Bank of Marin Bancorp, "Bancorp" (Nasdaq: BMRC), parent company
of Bank of Marin, "Bank," announced earnings of $9.4 million in the
third quarter of 2019, compared to $8.2 million in the second
quarter of 2019 and $8.7 million in the third quarter of 2018.
Diluted earnings per share were $0.69 in the third quarter of 2019
compared to $0.60 in the prior quarter and $0.62 in the same
quarter last year (adjusted for stock-split). Earnings for the
first nine months of 2019 totaled $25.2 million compared to $23.0
million in the same period last year. Diluted earnings per share
were $1.82 and $1.64 (adjusted for stock-split) in the first nine
months of 2019 and 2018, respectively.
“Our third quarter performance was once again very good, with
strong deposit and loan growth while maintaining excellent credit
quality,” said Russell A. Colombo, President and Chief Executive
Officer. “We are seeing positive results from our investment in
organic growth, specifically the consistent loan volume coming from
a number of our offices.”
Bancorp also provided the following highlights from the third
quarter of 2019:
- Loans totaled $1,798.7 million at September 30, 2019, compared
to $1,764.9 million at June 30, 2019, an increase of $33.8 million.
New loan originations of $77.3 million in the third quarter were
mainly distributed across Commercial Banking and Consumer Banking.
Payoffs of $38.5 million in the third quarter consisted largely of
loans for which the underlying assets were sold and the successful
completion of construction projects.
- Total deposits increased $122.5 million in the third quarter to
$2,224.5 million. Non-interest bearing deposits represented 50% of
total deposits in the third quarter and have been at or near this
level since the beginning of last year. The cost of average
deposits increased to 0.21% in the third quarter, compared to 0.20%
in the second quarter of 2019.
- Strong credit quality remains a cornerstone of the Bank's
consistent performance. Non-accrual loans represented only 0.02% of
the Bank's loan portfolio at September 30, 2019, compared to 0.03%
at June 30, 2019. A $400 thousand provision for loan losses was
recorded in the third quarter of 2019 to account for the loan
growth, and there was no provision for losses on off-balance sheet
commitments.
- Earnings were positively impacted by a benefit collected on
bank-owned-life insurance ("BOLI") policies and a $327 thousand
adjustment to the income tax provision related to a deferred tax
liability true-up. These items positively impacted diluted earnings
per share by approximately $0.06 for the quarter and first nine
months of 2019. Without these two positive impacts, return on
assets and return on equity for the third quarter would have been
1.35% and 10.28%, respectively.
- All capital ratios were above regulatory requirements. The
total risk-based capital ratio for Bancorp was 15.3% at September
30, 2019, compared to 15.2% at June 30, 2019. Tangible common
equity to tangible assets was 11.7% at September 30, 2019, compared
to 12.0% at June 30, 2019 (refer to footnote 3 on page 5 for a
definition of this non-GAAP financial measure).
- The Board of Directors declared a cash dividend of $0.21 per
share on October 18, 2019. This represents the 58th consecutive
quarterly dividend paid by Bank of Marin Bancorp. The dividend is
payable on November 8, 2019, to shareholders of record at the close
of business on November 1, 2019.
Loans and Credit Quality
Loans increased by $33.8 million in the third quarter and
totaled $1,798.7 million at September 30, 2019. For the third
quarter and first nine months of 2019, new loan originations of
$77.3 million and $156.1 million, respectively, compared with 2018
loan originations of $52.6 million and $165.8 million for the same
periods. Loan payoffs of $38.5 million in the third quarter and
$107.8 million in the first nine months of 2019, were lower than
$52.0 million and $120.8 million in the respective 2018
periods.
Non-accrual loans totaled $422 thousand, or 0.02% of the loan
portfolio at September 30, 2019, compared to $574 thousand, or
0.03% at June 30, 2019, and $386 thousand, or 0.02% a year ago.
