Bank of Marin Bancorp, "Bancorp" (Nasdaq: BMRC), parent company
of Bank of Marin, "Bank," announced record annual earnings of $34.2
million in 2019 compared to $32.6 million in 2018 as a result of
consistent loan growth and lower expenses. Diluted earnings per
share were $2.48 for the year ended December 31, 2019, compared to
$2.33 per share for the year ended December 31, 2018.
Earnings were $9.1 million in the fourth quarter of 2019,
compared to $9.4 million in the third quarter of 2019 and $9.7
million in the fourth quarter of 2018. Earnings were slightly down
in the fourth quarter of 2019 due to a benefit on bank-owned-life
insurance ("BOLI") policies and deferred tax liability true up in
the prior quarter. Diluted earnings per share were $0.66 in the
fourth quarter of 2019, compared to $0.69 in the prior quarter and
same quarter a year ago. Share and per share data has been adjusted
throughout this document to reflect the two-for-one stock split
effective November 27, 2018.
“The robust financial performance we delivered in 2019 is a
testament to the Bank's commitment to relationship banking,” said
Russell A. Colombo, President and Chief Executive Officer. “We
believe the future looks bright as we move into 2020 with
consistently growing loan volume, a low cost and stable deposit
base, and exceptional credit quality.”
Bancorp also provided the following highlights for the fourth
quarter and year ended December 31, 2019:
- The Bank achieved loan growth of $79.4 million in 2019, or
4.5%, to $1,843.3 million at December 31, 2019, from $1,763.9
million at December 31, 2018. Loans increased $44.6 million in the
fourth quarter from $1,798.7 million at September 30, 2019.
- Strong credit quality remains a cornerstone of the Bank’s
consistent performance. Non-accrual loans represented 0.01% of the
Bank's loan portfolio as of December 31, 2019. There was a $500
thousand provision for loan losses recorded in the fourth quarter
of 2019, reflecting loan growth.
- Deposits grew $161.7 million, or 7.4%, to $2,336.5 million at
December 31, 2019, compared to $2,174.8 million at December 31,
2018. Non-interest bearing deposits grew by $62.8 million in 2019
and made up 48.3% of total deposits at year end. Cost of deposits
remained low at 0.20% for the full year of 2019, up only 0.10% from
2018.
- For the full year 2019, return on assets ("ROA") and return on
equity ("ROE") were 1.34% and 10.49%, respectively, compared to
1.31% and 10.73% in the prior year. For the quarter ended December
31, 2019, ROA was 1.37% and ROE was 10.75%, compared to 1.49% and
11.34%, respectively, in the prior quarter.
- All capital ratios were above regulatory requirements for a
well-capitalized institution. The total risk-based capital ratio
for Bancorp was 15.1% at December 31, 2019 and 14.9% at December
31, 2018. Tangible common equity to tangible assets was 11.3% at
both December 31, 2019 and December 31, 2018 (refer to footnote 3
on page 6 for definition of this non-GAAP financial measure).
- The Board of Directors declared a cash dividend of $0.23 per
share on January 24, 2020, a $0.02 increase from the prior quarter.
This is the 59th consecutive quarterly dividend paid by Bank of
Marin Bancorp. The cash dividend is payable on February 14, 2020 to
shareholders of record at the close of business on February 7,
2020.
- With the current Share Repurchase Plan nearing expiration, on
January 24, 2020, the Bancorp Board of Directors approved a new
Share Repurchase Program under which Bancorp may repurchase up to
$25.0 million of its outstanding common stock through February 28,
2022.
Loans and Credit Quality
Loans grew $44.6 million in the fourth quarter of 2019 and
totaled $1,843.3 million at December 31, 2019. For the quarter and
year ended December 31, 2019, new loan originations of $103.4
million and $259.6 million, respectively, exceeded 2018 loan
originations of $73.6 million and $239.4 million for the same
periods. New loan originations were partially offset by payoffs of
$37.9 million in the fourth quarter and $145.7 million for the full
year ended December 31, 2019.
