California | 20-8859754 | ||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | ||||||||||||||||
504 Redwood Blvd. | Suite 100 | Novato | CA | 94947 | |||||||||||||
(Address of principal executive office) | (Zip Code) |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||||||
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ☐ | ||||||||||
Emerging growth company | ☐ |
PART I | ||||||||
ITEM 1. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
PART II | ||||||||
ITEM 1. | ||||||||
ITEM 1A. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
ITEM 5. | ||||||||
ITEM 6. | ||||||||
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF CONDITION
September 30, 2020 and December 31, 2019
|
(in thousands, except share data; unaudited) | September 30, 2020 | December 31, 2019 | ||||||
Assets | ||||||||
Cash, cash equivalents and restricted cash | $ | 213,584 | $ | 183,388 | ||||
Investment securities | ||||||||
Held-to-maturity, at amortized cost | 117,350 | 137,413 | ||||||
Available-for-sale, at fair value | 413,464 | 432,260 | ||||||
Total investment securities | 530,814 | 569,673 | ||||||
Loans, net of allowance for loan losses of $22,113 and $16,677 at
September 30, 2020 and December 31, 2019, respectively
|
2,085,878 | 1,826,609 | ||||||
Bank premises and equipment, net | 5,266 | 6,070 | ||||||
Goodwill | 30,140 | 30,140 | ||||||
Core deposit intangible | 4,045 | 4,684 | ||||||
Operating lease right-of-use assets | 26,041 | 11,002 | ||||||
Interest receivable and other assets | 79,457 | 75,714 | ||||||
Total assets | $ | 2,975,225 | $ | 2,707,280 | ||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities | ||||||||
Deposits | ||||||||
Non-interest bearing | $ | 1,383,719 | $ | 1,128,823 | ||||
Interest bearing | ||||||||
Transaction accounts | 156,061 | 142,329 | ||||||
Savings accounts | 192,764 | 162,817 | ||||||
Money market accounts | 738,661 | 804,710 | ||||||
Time accounts | 98,084 | 97,810 | ||||||
Total deposits | 2,569,289 | 2,336,489 | ||||||
Borrowings and other obligations | 99 | 212 | ||||||
Subordinated debenture | 2,760 | 2,708 | ||||||
Operating lease liabilities | 27,527 | 12,615 | ||||||
Interest payable and other liabilities | 17,980 | 18,468 | ||||||
Total liabilities | 2,617,655 | 2,370,492 | ||||||
Stockholders' Equity | ||||||||
Preferred stock, no par value,
Authorized - 5,000,000 shares, none issued
|
— | — | ||||||
Common stock, no par value,
Authorized - 30,000,000 shares;
Issued and outstanding - 13,605,363 and 13,577,008 at
September 30, 2020 and December 31, 2019, respectively
|
129,284 | 129,058 | ||||||
Retained earnings | 215,976 | 203,227 | ||||||
Accumulated other comprehensive income, net of taxes | 12,310 | 4,503 | ||||||
Total stockholders' equity | 357,570 | 336,788 | ||||||
Total liabilities and stockholders' equity | $ | 2,975,225 | $ | 2,707,280 |
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
Three months ended | Nine months ended | |||||||||||||||||||
(in thousands, except per share amounts; unaudited) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||
Interest income | ||||||||||||||||||||
Interest and fees on loans | $ | 21,776 | $ | 21,525 | $ | 63,880 | $ | 63,208 | ||||||||||||
Interest on investment securities | 3,343 | 3,382 | 11,249 | 11,242 | ||||||||||||||||
Interest on federal funds sold and due from banks | 50 | 425 | 421 | 754 | ||||||||||||||||
Total interest income | 25,169 | 25,332 | 75,550 | 75,204 | ||||||||||||||||
Interest expense | ||||||||||||||||||||
Interest on interest-bearing transaction accounts | 41 | 101 | 146 | 269 | ||||||||||||||||
Interest on savings accounts | 17 | 17 | 50 | 52 | ||||||||||||||||
Interest on money market accounts | 377 | 855 | 1,731 | 2,406 | ||||||||||||||||
Interest on time accounts | 133 | 147 | 436 | 441 | ||||||||||||||||
Interest on borrowings and other obligations | — | 4 | 3 | 75 | ||||||||||||||||
Interest on subordinated debenture | 35 | 57 | 124 | 175 | ||||||||||||||||
Total interest expense | 603 | 1,181 | 2,490 | 3,418 | ||||||||||||||||
Net interest income | 24,566 | 24,151 | 73,060 | 71,786 | ||||||||||||||||
Provision for loan losses | 1,250 | 400 | 5,450 | 400 | ||||||||||||||||
