California
|
001-33572
|
20-8859754
|
||
(State or other jurisdiction of incorporation)
|
(File number)
|
(I.R.S. Employer Identification No.)
|
504 Redwood Blvd., Suite 100, Novato, CA
|
94947
|
|
(Address of principal executive office)
|
(Zip Code)
|
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425)
|
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c)) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02
|
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
|
|
On January 20, 2012, Bank of Marin Bancorp released its financial results for the year and quarter ended December 31, 2011. A copy of the press release is included as Exhibit 99.1.
|
Section 8 – Other Events
|
Item 8.01
|
Other Events
|
Item 9.01
|
FINANCIAL STATEMENTS AND EXHIBITS
|
(d)
|
Exhibits.
|
|
99.1
|
Press Release dated January 20, 2012.
|
Dated: January 20, 2012
|
BANK OF MARIN BANCORP | ||
by: |
/s/ Christina J. Cook
|
||
Christina J. Cook
Executive Vice President and Chief Financial Officer
|
Exhibit No.
|
Description
|
Page Number
|
Press Release dated January 20, 2012
|
1-8
|
FOR IMMEDIATE RELEASE
|
CONTACT:
|
Sandy Pfaff
|
|
|
415-819-7447
|
||
sandy@pfaffpr.com
|
|
●
|
Fourth-quarter 2011 earnings include a pre-tax $683 thousand write-off of the Napa core deposit intangible asset (included in other expense), primarily due to a significant decline in alternative funding costs since the Acquisition. This write-off reduced diluted earnings per share by 7 cents in the fourth quarter and year ended December 31, 2011.
|
|
●
|
Fourth-quarter 2011 earnings reflect a $2.5 million provision for loan losses, an increase of $1.5 million from the same quarter a year ago. The increase primarily represents the provision for loan losses on acquired loans, as well as an increase in general reserves related to loan growth.
|
|
●
|
Total loans grew $89.8 million, or 9.5% in 2011, primarily due to the loans acquired in Napa and growth in the San Francisco market. In the fourth quarter loans grew $38.5 million, or 3.9%, primarily in the Marin and San Francisco markets.
|
|
●
|
Total deposits grew $187.2 million, or 18.4%, over a year ago, with non-interest bearing deposits growing $77.4 million or 27.4%. Non-interest bearing deposits totaled 29.9% of deposits at December 31, 2011, compared to 27.8% at December 31, 2010.
|
|
●
|
Credit quality remains solid with non-performing loans at 1.16% of total loans, down from 1.37% a year ago. The loan loss reserve as a percentage of non-performing loans totaled 122% at December 31st, compared to 96% a year ago.
|
|
●
|
On January 19, 2012, the Board of Directors declared a quarterly cash dividend of $0.17 per share. The cash dividend is payable to shareholders of record at the close of business on February 1, 2012 and will be payable on February 10, 2012.
