Bank of Marin Bancorp, “Bancorp” (NASDAQ: BMRC), parent company
of Bank of Marin, “Bank,” announced earnings of $8.2 million in the
second quarter of 2019, compared to $7.5 million in the first
quarter of 2019 and $7.9 million in the second quarter of 2018.
Diluted earnings per share were $0.60 in the second quarter of 2019
compared to $0.54 in the prior quarter and $0.56 in the same
quarter last year (adjusted for stock-split). Earnings for the
first six months of 2019 totaled $15.7 million compared to $14.3
million in the same period last year. Diluted earnings per share
were $1.13 and $1.02 (adjusted for stock-split) in the first six
months of 2019 and 2018, respectively.
“We delivered another strong quarter for our shareholders,” said
Russell A. Colombo, President and Chief Executive Officer. “In this
competitive environment, we've maintained our low cost, stable
deposit base and disciplined underwriting standards, and our credit
quality remains excellent. We’re well-positioned to meet the steady
loan demand we’re seeing across our markets.”
Bancorp also provided the following highlights from the second
quarter of 2019:
- Loans totaled $1,764.9 million at June 30, 2019, compared to
$1,772.5 million at March 31, 2019. New loan originations of $42.2
million in the second quarter were distributed across Commercial
Banking and Consumer Banking. Payoffs of $43.3 million in the
second quarter included the successful completion of a large
construction project.
- While total deposits decreased $76.6 million in the second
quarter to $2,102.0 million, non-interest bearing deposits declined
only $19.7 million. Non-interest bearing deposits represented 50%
of total deposits versus 49% last quarter, and have been at or near
this level since the beginning of last year. The cost of average
deposits increased to 0.20% in the second quarter compared to 0.18%
in the first quarter of 2019.
- Strong credit quality remains a cornerstone of the Bank’s
consistent performance. Non-accrual loans represented only 0.03% of
the Bank’s loan portfolio at June 30, 2019. There were no
provisions for loan losses or off-balance sheet commitments
recorded in the second quarter of 2019.
- All capital ratios were above regulatory requirements. The
total risk-based capital ratio for Bancorp was 15.2% at June 30,
2019, compared to 14.9% at March 31, 2019. Tangible common equity
to tangible assets was 12.0% at June 30, 2019, compared to 11.4% at
March 31, 2019 (refer to footnote 3 in Financial Highlights table
for a definition of this non-GAAP financial measure).
- Based on the size of the market and reduced branch foot traffic
driven by digital banking offerings, we have decided to close the
Petaluma Downtown Branch on August 9, 2019. We will focus our
resources on growing our two remaining branches in Petaluma, where
most Downtown customers have already moved their business. Our
commitment to the Petaluma community remains strong, and employees
have accepted positions in other Bank of Marin branches.
- On June 17, 2019, we upgraded to a new digital banking platform
that offers our customers enhanced features and additional
functionality for an improved online and mobile banking experience.
The conversion is substantially complete, and the implementation
and operations teams are working closely with our customers to make
their transition to the new platform as smooth as possible.
- The Board of Directors declared a cash dividend of $0.21 per
share on July 19, 2019. This represents the 57th consecutive
quarterly dividend paid by Bank of Marin Bancorp. The dividend is
payable on August 9, 2019, to shareholders of record at the close
of business on August 2, 2019.
- As a result of her expanded responsibilities, Cecilia Situ,
First Vice President, has been named Treasurer of the Bank. David
A. Merck, Vice President and Financial Reporting Manager, has
assumed the position of Principal Accounting Officer that was
previously occupied by Ms. Situ.
Loans and Credit Quality
Loans decreased by $7.6 million in the second quarter and
totaled $1,764.9 million at June 30, 2019. For the second quarter
and first six months of 2019, new loan originations of $42.2
million and $76.1 million, respectively, were below 2018 loan
originations of $75.8 million and $113.2 million for the same
periods. Loan payoffs of $43.3 million in the second quarter and
$69.3 million in the first six months of 2019, moderately exceeded
$37.3 million and $68.8 million in the respective 2018 periods, and
included the successful completion of a large construction
project.
