Attached files
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| 8-K - 8-K - Bank of Marin Bancorp | form8k-q12013.htm |
EXHIBIT 99.1
 | ||
FOR IMMEDIATE RELEASE | CONTACT: | Sandy Pfaff |
415-819-7447 | ||
sandy@pfaffpr.com | ||
BANK OF MARIN BANCORP REPORTS STRONG FIRST QUARTER EARNINGS OF $4.9 MILLION
CREDIT QUALITY STRENGTH SUPPORTS POSITIVE RESULTS
NOVATO, CA, April 22, 2013 - Bank of Marin Bancorp, "Bancorp" (NASDAQ: BMRC), parent company of Bank of Marin, announced first quarter 2013 earnings of $4.9 million, compared to $4.7 million in the fourth quarter of 2012, and $4.9 million in the first quarter of 2012. Diluted earnings per share totaled $0.89 in the first quarter, compared to $0.86 in the prior quarter and $0.91 in the same quarter a year ago.
"We continue to deliver solid results, driven by our strong credit quality and proactive portfolio management, which is especially important in this low-interest-rate environment," said Russell A. Colombo, President and Chief Executive Officer. "We remain focused on retaining and building new relationships in this highly competitive market."
Bancorp also provided the following highlights on its operating and financial performance for the first quarter of 2013:
• | Credit quality improved with non-performing loans at 1.43% of total loans, down from 1.64% last quarter. Net recoveries for the first quarter totaled $3 thousand, compared to charge-offs of $178 thousand in the prior quarter. As a result of the release of specific reserves due to improved collateral values related to the receipt of updated appraisals, net recoveries, and a lower level of non-performing loans, $230 thousand of the provision for loan losses was reversed in the first quarter of 2013. |
• | Deposits totaled $1.2 billion at March 31, 2013, compared to $1.3 billion at December 31, 2012 and $1.2 billion at March 31, 2012. Non-interest bearing deposits totaled 39.5% of total deposits at March 31, 2013, compared to 31.1% in the prior quarter and 32.9% a year ago. The increase in non-interest bearing deposits in the first quarter is primarily due to a strategic product change consisting of the discontinuation of interest on one type of consumer account. |
• | The total risk-based capital ratio for Bancorp grew to 14.0%, up from 13.7% at December 31, 2012 and 13.6% at March 31, 2012. The risk-based capital ratio continues to be well above regulatory requirements for a well-capitalized institution. Tangible common equity to tangible assets increased to 10.99% at March 31, 2013, up from 10.58% at the end of the prior quarter and 9.85% a year ago. |
• | On April 18, 2013, the Board of Directors declared a quarterly cash dividend of $0.18 per share. The cash dividend is payable to shareholders of record at the close of business on May 1, 2013 and will be payable on May 10, 2013. |
Loans and Credit Quality
Gross loans totaled $1.1 billion at both March 31, 2013 and December 31, 2012, and totaled $1.0 billion at March 31, 2012. Classified loans continue to trend downward totaling $31.1 million at the end of the first quarter of 2013, compared to $36.9 million at the end of the prior quarter and $55.6 million a year ago. Non-performing loans totaled $15.3 million, or 1.43% of Bancorp's loan portfolio at March 31, 2013, compared to $17.7 million, or 1.64% at December 31, 2012 and $14.4 million, or 1.40% a year ago. The decrease in non-performing loans from the prior quarter primarily relates to a commercial loan that is being paid down gradually as the borrower liquidates collateral, and pay-downs on two commercial real estate loans. Accruing loans past due 30 to 89 days totaled $8.1 million at March 31, 2013, compared to $588 thousand at December 31, 2012 and $1.8 million a year ago. The increase in past due loans in the first quarter of 2013 primarily relates to four loans totaling $7.1 million that are in the process of renewal and/or renegotiation.
1
As a result of the release of specific reserves due to improved collateral values related to the receipt of updated appraisals, net recoveries, and a lower level of non-performing loans, $230 thousand of the provision for loan losses was reversed in the first quarter of 2013. The provision for loan losses totaled $700 thousand in the prior quarter and zero in the same quarter a year ago. The allowance for loan losses totaled 1.25% of loans at March 31, 2013, compared to 1.27% at December 31, 2012 and 1.31% at March 31, 2012. Net recoveries in the first quarter of 2013 totaled $3 thousand, compared to charge-offs of $178 thousand in the prior quarter and charge-offs of $1.1 million in the first quarter of 2012.