Net interest income after provision for loan losses | 23,316 | 23,751 | 67,610 | 71,386 | ||||||||||||||||
Non-interest income | ||||||||||||||||||||
Service charges on deposit accounts | 284 | 439 | 1,028 | 1,403 | ||||||||||||||||
Wealth Management and Trust Services | 450 | 495 | 1,375 | 1,406 | ||||||||||||||||
Debit card interchange fees, net | 383 | 406 | 1,051 | 1,200 | ||||||||||||||||
Merchant interchange fees, net | 63 | 79 | 183 | 253 | ||||||||||||||||
Earnings on bank-owned life insurance | 232 | 795 | 741 | 970 | ||||||||||||||||
Dividends on Federal Home Loan Bank stock | 149 | 202 | 503 | 591 | ||||||||||||||||
Gains on sale of investment securities, net | — | — | 915 | 55 | ||||||||||||||||
Other income | 229 | 305 | 927 | 888 | ||||||||||||||||
Total non-interest income | 1,790 | 2,721 | 6,723 | 6,766 | ||||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and related benefits | 8,638 | 8,412 | 25,979 | 26,426 | ||||||||||||||||
Occupancy and equipment | 1,776 | 1,507 | 5,100 | 4,616 | ||||||||||||||||
Depreciation and amortization | 539 | 573 | 1,591 | 1,701 | ||||||||||||||||
Federal Deposit Insurance Corporation insurance | 181 | 1 | 299 | 354 | ||||||||||||||||
Data processing | 822 | 923 | 2,437 | 2,942 | ||||||||||||||||
Professional services | 655 | 580 | 1,749 | 1,701 | ||||||||||||||||
Directors' expense | 184 | 189 | 533 | 555 | ||||||||||||||||
Information technology | 256 | 279 | 758 | 822 | ||||||||||||||||
Amortization of core deposit intangible | 213 | 222 | 639 | 665 | ||||||||||||||||
Provision for losses on off-balance sheet commitments | 248 | — | 610 | 129 | ||||||||||||||||
Charitable contributions | 481 | 111 | 921 | 377 | ||||||||||||||||
Other expense | 1,245 | 1,403 | 4,232 | 4,356 | ||||||||||||||||
Total non-interest expense | 15,238 | 14,200 | 44,848 | 44,644 | ||||||||||||||||
Income before provision for income taxes | 9,868 | 12,272 | 29,485 | 33,508 | ||||||||||||||||
Provision for income taxes | 2,377 | 2,824 | 7,360 | 8,346 | ||||||||||||||||
Net income | $ | 7,491 | $ | 9,448 | $ | 22,125 | $ | 25,162 | ||||||||||||
Net income per common share: | ||||||||||||||||||||
Basic | $ | 0.55 | $ | 0.70 | $ | 1.64 | $ | 1.84 | ||||||||||||
Diluted | $ | 0.55 | $ | 0.69 | $ | 1.62 | $ | 1.82 | ||||||||||||
Weighted average shares: | ||||||||||||||||||||
Basic | 13,539 | 13,571 | 13,526 | 13,654 | ||||||||||||||||
Diluted | 13,610 | 13,735 | 13,617 | 13,825 | ||||||||||||||||
Comprehensive income: | ||||||||||||||||||||
Net income | $ | 7,491 | $ | 9,448 | $ | 22,125 | $ | 25,162 | ||||||||||||
Other comprehensive income | ||||||||||||||||||||
Change in net unrealized gains or losses on available-for-sale securities | 299 | 936 | 11,605 | 13,857 | ||||||||||||||||
Reclassification adjustment for gains on available-for-sale securities included in net income | — | — | (915) | (55) | ||||||||||||||||
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity | 149 | 123 | 394 | 328 | ||||||||||||||||
Other comprehensive income, before tax | 448 | 1,059 | 11,084 | 14,130 | ||||||||||||||||
Deferred tax expense | 132 | 313 | 3,277 | 4,182 | ||||||||||||||||
Other comprehensive income, net of tax | 316 | 746 | 7,807 | 9,948 | ||||||||||||||||
Total comprehensive income | $ | 7,807 | $ | 10,194 | $ | 29,932 | $ | 35,110 |
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY |
||
For the three months ended September 30, 2020 and 2019 |
(in thousands, except share data; unaudited) | Common Stock |
Retained
Earnings |
Accumulated Other
Comprehensive Income (Loss), Net of Taxes |
Total | |||||||||||||
Shares | Amount | ||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||
Balance at July 1, 2020 | 13,591,835 | $ | 128,633 | $ | 211,613 | $ | 11,994 | $ | 352,240 | ||||||||
Net income | — | — | 7,491 | — | 7,491 | ||||||||||||
Other comprehensive income | — | — | — | 316 | 316 | ||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 207 | — | — | — | — | ||||||||||||
Stock issued under employee stock purchase plan | 728 | 20 | — | — | 20 | ||||||||||||
Stock issued under employee stock ownership plan | 10,200 | 319 | — | — | 319 | ||||||||||||
Restricted stock forfeited / cancelled | (1,466) | — | — | — | — | ||||||||||||
