California | 20-8859754 | |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) | |
504 Redwood Blvd., Suite 100, Novato, CA | 94947 | |
(Address of principal executive office) | (Zip Code) |
Check the appropriate box below if the Form 8-K filing is to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |
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 |
Item 8.01 | Other Events |
Item 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
99.1 | Press Release dated January 27, 2014. |
Dated: January 27, 2014 | BANK OF MARIN BANCORP | |
by: | /s/ Tani Girton | |
Tani Girton | ||
Executive Vice President | ||
and Chief Financial Officer | ||
EXHIBIT INDEX | ||
Exhibit No. | Description | Page Number |
99.1 | Press Release dated January 27, 2014 | 1-9 |
![]() | ||
FOR IMMEDIATE RELEASE | CONTACT: | Sandy Pfaff |
415-819-7447 | ||
sandy@pfaffpr.com |
• | Credit quality improved with non-accrual loans representing 0.92% of total loans at December 31, 2013, down from 1.58% last quarter and 1.64% from a year ago. Net recoveries for the fourth quarter totaled $266 thousand, compared to net charge-offs of $68 thousand in the prior quarter and net charge-offs of $178 thousand in the same quarter a year ago. Net recoveries for the year ended December 31, 2013 totaled $24 thousand, compared to net charge-offs totaling $3.9 million in the prior year. |
• | Deposits totaled $1.6 billion at December 31, 2013, compared to $1.3 billion at both September 30, 2013 and December 31, 2012. Based on December 31, 2013 balances, the increase reflects $245.5 million in deposits acquired from Bank of Alameda. Non-interest bearing deposits totaled 40.8% of total deposits as of December 31, 2013, compared to 41.6% at the prior quarter-end and 31.1% at December 31, 2012. |
• | The total risk-based capital ratio for Bancorp was 13.1% at December 31, 2013 compared to 14.1% at September 30, 2013 and 13.7% at December 31, 2012. The ratio fell due to the addition of $10.7 million in goodwill and intangibles related to the Acquisition, which are excluded from regulatory capital. The risk-based capital ratio continues to be well above regulatory requirements for a well-capitalized institution. |
• | On January 23, 2014, the Board of Directors declared a quarterly cash dividend of $0.19 per share. The cash dividend is payable to shareholders of record at the close of business on February 7, 2014 and will be payable on February 14, 2014. |
Three months ended | ||||||||||||||
December 31, 2013 | September 30, 2013 | December 31, 2012 | ||||||||||||
(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 | $ | 161 | 4 bps | $ | 154 | 4 bps | $ | 423 | 12 bps | |||||
Accretion on non-PCI loans | $ | 571 | 14 bps | $ | 214 | 6 bps | $ | 42 | 1 bps | |||||
Gains on pay-offs of PCI loans | $ | — | 0 bps | $ | — | 0 bps | $ | 1,022 | 29 bps | |||||
Years ended | |||||||||
December 31, 2013 | December 31, 2012 | ||||||||
(dollars in thousands; unaudited) | Dollar Amount | Basis point impact to net interest margin | Dollar Amount | Basis point impact to net interest margin | |||||
Accretion on PCI loans | $ | 706 | 5 bps | $ | 1,641 | 12 bps | |||
Accretion on non-PCI loans | $ | 1,163 | 8 bps | $ | 789 | 6 bps | |||