Non-accrual loans totaled $574 thousand, or 0.03% of the loan
portfolio at June 30, 2019, compared to $719 thousand, or 0.04% at
March 31, 2019, and $385 thousand, or 0.02% a year ago. Classified
loans totaled $10.3 million at June 30, 2019, compared to $14.8
million at March 31, 2019 and $13.9 million at June 30, 2018. The
$4.5 million decrease in the second quarter of 2019 was primarily
due to a $2.2 million paydown received in April 2019 on a $2.7
million substandard classified loan (the remaining balance was
upgraded to a Pass risk rating). Additionally, there were upgrades
on loan balances of approximately $1.6 million with improvements in
credit quality and a payoff of $188 thousand on a substandard
classified loan. There were no loans classified doubtful at June
30, 2019 or March 31, 2019. Accruing loans past due 30 to 89 days
totaled $343 thousand at June 30, 2019, compared to $2.2 million at
March 31, 2019 and $88 thousand a year ago.
There was no provision for loan losses recorded in the second
quarter of 2019, consistent with last quarter and the same quarter
a year ago. Recoveries were $18 thousand in the second quarter of
2019, compared to net charge-offs of $4 thousand for the prior
quarter and net recoveries of $42 thousand in the second quarter a
year ago. The ratio of loan loss reserves to loans, including
acquired loans, was 0.90% at June 30, 2019, 0.89% at March 31,
2019, and 0.92% at June 30, 2018.
Investments
The investment securities portfolio totaled $527.0 million at
June 30, 2019, compared to $595.7 million at March 31, 2019. The
decrease from the prior quarter was primarily attributed to sales
of $61.8 million in lower yielding shorter term securities to
manage our interest rate spread and cash position.
Deposits
Total deposits were $2,102.0 million at June 30, 2019, compared
to $2,178.6 million at March 31, 2019. The $76.6 million decrease
during the second quarter primarily resulted from normal cash
fluctuations in some of our large business accounts and a $16.1
million increase in one-way deposit sales to third party deposit
networks. The average cost of deposits in the second quarter of
2019 was 0.20%, an increase of 2 basis points from the prior
quarter.
Earnings
“Bank of Marin’s commitment to our markets and our customers is
yielding great results,” said Tani Girton, EVP and Chief Financial
Officer. “With a return on assets of 1.26% and efficiency ratio of
58.91% year-to-date, and an increase in tax-equivalent net interest
margin of 14 basis points year-over-year, we are seeing what can be
achieved when you combine consistent credit and expense management
with a focus on relationship banking.”
Net interest income totaled $23.8 million in both the first and
second quarters of 2019 and $22.8 million in the second quarter of
2018. The $947 thousand increase from the comparative quarter a
year ago was reflective of higher average loan balances and higher
yields across earning asset categories, partially offset by higher
rates on deposits.
Net interest income totaled $47.6 million in the first six
months of 2019, compared to $44.7 million for the same period in
2018. The $2.9 million increase primarily relates to higher average
loan and investment securities balances and higher yields across
earning asset categories, partially offset by higher rates on
deposits.
The tax-equivalent net interest margin was 4.04% in the second
quarter of 2019, compared to 4.02% in the prior quarter and 3.92%
in the same quarter a year ago. The 2 basis point increase from the
prior quarter was primarily due to a more favorable mix of
interest-earning assets toward higher yielding loans. The 12 basis
point increase from the same quarter a year ago was primarily due
to higher interest rates.
The tax-equivalent net interest margin was 4.03% in the first
six months of 2019, compared to 3.89% for the same period in 2018.
The 14 basis point increase from the same period a year ago was
mostly attributed to growth in earning assets and higher interest
rates.
Loans obtained through the acquisition of other banks are
classified as either purchased credit impaired (“PCI”) or non-PCI
loans and are recorded at fair value at acquisition date. For
acquired loans not considered credit impaired, the level of
accretion varies due to maturities and early payoffs. Accretion on
PCI loans fluctuates based on changes in cash flows expected to be
collected. Gains on payoffs of PCI loans are recorded as interest
income when the payoff amounts exceed the recorded investment. PCI
loans totaled $2.1 million at June 30, 2019, March 31, 2019 and
June 30, 2018.
