EXHIBIT 99.1
 | ||
FOR IMMEDIATE RELEASE | CONTACT: | Sandy Pfaff |
415-819-7447 | ||
sandy@pfaffpr.com | ||
BANK OF MARIN BANCORP REPORTS RECORD SECOND QUARTER EARNINGS OF $5.0 MILLION
AND INCREASES QUARTERLY CASH DIVIDEND TO SHAREHOLDERS
NOVATO, CA, July 23, 2012 - Bank of Marin Bancorp, "Bancorp" (NASDAQ: BMRC), parent company of Bank of Marin, announced second quarter 2012 earnings of $5.0 million, up 0.2%, from $4.9 million in the first quarter of 2012, and up 44.0% from $3.4 million in the second quarter of 2011. Diluted earnings per share totaled $0.91 in the second quarter, consistent with the prior quarter, and increased $0.27 from $0.64 in the same quarter a year ago. Earnings for the six-month period ended June 30, 2012 totaled $9.9 million, up 24.4% from $7.9 million in the same period a year ago. Diluted earnings per share for the six-month period ended June 30, 2012 totaled $1.82, up $0.34, or 23.0%, from $1.48 in the same period a year ago.
“Our solid earnings are driven by our excellent credit quality, strong relationships with customers, and commitment to the community,” said Russell A. Colombo, President and CEO of Bank of Marin. “We have positioned ourselves to expand our wine industry lending by adding another experienced commercial loan officer in Sonoma County, and the appointment of a new board member from Napa, Michaela Rodeno, former CEO of St. Supery Winery."
Bancorp also provided the following highlights on its operating and financial performance for the second quarter of 2012:
• | Credit quality remains solid with net charge-offs in the second quarter of 2012 totaling $187 thousand, down $930 thousand from the prior quarter and down $2.0 million from the same quarter a year ago. |
• | Deposits totaled $1.2 billion at June 30, 2012 and March 31, 2012 and totaled $1.1 billion at June 30, 2011. Non-interest bearing deposits totaled 32.5% of total deposits at June 30, 2012. |
• | In a conscious effort to deploy excess liquidity, Bancorp grew the investment portfolio by $36.6 million (primarily government-guaranteed mortgage-backed and collateralized mortgage obligation securities, as well as corporate bonds) in the second quarter of 2012. |
• | Total risk-based capital ratio for Bancorp grew to 13.9%, up from 13.6% at March 31, 2012 and 13.0% at June 30, 2011, and continues to be well above industry requirements for a well-capitalized institution. |
• | Loans in Napa increased $4.7 million, or 8.1%, in the second quarter of 2012, excluding $1.9 million in problem loan payoffs. |
• | Michaela Rodeno was appointed as Bancorp's new board member on July 2, 2012. Rodeno, former CEO of St. Supery Winery and former board member of Silicon Valley Bank, brings 40 years of business and wine industry knowledge to the board. |
• | On July 19, 2012, the Board of Directors declared a quarterly cash dividend of $0.18 per share, a $0.01 increase from the prior quarter. The cash dividend is payable to shareholders of record at the close of business on August 2, 2012 and will be payable on August 10, 2012. |
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Loans and Credit Quality
Gross loans totaled $1.0 billion at June 30, 2012 and March 31, 2012 and totaled $986.6 million at June 30, 2011. Non-performing loans totaled $14.3 million, or 1.40%, of Bancorp's loan portfolio at June 30, 2012, relatively unchanged from $14.4 million, or 1.40%, at March 31, 2012 and up from $8.7 million, or 0.88%, a year ago. Accruing loans past due 30 to 89 days totaled $9.8 million at June 30, 2012, compared to $1.8 million at March 31, 2012 and $763 thousand a year ago. The increase in past due loans in the second quarter of 2012 primarily relates to two loans which are adequately collateralized, and no significant loss exposure is expected.
