
| |
%
| |
11.0
| |
%
|
|
TOTAL RISK BASED CAPITAL RATIO-BANK
| |
14.3
| |
%
| |
14.1
| |
%
| |
13.6
| |
%
|
|
TOTAL RISK BASED CAPITAL RATIO-BANCORP
| |
14.7
| |
%
| |
14.3
| |
%
| |
13.9
| |
%
|
|
FULL-TIME EQUIVALENT EMPLOYEES
| |
262
| | | |
262
| | | |
256
| | |
| | | | | | | | |
|
| 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
$17.2 million, $18.1 million and $19.7 million at March 31, 2017,
December 31, 2016 and March 31, 2016, respectively. Excludes
purchased credit-impaired (PCI) loans with carrying values of $2.9
million, $2.9 million and $2.8 million that were accreting interest
at March 31, 2017, December 31,2016 and March 31, 2016,
respectively. These amounts are excluded as PCI loan accretable
yield interest recognition is independent from the underlying
contractual loan delinquency status.
|
| 3 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 $8.9
million, $9.0 million and $9.4 million at March 31, 2017, December
31, 2016 and March 31, 2016, respectively. Tangible assets exclude
goodwill and intangible assets.
|
|
|
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CONDITION At March 31, 2017, December 31, 2016 and March 31, 2016 |
|
| |
| |
| |
|
(in thousands, except share data; unaudited)
|
| March 31,
2017
|
| December 31,
2016
|
| March 31,
2016
|
| Assets | | | | | | |
|
Cash and due from banks
| |
$
|
73,162
| | |
$
|
48,804
| | |
$
|
39,770
|
|
Investment securities
| | | | | | |
|
Held-to-maturity, at amortized cost
| |
172,272
| | |
44,438
| | |
63,246
|
Available-for-sale (at fair value; amortized cost $242,650,
$378,254 and $333,044 at March 31, 2017, December 31, 2016 and
March 31, 2016, respectively)
|
|
241,684
|
|
|
372,580
|
|
|
336,234
|
Total investment securities
| |
413,956
| | |
417,018
| | |
399,480
|
|
Loans, net of allowance for loan losses of $15,219, $15,442 and
$15,028 at March 31, 2017, December 31, 2016 and March 31, 2016,
respectively
| |
1,462,351
| | |
1,471,174
| | |
1,426,811
|
|
Bank premises and equipment, net
| |
8,336
| | |
8,520
| | |
8,909
|
| Goodwill | |
6,436
| | |
6,436
| | |
6,436
|
|
Core deposit intangible
| |
2,462
| | |
2,580
| | |
2,980
|
|
Interest receivable and other assets
|
|
67,005
|
|
|
68,961
|
|
|
59,216
|
| Total assets |
| $ | 2,033,708 |
|
| $ | 2,023,493 |
|
| $ | 1,943,602 |
| | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | |
| Liabilities | | | | | | |
|
Deposits
| | | | | | |
|
Non-interest bearing
| |
$
|
878,416
| | |
$
|
817,031
| | |
$
|
758,869
|
|
Interest bearing
| | | | | | |
|
Transaction accounts
| |
100,628
| | |
100,723
| | |
102,829
|
|
Savings accounts
| |
159,889
| | |
163,516
| | |
145,874
|
|
Money market accounts
| |
494,324
| | |
539,967
| | |
514,274
|
|
Time accounts
|
|
146,012
|
|
|
151,463
|
|
|
159,500
|
|
Total deposits
| |
1,779,269
| | |
1,772,700
| | |
1,681,346
|
| Federal Home Loan Bank ("FHLB") and other borrowings
| |
