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)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. | |
Emerging growth company o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
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 22, 2018. |
Dated: October 22, 2018 | 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 | 1-9 |
FOR IMMEDIATE RELEASE | MEDIA CONTACT: |
Beth Drummey | |
Marketing & Community Relations Manager | |
415-763-4529 | bethdrummey@bankofmarin.com |
• | Pre-tax net income in the third quarter of 2018 was up $1.2 million from the second quarter of 2018 and $4.0 million from the third quarter of 2017. Higher average balances of both loans and non-interest bearing deposits and higher yields across earning asset categories favorably impacted earnings in the current quarter. Reported net interest margin was 3.91% in the third quarter of 2018, compared to 3.87% in the prior quarter and 3.63% in the same quarter last year. |
• | Loans increased $11.3 million to $1,728.9 million at September 30, 2018, compared to $1,717.6 million at June 30, 2018. New loan volume of $52.6 million in the third quarter was well-distributed among our Marin, Napa and San Francisco Commercial Banking markets as well as Consumer Banking. |
• | Strong credit quality remains a cornerstone of the Bank's consistent performance. Non-accrual loans continue to represent 0.02% of the Bank's loan portfolio at September 30, 2018. There was no provision for either loan losses or off-balance sheet commitments recorded in the third quarter of 2018. |
• | Total deposits increased $75.1 million in the third quarter to $2,212.8 million. Non-interest bearing deposits represented 50.2% of total deposits versus 49.5% last quarter. The cost of total deposits increased to 0.10% for the third quarter of 2018, compared to 0.08% for the prior quarter. |
• | All capital ratios are well above regulatory requirements for a well-capitalized institution. The total risk-based capital ratio for Bancorp was 15.3% at September 30, 2018, compared to 15.2% at June 30, 2018. Tangible common equity to tangible assets was 10.9% at September 30, 2018, compared to 11.0% at June 30, 2018 (refer to footnote 3 on page 6 for a definition of this non-GAAP financial measure.) |
• | The Board of Directors declared a cash dividend of $0.35 per share, a $0.03 increase from the prior quarter. This represents the 54th consecutive quarterly dividend paid by Bank of Marin Bancorp. The dividend is payable on November 8, 2018, to shareholders of record at the close of business on November 1, 2018. |
• | In order to further enhance liquidity in Bank of Marin Bancorp (BMRC) stock and expand diversification in the investor base, the Board of Directors announced a 2:1 stock split payable on November 27, 2018, to shareholders of record at the close of business on November 9, 2018. |
• | To reduce our funding costs, on October 5, 2018, Bancorp early-redeemed one of the two subordinated debentures assumed as part of the 2013 acquisition of NorCal Community Bancorp. The unaccreted purchase discount of $916 thousand has been accelerated and will have a one-time impact on net interest income in the fourth quarter of 2018, but will not have a material impact on our capital ratios. |
Three months ended | ||||||||||||||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | ||||||||||||||||||||
(dollars in thousands; unaudited) | Dollar Amount | Basis point impact to net interest margin | Dollar Amount | Basis point impact to net interest margin | Dollar Amount | Basis point impact to net interest margin | ||||||||||||||||