The provision for loan losses totaled $100 thousand in the second quarter of 2012, an increase of $100 thousand from the prior quarter, and a decrease of $2.9 million from the same quarter a year ago. Bancorp's loan loss provision totaled $100 thousand and $4.1 million in the first half of 2012 and 2011, respectively. The decreases in the second quarter and first half of 2012 compared to the same periods a year ago are due to a limited number of newly identified problem loans that have credit loss exposure. The allowance for loan losses totaled 1.31% of loans at June 30, 2012 and March 31, 2012, compared to 1.41% at June 30, 2011. Net charge-offs in the second quarter of 2012 totaled $187 thousand, compared to $1.1 million in the prior quarter and $2.1 million in the second quarter of 2011. Net charge-offs in the first half of 2012 and 2011 totaled $1.3 million and $2.5 million, respectively.
Deposits
Deposits totaled $1.2 billion at June 30, 2012 and March 31, 2012, and grew $91.8 million, or 8.1%, over a year ago. Non-interest bearing deposits comprised 32.5% of total deposits at June 30, 2012, compared to 32.9% at March 31, 2012 and 30.4% a year ago. Second quarter activity reflects a $25 million decline related to one customer who relies on funding from the Federal Government and experienced a modification in their payment and reimbursement process.
Earnings
Net interest income totaled $16.3 million in the second quarter of 2012 and remained relatively unchanged from the prior quarter, and decreased $722 thousand, or 4.2%, from the same quarter last year. Net interest income for the first half of 2012 totaled $32.5 million, representing a decrease of $399 thousand, or 1.2%, from the same period a year ago. The tax-equivalent net interest margin was 4.94% in the second quarter of 2012, compared to 4.97% in the prior quarter and 5.51% in the same quarter a year ago. The tax-equivalent net interest margin was 4.96% in the first half of 2012 compared to 5.48% in the first half of 2011. The decreases in the second quarter and first half of 2012 compared to the same periods a year ago primarily relate to a lower level of gains on pay-offs of purchased credit-impaired ("PCI") loans and a lower level of accretion on purchased non-credit impaired loans. The decreases are partially offset by a reduction in the cost of interest-bearing liabilities due to the low interest rate environment and the pay-off of two higher costing borrowings.
"Our continued high level of financial performance and the confidence our management has in the Bank drove our decision to increase our cash dividend to shareholders this quarter," said Chris Cook, Chief Financial Officer. "We also proactively deployed some of our excess liquidity through the purchase of investment securities."
Accretion and gains on pay-offs of purchased loans recorded to interest income were as follows:
Three months ended | Six months ended | ||||||
(dollars in thousands; unaudited) | 6/30/2012 | 3/31/2012 | 6/30/2011 | 6/30/2012 | 6/30/2011 | ||
Accretion on PCI loans | $478 | $510 | $291 | $988 | $367 | ||
Accretion on non-PCI loans | $311 | $203 | $887 | $514 | $2,211 | ||
Gains on pay-offs of PCI loans | $69 | $522 | $1,222 | $591 | $1,222 | ||
Accretion on PCI loans fluctuates based on changes in cash flows expected to be collected. For acquired loans not considered credit-impaired, the level of accretion varies due to maturities and early pay-offs of these loans. Gains on pay-offs of PCI loans are recorded when the pay-off amounts exceed the recorded investment.
2
Non-interest income in the second quarter of 2012 totaled $1.8 million, compared to $1.7 million in the prior quarter and $1.6 million from the same quarter a year ago. Non-interest income totaled $3.5 million for the first half of 2012, an increase of $315 thousand, or 9.9% from the first half of 2011. The increase primarily relates to higher service charges on deposit accounts, merchant interchange income and debit card interchange fees.
Non-interest expense totaled $9.7 million in the second quarter of 2012, and remained relatively consistent with the prior quarter. Non-interest expense decreased $313 thousand, or 3.1%, from the same quarter a year ago, primarily relating to lower acquisition-related data processing and professional service costs. Non-interest expense totaled $19.5 million and $19.1 million in the first half of 2012 and 2011, respectively, representing a 2.0% increase. The increase primarily reflects higher personnel costs associated with merit increases.