—
| | |
—
| | |
19,350
|
|
Subordinated debentures
| |
5,628
| | |
5,586
| | |
5,445
|
|
Interest payable and other liabilities
|
|
13,825
|
|
|
14,644
|
|
|
15,815
|
|
Total liabilities
|
|
1,798,722
|
|
|
1,792,930
|
|
|
1,721,956
|
| | | | | |
|
| 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 - 6,148,486, 6,127,314 and 6,116,473 at March 31,
2017, December 31, 2016 and March 31, 2016, respectively
| |
87,911
| | |
87,392
| | |
86,133
|
|
Retained earnings
| |
149,357
| | |
146,464
| | |
133,681
|
|
Accumulated other comprehensive (loss) income, net
|
|
(2,282
|
)
|
|
(3,293
|
)
|
|
1,832
|
|
Total stockholders' equity
|
|
234,986
|
|
|
230,563
|
|
|
221,646
|
| Total liabilities and stockholders' equity |
| $ | 2,033,708 |
|
| $ | 2,023,493 |
|
| $ | 1,943,602 |
|
|
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
| |
| |
Three months ended
|
|
(in thousands, except per share amounts; unaudited)
|
| March 31, 2017 |
| December 31, 2016 |
| March 31, 2016 |
| Interest income | | |
| |
| |
|
Interest and fees on loans
| |
$
|
15,849
| | |
$
|
16,394
| | |
$
|
17,141
| |
|
Interest on investment securities
| | | | | | |
|
Securities of U.S. government agencies
| |
1,518
| | |
1,329
| | |
1,352
| |
|
Obligations of state and political subdivisions
| |
568
| | |
596
| | |
586
| |
|
Corporate debt securities and other
| |
37
| | |
36
| | |
105
| |
|
Interest on Federal funds sold and short-term investments
|
|
60
|
|
|
53
|
|
|
11
|
|
|
Total interest income
| |
18,032
| | |
18,408
| | |
19,195
| |
| Interest expense | | | | | | |
|
Interest on interest-bearing transaction accounts
| |
29
| | |
27
| | |
27
| |
|
Interest on savings accounts
| |
15
| | |
15
| | |
14
| |
|
Interest on money market accounts
| |
113
| | |
115
| | |
111
| |
|
Interest on time accounts
| |
146
| | |
164
| | |
196
| |
|
Interest on FHLB and other borrowings
| |
—
| | |
—
| | |
100
| |
|
Interest on subordinated debentures
|
|
108
|
|
|
111
|
|
|
109
|
|
|
Total interest expense
|
|
411
|
|
|
432
|
|
|
557
|
|
|
Net interest income
| |
17,621
| | |
17,976
| | |
18,638
| |
|
Reversal of provision for loan losses
|
|
—
|
|
|
(300
|
)
|
|
—
|
|
|
Net interest income after provision for loan losses
|
|
17,621
|
|
|
18,276
|
|
|
18,638
|
|
| Non-interest income | | | | | | |
|
Service charges on deposit accounts
| |
452
| | |
445
| | |
456
| |
| Wealth Management and Trust Services | |
503
| | |
491
| | |
566
| |
|
Debit card interchange fees
| |
372
| | |
391
| | |
338
| |
|
Merchant interchange fees
| |
96
| | |
94
| | |
113
| |
|
Earnings on bank-owned life insurance
| |
209
| | |
218
| | |
201
| |
|
Dividends on FHLB stock
| |
232
| | |
576
| | |
169
| |
|
Gains on investment securities, net
| |
—
| | |
31
| | |
110
| |
|
Other income
|
|
251
|
|
|
217
|
|
|
210
|
|
|
Total non-interest income
|
|
2,115
|
|
|
2,463
|
|
|
2,163
|
|
| Non-interest expense | | | | | | |
|