|
(dollars in thousands, except per share data; unaudited)
|
||||||||||||||||
FOURTH QUARTER
|
QTD 2011
|
QTD 2010
|
CHANGE
|
% CHANGE
|
||||||||||||
NET INCOME
|
$ | 3,383 | $ | 3,908 | $ | (525 | ) | (13.4 | %) | |||||||
DILUTED EARNINGS PER COMMON SHARE
|
$ | 0.63 | $ | 0.73 | $ | (0.10 | ) | (13.7 | %) | |||||||
RETURN ON AVERAGE ASSETS (ROA)
|
0.96 | % | 1.28 | % | (0.32 | %) | (25.0 | %) | ||||||||
RETURN ON AVERAGE EQUITY (ROE)
|
9.97 | % | 12.81 | % | (2.84 | %) | (22.2 | %) | ||||||||
EFFICIENCY RATIO
|
56.46 | % | 52.12 | % | 4.34 | % | 8.3 | % | ||||||||
TAX-EQUIVALENT NET INTEREST MARGIN 1
|
4.79 | % | 4.92 | % | (0.13 | %) | (2.6 | %) | ||||||||
NET CHARGE-OFFS
|
$ | 1,085 | $ | 682 | $ | 403 | 59.1 | % | ||||||||
NET CHARGE-OFFS TO AVERAGE LOANS
|
0.11 | % | 0.07 | % | 0.04 | % | 57.1 | % | ||||||||
YEAR-TO-DATE
|
YTD 2011
|
YTD 2010
|
CHANGE
|
% CHANGE
|
||||||||||||
NET INCOME
|
$ | 15,564 | $ | 13,552 | $ | 2,012 | 14.8 | % | ||||||||
DILUTED EARNINGS PER COMMON SHARE
|
$ | 2.89 | $ | 2.55 | $ | 0.34 | 13.3 | % | ||||||||
RETURN ON AVERAGE ASSETS (ROA)
|
1.16 | % | 1.14 | % | 0.02 | % | 1.8 | % | ||||||||
RETURN ON AVERAGE EQUITY (ROE)
|
12.01 | % | 11.67 | % | 0.34 | % | 2.9 | % | ||||||||
EFFICIENCY RATIO
|
54.62 | % | 55.20 | % | (0.58 | %) | (1.1 | %) | ||||||||
TAX-EQUIVALENT NET INTEREST MARGIN 1
|
5.13 | % | 4.95 | % | 0.18 | % | 3.6 | % | ||||||||
NET CHARGE-OFFS
|
$ | 4,803 | $ | 3,577 | $ | 1,226 | 34.3 | % | ||||||||
NET CHARGE-OFFS TO AVERAGE LOANS
|
0.49 | % | 0.38 | % | 0.11 | % | 28.9 | % | ||||||||
AT PERIOD END
|
December 31, 2011
|
December 31, 2010
|
CHANGE
|
% CHANGE
|
||||||||||||
TOTAL ASSETS
|
$ | 1,393,263 | $ | 1,208,150 | $ | 185,113 | 15.3 | % | ||||||||
LOANS:
|
||||||||||||||||
COMMERCIAL AND INDUSTRIAL
|
$ | 175,790 | $ | 153,836 | $ | 21,954 | 14.3 | % | ||||||||
REAL ESTATE
|
||||||||||||||||
COMMERCIAL OWNER-OCCUPIED
|
$ | 174,705 | $ | 142,590 | $ | 32,115 | 22.5 | % | ||||||||
COMMERCIAL INVESTOR-OWNED
|
$ | 446,425 | $ | 383,553 | $ | 62,872 | 16.4 | % | ||||||||
CONSTRUCTION
|
$ | 51,957 | $ | 77,619 | $ | (25,662 | ) | (33.1 | %) | |||||||
HOME EQUITY
|
$ | 98,043 | $ | 86,932 | $ | 11,111 | 12.8 | % | ||||||||
OTHER RESIDENTIAL
|
$ | 61,502 | $ | 69,991 | $ | (8,489 | ) | (12.1 | %) | |||||||
INSTALLMENT AND OTHER CONSUMER LOANS
|
$ | 22,732 | $ | 26,879 | $ | (4,147 | ) | (15.4 | %) | |||||||
TOTAL LOANS
|
$ | 1,031,154 | $ | 941,400 | $ | 89,754 | 9.5 | % | ||||||||
NON-PERFORMING LOANS 2:
|
||||||||||||||||
COMMERCIAL
|
$ | 2,955 | $ | 2,486 | $ | 469 | 18.9 | % | ||||||||
REAL ESTATE
|
||||||||||||||||
COMMERCIAL OWNER-OCCUPIED
|
$ | 2,033 | $ | 632 | $ | 1,401 | 221.7 | % | ||||||||
COMMERCIAL INVESTOR
|
$ | 741 | $ | 0 | $ | 741 |
NM
|
|||||||||
CONSTRUCTION
|
$ | 3,014 | $ | 9,297 | $ | (6,283 | ) | (67.6 | %) | |||||||
HOME EQUITY
|
$ | 766 | $ | 0 | $ | 766 |
NM
|
|||||||||
OTHER RESIDENTIAL
|
$ | 1,942 | $ | 148 | $ | 1,794 | 1212.2 | % | ||||||||
INSTALLMENT AND OTHER CONSUMER LOANS