Stock-based compensation - stock options | — | 88 | — | — | 88 | ||||||||||||
Stock-based compensation - restricted stock | — | 99 | — | — | 99 | ||||||||||||
Cash dividends paid on common stock ($0.23 per share)
|
— | — | (3,128) | — | (3,128) | ||||||||||||
Stock purchased by directors under director stock plan | 746 | 25 | — | — | 25 | ||||||||||||
Stock issued in payment of director fees | 3,113 | 100 | — | — | 100 | ||||||||||||
Balance at September 30, 2020 | 13,605,363 | $ | 129,284 | $ | 215,976 | $ | 12,310 | $ | 357,570 | ||||||||
Three months ended September 30, 2019 | |||||||||||||||||
Balance at July 1, 2019 | 13,659,143 | $ | 132,151 | $ | 190,416 | $ | 5,100 | $ | 327,667 | ||||||||
Net income | — | — | 9,448 | — | 9,448 | ||||||||||||
Other comprehensive income | — | — | — | 746 | 746 | ||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 3,452 | 101 | — | — | 101 | ||||||||||||
Stock issued under employee stock purchase plan | 265 | 10 | — | — | 10 | ||||||||||||
Stock issued under employee stock ownership plan | 7,600 | 311 | — | — | 311 | ||||||||||||
Stock-based compensation - stock options | — | 98 | — | — | 98 | ||||||||||||
Stock-based compensation - restricted stock | — | 142 | — | — | 142 | ||||||||||||
Cash dividends paid on common stock ($0.21 per share)
|
— | — | (2,865) | — | (2,865) | ||||||||||||
Stock purchased by directors under director stock plan | 392 | 16 | — | — | 16 | ||||||||||||
Stock issued in payment of director fees | 2,800 | 117 | — | — | 117 | ||||||||||||
Stock repurchased, net of commissions | (65,127) | (2,726) | — | — | (2,726) | ||||||||||||
Balance at September 30, 2019 | 13,608,525 | $ | 130,220 | $ | 196,999 | $ | 5,846 | $ | 333,065 |
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY |
||
For the nine months ended September 30, 2020 and 2019 |
(in thousands, except share data; unaudited) | Common Stock |
Retained
Earnings |
Accumulated Other
Comprehensive Income (Loss), Net of Taxes |
Total | |||||||||||||
Shares | Amount | ||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||
Balance at January 1, 2020 | 13,577,008 | $ | 129,058 | $ | 203,227 | $ | 4,503 | $ | 336,788 | ||||||||
Net income | — | — | 22,125 | — | 22,125 | ||||||||||||
Other comprehensive income | — | — | — | 7,807 | 7,807 | ||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 64,022 | 1,277 | — | — | 1,277 | ||||||||||||
Stock issued under employee stock purchase plan | 1,812 | 53 | — | — | 53 | ||||||||||||
Stock issued under employee stock ownership plan | 29,600 | 967 | — | — | 967 | ||||||||||||
Restricted stock granted | 29,100 | — | — | — | — | ||||||||||||
Restricted stock surrendered for tax withholdings upon vesting | (2,200) | (73) | — | — | (73) | ||||||||||||
Restricted stock forfeited / cancelled | (8,184) | — | — | — | — | ||||||||||||
Stock-based compensation - stock options | — | 299 | — | — | 299 | ||||||||||||
Stock-based compensation - restricted stock | — | 673 | — | — | 673 | ||||||||||||
Cash dividends paid on common stock ($0.69 per share)
|
— | — | (9,376) | — | (9,376) | ||||||||||||
Stock purchased by directors under director stock plan | 1,146 | 43 | — | — | 43 | ||||||||||||
Stock issued in payment of director fees | 5,723 | 217 | — | — | 217 | ||||||||||||
Stock repurchased, net of commissions | (92,664) | (3,230) | — | — | (3,230) | ||||||||||||
Balance at September 30, 2020 | 13,605,363 | $ | 129,284 | $ | 215,976 | $ | 12,310 | $ | 357,570 | ||||||||
Nine months ended September 30, 2019 | |||||||||||||||||
Balance at January 1, 2019 | 13,844,353 | $ | 140,565 | $ | 179,944 | $ | (4,102) | $ | 316,407 | ||||||||
Net income | — | — | 25,162 | — | 25,162 | ||||||||||||
Other comprehensive income | — | — | — | 9,948 | 9,948 | ||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 40,927 | 572 | — | — | 572 | ||||||||||||
Stock issued under employee stock purchase plan | 1,016 | 40 | — | — | 40 | ||||||||||||
Stock issued under employee stock ownership plan | 23,200 | 935 | — | — | 935 | ||||||||||||
Restricted stock granted | 29,110 | — | — | — | — | ||||||||||||
Restricted stock surrendered for tax withholdings upon vesting | (5,240) | (220) | — | — | (220) | ||||||||||||
