Attached files
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| 8-K - BANK OF MARIN BANCORP 8-K 4-25-2011 - Bank of Marin Bancorp | form8k.htm |
EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
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CONTACT: Sandy Pfaff
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415-459-8800
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sandy@pfaffpr.com
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BANK OF MARIN BANCORP REPORTS RECORD FIRST QUARTER EARNINGS OF $4.5 MILLION
ACQUISITION OF CHARTER OAK BANK CONTRIBUTES POSITIVELY TO EARNINGS AND GROWTH
NOVATO, CA, April 25, 2011 – Bank of Marin Bancorp (“Bancorp”, NASDAQ: BMRC) announced first quarter 2011 earnings of $4.5 million, up 53% from $2.9 million in the first quarter of 2010 and up 15% from $3.9 million in the fourth quarter of 2010. Diluted earnings per share were $0.84, up $0.11 from the fourth quarter of 2010 and up $0.28 from the same quarter a year ago.
First quarter 2011 results 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”). Through the Acquisition, Bancorp purchased $61.8 million of loans at fair value without loss share and assumed $93.9 million of deposits at fair value, and recorded an $85 thousand acquisition gain, net of tax. These fair value estimates are subject to change for up to one year after the closing date of the Acquisition as additional information relative to Acquisition-date fair values becomes available. Loans totaling approximately $24.4 million, representing loans delinquent more than sixty days or more as of the bid valuation date (October 18, 2010) and certain types of land and construction loans as of the acquisition date were retained by the FDIC.
“We achieved our strategic goals for this quarter including a successful acquisition of certain assets and assumption of certain liabilities of Charter Oak Bank, and are very pleased with the financial results, teamwork and smooth transition,” said Russell A. Colombo, President and CEO. “Our expansion into Napa aligns well with our long term plans, and we're looking forward to serving the Napa community.”
Bancorp also provided the following highlights on its operating and financial performance for the first quarter of 2011:
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·
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Deposits grew $101.1 million, or 10.2%, over a year ago. The growth is mainly due to the assumption of deposits of the former Charter Oak Bank, partly offset by decreases in CDARS® time deposits and the disposition of the internet time deposits assumed as part of the Acquisition. Non-interest bearing deposits grew $65.7 million or 26.5% over a year ago and comprised 28.8% of total deposits at March 31, 2011.
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·
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Loans grew $58.6 million, or 6.4%, over a year ago, including loans purchased as part of the Acquisition.
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The tax equivalent net interest margin totaled 5.44% in the first quarter of 2011, up from 5.00% a year ago, reflecting the accounting for acquired loans.
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Credit quality remains solid with non-performing loans (excluding purchased credit-impaired loans) at 0.92% of loans. Net charge-offs in the first quarter of 2011 decreased to $372 thousand from $682 thousand in the prior quarter and $1.5 million in the same quarter a year ago. The provision for loan losses of $1.1 million remained the same as in the prior quarter and decreased $500 thousand from $1.6 million in the same quarter a year ago.
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·
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The risk-based capital ratio of 13.0% at March 31, 2011 continues to be well above industry regulatory requirements for a well-capitalized institution.
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_____________________________
1 Federal Deposit Insurance Corporation
1
Loans and Credit Quality
Total loans reached $979.0 million at March 31, 2011, representing an increase of $58.6 million, or 6.4%, over a year ago. This growth was significantly impacted by loans purchased as part of the Acquisition, partially offset by the successful resolution through payoffs of several high credit risk loans, as well as the prepayment of certain large credits in a low interest rate environment.
“Our credit quality remains strong as a result of disciplined lending practices and proactive management of the portfolio which have kept loan charge-offs at a low level.” said Christina J. Cook, Chief Financial Officer. “We are applying our same active credit management practices to the acquired loan portfolio as we manage and expand these relationships.”