Classified loans totaled $9.9 million at September 30, 2019,
compared to $10.3 million at June 30, 2019 and $12.4 million at
September 30, 2018. There were no loans classified doubtful at
September 30, 2019, June 30, 2019, or September 30, 2018. Accruing
loans past due 30 to 89 days totaled $574 thousand at September 30,
2019, compared to $343 thousand at June 30, 2019 and $301 thousand
a year ago.
There was a $400 thousand provision for loan losses recorded in
the third quarter of 2019, which was consistent with loan growth.
There was no provision for loan losses recorded in the second
quarter or in the comparable period last year. Net recoveries were
$6 thousand in the third quarter of 2019, compared to $18 thousand
for the prior quarter and $4 thousand in the third quarter a year
ago. The ratio of loan loss reserves to loans, including acquired
loans, was 0.90% at both September 30, 2019 and June 30, 2019, and
0.91% at September 30, 2018.
Investments
The investment securities portfolio totaled $500.9 million at
September 30, 2019, compared to $527.0 million at June 30, 2019.
The decrease from the prior quarter was primarily attributed to
calls, paydowns, and maturities of $34.4 million, partially offset
by purchases of $7.6 million.
Deposits
Total deposits were $2,224.5 million at September 30, 2019,
compared to $2,102.0 million at June 30, 2019. The $122.5 million
increase during the third quarter primarily resulted from normal
cash fluctuations in some of our large business accounts. The
average cost of deposits in the third quarter of 2019 was 0.21%, an
increase of 1 basis point from the prior quarter.
Earnings
“Bank of Marin’s third quarter results reflect the success of
our commitment to consistent, disciplined relationship banking,”
said Tani Girton, EVP and Chief Financial Officer. “With a return
on assets of 1.33% and efficiency ratio of 56.83% year-to-date, and
an increase in tax-equivalent net interest margin of 12 basis
points year-over-year, we are well-positioned to finish the year
strong.”
Net interest income totaled $24.2 million in the third quarter
of 2019, compared to $23.8 million in the prior quarter and $23.5
million a year ago. The $362 thousand increase from the prior
quarter was primarily related to a $388 thousand interest recovery
on a land development loan. The $612 thousand increase from the
comparative quarter a year ago was reflective of higher average
loan balances, higher yields across earning asset categories, and
the land development loan interest recovery, partially offset by
higher rates on deposits.
Net interest income totaled $71.8 million in the first nine
months of 2019, compared to $68.3 million for the same period in
2018. The $3.5 million increase primarily relates to higher average
loan 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 third
quarter and second quarter of 2019, and 3.97% in the third quarter
of 2018. The 7 basis point margin expansion over the same quarter a
year ago was primarily due to higher interest rates and loan
growth.
The tax-equivalent net interest margin was 4.03% in the first
nine months of 2019, compared to 3.91% for the same period in 2018.
The 12 basis point increase from the same period a year ago was
mostly attributed to higher interest rates and higher loan
balances.
Non-interest income totaled $2.7 million in the third quarter of
2019, $2.3 million in the prior quarter, and $2.2 million in the
same quarter a year ago. The increase of $447 thousand from the
prior quarter was primarily due to a $562 thousand benefit
collected on BOLI policies, partially offset by the absence of
gains on sales of investment securities. The $485 thousand increase
from the same quarter a year ago was attributed to the BOLI
benefit, partially offset by lower fee income from one-way deposit
sales to third-party deposit networks.
Non-interest income increased $50 thousand to $6.8 million in
the first nine months of 2019, compared to $6.7 million in 2018,
primarily due to the same fluctuations mentioned above.
Non-interest expense decreased $716 thousand to $14.2 million in
the third quarter of 2019, from $14.9 million in the prior quarter.
The decrease in the third quarter was primarily due to reduced
salaries expense (primarily related to personnel severance in the
second quarter) and fewer digital banking fees due to the
conversion to a new platform. In the third quarter of 2019, we
reversed second quarter Federal Deposit Insurance Corporation
("FDIC") deposit insurance expense when notified that the FDIC
Deposit Insurance Fund reserve exceeded its billing threshold.