Non-accrual loans totaled $226 thousand, or 0.01% of the Bank's
loan portfolio at December 31, 2019, a decrease from $422 thousand,
or 0.02%, at September 30, 2019 and $697 thousand, or 0.04%, a year
ago. Loans classified substandard totaled $9.9 million at both
December 31, 2019 and September 30, 2019, down $2.7 million from
$12.6 million at December 31, 2018. There were no loans classified
doubtful at December 31, 2019 or December 31, 2018. Accruing loans
past due 30 to 89 days totaled $1.5 million at December 31, 2019,
compared to $574 thousand at September 30, 2019 and $1.1 million a
year ago.
The Bank recorded a $500 thousand provision for loan losses in
the fourth quarter and $400 thousand in the third quarter of 2019.
No provision for loan losses was recorded in the fourth quarter a
year ago. Net charge-offs for the fourth quarter of 2019 totaled
$63 thousand compared to net recoveries of $6 thousand last quarter
and $4 thousand in the fourth quarter of 2018. Net charge-offs
totaled $44 thousand for the year ended December 31, 2019, compared
to net recoveries of $54 thousand in 2018. The ratio of loan loss
reserve to loans, including acquired loans, was 0.90% at December
31, 2019, September 30, 2019 and December 31, 2018.
The new current expected credit loss ("CECL") accounting
standard became effective on January 1, 2020 and had no impact on
our 2019 results. Under CECL, our primary credit loss methodology
will utilize a discounted cash flow approach that considers the
probability of default and loss given default. Parallel testing
occurred throughout 2019 and we estimate that our implementation of
CECL will result in an increase to our allowance for credit losses
between 5% and 15%, which will be recorded as an adjustment to
retained earnings net of tax.
Investments
The investment portfolio totaled $569.7 million at December 31,
2019, an increase of $68.7 million from September 30, 2019 and a
decrease of $50.0 million from December 31, 2018. The increase in
the fourth quarter of 2019 was primarily attributed to purchases of
securities totaling $95.6 million, partially offset by principal
paydowns and maturities. The year-over-year decrease was a
combination of sales of $66.0 million, principal paydowns of $62.9
million, and maturities and calls of $46.1 million, partially
offset by purchases of $114.5 million, and an increase in the fair
value of available-for-sale securities.
Deposits
Deposits totaled $2,336.5 million at December 31, 2019, compared
to $2,224.5 million at September 30, 2019 and $2,174.8 million at
December 31, 2018. The $112.0 million increase in deposits from the
prior quarter primarily resulted from cash fluctuations in some of
our large clients' business accounts. The average cost of deposits
increased 2 basis points in the fourth quarter to 0.23%. The
average cost of deposits for the full year of 2019 was 0.20%, up 10
basis points from 2018.
Earnings
“Our record 2019 results are a product of a well-executed
strategy to invest in people focused on performing at a high
level,” said Tani Girton, EVP and Chief Financial Officer. “With a
fourth quarter tax equivalent net interest margin of 3.82%, and a
50.84% efficiency ratio that demonstrates a commitment to making
every expense dollar count, we feel that our team is poised to
deliver another good year in 2020.”
Net interest income totaled $23.9 million in the fourth quarter
of 2019, compared to $24.2 million in the prior quarter and $23.3
million in the same quarter a year ago. The $257 thousand decrease
from the prior quarter primarily related to a $388 thousand
interest recovery on a land development loan in the third quarter
and lower earning asset yields in the fourth quarter, partially
offset by higher average balances in the fourth quarter. Increases
in interest-bearing deposit balances and rates also contributed to
the decrease.
The $622 thousand net interest income increase from the same
quarter last year was primarily due to a decrease in interest
expense from the early redemption of a subordinated debenture ($916
thousand in accelerated discount accretion) in the fourth quarter
of 2018, and higher average loan balances in the fourth quarter of
2019. Positive variances were partially offset by lower investment
securities balances and higher interest-bearing deposit balances
and rates.