|
$ | 519 | $ | 362 | $ | 157 | 43.4 | % | ||||||||
TOTAL NON-PERFORMING LOANS
|
$ | 11,970 | $ | 12,925 | $ | (955 | ) | (7.4 | %) | |||||||
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE
|
$ | 7,382 | $ | 352 | $ | 7,030 | 1997.2 | % | ||||||||
LOAN LOSS RESERVE TO LOANS
|
1.42 | % | 1.32 | % | 0.10 | % | 7.6 | % | ||||||||
LOAN LOSS RESERVE TO NON-PERFORMING LOANS
|
1.22 | x | 0.96 | x | 0.26 | x | 27.1 | % | ||||||||
NON-PERFORMING LOANS TO TOTAL LOANS
|
1.16 | % | 1.37 | % | (0.21 | %) | (15.3 | %) | ||||||||
TEXAS RATIO3
|
7.99 | % | 9.72 | % | (1.73 | %) | (17.8 | %) | ||||||||
TOTAL DEPOSITS
|
$ | 1,202,972 | $ | 1,015,739 | $ | 187,233 | 18.4 | % | ||||||||
LOAN TO DEPOSIT RATIO
|
85.7 | % | 92.7 | % | (7.0 | %) | (7.6 | %) | ||||||||
STOCKHOLDERS' EQUITY
|
$ | 135,551 | $ | 121,920 | $ | 13,631 | 11.2 | % | ||||||||
BOOK VALUE PER SHARE
|
$ | 25.40 | $ | 23.05 | $ | 2.35 | 10.2 | % | ||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS 4
|
9.73 | % | 10.09 | % | (0.36 | %) | (3.6 | %) | ||||||||
TOTAL RISK BASED CAPITAL RATIO-BANK 5
|
12.9 | % | 12.7 | % | 0.2 | % | 1.6 | % | ||||||||
TOTAL RISK BASED CAPITAL RATIO-BANCORP5
|
13.1 | % | 13.3 | % | (0.2 | %) | (1.5 | %) |
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 $6.3 million and $1.2 million at December 31, 2011 and 2010, respectively. Excludes purchased credit-impaired (PCI) loans with a carrying value of $3.4 million that are accreting interest at December 31, 2011 and zero at December 31, 2010. These amounts are excluded as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status.
|
3 (Non-performing assets + 90 day delinquent loans)/(tangible common equity + allowance for loan losses).
|
4 Tangible common equity includes common stock, retained earnings and unrealized gain on available for sale securities, net of tax.
|
5 Current period estimated.
|
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF CONDITION
at December 31, 2011, September 30, 2011 and December 31, 2010
|
(in thousands, except share data; unaudited)
|
December 31, 2011
|
September 30, 2011
|
December 31, 2010
|
|||||||||
Assets
|
||||||||||||
Cash and due from banks
|
$ | 127,732 | $ | 130,675 | $ | 65,724 | ||||||
Short-term investments
|
2,011 | 2,111 | 19,508 | |||||||||
Cash and cash equivalents
|
129,743 | 132,786 | 85,232 | |||||||||
Investment securities
|
||||||||||||
Held to maturity, at amortized cost
|
59,738 | 39,077 | 34,917 | |||||||||
Available for sale (at fair value; amortized cost $132,348, $156,531 and $109,070 at December 31, 2011, September 30, 2011, and December 31, 2010, respectively)
|
135,104 | 159,478 | 111,736 | |||||||||
Total investment securities
|
194,842 | 198,555 | 146,653 | |||||||||
Loans, net of allowance for loan losses of $14,639, $13,224 and $12,392 at December 31, 2011, September 30, 2011 and December 31, 2010, respectively
|
1,016,515 | 979,419 | 929,008 | |||||||||
Bank premises and equipment, net
|