Deposits
Deposits totaled $1.2 billion at March 31, 2013, compared to $1.3 billion at December 31, 2012 and $1.2 billion at March 31, 2012. Non-interest bearing deposits totaled 39.5% of total deposits at March 31, 2013, compared to 31.1% in the prior quarter and 32.9% a year ago. The increase in non-interest bearing deposits in the first quarter is primarily due to a strategic product change consisting of the discontinuation of interest on one type of consumer account. This resulted in a reclassification of the accounts from interest-bearing transaction to non-interest bearing accounts, with the affected balances totaling $87.3 million as of March 31, 2013.
Earnings
Net interest income totaled $14.8 million in the first quarter of 2013 compared to $15.8 million in the prior quarter. The tax-equivalent net interest margin was 4.48% compared to 4.62% for those respective periods. These decreases in the first quarter of 2013 compared to the prior quarter primarily relate to a lower level of gains on pay-offs of purchased credit-impaired ("PCI") loans and a lower level of accretion on PCI loans. In addition, rate concessions and downward repricing on existing loans, as well as new loans yielding lower rates continue to negatively impact the loan yield. The decreases are partially offset by a shift in the mix of interest-earnings assets from lower-yielding interest-bearing due from banks towards higher-yielding loans, as well as a higher level of accretion on non-credit impaired loans.
Net interest income totaled $14.8 million in the first quarter of 2013 compared to $16.2 million in the same quarter last year. The tax-equivalent net interest margin was 4.48% compared to 4.97% for those respective periods. These decreases in the first quarter of 2013 compared to the same quarter last year primarily relate to rate concessions and downward repricing on existing loans, as well as new loans yielding lower rates. In addition, a lower level of accretion on purchased loans and a lower level of gains on pay-offs of PCI loans were recorded in the first quarter of 2013 compared to a year ago. These decreases were partially offset by a shift in the mix of interest-earning assets towards higher-yielding securities, as well as the downward repricing of deposits.
Accretion and gains on pay-offs of purchased loans recorded to interest income were as follows:
Three months ended | |||||||||||||||||
3/31/2013 | 12/31/2012 | 3/31/2012 | |||||||||||||||
(dollars in thousands; unaudited) | Dollar Amount | Basis point impact to net interest margin | Dollar Amount | Basis point impact to net interest margin | Dollar Amount | Basis point impact to net interest margin | |||||||||||
Accretion on PCI loans | $ | 236 | 7 bps | $ | 423 | 12 bps | $ | 510 | 16 bps | ||||||||
Accretion on non-PCI loans | $ | 132 | 4 bps | $ | 42 | 1 bps | $ | 203 | 6 bps | ||||||||
Gains on pay-offs of PCI loans | $ | 320 | 9 bps | $ | 1,022 | 29 bps | $ | 522 | 16 bps | ||||||||
Interest recoveries | $ | — | — | $ | 182 | 5 bps | $ | — | — | ||||||||
Interest reversals | $ | (2 | ) | — | $ | (40 | ) | (1 bps) | $ | (123 | ) | (4 bps) | |||||
Accretion on PCI loans fluctuates based on changes in cash flows expected to be collected. For acquired loans not considered credit-impaired, the level of accretion varies due to maturities and early pay-offs of these loans. Gains on pay-offs of PCI loans are recorded as interest income when the pay-off amounts exceed the recorded investment.
2
Non-interest income in the first quarter of 2013 totaled $2.1 million, an increase of $290 thousand, or 16.0% from the prior quarter, and increased $411 thousand, or 24.2% from the same quarter a year ago. The increase in the first quarter of 2013 compared to the prior quarter and the same quarter a year ago primarily relates to a $223 thousand BOLI death benefit in the first quarter of 2013, as well as higher wealth management and trust services income.
Non-interest expense totaled $9.7 million in the first quarter of 2013, compared to $9.6 million in the prior quarter and $9.8 million in the same quarter a year ago.
About Bank of Marin Bancorp
Bank of Marin, as the sole subsidiary of Bank of Marin Bancorp (NASDAQ: BMRC), is the premier community and business bank in Marin County with 17 offices in Marin, San Francisco, Napa and Sonoma counties. Bank of Marin offers business and personal banking, private banking and wealth management services, with a strong focus on supporting local businesses in the community. Incorporated in 1989, Bank of Marin has received the highest five star rating from Bauer Financial for more than thirteen years (www.bauerfinancial.com) and has been recognized for several years as one of the "Best Places to Work in the North Bay" by the North Bay Business Journal and one of the “Top Corporate Philanthropists" by the San Francisco Business Times. With assets exceeding $1.4 billion, Bank of Marin Bancorp is included in the Russell 2000 Small-Cap Index and has been recognized as a Top 200 Community Bank for the past five years by US Banker Magazine.
