Bank of Marin reports record $15.6 million earnings.
Bank of Marin Bancorp announced last week 2011 annual earnings of $15.6 million, an increase of $2.0 million, or 14.8%, from $13.6 million a year ago. Earnings per share for the year ended December 31, 2011 totaled $2.89 on a diluted basis, up $0.34 from $2.55 in the prior year. 2011 earnings include the impact of the FDIC-assisted acquisition of certain assets and the assumption of certain liabilities of the former Charter Oak Bank on February 18, 2011 (the “Acquisition”).
Earnings for the fourth quarter of 2011 totaled $3.4 million compared to $3.9 million in the fourth quarter of 2010. Diluted earnings per share for the fourth quarter of 2011 totaled $0.63 compared to $0.73 in the fourth quarter of 2010.
“We are pleased to report record earnings and strong loan growth this year driven by our Napa and San Francisco markets,” said Russell A. Colombo, Chief Executive Officer. “In this environment, we are encouraged by the lending relationships we are building in new and core markets, which should position us well for future growth.”
Fourth-quarter 2011 earnings include a pre-tax $683 thousand write-off of the Napa core deposit intangible asset (included in other expense), primarily due to a significant decline in alternative funding costs since the acquisition. This write-off reduced diluted earnings per share by 7 cents in the fourth quarter and year ended December 31, 2011.
Fourth-quarter 2011 earnings reflect a $2.5 million provision for loan losses, an increase of $1.5 million from the same quarter a year ago. The increase primarily represents the provision for loan losses on acquired loans, as well as an increase in general reserves related to loan growth.
Total loans grew $89.8 million, or 9.5% in 2011, primarily due to the loans acquired in Napa and growth in the San Francisco market. In the fourth quarter loans grew $38.5 million, or 3.9%, primarily in the Marin and San Francisco markets.
Total deposits grew $187.2 million, or 18.4%, over a year ago, with non-interest bearing deposits growing $77.4 million or 27.4%. Non-interest bearing deposits totaled 29.9% of deposits at December 31, 2011, compared to 27.8% at December 31, 2010.
Credit quality remains solid with non-performing loans at 1.16% of total loans, down from 1.37% a year ago. The loan loss reserve as a percentage of non-performing loans totaled 122% at December 31st, compared to 96% a year ago.
On January 19, 2012, the Board of Directors declared a quarterly cash dividend of $0.17 per share. The cash dividend is payable to shareholders of record at the close of business on February 1, 2012 and will be payable on February 10, 2012.
For more information go to http://bankofmarin.com.