EXHIBIT 99.1
FOR IMMEDIATE RELEASE | CONTACT: Sandy Pfaff |
415-459-8800 | |
sandy@pfaffpr.com |
BANK OF MARIN BANCORP REPORTS STRONG THIRD QUARTER EARNINGS
INCREASES QUARTERLY CASH DIVIDEND TO SHAREHOLDERS
NOVATO, CA, October 24, 2011 – Bank of Marin Bancorp (“Bancorp”, NASDAQ: BMRC) announced third quarter 2011 earnings of $4.2 million, up 26%, from $3.4 million in the third quarter of 2010. Diluted earnings per share were $0.79, up $0.16 from the same quarter a year ago. Earnings for the nine-month period ended September 30, 2011 totaled $12.2 million, up 26%, from $9.6 million in the same period a year ago. Diluted earnings per share for the nine-month period ended September 30, 2011 totaled $2.26, up $0.44 from $1.82 for the same period a year ago. 2011 earnings include the impact of the FDIC1-assisted acquisition of certain assets and the assumption of certain liabilities of the former Charter Oak Bank on February 18, 2011 (the “Acquisition”).
“We are pleased to report strong earnings this quarter driven by high credit quality and the Napa acquisition. This year we have also opened two new offices in Santa Rosa and Sonoma, which position the Bank for continued growth,” said Russell A. Colombo, Chief Executive Officer. “By investing in our branch network and operational infrastructure, including hiring senior-level talent, we are creating value for our customers, employees and shareholders.”
Bancorp also provided the following highlights on its operating and financial performance for the third quarter of 2011:
● | The acquired operations of the former Charter Oak Bank contributed approximately $1.6 million to Bancorp’s pre-tax, third-quarter income, and $4.0 million to Bancorp’s pre-tax year-to-date income. |
● | Credit quality remains solid with non-performing loans at 1.08% of loans, down from 1.13% a year ago. Results include a $2.5 million lower loan loss provision from the prior quarter, primarily due to fewer newly identified loans requiring a specific reserve and a decrease in the construction portfolio, which is assigned a higher allowance factor. |
● | Loans grew $6.0 million, or 0.6%, over last quarter, primarily related to new relationships. |
● | Total deposits grew $37.6 million, or 3.3%, over last quarter, with non-interest bearing deposits growing $27.5 million or 7.9%. Non-interest bearing deposits totaled 31.8% of deposits at September 30, 2011, compared to 30.4% at the prior quarter-end. |
● | On October 3, 2010, Bank of Marin opened its seventeenth full service branch in Sonoma, California. With pre-opening business development efforts, the Sonoma branch has already generated $1.8 million in deposits and $2.4 million in loans as of September 30, 2011. |
● | In a conscious effort to address excess liquidity, Bancorp paid off a $20 million FHLB2 fixed-rate advance at 2.54%. The pre-payment penalty of $924 thousand, pre-tax, reduced the net interest margin by 28 basis points for the third quarter and 10 basis points on a year-to-date basis. |
● | On October 21, 2011, the Board of Directors declared a quarterly cash dividend of $0.17 per share, a $0.01 increase from prior quarter. The cash dividend is payable to shareholders of record at the close of business on November 3, 2011 and will be payable on November 14, 2011. |
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1 Federal Deposit Insurance Corporation
2 Federal Home Loan Bank of San Francisco
1
Loans and Credit Quality
Total loans reached $992.6 million at September 30, 2011, representing an increase of $54.5 million, or 5.8%, over a year ago, and an increase of $6.0 million, or 0.6%, from June 30, 2011. The increase from the same quarter a year ago largely reflects $61.8 million of loans purchased and measured at fair value without loss share as part of the Acquisition, partially offset by a decreased emphasis on certain product lines, including construction lending, as well as payoffs due to the successful resolution of several high credit risk loans.
Non-performing loans totaled $10.7 million or 1.08% of Bancorp’s loan portfolio at September 30, 2011, compared to $10.6 million or 1.13% a year ago and $8.7 million, or 0.88%, at June 30, 2011. Accruing loans past due 30 to 89 days totaled $5.0 million at September 30, 2011, compared to $4.6 million a year ago and $763 thousand at June 30, 2011.
