(Source: Business Wire)
Bank of Marin Bancorp ("Bancorp") (NASDAQ:BMRC) announced 2009
third-quarter earnings of $3.6 million, up $906 thousand, or 33.6%, from
the same period a year ago, and up $468 thousand, or 14.9% from the
second quarter of 2009. Diluted earnings per share were $0.68 in the
third quarter of 2009, up sixteen cents, or 30.8% from the third quarter
of 2008, and up eight cents, or 13.3% from the second quarter of 2009.
"We are pleased to achieve the highest quarterly earnings in our history
this quarter," said Russell A. Colombo, President and Chief Executive
Officer. "Our business success is based on our consistent execution on
the fundamentals of responsible, solid banking which has been
particularly important in this challenging economic environment."
Bancorp also provided the following highlights on its operating and
financial performance for the third quarter of 2009:
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"Our capital growth allows us to withstand fluctuations in an uncertain
economy and is a reflection of our overall strength," said Christina J.
Cook, Chief Financial Officer. "We are pleased to continue to exceed
regulatory standards for well-capitalized institutions."
Loans and Credit Quality
Total loans reached $919.8 million at the end of third quarter,
representing growth of $80.8 million or a 9.6% increase from the same
time last year. The mix of loans reflects an increase in home equity
lines of credit as a percentage of total loans, as well as a slight
decrease in commercial real estate loans as a percentage of total loans.
Non-performing loans totaled $6.0 million, or 0.7% of Bancorp's loan
portfolio at September 30, 2009 compared to $5.9 million or 0.6% at June
30, 2009 and $823 thousand a year ago. Accruing loans past due 30 to 89
days declined to $4.4 million at September 30, 2009, down from $7.2
million and $10.2 million at June 30, 2009 and September 30, 2008,
respectively. The allowance for loan losses of $11.1 million is
equivalent to 184% of non-performing loans. The allowance for loan
losses as a percentage of loans totaled 1.21% at September 30, 2009
compared to 1.11% a year ago. The increase in the allowance for loan
losses as a percentage of loans reflects an increased allowance factor
for residential subdivision land loans.
Deposits
Total deposits grew $100.1 million or 11.8% over a year ago. New deposit
account openings during the first nine months of 2009 increased 17% over
the same period in 2008. Early in September 2009, Bank of Marin opened
the new Greenbrae branch, which has generated over $5 million in
deposits in its first month of operation. Non-interest bearing deposits
totaled 26.0% of total deposits at September 30, 2009 and have provided
sturdy and low-cost funding for Bancorp's operations.
"Our healthy deposit growth is a reflection of the confidence and trust
our customers continue to place in us," said Colombo. "By solidifying
our footprint in Marin with a new branch in Greenbrae, we are well
positioned to increase market share."
Earnings
Earnings for the nine-month period ended September 30, 2009 totaled
$10.0 million, an increase of $606 thousand, or 6.5%, over the same
period a year ago. Diluted earnings per share for the nine-month period
ended September 30, 2009 totaled $1.66, compared to $1.79 for the same
period a year ago. The earnings per common share for the nine-month
period ended September 30, 2009 were reduced by $0.25 resulting from
Bancorp's early repurchase of the preferred stock that had been issued
under the TCPP1 and dividends on the preferred stock.
Further, earnings reflected a special assessment imposed by the FDIC2
on all banks of $496 thousand in the second quarter of 2009, which
reduced diluted earnings per share by $0.06 for the nine-month period
ended September 30, 2009.
Net interest income of $13.3 million in the quarter ended September 30,
2009 increased $1.0 million, or 8.3%, from the same period last year,
and the year-to-date amount for 2009 increased $3.7 million, or 10.3%
from the same period last year. The increases reflect growth in
interest-earning assets and a reduced cost of funds, partially offset by
decreased loan yields primarily due to a lower-rate environment. The
tax-equivalent net interest margin was 5.18% in the third quarter of
2009 compared to 5.35% in the third quarter of 2008 and 5.16% in the
first nine months of 2009 compared to 5.43% in the first nine months of
2008. Decreases in the tax-equivalent net interest margin were primarily
due to the downward re-pricing of our loan portfolio in a declining rate
environment and to a lesser extent, interest foregone on non-accrual
loans (representing a nine-basis point and a eight-basis point impact on
the net interest margin in the quarter and nine months ended September
30, 2009, respectively).
Non-interest income totaled $1.3 million in the third quarter of 2009,
an increase of $137 thousand or 11.5% from the same period last year.
Excluding the $457 thousand pre-tax non-recurring gain on the sale of
Visa Inc. shares in the first quarter of 2008 discussed below,
non-interest income of $3.8 million for the first nine months of 2009
remained relatively unchanged from the same period last year.
Non-interest expense totaled $7.8 million in the third quarter of 2009
and $23.9 million in the first nine months of 2009. Excluding the first
quarter 2008 reversal of the $242 thousand Visa Inc.