As our acquired loans from prior acquisitions continue to pay
off, we expect the accretion on these loans to continue to decline.
Accretion and gains on payoffs of purchased loans recorded to
interest income were as follows:
Three months ended
June 30, 2019
March 31, 2019
June 30, 2018
(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
$
56
1 bps
$
59
1 bps
$
83
1 bps
Accretion on non-PCI loans 2
$
(3
)
0 bps
$
42
1 bps
$
133
2 bps
Gains on payoffs of PCI loans
$
—
0 bps
$
—
0 bps
$
1
0 bps
Six months ended
June 30, 2019
June 30, 2018
(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
$
115
1 bps
$
195
2 bps
Accretion on non-PCI loans 2
$
39
0 bps
$
233
2 bps
Gains on payoffs of PCI loans
$
—
0 bps
$
129
1 bps
1 Accretable yield on PCI loans totaled
$819 thousand, $875 thousand and $1.1 million at June 30, 2019,
March 31, 2019 and June 30, 2018, respectively.
2 Unaccreted purchase discounts on non-PCI
loans totaled $669 thousand, $666 thousand and $1.0 million at June
30, 2019, March 31, 2019 and June 30, 2018, respectively.
Non-interest income totaled $2.3 million in the second quarter
of 2019, $1.8 million in the prior quarter, and $2.2 million in the
same quarter a year ago. The increase of $503 thousand from the
prior quarter was due to $283 thousand non-refundable costs for
underwriting two new bank-owned life insurance policies purchased
in the first quarter and gains on the sale of investment securities
in the second quarter. The $36 thousand increase from the same
quarter a year ago was attributed to fee income and gains on the
sale of investment securities, partially offset by a decrease in
deposit network income.
Non-interest income decreased $435 thousand to $4.0 million in
the first six months of 2019, compared to $4.5 million in 2018,
primarily due to the underwriting costs of new bank-owned life
insurance policies and the decrease in deposit network income.
Non-interest expense decreased $612 thousand to $14.9 million in
the second quarter of 2019, from $15.5 million in the prior
quarter. The decrease was primarily due to lower salaries and
benefits as the first quarter included $498 thousand due to
participants meeting stock-based compensation retirement
eligibility requirements and $239 thousand more in 401K
contributions that are typical in the first quarter. The higher
expenses were partially offset by a $372 thousand bonus reversal,
also in the first quarter of 2019. Additionally, the first quarter
included a $129 thousand provision for losses on off-balance sheet
commitments.
Non-interest expense increased $407 thousand from $14.5 million
in the second quarter of 2018. The increase primarily related to
$655 thousand more in salaries (due to five additional full-time
equivalent staff and annual merit increases), partially offset by
$268 thousand less in professional fees (mostly attributed to core
processing contract negotiations in 2018).
Non-interest expense totaled $30.4 million in the first half of
2019, compared to $30.6 million in the first half of 2018. The $146
thousand decrease was primarily attributed to fewer professional
fees and data processing expenses (mostly related to Bank of Napa
acquisition expenses in 2018), partially offset by the higher
expenses in the first half of 2019 mentioned above.
Share Repurchase Program
Bancorp's Board of Directors approved the extension of the $25.0
million Stock Repurchase Program to February 28, 2020. Bancorp
repurchased 134,620 shares totaling $5.6 million in the second
quarter of 2019 for a cumulative total of 419,741 shares and $17.5
million as of June 30, 2019.
Earnings Call and Webcast Information
Bank of Marin Bancorp will present its second quarter earnings
call via webcast on Monday, July 22, 2019 at 8:30 a.m. PT/11:30
a.m. ET. Investors will have the opportunity to listen to the
webcast online through Bank of Marin’s website at
https://www.bankofmarin.com under “Investor Relations.” To listen
to the webcast live, please go to the website at least 15 minutes
early to register, download and install any necessary audio
software. For those who cannot listen to the live broadcast, a
replay will be available at the same website location shortly after
the call.