“We have a consistent, disciplined, and proactive approach to managing our loans which results in a high quality portfolio,” said Kevin Coonan, Chief Credit Officer. “Our process focuses on early risk recognition, and active account management to help maintain our strong credit quality and ultimately the overall health of the Bank.”
Non-performing loans exclude certain PCI3 loans that are accreting interest. PCI loans totaled $6.5 million at September 30, 2011 (including loans totaling $3.9 million that are accreting interest), compared to $7.9 million at June 30, 2011.
Bancorp’s loan loss provision totaled $500 thousand in the third quarter of 2011, a decrease of $900 thousand from the same quarter a year ago, and a decrease of $2.5 million from the second quarter of 2011. The decreases to the provision for loan losses reflect fewer newly identified loans requiring a specific reserve and a decrease in the construction portfolio, which is assigned a higher allowance factor. Net charge-offs in the third quarter of 2011 totaled $1.2 million and remained relatively unchanged from the same quarter a year ago, compared to $2.1 million in the prior quarter. The provision for loan losses for the nine-month period ended September 30, 2011 totaled $4.6 million, compared to $4.3 million in the same period a year ago. The allowance for loan losses of $13.2 million totaled 1.33% of loans at September 30, 2011, compared to 1.28% and 1.41% at September 30, 2010 and June 30, 2011, respectively. The decrease in the allowance for loan losses as a percentage of loans from the prior quarter primarily reflects third-quarter charge-offs of loans with previously established specific reserves.
Deposits
Total deposits grew $153.2 million, or 15%, over a year ago to $1.2 billion. The higher level of deposits reflects growth in most deposit categories, except for CDARS® time deposits, which decreased $38.1 million. Demand deposits comprised 31.8% of total deposits at September 30, 2011, compared to 30.4% at June 30, 2011 and 27.0% a year ago.
Earnings
The acquired operations of the former Charter Oak Bank contributed approximately $1.6 million to Bancorp’s pre-tax, third-quarter income, including $448 thousand of gains recognized in interest income on pay-offs of PCI loans, $405 thousand of accretion on purchased non-credit impaired loans, and $34 thousand in loan loss provision. The acquired operations of the former Charter Oak Bank contributed approximately $4.0 million to Bancorp’s pre-tax, year-to-date income, including $2.6 million of accretion on purchased non-credit impaired loans, $1.7 million of gains recognized in interest income on pay-offs of PCI loans, $1.0 million in Acquisition-related third-party costs, $1.0 million in loan loss provision, and $146 thousand in bargain purchase gain. The quarterly and year-to-date income amounts discussed above exclude allocated overhead and allocated cost of funds. The current level of accretion is expected to continue to decline.
The tax-equivalent net interest margin was 4.76% in the third quarter of 2011, compared to 4.88% in the same quarter last year and 5.51% in the second quarter of 2011. Net interest income in the third quarter of 2011 totaled $15.2 million, increasing $1.3 million, or 9.0%, from the same period last year. The increase primarily reflects the acquisition of loans from the former Charter Oak Bank and a reduction in the cost of deposits, partially offset by a $924 thousand pre-payment penalty on an FHLB advance. Net interest income decreased $1.8 million, or 10.5%, from the prior quarter, primarily related to the pre-payment penalty on an FHLB advance discussed above, a lower level of gains resulting from PCI loan pay-offs, as well as a lower level of accretion on purchased non-credit impaired loans as loans mature.
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3 Purchase Credit Impaired Loans
2
The tax-equivalent net interest margin was 5.25% in the first nine months of 2011 compared to 4.96% in the first nine months of 2010. The net interest income for the first nine months of 2011 totaled $48.1 million, representing an increase of $7.3 million, or 17.8%, from the same period last year. The increase primarily reflects the acquisition of loans from the former Charter Oak Bank and a reduction in the cost of deposits, partially offset by the pre-payment penalty on the FHLB advance discussed above.
“As we expand the Bank of Marin franchise, we also look to create efficiencies by offsetting the costs of growth with expense savings, “ said Christina Cook, Chief Financial Officer. “From renewing office space leases at market rates to improving processes through automation, our goal is to closely manage expenses overall.”
