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Investor Relations
Press Release

Bank of Marin Bancorp Reports Third Quarter Earnings of $9.4 Million; 15% Increase Over Prior Quarter

Company Release - 10/21/2019 8:00 AM ET

NOVATO, Calif.--(BUSINESS WIRE)-- 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.

 

Beth Drummey
Marketing & Corporate Communications Manager
415-763-4529 | [email protected]

Source: Bank of Marin Bancorp