Announces $25 Million Share Repurchase Program andQuarterly
Dividend Increase
NOVATO, Calif.--(BUSINESS WIRE)--
Bank of Marin Bancorp, "Bancorp" (NASDAQ: BMRC), parent company of Bank
of Marin, "Bank," announced earnings of $6.4 million in the first
quarter of 2018, compared to $1.1 million in the fourth quarter of 2017
and $4.5 million in the first quarter of 2017. Diluted earnings per
share were $0.91 in the first quarter of 2018, compared to $0.17 in the
prior quarter and $0.74 in the same quarter last year. Earnings in the
fourth quarter of 2017 were adversely impacted by $4.1 million ($0.63
per diluted share) related to a one-time deferred tax asset write-down
and Bank of Napa acquisition-related expenses. Earnings in the first
quarter of 2018 were favorably impacted by the new tax law and a full
quarter of combined earning assets post-acquisition.
“We delivered another quarter of excellent financial results and strong
loan originations,” said Russell A. Colombo, President and Chief
Executive Officer. “Our relationship banking model continues to provide
a stable, low-cost deposit base that has allowed us to expand our net
interest margin. That strong deposit base, especially in a rising
interest rate environment, helps distinguish Bank of Marin from many
other banks.”
Bancorp also announced the commencement of a program to repurchase up to
$25 million of Bancorp common stock through May 1, 2019. In addition,
the Board of Directors declared a cash dividend of $0.31 per share on
April 20, 2018, a $0.02 increase from the prior quarter. This represents
the 52nd consecutive quarterly dividend paid by Bank of Marin
Bancorp. The dividend is payable on May 11, 2018, to shareholders of
record at the close of business on May 4, 2018.
“Creating value for our shareholders remains a top priority. Our Board
of Directors has determined that the repurchase of our common stock is
an attractive investment given its belief in the positive long-term
outlook for the growth of our franchise. In combination with organic
growth and strategic acquisitions, the stock repurchase program and
increased dividend create a well-balanced approach to capital
utilization. We believe these actions are in the best interests of our
shareholders,” said Colombo.
Bancorp also provided the following highlights in the first quarter of
2018:
-
Pre-tax net income was up $1.5 million from the fourth quarter of
2017. Reported net interest margin increased 11 basis points (tax
equivalent net interest margin increased five basis points) as the
result of higher loan and investment yields and increased earning
assets from the Bank of Napa acquisition.
-
Total deposits increased $37.9 million in the first quarter to
$2,186.6 million. Non-interest bearing deposits represented 48.7% of
total deposits and the cost of total deposits for both the current
quarter and last quarter was 0.08%, up one basis point from first
quarter of last year.
-
Loans totaled $1,671.7 million at March 31, 2018, compared to $1,679.0
million at December 31, 2017. New loan volume of $37.4 million in the
first quarter of 2018 was partially offset by payoffs of $31.5
million, and combined with changes in lines of credit utilization and
amortization on existing loans, resulted in the net decrease of $7.3
million.
-
Strong credit quality remains a cornerstone of the Bank's consistent
performance. Non-accrual loans represented 0.02% of the Bank's loan
portfolio as of March 31, 2018. There were no provisions for loan
losses or off-balance sheet commitments recorded in the first quarter
of 2018.
-
All capital ratios are well above regulatory requirements for a
well-capitalized institution. The total risk-based capital ratio for
Bancorp was 15.1% at March 31, 2018, compared to 14.9% at December 31,
2017. Tangible common equity to tangible assets was 10.6% at March 31,
2018, compared to 10.7% at December 31, 2017 (refer to footnote 3 on
page 6 for a definition of this non-GAAP financial measure).
Loans and Credit Quality
Loan originations totaled $37.4 million in the first quarter of 2018,
compared to $51.5 million last quarter and $23.9 million in the same
quarter last year. Loan payoffs for the quarter were $31.5 million,
compared to $26.4 million in the fourth quarter of 2017 and $32.7
million in the same quarter last year. The largest portion of payoffs in
the current quarter came from the successful completion of construction
projects and the sale of assets underlying other loans.