Non-interest income in the third quarter of 2011 totaled $1.6 million, compared to $1.3 million in the same period last year, and remained relatively unchanged from the prior quarter. The increase from the same quarter a year ago reflects higher Wealth Management and Trust Services fees and other income. Non-interest income for the first nine months of 2011 totaled $4.7 million, an increase of $584 thousand, or 14.0%, from the first nine months of 2010. The increase relates to the pre-tax bargain purchase gain of $146 thousand from the Acquisition and higher Wealth Management and Trust Services fees.
Non-interest expense totaled $9.4 million in the third quarter of 2011, an increase of $914 thousand, or 10.7%, from the same quarter a year ago. The increase primarily reflects higher personnel costs and higher occupancy and equipment cost associated with branch expansion, as well as data processing costs associated with the Acquisition. Non-interest expense decreased $577 thousand, or 5.8%, from the prior quarter due to the absence of one-time Acquisition related third-party costs, which totaled $642 thousand in the prior quarter. Non-interest expense totaled $28.5 million and $25.3 million in the first nine months of 2011 and 2010, respectively, representing a 12.8% increase. The increase primarily reflects higher personnel and occupancy costs associated with branch expansion, as well as one-time Acquisition-related third-party costs of approximately $1.0 million, partially offset by lower FDIC insurance expense due to a change in the FDIC assessment base.
About Bank of Marin Bancorp
Bank of Marin Bancorp's assets total $1.4 billion. Bank of Marin, as the sole subsidiary of Bank of Marin Bancorp, is the largest community bank in Marin County with seventeen offices in Marin, San Francisco, Napa and Sonoma counties. The Bank's Administrative offices are located in Novato, California. Bank of Marin offers business and personal banking, private banking and wealth management services, with a strong focus on supporting the local community. Bank of Marin Bancorp is included in the Russell 2000 Small-Cap Index, is recognized as a Top 200 Community Bank, ranked number 43 in the U.S. by US Banker Magazine, and has received the highest five star rating from Bauer Financial for more than ten years (www.bauerfinancial.com). Celebrating its 21st anniversary in 2011, Bank of Marin has been recognized as one of the "Best Places to Work in the Bay Area" and one of the "Top Corporate Philanthropists" by the San Francisco Business Times.
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, estimated fair values related to the assets acquired and liabilities assumed of the former Charter Oak Bank, general economic conditions, the economic downturn in the United States and abroad, changes in interest rates, deposit flows, real estate values, and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors 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.
3
BANK OF MARIN BANCORP
FINANCIAL HIGHLIGHTS
Year To Year Comparison
September 30, 2011
(dollars in thousands, except per share data; unaudited) | ||||||||||||||||
THIRD QUARTER | QTD 2011 | QTD 2010 | CHANGE | % CHANGE | ||||||||||||
NET INCOME | $ | 4,233 | $ | 3,359 | $ | 874 | 26.0 | % | ||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.79 | $ | 0.63 | $ | 0.16 | 25.4 | % | ||||||||
RETURN ON AVERAGE ASSETS (ROA) | 1.23 | % | 1.10 | % | 0.13 | % | 11.8 | % | ||||||||
RETURN ON AVERAGE EQUITY (ROE) | 12.78 | % | 11.32 | % | 1.46 | % | 12.9 | % | ||||||||
EFFICIENCY RATIO | 56.13 | % | 55.70 | % | 0.43 | % | 0.8 | % | ||||||||
TAX-EQUIVALENT NET INTEREST MARGIN 1 | 4.76 | % | 4.88 | % | (0.12 | %) | (2.5 | %) | ||||||||
NET CHARGE-OFFS | $ | 1,196 | $ | 1,150 | $ | 46 | 4.0 | % | ||||||||