Restricted stock forfeited / cancelled | (17,325) | — | — | — | — | ||||||||||||
Stock-based compensation - stock options | — | 437 | — | — | 437 | ||||||||||||
Stock-based compensation - restricted stock | — | 806 | — | — | 806 | ||||||||||||
Cash dividends paid on common stock ($0.59 per share)
|
— | — | (8,107) | — | (8,107) | ||||||||||||
Stock purchased by directors under director stock plan | 591 | 24 | — | — | 24 | ||||||||||||
Stock issued in payment of director fees | 5,544 | 231 | — | — | 231 | ||||||||||||
Stock repurchased, net of commissions | (313,651) | (13,170) | — | — | (13,170) | ||||||||||||
Balance at September 30, 2019 | 13,608,525 | $ | 130,220 | $ | 196,999 | $ | 5,846 | $ | 333,065 |
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||
For the nine months ended September 30, 2020 and 2019 |
(in thousands; unaudited) | September 30, 2020 | September 30, 2019 | |||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | 22,125 | $ | 25,162 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Provision for loan losses | 5,450 | 400 | |||||||||
Provision for losses on off-balance sheet commitments | 610 | 129 | |||||||||
Noncash contribution expense to employee stock ownership plan | 967 | 935 | |||||||||
Noncash director compensation expense | 226 | 226 | |||||||||
Stock-based compensation expense | 972 | 1,243 | |||||||||
Amortization of core deposit intangible | 639 | 665 | |||||||||
Amortization of investment security premiums (discounts), net | 864 | 1,282 | |||||||||
Amortization of acquired loan (discounts) premiums, net | (101) | (208) | |||||||||
Accretion of discount on subordinated debenture | 52 | 51 | |||||||||
Net change in deferred loan origination costs/fees | 6,132 | (345) | |||||||||
Gain on sale of investment securities | (915) | (55) | |||||||||
Depreciation and amortization | 1,591 | 1,701 | |||||||||
Earnings on bank-owned life insurance policies | (741) | (970) | |||||||||
Net change in operating assets and liabilities: | |||||||||||
Interest receivable and other assets | (5,347) | 2,287 | |||||||||
Interest payable and other liabilities | (1,207) | (1,302) | |||||||||
Total adjustments | 9,192 | 6,039 | |||||||||
Net cash provided by operating activities | 31,317 | 31,201 | |||||||||
Cash Flows from Investing Activities: | |||||||||||
Purchase of available-for-sale securities | (71,744) | (18,892) | |||||||||
Proceeds from sale of available-for-sale securities | 33,756 | 66,081 | |||||||||
Proceeds from paydowns/maturities of held-to-maturity securities | 19,880 | 14,736 | |||||||||
Proceeds from paydowns/maturities of available-for-sale securities | 68,102 | 69,711 | |||||||||
Loans originated and principal collected, net | (269,376) | (32,895) | |||||||||
Purchase of bank-owned life insurance policies | (941) | (1,892) | |||||||||
Purchase of premises and equipment | (769) | (419) | |||||||||
Purchase of Federal Home Loan Bank stock | — | (616) | |||||||||
Cash paid for low income housing tax credit investment | (1,289) | (339) | |||||||||
Net cash (used in) provided by investing activities | (222,381) | 95,475 | |||||||||
Cash Flows from Financing Activities: | |||||||||||
Net increase in deposits | 232,800 | 49,684 | |||||||||
Proceeds from stock options exercised | 1,277 | 572 | |||||||||
Payment of tax withholdings for stock options exercised and vesting of restricted stock | (73) | (220) | |||||||||
Proceeds from stock issued under employee and director stock purchase plans | 96 | 64 | |||||||||
Stock repurchased, net of commissions | (3,333) | (13,279) | |||||||||
Repayment of Federal Home Loan Bank borrowings | — | (7,000) | |||||||||
Repayment of finance lease obligations | (131) | (125) | |||||||||
Cash dividends paid on common stock | (9,376) | (8,107) | |||||||||
Net cash provided by financing activities | 221,260 | 21,589 | |||||||||
Net increase in cash, cash equivalents and restricted cash | 30,196 | 148,265 | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 183,388 | 34,221 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 213,584 | $ | 182,486 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid in interest | $ | 2,450 | $ | 3,351 | |||||||
Cash paid in income taxes | $ | 9,765 | $ | 9,025 | |||||||