Gains on pay-offs of PCI loans | $ | 469 | 3 bps | $ | 1,714 | 13 bps | |||
(Dollars in thousands, unaudited) | Three months ended December 31, 2013 | Three months ended September 30, 2013 | Year Ended December 31, 2013 | |||||||||
Data processing* | $ | 2,807 | $ | — | $ | 2,807 | ||||||
Professional services | 289 | 243 | 660 | |||||||||
Personnel severance | 203 | — | 203 | |||||||||
Other | 73 | 1 | 74 | |||||||||
Total | $ | 3,372 | $ | 244 | $ | 3,744 | ||||||
*Primarily relates to NorCal's core processing system contract termination and deconversion fees. |
(Dollars in thousands, unaudited) | Acquisition Date November 29, 2013 | ||
Assets: | |||
Cash and cash equivalents | $ | 31,804 | |
Investment securities | 53,731 | ||
Loans | 173,759 | ||
Core deposit intangible | 4,572 | ||
Deferred tax asset | 4,359 | ||
Goodwill | 6,190 | ||
Bank premises and equipment | 203 | ||
Other assets | 6,299 | ||
Total assets acquired | $ | 280,917 | |
Liabilities: | |||
Deposits: | |||
Non-interest bearing | $ | 69,123 | |
Interest bearing | |||
Transaction accounts | 57,337 | ||
Savings accounts | 10,835 | ||
Money market accounts | 81,464 | ||
Other time accounts | 22,267 | ||
Total deposits | 241,026 | ||
Junior subordinated debentures | 4,950 | ||
Other liabilities | 408 | ||
Total liabilities assumed | $ | 246,384 | |
Merger consideration (cash payment of $16.019 million and $18.514 million in stock) | $ | 34,533 |
(Dollars in thousands, unaudited) | Acquisition Date November 29, 2013 | |||
Book value of net assets acquired from NorCal | $ | 25,797 | ||
Fair value adjustments: | ||||
Loans | (3,462) | |||
Junior subordinated debentures | 3,298 | |||
Core deposit intangible asset | 4,572 | |||
Time deposits | (14) | |||
Total purchase accounting adjustments | 4,394 | |||
Deferred tax liabilities (tax effect of purchase accounting adjustments at 42.05%) | (1,848) | |||
Fair value of net assets acquired from NorCal | 28,343 | |||
Merger consideration | 34,533 | |||
Less: fair value of net assets acquired | (28,343) | |||
Goodwill | $ | 6,190 |
BANK OF MARIN BANCORP | ||||||||||||||||
FINANCIAL HIGHLIGHTS | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
(dollars in thousands, except per share data; unaudited) | Dec. 31, 2013 | Sept. 30, 2013 | Dec. 31, 2012 | |||||||||||||
QUARTER-TO-DATE | ||||||||||||||||
NET INCOME | $ | 2,345 | $ | 4,004 | $ | 4,702 | ||||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.41 | $ | 0.72 | $ | 0.86 | ||||||||||
RETURN ON AVERAGE ASSETS (ROA) | 0.57 | % | 1.07 | % | 1.28 | % | ||||||||||
RETURN ON AVERAGE EQUITY (ROE) | 5.47 | % | 9.91 | % | 12.50 | % | ||||||||||
EFFICIENCY RATIO | 78.39 | % | 63.19 | % | 54.42 | % | ||||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 4.05 | % | 3.99 | % | 4.62 | % | ||||||||||
NET (RECOVERIES)/CHARGE-OFFS | $ | (266 | ) | $ | 68 | $ | 178 | |||||||||
NET (RECOVERIES) CHARGE-OFFS TO AVERAGE LOANS | (0.02 | ) | % | 0.01 | % | 0.02 | % | |||||||||
YEAR-TO-DATE | ||||||||||||||||
NET INCOME | $ | 14,270 | $ | 17,817 | ||||||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 2.57 | $ | 3.28 | ||||||||||||
RETURN ON AVERAGE ASSETS (ROA) | 0.96 | % | 1.24 | % | ||||||||||||