NET CHARGE-OFFS TO AVERAGE LOANS | 0.12 | % | 0.12 | % | 0.00 | % | 0.0 | % | ||||||||
YEAR-TO-DATE | YTD 2011 | YTD 2010 | CHANGE | % CHANGE | ||||||||||||
NET INCOME | $ | 12,181 | $ | 9,644 | $ | 2,537 | 26.3 | % | ||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 2.26 | $ | 1.82 | $ | 0.44 | 24.2 | % | ||||||||
RETURN ON AVERAGE ASSETS (ROA) | 1.24 | % | 1.10 | % | 0.14 | % | 12.7 | % | ||||||||
RETURN ON AVERAGE EQUITY (ROE) | 12.74 | % | 11.27 | % | 1.47 | % | 13.0 | % | ||||||||
EFFICIENCY RATIO | 54.02 | % | 56.25 | % | (2.23 | %) | (4.0 | %) | ||||||||
TAX-EQUIVALENT NET INTEREST MARGIN 1 | 5.25 | % | 4.96 | % | 0.29 | % | 5.8 | % | ||||||||
NET CHARGE-OFFS | $ | 3,718 | $ | 2,895 | $ | 823 | 28.4 | % | ||||||||
NET CHARGE-OFFS TO AVERAGE LOANS | 0.38 | % | 0.31 | % | 0.07 | % | 22.6 | % | ||||||||
AT PERIOD END | September 30, 2011 | September 30, 2010 | CHANGE | % CHANGE | ||||||||||||
TOTAL ASSETS | $ | 1,362,717 | $ | 1,219,214 | $ | 143,503 | 11.8 | % | ||||||||
LOANS: | ||||||||||||||||
COMMERCIAL | $ | 172,389 | $ | 152,188 | $ | 20,201 | 13.3 | % | ||||||||
REAL ESTATE | ||||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 160,558 | $ | 144,931 | $ | 15,627 | 10.8 | % | ||||||||
COMMERCIAL INVESTOR-OWNED | $ | 420,427 | $ | 374,030 | $ | 46,397 | 12.4 | % | ||||||||
CONSTRUCTION | $ | 54,806 | $ | 82,581 | $ | (27,775 | ) | (33.6 | %) | |||||||
HOME EQUITY | $ | 97,323 | $ | 89,052 | $ | 8,271 | 9.3 | % | ||||||||
OTHER RESIDENTIAL | $ | 63,850 | $ | 67,914 | $ | (4,064 | ) | (6.0 | %) | |||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 23,290 | $ | 27,438 | $ | (4,148 | ) | (15.1 | %) | |||||||
TOTAL LOANS | $ | 992,643 | $ | 938,134 | $ | 54,509 | 5.8 | % | ||||||||
NON-PERFORMING LOANS 2: | ||||||||||||||||
COMMERCIAL | $ | 3,147 | $ | 1,562 | $ | 1,585 | 101.5 | % | ||||||||
REAL ESTATE | ||||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 2,169 | $ | 3,388 | $ | (1,219 | ) | (36.0 | %) | |||||||
CONSTRUCTION | $ | 3,028 | $ | 4,955 | $ | (1,927 | ) | (38.9 | %) | |||||||
HOME EQUITY | $ | 583 | $ | 150 | $ | 433 | 288.7 | % | ||||||||
OTHER RESIDENTIAL | $ | 1,400 | $ | 150 | $ | 1,250 | 833.3 | % | ||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 413 | $ | 404 | $ | 9 | 2.2 | % | ||||||||
TOTAL NON-PERFORMING LOANS | $ | 10,740 | $ | 10,609 | $ | 131 | 1.2 | % | ||||||||
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE3 | $ | 4,967 | $ | 4,636 | $ | 331 | 7.1 | % | ||||||||
LOAN LOSS RESERVE TO LOANS | 1.33 | % | 1.28 | % | 0.05 | % | 3.9 | % | ||||||||
LOAN LOSS RESERVE TO NON-PERFORMING LOANS | 1.23 | x | 1.13 | x | 0.10 | x | 8.8 | % | ||||||||
NON-PERFORMING LOANS TO TOTAL LOANS | 1.08 | % | 1.13 | % | (0.05 | %) | (4.4 | %) | ||||||||
TEXAS RATIO 4 | 7.52 | % | 8.23 | % | (0.71 | %) | (8.6 | %) | ||||||||
TOTAL DEPOSITS | $ | 1,176,525 | $ | 1,023,278 | $ | 153,247 | 15.0 | % | ||||||||
LOAN TO DEPOSIT RATIO | 84.4 | % | 91.7 | % | (7.3 | %) | (8.0 | %) | ||||||||
STOCKHOLDERS' EQUITY | $ | 133,001 | $ | 118,614 | $ | 14,387 | 12.1 | % | ||||||||
BOOK VALUE PER SHARE | $ | 24.95 | $ | 22.56 | $ | 2.39 | 10.6 | % | ||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS 5 | 9.71 | % | 9.73 | % | (0.02 | %) | (0.2 | %) | ||||||||
TOTAL RISK BASED CAPITAL RATIO-BANK 6 | 13.0 | % | 12.5 | % | 0.5 | % | 4.0 | % | ||||||||
TOTAL RISK BASED CAPITAL RATIO-BANCORP6 | 13.3 | % | 12.9 | % | 0.4 | % | 3.1 | % |
1 Net interest income is annualized by dividing actual number of days in the period times 360 days.
2 Excludes purchased-credit impaired (PCI) loans with a carrying value of $3.9 million that are accreting interest at September 30, 2011 and zero at September 30, 2010. These amounts are excluded as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status.