Supplemental disclosure of noncash investing and financing activities: | |||||||||||
Change in net unrealized gain or loss on available-for-sale securities | $ | 11,605 | $ | 13,857 | |||||||
Amortization of net unrealized loss on available-for-sale securities transferred to held-to-maturity | $ | 394 | $ | 328 | |||||||
Stock issued to employee stock ownership plan | $ | 967 | $ | 935 | |||||||
Stock issued in payment of director fees | $ | 217 | $ | 231 | |||||||
Repurchase of stock not yet settled | $ | — | $ | 34 | |||||||
Restricted cash1
|
$ | — | $ | 10,015 | |||||||
Three months ended | Nine months ended | ||||||||||||||||
(in thousands, except per share data) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||
Weighted average basic shares outstanding | 13,539 | 13,571 | 13,526 | 13,654 | |||||||||||||
Potentially dilutive common shares related to: | |||||||||||||||||
Stock options | 53 | 141 | 71 | 146 | |||||||||||||
Unvested restricted stock awards | 18 | 23 | 20 | 25 | |||||||||||||
Weighted average diluted shares outstanding | 13,610 | 13,735 | 13,617 | 13,825 | |||||||||||||
Net income | $ | 7,491 | $ | 9,448 | $ | 22,125 | $ | 25,162 | |||||||||
Basic EPS | $ | 0.55 | $ | 0.70 | $ | 1.64 | $ | 1.84 | |||||||||
Diluted EPS | $ | 0.55 | $ | 0.69 | $ | 1.62 | $ | 1.82 | |||||||||
Weighted average anti-dilutive shares not included in the calculation of diluted EPS | 202 | 39 | 152 | 34 |
(in thousands)
Description of Financial Instruments
|
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
Measurement Categories: Changes in Fair Value Recorded In1
|
||||||||||||
September 30, 2020 | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 241,189 | $ | — | $ | 241,189 | $ | — | OCI | ||||||||
SBA-backed securities | 32,844 | — | 32,844 | — | OCI | ||||||||||||
Debentures of government sponsored agencies | 45,688 | — | 45,688 | — | OCI | ||||||||||||
Obligations of state and political subdivisions | 93,743 | — | 93,743 | — | OCI | ||||||||||||
Derivative financial liabilities (interest rate contracts) | 2,529 | — | 2,529 | — | NI | ||||||||||||
December 31, 2019 | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 278,144 | $ | — | $ | 278,144 | $ | — | OCI | ||||||||
SBA-backed securities | 36,286 | — | 36,286 | — | OCI | ||||||||||||
Debentures of government sponsored agencies | 49,046 | — | 49,046 | — | OCI | ||||||||||||
Obligations of state and political subdivisions | 67,282 | — | 67,282 | — | OCI | ||||||||||||
Corporate bonds | 1,502 | — | 1,502 | — | OCI | ||||||||||||
Derivative financial liabilities (interest rate contracts) | 1,178 | — | 1,178 | — | NI |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
(in thousands) | Carrying Amounts | Fair Value | Fair Value Hierarchy | Carrying Amounts | Fair Value | Fair Value Hierarchy | |||||||||||||||||
Financial assets (recorded at amortized cost) | |||||||||||||||||||||||
Cash and cash equivalents | $ | 213,584 | $ | 213,584 | Level 1 | $ | 183,388 | $ | 183,388 | Level 1 | |||||||||||||
Investment securities held-to-maturity | 117,350 | 123,983 | Level 2 | 137,413 | 139,642 | Level 2 | |||||||||||||||||
Loans, net | 2,085,877 | 2,106,790 | Level 3 | 1,826,609 | 1,839,666 | Level 3 | |||||||||||||||||
Interest receivable | 11,014 | 11,014 | Level 2 | 7,732 | 7,732 | Level 2 | |||||||||||||||||
Financial liabilities (recorded at amortized cost) | |||||||||||||||||||||||
Time deposits | 98,084 | 98,495 | Level 2 | 97,810 | 97,859 | Level 2 | |||||||||||||||||
Subordinated debenture | 2,760 | 2,994 | Level 3 | 2,708 | 3,182 | Level 3 | |||||||||||||||||
Interest payable | 122 | 122 | Level 2 | 134 | 134 | Level 2 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
Amortized | Fair | Gross Unrealized | Amortized | Fair | Gross Unrealized | ||||||||||||||||||||||||
(in thousands) | Cost | Value | Gains | (Losses) | Cost | Value | Gains | (Losses) | |||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||
Securities of U.S. government-sponsored enterprises: | |||||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC and FNMA | $ | 69,797 | $ | 73,884 | $ | 4,087 | $ | — | $ | 80,451 | $ | 81,325 | $ | 1,018 | $ | (144) | |||||||||||||