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, the economic uncertainty in the United States and abroad, changes in interest rates, deposit flows, real estate values, expected future cash flows on acquired loans, 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 | |||||||||||||||
March 31, 2013 | |||||||||||||||
(dollars in thousands, except per share data; unaudited) | |||||||||||||||
QUARTER-TO-DATE | March 31, 2013 | December 31, 2012 | March 31, 2012 | ||||||||||||
NET INCOME | $ | 4,866 | $ | 4,702 | $ | 4,940 | |||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | 0.89 | $ | 0.86 | $ | 0.91 | |||||||||
RETURN ON AVERAGE ASSETS (ROA) | 1.38 | % | 1.28 | % | 1.41 | % | |||||||||
RETURN ON AVERAGE EQUITY (ROE) | 12.76 | % | 12.50 | % | 14.39 | % | |||||||||
EFFICIENCY RATIO | 57.36 | % | 54.42 | % | 54.96 | % | |||||||||
TAX-EQUIVALENT NET INTEREST MARGIN1 | 4.48 | % | 4.62 | % | 4.97 | % | |||||||||
NET (RECOVERIES)/CHARGE-OFFS | $ | (3 | ) | $ | 178 | $ | 1,117 | ||||||||
NET CHARGE-OFFS TO AVERAGE LOANS | — | % | 0.02 | % | 0.11 | % | |||||||||
AT PERIOD END | |||||||||||||||
TOTAL ASSETS | $ | 1,427,022 | $ | 1,434,749 | $ | 1,421,284 | |||||||||
LOANS: | |||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 175,735 | $ | 176,431 | $ | 176,655 | |||||||||
REAL ESTATE | |||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 196,803 | $ | 196,406 | $ | 172,354 | |||||||||
COMMERCIAL INVESTOR-OWNED | $ | 509,829 | $ | 509,006 | $ | 451,909 | |||||||||
CONSTRUCTION | $ | 32,835 | $ | 30,665 | $ | 54,640 | |||||||||
HOME EQUITY | $ | 90,495 | $ | 93,237 | $ | 97,830 | |||||||||
OTHER RESIDENTIAL | $ | 45,879 | $ | 49,432 | $ | 57,249 | |||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 20,259 | $ | 18,775 | $ | 21,570 | |||||||||
TOTAL LOANS | $ | 1,071,835 | $ | 1,073,952 | $ | 1,032,207 | |||||||||
NON-PERFORMING LOANS2: | |||||||||||||||
COMMERCIAL AND INDUSTRIAL | $ | 3,884 | $ | 4,893 | $ | 2,282 | |||||||||
REAL ESTATE | |||||||||||||||
COMMERCIAL OWNER-OCCUPIED | $ | 1,403 | $ | 1,403 | $ | 1,403 | |||||||||
COMMERCIAL INVESTOR-OWNED | $ | 5,714 | $ | 6,843 | $ | 6,529 | |||||||||
CONSTRUCTION | $ | 2,239 | $ | 2,239 | $ | 2,831 | |||||||||
HOME EQUITY | $ | 530 | $ | 545 | $ | 795 | |||||||||
OTHER RESIDENTIAL | $ | 1,165 | $ | 1,196 | $ | — | |||||||||
INSTALLMENT AND OTHER CONSUMER LOANS | $ | 356 | $ | 533 | $ | 566 | |||||||||
TOTAL NON-PERFORMING LOANS | $ | 15,291 | $ | 17,652 | $ | 14,406 | |||||||||
CLASSIFIED LOANS (GRADED SUBSTANDARD & DOUBTFUL) | $ | 31,141 | $ | 36,916 | $ | 55,645 | |||||||||
TOTAL ACCRUING LOANS 30-89 DAYS PAST DUE | $ | 8,077 | $ | 588 | $ | 1,801 | |||||||||
LOAN LOSS RESERVE TO LOANS | 1.25 | % | 1.27 | % | 1.31 | % | |||||||||
LOAN LOSS RESERVE TO NON-PERFORMING LOANS | 0.88 | x | 0.77 | x | 0.94 | x | |||||||||
NON-PERFORMING LOANS TO TOTAL LOANS | 1.43 | % | 1.64 | % | 1.40 | % | |||||||||
TEXAS RATIO3 | 9.09 | % | 10.69 | % | 9.38 | % | |||||||||
TOTAL DEPOSITS | $ | 1,231,551 | $ | 1,253,289 | $ | 1,245,641 | |||||||||
LOAN TO DEPOSIT RATIO | 87.0 | % | 85.7 | % | 82.9 | % | |||||||||
STOCKHOLDERS' EQUITY | $ | 156,843 | $ | 151,792 | $ | 140,021 | |||||||||
BOOK VALUE PER SHARE | $ | 28.88 | $ | 28.17 | $ | 26.18 | |||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS4 | 10.99 | % | 10.58 | % | 9.85 | % | |||||||||
TOTAL RISK BASED CAPITAL RATIO-BANK5 | 13.5 | % | 13.6 | % | 13.4 | % | |||||||||