The tax-equivalent net interest margin was 3.82% for the fourth
quarter of 2019, compared to 4.04% in the prior quarter and 3.85%
in the fourth quarter of 2018. The 22 basis point decrease from the
prior quarter was primarily attributed to interest recovered from
the land development loan in the third quarter, lower loan rates
and higher interest-bearing deposit rates and balances. The 3 basis
point decrease from the same quarter a year ago was primarily
attributed to lower yields on loans and cash and higher
interest-bearing deposit balances and rates, largely offset by
higher loan balances and the accelerated accretion from the early
redemption of the high-rate subordinated debenture in the fourth
quarter of 2018.
Net interest income totaled $95.7 million and $91.5 million in
2019 and 2018, respectively. The increase of $4.2 million in 2019
was primarily due to higher average loan balances and asset yields
and the early redemption of subordinated debt mentioned above.
Positive variances were partially offset by higher balances and
rates on money market accounts. The tax-equivalent net interest
margin increased 8 basis points to 3.98% in 2019, from 3.90% in
2018 for the same reasons.
Non-interest income in the fourth quarter of 2019 totaled $2.3
million, compared to $2.7 million in the prior quarter and $3.4
million in the same quarter a year ago. The $403 thousand decrease
compared to the prior quarter was primarily related to a $562
thousand benefit collected on BOLI policies in the third quarter,
partially offset by higher fee income from one-way deposit sales to
third-party deposit networks. The $1.1 million decrease from the
same quarter a year ago primarily related to a $956 thousand
pre-tax gain on sale of 6,500 shares of Visa Inc. Class B
restricted common stock to a member bank of Visa U.S.A and a $180
thousand Federal Home Loan Bank ("FHLB") special dividend in the
fourth quarter of 2018. The Bank sold less than half of its Visa
Inc. position in 2018 to realize appreciation in market prices and
hedge against market volatility. Non-interest income of $9.1
million in 2019 decreased from $10.1 million in 2018 primarily due
to the Visa Inc. Class B stock sale and FHLB special dividend in
2018, as well as lower fee income from one-way deposit sales in
2019. The negative variance was partially offset by the benefit
collected on BOLI in 2019.
Non-interest expense totaled $13.3 million in the fourth quarter
of 2019, compared to $14.2 million in the prior quarter and $13.7
million in the same quarter a year ago. The $874 thousand decrease
in the fourth quarter of 2019 compared to the prior quarter was
mainly due to lower incentive bonus expense and higher deferred
loan origination costs due to a higher volume of loan originations.
The same items contributed to the $379 thousand decrease from the
same quarter last year in addition to lower data processing costs
and the reversal of Federal Deposit Insurance Corporation ("FDIC")
deposit insurance expense when the FDIC Deposit Insurance Fund
reserve exceeded its billing threshold.
Non-interest expense of $58.0 million in 2019 decreased from
$58.3 million in 2018, primarily due to consulting expenses related
to core processing contract negotiations and Bank of Napa
acquisition-related expenses in 2018, lower employee health
insurance expenses due to change in carrier in 2019, and cost
reductions mentioned above. Reductions were partially offset by
staffing and annual merit increases.
Share Repurchase Program
Bancorp's existing $25.0 million Share Repurchase Program
expires February 28, 2020. Bancorp repurchased 42,349 shares
totaling $1.9 million in the fourth quarter of 2019 for a
cumulative total of 527,217 shares and $22.0 million as of December
31, 2019.
With the current Share Repurchase Program nearing expiration,
Bancorp’s Board of Directors approved a new repurchase program on
January 24, 2020 of up to $25.0 million of Bancorp’s common stock.
Repurchases will not begin under this new program until Bancorp is
no longer in a trading blackout or otherwise in possession of
material non-public information and the program will continue
through February 28, 2022.