About Bank of Marin Bancorp
Founded in 1990 and headquartered in Novato, Bank of Marin is
the wholly owned subsidiary of Bank of Marin Bancorp (NASDAQ:
BMRC). A leading business and community bank in the San Francisco
Bay Area, with assets of $2.5 billion, Bank of Marin has 23 retail
branches, 5 commercial banking offices and 1 loan production office
located across the North Bay, San Francisco and East Bay regions.
Bank of Marin provides commercial banking, personal banking, and
wealth management and trust services. Specializing in providing
legendary service to its customers and investing in its local
communities, Bank of Marin has consistently been ranked one of the
“Top Corporate Philanthropists” by the San Francisco Business Times
and one of the “Best Places to Work” by the North Bay Business
Journal. Bank of Marin Bancorp is included in the Russell 2000
Small-Cap Index and NASDAQ ABA Community Bank Index. For more
information, go to 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, economic
uncertainty in the United States and abroad, changes in interest
rates, deposit flows, real estate values, costs or effects of
acquisitions, competition, changes in accounting principles,
policies or guidelines, legislation or regulation (including the
Tax Cuts & Jobs Act of 2017), and other economic, competitive,
governmental, regulatory and technological factors (including
external fraud and cyber-security threats) 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.
BANK OF MARIN BANCORP
FINANCIAL HIGHLIGHTS
June 30, 2019
(dollars in thousands, except per share
data; unaudited)
June 30, 2019
March 31, 2019
June 30, 2018
Quarter-to-Date
Net income
$
8,235
$
7,479
$
7,891
Diluted earnings per common share 4
$
0.60
$
0.54
$
0.56
Return on average assets
1.32
%
1.19
%
1.28
%
Return on average equity
10.26
%
9.54
%
10.54
%
Efficiency ratio
57.23
%
60.62
%
57.85
%
Tax-equivalent net interest margin 1
4.04
%
4.02
%
3.92
%
Cost of deposits
0.20
%
0.18
%
0.08
%
Net (recoveries) charge-offs
$
(18
)
$
4
$
(42
)
Net (recoveries) charge-offs to average
loans
—
%
—
%
—
%
Year-to-Date
Net income
$
15,714
$
14,280
Diluted earnings per common share 4
$
1.13
$
1.02
Return on average assets
1.26
%
1.17
%
Return on average equity
9.90
%
9.63
%
Efficiency ratio
58.91
%
62.16
%
Tax-equivalent net interest margin 1
4.03
%
3.89
%
Cost of deposits
0.19
%
0.08
%
Net (recoveries) charge-offs
$
(14
)
$
(46
)
Net (recoveries) charge-offs to average
loans
—
%
—
%
At Period End
Total assets
$
2,463,987
$
2,534,076
$
2,465,042
Loans:
Commercial and industrial
$
234,832
$
237,646
$
241,994
Real estate:
Commercial owner-occupied
306,327
310,588
317,587
Commercial investor-owned
878,969
878,494
839,667
Construction
63,563
72,271
57,015
Home equity
125,968
124,512
126,031
Other residential
124,120
117,558
108,829
Installment and other consumer loans
31,100
31,469
26,488
Total loans
$
1,764,879
$
1,772,538
$
1,717,611
Non-performing loans: 2
Commercial and industrial
$
354
$
309
$
—
Home equity
157
346
385
Installment and other consumer loans
63
64
—
Total non-accrual loans
$
574
$
719
$
385
Classified loans (graded substandard and
doubtful)
$
10,251
$
14,811
$
13,917
Total accruing loans 30-89 days past
due
$
343
$
2,194
$
88
Allowance for loan losses to total
loans
0.90
%
0.89
%
0.92
%
Allowance for loan losses to
non-performing loans
27.59x
21.99x
41.11x
Non-accrual loans to total loans
0.03
%
0.04
%
0.02
%
Total deposits
$
2,102,040
$
2,178,629
$
2,137,723
Loan-to-deposit ratio
84.0
%
81.4
%
80.3
%
Stockholders' equity
$
327,667
$
320,664
$
304,198
Book value per share 4
$
23.99
$
23.26
$
21.76
Tangible common equity to tangible assets
3
12.0
%
11.4
%
11.0
%
Total risk-based capital ratio - Bank
14.6
%
13.9
%
13.5
%
Total risk-based capital ratio -
Bancorp
15.2
%
14.9
%
15.2
%
Full-time equivalent employees
293
296
288
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 $11.7 million, $14.0 million and $15.5
million at June 30, 2019, March 31, 2019 and June 30, 2018,
respectively. Excludes purchased credit-impaired (PCI) loans with
carrying values of $2.1 million that were accreting interest at
June 30, 2019, March 31, 2019, and June 30, 2018. 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 $35.3 million, $35.5 million and $36.2 million at June
30, 2019, March 31, 2019, and June 30, 2018, respectively. Tangible
assets exclude goodwill and intangible assets.