About Bank of Marin Bancorp
Bank of Marin, as the sole subsidiary of Bank of Marin Bancorp (NASDAQ: BMRC), is the premier community and business bank in Marin County with 17 offices in Marin, San Francisco, Napa and Sonoma counties. Bank of Marin offers business and personal banking, private banking and wealth management services, with a strong focus on supporting local businesses in the community. Incorporated in 1989, Bank of Marin has received the highest five star rating from Bauer Financial for more than twelve years (www.bauerfinancial.com) and has been recognized for several years as one of the "Best Places to Work in the Bay Area" and one of the "Top Corporate Philanthropists" by the San Francisco Business Times. With assets exceeding $1.4 billion, Bank of Marin Bancorp is included in the Russell 2000 Small-Cap Index and has been recognized as a Top 200 Community Bank for the past five years by US Banker Magazine. For more information, visit 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, the economic downturn in the United States and abroad, changes in interest rates, deposit flows, real estate values, expected future cash flows on acquired loans, and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors 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.
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BANK OF MARIN BANCORP | |||||||||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||||||||
Year To Year Comparison | |||||||||||||||||||
June 30, 2012 | |||||||||||||||||||
(dollars in thousands, except per share data; unaudited) | |||||||||||||||||||
SECOND QUARTER | QTD 2012 | QTD 2011 | CHANGE | % CHANGE | |||||||||||||||
NET INCOME | $ | 4,951 | $ | 3,439 | $ | 1,512 | 44.0 | % | |||||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.91 | $ | 0.64 | $ | 0.27 | 42.2 | % | |||||||||||
RETURN ON AVERAGE ASSETS (ROA) | 1.39 | % | 1.04 | % | 0.35 | % | 33.7 | % | |||||||||||
RETURN ON AVERAGE EQUITY (ROE) | 14.01 | % | 10.78 | % | 3.23 | % | 30.0 | % | |||||||||||
EFFICIENCY RATIO | 53.56 | % | 53.80 | % | (0.24 | ) | % | (0.4 | ) | % | |||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 4.94 | % | 5.51 | % | (0.57 | ) | % | (10.3 | ) | % | |||||||||
NET CHARGE-OFFS | $ | 187 | $ | 2,149 | $ | (1,962 | ) | (91.3 | ) | % | |||||||||
NET CHARGE-OFFS TO AVERAGE LOANS | 0.02 | % | 0.22 | % | (0.20 | ) | % | (90.9 | ) | % | |||||||||
YEAR-TO-DATE | YTD 2012 | YTD 2011 | CHANGE | % CHANGE | |||||||||||||||
NET INCOME | $ | 9,891 | $ | 7,948 | $ | 1,943 | 24.4 | % | |||||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 1.82 | $ | 1.48 | $ | 0.34 | 23.0 | % | |||||||||||
RETURN ON AVERAGE ASSETS (ROA) | 1.40 | % | 1.23 | % | 0.17 | % | 13.8 | % | |||||||||||
RETURN ON AVERAGE EQUITY (ROE) | 14.20 | % | 12.72 | % | 1.48 | % | 11.6 | % | |||||||||||
EFFICIENCY RATIO | 54.26 | % | 53.04 | % | 1.22 | % | 2.3 | % | |||||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 4.96 | % | 5.48 | % | (0.52 | ) | % | (9.5 | ) | % | |||||||||
NET CHARGE-OFFS | $ | 1,304 | $ | 2,522 | $ | (1,218 | ) | (48.3 | ) | % | |||||||||
NET CHARGE-OFFS TO AVERAGE LOANS | 0.13 | % | 0.26 | % | (0.13 | ) | % | (50.0 | ) | % | |||||||||