Additionally, deferred loan origination costs increased due to a
higher volume of loan originations in the third quarter of
2019.
Non-interest expense increased $229 thousand from $14.0 million
in the third quarter of 2018. The increase was primarily related to
$416 thousand more in salaries due to six additional full-time
equivalent staff and annual merit increases, partially offset by
relief on the FDIC assessment mentioned above.
Non-interest expense increased $83 thousand to $44.6 million in
the first nine months of 2019, compared to the first nine months of
2018. The increase was primarily attributable to higher salaries as
mentioned above, partially offset by the absence of core processing
contract negotiation costs and Bank of Napa acquisition expenses in
2018.
Share Repurchase Program
Bancorp's $25.0 million Stock Repurchase Program expires
February 28, 2020. Bancorp repurchased 65,127 shares totaling $2.7
million in the third quarter of 2019 for a cumulative total of
484,868 shares and $20.2 million as of September 30, 2019.
Earnings Call and Webcast Information
Bank of Marin Bancorp will present its third quarter earnings
call via webcast on Monday, October 21, 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 $2.6 billion, Bank of Marin has 22
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), natural disasters (such as
wildfires and earthquakes), interruptions of utility service in our
markets for sustained periods, 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
September 30, 2019
(dollars in thousands, except per share
data; unaudited)
September 30, 2019
June 30, 2019
September 30, 2018
Quarter-to-Date
Net income
$
9,448
$
8,235
$
8,680
Diluted earnings per common share 4
$
0.69
$
0.60
$
0.62
Return on average assets
1.49
%
1.32
%
1.38
%
Return on average equity
11.34
%
10.26
%
11.20
%
Efficiency ratio
52.84
%
57.23
%
54.20
%
Tax-equivalent net interest margin 1
4.04
%
4.04
%
3.97
%
Cost of deposits
0.21
%
0.20
%
0.10
%
Net (recoveries) charge-offs
$
(6
)
$
(18
)
$
(4
)
Net (recoveries) charge-offs to average
loans
—
%
—
%
—
%
Year-to-Date
Net income
$
25,162
$
22,960
Diluted earnings per common share 4
$
1.82
$
1.64
Return on average assets
1.33
%
1.24
%
Return on average equity
10.40
%
10.17
%
Efficiency ratio
56.83
%
59.42
%
Tax-equivalent net interest margin 1
4.03
%
3.91
%
Cost of deposits
0.20
%
0.09
%
Net (recoveries) charge-offs
$
(19
)
$
(50
)
Net (recoveries) charge-offs to average
loans
—
%
—
%
At Period
End
Total assets
$
2,592,071
$
2,463,987
$
2,545,715
Loans:
Commercial and industrial
$
260,828
$
234,832
$
238,771
Real estate:
Commercial owner-occupied
310,486
306,327
316,467
Commercial investor-owned
896,066
878,969
841,493
Construction
50,254
63,563
68,739
Home equity
121,814
125,968
121,243
Other residential
130,781
124,120
113,383
Installment and other consumer loans
28,461
31,100
28,775
Total loans
$
1,798,690
$
1,764,879
$
1,728,871
Non-performing loans: 2
Commercial and industrial
$
195
$
354
$
—
Home equity
167
157
318
Installment and other consumer loans
60
63
68
Total non-accrual loans
$
422
$
574
$
386
Classified loans (graded substandard and
doubtful)
$
9,935
$
10,251
$
12,401
Total accruing loans 30-89 days past
due
$
574
$
343
$
301
Allowance for loan losses to total
loans
0.90
%
0.90
%
0.91
%
Allowance for loan losses to
non-performing loans