Non-accrual loans totaled $392 thousand, or 0.02% of the loan portfolio
at March 31, 2018, down from $406 thousand, or 0.02% at December 31,
2017, and $1.2 million, or 0.08% a year ago. Classified loans totaled
$27.8 million at March 31, 2018, compared to $27.9 million at
December 31, 2017 and $30.2 million at March 31, 2017. There were no
loans classified doubtful at March 31, 2018 or December 31, 2017.
Accruing loans past due 30 to 89 days totaled $388 thousand at March 31,
2018, compared to $1.9 million at December 31, 2017 and $834 thousand a
year ago.
There was no provision for loan losses recorded in either the first
quarter of 2018 or 2017 as the level of reserves was deemed appropriate
for the portfolio. A $500 thousand provision for loan losses was
recorded in the fourth quarter of 2017, which was consistent with our
organic loan growth and changing risk factors. Net recoveries were $4
thousand in the first quarter of 2018, compared to net recoveries of $21
thousand in the prior quarter and net charge-offs of $223 thousand in
the same quarter a year ago. The ratio of loan loss reserves to loans
was 0.94% at both March 31, 2018 and December 31, 2017, compared to
1.03% at March 31, 2017. Based on the Bank of Marin legacy portfolio
only, the ratio of loan loss reserve to loans was 1.06% at both March
31, 2018 and December 31, 2017.
Investments
The investment portfolio totaled $572.9 million at March 31, 2018,
compared to $483.5 million at December 31, 2017 and $414.0 million at
March 31, 2017. The increase of $89.4 million in the first quarter was
primarily due to purchases of $111.7 million in agency securities to
deploy existing cash balances and in anticipation of upcoming portfolio
maturities.
Deposits
Total deposits increased to $2,186.6 million at March 31, 2018, compared
to $2,148.7 million at December 31, 2017 and $1,779.3 million at March
31, 2017. The average cost of deposits in the first quarter of 2018
increased one basis point from the first quarter of 2017 to 0.08%.
Earnings
“Our strong earnings of $0.91 per diluted share and return on assets of
1.05% reflect net interest margin expansion and the first full quarter
of consolidated results with Bank of Napa,” said Tani Girton, Executive
Vice President and Chief Financial Officer. “The conversion of the Bank
of Napa systems to Bank of Marin is now complete, and the combined team
has begun leveraging their broad expertise to uncover new opportunities
in Napa.”
Net interest income totaled $21.9 million in the first quarter of 2018,
compared to $20.1 million in the prior quarter. The $1.8 million
increase in net interest income from the prior quarter reflects $170.0
million growth in average earning assets.
Net interest income increased by $4.3 million from $17.6 million for the
same quarter last year, primarily due to the $390.5 million increase in
earning assets from both the Bank of Napa acquisition and organic
growth. Higher yields on investment securities and interest-bearing
cash, and upward repricing of variable rate loans also positively
impacted interest income for the current quarter.
The tax-equivalent net interest margin was 3.85% in the first quarter of
2018, compared to 3.80% in the prior quarter and 3.79% in the same
quarter a year ago. The five basis point increase in the first quarter
of 2018 compared to the prior quarter was primarily due to higher yields
on interest-earning assets. The six basis point increase compared to the
first quarter of 2017 is also related to higher yields on earning
assets, partially offset by an increase of lower yielding cash and
securities as a percentage of total earning assets.
Loans obtained through the acquisition of other banks are classified as
either purchased credit impaired ("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.
As our acquired loans from prior acquisitions continue to pay off, we
expect the accretion on these 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, 2018 |
| December 31, 2017 |
| March 31, 2017 |
|
(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 | |
|
$
|
112
|
| |
|
2 bps
| |
|
$
|
85
|
| |
|
2 bps
| |
|
$
|
90
|
| |
|
2 bps
|
|
Accretion on non-PCI loans 2 | | |
$
|
99
| | | |
2 bps
| | |
$
|
110
| | | |
2 bps
| | |
$
|
150
| | | |
3 bps
|
|
Gains on payoffs of PCI loans
|
|
|
$
|
128
|
|
|
|
2 bps
|
|
|
$
|
100
|
|
|
|
2 bps
|
|
|
$
|
—
|
|
|
|
0 bps
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
1Accretable yield on PCI loans totaled $1.1 million,
$1.3 million and $1.4 million at March 31, 2018, December 31, 2017 and
March 31, 2017, respectively.