AT PERIOD END | June 30, 2012 | June 30, 2011 | CHANGE | % CHANGE | |||||||||||||||
TOTAL ASSETS | $ | 1,407,000 | $ | 1,337,393 | $ | 69,607 | 5.2 | % | |||||||||||
LOANS: | |||||||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 176,002 | $ | 177,255 | $ | (1,253 | ) | (0.7 | ) | % | |||||||||
REAL ESTATE | |||||||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 172,757 | $ | 164,990 | $ | 7,767 | 4.7 | % | |||||||||||
COMMERCIAL INVESTOR-OWNED | $ | 453,456 | $ | 390,549 | $ | 62,907 | 16.1 | % | |||||||||||
CONSTRUCTION | $ | 47,948 | $ | 66,504 | $ | (18,556 | ) | (27.9 | ) | % | |||||||||
HOME EQUITY | $ | 98,565 | $ | 95,212 | $ | 3,353 | 3.5 | % | |||||||||||
OTHER RESIDENTIAL | $ | 55,316 | $ | 66,886 | $ | (11,570 | ) | (17.3 | ) | % | |||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 21,150 | $ | 25,238 | $ | (4,088 | ) | (16.2 | ) | % | |||||||||
TOTAL LOANS | $ | 1,025,194 | $ | 986,634 | $ | 38,560 | 3.9 | % | |||||||||||
NON-PERFORMING LOANS2: | |||||||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 1,751 | $ | 3,669 | $ | (1,918 | ) | (52.3 | ) | % | |||||||||
REAL ESTATE | |||||||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 1,403 | $ | 293 | $ | 1,110 | 378.8 | % | |||||||||||
COMMERCIAL INVESTOR-OWNED | $ | 5,961 | $ | — | $ | 5,961 | NM | ||||||||||||
CONSTRUCTION | $ | 2,821 | $ | 3,263 | $ | (442 | ) | (13.5 | ) | % | |||||||||
HOME EQUITY | $ | 981 | $ | 710 | $ | 271 | 38.2 | % | |||||||||||
OTHER RESIDENTIAL | $ | 740 | $ | 138 | $ | 602 | 436.2 | % | |||||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 690 | $ | 621 | $ | 69 | 11.1 | % | |||||||||||
TOTAL NON-PERFORMING LOANS | $ | 14,347 | $ | 8,694 | $ | 5,653 | 65.0 | % | |||||||||||
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE | $ | 9,837 | $ | 763 | $ | 9,074 | 1,189.3 | % | |||||||||||
LOAN LOSS RESERVE TO LOANS | 1.31 | % | 1.41 | % | (0.10 | ) | % | (7.1 | ) | % | |||||||||
LOAN LOSS RESERVE TO NON-PERFORMING LOANS | 0.94 | x | 1.60 | x | (0.66 | ) | x | (41.3 | ) | % | |||||||||
NON-PERFORMING LOANS TO TOTAL LOANS | 1.40 | % | 0.88 | % | 0.52 | % | 59.1 | % | |||||||||||
TEXAS RATIO3 | 9.14 | % | 6.11 | % | 3.03 | % | 49.6 | % | |||||||||||
TOTAL DEPOSITS | $ | 1,230,717 | $ | 1,138,906 | $ | 91,811 | 8.1 | % | |||||||||||
LOAN TO DEPOSIT RATIO | 83.3 | % | 86.6 | % | (3.3 | ) | % | (3.8 | ) | % | |||||||||
STOCKHOLDERS' EQUITY | $ | 144,326 | $ | 129,058 | $ | 15,268 | 11.8 | % | |||||||||||
BOOK VALUE PER SHARE | $ | 26.92 | $ | 24.25 | $ | 2.67 | 11.0 | % | |||||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS4 | 10.26 | % | 9.60 | % | 0.66 | % | 6.9 | % | |||||||||||
TOTAL RISK BASED CAPITAL RATIO-BANK5 | 13.6 | % | 12.6 | % | 1.0 | % | 7.9 | % | |||||||||||
TOTAL RISK BASED CAPITAL RATIO-BANCORP5 | 13.9 | % | 13.0 | % | 0.9 | % | 6.9 | % | |||||||||||
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 $25.2 million and $1.5 million at June 30, 2012 and 2011, respectively. Excludes purchased credit-impaired (PCI) loans with carrying values of $3.1 million and $7.2 million that were accreting interest at June 30, 2012 and 2011, 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 $4.7 million and $7.9 million at June 30, 2012 and 2011, respectively. | |||||||||||||||||||