Non-performing loans, excluding purchased credit-impaired loans, decreased to $9.0 million, or 0.92% of Bancorp’s loan portfolio at March 31, 2011, from $12.9 million, or 1.37% at December 31, 2010 and $11.4 million or 1.24% a year ago. Purchased credit-impaired loans totaled $9.2 million at March 31, 2011. These loans were reflected at fair value as of the Acquisition date, and are excluded from the non-performing designation because Management expects to recover its investment in these loans and the related accretable yield. Accruing loans past due 30 to 89 days increased from $352 thousand at December 31, 2010 and $1.0 million a year ago to $21.9 million at March 31, 2011. Subsequent to quarter end, approximately $11.3 million has been brought current. In addition, Bancorp is in negotiation to renew three loans totaling $7.0 million, which are expected to become current in the second quarter of this year. Based on current loan-to-values for these past due loans, no significant loss exposure to Bancorp is expected.
Bancorp’s loan loss provision totaled $1.1 million in the first quarter of 2011, unchanged from the fourth quarter of 2010 and down $500 thousand from the same quarter a year ago. The allowance for loan losses of $13.1 million totaled 1.34% of loans at March 31, 2011, compared to 1.32% and 1.16% at December 31, 2010 and March 31, 2010, respectively. The increases in the allowance for loan losses as a percentage of loans from both a quarter ago and a year ago reflect a higher level of specific reserves on impaired loans. Net charge-offs in the first quarter of 2011 decreased to $372 thousand from $682 thousand in the prior quarter and $1.5 million in the same quarter a year ago.
All acquired loans, whether or not credit-impaired, were recorded at their estimated fair value at the Acquisition date, and there was no significant change in the credit quality or expected cash flows of the acquired loan portfolio from the Acquisition date through the quarter-end. Therefore Management has not provided significant reserves for loan losses on the acquired loans in the first quarter. We will continue to monitor and provide for losses if appropriate, as these loans season.
Deposits
Total deposits grew $101.1 million, or 10.2%, over a year ago to $1.1 billion. The higher level of deposits reflects growth in most deposit categories, except for CDARS® time deposits and money market accounts, which decreased $41.2 million and $8.9 million, respectively. Demand deposits comprised 28.8% of total deposits at March 31, 2011, compared to 25.1% a year ago. In addition, Management has strategically allowed the $9.0 million internet deposits assumed as part of the Acquisition to run off.
“We have further solidified our strong core deposit base, in part due to the assumption of the deposits of the former Charter Oak Bank.” said Mr. Colombo. “Deposits are a reflection of the trust our customers place in us and we earn that trust by providing the highest level of service and support in each market where we operate.”
Earnings
Net interest income of $15.9 million in the first quarter of 2011 increased $1.8 million, or 12.9%, from the prior quarter, and increased $2.8 million, or 20.9%, from the same period last year. The increases primarily reflect the acquisition of loans from the former Charter Oak Bank and a reduction in the cost of deposits, partially offset by a reduction in the yield on investment securities. The tax-equivalent net interest margin was 5.44% in the first quarter of 2011, compared to 4.92% in the fourth quarter of 2010 and 5.00% in the same quarter last year. The acquisition of the former Charter Oak Bank’s loans and related accretion contributed approximately 47 basis points to the increase in net interest margin. The acquired non-credit impaired loans were initially written down to their fair values at Acquisition date and are being accreted back to their unpaid principal balances over the remaining lives of the loans. The accretion recorded to interest income on these loans totaled $1.3 million in the first quarter of 2011 and is expected to decline gradually over the next few quarters. Excluding accretion, one-time third-party Acquisition-related costs, allocated overhead, allocated cost of funds and bargain purchase gain, the acquired operations of the former Charter Oak Bank contributed approximately $102 thousand, after tax, to Bancorp’s earnings in the first quarter of 2011.
2
Non-interest income in the first quarter of 2011 increased $239 thousand from last quarter and $250 thousand from the same period last year, in part due to the pre-tax bargain purchase gain of $146 thousand from the Acquisition, higher Visa debit card fees and Wealth Management and Trust Services fees.
Non-interest expense totaled $9.1 million in the first quarter of 2011, an increase of $1.1 million, or 13.6%, from the prior quarter and $908 thousand, or 11.0%, from the same quarter a year ago, primarily due to higher personnel costs associated with franchise expansion, as well as higher professional costs and data processing costs associated with the Acquisition. During the first quarter of 2011, Bancorp incurred initial Acquisition-related third-party costs of approximately $348 thousand. Management expects that additional one-time Acquisition-related third-party costs not to exceed $600 thousand in the second quarter. Management anticipates systems integration will be completed in June and the related expenses to be finalized in July of 2011.
