Bank of Marin Bancorp, "Bancorp" (NASDAQ:BMRC), parent company of Bank of Marin, announced earnings for the nine-month period ended September 30, 2012 of $13.1 million, up 7.7%, from $12.2 million in the same period a year ago. Diluted earnings per share for the nine-month period ended September 30, 2012 totaled $2.41, up $0.15, or 6.6%, from $2.26 in the same period a year ago. Earnings for the quarter ended September 30, 2012 totaled $3.2 million, compared to $5.0 million in the second quarter of 2012, and $4.2 million in the third quarter of 2011. Diluted earnings per share totaled $0.59 in the third quarter, compared to $0.91 in the prior quarter, and $0.79 in the same quarter a year ago. Third quarter earnings reflect a $2.1 million provision for loan loss that is primarily related to one borrowing relationship.
“Bank of Marin's underlying business fundamentals are very strong, including the quality of the credit portfolio and continued deposit growth," said Russell A. Colombo, President and CEO of Bank of Marin. “We continue to focus on growing our loan totals, with funded deals increasing this quarter.”
Bancorp also provided the following highlights on its operating and financial performance for the third quarter of 2012:
- Loan fundings were $31.8 million in the third quarter, offset by payoffs of $36.1 million, which included the prepayment of five performing real estate loans totaling $20.1 million due to the sale of properties. Loans in Napa increased $13.5 million, or 22.2%, in the third quarter of 2012.
- Deposits totaled $1.3 billion at September 30, 2012, increasing 2.3% from $1.2 billion at June 30, 2012 and increasing 7.0% from September 30, 2011. Non-interest bearing deposits totaled 32.5% of total deposits at September 30, 2012.
- In a conscious effort to deploy excess liquidity and reduce the cost of funds, Bancorp redeemed a $5.0 million subordinated debenture at one-month LIBOR plus 2.48% in the third quarter of 2012.
- The total risk-based capital ratio for Bancorp grew to 14.0%, up from 13.9% at June 30, 2012 and 13.3% at September 30, 2011. The risk-based capital ratio continues to be well above industry requirements for a well-capitalized institution.
- On October 18, 2012, 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 November 1, 2012 and will be payable on November 9, 2012.
Loans and Credit QualityGross loans totaled $1.0 billion at both September 30, 2012 and June 30, 2012, and totaled $992.6 million at September 30, 2011. The third quarter loan activity reflected the payoff of five performing real estate loans totaling $20.1 million, due to the sale of properties.