Under the new Share Repurchase Program, Bancorp may purchase
shares of its common stock through various means such as open
market transactions, including block purchases, and privately
negotiated transactions. The number of shares repurchased and the
timing, manner, price and amount of any repurchases will be
determined at Bancorp’s discretion. Factors include, but are not
limited to, stock price, trading volume and general market
conditions, along with Bancorp’s general business conditions. The
program may be suspended or discontinued at any time and does not
obligate Bancorp to acquire any specific number of shares of its
common stock.
As part of the new Share Repurchase Program, Bancorp intends to
enter into a trading plan adopted in accordance with Rule 10b5-1 of
the Securities Exchange Act of 1934, as amended. The 10b5-1 trading
plan would permit common stock to be repurchased at a time that
Bancorp might otherwise be precluded from doing so under insider
trading laws or self-imposed trading restrictions. The 10b5-1
trading plan will be administered by an independent broker and will
be subject to price, market volume and timing restrictions.
Earnings Call and Webcast Information
Bank of Marin Bancorp will webcast its fourth quarter and year
end 2019 earnings call on Monday, January 27, 2020 at 8:30 a.m.
PT/11:30 a.m. ET. Investors will have the opportunity to listen to
the conference call online through Bank of Marin’s website at
https://www.bankofmarin.com under “Investor Relations.” To listen
to the live call, 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 $2.7 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
December 31, 2019
(dollars in thousands, except per share
data; unaudited)
December 31, 2019
September 30, 2019
December 31, 2018
Quarter-to-Date
Net income
$
9,079
$
9,448
$
9,662
Diluted earnings per common share 4
$
0.66
$
0.69
$
0.69
Return on average assets
1.37
%
1.49
%
1.52
%
Return on average equity
10.75
%
11.34
%
12.37
%
Efficiency ratio
50.84
%
52.84
%
51.34
%
Tax-equivalent net interest margin 1
3.82
%
4.04
%
3.85
%
Cost of deposits
0.23
%
0.21
%
0.14
%
Net charge-offs (recoveries)
$
63
$
(6
)
$
(4
)
Net charge-offs (recoveries) to average
loans
—
%
—
%
—
%
Year-to-Date
Net income
$
34,241
$
32,622
Diluted earnings per common share 4
$
2.48
$
2.33
Return on average assets
1.34
%
1.31
%
Return on average equity
10.49
%
10.73
%
Efficiency ratio
55.33
%
57.30
%
Tax-equivalent net interest margin 1
3.98
%
3.90
%
Cost of deposits
0.20
%
0.10
%
Net charge-offs (recoveries)
$
44
$
(54
)
Net (recoveries) charge-offs to average
loans
—
%
—
%
At Period
End
Total assets
$
2,707,280
$
2,592,071
$
2,520,892
Loans:
Commercial and industrial
$
246,687
$
260,828
$
230,739
Real estate:
Commercial owner-occupied
$
308,824
$
310,486
$
313,277
Commercial investor-owned
$
946,317
$
896,066
$
873,410
Construction
$
61,095
$
50,254
$
76,423
Home Equity
$
116,024
$
121,814
$
124,696
Other residential
$
136,657
$
130,781
$
117,847
Installment and other consumer loans
$
27,682
$
28,461
$
27,472
Total loans
$
1,843,286
$
1,798,690
$
1,763,864
Non-performing loans2:
Commercial and industrial
$
—
$
195
$
319
Home equity
$
168
$
167
$
313
Installment and other consumer loans
$
58
$
60
$
65
Total non-accrual loans
$
226
$
422
$
697
Classified loans (graded substandard and
doubtful)
$
9,934
$
9,935
$
12,608
Total accruing loans 30-89 days past
due
$
1,481
$
574
$
1,121
Allowance for loan losses to total
loans
0.90
%
0.90
%
0.90
%
Allowance for loan losses to
non-performing loans
73.86x
38.45x
22.71x
Non-accrual loans to total loans
0.01
%
0.02
%
0.04
%
Total deposits
$
2,336,489
$
2,224,524
$
2,174,840
Loan-to-deposit ratio
78.9
%
80.9
%
81.1
%
Stockholders' equity
$
336,788
$
333,065
$
316,407
Book value per share 4
$
24.81
$
24.47
$
22.85
Tangible common equity to tangible assets
3
11.3
%
11.7
%
11.3
%
Total risk-based capital ratio - Bank
14.6
%
14.6
%
14.0
%
Total risk-based capital ratio -
Bancorp
15.1
%
15.3
%
14.9
%
Full-time equivalent employees
290
291
290
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 $11.3 million, $11.9 million and $14.3
million at December 31, 2019, September 30, 2019 and December 31,
2018, respectively. Excludes purchased credit-impaired (PCI) loans
with carrying values that were accreting interest of $2.0 million
at December 31, 2019, and $2.1 million at September 30, 2019 and
December 31, 2018, 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 gains on available
for sale securities, net of tax, less goodwill and intangible
assets of $34.8 million, $35.0 million and $35.7 million at
December 31, 2019, September 30, 2019 and December 31, 2018,
respectively. Tangible assets excludes goodwill and intangible
assets.