9,498 | 9,624 | 8,419 | |||||||||
Interest receivable and other assets
|
42,665 | 42,333 | 38,838 | |||||||||
Total assets
|
$ | 1,393,263 | $ | 1,362,717 | $ | 1,208,150 | ||||||
Liabilities and Stockholders' Equity
|
||||||||||||
Liabilities
|
||||||||||||
Deposits
|
||||||||||||
Non-interest bearing
|
$ | 359,591 | $ | 373,844 | $ | 282,195 | ||||||
Interest bearing
|
||||||||||||
Transaction accounts
|
134,673 | 128,916 | 105,177 | |||||||||
Savings accounts
|
75,617 | 74,392 | 56,760 | |||||||||
Money market accounts
|
434,461 | 417,505 | 371,352 | |||||||||
CDARS® time accounts
|
46,630 | 32,592 | 67,261 | |||||||||
Other time accounts
|
152,000 | 149,276 | 132,994 | |||||||||
Total deposits
|
1,202,972 | 1,176,525 | 1,015,739 | |||||||||
Federal Home Loan Bank borrowings
|
35,000 | 35,000 | 55,000 | |||||||||
Subordinated debenture
|
5,000 | 5,000 | 5,000 | |||||||||
Interest payable and other liabilities
|
14,740 | 13,191 | 10,491 | |||||||||
Total liabilities
|
1,257,712 | 1,229,716 | 1,086,230 | |||||||||
Stockholders' Equity
|
||||||||||||
Preferred stock, no par value
|
||||||||||||
Authorized - 5,000,000 shares; none issued
|
--- | --- | --- | |||||||||
Common stock, no par value
|
||||||||||||
Authorized - 15,000,000 shares
|
||||||||||||
Issued and outstanding - 5,336,927 shares, 5,331,368 shares and 5,290,082 shares at December 31, 2011, September 30, 2011 and December 31, 2010, respectively
|
56,854 | 56,670 | 55,383 | |||||||||
Retained earnings
|
77,098 | 74,622 | 64,991 | |||||||||
Accumulated other comprehensive income, net
|
1,599 | 1,709 | 1,546 | |||||||||
Total stockholders' equity
|
135,551 | 133,001 | 121,920 | |||||||||
Total liabilities and stockholders' equity
|
$ | 1,393,263 | $ | 1,362,717 | $ | 1,208,150 |
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF INCOME
|
Three months ended
|
Twelve months ended
|
|||||||||||||||||||
(in thousands, unaudited)
|
December. 31,
2011
|
September. 30,
2011
|
December. 31,
2010
|
December. 31,
2011
|
December. 31,
2010
|
|||||||||||||||
Interest income
|
||||||||||||||||||||
Interest and fees on loans
|
$ | 15,150 | $ | 15,567 | $ | 14,093 | $ | 63,479 | $ | 56,239 | ||||||||||
Interest on investment securities
|
||||||||||||||||||||
Securities on U.S. Government agencies
|
847 | 1,153 | 792 | 3,478 | 3,234 | |||||||||||||||
Obligations of state and political subdivisions
|
396 | 298 | 291 | 1,299 | 1,146 | |||||||||||||||
Corporate debt securities and other
|
203 | 151 | 141 | 636 | 593 | |||||||||||||||
Interest on Federal funds sold and short-term investments
|
70 | 56 | 47 | 222 | 145 | |||||||||||||||
Total interest income
|
16,666 | 17,225 | 15,364 | 69,114 | 61,357 | |||||||||||||||
Interest expense
|
||||||||||||||||||||
Interest on interest-bearing transaction accounts
|
30 | 35 | 29 | 151 | 110 | |||||||||||||||
Interest on savings accounts
|
23 | 21 | 25 | 98 | 104 | |||||||||||||||
Interest on money market accounts
|
282 | 326 | 339 | 1,286 | 2,467 | |||||||||||||||