RETURN ON AVERAGE EQUITY (ROE) | 8.86 | % | 12.36 | % | ||||||||||||
EFFICIENCY RATIO | 65.97 | % | 55.04 | % | ||||||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 4.20 | % | 4.74 | % | ||||||||||||
NET (RECOVERIES)/CHARGE-OFFS | $ | (24 | ) | $ | 3,878 | |||||||||||
NET CHARGE-OFFS TO AVERAGE LOANS | — | % | 0.38 | % | ||||||||||||
AT PERIOD END | ||||||||||||||||
TOTAL ASSETS | $ | 1,805,194 | $ | 1,483,603 | $ | 1,434,749 | ||||||||||
LOANS: | ||||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 183,291 | $ | 168,840 | $ | 176,431 | ||||||||||
REAL ESTATE | ||||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 241,113 | $ | 206,173 | $ | 196,406 | ||||||||||
COMMERCIAL INVESTOR-OWNED | $ | 625,019 | $ | 547,337 | $ | 509,006 | ||||||||||
CONSTRUCTION | $ | 31,577 | $ | 24,993 | $ | 30,665 | ||||||||||
HOME EQUITY | $ | 98,469 | $ | 86,204 | $ | 93,237 | ||||||||||
OTHER RESIDENTIAL | $ | 72,634 | $ | 43,572 | $ | 49,432 | ||||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 17,219 | $ | 15,732 | $ | 18,775 | ||||||||||
TOTAL LOANS | $ | 1,269,322 | $ | 1,092,851 | $ | 1,073,952 | ||||||||||
NON-ACCRUAL LOANS2: | ||||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 1,187 | $ | 1,229 | $ | 4,893 | ||||||||||
REAL ESTATE | ||||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 1,403 | $ | 1,403 | $ | 1,403 | ||||||||||
COMMERCIAL INVESTOR-OWNED | $ | 2,807 | $ | 5,832 | $ | 6,843 | ||||||||||
CONSTRUCTION | $ | 5,218 | $ | 7,045 | $ | 2,239 | ||||||||||
HOME EQUITY | $ | 234 | $ | 359 | $ | 545 | ||||||||||
OTHER RESIDENTIAL | $ | 660 | $ | 1,117 | $ | 1,196 | ||||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 169 | $ | 311 | $ | 533 | ||||||||||
TOTAL NON-ACCRUAL LOANS | $ | 11,678 | $ | 17,296 | $ | 17,652 | ||||||||||
CLASSIFIED LOANS (GRADED SUBSTANDARD & DOUBTFUL) | $ | 31,140 | $ | 30,913 | $ | 36,916 | ||||||||||
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE | $ | 995 | $ | 2,213 | $ | 588 | ||||||||||
LOAN LOSS RESERVE TO LOANS | 1.12 | % | 1.26 | % | 1.27 | % | ||||||||||
LOAN LOSS RESERVE TO NON-ACCRUAL LOANS | 1.22 | x | 0.80 | x | 0.77 | x | ||||||||||
NON-ACCRUAL LOANS TO TOTAL LOANS | 0.92 | % | 1.58 | % | 1.64 | % | ||||||||||
TEXAS RATIO3 | 6.58 | % | 9.85 | % | 10.69 | % | ||||||||||
TOTAL DEPOSITS | $ | 1,587,102 | $ | 1,292,476 | $ | 1,253,289 | ||||||||||
LOAN TO DEPOSIT RATIO | 80.0 | % | 84.6 | % | 85.7 | % | ||||||||||
STOCKHOLDERS' EQUITY | $ | 180,887 | $ | 161,711 | $ | 151,792 | ||||||||||
BOOK VALUE PER SHARE | $ | 30.78 | $ | 29.61 | $ | 28.17 | ||||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS4 | 9.48 | % | 10.90 | % | 10.58 | % | ||||||||||
TOTAL RISK BASED CAPITAL RATIO-BANK5 | 12.5 | % | 13.9 | % | 13.6 | % | ||||||||||
TOTAL RISK BASED CAPITAL RATIO-BANCORP5 | 13.1 | % | 14.1 | % | 13.7 | % | ||||||||||
FULL TIME EQUIVALENT EMPLOYEES | 281 | 234 | 238 | |||||||||||||
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 $12.9 million, $12.6 million and $10.8 million at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Excludes purchased credit-impaired (PCI) loans with carrying values of $5.7 million, $2.2 million and $3.0 million that were accreting interest at December 31, 2013, September 30, 2013 and December 31, 2012, 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 $7.1 million at December 31, 2013, $3.6 million at September 30, 2013 and $4.5 million at December 31, 2012. | ||||||||||||||||