Acquisition
The following table reflects the estimated fair values of the assets acquired and liabilities assumed related to the Acquisition, including cash received and receivable from the FDIC on the Acquisition date:
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(Dollars in thousands, unaudited)
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Acquisition Date
February 18, 2011
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Assets:
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Cash and due from banks
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$ | 34,144 | ||
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Interest bearing deposits in banks
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5,663 | |||
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Federal funds sold
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4,235 | |||
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Total cash and cash equivalents
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44,042 | |||
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Loans
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61,765 | |||
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Core deposit intangible
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725 | |||
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Other assets (including the receivable from the FDIC)
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1,231 | |||
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Total assets acquired
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107,763 | |||
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Liabilities:
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Deposits:
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Noninterest bearing
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27,874 | |||
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Interest bearing
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65,987 | |||
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Total deposits
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93,861 | |||
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Advances from the Federal Home Loan Bank
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13,502 | |||
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Deferred tax liabilities
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62 | |||
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Other liabilities
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253 | |||
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Total liabilities assumed
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107,678 | |||
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Bargain purchase gain, net of tax (included in other non-interest income)
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$ | 85 | ||
3
The following table presents the net liabilities assumed from Charter Oak Bank and the estimated fair value adjustments, which resulted in a bargain purchase gain as of the Acquisition date as the loans were purchased at discount:
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(Dollars in thousands, unaudited)
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Acquisition Date
February 18, 2011
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Book value of net liabilities assumed from Charter Oak Bank
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$ | (15,750 | ) | |
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Cash received from the FDIC upon initial settlement
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32,588 | |||
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Receivable from the FDIC
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196 | |||
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Fair value adjustments:
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Loans
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(17,406 | ) | ||
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Core deposit intangible asset
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725 | |||
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Vehicles and equipment
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16 | |||
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Deferred tax liabilities
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(62 | ) | ||
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Deposits
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(220 | ) | ||
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Advances from the Federal Home Loan Bank
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(2 | ) | ||
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Total purchase accounting adjustments
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(16,949 | ) | ||
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Bargain purchase gain, net of tax
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$ | 85 | ||
1 Fair value adjustment on loans includes $11.6 million related to the purchased credit-impaired loans and $5.8 million related to the non-credit-impaired loans.
About Bank of Marin Bancorp
Bank of Marin Bancorp's assets currently exceed $1 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 42 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.
4
BANK OF MARIN BANCORP
FINANCIAL HIGHLIGHTS
Year To Year Comparison
March 31, 2011
(dollars in thousands, except per share data; unaudited)
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FIRST QUARTER
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QTD 2011
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QTD 2010
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CHANGE
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% CHANGE
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NET INCOME
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$ | 4,509 | $ | 2,947 | $ | 1,562 | 53.0 | % | ||||||||
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DILUTED EARNINGS PER COMMON SHARE
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$ | 0.84 | $ | 0.56 | $ | 0.28 | 50.0 | % | ||||||||
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RETURN ON AVERAGE ASSETS (ROA)
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1.44 | % | 1.04 | % | 0.40 | % | 38.5 | % | ||||||||
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RETURN ON AVERAGE EQUITY (ROE)
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14.74 | % | 10.75 | % | 3.99 | % | 37.1 | % | ||||||||
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EFFICIENCY RATIO