TOTAL RISK BASED CAPITAL RATIO-BANCORP5 | 14.0 | % | 13.7 | % | 13.6 | % | |||||||||
FULL TIME EQUIVALENT EMPLOYEES | 241 | 238 | 233 | ||||||||||||
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 $10.8 million at both March 31, 2013 and December 31, 2012, and $25.6 million at March 31, 2012. Excludes purchased credit-impaired (PCI) loans with carrying values of $2.0 million, $3.0 million and $4.4 million that were accreting interest at March 31, 2013, December 31, 2012 and March 31, 2012, respectively. These amounts are excluded as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status. Total PCI loans were $3.6 million, $4.5 million and $6.0 million at March 31, 2013, December 31, 2012 and March 31, 2012. | |||||||||||||||
3 (Non-performing assets + 90 day delinquent loans)/(tangible common equity + allowance for loan losses). | |||||||||||||||
4 Tangible common equity includes common stock, retained earnings and unrealized gain on available for sale securities, net of tax, less intangible assets. | |||||||||||||||
5 Current period estimated. | |||||||||||||||
4
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CONDITION |
at March 31, 2013, December 31, 2012 and March 31, 2012 |
(in thousands, except share data; March 2013 and March 2012 unaudited) | March 31, 2013 | December 31, 2012 | March 31, 2012 | ||||||||
Assets | |||||||||||
Cash and due from banks | $ | 31,364 | $ | 28,349 | $ | 139,827 | |||||
Short-term investments | — | — | 2,012 | ||||||||
Cash and cash equivalents | 31,364 | 28,349 | 141,839 | ||||||||
Investment securities | |||||||||||
Held to maturity, at amortized cost | 138,978 | 139,452 | 73,912 | ||||||||
Available for sale (at fair value; amortized cost $139,414, $150,420 and $131,621 at March 31, 2013, December 31, 2012 and March 31, 2012, respectively) | 142,653 | 153,962 | 134,443 | ||||||||
Total investment securities | 281,631 | 293,414 | 208,355 | ||||||||
Loans, net of allowance for loan losses of $13,434, $13,661 and $13,522 at March 31, 2013, December 31, 2012 and March 31, 2012, respectively | 1,058,401 | 1,060,291 | 1,018,685 | ||||||||
Bank premises and equipment, net | 9,358 | 9,344 | 9,183 | ||||||||
Interest receivable and other assets | 46,268 | 43,351 | 43,222 | ||||||||
Total assets | $ | 1,427,022 | $ | 1,434,749 | $ | 1,421,284 | |||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities | |||||||||||
Deposits | |||||||||||
Non-interest bearing | $ | 485,942 | $ | 389,722 | $ | 409,409 | |||||
Interest bearing | |||||||||||
Transaction accounts | 86,124 | 169,647 | 153,244 | ||||||||
Savings accounts | 95,428 | 93,404 | 82,151 | ||||||||
Money market accounts | 417,293 | 443,742 | 426,175 | ||||||||
CDARS® time accounts | 7,448 | 15,718 | 31,562 | ||||||||
Other time accounts | 139,316 | 141,056 | 143,100 | ||||||||
Total deposits | 1,231,551 | 1,253,289 | 1,245,641 | ||||||||
Federal Home Loan Bank purchases and Federal Home Loan Bank borrowings | 23,200 | 15,000 | 15,000 | ||||||||
Subordinated debenture | — | — | 5,000 | ||||||||
Interest payable and other liabilities | 15,428 | 14,668 | 15,622 | ||||||||
Total liabilities | 1,270,179 | 1,282,957 | 1,281,263 | ||||||||
Stockholders' Equity | |||||||||||
Preferred stock, no par value, Authorized - 5,000,000 shares, none issued | — | — | — | ||||||||
Common stock, no par value, Authorized - 15,000,000 shares; Issued and outstanding - 5,430,220, 5,389,210 and 5,348,659 at March 31, 2013, December 31, 2012 and March 31, 2012, respectively | 59,906 | 58,573 | 57,254 | ||||||||