2Unaccreted
purchase discounts on non-PCI loans totaled $1.1 million, $1.2 million
and $1.6 million at March 31, 2018, December 31, 2017 and March 31,
2017, respectively.
Non-interest income totaled $2.2 million in the first quarter of 2018,
compared to $2.0 million in the prior quarter and $2.1 million in the
same quarter of last year. The increase in 2018 primarily relates to
$195 thousand loss on the sale of investment securities in the fourth
quarter of 2017.
Non-interest expense totaled $16.1 million in the first quarter of 2018,
$15.1 million in the prior quarter, and $13.0 million in the same
quarter a year ago. The increase from the prior quarter was primarily
due to higher salaries and benefits related to the addition of Bank of
Napa employees, $340 thousand in stock-based compensation related to
certain participants meeting retirement eligibility requirements, and
the 2018 reset of 401(k) employer match and payroll taxes. Professional
services increased as a result of $750 thousand consulting expenses
related to core processing contract negotiations, which we expect to
result in future technology cost savings. The increases were partially
offset by a decrease of $1.1 million in Bank of Napa acquisition
expenses to $615 thousand in the first quarter of 2018. We expect
additional acquisition expenses of approximately $325 thousand in 2018.
The increase in non-interest expense from the same quarter a year ago
was primarily due to higher salaries and benefits related to the
addition of Bank of Napa employees, stock-based compensation, merit
increases and filling open positions. In addition, professional fees and
acquisition-related expenses mentioned above also increased non-interest
expense.
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into
law. The law reduces the federal corporate income tax rate to 21% for
tax years beginning on or after January 1, 2018. Due to the passage of
the Tax Cuts and Jobs Act of 2017, the Bank has valued all of its
deferred tax assets and liabilities at the 21% rate. The adjustment to
the net deferred tax assets valuation as of December 22, 2017 was $3.0
million as recorded in provision for income taxes in the fourth quarter
of 2017. Bancorp's effective tax rate in the first quarter of 2018 was
20.7% and positively impacted diluted earnings per share by $0.09.
Share Repurchase Program
Bancorp’s Board of Directors has approved the repurchase of up to $25
million of the Bancorp’s common stock through May 1, 2019.
Under the stock repurchase program, Bancorp may purchase shares of its
common stock through various means such as open market transactions,
including block purchases, and privately negotiated transactions. The
number of shares repurchased and the timing, manner, price and amount of
any repurchases will be determined at the Company’s discretion. Factors
include, but are not limited to, stock price, trading volume and general
market conditions, along with Bancorp’s general business conditions. The
program may be suspended or discontinued at any time and does not
obligate the company to acquire any specific number of shares of its
common stock.
As part of the stock repurchase program, Bancorp is entering into a
trading plan adopted in accordance with Rule 10b5-1 of the Securities
Exchange Act of 1934, as amended. The 10b5-1 trading plan would permit
common stock to be repurchased at a time that Bancorp might otherwise be
precluded from doing so under insider trading laws or self-imposed
trading restrictions. The 10b5-1 trading plan is administered by an
independent broker and is subject to price, market volume and timing
restrictions.
Earnings Call and Webcast Information
Bank of Marin Bancorp will webcast its first quarter earnings call on
Monday, April 23, 2018 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
Founded in 1989 and headquartered in Novato, Bank of Marin is the
wholly-owned subsidiary of Bank of Marin Bancorp (NASDAQ: BMRC). A
leading business and community bank in the San Francisco Bay Area, with
assets of $2.5 billion and 23 offices throughout 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 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. 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 acquisitions,
competition, changes in accounting principles, policies or guidelines,
legislation or regulation (including the Tax Cuts & Jobs Act of 2017),
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, including the impact of the Bank of
Napa acquisition, are detailed in various securities law filings made
periodically by Bancorp, copies of which are available from Bancorp
without charge. Bancorp undertakes no obligation to release publicly the
result of any revisions to these forward-looking statements that may be
made to reflect events or circumstances after the date of this press
release or to reflect the occurrence of unanticipated events.