Salaries and related benefits
| |
7,475
| | |
6,508
| | |
6,748
| |
|
Occupancy and equipment
| |
1,319
| | |
1,350
| | |
1,281
| |
|
Depreciation and amortization
| |
481
| | |
479
| | |
453
| |
| Federal Deposit Insurance Corporation insurance
| |
161
| | |
65
| | |
261
| |
|
Data processing
| |
939
| | |
959
| | |
856
| |
|
Professional services
| |
522
| | |
516
| | |
498
| |
|
Directors' expense
| |
158
| | |
105
| | |
189
| |
|
Information technology
| |
198
| | |
197
| | |
193
| |
|
Provision for losses on off-balance sheet commitments
| |
165
| | |
—
| | |
—
| |
|
Other expense
|
|
1,593
|
|
|
1,576
|
|
|
1,531
|
|
|
Total non-interest expense
|
|
13,011
|
|
|
11,755
|
|
|
12,010
|
|
|
Income before provision for income taxes
| |
6,725
| | |
8,984
| | |
8,791
| |
|
Provision for income taxes
|
|
2,177
|
|
|
3,297
|
|
|
3,145
|
|
| Net income |
| $ | 4,548 |
|
| $ | 5,687 |
|
| $ | 5,646 |
|
|
Net income per common share:
| | | | | | |
|
Basic
| |
$
|
0.75
| | |
$
|
0.93
| | |
$
|
0.93
| |
|
Diluted
| |
$
|
0.74
| | |
$
|
0.93
| | |
$
|
0.93
| |
|
Weighted average shares:
| | | | | | |
|
Basic
| |
6,092
| | |
6,085
| | |
6,048
| |
|
Diluted
| |
6,172
| | |
6,142
| | |
6,090
| |
|
Dividends declared per common share
|
|
$
|
0.27
|
|
|
$
|
0.27
|
|
|
$
|
0.25
|
|
| Comprehensive income: | | | | | | |
|
Net income
| |
$
|
4,548
| | |
$
|
5,687
| | |
$
|
5,646
| |
|
Other comprehensive income
| | | | | | |
|
Change in net unrealized gain or loss on available-for-sale
securities
| |
1,674
| | |
(9,869
|
)
| |
2,923
| |
|
Amortization of net unrealized loss on available for sale securities
transferred to held-to-maturity securities
| |
41
| | |
—
| | |
—
| |
|
Reclassification adjustment for gains on available-for-sale
securities included in net income
|
|
—
|
|
|
—
|
|
|
(110
|
)
|
|
Net change in unrealized gain or loss on available-for-sale
securities, before tax
|
|
1,715
|
|
|
(9,869
|
)
|
|
2,813
|
|
|
Tax effect
|
|
704
|
|
|
(4,149
|
)
|
|
1,174
|
|
|
Other comprehensive income (loss), net of tax
|
|
1,011
|
|
|
(5,720
|
)
|
|
1,639
|
|
| Comprehensive income (loss) |
|
$
|
5,559
|
|
|
$
|
(33
|
)
|
|
$
|
7,285
|
|
|
|
BANK OF MARIN BANCORP
AVERAGE STATEMENTS OF
CONDITION AND ANALYSIS OF NET INTEREST INCOME |
|
| |
| |
| |
| |
Three months ended
March 31, 2017 | |
Three months ended
December 31, 2016 | |
Three months ended
March 31, 2016 |
|
(dollars in thousands)
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Assets
| | |
| |
| | | |
| |
| | | |
| |
| |
|
Interest-bearing due from banks 1 | |
$
|
29,339
| | |
$
|
60
| | |
0.82
|
%
| |
$
|
35,398
| | |
$
|
53
| | |
0.59
|
%
| |
$
|
8,996
| | |
$
|
11
| | |
0.48
|
%
|
|
Investment securities 2, 3 | |
414,552
| | |
2,361
| | |
2.28
|
%
| |
414,544
| | |
2,214
| | |
2.14
|
%
| |
428,055
| | |
2,264
| | |
2.12
|
%
|
|
Loans 1, 3, 4 |
|
1,478,487
|
|
|
16,222
|
|
|
4.39
|
%
|
|
1,471,134
|
|
|