Accretion on PCI loans 1 | $ | 63 | 1 bps | $ | 84 | 1 bps | $ | 76 | 2 bps | |||||||||||||
Accretion on non-PCI loans 2 | $ | 41 | 1 bps | $ | 133 | 2 bps | $ | 132 | 3 bps | |||||||||||||
Gains on payoffs of PCI loans | $ | 6 | 0 bps | $ | 1 | 0 bps | $ | — | 0 bps |
Nine months ended | |||||||||
September 30, 2018 | September 30, 2017 | ||||||||
(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 1 | $ | 258 | 1 bps | $ | 246 | 2 bps | |||
Accretion on non-PCI loans 2 | $ | 273 | 2 bps | $ | 460 | 3 bps | |||
Gains on payoffs of PCI loans | $ | 135 | 1 bps | $ | 84 | 1 bps |
BANK OF MARIN BANCORP | ||||||||||||||
FINANCIAL HIGHLIGHTS | ||||||||||||||
September 30, 2018 | ||||||||||||||
(dollars in thousands, except per share data; unaudited) | September 30, 2018 | June 30, 2018 | September 30, 2017 | |||||||||||
QUARTER-TO-DATE | ||||||||||||||
NET INCOME | $ | 8,680 | $ | 7,891 | $ | 5,132 | ||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 1.23 | $ | 1.12 | $ | 0.83 | ||||||||
RETURN ON AVERAGE ASSETS (ROA) | 1.38 | % | 1.28 | % | 0.95 | % | ||||||||
RETURN ON AVERAGE EQUITY (ROE) | 11.20 | % | 10.54 | % | 8.37 | % | ||||||||
EFFICIENCY RATIO | 54.20 | % | 57.85 | % | 62.51 | % | ||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 3.97 | % | 3.92 | % | 3.77 | % | ||||||||
NET CHARGE-OFFS (RECOVERIES) | $ | (4 | ) | $ | (42 | ) | $ | (16 | ) | |||||
NET CHARGE-OFFS (RECOVERIES) TO AVERAGE LOANS | — | % | — | % | — | % | ||||||||
YEAR-TO-DATE | ||||||||||||||
NET INCOME | $ | 22,960 | $ | 14,866 | ||||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 3.27 | $ | 2.41 | ||||||||||
RETURN ON AVERAGE ASSETS (ROA) | 1.24 | % | 0.96 | % | ||||||||||
RETURN ON AVERAGE EQUITY (ROE) | 10.17 | % | 8.35 | % | ||||||||||
EFFICIENCY RATIO | 59.42 | % | 63.42 | % | ||||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 3.91 | % | 3.80 | % | ||||||||||
NET CHARGE-OFFS (RECOVERIES) | $ | (50 | ) | $ | 194 | |||||||||
NET CHARGE-OFFS (RECOVERIES) TO AVERAGE LOANS | — | % | 0.01 | % | ||||||||||
AT PERIOD END | ||||||||||||||
TOTAL ASSETS | $ | 2,545,715 | $ | 2,465,042 | $ | 2,155,901 | ||||||||
LOANS: | ||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 238,771 | $ | 241,994 | $ | 218,681 | ||||||||
REAL ESTATE | ||||||||||||||
COMMERCIAL OWNER-OCCUPIED | 316,467 | 317,587 | 264,732 | |||||||||||
COMMERCIAL INVESTOR-OWNED | 841,493 | 839,667 | 721,576 | |||||||||||
CONSTRUCTION | 68,739 | 57,015 | 76,179 | |||||||||||
HOME EQUITY | 121,243 | 126,031 | 121,366 | |||||||||||
OTHER RESIDENTIAL | 113,383 | 108,829 | 96,937 | |||||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | 28,775 | 26,488 | 24,976 | |||||||||||
TOTAL LOANS | $ | 1,728,871 | $ | 1,717,611 | $ | 1,524,447 | ||||||||
NON-PERFORMING LOANS2: | ||||||||||||||
REAL ESTATE: | ||||||||||||||
COMMERCIAL INVESTOR-OWNED | $ | — | $ | — | $ | 1,024 | ||||||||
HOME EQUITY | 318 | 385 | 292 | |||||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | 68 | — | — | |||||||||||
TOTAL NON-ACCRUAL LOANS | $ | 386 | $ | 385 | $ | 1,316 | ||||||||
CLASSIFIED LOANS (GRADED SUBSTANDARD & DOUBTFUL) | $ | 12,401 | $ | 13,917 | $ | 33,483 | ||||||||
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE | $ | 301 | $ | 88 | $ | 205 | ||||||||
LOAN LOSS RESERVE TO LOANS | 0.91 | % | 0.92 | % | 1.00 | % | ||||||||
LOAN LOSS RESERVE TO NON-ACCRUAL LOANS | 41.00 | x | 41.11 | x | 11.58 | x | ||||||||
NON-ACCRUAL LOANS TO TOTAL LOANS | 0.02 | % | 0.02 | % | 0.09 | % | ||||||||
TOTAL DEPOSITS | $ | 2,212,846 | $ | 2,137,723 | $ | 1,890,970 | ||||||||
LOAN-TO-DEPOSIT RATIO | 78.1 | % | 80.3 | % | 80.6 | % | ||||||||