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. | ||||||||||||||||
5 Current period estimated. |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CONDITION |
at December 31, 2013, September 30, 2013 and December 31, 2012 |
(in thousands, except share data; unaudited) | December 31, 2013 | September 30, 2013 | December 31, 2012 | ||||||||
Assets | |||||||||||
Cash and due from banks | $ | 103,773 | $ | 99,358 | $ | 28,349 | |||||
Investment securities | |||||||||||
Held to maturity, at amortized cost | 122,495 | 130,085 | 139,452 | ||||||||
Available for sale (at fair value; amortized cost $245,158, $118,353 and $150,420 at December 31, 2013, September 30, 2013 and December 31, 2012, respectively) | 243,998 | 119,340 | 153,962 | ||||||||
Total investment securities | 366,493 | 249,425 | 293,414 | ||||||||
Loans, net of allowance for loan losses of $14,224, $13,808 and $13,661 at December 31, 2013, September 30, 2013 and December 31, 2012, respectively | 1,255,098 | 1,079,043 | 1,060,291 | ||||||||
Bank premises and equipment, net | 9,110 | 8,947 | 9,344 | ||||||||
Interest receivable and other assets | 70,720 | 46,830 | 43,351 | ||||||||
Total assets | $ | 1,805,194 | $ | 1,483,603 | $ | 1,434,749 | |||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities | |||||||||||
Deposits | |||||||||||
Non-interest bearing | $ | 648,191 | $ | 537,104 | $ | 389,722 | |||||
Interest bearing | |||||||||||
Transaction accounts | 137,748 | 76,221 | 169,647 | ||||||||
Savings accounts | 118,770 | 102,898 | 93,404 | ||||||||
Money market accounts | 520,525 | 437,247 | 443,742 | ||||||||
CDARS® time accounts | 400 | 1,474 | 15,718 | ||||||||
Other time accounts | 161,468 | 137,532 | 141,056 | ||||||||
Total deposits | 1,587,102 | 1,292,476 | 1,253,289 | ||||||||
Federal Home Loan Bank borrowings | 15,000 | 15,000 | 15,000 | ||||||||
Junior subordinated debentures | 4,969 | — | — | ||||||||
Interest payable and other liabilities | 17,236 | 14,416 | 14,668 | ||||||||
Total liabilities | 1,624,307 | 1,321,892 | 1,282,957 | ||||||||
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 - 5,877,524, 5,462,061 and 5,389,210 at December 31, 2013, September 30, 2013 and December 31, 2012, respectively | 80,095 | 60,982 | 58,573 | ||||||||
Retained earnings | 101,464 | 100,157 | 91,164 | ||||||||
Accumulated other comprehensive (loss) income, net | (672 | ) | 572 | 2,055 | |||||||
Total stockholders' equity | 180,887 | 161,711 | 151,792 | ||||||||
Total liabilities and stockholders' equity | $ | 1,805,194 | $ | 1,483,603 | $ | 1,434,749 |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
Three months ended | Years ended | ||||||||||||||||||
(in thousands, except per share amounts; unaudited) | December 31, 2013 | September 30, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | ||||||||||||||
Interest income | |||||||||||||||||||
Interest and fees on loans | $ | 14,358 | $ | 13,049 | $ | 14,634 | $ | 54,408 | $ | 59,403 | |||||||||