|
|
| BANK OF MARIN BANCORP |
| FINANCIAL HIGHLIGHTS |
| March 31, 2018 |
|
|
|
(dollars in thousands, except per share data; unaudited)
| |
QUARTER-TO-DATE |
| March 31, 2018 |
| December 31, 2017 |
| March 31, 2017 |
|
|
NET INCOME
| |
$
|
6,389
| | | |
$
|
1,110
| | | |
$
|
4,548
| | |
|
DILUTED EARNINGS PER COMMON SHARE
| |
$
|
0.91
| | | |
$
|
0.17
| | | |
$
|
0.74
| | |
|
RETURN ON AVERAGE ASSETS (ROA)
| |
1.05
| |
%
| |
0.19
| |
%
| |
0.91
| |
%
|
|
RETURN ON AVERAGE EQUITY (ROE)
| |
8.70
| |
%
| |
1.63
| |
%
| |
7.92
| |
%
|
|
EFFICIENCY RATIO
| |
66.64
| |
%
| |
68.25
| |
%
| |
65.92
| |
%
|
|
TAX-EQUIVALENT NET INTEREST MARGIN1 | |
3.85
| |
%
| |
3.80
| |
%
| |
3.79
| |
%
|
|
NET CHARGE-OFFS (RECOVERIES)
| |
$
|
(4
|
)
| | |
$
|
(21
|
)
| | |
$
|
223
| | |
|
NET CHARGE-OFFS (RECOVERIES) TO AVERAGE LOANS
| |
—
| |
%
| |
—
| |
%
| |
0.02
| |
%
|
| | | | | | | | | |
|
AT PERIOD END | | | | | | | | | |
|
TOTAL ASSETS
| |
$
|
2,510,043
| | | |
$
|
2,468,154
| | | |
$
|
2,033,708
| | |
| | | | | | | | | |
|
|
LOANS:
| | | | | | | | | |
|
COMMERCIAL AND INDUSTRIAL
| |
$
|
231,680
| | | |
$
|
231,166
| | | |
$
|
219,760
| | |
|
REAL ESTATE
| | | | | | | | | |
|
COMMERCIAL OWNER-OCCUPIED
| |
$
|
300,377
| | | |
$
|
268,872
| | | |
$
|
254,180
| | |
|
COMMERCIAL INVESTOR-OWNED
| |
$
|
828,945
| | | |
$
|
858,603
| | | |
$
|
712,081
| | |
|
CONSTRUCTION
| |
$
|
64,978
| | | |
$
|
63,828
| | | |
$
|
67,162
| | |
|
HOME EQUITY
| |
$
|
124,699
| | | |
$
|
132,466
| | | |
$
|
115,180
| | |
|
OTHER RESIDENTIAL
| |
$
|
95,621
| | | |
$
|
96,668
| | | |
$
|
84,720
| | |
|
INSTALLMENT AND OTHER CONSUMER LOANS
| |
$
|
25,440
|
| | |
$
|
27,410
|
| | |
$
|
24,487
|
| |
|
TOTAL LOANS
| |
$
|
1,671,740
| | | |
$
|
1,679,013
| | | |
$
|
1,477,570
| | |
| | | | | | | | | |
|
|
NON-PERFORMING LOANS2:
| | | | | | | | | |
|
REAL ESTATE
| | | | | | | | | |
|
COMMERCIAL INVESTOR-OWNED
| |
$
|
—
| | | |
$
|
—
| | | |
$
|
1,076
| | |
|
HOME EQUITY
| |
$
|
392
| | | |
$
|
406
| | | |
$
|
87
| | |
|
INSTALLMENT AND OTHER CONSUMER LOANS
| |
$
|
—
|
| | |
$
|
—
|
| | |
$
|
52
|
| |
|
TOTAL NON-ACCRUAL LOANS
| |
$
|
392
| | | |
$
|
406
| | | |
$
|
1,215
| | |
| | | | | | | | | |
|
|
CLASSIFIED LOANS (GRADED SUBSTANDARD & DOUBTFUL)
| |
$
|
27,807
| | | |
$
|
27,906
| | | |
$
|
30,230
| | |
|
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE
| |
$
|
388
| | | |
$
|
1,925
| | | |
$
|
834
| | |
|
LOAN LOSS RESERVE TO LOANS
| |
0.94
| |
%
| |
0.94
| |
%
| |
1.03
| |
%
|
|
LOAN LOSS RESERVE TO NON-ACCRUAL LOANS
| |
40.26
| |
x
| |
38.88
| |
x
| |
12.52
| |
x
|
|
NON-ACCRUAL LOANS TO TOTAL LOANS
| |
0.02
| |
%
| |
0.02
| |
%
| |
0.08
| |
%
|
| | | | | | | | | |
|
|
TOTAL DEPOSITS
| |
$
|
2,186,594
| | | |
$
|
2,148,670
| | | |
$
|
1,779,269
| | |
|
LOAN-TO-DEPOSIT RATIO
| |
76.5
| |
%
| |
78.1
| |
%
| |
83.0
| |
%
|
|
STOCKHOLDERS' EQUITY
| |
$
|
298,464
| | | |
$
|
297,025
| | | |
$
|
234,986
| | |
|
BOOK VALUE PER SHARE
| |
$
|
42.73
| | | |
$
|
42.91