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, less intangible assets. Tangible assets exclude core deposit intangibles totaling zero at June 30, 2012 and $707 thousand at June 30, 2011. | |||||||||||||||||||
5 Current period estimated. | |||||||||||||||||||
4
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CONDITION |
at June 30, 2012, March 31, 2012 and June 30, 2011 |
(in thousands, except share data; unaudited) | June 30, 2012 | March 31, 2012 | June 30, 2011 | ||||||||
Assets | |||||||||||
Cash and due from banks | $ | 98,321 | $ | 139,827 | $ | 88,043 | |||||
Short-term investments | — | 2,012 | 22,116 | ||||||||
Cash and cash equivalents | 98,321 | 141,839 | 110,159 | ||||||||
Investment securities | |||||||||||
Held to maturity, at amortized cost | 83,134 | 73,912 | 35,514 | ||||||||
Available for sale (at fair market value; amortized cost $159,024, $131,621 and $164,731 at June 30, 2012, March 31, 2012 and June 30, 2011, respectively | 161,803 | 134,443 | 167,406 | ||||||||
Total investment securities | 244,937 | 208,355 | 202,920 | ||||||||
Loans, net of allowance for loan losses of $13,435, $13,522 and $13,920 at June 30, 2012, March 31, 2012 and June 30, 2011, respectively | 1,011,759 | 1,018,685 | 972,714 | ||||||||
Bank premises and equipment, net | 9,074 | 9,183 | 9,280 | ||||||||
Interest receivable and other assets | 42,909 | 43,222 | 42,320 | ||||||||
Total assets | $ | 1,407,000 | $ | 1,421,284 | $ | 1,337,393 | |||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities | |||||||||||
Deposits | |||||||||||
Non-interest bearing | $ | 399,835 | $ | 409,409 | $ | 346,317 | |||||
Interest bearing | |||||||||||
Transaction accounts | 149,822 | 153,244 | 133,429 | ||||||||
Savings accounts | 86,590 | 82,151 | 72,458 | ||||||||
Money market accounts | 423,682 | 426,175 | 403,782 | ||||||||
CDARS® time accounts | 27,297 | 31,562 | 31,674 | ||||||||
Other time accounts | 143,491 | 143,100 | 151,246 | ||||||||
Total deposits | 1,230,717 | 1,245,641 | 1,138,906 | ||||||||
Federal Home Loan Bank borrowings | 15,000 | 15,000 | 55,000 | ||||||||
Subordinated debenture | 5,000 | 5,000 | 5,000 | ||||||||
Interest payable and other liabilities | 11,957 | 15,622 | 9,429 | ||||||||
Total liabilities | 1,262,674 | 1,281,263 | 1,208,335 | ||||||||
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 - 5,362,222, 5,348,659 and 5,321,227 at June 30, 2012, March 31, 2012 and June 30, 2011, respectively | 57,543 | 57,254 | 56,265 | ||||||||
Retained earnings | 85,171 | 81,130 | 71,241 | ||||||||
Accumulated other comprehensive income, net | 1,612 | 1,637 | 1,552 | ||||||||
Total stockholders' equity | 144,326 | 140,021 | 129,058 | ||||||||
Total liabilities and stockholders' equity | $ | 1,407,000 | $ | 1,421,284 | $ | 1,337,393 | |||||
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BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
Three months ended | Six months ended | ||||||||||||||||||
(in thousands, except per share amounts; unaudited) | June 30, 2012 | March 31, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | ||||||||||||||