3 Excludes purchased-credit impaired loans.
4 Non-performing assets + 90 day delinquent loans)/(tangible common equity + allowance for loan losses).
5 Tangible common equity includes common stock, retained earnings and unrealized gain on available for sale securities, net of tax, less intangible assets. Tangible assets exclude core deposit intangibles totaling $695 thousand at September 30, 2011 and zero at September 30, 2010.
6 Current period estimated.
4
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF CONDITION
at September 30, 2011, June 30, 2011 and September 30, 2010
(in thousands, except share data; unaudited) | September 30, 2011 | June 30, 2011 | September 30, 2010 | |||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 130,675 | $ | 88,043 | $ | 73,546 | ||||||
Short-term investments | 2,111 | 22,116 | 24,208 | |||||||||
Cash and cash equivalents | 132,786 | 110,159 | 97,754 | |||||||||
Investment securities | ||||||||||||
Held to maturity, at amortized cost | 39,077 | 35,514 | 29,809 | |||||||||
Available for sale (at fair value; amortized cost $156,531, $164,371 and $114,625 at September 30, 2011, June 30, 2011, and September 30, 2010, respectively) | 159,478 | 167,406 | 118,113 | |||||||||
Total investment securities | 198,555 | 202,920 | 147,922 | |||||||||
Loans, net of allowance for loan losses of $13,224, $13,920 and $12,023 at September 30, 2011, June 30, 2011 and September 30, 2010, respectively | 979,419 | 972,714 | 926,111 | |||||||||
Bank premises and equipment, net | 9,624 | 9,280 | 8,584 | |||||||||
Interest receivable and other assets | 42,333 | 42,320 | 38,843 | |||||||||
Total assets | $ | 1,362,717 | $ | 1,337,393 | $ | 1,219,214 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||
Liabilities | ||||||||||||
Deposits | ||||||||||||
Non-interest bearing | $ | 373,844 | $ | 346,317 | $ | 276,320 | ||||||
Interest bearing | ||||||||||||
Transaction accounts | 128,916 | 133,429 | 99,367 | |||||||||
Savings accounts | 74,392 | 72,458 | 52,991 | |||||||||
Money market accounts | 417,505 | 403,782 | 392,381 | |||||||||
CDARS® time accounts | 32,592 | 31,674 | 70,661 | |||||||||
Other time accounts | 149,276 | 151,246 | 131,558 | |||||||||
Total deposits | 1,176,525 | 1,138,906 | 1,023,278 | |||||||||
Federal Home Loan Bank borrowings | 35,000 | 55,000 | 55,000 | |||||||||
Subordinated debenture | 5,000 | 5,000 | 5,000 | |||||||||
Interest payable and other liabilities | 13,191 | 9,429 | 17,322 | |||||||||
Total liabilities | 1,229,716 | 1,208,335 | 1,100,600 | |||||||||
Stockholders' Equity | ||||||||||||
Preferred stock, no par value, $1,000 per share liquidation preference | ||||||||||||
Authorized - 5,000,000 shares; none issued | --- | --- | --- | |||||||||
Common stock, no par value | ||||||||||||
Authorized - 15,000,000 shares | ||||||||||||
Issued and outstanding - 5,331,368 shares, 5,321,227 shares and 5,258,487 shares at September 30, 2011, June 30, 2011 and September 30, 2010, respectively | 56,670 | 56,265 | 54,664 | |||||||||
Retained earnings | 74,622 | 71,241 | 61,927 | |||||||||
Accumulated other comprehensive income, net | 1,709 | 1,552 | 2,023 | |||||||||
Total stockholders' equity | 133,001 | 129,058 | 118,614 | |||||||||
Total liabilities and stockholders' equity | $ | 1,362,717 | $ | 1,337,393 | $ | 1,219,214 |
5
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF INCOME
