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: | |
¨ 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 October 20, 2014. |
Dated: October 20, 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 October 20, 2014 | 1-8 |
FOR IMMEDIATE RELEASE | CONTACT: | Sandy Pfaff |
415-819-7447 | ||
sandy@pfaffpr.com |
• | Loans grew to $1.4 billion, an increase of $22.5 million, or 1.7%, over June 30, 2014, and $268.1 million, or 24.5% over September 30, 2013. The increase in loans from a year ago reflects both acquired loans and organic growth. Credit quality improved with non-accrual loans representing 0.73% of total loans at September 30, 2014, down from 0.76% at June 30, 2014 and 1.58% a year ago. Net recoveries for the third quarter totaled $149 thousand, compared to net recoveries of $68 thousand in the prior quarter and net charge-offs of $68 thousand in the same quarter a year ago. |
• | Quarterly return on assets (“ROA”) of 1.15% for the quarter ended September 30, 2014, increased from 1.14% in the previous quarter and 1.07% a year ago. Quarterly return on equity (“ROE”) totaled 10.98% for the quarter ended September 30, 2014, compared to 10.96% for the quarter ended June 30, 2014 and 9.91% for the quarter ended September 30, 2013. The increase in ROA and ROE in the current quarter was driven by strong earnings. |
• | The total risk-based capital ratio for Bancorp was 13.6% at September 30, 2014, compared to 13.5% at June 30, 2014 and 14.1% at September 30, 2013. The ratio declined compared to a year ago due to the NorCal Community Bancorp ("NorCal") acquisition. The risk-based capital ratio continues to be well above both current regulatory requirements for a well-capitalized institution and new requirements that will take effect in 2015 (Basel Committee on Bank Supervision guidelines for determining regulatory capital). Tangible common equity to tangible assets totaled 10.3% at September 30, 2014, compared to 9.9% at the end of the prior quarter. |
• | On October 17, 2014, the Board of Directors declared a quarterly cash dividend of $0.22 per share, a $0.02 increase from the prior quarter. The cash dividend is payable to shareholders of record at the close of business on October 31, 2014 and will be payable on November 7, 2014. |
Three months ended | ||||||||||||||||||||||
September 30, 2014 | June 30, 2014 | September 30, 2013 | ||||||||||||||||||||
(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 | $ | 126 | 3 bps | $ | 187 | 4 bps | $ | 154 | 4 bps | |||||||||||||
Accretion on non-PCI loans | $ | 774 | 17 bps | $ | 713 | 17 bps | $ | 214 | 6 bps | |||||||||||||
Gains on pay-offs of PCI loans | $ | — | 0 bps | $ | 622 | 14 bps | $ | — | 0 bps | |||||||||||||
Nine months ended | ||||||||||
September 30, 2014 | September 30, 2013 | |||||||||
(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 | $ | 494 | 4 bps | $ | 545 | 5 bps | ||||
Accretion on non-PCI loans | $ | 2,817 | 22 bps | $ | 591 | 6 bps | ||||
Gains on pay-offs of PCI loans | $ | 622 | 5 bps | $ | 469 | 5 bps | ||||
BANK OF MARIN BANCORP | ||||||||||||||||
FINANCIAL HIGHLIGHTS | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
(dollars in thousands, except per share data; unaudited) | ||||||||||||||||
QUARTER-TO-DATE | September 30, 2014 | June 30, 2014 | September 30, 2013 | |||||||||||||