Interest on CDARS® time accounts
|
45 | 50 | 179 | 237 | 842 | |||||||||||||||
Interest on other time accounts
|
336 | 305 | 373 | 1,314 | 1,495 | |||||||||||||||
Interest on borrowed funds
|
232 | 1,268 | 360 | 2,209 | 1,430 | |||||||||||||||
Total interest expense
|
948 | 2,005 | 1,305 | 5,295 | 6,448 | |||||||||||||||
Net interest income
|
15,718 | 15,220 | 14,059 | 63,819 | 54,909 | |||||||||||||||
Provision for loan losses
|
2,500 | 500 | 1,050 | 7,050 | 5,350 | |||||||||||||||
Net interest income after provision for loan losses
|
13,218 | 14,720 | 13,009 | 56,769 | 49,559 | |||||||||||||||
Non-interest income
|
||||||||||||||||||||
Service charges on deposit accounts
|
447 | 478 | 442 | 1,836 | 1,797 | |||||||||||||||
Wealth Management and Trust Services
|
445 | 486 | 394 | 1,834 | 1,521 | |||||||||||||||
Other income
|
632 | 601 | 524 | 2,599 | 2,203 | |||||||||||||||
Total non-interest income
|
1,524 | 1,565 | 1,360 | 6,269 | 5,521 | |||||||||||||||
Non-interest expense
|
||||||||||||||||||||
Salaries and related benefits
|
4,742 | 5,320 | 4,408 | 20,211 | 18,240 | |||||||||||||||
Occupancy and equipment
|
981 | 1,021 | 884 | 4,002 | 3,576 | |||||||||||||||
Depreciation and amortization
|
342 | 329 | 311 | 1,293 | 1,344 | |||||||||||||||
FDIC insurance
|
210 | 189 | 381 | 1,000 | 1,506 | |||||||||||||||
Data processing
|
557 | 642 | 494 | 2,690 | 1,916 | |||||||||||||||
Professional services
|
561 | 465 | 481 | 2,499 | 1,917 | |||||||||||||||
Other expense
|
2,341 | 1,455 | 1,078 | 6,588 | 4,858 | |||||||||||||||
Total non-interest expense
|
9,734 | 9,421 | 8,037 | 38,283 | 33,357 | |||||||||||||||
Income before provision for income taxes
|
5,008 | 6,864 | 6,332 | 24,755 | 21,723 | |||||||||||||||
Provision for income taxes
|
1,625 | 2,631 | 2,424 | 9,191 | 8,171 | |||||||||||||||
Net income
|
$ | 3,383 | $ | 4,233 | $ | 3,908 | $ | 15,564 | $ | 13,552 | ||||||||||
Net income per common share:
|
||||||||||||||||||||
Basic
|
$ | 0.64 | $ | 0.80 | $ | 0.74 | $ | 2.94 | $ | 2.59 | ||||||||||
Diluted
|
$ | 0.63 | $ | 0.79 | $ | 0.73 | $ | 2.89 | $ | 2.55 | ||||||||||
Weighted average shares used to compute net income per common share:
|
||||||||||||||||||||
Basic
|
5,313 | 5,310 | 5,259 | 5,302 | 5,238 | |||||||||||||||
Diluted
|
5,394 | 5,390 | 5,342 | 5,384 | 5,314 | |||||||||||||||
Dividends declared per common share
|
$ | 0.17 | $ | 0.16 | $ | 0.16 | $ | 0.65 | $ | 0.61 |
Three months ended
|
Three months ended
|
Three months ended
|
||||||||||||||||||||||||||||||||||
December 31, 2011
|
September 30, 2011
|
December 31, 2010
|
||||||||||||||||||||||||||||||||||
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)
|
$ | 104,190 | $ | 70 | 0.26 | % | $ | 94,153 | $ | 56 | 0.23 | % | $ | 60,050 | $ | 47 | 0.31 | % | ||||||||||||||||||
Investment securities
|
||||||||||||||||||||||||||||||||||||
U.S. Government agencies (2)
|
128,143 | 847 | 2.64 | % | 142,459 | 1,153 | 3.24 | % | 95,910 | 792 | 3.30 | % | ||||||||||||||||||||||||