| | | |
$
|
38.22
| | |
|
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS3 | |
10.6
| |
%
| |
10.7
| |
%
| |
11.2
| |
%
|
|
TOTAL RISK BASED CAPITAL RATIO-BANK
| |
14.7
| |
%
| |
14.7
| |
%
| |
14.3
| |
%
|
|
TOTAL RISK BASED CAPITAL RATIO-BANCORP
| |
15.1
| |
%
| |
14.9
| |
%
| |
14.7
| |
%
|
|
FULL-TIME EQUIVALENT EMPLOYEES
| |
288
| | | |
291
| | | |
262
| | |
| | | | | | | | | |
|
| 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
$16.2 million, $16.5 million and $17.2 million at March 31, 2018,
December 31, 2017 and March 31, 2017, respectively. Excludes
purchased credit-impaired (PCI) loans with carrying values of $2.1
million, $2.1 million and $2.9 million that were accreting interest
at March 31, 2018, December 31, 2017 and March 31, 2017,
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 $36.4
million, $36.6 million and $8.9 million at March 31, 2018, December
31, 2017 and March 31, 2017, respectively. Tangible assets exclude
goodwill and intangible assets.
|
|
|
|
|
|
|
| BANK OF MARIN BANCORP |
| CONSOLIDATED STATEMENTS OF CONDITION |
| At March 31, 2018, December 31, 2017 and March 31, 2017 |
|
| | | |
| | | |
| | | |
|
(in thousands, except share data; unaudited)
|
| March 31,
2018
|
| December 31,
2017
|
| March 31,
2017
|
| Assets | | | | | | | | | | | | |
|
Cash and due from banks
| |
$
|
159,347
| | |
$
|
203,545
| | |
$
|
73,162
| |
|
Investment securities
| | | | | | | | | | | | |
|
Held-to-maturity, at amortized cost
| |
149,013
| | |
151,032
| | |
172,272
| |
|
Available-for-sale (at fair value; amortized cost $431,871, $334,285
and $242,650 at March 31, 2018, December 31, 2017 and March 31,
2017, respectively)
|
|
423,882
|
|
|
332,467
|
|
|
241,684
|
|
|
Total investment securities
| |
572,895
| | |
483,499
| | |
413,956
| |
|
Loans, net of allowance for loan losses of $15,771, $15,767 and
$15,219 at March 31, 2018, December 31, 2017 and March 31, 2017,
respectively
| |
1,655,969
| | |
1,663,246
| | |
1,462,351
| |
|
Bank premises and equipment, net
| |
8,297
| | |
8,612
| | |
8,336
| |
| Goodwill | |
30,140
| | |
30,140
| | |
6,436
| |
|
Core deposit intangible
| |
6,262
| | |
6,492
| | |
2,462
| |
|
Interest receivable and other assets
|
|
77,133
|
|
|
72,620
|
|
|
67,005
|
|
| Total assets |
| $ | 2,510,043 |
|
| $ | 2,468,154 |
|
| $ | 2,033,708 |
|
| | | | | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | |
|
Deposits
| | | | | | | | | | | | |
|
Non-interest bearing
| |
$
|
1,065,470
| | |
$
|
1,014,103
| | |
$
|
878,416
| |
|
Interest bearing
| | | | | | | | | | | | |
|
Transaction accounts
| |
166,117
| | |
169,195
| | |
100,628
| |
|
Savings accounts
| |
180,730
| | |
178,473
| | |
159,889
| |
|
Money market accounts
| |
628,335
| | |
626,783
| | |
494,324
| |
|
Time accounts
|
|
145,942
|
|
|
160,116
|
|
|
146,012
|
|
|
Total deposits
| |
2,186,594
| | |
2,148,670
| | |
1,779,269
| |
|
Subordinated debentures
| |
5,772
| | |
5,739
| | |
5,628
| |
|
Interest payable and other liabilities