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52.24 | % | 56.79 | % | (4.55 | %) | (8.0 | %) | ||||||||
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TAX-EQUIVALENT NET INTEREST MARGIN 1
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5.44 | % | 5.00 | % | 0.44 | % | 8.8 | % | ||||||||
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NET CHARGE-OFFS
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$ | 372 | $ | 1,520 | $ | (1,148 | ) | (75.5 | %) | |||||||
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NET CHARGE-OFFS TO AVERAGE LOANS
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0.04 | % | 0.17 | % | (0.13 | %) | (76.5 | %) | ||||||||
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AT PERIOD END
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March 31, 2011
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March 31, 2010
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CHANGE
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% CHANGE
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TOTAL ASSETS
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$ | 1,290,699 | $ | 1,168,777 | $ | 121,922 | 10.4 | % | ||||||||
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LOANS:
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COMMERCIAL
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$ | 165,322 | $ | 158,762 | $ | 6,560 | 4.1 | % | ||||||||
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REAL ESTATE
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COMMERCIAL OWNER-OCCUPIED
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$ | 165,908 | $ | 146,884 | $ | 19,024 | 13.0 | % | ||||||||
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COMMERCIAL INVESTOR-OWNED
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$ | 380,100 | $ | 338,039 | $ | 42,061 | 12.4 | % | ||||||||
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CONSTRUCTION
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$ | 76,044 | $ | 91,706 | $ | (15,662 | ) | (17.1 | %) | |||||||
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HOME EQUITY
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$ | 95,448 | $ | 85,509 | $ | 9,939 | 11.6 | % | ||||||||
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OTHER RESIDENTIAL
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$ | 67,807 | $ | 70,563 | $ | (2,756 | ) | (3.9 | %) | |||||||
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INSTALLMENT AND OTHER CONSUMER LOANS
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$ | 28,321 | $ | 28,893 | $ | (572 | ) | (2.0 | %) | |||||||
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TOTAL LOANS
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$ | 978,950 | $ | 920,356 | $ | 58,594 | 6.4 | % | ||||||||
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NON-PERFORMING LOANS 2:
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COMMERCIAL
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$ | 3,337 | $ | 1,094 | $ | 2,243 | 205.0 | % | ||||||||
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REAL ESTATE
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COMMERCIAL OWNER-OCCUPIED
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$ | 632 | $ | 3,711 | $ | (3,079 | ) | (83.0 | %) | |||||||
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CONSTRUCTION
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$ | 4,145 | $ | 5,671 | $ | (1,526 | ) | (26.9 | %) | |||||||
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HOME EQUITY
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$ | 323 | $ | 100 | $ | 223 | 223.0 | % | ||||||||
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OTHER RESIDENTIAL
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$ | 141 | $ | 0 | $ | 141 |
NM
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INSTALLMENT AND OTHER CONSUMER LOANS
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$ | 426 | $ | 838 | $ | (412 | ) | (49.2 | %) | |||||||
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TOTAL NON-PERFORMING LOANS
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$ | 9,004 | $ | 11,414 | $ | (2,410 | ) | (21.1 | %) | |||||||
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TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE3
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$ | 21,867 | $ | 1,016 | $ | 20,851 | 2052.3 | % | ||||||||
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LOAN LOSS RESERVE TO LOANS
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1.34 | % | 1.16 | % | 0.18 | % | 15.5 | % | ||||||||
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LOAN LOSS RESERVE TO NON-PERFORMING LOANS
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1.45 | x | 0.93 | x | 0.52 | x | 55.9 | % | ||||||||
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NON-PERFORMING LOANS TO TOTAL LOANS
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0.92 | % | 1.24 | % | (0.32 | %) | (25.8 | %) | ||||||||
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TEXAS RATIO 4
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6.70 | % | 9.39 | % | (2.69 | %) | (28.6 | %) | ||||||||
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TOTAL DEPOSITS
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$ | 1,088,360 | $ | 987,298 | $ | 101,062 | 10.2 | % | ||||||||
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LOAN TO DEPOSIT RATIO
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89.9 | % | 93.2 | % | (3.3 | %) | (3.5 | %) | ||||||||
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STOCKHOLDERS' EQUITY
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$ | 125,484 | $ | 112,512 | $ | 12,972 | 11.5 | % | ||||||||
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BOOK VALUE PER SHARE
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$ | 23.64 | $ | 21.47 | $ | 2.17 | 10.1 | % | ||||||||
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TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS 5
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9.67 | % | 9.49 | % | 0.18 | % | 1.9 | % | ||||||||
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TOTAL RISK BASED CAPITAL RATIO-BANK 6
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12.4 | % | 11.8 | % | 0.6 | % | 5.1 | % | ||||||||
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TOTAL RISK BASED CAPITAL RATIO-BANCORP6
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13.0 | % | 12.5 | % | 0.5 | % | 4.0 | % | ||||||||
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 $1.6 million and $742 thousand at March 31, 2011 and 2010, respectively. Excludes purchased-credit impaired loans of $9.2 million.