Interest income | |||||||||||||||||||
Interest and fees on loans | $ | 15,324 | $ | 15,328 | $ | 16,862 | $ | 30,652 | $ | 32,762 | |||||||||
Interest on investment securities | |||||||||||||||||||
Securities of U.S. Government agencies | 817 | 967 | 745 | 1,784 | 1,478 | ||||||||||||||
Obligations of state and political subdivisions | 455 | 387 | 303 | 842 | 605 | ||||||||||||||
Corporate debt securities and other | 285 | 201 | 171 | 486 | 282 | ||||||||||||||
Interest on Federal funds sold and short-term investments | 56 | 50 | 56 | 106 | 96 | ||||||||||||||
Total interest income | 16,937 | 16,933 | 18,137 | 33,870 | 35,223 | ||||||||||||||
Interest expense | |||||||||||||||||||
Interest on interest bearing transaction accounts | 45 | 44 | 48 | 89 | 86 | ||||||||||||||
Interest on savings accounts | 24 | 22 | 25 | 46 | 54 | ||||||||||||||
Interest on money market accounts | 180 | 183 | 341 | 363 | 678 | ||||||||||||||
Interest on CDARS® time accounts | 21 | 32 | 48 | 53 | 142 | ||||||||||||||
Interest on other time accounts | 269 | 304 | 315 | 573 | 673 | ||||||||||||||
Interest on borrowed funds | 117 | 147 | 357 | 264 | 709 | ||||||||||||||
Total interest expense | 656 | 732 | 1,134 | 1,388 | 2,342 | ||||||||||||||
Net interest income | 16,281 | 16,201 | 17,003 | 32,482 | 32,881 | ||||||||||||||
Provision for loan losses | 100 | — | 3,000 | 100 | 4,050 | ||||||||||||||
Net interest income after provision for loan losses | 16,181 | 16,201 | 14,003 | 32,382 | 28,831 | ||||||||||||||
Non-interest income | |||||||||||||||||||
Service charges on deposit accounts | 549 | 524 | 468 | 1,073 | 911 | ||||||||||||||
Wealth Management and Trust Services | 488 | 456 | 469 | 944 | 903 | ||||||||||||||
Debit card interchange fees | 259 | 234 | 203 | 493 | 391 | ||||||||||||||
Merchant interchange fees | 186 | 193 | 159 | 379 | 265 | ||||||||||||||
Earnings on Bank-owned life Insurance | 192 | 188 | 193 | 380 | 362 | ||||||||||||||
Other income | 126 | 100 | 89 | 226 | 348 | ||||||||||||||
Total non-interest income | 1,800 | 1,695 | 1,581 | 3,495 | 3,180 | ||||||||||||||
Non-interest expense | |||||||||||||||||||
Salaries and related benefits | 5,314 | 5,604 | 5,220 | 10,918 | 10,149 | ||||||||||||||
Occupancy and equipment | 1,056 | 987 | 1,093 | 2,043 | 2,000 | ||||||||||||||
Depreciation and amortization | 341 | 341 | 314 | 682 | 622 | ||||||||||||||
Federal Deposit Insurance Corporation insurance | 218 | 233 | 214 | 451 | 601 | ||||||||||||||
Data processing | 660 | 606 | 909 | 1,266 | 1,491 | ||||||||||||||
Professional services | 516 | 585 | 740 | 1,101 | 1,473 | ||||||||||||||
Other expense | 1,580 | 1,479 | 1,508 | 3,059 | 2,792 | ||||||||||||||
Total non-interest expense | 9,685 | 9,835 | 9,998 | 19,520 | 19,128 | ||||||||||||||
Income before provision for income taxes | 8,296 | 8,061 | 5,586 | 16,357 | 12,883 | ||||||||||||||
Provision for income taxes | 3,345 | 3,121 | 2,147 | 6,466 | 4,935 | ||||||||||||||
Net income | $ | 4,951 | $ | 4,940 | $ | 3,439 | $ | 9,891 | $ | 7,948 | |||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | 0.93 | $ | 0.93 | $ | 0.65 | $ | 1.86 | $ | 1.50 | |||||||||