38.45x
27.59x
41.00x
Non-accrual loans to total loans
0.02
%
0.03
%
0.02
%
Total deposits
$
2,224,524
$
2,102,040
$
2,212,846
Loan-to-deposit ratio
80.9
%
84.0
%
78.1
%
Stockholders' equity
$
333,065
$
327,667
$
308,603
Book value per share 4
$
24.47
$
23.99
$
22.10
Tangible common equity to tangible assets
3
11.7
%
12.0
%
10.9
%
Total risk-based capital ratio - Bank
14.6
%
14.6
%
13.7
%
Total risk-based capital ratio -
Bancorp
15.3
%
15.2
%
15.3
%
Full-time equivalent employees
291
293
287
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 $11.9 million, $11.7 million and $15.1
million at September 30, 2019, June 30, 2019 and September 30,
2018, respectively. Excludes purchased credit-impaired (PCI) loans
with carrying values of $2.1 million that were accreting interest
at September 30, 2019, June 30, 2019, and September 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 $35.0 million, $35.3 million and $35.9 million
at September 30, 2019, June 30, 2019, and September 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 September 30, 2019, June
30, 2019 and September 30, 2018
(in thousands, except share data;
unaudited)
September 30, 2019
June 30, 2019
September 30, 2018
Assets
Cash, cash equivalents and restricted
cash
$
182,486
$
58,757
$
142,718
Investment securities
Held-to-maturity, at amortized cost
142,213
148,879
164,222
Available-for-sale (at fair value;
amortized cost $348,369, $368,712 and $416,732 at September 30,
2019, June 30, 2019 and September 30, 2018 respectively)
358,724
378,131
405,571
Total investment securities
500,937
527,010
569,793
Loans, net of allowance for loan losses of
$16,240, $15,835 and $15,817 at September 30, 2019, June 30, 2019
and September 30, 2018, respectively
1,782,450
1,749,044
1,713,054
Bank premises and equipment, net
6,474
6,872
7,602
Goodwill
30,140
30,140
30,140
Core deposit intangible
4,906
5,128
5,802
Operating lease right-of-use assets
11,934
12,515
—
Interest receivable and other assets
72,744
74,521
76,606
Total assets
$
2,592,071
$
2,463,987
$
2,545,715
Liabilities and Stockholders'
Equity
Liabilities
Deposits
Non-interest bearing
$
1,101,288
$
1,056,655
$
1,109,909
Interest bearing
Transaction accounts
162,015
121,232
138,838
Savings accounts
170,007
172,255
178,171
Money market accounts
693,137
647,592
659,788
Time accounts
98,077
104,306
126,140
Total deposits
2,224,524
2,102,040
2,212,846
Borrowings and other obligations
255
297
—
Subordinated debentures
2,691
2,674
5,831
Operating lease liabilities
13,665
14,332
—
Interest payable and other liabilities
17,871
16,977
18,435
Total liabilities
2,259,006
2,136,320
2,237,112
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 - 13,608,525, 13,659,143
and 13,964,358 at September 30, 2019, June 30, 2019 and September
30, 2018, respectively
130,220
132,151
145,498
Retained earnings
196,999
190,416
172,723
Accumulated other comprehensive income
(loss), net of taxes
5,846
5,100
(9,618
)
Total stockholders' equity
333,065
327,667
308,603
Total liabilities and stockholders'
equity
$
2,592,071
$
2,463,987
$
2,545,715
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
Three months ended
Nine months ended
(in thousands, except per share amounts;
unaudited)
September 30, 2019
June 30, 2019
September 30, 2018
September 30, 2019
September 30, 2018
Interest income
Interest and fees on loans
$
21,525