Retained Earnings | 95,059 | 91,164 | 81,130 | ||||||||
Accumulated other comprehensive income, net | 1,878 | 2,055 | 1,637 | ||||||||
Total stockholders' equity | 156,843 | 151,792 | 140,021 | ||||||||
Total liabilities and stockholders' equity | $ | 1,427,022 | $ | 1,434,749 | $ | 1,421,284 | |||||
5
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME for the three months ended March 31, 2013, December 31, 2012 and March 31, 2012 |
Three months ended | |||||||||||
(in thousands, except per share amounts; unaudited) | March 31, 2013 | December 31, 2012 | March 31, 2012 | ||||||||
Interest income | |||||||||||
Interest and fees on loans | $ | 13,635 | $ | 14,634 | $ | 15,328 | |||||
Interest on investment securities | |||||||||||
Securities of U.S. Government agencies | 625 | 680 | 967 | ||||||||
Obligations of state and political subdivisions | 638 | 565 | 387 | ||||||||
Corporate debt securities and other | 324 | 353 | 201 | ||||||||
Interest on Federal funds sold and short-term investments | 8 | 66 | 50 | ||||||||
Total interest income | 15,230 | 16,298 | 16,933 | ||||||||
Interest expense | |||||||||||
Interest on interest bearing transaction accounts | 11 | 14 | 44 | ||||||||
Interest on savings accounts | 8 | 16 | 22 | ||||||||
Interest on money market accounts | 99 | 145 | 183 | ||||||||
Interest on CDARS® time accounts | 5 | 11 | 32 | ||||||||
Interest on other time accounts | 232 | 241 | 304 | ||||||||
Interest on borrowed funds | 79 | 80 | 147 | ||||||||
Total interest expense | 434 | 507 | 732 | ||||||||
Net interest income | 14,796 | 15,791 | 16,201 | ||||||||
(Reversal of) provision for loan losses | (230 | ) | 700 | — | |||||||
Net interest income after provision for loan losses | 15,026 | 15,091 | 16,201 | ||||||||
Non-interest income | |||||||||||
Service charges on deposit accounts | 521 | 529 | 524 | ||||||||
Wealth Management and Trust Services | 547 | 513 | 456 | ||||||||
Debit card interchange fees | 252 | 261 | 234 | ||||||||
Merchant interchange fees | 205 | 177 | 193 | ||||||||
Earnings on Bank-owned life Insurance | 401 | 190 | 188 | ||||||||
Other income | 180 | 146 | 100 | ||||||||
Total non-interest income | 2,106 | 1,816 | 1,695 | ||||||||
Non-interest expense | |||||||||||
Salaries and related benefits | 5,298 | 5,010 | 5,604 | ||||||||
Occupancy and equipment | 1,073 | 1,098 | 987 | ||||||||
Depreciation and amortization | 336 | 334 | 341 | ||||||||
Federal Deposit Insurance Corporation insurance | 214 | 245 | 233 | ||||||||
Data processing | 549 | 652 | 606 | ||||||||
Professional services | 527 | 720 | 585 | ||||||||
Other expense | 1,698 | 1,523 | 1,479 | ||||||||
Total non-interest expense | 9,695 | 9,582 | 9,835 | ||||||||
Income before provision for income taxes | 7,437 | 7,325 | 8,061 | ||||||||
Provision for income taxes | 2,571 | 2,623 | 3,121 | ||||||||
Net income | $ | 4,866 | $ | 4,702 | $ | 4,940 | |||||
Net income per common share: | |||||||||||
Basic | $ | 0.90 | $ | 0.88 | $ | 0.93 | |||||
Diluted | $ | 0.89 | $ | 0.86 | $ | 0.91 | |||||
Weighted average shares used to compute net income per common share: | |||||||||||
Basic | 5,389 | 5,357 | 5,326 | ||||||||
Diluted | 5,487 | 5,451 | 5,425 | ||||||||
Dividends declared per common share | $ | 0.18 | $ | 0.18 | $ | 0.17 | |||||
Comprehensive income: | |||||||||||
Net income | $ | 4,866 | $ | 4,702 | $ | 4,940 | |||||
Other comprehensive (loss) income | |||||||||||