Diluted | $ | 0.91 | $ | 0.91 | $ | 0.64 | $ | 1.82 | $ | 1.48 | |||||||||
Weighted average shares used to compute net income per common share: | |||||||||||||||||||
Basic | 5,337 | 5,326 | 5,300 | 5,331 | 5,292 | ||||||||||||||
Diluted | 5,419 | 5,425 | 5,385 | 5,422 | 5,376 | ||||||||||||||
Dividends declared per common share | $ | 0.17 | $ | 0.17 | $ | 0.16 | $ | 0.34 | $ | 0.32 | |||||||||
Comprehensive income | |||||||||||||||||||
Net income | $ | 4,951 | $ | 4,940 | $ | 3,439 | $ | 9,891 | $ | 7,948 | |||||||||
Other comprehensive (loss) income | |||||||||||||||||||
Change in net unrealized gain on available for sale securities | (39 | ) | 28 | 1,068 | (11 | ) | 10 | ||||||||||||
Reclassification adjustment for (gain) losses included in net income | (4 | ) | 38 | — | 34 | — | |||||||||||||
Net change in unrealized gain on available for sale securities, before tax | (43 | ) | 66 | 1,068 | 23 | 10 | |||||||||||||
Deferred tax (benefit) expense | (18 | ) | 28 | 449 | 10 | 4 | |||||||||||||
Other comprehensive (loss) income, net of tax | (25 | ) | 38 | 619 | 13 | 6 | |||||||||||||
Comprehensive income | $ | 4,926 | $ | 4,978 | $ | 4,058 | $ | 9,904 | $ | 7,954 | |||||||||
6
BANK OF MARIN BANCORP |
AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST INCOME |
Three months ended | Three months ended | Three months ended | |||||||||||||||||||||||
June 30, 2012 | March 31, 2012 | June 30, 2011 | |||||||||||||||||||||||
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 | $ | 70,003 | $ | 56 | 0.32 | % | $ | 87,101 | $ | 50 | 0.23 | % | $ | 89,952 | $ | 56 | 0.25 | % | |||||||
Investment Securities 2, 3 | 230,609 | 1,750 | 3.04 | % | 198,243 | 1,722 | 3.47 | % | 168,444 | 1,376 | 3.27 | % | |||||||||||||
Loans and banker's acceptances 1, 3, 4 | 1,028,761 | 15,466 | 5.95 | % | 1,028,573 | 15,473 | 5.95 | % | 979,550 | 16,955 | 6.85 | % | |||||||||||||
Total interest-earning assets 1 | 1,329,373 | 17,272 | 5.14 | % | 1,313,917 | 17,245 | 5.19 | % | 1,237,946 | 18,387 | 5.88 | % | |||||||||||||
Cash and non-interest-bearing due from banks | 53,269 | 52,011 | 45,133 | ||||||||||||||||||||||
Bank premises and equipment, net | 9,136 | 9,383 | 8,971 | ||||||||||||||||||||||
Interest receivable and other assets, net | 35,813 | 34,808 | 38,391 | ||||||||||||||||||||||
Total assets | $ | 1,427,591 | $ | 1,410,119 | $ | 1,330,441 | |||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 147,463 | $ | 45 | 0.12 | % | $ | 143,159 | $ | 44 | 0.12 | % | $ | 127,544 | $ | 48 | 0.15 | % | |||||||
Savings accounts | 85,118 | 24 | 0.11 | % | 78,831 | 22 | 0.11 | % | 69,357 | 25 | 0.14 | % | |||||||||||||
Money market accounts | 431,625 | 180 | 0.17 | % | 436,333 | 183 | 0.17 | % | 395,159 | 341 | 0.35 | % | |||||||||||||
CDARS® time accounts | 28,045 | 21 | 0.30 | % | 40,091 | 32 | 0.32 | % | 31,879 | 48 | 0.60 | % | |||||||||||||
Other time accounts | 142,189 | 269 | 0.76 | % | 149,228 | 304 | 0.82 | % | 156,008 | 315 | 0.81 | % | |||||||||||||
FHLB fixed-rate advances 1 | 15,000 | 78 | 2.07 | % | 19,835 | 107 | 2.13 | % | 55,000 | 320 | 2.33 | % | |||||||||||||
Subordinated debenture 1 | 5,000 | 39 | 3.09 | % | 5,000 | 40 | 3.16 | % | 5,000 | 37 | 2.93 | % | |||||||||||||