4 Per share data has been adjusted to
reflect the two-for-one stock split effective November 27,
2018.
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF
CONDITION
at December 31, 2019,
September 30, 2019 and December 31, 2018
(in thousands, except share data; unaudited)
December 31, 2019
September 30, 2019
December 31, 2018
Assets
Cash, cash equivalents and restricted
cash
$
183,388
$
182,486
$
34,221
Investment securities
Held-to-maturity, at amortized cost
137,413
142,213
157,206
Available-for-sale (at fair value;
amortized cost of $423,923, $348,369 and $465,910 at December 31,
2019, September 30, 2019 and December 31, 2018, respectively)
432,260
358,724
462,464
Total investment securities
569,673
500,937
619,670
Loans, net of allowance for loan losses of
$16,677, $16,240 and $15,821 at December 31, 2019, September 30,
2019 and December 31, 2018, respectively
1,826,609
1,782,450
1,748,043
Bank premises and equipment, net
6,070
6,474
7,376
Goodwill
30,140
30,140
30,140
Core deposit intangible
4,684
4,906
5,571
Operating lease right-of-use assets
11,002
11,934
—
Interest receivable and other assets
75,714
72,744
75,871
Total assets
$
2,707,280
$
2,592,071
$
2,520,892
Liabilities and Stockholders'
Equity
Liabilities
Deposits
Non-interest bearing
$
1,128,823
$
1,101,288
$
1,066,051
Interest bearing
Transaction accounts
142,329
162,015
133,403
Savings accounts
162,817
170,007
178,429
Money market accounts
804,710
693,137
679,775
Time accounts
97,810
98,077
117,182
Total deposits
2,336,489
2,224,524
2,174,840
Borrowings and other obligations
212
255
7,000
Subordinated debentures
2,708
2,691
2,640
Operating lease liabilities
12,615
13,665
—
Interest payable and other liabilities
18,468
17,871
20,005
Total liabilities
2,370,492
2,259,006
2,204,485
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- 13,577,008, 13,608,525
and 13,844,353 at December 31, 2019, September 30, 2019 and
December 31, 2018, respectively
129,058
130,220
140,565
Retained earnings
203,227
196,999
179,944
Accumulated other comprehensive income
(loss), net of taxes
4,503
5,846
(4,102
)
Total stockholders' equity
336,788
333,065
316,407
Total liabilities and stockholders'
equity
$
2,707,280
$
2,592,071
$
2,520,892
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF
INCOME AND COMPREHENSIVE INCOME
Three months ended
Years ended
(in thousands, except per share amounts;
unaudited)
December 31, 2019
September 30, 2019
December 31, 2018
December 31, 2019
December 31, 2018
Interest income
Interest and fees on loans
$
21,123
$
21,525
$
20,732
$
84,331
$
79,527
Interest on investment securities
3,543
3,382
3,912
14,785
14,092
Interest on federal funds sold and due
from banks
567
425
373
1,321
1,461
Total interest income
25,233
25,332
25,017
100,437
95,080
Interest expense
Interest on interest-bearing transaction
accounts
78
101
68
347
226
Interest on savings accounts
18
17
18
70
72
Interest on money market accounts
1,033
855
566
3,439
1,355
Interest on time accounts
154
147
116
595
542
Interest on borrowings and other
obligations