|
|
19,213
|
|
|
16,720
|
|
|
13,825
|
|
|
Total liabilities
|
|
2,211,579
|
|
|
2,171,129
|
|
|
1,798,722
|
|
| | | | | | | | | | | |
|
| 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 - 6,985,126, 6,921,542 and 6,148,486 at March 31,
2018, December 31, 2017 and March 31, 2017, respectively
| |
145,282
| | |
143,967
| | |
87,911
| |
|
Retained earnings
| |
160,556
| | |
155,544
| | |
149,357
| |
|
Accumulated other comprehensive loss, net of taxes
|
|
(7,374
|
)
|
|
(2,486
|
)
|
|
(2,282
|
)
|
|
Total stockholders' equity
|
|
298,464
|
|
|
297,025
|
|
|
234,986
|
|
| Total liabilities and stockholders' equity |
| $ | 2,510,043 |
|
| $ | 2,468,154 |
|
| $ | 2,033,708 |
|
| | | | | | | | | | | |
|
|
|
| BANK OF MARIN BANCORP |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
| | | |
| | | |
| | | |
| |
Three months ended
|
|
(in thousands, except per share amounts; unaudited)
|
| March 31, 2018 |
| December 31, 2017 |
| March 31, 2017 |
| Interest income | | | | | | | | | | | | |
|
Interest and fees on loans
| |
$
|
18,887
| | |
$
|
17,789
| | |
$
|
15,849
| |
|
Interest on investment securities
| | | | | | | | | | | |
|
Securities of U.S. government agencies
| |
2,475
| | |
1,886
| | |
1,518
| |
|
Obligations of state and political subdivisions
| |
638
| | |
563
| | |
568
| |
|
Corporate debt securities and other
| |
44
| | |
40
| | |
37
| |
|
Interest on Federal funds sold and due from banks
|
|
403
|
|
|
372
|
|
|
60
|
|
|
Total interest income
| |
22,447
| | |
20,650
| | |
18,032
| |
| Interest expense | | | | | | | | | | | | |
|
Interest on interest-bearing transaction accounts
| |
52
| | |
34
| | |
29
| |
|
Interest on savings accounts
| |
18
| | |
18
| | |
15
| |
|
Interest on money market accounts
| |
216
| | |
195
| | |
113
| |
|
Interest on time accounts
| |
156
| | |
153
| | |
146
| |
|
Interest on subordinated debentures
|
|
114
|
|
|
111
|
|
|
108
|
|
|
Total interest expense
|
|
556
|
|
|
511
|
|
|
411
|
|
|
Net interest income
| |
21,891
| | |
20,139
| | |
17,621
| |
|
Provision for loan losses
|
|
—
|
|
|
500
|
|
|
—
|
|
|
Net interest income after provision for loan losses
|
|
21,891
|
|
|
19,639
|
|
|
17,621
|
|
| Non-interest income | | | | | | | | | | | | |
|
Service charges on deposit accounts
| |
477
| | |
447
| | |
452
| |
| Wealth Management and Trust Services | |
515
| | |
544
| | |
503
| |
|
Debit card interchange fees
| |
396
| | |
385
| | |
372
| |
|
Merchant interchange fees
| |
80
| | |
102
| | |
96
| |
|
Earnings on bank-owned life insurance
| |
228
| | |
217
| | |
209
| |
|
Dividends on FHLB stock
| |
196
| | |
181
| | |
232
| |
|
Losses on investment securities, net
| |
—
| | |
(195
|
)
| |
—
| |
|
Other income
|
|
350
|
|
|
310
|
|
|
251
|
|
|
Total non-interest income
|
|
2,242
|
|
|
1,991
|
|
|
2,115
|
|
| Non-interest expense | | | | | | | | | | | | |
|
Salaries and related benefits
| |
9,017
| | |
7,852
| | |
7,475
| |
|
Occupancy and equipment
| |
1,507
| | |
1,409