Three months ended | Nine months ended | |||||||||||||||||||
(in thousands, unaudited) | Sept. 30, 2011 | June 30, 2011 | Sept. 30, 2010 | Sept. 30, 2011 | Sept. 30, 2010 | |||||||||||||||
Interest income | ||||||||||||||||||||
Interest and fees on loans | $ | 15,567 | $ | 16,862 | $ | 14,296 | $ | 48,329 | $ | 42,146 | ||||||||||
Interest on investment securities | ||||||||||||||||||||
Securities on U.S. Government agencies | 1,153 | 745 | 829 | 2,631 | 2,442 | |||||||||||||||
Obligations of state and political subdivisions | 298 | 303 | 284 | 903 | 855 | |||||||||||||||
Corporate debt securities and other | 151 | 171 | 144 | 433 | 452 | |||||||||||||||
Interest on Federal funds sold and short-term investments | 56 | 56 | 48 | 152 | 98 | |||||||||||||||
Total interest income | 17,225 | 18,137 | 15,601 | 52,448 | 45,993 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Interest on interest-bearing transaction accounts | 35 | 48 | 32 | 121 | 81 | |||||||||||||||
Interest on savings accounts | 21 | 25 | 27 | 75 | 79 | |||||||||||||||
Interest on money market accounts | 326 | 341 | 602 | 1,004 | 2,128 | |||||||||||||||
Interest on CDARS® time accounts | 50 | 48 | 221 | 192 | 663 | |||||||||||||||
Interest on other time accounts | 305 | 315 | 391 | 978 | 1,122 | |||||||||||||||
Interest on borrowed funds | 1,268 | 357 | 363 | 1,977 | 1,070 | |||||||||||||||
Total interest expense | 2,005 | 1,134 | 1,636 | 4,347 | 5,143 | |||||||||||||||
Net interest income | 15,220 | 17,003 | 13,965 | 48,101 | 40,850 | |||||||||||||||
Provision for loan losses | 500 | 3,000 | 1,400 | 4,550 | 4,300 | |||||||||||||||
Net interest income after provision for loan losses | 14,720 | 14,003 | 12,565 | 43,551 | 36,550 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Service charges on deposit accounts | 478 | 468 | 446 | 1,389 | 1,355 | |||||||||||||||
Wealth Management and Trust Services | 486 | 469 | 364 | 1,389 | 1,127 | |||||||||||||||
Other income | 601 | 644 | 497 | 1,967 | 1,679 | |||||||||||||||
Total non-interest income | 1,565 | 1,581 | 1,307 | 4,745 | 4,161 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and related benefits | 5,320 | 5,220 | 4,665 | 15,469 | 13,832 | |||||||||||||||
Occupancy and equipment | 1,021 | 1,093 | 880 | 3,021 | 2,692 | |||||||||||||||
Depreciation and amortization | 329 | 314 | 335 | 951 | 1,033 | |||||||||||||||
FDIC insurance | 189 | 214 | 388 | 790 | 1,125 | |||||||||||||||
Data processing | 642 | 909 | 491 | 2,133 | 1,422 | |||||||||||||||
Professional services | 465 | 740 | 550 | 1,938 | 1,436 | |||||||||||||||
Other expense | 1,455 | 1,508 | 1,198 | 4,247 | 3,780 | |||||||||||||||
Total non-interest expense | 9,421 | 9,998 | 8,507 | 28,549 | 25,320 | |||||||||||||||
Income before provision for income taxes | 6,864 | 5,586 | 5,365 | 19,747 | 15,391 | |||||||||||||||
Provision for income taxes | 2,631 | 2,147 | 2,006 | 7,566 | 5,747 | |||||||||||||||
Net income | $ | 4,233 | $ | 3,439 | $ | 3,359 | $ | 12,181 | $ | 9,644 | ||||||||||
Net income per common share: | �� | |||||||||||||||||||
Basic | $ | 0.80 | $ | 0.65 | $ | 0.64 | $ | 2.30 | $ | 1.84 | ||||||||||
Diluted | $ | 0.79 | $ | 0.64 | $ | 0.63 | $ | 2.26 | $ | 1.82 | ||||||||||
Weighted average shares used to compute net income per common share: | ||||||||||||||||||||