2
4
—
77
2
Interest on subordinated debentures
54
57
977
229
1,339
Total interest expense
1,339
1,181
1,745
4,757
3,536
Net interest income
23,894
24,151
23,272
95,680
91,544
Provision for loan losses
500
400
—
900
—
Net interest income after provision for
loan losses
23,394
23,751
23,272
94,780
91,544
Non-interest income
Service charges on deposit accounts
462
439
484
1,865
1,891
Wealth Management and Trust Services
501
495
426
1,907
1,919
Debit card interchange fees, net
386
406
403
1,586
1,561
Merchant interchange fees, net
78
79
81
331
378
Earnings on bank-owned life Insurance,
net
226
795
227
1,196
913
Dividends on FHLB stock
208
202
377
799
959
Gains on investment securities, net
—
—
956
55
876
Other income
457
305
469
1,345
1,642
Total non-interest income
2,318
2,721
3,423
9,084
10,139
Non-interest expense
Salaries and related benefits
7,827
8,412
7,933
34,253
33,335
Occupancy and equipment
1,527
1,507
1,514
6,143
5,976
Depreciation and amortization
527
573
518
2,228
2,143
Federal Deposit Insurance Corporation
insurance
7
1
188
361
756
Data processing
775
923
1,004
3,717
4,358
Professional services
431
580
481
2,132
3,317
Directors' expense
180
189
170
735
700
Information technology
243
279
228
1,065
1,023
Amortization of core deposit
intangible
222
222
230
887
921
Provision for losses on off-balance sheet
commitments
—
—
—
129
—
Other expense
1,587
1,514
1,439
6,320
5,737
Total non-interest expense
13,326
14,200
13,705
57,970
58,266
Income before provision for income
taxes
12,386
12,272
12,990
45,894
43,417
Provision for income taxes
3,307
2,824
3,328
11,653
10,795
Net income
$
9,079
$
9,448
$
9,662
$
34,241
$
32,622
Net income per common share:1
Basic
$
0.67
$
0.70
$
0.70
$
2.51
$
2.35
Diluted
$
0.66
$
0.69
$
0.69
$
2.48
$
2.33
Weighted average shares:1
Basic
13,521
13,571
13,841
13,620
13,864
Diluted
13,703
13,735
14,033
13,794
14,029
Comprehensive income:
Net income
$
9,079
$
9,448
$
9,662
$
34,241
$
32,622
Other comprehensive (loss) income:
Change in net unrealized gains or losses
on available-for-sale securities
(2,018
)
936
7,714
11,839
(1,707
)
Reclassification adjustment for gains or
losses on available-for-sale securities in net income
—
—
—
(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
117
123
120
445
516
Subtotal
(1,901
)
1,059
7,834
12,229
(1,390
)
Deferred tax (benefit) expense
(558
)
313
2,318
3,624
(412
)
Other comprehensive (loss) income, net of
tax
(1,343
)
746
5,516
8,605
(978
)
Comprehensive income
$
7,736
$
10,194
$
15,178
$
42,846
$
31,644
1 Share and per share data has 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
December 31, 2019
September 30, 2019
December 31, 2018
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
$
136,320
$
566
1.63
%
$
77,467
$
425
2.15
%
$
65,961
$
373
2.21
%
Investment securities 2, 3
530,596
3,625
2.73
%
506,023
3,443
2.72
%
600,914
4,000
2.66
%
Loans 1, 3, 4
1,804,667
21,276
4.61
%
1,780,325
21,719
4.77
%
1,726,045
20,933
4.75
%
Total interest-earning assets 1
2,471,583
25,467
4.03
%
2,363,815
25,587
4.24
%
2,392,920