NET INCOME | $ | 5,378 | $ | 5,168 | $ | 4,004 | ||||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.89 | $ | 0.86 | $ | 0.72 | ||||||||||
RETURN ON AVERAGE ASSETS (ROA) | 1.15 | % | 1.14 | % | 1.07 | % | ||||||||||
RETURN ON AVERAGE EQUITY (ROE) | 10.98 | % | 10.96 | % | 9.91 | % | ||||||||||
EFFICIENCY RATIO | 57.23 | % | 56.60 | % | 63.19 | % | ||||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 4.03 | % | 4.23 | % | 3.99 | % | ||||||||||
NET CHARGE-OFFS/(RECOVERIES) | $ | (149 | ) | $ | (68 | ) | $ | 68 | ||||||||
NET CHARGE-OFFS/(RECOVERIES) TO AVERAGE LOANS | (0.01 | ) | % | (0.01 | ) | % | 0.01 | % | ||||||||
YEAR-TO-DATE | ||||||||||||||||
NET INCOME | $ | 15,079 | $ | 9,701 | $ | 11,925 | ||||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 2.51 | $ | 1.62 | $ | 2.16 | ||||||||||
RETURN ON AVERAGE ASSETS (ROA) | 1.10 | % | 1.08 | % | 1.10 | % | ||||||||||
RETURN ON AVERAGE EQUITY (ROE) | 10.65 | % | 10.47 | % | 10.09 | % | ||||||||||
EFFICIENCY RATIO | 59.24 | % | 60.22 | % | 61.49 | % | ||||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 4.17 | % | 4.24 | % | 4.25 | % | ||||||||||
NET CHARGE-OFFS/(RECOVERIES) | $ | (74 | ) | $ | 75 | $ | 242 | |||||||||
NET CHARGE-OFFS/(RECOVERIES) TO AVERAGE LOANS | (0.01 | ) | % | 0.01 | % | 0.02 | % | |||||||||
AT PERIOD END | ||||||||||||||||
TOTAL ASSETS | $ | 1,802,657 | $ | 1,823,901 | $ | 1,483,603 | ||||||||||
LOANS: | ||||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 201,516 | $ | 194,402 | $ | 168,840 | ||||||||||
REAL ESTATE | ||||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 234,493 | $ | 233,267 | $ | 206,173 | ||||||||||
COMMERCIAL INVESTOR-OWNED | $ | 674,428 | $ | 669,225 | $ | 547,337 | ||||||||||
CONSTRUCTION | $ | 45,948 | $ | 40,197 | $ | 24,993 | ||||||||||
HOME EQUITY | $ | 109,655 | $ | 106,201 | $ | 86,204 | ||||||||||
OTHER RESIDENTIAL | $ | 75,992 | $ | 80,399 | $ | 43,572 | ||||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 18,953 | $ | 14,820 | $ | 15,732 | ||||||||||
TOTAL LOANS | $ | 1,360,985 | $ | 1,338,511 | $ | 1,092,851 | ||||||||||
NON-PERFORMING LOANS2: | ||||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 193 | $ | 335 | $ | 1,229 | ||||||||||
REAL ESTATE | ||||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 1,403 | $ | 1,403 | $ | 1,403 | ||||||||||
COMMERCIAL INVESTOR-OWNED | $ | 2,505 | $ | 2,618 | $ | 5,832 | ||||||||||
CONSTRUCTION | $ | 5,173 | $ | 5,197 | $ | 7,045 | ||||||||||
HOME EQUITY | $ | 436 | $ | 444 | $ | 359 | ||||||||||
OTHER RESIDENTIAL | $ | — | $ | — | $ | 1,117 | ||||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 128 | $ | 152 | $ | 311 | ||||||||||
TOTAL NON-ACCRUAL LOANS | $ | 9,838 | $ | 10,149 | $ | 17,296 | ||||||||||
CLASSIFIED LOANS (GRADED SUBSTANDARD & DOUBTFUL) | $ | 38,999 | $ | 33,246 | $ | 30,913 | ||||||||||
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE | $ | 299 | $ | 1,471 | $ | 2,213 | ||||||||||
LOAN LOSS RESERVE TO LOANS | 1.11 | % | 1.11 | % | 1.26 | % | ||||||||||
LOAN LOSS RESERVE TO NON-ACCRUAL LOANS | 1.53 | x | 1.47 | x | 0.80 | x | ||||||||||
NON-ACCRUAL LOANS TO TOTAL LOANS | 0.73 | % | 0.76 | % | 1.58 | % | ||||||||||
TEXAS RATIO3 | 5.14 | % | 5.43 | % | 9.85 | % | ||||||||||
TOTAL DEPOSITS | $ | 1,571,624 | $ | 1,598,823 | $ | 1,292,476 | ||||||||||
LOAN-TO-DEPOSIT RATIO | 86.6 | % | 83.7 | % | 84.6 | % | ||||||||||
STOCKHOLDERS' EQUITY | $ | 195,674 | $ | 190,906 | $ | 161,711 | ||||||||||