STOCKHOLDERS' EQUITY | $ | 308,603 | $ | 304,198 | $ | 245,049 | ||||||||
BOOK VALUE PER SHARE | $ | 44.20 | $ | 43.51 | $ | 39.68 | ||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS3 | 10.9 | % | 11.0 | % | 11.0 | % | ||||||||
TOTAL RISK BASED CAPITAL RATIO-BANK | 13.7 | % | 13.5 | % | 14.7 | % | ||||||||
TOTAL RISK BASED CAPITAL RATIO-BANCORP | 15.3 | % | 15.2 | % | 15.1 | % | ||||||||
FULL-TIME EQUIVALENT EMPLOYEES | 287 | 288 | 272 | |||||||||||
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 $15.1 million, $15.5 million and $16.4 million at September 30, 2018, June 30, 2018 and September 30, 2017, respectively. Excludes purchased credit-impaired (PCI) loans with carrying values of $2.1 million, $2.1 million and $2.3 million that were accreting interest at September 30, 2018, June 30, 2018 and September 30, 2017, respectively. These amounts are excluded as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status. | ||||||||||||||
3 Tangible common equity to tangible assets is considered to be a meaningful non-GAAP financial measure of capital adequacy and is useful for investors to assess Bancorp's ability to absorb potential losses. Tangible common equity includes common stock, retained earnings and unrealized gain on available for sale securities, net of tax, less goodwill and intangible assets of $35.9 million, $36.2 million and $8.7 million at September 30, 2018, June 30, 2018 and September 30, 2018, respectively. Tangible assets exclude goodwill and intangible assets. |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CONDITION |
At September 30, 2018, June 30, 2018 and September 30, 2017 |
(in thousands, except share data; unaudited) | September 30, 2018 | June 30, 2018 | September 30, 2017 | ||||||
Assets | |||||||||
Cash and due from banks | $ | 142,718 | $ | 83,855 | $ | 149,124 | |||
Investment securities | |||||||||
Held-to-maturity, at amortized cost | 164,222 | 170,652 | 155,122 | ||||||
Available-for-sale (at fair value; amortized cost $416,732, $397,268 and $257,468 at September 30, 2018, June 30, 2018 and September 30, 2017, respectively) | 405,571 | 388,137 | 258,092 | ||||||
Total investment securities | 569,793 | 558,789 | 413,214 | ||||||
Loans, net of allowance for loan losses of $15,817, $15,813 and $15,248 at September 30, 2018, June 30, 2018 and September 30, 2017, respectively | 1,713,054 | 1,701,798 | 1,509,199 | ||||||
Bank premises and equipment, net | 7,602 | 7,965 | 8,230 | ||||||
Goodwill | 30,140 | 30,140 | 6,436 | ||||||
Core deposit intangible | 5,802 | 6,032 | 2,226 | ||||||
Interest receivable and other assets | 76,606 | 76,463 | 67,472 | ||||||
Total assets | $ | 2,545,715 | $ | 2,465,042 | $ | 2,155,901 | |||
Liabilities and Stockholders' Equity | |||||||||
Liabilities | |||||||||
Deposits | |||||||||
Non-interest bearing | $ | 1,109,909 | $ | 1,057,745 | $ | 924,073 | |||
Interest bearing | |||||||||
Transaction accounts | 138,838 | 132,272 | 102,236 | ||||||
Savings accounts | 178,171 | 179,187 | 169,488 | ||||||
Money market accounts | 659,788 | 631,479 | 555,013 | ||||||
Time accounts | 126,140 | 137,040 | 140,160 | ||||||
Total deposits | 2,212,846 | 2,137,723 | 1,890,970 | ||||||
Subordinated debentures | 5,831 | 5,802 | 5,703 | ||||||
Interest payable and other liabilities | 18,435 | 17,319 | 14,179 | ||||||
Total liabilities | 2,237,112 | 2,160,844 | 1,910,852 | ||||||
Stockholders' Equity | |||||||||
Preferred stock, no par value, Authorized - 5,000,000 shares, none issued | — | — | — | ||||||