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 excludes core deposit intangible totaling $719 thousand.
6 Current period estimated.
5
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BANK OF MARIN BANCORP
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CONSOLIDATED STATEMENT OF CONDITION
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at March 31, 2011, December 31, 2010 and March 31, 2010
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(in thousands, except share data; unaudited)
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March 31, 2011
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December 31, 2010
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March 31, 2010
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Assets
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Cash and due from banks
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$ | 109,850 | $ | 65,724 | $ | 35,811 | ||||||
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Short-term investments
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19,110 | 19,508 | 49,632 | |||||||||
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Cash and cash equivalents
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128,960 | 85,232 | 85,443 | |||||||||
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Investment securities
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Held to maturity, at amortized cost
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34,866 | 34,917 | 30,360 | |||||||||
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Available for sale (at fair value; amortized cost $107,118, $109,070 and $94,434 at March 31, 2011, December 31, 2010, and March 31, 2010, respectively)
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108,726 | 111,736 | 97,176 | |||||||||
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Total investment securities
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143,592 | 146,653 | 127,536 | |||||||||
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Loans, net of allowance for loan losses of $13,069, $12,392 and $10,648 at March 31, 2011, December 31, 2010 and March 31, 2010, respectively.
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965,881 | 929,008 | 909,708 | |||||||||
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Bank premises and equipment, net
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8,750 | 8,419 | 7,938 | |||||||||
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Interest receivable and other assets
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43,516 | 38,838 | 38,152 | |||||||||
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Total assets
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$ | 1,290,699 | $ | 1,208,150 | $ | 1,168,777 | ||||||
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Liabilities and Stockholders' Equity
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Liabilities
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Deposits
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Non-interest bearing
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$ | 313,599 | $ | 282,195 | $ | 247,881 | ||||||
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Interest bearing
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Transaction accounts
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119,331 | 105,177 | 93,604 | |||||||||
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Savings accounts
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67,711 | 56,760 | 51,903 | |||||||||
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Money market accounts
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393,867 | 371,352 | 402,799 | |||||||||
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CDARS® time accounts
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31,670 | 67,261 | 72,906 | |||||||||
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Other time accounts
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162,182 | 132,994 | 118,205 | |||||||||
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Total deposits
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1,088,360 | 1,015,739 | 987,298 | |||||||||
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Federal Home Loan Bank borrowings
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55,000 | 55,000 | 55,000 | |||||||||
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Subordinated debenture
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5,000 | 5,000 | 5,000 | |||||||||
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Interest payable and other liabilities
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16,855 | 10,491 | 8,967 | |||||||||
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Total liabilities
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1,165,215 | 1,086,230 | 1,056,265 | |||||||||
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Stockholders' Equity
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Preferred stock, no par value, $1,000 per share liquidation preference
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Authorized - 5,000,000 shares; none issued
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--- | --- | --- | |||||||||
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Common stock, no par value
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Authorized - 15,000,000 shares