Total interest-bearing liabilities | 854,440 | 656 | 0.31 | % | 872,477 | 732 | 0.34 | % | 839,947 | 1,134 | 0.54 | % | |||||||||||||
Demand accounts | 417,354 | 384,774 | 346,469 | ||||||||||||||||||||||
Interest payable and other liabilities | 13,646 | 14,814 | 16,062 | ||||||||||||||||||||||
Stockholders' equity | 142,151 | 138,054 | 127,963 | ||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,427,591 | $ | 1,410,119 | $ | 1,330,441 | |||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 16,616 | 4.94 | % | $ | 16,513 | 4.97 | % | $ | 17,253 | 5.51 | % | |||||||||||||
Reported net interest income/margin 1 | $ | 16,281 | 4.85 | % | $ | 16,201 | 4.88 | % | $ | 17,003 | 5.43 | % | |||||||||||||
Tax-equivalent net interest rate spread | 4.83 | % | 4.85 | % | 5.34 | % | |||||||||||||||||||
Six months ended | Six months ended | ||||||||||||||||||||||||
June 30, 2012 | June 30, 2011 | ||||||||||||||||||||||||
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 | $ | 78,552 | $ | 106 | 0.27 | % | $ | 76,240 | $ | 96 | 0.25 | % | |||||||||||||
Investment Securities 2, 3 | 214,426 | 3,472 | 3.24 | % | 155,764 | 2,681 | 3.44 | % | |||||||||||||||||
Loans and banker's acceptances 1, 3, 4 | 1,028,667 | 30,939 | 5.95 | % | 979,611 | 32,943 | 6.69 | % | |||||||||||||||||
Total interest-earning assets 1 | 1,321,645 | 34,517 | 5.17 | % | 1,211,615 | 35,720 | 5.86 | % | |||||||||||||||||
Cash and non-interest-bearing due from banks | 52,640 | 43,763 | |||||||||||||||||||||||
Bank premises and equipment, net | 9,260 | 8,721 | |||||||||||||||||||||||
Interest receivable and other assets, net | 35,310 | 34,915 | |||||||||||||||||||||||
Total assets | $ | 1,418,855 | $ | 1,299,014 | |||||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 145,311 | $ | 89 | 0.12 | % | $ | 121,340 | $ | 86 | 0.14 | % | |||||||||||||
Savings accounts | 81,974 | 46 | 0.11 | % | 65,984 | 54 | 0.17 | % | |||||||||||||||||
Money market accounts | 433,979 | 363 | 0.17 | % | 389,011 | 678 | 0.35 | % | |||||||||||||||||
CDARS® time accounts | 34,068 | 53 | 0.31 | % | 43,093 | 142 | 0.66 | % | |||||||||||||||||
Other time accounts | 145,709 | 573 | 0.79 | % | 156,815 | 673 | 0.87 | % | |||||||||||||||||
FHLB fixed-rate advances 1 | 17,418 | 185 | 2.10 | % | 56,956 | 636 | 2.25 | % | |||||||||||||||||
Subordinated debenture 1 | 5,000 | 79 | 3.13 | % | 5,000 | 73 | 2.90 | % | |||||||||||||||||
Total interest-bearing liabilities | 863,459 | 1,388 | 0.32 | % | 838,199 | 2,342 | 0.56 | % | |||||||||||||||||
Demand accounts | 401,063 | 322,406 | |||||||||||||||||||||||
Interest payable and other liabilities | 14,230 | 12,369 | |||||||||||||||||||||||
Stockholders' equity | 140,103 | 126,040 | |||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,418,855 | $ | 1,299,014 | |||||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 33,129 | 4.96 | % | $ | 33,378 | 5.48 | % | |||||||||||||||||
Reported net interest income/margin 1 | $ | 32,482 | 4.86 | % | $ | 32,881 | 5.40 | % | |||||||||||||||||
Tax-equivalent net interest rate spread | 4.85 | % | 5.30 | % | |||||||||||||||||||||
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. | |||||||||||||||||||||||||
7