Common stock, no par value, Authorized - 15,000,000 shares; Issued and outstanding - 6,982,179, 6,991,821 and 6,175,751 at September 30, 2018, June 30, 2018 and September 30, 2017, respectively | 145,498 | 146,195 | 90,052 | ||||||
Retained earnings | 172,723 | 166,281 | 156,227 | ||||||
Accumulated other comprehensive loss, net of taxes | (9,618 | ) | (8,278 | ) | (1,230 | ) | |||
Total stockholders' equity | 308,603 | 304,198 | 245,049 | ||||||
Total liabilities and stockholders' equity | $ | 2,545,715 | $ | 2,465,042 | $ | 2,155,901 |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
Three months ended | Nine months ended | |||||||||||||||
(in thousands, except per share amounts; unaudited) | September 30, 2018 | June 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||
Interest income | ||||||||||||||||
Interest and fees on loans | $ | 20,284 | $ | 19,624 | $ | 16,738 | $ | 58,795 | $ | 49,010 | ||||||
Interest on investment securities | ||||||||||||||||
Securities of U.S. government agencies | 2,953 | 2,860 | 1,525 | 8,288 | 4,577 | |||||||||||
Obligations of state and political subdivisions | 546 | 604 | 511 | 1,788 | 1,632 | |||||||||||
Corporate debt securities and other | 25 | 35 | 31 | 104 | 104 | |||||||||||
Interest on Federal funds sold and due from banks | 400 | 285 | 406 | 1,088 | 623 | |||||||||||
Total interest income | 24,208 | 23,408 | 19,211 | 70,063 | 55,946 | |||||||||||
Interest expense | ||||||||||||||||
Interest on interest-bearing transaction accounts | 58 | 48 | 24 | 158 | 74 | |||||||||||
Interest on savings accounts | 18 | 18 | 17 | 54 | 48 | |||||||||||
Interest on money market accounts | 337 | 236 | 133 | 789 | 360 | |||||||||||
Interest on time accounts | 130 | 140 | 138 | 426 | 423 | |||||||||||
Interest on FHLB and other borrowings | 1 | 1 | — | 2 | — | |||||||||||
Interest on subordinated debentures | 125 | 123 | 111 | 362 | 328 | |||||||||||
Total interest expense | 669 | 566 | 423 | 1,791 | 1,233 | |||||||||||
Net interest income | 23,539 | 22,842 | 18,788 | 68,272 | 54,713 | |||||||||||
Provision for loan losses | — | — | — | — | — | |||||||||||
Net interest income after provision for loan losses | 23,539 | 22,842 | 18,788 | 68,272 | 54,713 | |||||||||||
Non-interest income | ||||||||||||||||
Service charges on deposit accounts | 475 | 455 | 438 | 1,407 | 1,337 | |||||||||||
Wealth Management and Trust Services | 490 | 488 | 539 | 1,493 | 1,546 | |||||||||||
Debit card interchange fees | 402 | 360 | 390 | 1,158 | 1,146 | |||||||||||
Merchant interchange fees | 99 | 118 | 88 | 297 | 296 | |||||||||||
Earnings on bank-owned life insurance | 227 | 230 | 209 | 685 | 628 | |||||||||||
Dividends on FHLB stock | 194 | 192 | 177 | 582 | 585 | |||||||||||
(Losses) gains on investment securities, net | (90 | ) | 11 | — | (79 | ) | 10 | |||||||||
Other income | 439 | 384 | 225 | 1,173 | 729 | |||||||||||
Total non-interest income | 2,236 | 2,238 | 2,066 | 6,716 | 6,277 | |||||||||||
Non-interest expense | ||||||||||||||||
Salaries and related benefits | 8,069 | 8,316 | 7,344 | 25,402 | 22,106 | |||||||||||
Occupancy and equipment | 1,444 | 1,511 | 1,364 | 4,462 | 4,063 | |||||||||||
Depreciation and amortization | 532 | 546 | 489 | 1,625 | 1,433 | |||||||||||
Federal Deposit Insurance Corporation insurance | 186 | 191 | 167 | 568 | 490 | |||||||||||
Data processing | 950 | 1,023 | 946 | 3,354 | 2,848 | |||||||||||
Professional services | 727 | 810 | 801 | 2,836 | 1,845 | |||||||||||
Directors' expense | 173 | 183 | 175 | 530 | 557 | |||||||||||
Information technology | 262 | 264 | 179 | 795 | 563 | |||||||||||
Provision for losses on off-balance sheet commitments | — | — | 100 | — | 57 | |||||||||||