$
20,988
$
20,284
$
63,208
$
58,795
Interest on investment securities
3,382
3,763
3,524
11,242
10,180
Interest on federal funds sold and due
from banks
425
190
400
754
1,088
Total interest income
25,332
24,941
24,208
75,204
70,063
Interest expense
Interest on interest-bearing transaction
accounts
101
91
58
269
158
Interest on savings accounts
17
17
18
52
54
Interest on money market accounts
855
787
337
2,406
789
Interest on time accounts
147
175
130
441
426
Interest on borrowings and other
obligations
4
24
1
75
2
Interest on subordinated debentures
57
58
125
175
362
Total interest expense
1,181
1,152
669
3,418
1,791
Net interest income
24,151
23,789
23,539
71,786
68,272
Provision for loan losses
400
—
—
400
—
Net interest income after provision for
loan losses
23,751
23,789
23,539
71,386
68,272
Non-interest income
Service charges on deposit accounts
439
485
475
1,403
1,407
Wealth Management and Trust Services
495
473
490
1,406
1,493
Debit card interchange fees, net
406
414
402
1,200
1,158
Merchant interchange fees, net
79
87
99
253
297
Earnings on bank-owned life insurance,
net
795
235
227
970
685
Dividends on FHLB stock
202
193
194
591
582
Gains (losses) on investment securities,
net
—
61
(90
)
55
(79
)
Other income
305
326
439
888
1,173
Total non-interest income
2,721
2,274
2,236
6,766
6,716
Non-interest expense
Salaries and related benefits
8,412
8,868
8,069
26,426
25,402
Occupancy and equipment
1,507
1,578
1,444
4,616
4,462
Depreciation and amortization
573
572
532
1,701
1,625
Federal Deposit Insurance Corporation
insurance
1
174
186
354
568
Data processing
923
1,004
950
2,942
3,354
Professional services
580
535
727
1,701
2,836
Directors' expense
189
187
173
555
530
Information technology
279
284
262
822
795
Amortization of core deposit
intangible
222
221
230
665
691
Provision for losses on off-balance sheet
commitments
—
—
—
129
—
Other expense
1,514
1,493
1,398
4,733
4,298
Total non-interest expense
14,200
14,916
13,971
44,644
44,561
Income before provision for income
taxes
12,272
11,147
11,804
33,508
30,427
Provision for income taxes
2,824
2,912
3,124
8,346
7,467
Net income
$
9,448
$
8,235
$
8,680
$
25,162
$
22,960
Net income per common share:1
Basic
$
0.70
$
0.60
$
0.63
$
1.84
$
1.66
Diluted
$
0.69
$
0.60
$
0.62
$
1.82
$
1.64
Weighted average shares:1
Basic
13,571
13,655
13,900
13,654
13,872
Diluted
13,735
13,818
14,110
13,825
14,062
Comprehensive income:
Net income
$
9,448
$
8,235
$
8,680
$
25,162
$
22,960
Other comprehensive income (loss)
Change in net unrealized gains or losses
on available-for-sale securities
936
8,982
(2,120
)
13,857
(9,421
)
Reclassification adjustment for (gains)
losses on available-for-sale securities in net income
—
(61
)
90
(55
)
79
Net unrealized losses on securities
transferred from available-for-sale to held-to-maturity
—
—
—
—
(278
)
Amortization of net unrealized losses on
securities transferred from available-for-sale to
held-to-maturity
123
104
128
328
396
Subtotal
1,059
9,025
(1,902
)
14,130
(9,224
)
Deferred tax expense (benefit)
313
2,671
(562
)
4,182
(2,730
)
Other comprehensive income (loss), net of
tax
746
6,354
(1,340
)
9,948
(6,494
)
Comprehensive income
$
10,194
$
14,589
$
7,340
$
35,110
$
16,466
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
September 30, 2019
June 30, 2019
September 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
$
77,467