SBA-backed securities | 6,549 | 6,979 | 430 | — | 7,999 | 8,264 | 265 | — | |||||||||||||||||||||
CMOs issued by FNMA | 8,440 | 8,834 | 394 | — | 10,210 | 10,492 | 282 | — | |||||||||||||||||||||
CMOs issued by FHLMC | 29,657 | 31,331 | 1,674 | — | 31,477 | 32,157 | 685 | (5) | |||||||||||||||||||||
CMOs issued by GNMA | 1,230 | 1,235 | 5 | — | 3,763 | 3,816 | 53 | — | |||||||||||||||||||||
Obligations of state and
political subdivisions |
1,677 | 1,720 | 43 | — | 3,513 | 3,588 | 75 | — | |||||||||||||||||||||
Total held-to-maturity | 117,350 | 123,983 | 6,633 | — | 137,413 | 139,642 | 2,378 | (149) | |||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||
Securities of U.S. government-sponsored enterprises: | |||||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC and FNMA | 56,679 | 59,482 | 2,803 | — | 98,502 | 100,071 | 1,617 | (48) | |||||||||||||||||||||
SBA-backed securities | 31,057 | 32,844 | 1,844 | (57) | 35,674 | 36,286 | 688 | (76) | |||||||||||||||||||||
CMOs issued by FNMA | 18,285 | 18,961 | 676 | — | 22,702 | 23,092 | 390 | — | |||||||||||||||||||||
CMOs issued by FHLMC | 144,600 | 153,255 | 8,656 | (1) | 139,398 | 143,226 | 3,892 | (64) | |||||||||||||||||||||
CMOs issued by GNMA | 9,064 | 9,491 | 427 | — | 11,719 | 11,755 | 42 | (6) | |||||||||||||||||||||
Debentures of government- sponsored agencies | 45,239 | 45,688 | 449 | — | 48,389 | 49,046 | 727 | (70) | |||||||||||||||||||||
Obligations of state and
political subdivisions |
89,513 | 93,743 | 4,230 | — | 66,042 | 67,282 | 1,386 | (146) | |||||||||||||||||||||
Corporate bonds | — | — | — | — | 1,497 | 1,502 | 6 | (1) | |||||||||||||||||||||
Total available-for-sale | 394,437 | 413,464 | 19,085 | (58) | 423,923 | 432,260 | 8,748 | (411) | |||||||||||||||||||||
Total investment securities | $ | 511,787 | $ | 537,447 | $ | 25,718 | $ | (58) | $ | 561,336 | $ | 571,902 | $ | 11,126 | $ | (560) | |||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | Held-to-Maturity | Available-for-Sale | ||||||||||||||||||||||||||||||||
(in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||||
Within one year | $ | 247 | $ | 252 | $ | 14,235 | $ | 14,452 | $ | 1,807 | $ | 1,811 | $ | 6,699 | $ | 6,706 | |||||||||||||||||||
After one but within five years | 8,974 | 9,539 | 60,958 | 64,559 | 2,256 | 2,296 | 48,706 | 49,619 | |||||||||||||||||||||||||||
After five years through ten years | 52,373 | 56,139 | 164,815 | 174,439 | 56,221 | 57,544 | 208,806 | 214,277 | |||||||||||||||||||||||||||
After ten years | 55,756 | 58,053 | 154,429 | 160,014 | 77,129 | 77,991 | 159,712 | 161,658 | |||||||||||||||||||||||||||
Total | $ | 117,350 | $ | 123,983 | $ | 394,437 | $ | 413,464 | $ | 137,413 | $ | 139,642 | $ | 423,923 | $ | 432,260 |
Three months ended | Nine months ended | ||||||||||||||||
(in thousands) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||
Available-for-sale: | |||||||||||||||||
Sales proceeds | $ | — | $ | — | $ | 33,756 | $ | 66,081 | |||||||||
Gross realized gains | — | — | 916 | 214 | |||||||||||||
Gross realized losses | — | — | (1) | (159) | |||||||||||||
(in thousands) | September 30, 2020 | December 31, 2019 | ||||||
Pledged to the State of California: | ||||||||
Secure public deposits in compliance with the Local Agency Security Program | $ | 102,396 | $ | 126,598 | ||||
Collateral for trust deposits | 752 | 742 | ||||||
Total investment securities pledged to the State of California | 103,148 | 127,340 | ||||||
Collateral for Wealth Management and Trust Services checking account | 629 | 622 | ||||||
Total pledged investment securities | $ | 103,777 | $ | 127,962 |
September 30, 2020 | < 12 continuous months | ≥ 12 continuous months |
Total securities
in a loss position |
|||||||||||||||||||||||
(in thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||
SBA-backed securities | $ | — | $ | — | $ | 1,900 | $ | (57) | $ | 1,900 | $ | (57) | ||||||||||||||
CMOs issued by FHLMC | 2,014 | (1) | — | — | 2,014 | (1) | ||||||||||||||||||||
Total available-for-sale | 2,014 | (1) | 1,900 | (57) | 3,914 | (58) | ||||||||||||||||||||
Total temporarily impaired securities | $ | 2,014 | $ | (1) | $ | 1,900 | $ | (57) | $ | 3,914 | $ | (58) |
December 31, 2019 | < 12 continuous months | ≥ 12 continuous months |