Interest on investment securities | |||||||||||||||||||
Securities of U.S. government agencies | 810 | 553 | 680 | 2,573 | 3,195 | ||||||||||||||
Obligations of state and political subdivisions | 615 | 524 | 565 | 2,214 | 1,789 | ||||||||||||||
Corporate debt securities and other | 271 | 311 | 353 | 1,245 | 1,165 | ||||||||||||||
Interest on Federal funds sold and due from banks | 75 | 34 | 66 | 120 | 214 | ||||||||||||||
Total interest income | 16,129 | 14,471 | 16,298 | 60,560 | 65,766 | ||||||||||||||
Interest expense | |||||||||||||||||||
Interest on interest bearing transaction accounts | 17 | 12 | 14 | 52 | 151 | ||||||||||||||
Interest on savings accounts | 10 | 9 | 16 | 35 | 88 | ||||||||||||||
Interest on money market accounts | 124 | 101 | 145 | 419 | 689 | ||||||||||||||
Interest on CDARS® time accounts | — | 1 | 11 | 8 | 83 | ||||||||||||||
Interest on other time accounts | 232 | 226 | 241 | 914 | 1,068 | ||||||||||||||
Interest on borrowed funds | 79 | 80 | 80 | 322 | 497 | ||||||||||||||
Interest on junior subordinated debentures | 35 | — | — | 35 | — | ||||||||||||||
Total interest expense | 497 | 429 | 507 | 1,785 | 2,576 | ||||||||||||||
Net interest income | 15,632 | 14,042 | 15,791 | 58,775 | 63,190 | ||||||||||||||
Provision for (reversal of) loan losses | 150 | (480 | ) | 700 | 540 | 2,900 | |||||||||||||
Net interest income after provision for loan losses | 15,482 | 14,522 | 15,091 | 58,235 | 60,290 | ||||||||||||||
Non-interest income | |||||||||||||||||||
Service charges on deposit accounts | 517 | 509 | 529 | 2,062 | 2,130 | ||||||||||||||
Wealth Management and Trust Services | 544 | 532 | 513 | 2,162 | 1,964 | ||||||||||||||
Debit card interchange fees | 284 | 288 | 261 | 1,104 | 1,015 | ||||||||||||||
Merchant interchange fees | 199 | 196 | 177 | 822 | 739 | ||||||||||||||
Earnings on Bank-owned life Insurance | 188 | 179 | 190 | 954 | 762 | ||||||||||||||
Gain (loss) on sale of securities | 34 | (35 | ) | — | (1 | ) | (34 | ) | |||||||||||
Other income | 297 | 284 | 146 | 963 | 536 | ||||||||||||||
Total non-interest income | 2,063 | 1,953 | 1,816 | 8,066 | 7,112 | ||||||||||||||
Non-interest expense | |||||||||||||||||||
Salaries and related benefits | 5,857 | 5,389 | 5,010 | 21,974 | 21,139 | ||||||||||||||
Occupancy and equipment | 1,182 | 1,040 | 1,098 | 4,347 | 4,230 | ||||||||||||||
Depreciation and amortization | 363 | 343 | 334 | 1,395 | 1,355 | ||||||||||||||
Federal Deposit Insurance Corporation insurance | 240 | 244 | 245 | 921 | 917 | ||||||||||||||
Data processing | 3,477 | 612 | 652 | 5,334 | 2,514 | ||||||||||||||
Professional services | 869 | 775 | 720 | 2,985 | 2,340 | ||||||||||||||
Other expense | 1,883 | 1,704 | 1,523 | 7,136 | 6,199 | ||||||||||||||
Total non-interest expense | 13,871 | 10,107 | 9,582 | 44,092 | 38,694 | ||||||||||||||
Income before provision for income taxes | 3,674 | 6,368 | 7,325 | 22,209 | 28,708 | ||||||||||||||
Provision for income taxes | 1,329 | 2,364 | 2,623 | 7,939 | 10,891 | ||||||||||||||
Net income | $ | 2,345 | $ | 4,004 | $ | 4,702 | $ | 14,270 | $ | 17,817 | |||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | 0.42 | $ | 0.74 | $ | 0.88 | $ | 2.62 | $ | 3.34 | |||||||||