$
425
2.15
%
$
30,928
$
190
2.43
%
$
79,674
$
400
1.96
%
Investment securities 2, 3
506,023
3,443
2.72
%
567,813
3,844
2.71
%
558,741
3,624
2.59
%
Loans 1, 3, 4
1,780,325
21,719
4.77
%
1,758,874
21,180
4.76
%
1,715,295
20,504
4.68
%
Total interest-earning assets 1
2,363,815
25,587
4.24
%
2,357,615
25,214
4.23
%
2,353,710
24,528
4.08
%
Cash and non-interest-bearing due from
banks
38,434
34,437
41,316
Bank premises and equipment, net
6,713
7,108
7,866
Interest receivable and other assets,
net
114,537
107,089
86,039
Total assets
$
2,523,499
$
2,506,249
$
2,488,931
Liabilities and Stockholders' Equity
Interest-bearing transaction accounts
$
137,861
$
101
0.29
%
$
124,620
$
91
0.29
%
$
134,293
$
58
0.17
%
Savings accounts
170,166
17
0.04
%
174,102
17
0.04
%
179,429
18
0.04
%
Money market accounts
661,131
855
0.51
%
661,363
787
0.48
%
609,821
337
0.22
%
Time accounts including CDARS
101,404
147
0.57
%
115,272
175
0.61
%
132,588
130
0.39
%
Borrowings and other obligations 1
599
4
2.69
%
3,608
24
2.59
%
112
1
2.06
%
Subordinated debentures 1
2,682
57
8.27
%
2,664
58
8.69
%
5,815
125
8.43
%
Total interest-bearing liabilities
1,073,843
1,181
0.44
%
1,081,629
1,152
0.43
%
1,062,058
669
0.25
%
Demand accounts
1,088,903
1,073,909
1,101,288
Interest payable and other liabilities
30,268
28,621
18,022
Stockholders' equity
330,485
322,090
307,563
Total liabilities & stockholders'
equity
$
2,523,499
$
2,506,249
$
2,488,931
Tax-equivalent net interest income/margin
1
$
24,406
4.04
%
$
24,062
4.04
%
$
23,859
3.97
%
Reported net interest income/margin 1
$
24,151
4.00
%
$
23,789
3.99
%
$
23,539
3.91
%
Tax-equivalent net interest rate
spread
3.80
%
3.80
%
3.83
%
Nine months ended
Nine months ended
September 30, 2019
September 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
$
43,896
$
754
2.27
%
82,304
1,088
1.74
%
Investment securities 2, 3
564,050
11,477
2.71
%
555,414
10,512
2.52
%
Loans 1, 3, 4
1,765,260
63,786
4.76
%
1,697,093
59,475
4.62
%
Total interest-earning assets 1
2,373,206
76,017
4.22
%
2,334,811
71,075
4.01
%
Cash and non-interest-bearing due from
banks
34,634
42,488
Bank premises and equipment, net
7,108
8,188
Interest receivable and other assets,
net
108,806
87,403
Total assets
$
2,523,754
$
2,472,890
Liabilities and Stockholders' Equity
Interest-bearing transaction accounts
$
130,109
$
269
0.28
%
148,141
158
0.14
%
Savings accounts
174,837
52
0.04
%
179,543
54
0.04
%
Money market accounts
665,167
2,406
0.48
%
601,896
789
0.18
%
Time accounts including CDARS
109,978
441
0.54
%
142,563
426
0.40
%
Borrowings and other obligations 1
3,848
75
2.57
%
115
2
1.92
%
Subordinated debentures 1
2,664
175
8.66
%
5,785
362
8.25
%
Total interest-bearing liabilities
1,086,603
3,418
0.42
%
1,078,043
1,791
0.22
%
Demand accounts
1,083,260
1,074,778
Interest payable and other liabilities
30,344
18,127
Stockholders' equity
323,547
301,942
Total liabilities & stockholders'
equity
$
2,523,754
$
2,472,890
Tax-equivalent net interest income/margin
1
$
72,599
4.03
%
69,284
3.91
%
Reported net interest income/margin 1
$
71,786
3.99
%
68,272
3.86
%
Tax-equivalent net interest rate
spread
3.80
%
3.79
%
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/20191021005105/en/
Beth Drummey Marketing & Corporate Communications Manager
415-763-4529 | bethdrummey@bankofmarin.com
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