| | |
1,319
| |
|
Depreciation and amortization
| |
547
| | |
508
| | |
481
| |
| Federal Deposit Insurance Corporation insurance
| |
191
| | |
176
| | |
161
| |
|
Data processing
| |
1,381
| | |
2,058
| | |
939
| |
Professional services
| |
1,299
| | |
1,013
| | |
522
| |
|
Directors' expense
| |
174
| | |
163
| | |
158
| |
|
Information technology
| |
269
| | |
206
| | |
198
| |
|
Provision for losses on off-balance sheet commitments
| |
—
| | |
—
| | |
165
| |
|
Other expense
|
|
1,696
|
|
|
1,719
|
|
|
1,593
|
|
|
Total non-interest expense
|
|
16,081
|
|
|
15,104
|
|
|
13,011
|
|
|
Income before provision for income taxes
| |
8,052
| | |
6,526
| | |
6,725
| |
|
Provision for income taxes
|
|
1,663
|
|
|
5,416
|
|
|
2,177
|
|
| Net income |
| $ | 6,389 |
|
| $ | 1,110 |
|
| $ | 4,548 |
|
|
Net income per common share:
| | | | | | | | | | | |
|
Basic
| |
$
|
0.92
| | |
$
|
0.17
| | |
$
|
0.75
| |
|
Diluted
| |
$
|
0.91
| | |
$
|
0.17
| | |
$
|
0.74
| |
|
Weighted average shares:
| | | | | | | | | | | |
|
Basic
| |
6,914
| | |
6,455
| | |
6,092
| |
|
Diluted
| |
7,006
| | |
6,550
| | |
6,172
| |
|
Dividends declared per common share
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
|
$
|
0.27
|
|
| Comprehensive income: | | | | | | | | | | | | |
|
Net income
| |
$
|
6,389
| | |
$
|
1,110
| | |
$
|
4,548
| |
|
Other comprehensive (loss) income
| | | | | | | | | | | |
|
Change in net unrealized gain or loss on available-for-sale
securities
| |
(6,170
|
)
| |
(2,637
|
)
| |
4,710
| |
|
Reclassification adjustment for losses on available-for-sale
securities in net income
| |
—
| | |
195
| | |
—
| |
|
Net unrealized loss on securities transferred from
available-for-sale to held-to-maturity
| |
—
| | |
—
| | |
(3,036
|
)
|
|
Amortization of net unrealized losses on securities transferred from
available-for-sale to held-to-maturity
|
|
136
|
|
|
126
|
|
|
41
|
|
|
Subtotal
| |
(6,034
|
)
| |
(2,316
|
)
| |
1,715
| |
|
Deferred tax (benefit) expense
|
|
(1,784
|
)
|
|
(1,060
|
)
|
|
704
|
|
|
Other comprehensive (loss) income, net of tax
|
|
(4,250
|
)
|
|
(1,256
|
)
|
|
1,011
|
|
| Comprehensive income |
|
$
|
2,139
|
|
|
$
|
(146
|
)
|
|
$
|
5,559
|
|
| | | | | | | | | | | |
|
|
|
|
|
| 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, 2018 |
| December 31, 2017 |
| March 31, 2017 |
| | | | |
Interest
| | | | | |
Interest
| | | | | |
Interest
| | |
| | |
Average
| |
Income/
| |
Yield/
| |
Average
| |
Income/
| |
Yield/
| |
Average
| |
Income/
| |
Yield/
|
|
(dollars in thousands)
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Assets
| | | | | | | | | | | | | | | | | | |
|
Interest-bearing due from banks 1 | |
$
|
104,850
| | |
$
|
403
| | |
1.54
|
%
| |
$
|
108,255
| | |
$
|
372
| | |
1.34
|
%
| |
$
|
29,339
| | |
$
|
60
| | |
0.82
|
%
|
|
Investment securities 2, 3 | |
532,544
| | |
3,276
| | |
2.46
|
%
| |
455,706
| | |
2,722
| | |
2.39
|
%
| |
414,552
| | |
2,361
| | |
2.28
|
%
|
|
|
Loans 1, 3, 4 |
|
1,675,490
|