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Issued and outstanding - 5,307,247 shares, 5,290,082 shares and 5,240,044 shares at March 31, 2011, December 31, 2010 and March 31, 2010, respectively
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55,898 | 55,383 | 54,116 | |||||||||
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Retained earnings
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68,653 | 64,991 | 56,806 | |||||||||
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Accumulated other comprehensive income, net
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933 | 1,546 | 1,590 | |||||||||
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Total stockholders' equity
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125,484 | 121,920 | 112,512 | |||||||||
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Total liabilities and stockholders' equity
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$ | 1,290,699 | $ | 1,208,150 | $ | 1,168,777 | ||||||
6
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BANK OF MARIN BANCORP
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CONSOLIDATED STATEMENT OF INCOME
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Three months ended
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(in thousands, unaudited)
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Mar. 31, 2011
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Dec. 31, 2010
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Mar. 31, 2010
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Interest income
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Interest and fees on loans
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$ | 15,900 | $ | 14,093 | $ | 13,681 | ||||||
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Interest on investment securities
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Securities on U.S. Government agencies
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733 | 792 | 728 | |||||||||
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Obligations of state and political subdivisions
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302 | 291 | 286 | |||||||||
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Corporate debt securities and other
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111 | 141 | 170 | |||||||||
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Interest on Federal funds sold and short-term investments
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40 | 47 | 22 | |||||||||
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Total interest income
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17,086 | 15,364 | 14,887 | |||||||||
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Interest expense
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Interest on interest-bearing transaction accounts
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38 | 29 | 23 | |||||||||
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Interest on savings accounts
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29 | 25 | 25 | |||||||||
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Interest on money market accounts
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337 | 339 | 797 | |||||||||
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Interest on CDARS® time accounts
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94 | 179 | 209 | |||||||||
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Interest on other time accounts
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358 | 373 | 354 | |||||||||
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Interest on borrowed funds
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352 | 360 | 351 | |||||||||
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Total interest expense
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1,208 | 1,305 | 1,759 | |||||||||
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Net interest income
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15,878 | 14,059 | 13,128 | |||||||||
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Provision for loan losses
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1,050 | 1,050 | 1,550 | |||||||||
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Net interest income after provision for loan losses
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14,828 | 13,009 | 11,578 | |||||||||
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Non-interest income
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||||||||||||
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Service charges on deposit accounts
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443 | 442 | 446 | |||||||||
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Wealth Management and Trust Services
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434 | 394 | 395 | |||||||||
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Other income
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722 | 524 | 508 | |||||||||
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Total non-interest income
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1,599 | 1,360 | 1,349 | |||||||||
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Non-interest expense
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||||||||||||