Basic | 5,310 | 5,300 | 5,241 | 5,298 | 5,231 | |||||||||||||||
Diluted | 5,390 | 5,385 | 5,311 | 5,381 | 5,305 | |||||||||||||||
Dividends declared per common share | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.48 | $ | 0.45 |
6
Three months ended | Three months ended | Three months ended | ||||||||||||||||||||||||||||||||||
September 30, 2011 | June 30, 2011 | September 30, 2010 | ||||||||||||||||||||||||||||||||||
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) | $ | 94,153 | $ | 56 | 0.23 | % | $ | 89,952 | $ | 56 | 0.25 | % | $ | 65,461 | $ | 48 | 0.29 | % | ||||||||||||||||||
Investment securities | ||||||||||||||||||||||||||||||||||||
U.S. Government agencies (2) | 142,459 | 1,153 | 3.24 | % | 117,057 | 745 | 2.55 | % | 94,255 | 829 | 3.52 | % | ||||||||||||||||||||||||
Corporate CMOs and other (2) | 18,053 | 151 | 3.35 | % | 16,401 | 171 | 4.17 | % | 12,333 | 144 | 4.67 | % | ||||||||||||||||||||||||
Obligations of state and political subdivisions (3) | 35,064 | 449 | 5.12 | % | 34,986 | 460 | 5.26 | % | 30,068 | 431 | 5.73 | % | ||||||||||||||||||||||||
Loans and banker's acceptances (1) (3) (4) | 982,165 | 15,676 | 6.25 | % | 979,550 | 16,955 | 6.85 | % | 935,116 | 14,374 | 6.01 | % | ||||||||||||||||||||||||
Total interest-earning assets (1) | 1,271,894 | 17,485 | 5.38 | % | 1,237,946 | 18,387 | 5.88 | % | 1,137,233 | 15,826 | 5.45 | % | ||||||||||||||||||||||||
Cash and non-interest-bearing due from banks | 46,799 | 45,133 | 34,464 | |||||||||||||||||||||||||||||||||
Bank premises and equipment, net | 9,484 | 8,971 | 8,524 | |||||||||||||||||||||||||||||||||
Interest receivable and other assets, net | 32,825 | 38,391 | 32,056 | |||||||||||||||||||||||||||||||||
Total assets | $ | 1,361,002 | $ | 1,330,441 | $ | 1,212,277 | ||||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 129,862 | $ | 35 | 0.11 | % | $ | 127,544 | $ | 48 | 0.15 | % | $ | 102,982 | $ | 32 | 0.12 | % | ||||||||||||||||||
Savings accounts | 72,288 | 21 | 0.12 | % | 69,357 | 25 | 0.14 | % | 52,091 | 27 | 0.21 | % | ||||||||||||||||||||||||
Money market accounts | 413,186 | 326 | 0.31 | % | 395,159 | 341 | 0.35 | % | 388,549 | 602 | 0.61 | % | ||||||||||||||||||||||||
CDARS® time accounts | 32,139 | 50 | 0.62 | % | 31,879 | 48 | 0.60 | % | 78,318 | 221 | 1.12 | % | ||||||||||||||||||||||||
Other time accounts | 150,199 | 305 | 0.81 | % | 156,008 | 315 | 0.81 | % | 130,276 | 391 | 1.19 | % | ||||||||||||||||||||||||
FHLB fixed-rate advances | 52,391 | 1,232 | 9.33 | % | 55,000 | 320 | 2.33 | % | 55,000 | 323 | 2.33 | % | ||||||||||||||||||||||||
Subordinated debenture (1) | 5,000 | 36 | 2.82 | % | 5,000 | 37 | 2.93 | % | 5,000 | 40 | 3.13 | % | ||||||||||||||||||||||||
Total interest-bearing liabilities | 855,065 | 2,005 | 0.93 | % | 839,947 | 1,134 | 0.54 | % | 812,216 | 1,636 | 0.80 | % | ||||||||||||||||||||||||
Demand accounts | 364,502 | 346,469 | 271,591 | |||||||||||||||||||||||||||||||||
Interest payable and other liabilities | 10,035 | 16,062 | 10,744 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 131,400 | 127,963 | 117,726 | |||||||||||||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,361,002 | $ | 1,330,441 | $ | 1,212,277 | ||||||||||||||||||||||||||||||
Tax-equivalent net interest income/margin (1) | $ | 15,480 | 4.76 | % | $ | 17,253 | 5.51 | % | $ | 14,190 | 4.88 | % | ||||||||||||||||||||||||