16,723
|
|
|
4.45
|
%
|
|
1,442,601
|
|
|
17,456
|
|
|
4.79
|
%
|
|
Total interest-earning assets 1 | |
1,922,378
| | |
18,643
| | |
3.88
|
%
| |
1,921,076
| | |
18,990
| | |
3.87
|
%
| |
1,879,652
| | |
19,731
| | |
4.15
|
%
|
|
Cash and non-interest-bearing due from banks
| |
38,131
| | | | | | |
49,184
| | | | | | |
29,823
| | | | | |
|
Bank premises and equipment, net
| |
8,440
| | | | | | |
8,568
| | | | | | |
9,143
| | | | | |
|
Interest receivable and other assets, net
|
|
58,014
|
|
|
|
|
|
|
59,890
|
|
|
|
|
|
|
58,195
|
|
|
|
|
|
| Total assets |
| $ | 2,026,963 |
|
|
|
|
|
| $ | 2,038,718 |
|
|
|
|
|
| $ | 1,976,813 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity
| | | | | | | | | | | | | | | | | | |
|
Interest-bearing transaction accounts
| |
$
|
101,121
| | |
$
|
29
| | |
0.12
|
%
| |
$
|
91,692
| | |
$
|
27
| | |
0.12
|
%
| |
$
|
100,990
| | |
$
|
27
| | |
0.11
|
%
|
|
Savings accounts
| |
160,913
| | |
15
| | |
0.04
|
%
| |
160,638
| | |
16
| | |
0.04
|
%
| |
142,499
| | |
14
| | |
0.04
|
%
|
|
Money market accounts
| |
518,540
| | |
113
| | |
0.09
|
%
| |
529,003
| | |
115
| | |
0.09
|
%
| |
528,984
| | |
111
| | |
0.08
|
%
|
|
Time accounts including CDARS
| |
146,966
| | |
146
| | |
0.40
|
%
| |
153,976
| | |
163
| | |
0.42
|
%
| |
160,943
| | |
196
| | |
0.50
|
%
|
|
Overnight borrowings 1 | |
—
| | |
—
| | |
—
|
%
| |
3
| | |
—
| | |
1.33
|
%
| |
20,567
| | |
22
| | |
0.42
|
%
|
|
FHLB fixed-rate advances 1 | |
—
| | |
—
| | |
—
|
%
| |
—
| | |
—
| | |
—
|
%
| |
15,000
| | |
78
| | |
2.07
|
%
|
|
Subordinated debentures 1 |
|
5,607
|
|
|
108
|
|
|
7.74
|
%
|
|
5,564
|
|
|
111
|
|
|
7.82
|
%
|
|
5,418
|
|
|
109
|
|
|
7.96
|
%
|
|
Total interest-bearing liabilities
| |
933,147
| | |
411
| | |
0.18
|
%
| |
940,876
| | |
432
| | |
0.18
|
%
| |
974,401
| | |
557
| | |
0.23
|
%
|
|
Demand accounts
| |
846,316
| | | | | | |
848,881
| | | | | | |
767,579
| | | | | |
|
Interest payable and other liabilities
| |
14,645
| | | | | | |
16,604
| | | | | | |
15,980
| | | | | |
|
Stockholders' equity
|
|
232,855
|
|
|
|
|
|
|
232,357
|
|
|
|
|
|
|
218,853
|
|
|
|
|
|
| Total liabilities & stockholders' equity |
| $ | 2,026,963 |
|
|
|
|
|
| $ | 2,038,718 |
|
|
|
|
|
| $ | 1,976,813 |
|
|
|
|
|
|
Tax-equivalent net interest income/margin 1 |
|
|
|
$
|
18,232
|
|
|
3.79
|
%
|
|
|
|
$
|
18,558
|
|
|
3.78
|
%
|
|
|
|
$
|
19,174
|
|
|
4.04
|
%
|
|
Reported net interest income/margin 1 |
|
|
|
$
|
17,621
|
|
|
3.67
|
%
|
|
|
|
$
|
17,976
|
|
|
3.66
|
%
|
|
|
|
$
|
18,638
|
|
|
3.92
|
%
|
|
Tax-equivalent net interest rate spread
|
|
|
|
—
|
|
|
3.70
|
%
|
|
|
|
|
|
3.69
|
%
|
|
|
|
|
|
3.92
|
%
|
| | | | | | | | | | | | | | | | | |
|
| 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/20170424005307/en/
Bank of Marin Bancorp
Beth Drummey, 415-763-4529
Marketing &
Community Relations Manager
bethdrummey@bankofmarin.com
Source: Bank of Marin Bancorp