BOOK VALUE PER SHARE | $ | 33.00 | $ | 32.29 | $ | 29.61 | ||||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS4 | 10.3 | % | 9.9 | % | 10.9 | % | ||||||||||
TOTAL RISK-BASED CAPITAL RATIO-BANK5 | 13.3 | % | 13.0 | % | 13.9 | % | ||||||||||
TOTAL RISK-BASED CAPITAL RATIO-BANCORP5 | 13.6 | % | 13.5 | % | 14.1 | % | ||||||||||
FULL-TIME EQUIVALENT EMPLOYEES | 257 | 263 | 234 | |||||||||||||
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 $16.9 million, $14.3 million and $12.6 million at September 30, 2014, June 30, 2014 and September 30, 2013, respectively. Excludes purchased credit-impaired (PCI) loans with carrying values of $3.8 million, $3.8 million and $2.2 million that were accreting interest at September 30, 2014, June 30, 2014 and September 30, 2013, 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 $5.2 million, $5.2 million and $3.6 million at September 30, 2014, June 30, 2014 and September 30, 2013. | ||||||||||||||||
3 (Non-performing assets + 90 day delinquent loans)/(tangible common equity + allowance for loan losses). | ||||||||||||||||
4 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 $10.4 million and $10.6 million at September 30, 2014 and June 30, 2014, respectively. Tangible assets excludes goodwill and intangible assets. | ||||||||||||||||
5 Current period estimated. |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CONDITION |
at September 30, 2014, June 30, 2014 and September 30, 2013 |
(in thousands, except share data; unaudited) | September 30, 2014 | June 30, 2014 | September 30, 2013 | |||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 46,424 | $ | 81,380 | $ | 99,358 | ||||||
Investment securities | ||||||||||||
Held-to-maturity, at amortized cost | 118,843 | 123,085 | 130,085 | |||||||||
Available-for-sale (at fair value; amortized cost $210,676, $214,627, and $118,353 at September 30, 2014, June 30, 2014, and September 30, 2013, respectively) | 211,582 | 215,873 | 119,340 | |||||||||
Total investment securities | 330,425 | 338,958 | 249,425 | |||||||||
Loans, net of allowance for loan losses of $15,049, $14,900 and $13,808 at September 30, 2014, June 30, 2014 and September 30, 2013, respectively | 1,345,936 | 1,323,611 | 1,079,043 | |||||||||
Bank premises and equipment, net | 9,277 | 9,296 | 8,947 | |||||||||
Goodwill | 6,436 | 6,436 | — | |||||||||
Core deposit intangible | 3,925 | 4,117 | — | |||||||||
Interest receivable and other assets | 60,234 | 60,103 | 46,830 | |||||||||
Total assets | $ | 1,802,657 | $ | 1,823,901 | $ | 1,483,603 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||
Liabilities | ||||||||||||
Deposits | ||||||||||||
Non-interest bearing | $ | 717,720 | $ | 724,975 | $ | 537,104 | ||||||
Interest bearing | ||||||||||||
Transaction accounts | 89,891 | 95,052 | 76,221 | |||||||||
Savings accounts | 127,774 | 121,890 | 102,898 | |||||||||
Money market accounts | 485,626 | 500,720 | 437,247 | |||||||||
Time accounts | 150,613 | 156,186 | 139,006 | |||||||||
Total deposits | 1,571,624 | 1,598,823 | 1,292,476 | |||||||||
Federal Home Loan Bank borrowings | 15,000 | 15,000 | 15,000 | |||||||||
Subordinated debentures | 5,131 | 5,077 | — | |||||||||
Interest payable and other liabilities | 15,228 | 14,095 | 14,416 | |||||||||
Total liabilities | 1,606,983 | 1,632,995 | 1,321,892 | |||||||||