4 Share and per share data have been
adjusted to reflect the two-for-one stock split effective November
27, 2018.
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF CONDITION
At June 30, 2019, March 31,
2019 and June 30, 2018
(in thousands, except share data;
unaudited)
June 30, 2019
March 31, 2019
June 30, 2018
Assets
Cash and due from banks
$
58,757
$
51,639
$
83,855
Investment securities
Held-to-maturity, at amortized cost
148,879
152,845
170,652
Available-for-sale (at fair value;
amortized cost $368,712, $442,386 and $397,268 at June 30, 2019,
March 31, 2019 and June 30, 2018 respectively)
378,131
442,885
388,137
Total investment securities
527,010
595,730
558,789
Loans, net of allowance for loan losses of
$15,835, $15,817 and $15,813 at June 30, 2019, March 31, 2019 and
June 30, 2018, respectively
1,749,044
1,756,721
1,701,798
Bank premises and equipment, net
6,872
7,237
7,965
Goodwill
30,140
30,140
30,140
Core deposit intangible
5,128
5,349
6,032
Operating lease right-of-use assets
12,515
12,465
—
Interest receivable and other assets
74,521
74,795
76,463
Total assets
$
2,463,987
$
2,534,076
$
2,465,042
Liabilities and Stockholders'
Equity
Liabilities
Deposits
Non-interest bearing
$
1,056,655
$
1,076,382
$
1,057,745
Interest bearing
Transaction accounts
121,232
130,001
132,272
Savings accounts
172,255
180,758
179,187
Money market accounts
647,592
680,806
631,479
Time accounts
104,306
110,682
137,040
Total deposits
2,102,040
2,178,629
2,137,723
Borrowings and other obligations
297
309
—
Subordinated debentures
2,674
2,657
5,802
Operating lease liabilities
14,332
14,349
—
Interest payable and other liabilities
16,977
17,468
17,319
Total liabilities
2,136,320
2,213,412
2,160,844
Stockholders' Equity
Preferred stock, no par value, Authorized
- 5,000,000 shares, none issued
—
—
—
Common stock, no par value, Authorized -
30,000,000 shares; Issued and outstanding - 13,659,143, 13,786,808
and 13,983,642 at June 30, 2019, March 31, 2019 and June 30, 2018,
respectively
132,151
137,125
146,195
Retained earnings
190,416
184,793
166,281
Accumulated other comprehensive income
(loss), net of taxes
5,100
(1,254
)
(8,278
)
Total stockholders' equity
327,667
320,664
304,198
Total liabilities and stockholders'
equity
$
2,463,987
$
2,534,076
$
2,465,042
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three months ended
Six months ended
(in thousands, except per share amounts;
unaudited)
June 30, 2019
March 31, 2019
June 30, 2018
June 30, 2019
June 30, 2018
Interest income
Interest and fees on loans
$
20,988
$
20,695
$
19,624
$
41,683
$
38,511
Interest on investment securities
3,763
4,097
3,499
7,860
6,656
Interest on federal funds sold and due
from banks
190
139
285
329
688
Total interest income
24,941
24,931
23,408
49,872
45,855
Interest expense
Interest on interest-bearing transaction
accounts
91
77
48
168
100