Diluted | $ | 0.41 | $ | 0.72 | $ | 0.86 | $ | 2.57 | $ | 3.28 | |||||||||
Weighted average shares used to compute net income per common share: | |||||||||||||||||||
Basic | 5,585 | 5,433 | 5,357 | 5,457 | 5,341 | ||||||||||||||
Diluted | 5,697 | 5,538 | 5,451 | 5,558 | 5,438 | ||||||||||||||
Dividends declared per common share | $ | 0.19 | $ | 0.18 | $ | 0.18 | $ | 0.73 | $ | 0.70 | |||||||||
Comprehensive income | |||||||||||||||||||
Net income | $ | 2,345 | $ | 4,004 | $ | 4,702 | $ | 14,270 | $ | 17,817 | |||||||||
Other comprehensive income (loss) | |||||||||||||||||||
Change in net unrealized gain on available for sale securities | (2,113 | ) | (621 | ) | 16 | (4,703 | ) | 752 | |||||||||||
Reclassification adjustment for (gain) loss on sale of securities included in net income | (34 | ) | 35 | — | 1 | 34 | |||||||||||||
Net change in unrealized gain on available for sale securities, before tax | (2,147 | ) | (586 | ) | 16 | (4,702 | ) | 786 | |||||||||||
Deferred tax (benefit) expense | (903 | ) | (246 | ) | 6 | (1,975 | ) | 330 | |||||||||||
Other comprehensive (loss) income, net of tax | (1,244 | ) | (340 | ) | 10 | (2,727 | ) | 456 | |||||||||||
Comprehensive income | $ | 1,101 | $ | 3,664 | $ | 4,712 | $ | 11,543 | $ | 18,273 |
BANK OF MARIN BANCORP |
AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST INCOME |
Three months ended | Three months ended | Three months ended | |||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
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 | $ | 116,627 | $ | 75 | 0.25 | % | $ | 61,409 | $ | 34 | 0.22 | % | $ | 80,884 | $ | 66 | 0.32 | % | |||||||
Investment securities 2, 3 | 285,537 | 1,873 | 2.62 | % | 254,515 | 1,539 | 2.42 | % | 265,316 | 1,779 | 2.68 | % | |||||||||||||
Loans 1, 3, 4 | 1,143,509 | 14,563 | 4.98 | % | 1,093,846 | 13,248 | 4.74 | % | 1,020,737 | 14,788 | 5.67 | % | |||||||||||||
Total interest-earning assets 1 | 1,545,673 | 16,511 | 4.18 | % | 1,409,770 | 14,821 | 4.11 | % | 1,366,937 | 16,633 | 4.76 | % | |||||||||||||
Cash and non-interest-bearing due from banks | 43,385 | 32,482 | 44,225 | ||||||||||||||||||||||
Bank premises and equipment, net | 9,033 | 9,092 | 9,173 | ||||||||||||||||||||||
Interest receivable and other assets, net | 44,278 | 34,796 | 37,512 | ||||||||||||||||||||||
Total assets | $ | 1,642,369 | $ | 1,486,140 | $ | 1,457,847 | |||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 99,116 | $ | 17 | 0.07 | % | $ | 78,109 | $ | 12 | 0.06 | % | $ | 160,605 | $ | 14 | 0.03 | % | |||||||
Savings accounts | 108,229 | 10 | 0.03 | % | 100,730 | 9 | 0.03 | % | 91,609 | 16 | 0.07 | % | |||||||||||||
Money market accounts | 475,051 | 124 | 0.10 | % | 431,332 | 101 | 0.09 | % | 442,006 | 145 | 0.13 | % | |||||||||||||
CDARS® time accounts | 889 | — | — | % | 2,873 | 1 | 0.14 | % | 22,497 | 11 | 0.19 | % | |||||||||||||
Other time accounts | 146,549 | 232 | 0.63 | % | 137,733 | 226 | 0.65 | % | 141,375 | 241 | 0.68 | % | |||||||||||||
FHLB borrowings 1 | 15,003 | 79 | 2.07 | % | 15,000 | 80 | 2.07 | % | 15,010 | 80 | 2.08 | % | |||||||||||||
Junior subordinated debentures 1 | 1,616 | 35 | 8.48 | % | — | — | — | % | — | — | — | % | |||||||||||||