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 - 5,930,100, 5,912,774 and 5,462,061 at September 30, 2014, June 30, 2014 and September 30, 2013, respectively | 81,993 | 81,219 | 60,982 | |||||||||
Retained earnings | 113,115 | 108,922 | 100,157 | |||||||||
Accumulated other comprehensive income, net | 566 | 765 | 572 | |||||||||
Total stockholders' equity | 195,674 | 190,906 | 161,711 | |||||||||
Total liabilities and stockholders' equity | $ | 1,802,657 | $ | 1,823,901 | $ | 1,483,603 |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
Three months ended | Nine months ended | ||||||||||||||||||
(in thousands, except per share amounts; unaudited) | September 30, 2014 | June 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | ||||||||||||||
Interest income | |||||||||||||||||||
Interest and fees on loans | $ | 16,195 | $ | 16,363 | $ | 13,049 | $ | 48,877 | $ | 40,050 | |||||||||
Interest on investment securities | |||||||||||||||||||
Securities of U.S. Government agencies | 1,126 | 1,193 | 553 | 3,551 | 1,763 | ||||||||||||||
Obligations of state and political subdivisions | 496 | 607 | 524 | 1,737 | 1,599 | ||||||||||||||
Corporate debt securities and other | 254 | 256 | 311 | 778 | 974 | ||||||||||||||
Interest due from banks and other | 37 | 37 | 34 | 125 | 45 | ||||||||||||||
Total interest income | 18,108 | 18,456 | 14,471 | 55,068 | 44,431 | ||||||||||||||
Interest expense | |||||||||||||||||||
Interest on interest-bearing transaction accounts | 25 | 26 | 12 | 74 | 35 | ||||||||||||||
Interest on savings accounts | 12 | 11 | 9 | 34 | 25 | ||||||||||||||
Interest on money market accounts | 126 | 131 | 101 | 415 | 295 | ||||||||||||||
Interest on time accounts | 229 | 231 | 227 | 695 | 690 | ||||||||||||||
Interest on FHLB and overnight borrowings | 79 | 78 | 80 | 235 | 243 | ||||||||||||||
Interest on subordinated debentures | 106 | 105 | — | 316 | — | ||||||||||||||
Total interest expense | 577 | 582 | 429 | 1,769 | 1,288 | ||||||||||||||
Net interest income | 17,531 | 17,874 | 14,042 | 53,299 | 43,143 | ||||||||||||||
Provision for loan losses | — | 600 | (480 | ) | 750 | 390 | |||||||||||||
Net interest income after provision for loan losses | 17,531 | 17,274 | 14,522 | 52,549 | 42,753 | ||||||||||||||
Non-interest income | |||||||||||||||||||
Service charges on deposit accounts | 552 | 528 | 509 | 1,636 | 1,545 | ||||||||||||||
Wealth Management and Trust Services | 567 | 613 | 532 | 1,744 | 1,618 | ||||||||||||||
Debit card interchange fees | 375 | 360 | 288 | 1,035 | 820 | ||||||||||||||
Merchant interchange fees | 224 | 207 | 196 | 629 | 623 | ||||||||||||||
Earnings on Bank-owned life Insurance | 208 | 211 | 179 | 632 | 766 | ||||||||||||||
Gain (loss) on sale of securities | 4 | 97 | (35 | ) | 93 | (35 | ) | ||||||||||||
Other income | 371 | 352 | 284 | 1,116 | 666 | ||||||||||||||
Total non-interest income | 2,301 | 2,368 | 1,953 | 6,885 | 6,003 | ||||||||||||||
Non-interest expense | |||||||||||||||||||
Salaries and related benefits | 6,108 | 6,232 | 5,389 | 19,270 | 16,117 | ||||||||||||||
Occupancy and equipment | 1,381 | 1,329 | 1,040 | 4,044 | 3,165 | ||||||||||||||
Depreciation and amortization | 383 | 403 | 343 | 1,202 | 1,032 | ||||||||||||||
Federal Deposit Insurance Corporation insurance | 261 | 269 | 244 | 780 | 681 | ||||||||||||||
Data processing | 748 | 748 | 612 | 2,856 | 1,857 | ||||||||||||||
Professional services | 537 | 412 | 775 | 1,577 | 2,116 | ||||||||||||||