Other expense | 1,628 | 1,665 | 1,471 | 4,989 | 4,716 | |||||||||||
Total non-interest expense | 13,971 | 14,509 | 13,036 | 44,561 | 38,678 | |||||||||||
Income before provision for income taxes | 11,804 | 10,571 | 7,818 | 30,427 | 22,312 | |||||||||||
Provision for income taxes | 3,124 | 2,680 | 2,686 | 7,467 | 7,446 | |||||||||||
Net income | $ | 8,680 | $ | 7,891 | $ | 5,132 | $ | 22,960 | $ | 14,866 | ||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 1.25 | $ | 1.14 | $ | 0.84 | $ | 3.31 | $ | 2.43 | ||||||
Diluted | $ | 1.23 | $ | 1.12 | $ | 0.83 | $ | 3.27 | $ | 2.41 | ||||||
Weighted average shares: | ||||||||||||||||
Basic | 6,950 | 6,944 | 6,123 | 6,936 | 6,109 | |||||||||||
Diluted | 7,055 | 7,033 | 6,191 | 7,031 | 6,179 | |||||||||||
Dividends declared per common share | $ | 0.32 | $ | 0.31 | $ | 0.29 | $ | 0.92 | $ | 0.83 | ||||||
Comprehensive income: | ||||||||||||||||
Net income | $ | 8,680 | $ | 7,891 | $ | 5,132 | $ | 22,960 | $ | 14,866 | ||||||
Other comprehensive (loss) income | ||||||||||||||||
Change in net unrealized gain or loss on available-for-sale securities | (2,120 | ) | (1,131 | ) | (362 | ) | (9,421 | ) | 3,273 | |||||||
Reclassification adjustment for losses (gains) on available-for-sale securities in net income | 90 | (11 | ) | — | 79 | (10 | ) | |||||||||
Net unrealized loss on securities transferred from available-for-sale to held-to-maturity | — | (278 | ) | — | (278 | ) | — | |||||||||
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity | 128 | 132 | 135 | 396 | 299 | |||||||||||
Subtotal | (1,902 | ) | (1,288 | ) | (227 | ) | (9,224 | ) | 3,562 | |||||||
Deferred tax (benefit) expense | (562 | ) | (384 | ) | (96 | ) | (2,730 | ) | 1,499 | |||||||
Other comprehensive (loss) income, net of tax | (1,340 | ) | (904 | ) | (131 | ) | (6,494 | ) | 2,063 | |||||||
Comprehensive income | $ | 7,340 | $ | 6,987 | $ | 5,001 | $ | 16,466 | $ | 16,929 |
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, 2018 | June 30, 2018 | September 30, 2017 | |||||||||||||||||||||||
Interest | Interest | Interest | |||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||
(dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest-bearing due from banks 1 | $ | 79,674 | $ | 400 | 1.96 | % | $ | 62,665 | $ | 285 | 1.80 | % | $ | 125,846 | $ | 406 | 1.26 | % | |||||||
Investment securities 2, 3 | 558,741 | 3,624 | 2.59 | % | 574,669 | 3,611 | 2.51 | % | 400,659 | 2,294 | 2.29 | % | |||||||||||||
Loans 1, 3, 4 | 1,715,295 | 20,504 | 4.68 | % | 1,700,057 | 19,852 | 4.62 | % | 1,500,167 | 17,228 | 4.49 | % | |||||||||||||
Total interest-earning assets 1 | 2,353,710 | 24,528 | 4.08 | % | 2,337,391 | 23,748 | 4.02 | % | 2,026,672 | 19,928 | 3.85 | % | |||||||||||||
Cash and non-interest-bearing due from banks | 41,316 | 40,383 | 45,009 | ||||||||||||||||||||||
Bank premises and equipment, net | 7,866 | 8,203 | 8,430 | ||||||||||||||||||||||
Interest receivable and other assets, net | 86,039 | 87,183 | 60,622 | ||||||||||||||||||||||
Total assets | $ | 2,488,931 | $ | 2,473,160 | $ | 2,140,733 | |||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 134,293 | $ | 58 | 0.17 | % | $ | 142,133 | $ | 48 | 0.14 | % | $ | 96,504 | $ | 24 | 0.10 | % | |||||||
Savings accounts | 179,429 | 18 | 0.04 | % | 178,956 | 18 | 0.04 | % | 171,187 | 17 | 0.04 | % | |||||||||||||
Money market accounts | 609,821 | 337 | 0.22 | % | 612,612 | 236 | 0.15 | % | 560,486 | 133 | 0.09 | % | |||||||||||||
Time accounts including CDARS | 132,588 | 130 | 0.39 | % | 140,799 | 140 | 0.40 | % | 140,736 | 138 | 0.39 | % | |||||||||||||