Corporate CMOs and other (2)
|
18,632 | 203 | 4.36 | % | 18,053 | 151 | 3.35 | % | 15,628 | 141 | 3.61 | % | ||||||||||||||||||||||||
Obligations of state and political subdivisions (3)
|
47,758 | 566 | 4.74 | % | 35,064 | 449 | 5.12 | % | 32,756 | 443 | 5.41 | % | ||||||||||||||||||||||||
Loans and banker's acceptances (1) (3) (4)
|
1,009,916 | 15,289 | 5.92 | % | 982,165 | 15,676 | 6.25 | % | 932,570 | 14,184 | 5.95 | % | ||||||||||||||||||||||||
Total interest-earning assets (1)
|
1,308,639 | 16,975 | 5.08 | % | 1,271,894 | 17,485 | 5.38 | % | 1,136,914 | 15,607 | 5.37 | % | ||||||||||||||||||||||||
Cash and non-interest-bearing due from banks
|
52,574 | 46,799 | 36,567 | |||||||||||||||||||||||||||||||||
Bank premises and equipment, net
|
9,610 | 9,484 | 8,531 | |||||||||||||||||||||||||||||||||
Interest receivable and other assets, net
|
34,324 | 32,825 | 32,144 | |||||||||||||||||||||||||||||||||
Total assets
|
$ | 1,405,147 | $ | 1,361,002 | $ | 1,214,156 | ||||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity
|
||||||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts
|
$ | 130,894 | $ | 30 | 0.09 | % | $ | 129,862 | $ | 35 | 0.11 | % | $ | 102,117 | $ | 29 | 0.11 | % | ||||||||||||||||||
Savings accounts
|
75,217 | 23 | 0.12 | % | 72,288 | 21 | 0.12 | % | 55,259 | 25 | 0.18 | % | ||||||||||||||||||||||||
Money market accounts
|
432,728 | 282 | 0.26 | % | 413,186 | 326 | 0.31 | % | 380,165 | 339 | 0.35 | % | ||||||||||||||||||||||||
CDARS® time accounts
|
39,850 | 45 | 0.45 | % | 32,139 | 50 | 0.62 | % | 70,453 | 179 | 1.01 | % | ||||||||||||||||||||||||
Other time accounts
|
152,619 | 336 | 0.87 | % | 150,199 | 305 | 0.81 | % | 132,062 | 373 | 1.12 | % | ||||||||||||||||||||||||
FHLB fixed-rate advances
|
35,000 | 195 | 2.21 | % | 52,391 | 1,232 | 9.33 | % | 55,008 | 323 | 2.33 | % | ||||||||||||||||||||||||
Subordinated debenture (1)
|
5,000 | 37 | 2.90 | % | 5,000 | 36 | 2.82 | % | 5,000 | 37 | 2.90 | % | ||||||||||||||||||||||||
Total interest-bearing liabilities
|
871,308 | 948 | 0.43 | % | 855,065 | 2,005 | 0.93 | % | 800,064 | 1,305 | 0.65 | % | ||||||||||||||||||||||||
Demand accounts
|
386,066 | 364,502 | 281,563 | |||||||||||||||||||||||||||||||||
Interest payable and other liabilities
|
13,214 | 10,035 | 11,524 | |||||||||||||||||||||||||||||||||
Stockholders' equity
|
134,559 | 131,400 | 121,005 | |||||||||||||||||||||||||||||||||
Total liabilities & stockholders' equity
|
$ | 1,405,147 | $ | 1,361,002 | $ | 1,214,156 | ||||||||||||||||||||||||||||||
Tax-equivalent net interest income/margin (1)
|
$ | 16,027 | 4.79 | % | $ | 15,480 | 4.76 | % | $ | 14,302 | 4.92 | % | ||||||||||||||||||||||||
Reported net interest income/margin (1)
|
$ | 15,718 | 4.70 | % | $ | 15,220 | 4.68 | % | $ | 14,059 | 4.84 | % | ||||||||||||||||||||||||
Tax-equivalent net interest rate spread
|
4.65 | % | 4.45 | % | 4.72 | % |
Twelve months ended
|
Twelve months ended
|
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December 31, 2011