Other expense | 1,932 | 2,064 | 1,704 | 5,921 | 5,253 | ||||||||||||||
Total non-interest expense | 11,350 | 11,457 | 10,107 | 35,650 | 30,221 | ||||||||||||||
Income before provision for income taxes | 8,482 | 8,185 | 6,368 | 23,784 | 18,535 | ||||||||||||||
Provision for income taxes | 3,104 | 3,017 | 2,364 | 8,705 | 6,610 | ||||||||||||||
Net income | $ | 5,378 | $ | 5,168 | $ | 4,004 | $ | 15,079 | $ | 11,925 | |||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | 0.91 | $ | 0.88 | $ | 0.74 | $ | 2.56 | $ | 2.20 | |||||||||
Diluted | $ | 0.89 | $ | 0.86 | $ | 0.72 | $ | 2.51 | $ | 2.16 | |||||||||
Weighted average shares used to compute net income per common share: | |||||||||||||||||||
Basic | 5,903 | 5,888 | 5,433 | 5,887 | 5,414 | ||||||||||||||
Diluted | 6,014 | 5,993 | 5,538 | 5,996 | 5,511 | ||||||||||||||
Dividends declared per common share | $ | 0.20 | $ | 0.19 | $ | 0.18 | $ | 0.58 | $ | 0.54 | |||||||||
Comprehensive income: | |||||||||||||||||||
Net income | $ | 5,378 | $ | 5,168 | $ | 4,004 | $ | 15,079 | $ | 11,925 | |||||||||
Other comprehensive income (loss) | |||||||||||||||||||
Change in net unrealized (loss) gain on available-for-sale securities | (344 | ) | 976 | (621 | ) | 2,047 | (2,591 | ) | |||||||||||
Reclassification adjustment for loss on sale of available-for-sale securities included in net income | 4 | — | 35 | 19 | 35 | ||||||||||||||
Net change in unrealized (loss) gain on available-for-sale securities, before tax | (340 | ) | 976 | (586 | ) | 2,066 | (2,556 | ) | |||||||||||
Deferred tax (benefit) expense | (141 | ) | 450 | (246 | ) | 828 | (1,073 | ) | |||||||||||
Other comprehensive (loss) income, net of tax | (199 | ) | 526 | (340 | ) | 1,238 | (1,483 | ) | |||||||||||
Comprehensive income | $ | 5,179 | $ | 5,694 | $ | 3,664 | $ | 16,317 | $ | 10,442 |
BANK OF MARIN BANCORP |
AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST INCOME |
Three months ended | Three months ended | Three months ended | |||||||||||||||||||||||
September 30, 2014 | June 30, 2014 | September 30, 2013 | |||||||||||||||||||||||
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 | $ | 58,088 | $ | 37 | 0.25 | % | $ | 54,313 | $ | 37 | 0.27 | % | $ | 61,409 | $ | 34 | 0.22 | % | |||||||
Investment securities 2, 3 | 332,920 | 1,997 | 2.40 | % | 350,938 | 2,208 | 2.52 | % | 254,515 | 1,539 | 2.42 | % | |||||||||||||
Loans 1, 3, 4 | 1,349,740 | 16,489 | 4.78 | % | 1,303,363 | 16,597 | 5.04 | % | 1,093,846 | 13,248 | 4.74 | % | |||||||||||||
Total interest-earning assets 1 | 1,740,748 | 18,523 | 4.16 | % | 1,708,614 | 18,842 | 4.36 | % | 1,409,770 | 14,821 | 4.11 | % | |||||||||||||
Cash and non-interest-bearing due from banks | 46,258 | 41,739 | 32,482 | ||||||||||||||||||||||
Bank premises and equipment, net | 9,337 | 9,228 | 9,092 | ||||||||||||||||||||||
Interest receivable and other assets, net | 56,855 | 56,954 | 34,796 | ||||||||||||||||||||||
Total assets | $ | 1,853,198 | $ | 1,816,535 | $ | 1,486,140 | |||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 92,907 | $ | 25 | 0.11 | % | $ | 94,358 | $ | 26 | 0.11 | % | $ | 78,109 | $ | 12 | 0.06 | % | |||||||
Savings accounts | 127,457 | 12 | 0.04 | % | 120,071 | 11 | 0.04 | % | 100,730 | 9 | 0.03 | % | |||||||||||||
Money market accounts | 501,843 | 126 | 0.10 | % | 504,597 | 131 | 0.10 | % | 431,332 | 101 | 0.09 | % | |||||||||||||