Change in net unrealized gain on available for sale securities | (303 | ) | 16 | 28 | |||||||
Reclassification adjustment for loss on sale of securities included in net income | — | — | 38 | ||||||||
Net change in unrealized gain on available for sale securities, before tax | (303 | ) | 16 | 66 | |||||||
Deferred tax (benefit) expense | (126 | ) | 6 | 28 | |||||||
Other comprehensive (loss) income, net of tax | (177 | ) | 10 | 38 | |||||||
Comprehensive income | $ | 4,689 | $ | 4,712 | $ | 4,978 | |||||
6
BANK OF MARIN BANCORP |
AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST INCOME |
Three months ended | Three months ended | Three months ended | |||||||||||||||||||||||
March 31, 2013 | December 31, 2012 | March 31, 2012 | |||||||||||||||||||||||
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 | $ | 5,710 | $ | 8 | 0.56 | % | $ | 80,884 | $ | 66 | 0.32 | % | $ | 87,101 | $ | 50 | 0.23 | % | |||||||
Investment securities 2, 3 | 284,429 | 1,780 | 2.50 | % | 265,316 | 1,779 | 2.68 | % | 198,243 | 1,710 | 3.45 | % | |||||||||||||
Loans 1, 3, 4 | 1,062,957 | 13,808 | 5.20 | % | 1,020,737 | 14,788 | 5.67 | % | 1,028,573 | 15,473 | 5.95 | % | |||||||||||||
Total interest-earning assets 1 | 1,353,096 | 15,596 | 4.61 | % | 1,366,937 | 16,633 | 4.76 | % | 1,313,917 | 17,233 | 5.19 | % | |||||||||||||
Cash and non-interest-bearing due from banks | 28,250 | 44,225 | 52,011 | ||||||||||||||||||||||
Bank premises and equipment, net | 9,425 | 9,173 | 9,383 | ||||||||||||||||||||||
Interest receivable and other assets, net | 37,892 | 37,512 | 34,808 | ||||||||||||||||||||||
Total assets | $ | 1,428,663 | $ | 1,457,847 | $ | 1,410,119 | |||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 129,379 | $ | 11 | 0.03 | % | $ | 160,605 | $ | 14 | 0.03 | % | $ | 143,159 | $ | 44 | 0.12 | % | |||||||
Savings accounts | 96,561 | 8 | 0.03 | % | 91,609 | 16 | 0.07 | % | 78,831 | 22 | 0.11 | % | |||||||||||||
Money market accounts | 432,154 | 99 | 0.09 | % | 442,006 | 145 | 0.13 | % | 436,333 | 183 | 0.17 | % | |||||||||||||
CDARS® time accounts | 12,866 | 5 | 0.16 | % | 22,497 | 11 | 0.19 | % | 40,091 | 32 | 0.32 | % | |||||||||||||
Other time accounts | 140,254 | 232 | 0.67 | % | 141,375 | 241 | 0.68 | % | 149,228 | 304 | 0.82 | % | |||||||||||||
FHLB fixed-rate and overnight advances 1 | 18,513 | 79 | 1.71 | % | 15,010 | 80 | 2.08 | % | 19,835 | 107 | 2.13 | % | |||||||||||||
Subordinated debenture 1 | — | — | — | % | — | — | — | % | 5,000 | 40 | 3.16 | % | |||||||||||||
Total interest-bearing liabilities | 829,727 | 434 | 0.21 | % | 873,102 | 507 | 0.23 | % | 872,477 | 732 | 0.34 | % | |||||||||||||
Demand accounts | 429,335 | 420,517 | 384,774 | ||||||||||||||||||||||
Interest payable and other liabilities | 14,892 | 14,524 | 14,814 | ||||||||||||||||||||||
Stockholders' equity | 154,709 | 149,704 | 138,054 | ||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 1,428,663 | $ | 1,457,847 | $ | 1,410,119 | |||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 15,162 | 4.48 | % | $ | 16,126 | 4.62 | % | $ | 16,501 | 4.97 | % | |||||||||||||
Reported net interest income/margin 1 | $ | 14,796 | 4.37 | % | $ | 15,791 | 4.52 | % | $ | 16,201 | 4.88 | % | |||||||||||||
Tax-equivalent net interest rate spread | 4.40 | % | 4.53 | % | 4.85 | % | |||||||||||||||||||
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 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. | |||||||||||||||||||||||||
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