Interest on savings accounts
17
18
18
35
36
Interest on money market accounts
787
764
236
1,551
452
Interest on time accounts
175
119
140
294
296
Interest on borrowings and other
obligations
24
47
1
71
1
Interest on subordinated debentures
58
60
123
118
237
Total interest expense
1,152
1,085
566
2,237
1,122
Net interest income
23,789
23,846
22,842
47,635
44,733
Provision for loan losses
—
—
—
—
—
Net interest income after provision for
loan losses
23,789
23,846
22,842
47,635
44,733
Non-interest income
Service charges on deposit accounts
485
479
455
964
932
Wealth Management and Trust Services
473
438
488
911
1,003
Debit card interchange fees, net
414
380
360
794
756
Merchant interchange fees, net
87
87
118
174
198
Earnings on (cost of) bank-owned life
insurance, net
235
(60
)
230
175
458
Dividends on FHLB stock
193
196
192
389
388
Gains (losses) on investment securities,
net
61
(6
)
11
55
11
Other income
326
257
384
583
734
Total non-interest income
2,274
1,771
2,238
4,045
4,480
Non-interest expense
Salaries and related benefits
8,868
9,146
8,316
18,014
17,333
Occupancy and equipment
1,578
1,531
1,511
3,109
3,018
Depreciation and amortization
572
556
546
1,128
1,093
Federal Deposit Insurance Corporation
insurance
174
179
191
353
382
Data processing
1,004
1,015
1,023
2,019
2,404
Professional services
535
586
810
1,121
2,109
Directors' expense
187
179
183
366
357
Information technology
284
259
264
543
533
Amortization of core deposit
intangible
221
222
230
443
460
Provision for losses on off-balance sheet
commitments
—
129
—
129
—
Other expense
1,493
1,726
1,435
3,219
2,901
Total non-interest expense
14,916
15,528
14,509
30,444
30,590
Income before provision for income
taxes
11,147
10,089
10,571
21,236
18,623
Provision for income taxes
2,912
2,610
2,680
5,522
4,343
Net income
$
8,235
$
7,479
$
7,891
$
15,714
$
14,280
Net income per common share:1
Basic
$
0.60
$
0.54
$
0.57
$
1.15
$
1.03
Diluted
$
0.60
$
0.54
$
0.56
$
1.13
$
1.02
Weighted average shares:1
Basic
13,655
13,737
13,888
13,696
13,858
Diluted
13,818
13,924
14,066
13,871
14,039
Comprehensive income:
Net income
$
8,235
$
7,479
$
7,891
$
15,714
$
14,280
Other comprehensive income (loss)
Change in net unrealized gains or losses
on available-for-sale securities
8,982
3,939
(1,131
)
12,921
(7,301
)
Reclassification adjustment for (gains)
losses on available-for-sale securities in net income
(61
)
6
(11
)
(55
)
(11
)
Net unrealized losses 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
104
101
132
205
268
Subtotal
9,025
4,046
(1,288
)
13,071
(7,322
)
Deferred tax expense (benefit)
2,671
1,198
(384
)
3,869
(2,168
)
Other comprehensive income (loss), net of
tax
6,354
2,848
(904
)
9,202
(5,154
)
Comprehensive income
$
14,589
$
10,327
$
6,987
$
24,916
$
9,126
1 Share and per share data have been
adjusted to reflect the two-for-one stock split effective November
27, 2018.