Overnight borrowings 1 | 112 | 1 | 2.06 | % | 231 | 1 | 1.84 | % | — | — | — | % | |||||||||||||
Subordinated debentures 1 | 5,815 | 125 | 8.43 | % | 5,786 | 123 | 8.40 | % | 5,682 | 111 | 7.63 | % | |||||||||||||
Total interest-bearing liabilities | 1,062,058 | 669 | 0.25 | % | 1,080,517 | 566 | 0.21 | % | 974,595 | 423 | 0.17 | % | |||||||||||||
Demand accounts | 1,101,288 | 1,072,976 | 909,900 | ||||||||||||||||||||||
Interest payable and other liabilities | 18,022 | 19,443 | 13,055 | ||||||||||||||||||||||
Stockholders' equity | 307,563 | 300,224 | 243,183 | ||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 2,488,931 | $ | 2,473,160 | $ | 2,140,733 | |||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 23,859 | 3.97 | % | $ | 23,182 | 3.92 | % | $ | 19,505 | 3.77 | % | |||||||||||||
Reported net interest income/margin 1 | $ | 23,539 | 3.91 | % | $ | 22,842 | 3.87 | % | $ | 18,788 | 3.63 | % | |||||||||||||
Tax-equivalent net interest rate spread | 3.83 | % | 3.81 | % | 3.68 | % | |||||||||||||||||||
Nine months ended | Nine months ended | ||||||||||||||||||||||||
September 30, 2018 | September 30, 2017 | ||||||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||
(dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest-bearing due from banks 1 | $ | 82,304 | $ | 1,088 | 1.74 | % | 70,947 | 623 | 1.16 | % | |||||||||||||||
Investment securities 2, 3 | 555,414 | 10,512 | 2.52 | % | 407,798 | 7,011 | 2.29 | % | |||||||||||||||||
Loans 1, 3, 4 | 1,697,093 | 59,475 | 4.62 | % | 1,488,771 | 50,317 | 4.46 | % | |||||||||||||||||
Total interest-earning assets 1 | 2,334,811 | 71,075 | 4.01 | % | 1,967,516 | 57,951 | 3.88 | % | |||||||||||||||||
Cash and non-interest-bearing due from banks | 42,488 | 43,140 | |||||||||||||||||||||||
Bank premises and equipment, net | 8,188 | 8,420 | |||||||||||||||||||||||
Interest receivable and other assets, net | 87,403 | 59,593 | |||||||||||||||||||||||
Total assets | $ | 2,472,890 | 2,078,669 | ||||||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 148,141 | $ | 158 | 0.14 | % | 97,458 | 74 | 0.10 | % | |||||||||||||||
Savings accounts | 179,543 | 54 | 0.04 | % | 165,212 | 48 | 0.04 | % | |||||||||||||||||
Money market accounts | 601,896 | 789 | 0.18 | % | 539,560 | 360 | 0.09 | % | |||||||||||||||||
Time accounts including CDARS | 142,563 | 426 | 0.40 | % | 144,559 | 423 | 0.39 | % | |||||||||||||||||
Overnight borrowings 1 | 115 | 2 | 1.92 | % | — | — | — | % | |||||||||||||||||
Subordinated debentures 1 | 5,785 | 362 | 8.25 | % | 5,645 | 328 | 7.65 | % | |||||||||||||||||
Total interest-bearing liabilities | 1,078,043 | 1,791 | 0.22 | % | 952,434 | 1,233 | 0.17 | % | |||||||||||||||||
Demand accounts | 1,074,778 | 874,995 | |||||||||||||||||||||||
Interest payable and other liabilities | 18,127 | 13,151 | |||||||||||||||||||||||
Stockholders' equity | 301,942 | 238,089 | |||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 2,472,890 | 2,078,669 | ||||||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 69,284 | 3.91 | % | 56,718 | 3.80 | % | ||||||||||||||||||
Reported net interest income/margin 1 | $ | 68,272 | 3.86 | % | 54,713 | 3.67 | % | ||||||||||||||||||
Tax-equivalent net interest rate spread | 3.79 | % | 3.71 | % | |||||||||||||||||||||
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 21 percent in 2018 and 35 percent in 2017. | |||||||||||||||||||||||||
4 Average balances on loans outstanding include non-performing loans. The amortized portion of net loan origination fees is included in interest income on loans, representing an adjustment to the yield. |
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