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Salaries and related benefits
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4,929 | 4,408 | 4,606 | |||||||||
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Occupancy and equipment
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907 | 884 | 898 | |||||||||
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Depreciation and amortization
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308 | 311 | 338 | |||||||||
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FDIC insurance
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387 | 381 | 362 | |||||||||
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Data processing
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582 | 494 | 446 | |||||||||
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Professional services
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733 | 481 | 432 | |||||||||
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Other expense
|
1,284 | 1,078 | 1,140 | |||||||||
|
Total non-interest expense
|
9,130 | 8,037 | 8,222 | |||||||||
|
Income before provision for income taxes
|
7,297 | 6,332 | 4,705 | |||||||||
|
Provision for income taxes
|
2,788 | 2,424 | 1,758 | |||||||||
|
Net income
|
$ | 4,509 | $ | 3,908 | $ | 2,947 | ||||||
|
Net income per common share:
|
||||||||||||
|
Basic
|
$ | 0.85 | $ | 0.74 | $ | 0.56 | ||||||
|
Diluted
|
$ | 0.84 | $ | 0.73 | $ | 0.56 | ||||||
|
Weighted average shares used to compute net income per common share:
|
||||||||||||
|
Basic
|
5,283 | 5,259 | 5,218 | |||||||||
|
Diluted
|
5,366 | 5,342 | 5,295 | |||||||||
|
Dividends declared per common share
|
$ | 0.16 | $ | 0.16 | $ | 0.15 | ||||||
7
Average Statements of Condition and Analysis of Net Interest Income
|
Three months ended
|
Three months ended
|
Three months ended
|
||||||||||||||||||||||||||||||||||
|
March 31, 2011
|
December 31, 2010
|
March 31, 2010
|
||||||||||||||||||||||||||||||||||
|
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)
|
$ | 62,374 | $ | 40 | 0.26 | % | $ | 60,050 | $ | 47 | 0.31 | % | $ | 23,990 | $ | 22 | 0.37 | % | ||||||||||||||||||
|
Investment securities
|
||||||||||||||||||||||||||||||||||||
|
U.S. Government agencies (2)
|
92,172 | 733 | 3.18 | % | 95,910 | 792 | 3.30 | % | 80,864 | 728 | 3.60 | % | ||||||||||||||||||||||||
|
Corporate CMOs and other (2)
|
15,872 | 111 | 2.80 | % | 15,628 | 141 | 3.61 | % | 14,153 | 170 | 4.80 | % | ||||||||||||||||||||||||
|
Obligations of state and political subdivisions (3)
|
34,900 | 460 | 5.27 | % | 32,756 | 443 | 5.41 | % | 30,383 | 437 | 5.75 | % | ||||||||||||||||||||||||
|
Loans and banker's acceptances (1) (3) (4)
|
979,674 | 15,988 | 6.53 | % | 932,570 | 14,184 | 5.95 | % | 918,654 | 13,742 | 5.98 | % | ||||||||||||||||||||||||
|
Total interest-earning assets (1)
|
1,184,992 | 17,332 | 5.85 | % | 1,136,914 | 15,607 | 5.37 | % | 1,068,044 | 15,099 | 5.65 | % | ||||||||||||||||||||||||
|
Cash and non-interest-bearing due from banks
|
42,378 | 36,567 | 38,067 | |||||||||||||||||||||||||||||||||
|
Bank premises and equipment, net
|
8,468 | 8,531 | 7,977 | |||||||||||||||||||||||||||||||||
|
Interest receivable and other assets, net
|
31,400 | 32,144 | 30,009 | |||||||||||||||||||||||||||||||||
|
Total assets
|
$ | 1,267,238 | $ | 1,214,156 | $ | 1,144,097 | ||||||||||||||||||||||||||||||
|
Liabilities and Stockholders' Equity
|
||||||||||||||||||||||||||||||||||||
|
Interest-bearing transaction accounts
|
$ | 115,067 | $ | 38 | 0.13 | % | $ | 102,117 | $ | 29 | 0.11 | % | $ | 90,626 | $ | 23 | 0.10 | % | ||||||||||||||||||
|
Savings accounts
|
62,574 | 29 | 0.19 | % | 55,259 | 25 | 0.18 | % | 48,569 | 25 | 0.21 | % | ||||||||||||||||||||||||
|
Money market accounts
|
382,794 | 337 | 0.36 | % | 380,165 | 339 | 0.35 | % | 407,152 | 797 | 0.79 | % | ||||||||||||||||||||||||
|
CDARS® time accounts
|
54,432 | 94 | 0.70 | % | 70,453 | 179 | 1.01 | % | 60,270 | 209 | 1.41 | % | ||||||||||||||||||||||||
|
Other time accounts
|
157,631 | 358 | 0.92 | % | 132,062 | 373 | 1.12 | % | 112,940 | 354 | 1.27 | % | ||||||||||||||||||||||||
|
Overnight borrowings (1)
|
--- | --- | --- | 8 | --- | 0.29 | % | --- | --- | --- | ||||||||||||||||||||||||||
|
FHLB fixed-rate advances
|
58,934 | 316 | 2.17 | % | 55,000 | 323 | 2.33 | % | 55,000 | 316 | 2.33 | % | ||||||||||||||||||||||||
|
Subordinated debenture (1)
|
5,000 | 36 | 2.88 | % | 5,000 | 37 | 2.90 | % | 5,000 | 35 | 2.80 | % | ||||||||||||||||||||||||
|
Total interest-bearing liabilities
|
836,432 | 1,208 | 0.59 | % | 800,064 | 1,305 | 0.65 | % | 779,557 | 1,759 | 0.92 | % | ||||||||||||||||||||||||
|
Demand accounts
|
298,075 | 281,563 | 245,117 | |||||||||||||||||||||||||||||||||
|
Interest payable and other liabilities
|
8,635 | 11,524 | 8,231 | |||||||||||||||||||||||||||||||||
|
Stockholders' equity
|
124,096 | 121,005 | 111,192 | |||||||||||||||||||||||||||||||||
|
Total liabilities & stockholders' equity
|
$ | 1,267,238 | $ | 1,214,156 | $ | 1,144,097 | ||||||||||||||||||||||||||||||
|
Tax-equivalent net interest income/margin (1)
|
$ | 16,124 | 5.44 | % | $ | 14,302 | 4.92 | % | $ | 13,340 | 5.00 | % | ||||||||||||||||||||||||
|
Reported net interest income/margin
|
$ | 15,878 | 5.36 | % | $ | 13,965 | 4.84 | % | $ | 13,128 | 4.92 | % | ||||||||||||||||||||||||
|
Tax-equivalent net interest rate spread
|
5.26 | % | 4.72 | % | 4.73 | % | ||||||||||||||||||||||||||||||
(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.
8