|
December 31, 2010
|
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Interest
|
Interest
|
|||||||||||||||||||||||
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||||||||||
(Dollars in thousands; unaudited)
|
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-bearing due from banks (1)
|
$ | 87,365 | $ | 222 | 0.25 | % | $ | 43,028 | $ | 143 | 0.33 | % | ||||||||||||
Federal funds sold
|
--- | --- | --- | 3,049 | 2 | 0.07 | % | |||||||||||||||||
Investment securities
|
||||||||||||||||||||||||
U.S. Government agencies (2)
|
120,118 | 3,478 | 2.90 | % | 91,869 | 3,234 | 3.52 | % | ||||||||||||||||
Corporate CMOs and other (2)
|
17,249 | 636 | 3.69 | % | 13,675 | 593 | 4.34 | % | ||||||||||||||||
Obligations of state and political subdivisions (3)
|
38,204 | 1,935 | 5.06 | % | 30,893 | 1,741 | 5.64 | % | ||||||||||||||||
Loans and banker's acceptances (1) (3) (4)
|
984,211 | 63,914 | 6.40 | % | 929,755 | 56,542 | 6.00 | % | ||||||||||||||||
Total interest-earning assets (1)
|
1,247,147 | 70,185 | 5.55 | % | 1,112,269 | 62,255 | 5.52 | % | ||||||||||||||||
Cash and non-interest-bearing due from banks
|
46,673 | 34,383 | ||||||||||||||||||||||
Bank premises and equipment, net
|
9,136 | 8,259 | ||||||||||||||||||||||
Interest receivable and other assets, net
|
34,183 | 31,262 | ||||||||||||||||||||||
Total assets
|
$ | 1,337,139 | $ | 1,186,173 | ||||||||||||||||||||
Liabilities and Stockholders' Equity
|
||||||||||||||||||||||||
Interest-bearing transaction accounts
|
$ | 125,316 | $ | 151 | 0.12 | % | $ | 98,168 | $ | 110 | 0.11 | % | ||||||||||||
Savings accounts
|
69,792 | 98 | 0.14 | % | 51,738 | 104 | 0.20 | % | ||||||||||||||||
Money market accounts
|
405,726 | 1,286 | 0.32 | % | 390,575 | 2,467 | 0.63 | % | ||||||||||||||||
CDARS® time accounts
|
39,514 | 237 | 0.60 | % | 71,432 | 842 | 1.18 | % | ||||||||||||||||
Other time accounts
|
151,866 | 1,314 | 0.87 | % | 124,631 | 1,495 | 1.20 | % | ||||||||||||||||
FHLB borrowings
|
49,722 | 2,062 | 4.15 | % | 55,002 | 1,281 | 2.33 | % | ||||||||||||||||
Subordinated debenture (1)
|
5,000 | 147 | 2.90 | % | 5,000 | 149 | 2.94 | % | ||||||||||||||||
Total interest-bearing liabilities
|
846,936 | 5,295 | 0.63 | % | 796,546 | 6,448 | 0.81 | % | ||||||||||||||||
Demand accounts
|
347,682 | 263,742 | ||||||||||||||||||||||
Interest payable and other liabilities
|
12,983 | 9,791 | ||||||||||||||||||||||
Stockholders' equity
|
129,538 | 116,094 | ||||||||||||||||||||||
Total liabilities & stockholders' equity
|
$ | 1,337,139 | $ | 1,186,173 | ||||||||||||||||||||
Tax-equivalent net interest income/margin (1)
|
$ | 64,890 | 5.13 | % | $ | 55,807 | 4.95 | % | ||||||||||||||||
Reported net interest income/margin (1)
|
$ | 63,819 | 5.05 | % | $ | 54,909 | 4.87 | % | ||||||||||||||||
Tax-equivalent net interest rate spread
|
4.92 | % | 4.71 | % |
(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.
|
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