25,306
4.14
%
Cash and non-interest-bearing due from
banks
39,882
38,434
38,943
Bank premises and equipment, net
6,326
6,713
7,529
Interest receivable and other assets,
net
112,895
114,537
84,651
Total assets
$
2,630,686
$
2,523,499
$
2,524,043
Liabilities and Stockholders' Equity
Interest-bearing transaction accounts
$
145,237
$
79
0.22
%
$
137,861
$
101
0.29
%
$
130,546
$
68
0.21
%
Savings accounts
164,664
17
0.04
%
170,166
17
0.04
%
177,018
18
0.04
%
Money market accounts
725,192
1,033
0.57
%
661,131
855
0.51
%
643,459
566
0.35
%
Time accounts, including CDARS
97,302
154
0.63
%
101,404
147
0.57
%
121,838
116
0.38
%
Borrowings and other obligations 1
226
2
2.80
%
599
4
2.69
%
76
—
2.52
%
Subordinate debentures 1
2,698
54
7.79
%
2,682
57
8.27
%
2,770
977
138.09
%
Total interest-bearing liabilities
1,135,319
1,339
0.47
%
1,073,843
1,181
0.44
%
1,075,707
1,745
0.64
%
Demand accounts
1,129,068
1,088,903
1,118,785
Interest payable and other liabilities
31,270
30,268
19,662
Stockholders' equity
335,029
330,485
309,889
Total liabilities & stockholders'
equity
$
2,630,686
$
2,523,499
$
2,524,043
Tax-equivalent net interest income/margin
1
$
24,128
3.82
%
$
24,406
4.04
%
$
23,561
3.85
%
Reported net interest income/margin 1
$
23,894
3.78
%
$
24,151
4.00
%
$
23,272
3.81
%
Tax-equivalent net interest rate
spread
3.56
%
3.80
%
3.49
%
Year ended
Year ended
December 31, 2019
December 31, 2018
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
$
67,192
$
1,321
1.94
%
$
78,185
$
1,461
1.84
%
Investment securities 2, 3
555,618
15,102
2.72
%
566,883
14,512
2.56
%
Loans 1, 3, 4
1,775,193
85,062
4.73
%
1,704,390
80,406
4.65
%
Total interest-earning assets 1
2,398,003
101,485
4.17
%
2,349,458
96,379
4.05
%
Cash and non-interest-bearing due from
banks
35,956
41,595
Bank premises and equipment, net
6,911
8,021
Interest receivable and other assets,
net
109,837
86,709
Total assets
$
2,550,707
$
2,485,783
Liabilities and Stockholders' Equity
Interest-bearing transaction accounts
$
133,922
$
347
0.26
%
$
143,706
$
226
0.16
%
Savings accounts
172,273
70
0.04
%
178,907
72
0.04
%
Money market accounts
680,296
3,439
0.51
%
612,372
1,355
0.22
%
Time accounts, including CDARS
106,783
595
0.56
%
137,339
542
0.39
%
Borrowings and other obligations 1
2,935
77
2.57
%
105
2
2.03
%
Subordinated debentures 1
2,673
229
8.44
%
5,025
1,339
26.29
%
Total interest-bearing liabilities
1,098,882
4,757
0.43
%
1,077,454
3,536
0.33
%
Demand accounts
1,094,806
1,085,870
Interest payable and other liabilities
30,578
18,514
Stockholders' equity
326,441
303,945
Total liabilities & stockholders'
equity
$
2,550,707
$
2,485,783
Tax-equivalent net interest income/margin
1
$
96,728
3.98
%
$
92,843
3.90
%
Reported net interest income/margin 1
$
95,680
3.94
%
$
91,544
3.84
%
Tax-equivalent net interest rate
spread
3.74
%
3.72
%
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/20200127005150/en/
Beth Drummey Marketing and Corporate Communications Manager
415-763-4529 | bethdrummey@bankofmarin.com
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