|
|
19,119
|
|
|
4.56
|
%
|
|
1,578,959
|
|
|
18,245
|
|
|
4.52
|
%
|
|
1,478,487
|
|
|
16,222
|
|
|
4.39
|
%
|
|
Total interest-earning assets 1 | |
2,312,884
| | |
22,798
| | |
3.94
|
%
| |
2,142,920
| | |
21,339
| | |
3.89
|
%
| |
1,922,378
| | |
18,643
| | |
3.88
|
%
|
|
Cash and non-interest-bearing due from banks
| |
45,815
| | | | | | |
40,648
| | | | | | |
38,131
| | | | | |
|
Bank premises and equipment, net
| |
8,501
| | | | | | |
8,384
| | | | | | |
8,440
| | | | | |
|
|
Interest receivable and other assets, net
|
|
89,018
|
|
|
|
|
|
|
74,299
|
|
|
|
|
|
|
58,014
|
|
|
|
|
|
| Total assets |
| $ | 2,456,218 |
|
|
|
|
|
| $ | 2,266,251 |
|
|
|
|
|
| $ | 2,026,963 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity
| | | | | | | | | | | | | | | | | | |
|
Interest-bearing transaction accounts
| |
$
|
168,371
| | |
$
|
52
| | |
0.13
|
%
| |
$
|
129,538
| | |
$
|
34
| | |
0.10
|
%
| |
$
|
101,121
| | |
$
|
29
| | |
0.12
|
%
|
|
Savings accounts
| |
180,253
| | |
18
| | |
0.04
|
%
| |
173,057
| | |
18
| | |
0.04
|
%
| |
160,913
| | |
15
| | |
0.04
|
%
|
|
Money market accounts
| |
582,961
| | |
216
| | |
0.15
|
%
| |
551,591
| | |
195
| | |
0.14
|
%
| |
518,540
| | |
113
| | |
0.09
|
%
|
|
Time accounts including CDARS
| |
154,543
| | |
156
| | |
0.41
|
%
| |
150,552
| | |
153
| | |
0.40
|
%
| |
146,966
| | |
146
| | |
0.40
|
%
|
|
Overnight borrowings 1 | |
—
| | |
—
| | |
—
|
%
| |
6
| | |
—
| | |
1.75
|
%
| |
—
| | |
—
| | |
—
|
%
|
|
|
Subordinated debentures 1 |
|
5,753
|
|
|
114
|
|
|
7.90
|
%
|
|
5,720
|
|
|
111
|
|
|
7.63
|
%
|
|
5,607
|
|
|
108
|
|
|
7.74
|
%
|
|
Total interest-bearing liabilities
| |
1,091,881
| | |
556
| | |
0.21
|
%
| |
1,010,464
| | |
511
| | |
0.20
|
%
| |
933,147
| | |
411
| | |
0.18
|
%
|
|
Demand accounts
| |
1,049,502
| | | | | | |
971,381
| | | | | | |
846,316
| | | | | |
|
Interest payable and other liabilities
| |
16,903
| | | | | | |
14,558
| | | | | | |
14,645
| | | | | |
|
|
Stockholders' equity
|
|
297,932
|
|
|
|
|
|
|
269,848
|
|
|
|
|
|
|
232,855
|
|
|
|
|
|
| Total liabilities & stockholders' equity |
| $ | 2,456,218 |
|
|
|
|
|
| $ | 2,266,251 |
|
|
|
|
|
| $ | 2,026,963 |
|
|
|
|
|
|
Tax-equivalent net interest income/margin 1 |
|
|
|
$
|
22,242
|
|
|
3.85
|
%
|
|
|
|
$
|
20,828
|
|
|
3.80
|
%
|
|
|
|
$
|
18,232
|
|
|
3.79
|
%
|
|
Reported net interest income/margin 1 |
|
|
|
$
|
21,891
|
|
|
3.79
|
%
|
|
|
|
$
|
20,139
|
|
|
3.68
|
%
|
|
|
|
$
|
17,621
|
|
|
3.67
|
%
|
|
Tax-equivalent net interest rate spread
|
|
|
|
|
|
3.74
|
%
|
|
|
|
|
|
3.69
|
%
|
|
|
|
|
|
3.70
|
%
|
| | | | | | | | | | | | | | | | | | |
|
| 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 21 percent in 2018 and 35 percent in 2017.
|
| 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: https://www.businesswire.com/news/home/20180423005255/en/
Bank of Marin Bancorp
Beth Drummey, 415-763-4529
Marketing &
Community Relations Manager
bethdrummey@bankofmarin.com
Source: Bank of Marin Bancorp