Time accounts | 152,995 | 229 | 0.59 | % | 157,239 | 231 | 0.59 | % | 140,606 | 227 | 0.64 | % | |||||||||||||
FHLB borrowing 1 | 15,000 | 79 | 2.07 | % | 15,000 | 78 | 2.07 | % | 15,000 | 80 | 2.07 | % | |||||||||||||
Subordinated debentures 1 | 5,096 | 106 | 8.14 | % | 5,043 | 105 | 8.24 | % | — | — | — | % | |||||||||||||
Total interest-bearing liabilities | 895,298 | 577 | 0.26 | % | 896,308 | 582 | 0.26 | % | 765,777 | 429 | 0.22 | % | |||||||||||||
Demand accounts | 749,361 | 716,774 | 547,634 | ||||||||||||||||||||||
Interest payable and other liabilities | 14,167 | 14,281 | 12,409 | ||||||||||||||||||||||
Stockholders' equity | 194,372 | 189,172 | 160,320 | ||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,853,198 | $ | 1,816,535 | $ | 1,486,140 | |||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 17,946 | 4.03 | % | $ | 18,260 | 4.23 | % | $ | 14,392 | 3.99 | % | |||||||||||||
Reported net interest income/margin 1 | $ | 17,531 | 3.94 | % | $ | 17,874 | 4.14 | % | $ | 14,042 | 3.90 | % | |||||||||||||
Tax-equivalent net interest rate spread | 3.91 | % | 4.10 | % | 3.89 | % | |||||||||||||||||||
Nine months ended | Nine months ended | ||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
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 | $ | 65,949 | $ | 125 | 0.25 | % | $ | 24,072 | $ | 45 | 0.25 | % | |||||||||||||
Investment securities 2, 3 | 348,445 | 6,498 | 2.49 | % | 268,463 | 4,775 | 2.37 | % | |||||||||||||||||
Loans 1, 3, 4 | 1,307,611 | 49,606 | 5.00 | % | 1,075,825 | 40,595 | 4.98 | % | |||||||||||||||||
Total interest-earning assets 1 | 1,722,005 | 56,229 | 4.31 | % | 1,368,360 | 45,415 | 4.38 | % | |||||||||||||||||
Cash and non-interest-bearing due from banks | 43,280 | 29,370 | |||||||||||||||||||||||
Bank premises and equipment, net | 9,218 | 9,277 | |||||||||||||||||||||||
Interest receivable and other assets, net | 56,550 | 37,211 | |||||||||||||||||||||||
Total assets | $ | 1,831,053 | $ | 1,444,218 | |||||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 104,662 | $ | 74 | 0.09 | % | $ | 96,736 | $ | 35 | 0.05 | % | |||||||||||||
Savings accounts | 122,958 | 34 | 0.04 | % | 97,474 | 25 | 0.03 | % | |||||||||||||||||
Money market accounts | 508,544 | 415 | 0.11 | % | 424,767 | 295 | 0.09 | % | |||||||||||||||||
Time accounts | 156,892 | 695 | 0.59 | % | 145,180 | 690 | 0.64 | % | |||||||||||||||||
Overnight borrowings 1 | — | — | — | % | 5,420 | 7 | 0.17 | % | |||||||||||||||||
FHLB borrowings 1 | 15,000 | 235 | 2.07 | % | 15,000 | 236 | 2.07 | % | |||||||||||||||||
Subordinated debentures 1 | 5,043 | 316 | 8.42 | % | — | — | — | % | |||||||||||||||||
Total interest-bearing liabilities | 913,099 | 1,769 | 0.26 | % | 784,577 | 1,288 | 0.22 | % | |||||||||||||||||
Demand accounts | 713,882 | 488,227 | |||||||||||||||||||||||
Interest payable and other liabilities | 14,725 | 13,455 | |||||||||||||||||||||||
Stockholders' equity | 189,347 | 157,959 | |||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,831,053 | $ | 1,444,218 | |||||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 54,460 | 4.17 | % | $ | 44,127 | 4.25 | % | |||||||||||||||||
Reported net interest income/margin 1 | $ | 53,299 | 4.08 | % | $ | 43,143 | 4.16 | % | |||||||||||||||||
Tax-equivalent net interest rate spread | 4.05 | % | 4.16 | % | |||||||||||||||||||||
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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