Total securities
in a loss position |
|||||||||||||||||||||||
(in thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC and FNMA | $ | 14,203 | $ | (60) | $ | 6,073 | $ | (84) | $ | 20,276 | $ | (144) | ||||||||||||||
CMOs issued by FHLMC | — | — | 1,725 | (5) | 1,725 | (5) | ||||||||||||||||||||
Total held-to-maturity | 14,203 | (60) | 7,798 | (89) | 22,001 | (149) | ||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC and FNMA | 4,367 | (34) | 4,464 | (14) | 8,831 | (48) | ||||||||||||||||||||
SBA-backed securities | 9,227 | (14) | 2,448 | (62) | 11,675 | (76) | ||||||||||||||||||||
CMOs issued by FHLMC | 14,918 | (58) | 2,981 | (6) | 17,899 | (64) | ||||||||||||||||||||
CMOs issued by GNMA | 7,139 | (6) | — | — | 7,139 | (6) | ||||||||||||||||||||
Debentures of government- sponsored agencies | 25,228 | (70) | — | — | 25,228 | (70) | ||||||||||||||||||||
Obligations of state and political subdivisions | 20,579 | (145) | 659 | (1) | 21,238 | (146) | ||||||||||||||||||||
Corporate Bonds | 500 | (1) | — | — | 500 | (1) | ||||||||||||||||||||
Total available-for-sale | 81,958 | (328) | 10,552 | (83) | 92,510 | (411) | ||||||||||||||||||||
Total temporarily impaired securities | $ | 96,161 | $ | (388) | $ | 18,350 | $ | (172) | $ | 114,511 | $ | (560) |
Loan Aging Analysis by Class | ||||||||||||||||||||||||||
(in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor-owned | Construction | Home equity | Other residential | Installment and other consumer | Total | ||||||||||||||||||
September 30, 2020 | ||||||||||||||||||||||||||
30-59 days past due | $ | 198 | $ | — | $ | — | $ | — | $ | 217 | $ | — | $ | — | $ | 415 | ||||||||||
60-89 days past due | — | — | — | — | 276 | — | 7 | 283 | ||||||||||||||||||
90 days or more past due | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total past due | 198 | — | — | — | 493 | — | 7 | 698 | ||||||||||||||||||
Current | 512,775 | 299,754 | 966,517 | 66,663 | 106,871 | 130,915 | 23,798 | 2,107,293 | ||||||||||||||||||
Total loans 1
|
$ | 512,973 | $ | 299,754 | $ | 966,517 | $ | 66,663 | $ | 107,364 | $ | 130,915 | $ | 23,805 | $ | 2,107,991 | ||||||||||
Non-accrual loans 2
|
$ | — | $ | — | $ | 886 | $ | — | $ | 532 | $ | — | $ | 24 | $ | 1,442 | ||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
30-59 days past due | $ | 1 | $ | — | $ | 1,001 | $ | — | $ | 279 | $ | — | $ | 7 | $ | 1,288 | ||||||||||
60-89 days past due | — | — | — | — | 98 | — | 95 | 193 | ||||||||||||||||||
90 days or more past due | — | — | — | — | 167 | — | — | 167 | ||||||||||||||||||
Total past due | 1 | — | 1,001 | — | 544 | — | 102 | 1,648 | ||||||||||||||||||
Current | 246,686 | 308,824 | 945,316 | 61,095 | 115,480 | 136,657 | 27,580 | 1,841,638 | ||||||||||||||||||
Total loans 1
|
$ | 246,687 | $ | 308,824 | $ | 946,317 | $ | 61,095 | $ | 116,024 | $ | 136,657 | $ | 27,682 | $ | 1,843,286 | ||||||||||
Non-accrual loans 2
|
$ | — | $ | — | $ | — | $ | — | $ | 168 | $ | — | $ | 58 | $ | 226 |
Credit Risk Profile by Internally Assigned Risk Grade | |||||||||||||||||||||||||||||
(in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor-owned | Construction | Home equity | Other residential | Installment and other consumer | Total | |||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||
Pass | $ | 484,305 | $ | 251,741 | $ | 946,166 | $ | 66,663 | $ | 105,824 | $ | 130,915 | $ | 23,665 | $ | 2,009,279 | |||||||||||||
Special Mention | 28,544 | 41,010 | 17,359 | — | 800 | — | — | 87,713 | |||||||||||||||||||||
Substandard | 124 | 7,003 | 2,992 | — | 740 | — | 140 | 10,999 | |||||||||||||||||||||
Total loans | $ | 512,973 | $ | 299,754 | $ | 966,517 | $ | 66,663 | $ | 107,364 | $ | 130,915 | $ | 23,805 | $ | 2,107,991 | |||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Pass | $ | 209,213 | $ | 264,766 | $ | 945,757 | $ | 61,095 | $ | 114,935 | $ | 136,657 | $ | 27,538 | $ | 1,759,961 | |||||||||||||
Special Mention | 37,065 | 35,016 | 560 | — | 750 | — | — | 73,391 | |||||||||||||||||||||
Substandard | 409 | 9,042 | — | — | 339 | — | 144 | 9,934 | |||||||||||||||||||||
Total loans | $ | 246,687 | $ | 308,824 | $ | 946,317 | $ | 61,095 | $ | 116,024 | $ | 136,657 | $ | 27,682 | $ | 1,843,286 |