Reported net interest income/margin (1) | $ | 15,220 | 4.68 | % | $ | 17,003 | 5.43 | % | $ | 13,965 | 4.81 | % | ||||||||||||||||||||||||
Tax-equivalent net interest rate spread | 4.45 | % | 5.34 | % | 4.65 | % |
Nine months ended | Nine months ended | |||||||||||||||||||||||
September 30, 2011 | September 30, 2010 | |||||||||||||||||||||||
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) | $ | 81,609 | $ | 152 | 0.25 | % | $ | 37,292 | $ | 96 | 0.34 | % | ||||||||||||
Federal funds sold | 86 | --- | 0.01 | % | 4,076 | 2 | 0.06 | % | ||||||||||||||||
Investment securities | ||||||||||||||||||||||||
U.S. Government agencies (2) | 117,413 | 2,631 | 2.99 | % | 90,507 | 2,442 | 3.60 | % | ||||||||||||||||
Corporate CMOs and other (2) | 16,783 | 433 | 3.44 | % | 13,017 | 452 | 4.63 | % | ||||||||||||||||
Obligations of state and political subdivisions (3) | 34,984 | 1,370 | 5.22 | % | 30,265 | 1,298 | 5.98 | % | ||||||||||||||||
Loans and banker's acceptances (1) (3) (4) | 975,548 | 48,621 | 6.57 | % | 928,807 | 42,358 | 5.49 | % | ||||||||||||||||
Total interest-earning assets (1) | 1,226,423 | 53,207 | 5.72 | % | 1,103,964 | 46,648 | 5.57 | % | ||||||||||||||||
Cash and non-interest-bearing due from banks | 44,684 | 33,648 | ||||||||||||||||||||||
Bank premises and equipment, net | 8,977 | 8,167 | ||||||||||||||||||||||
Interest receivable and other assets, net | 34,136 | 30,964 | ||||||||||||||||||||||
Total assets | $ | 1,314,220 | $ | 1,176,743 | ||||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 123,436 | $ | 121 | 0.13 | % | $ | 96,837 | $ | 81 | 0.11 | % | ||||||||||||
Savings accounts | 67,963 | 75 | 0.15 | % | 50,551 | 79 | 0.21 | % | ||||||||||||||||
Money market accounts | 396,626 | 1,004 | 0.34 | % | 394,084 | 2,128 | 0.72 | % | ||||||||||||||||
CDARS® time accounts | 39,402 | 192 | 0.65 | % | 71,762 | 663 | 1.24 | % | ||||||||||||||||
Other time accounts | 151,612 | 978 | 0.86 | % | 122,126 | 1,122 | 1.23 | % | ||||||||||||||||
FHLB borrowings | 54,683 | 1,868 | 4.57 | % | 55,000 | 958 | 2.33 | % | ||||||||||||||||
Subordinated debenture (1) | 5,000 | 109 | 2.87 | % | 5,000 | 112 | 2.95 | % | ||||||||||||||||
Total interest-bearing liabilities | 838,722 | 4,347 | 0.69 | % | 795,360 | 5,143 | 0.86 | % | ||||||||||||||||
Demand accounts | 334,747 | 257,736 | ||||||||||||||||||||||
Interest payable and other liabilities | 12,904 | 9,208 | ||||||||||||||||||||||
Stockholders' equity | 127,847 | 114,439 | ||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,314,220 | $ | 1,176,743 | ||||||||||||||||||||
Tax-equivalent net interest income/margin (1) | $ | 48,860 | 5.25 | % | $ | 41,505 | 4.96 | % | ||||||||||||||||
Reported net interest income/margin (1) | $ | 48,101 | 5.17 | % | $ | 40,850 | 4.88 | % | ||||||||||||||||
Tax-equivalent net interest rate spread | 5.03 | % | 4.71 | % |
(1) Interest income/expense is divided by actual number of days in the period times 360 days to correspond to stated interest rate terms, where applicable.
(2) Yields on available-for-sale securities are calculated based on amortized cost balances rather than fair value, as changes in fair value are reflected as a component of stockholders' equity.
(3) Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the Federal statutory rate of 35 percent.
(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.
7