Total interest-bearing liabilities | 846,453 | 497 | 0.23 | % | 765,777 | 429 | 0.22 | % | 873,102 | 507 | 0.23 | % | |||||||||||||
Demand accounts | 610,261 | 547,634 | 420,517 | ||||||||||||||||||||||
Interest payable and other liabilities | 15,498 | 12,409 | 14,524 | ||||||||||||||||||||||
Stockholders' equity | 170,157 | 160,320 | 149,704 | ||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,642,369 | $ | 1,486,140 | $ | 1,457,847 | |||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 16,014 | 4.05 | % | $ | 14,392 | 3.99 | % | $ | 16,126 | 4.62 | % | |||||||||||||
Reported net interest income/margin 1 | $ | 15,632 | 3.96 | % | $ | 14,042 | 3.90 | % | $ | 15,791 | 4.52 | % | |||||||||||||
Tax-equivalent net interest rate spread | 3.95 | % | 3.89 | % | 4.53 | % | |||||||||||||||||||
Year ended | Year ended | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
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 | $ | 47,401 | $ | 120 | 0.25 | % | $ | 80,643 | $ | 214 | 0.26 | % | |||||||||||||
Investment securities 2, 3 | 272,767 | 6,648 | 2.44 | % | 234,014 | 6,829 | 2.92 | % | |||||||||||||||||
Loans 1, 3, 4 | 1,092,885 | 55,157 | 4.98 | % | 1,023,165 | 59,991 | 5.77 | % | |||||||||||||||||
Total interest-earning assets 1 | 1,413,053 | 61,925 | 4.32 | % | 1,337,822 | 67,034 | 4.93 | % | |||||||||||||||||
Cash and non-interest-bearing due from banks | 32,903 | 51,301 | |||||||||||||||||||||||
Bank premises and equipment, net | 9,214 | 9,183 | |||||||||||||||||||||||
Interest receivable and other assets, net | 38,993 | 36,155 | |||||||||||||||||||||||
Total assets | $ | 1,494,163 | $ | 1,434,461 | |||||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 97,336 | $ | 52 | 0.05 | % | $ | 152,778 | $ | 151 | 0.10 | % | |||||||||||||
Savings accounts | 100,185 | 35 | 0.03 | % | 86,670 | 88 | 0.10 | % | |||||||||||||||||
Money market accounts | 437,441 | 419 | 0.10 | % | 436,281 | 689 | 0.16 | % | |||||||||||||||||
CDARS® time accounts | 5,416 | 8 | 0.15 | % | 30,016 | 83 | 0.28 | % | |||||||||||||||||
Other time accounts | 140,334 | 914 | 0.65 | % | 144,106 | 1,068 | 0.74 | % | |||||||||||||||||
FHLB borrowings and overnight borrowings 1 | 19,054 | 322 | 1.67 | % | 16,205 | 345 | 2.09 | % | |||||||||||||||||
Junior subordinated debentures and subordinated debenture1 | 407 | 35 | 8.48 | % | 3,552 | 152 | 4.21 | % | |||||||||||||||||
Total interest-bearing liabilities | 800,173 | 1,785 | 0.22 | % | 869,608 | 2,576 | 0.30 | % | |||||||||||||||||
Demand accounts | 518,986 | 406,861 | |||||||||||||||||||||||
Interest payable and other liabilities | 13,970 | 13,881 | |||||||||||||||||||||||
Stockholders' equity | 161,034 | 144,111 | |||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,494,163 | $ | 1,434,461 | |||||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 60,140 | 4.20 | % | $ | 64,458 | 4.74 | % | |||||||||||||||||
Reported net interest income/margin 1 | $ | 58,775 | 4.10 | % | $ | 63,190 | 4.65 | % | |||||||||||||||||
Tax-equivalent net interest rate spread | 4.10 | % | 4.63 | % | |||||||||||||||||||||
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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