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, 2019
March 31, 2019
June 30, 2018
Interest
Interest
Interest
Average
Income/
Yield/
Average
Income/
Yield/
Average
Income/
Yield/
(in thousands; unaudited)
Balance
Expense
Rate
Balance
Expense
Rate
Balance
Expense
Rate
Assets
Interest-bearing due from banks 1
$
30,928
$
190
2.43
%
$
22,690
$
139
2.45
%
$
62,665
$
285
1.80
%
Investment securities 2, 3
567,813
3,844
2.71
%
619,562
4,191
2.71
%
574,669
3,611
2.51
%
Loans 1, 3, 4
1,758,874
21,180
4.76
%
1,756,316
20,887
4.76
%
1,700,057
19,852
4.62
%
Total interest-earning assets 1
2,357,615
25,214
4.23
%
2,398,568
25,217
4.21
%
2,337,391
23,748
4.02
%
Cash and non-interest-bearing due from
banks
34,437
30,947
40,383
Bank premises and equipment, net
7,108
7,512
8,203
Interest receivable and other assets,
net
107,089
104,685
87,183
Total assets
$
2,506,249
$
2,541,712
$
2,473,160
Liabilities and Stockholders' Equity
Interest-bearing transaction accounts
$
124,620
$
91
0.29
%
$
127,733
$
77
0.24
%
$
142,133
$
48
0.14
%
Savings accounts
174,102
17
0.04
%
180,355
18
0.04
%
178,956
18
0.04
%
Money market accounts
661,363
787
0.48
%
673,137
764
0.46
%
612,612
236
0.15
%
Time accounts including CDARS
115,272
175
0.61
%
113,389
119
0.43
%
140,799
140
0.40
%
Borrowings and other obligations 1
3,608
24
2.59
%
7,414
47
2.55
%
231
1
1.84
%
Subordinated debentures 1
2,664
58
8.69
%
2,647
60
9.05
%
5,786
123
8.40
%
Total interest-bearing liabilities
1,081,629
1,152
0.43
%
1,104,675
1,085
0.40
%
1,080,517
566
0.21
%
Demand accounts
1,073,909
1,086,947
1,072,976
Interest payable and other liabilities
28,621
32,163
19,443
Stockholders' equity
322,090
317,927
300,224
Total liabilities & stockholders'
equity
$
2,506,249
$
2,541,712
$
2,473,160
Tax-equivalent net interest income/margin
1
$
24,062
4.04
%
$
24,132
4.02
%
$
23,182
3.92
%
Reported net interest income/margin 1
$
23,789
3.99
%
$
23,846
3.98
%
$
22,842
3.87
%
Tax-equivalent net interest rate
spread
3.80
%
3.81
%
3.81
%
Six months ended
Six months ended
June 30, 2019
June 30, 2018
Interest
Interest
Average
Income/
Yield/
Average
Income/
Yield/
(in thousands; unaudited)
Balance
Expense
Rate
Balance
Expense
Rate
Assets
Interest-bearing due from banks 1
$
26,832
$
329
2.44
%
83,641
688
1.64
%
Investment securities 2, 3
593,545
8,034
2.71
%
553,723
6,887
2.49
%
Loans 1, 3, 4
1,757,602
42,067
4.76
%
1,687,841
38,971
4.59
%
Total interest-earning assets 1
2,377,979
50,430
4.22
%
2,325,205
46,546
3.98
%
Cash and non-interest-bearing due from
banks
32,702
43,084
Bank premises and equipment, net
7,308
8,351
Interest receivable and other assets,
net
105,894
88,096
Total assets
$
2,523,883
2,464,736
Liabilities and Stockholders' Equity
Interest-bearing transaction accounts
$
126,168
$
168
0.27
%
155,180
100
0.13
%
Savings accounts
177,211
35
0.04
%
179,601
36
0.04
%
Money market accounts
667,218
1,551
0.47
%
597,868
452
0.15
%
Time accounts including CDARS
114,336
294
0.52
%
147,633
296
0.40
%
Borrowings and other obligations 1
5,500
71
2.56
%
116
1
1.84
%
Subordinated debentures 1
2,655
118
8.87
%
5,770
237
8.16
%
Total interest-bearing liabilities
1,093,088
2,237
0.41
%
1,086,168
1,122
0.21
%
Demand accounts
1,080,392
1,061,304
Interest payable and other liabilities
30,383
18,180
Stockholders' equity
320,020
299,084
Total liabilities & stockholders'
equity
$
2,523,883
2,464,736
Tax-equivalent net interest income/margin
1
$
48,193
4.03
%
45,424
3.89
%
Reported net interest income/margin 1
$
47,635
3.98
%
44,733
3.83
%
Tax-equivalent net interest rate
spread
3.81
%
3.77
%
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 2019 and
2018.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190722005132/en/
Beth Drummey Marketing & Corporate Communications Manager
415-763-4529 | bethdrummey@bankofmarin.com
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