(dollars in thousands) | Number of Contracts Modified | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment at Period End | ||||||||||
TDRs during the three months ended September 30, 2020: | ||||||||||||||
Commercial real estate, investor-owned | 1 | $ | 1,553 | $ | 1,553 | $ | 1,553 | |||||||
TDRs during the three months ended September 30, 2019: | ||||||||||||||
None | — | $ | — | $ | — | $ | — | |||||||
TDRs during the nine months ended September 30, 2020: | ||||||||||||||
Commercial and industrial | 1 | $ | 170 | $ | 162 | $ | 125 | |||||||
Commercial real estate, investor-owned | 1 | 1,553 | 1,553 | 1,553 | ||||||||||
Home equity | 1 | 276 | 276 | 276 | ||||||||||
Installment and other consumer | 3 | 211 | 211 | 209 | ||||||||||
6 | $ | 2,210 | $ | 2,202 | $ | 2,163 | ||||||||
TDRs during the nine months ended September 30, 2019: | ||||||||||||||
Commercial and industrial | 1 | $ | 298 | $ | 298 | $ | 173 | |||||||
(in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor-owned | Construction | Home equity | Other residential | Installment and other consumer | Total | ||||||||||||||||||
September 30, 2020 | ||||||||||||||||||||||||||
Recorded investment in impaired loans: | ||||||||||||||||||||||||||
With no specific allowance recorded | $ | 291 | $ | — | $ | 885 | $ | — | $ | 532 | $ | — | $ | 89 | $ | 1,797 | ||||||||||
With a specific allowance recorded | 726 | 7,003 | 3,310 | — | 251 | — | 680 | 11,970 | ||||||||||||||||||
Total recorded investment in impaired loans | $ | 1,017 | $ | 7,003 | $ | 4,195 | $ | — | $ | 783 | $ | — | $ | 769 | $ | 13,767 | ||||||||||
Unpaid principal balance of impaired loans | $ | 1,012 | $ | 6,993 | $ | 4,187 | $ | — | $ | 801 | $ | — | $ | 767 | $ | 13,760 | ||||||||||
Specific allowance | 19 | 225 | 697 | — | 4 | — | 161 | 1,106 | ||||||||||||||||||
Average recorded investment in impaired loans during the quarter ended
September 30, 2020 |
798 | 7,002 | 3,430 | — | 829 | — | 774 | 12,833 | ||||||||||||||||||
Interest income recognized on impaired loans during the quarter ended
September 30, 20201
|
11 | 64 | 30 | — | 3 | — | 7 | 115 | ||||||||||||||||||
Average recorded investment in impaired loans during the nine months ended
September 30, 2020 |
948 | 7,000 | 2,832 | — | 740 | 225 | 730 | 12,475 | ||||||||||||||||||
Interest income recognized on impaired loans during the nine months ended
September 30, 20201
|
32 | 197 | 68 | — | 10 | 4 | 22 | 333 | ||||||||||||||||||
Average recorded investment in impaired loans during the quarter ended
September 30, 2019 |
1,324 | 7,000 | 1,791 | 684 | 413 | 456 | 659 | 12,327 | ||||||||||||||||||
Interest income recognized on impaired loans during the quarter ended
September 30, 20191 |
16 | 67 | 20 | 400 | 9 | 4 | 6 | 522 | ||||||||||||||||||
Average recorded investment in impaired loans during the nine months ended
September 30, 2019 |
1,495 | 6,998 | 1,804 | 1,687 | 497 | 458 | 670 | 13,609 | ||||||||||||||||||
Interest income recognized on impaired loans during the nine months ended September 30, 20191
|
56 | 199 | 59 | 456 | 42 | 14 | 18 | 844 |
(in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor-owned | Construction | Home equity | Other residential | Installment and other consumer | Total | ||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Recorded investment in impaired loans: | ||||||||||||||||||||||||||
With no specific allowance recorded | $ | 349 | $ | — | $ | — | $ | — | $ | 167 | $ | 452 | $ | 98 | $ | 1,066 | ||||||||||
With a specific allowance recorded | 874 | 6,998 | 1,770 | — | 251 | — | 541 | 10,434 | ||||||||||||||||||
Total recorded investment in impaired loans | $ | 1,223 | $ | 6,998 | $ | 1,770 | $ | — | $ | 418 | $ | 452 | $ | 639 | $ | 11,500 | ||||||||||
Unpaid principal balance of impaired loans | $ | 1,209 | $ | 6,992 | $ | 1,764 | $ | — | $ | 417 | $ | 451 | $ | 638 | $ | 11,471 | ||||||||||
Specific allowance | $ | 103 | $ | 195 | $ | 41 | $ | — | $ | 5 | $ | — | $ | 53 | $ | 397 |
Allowance for Loan Losses Rollforward for the Period | |||||||||||||||||||||||||||||
(in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor-owned | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,609 | $ | 2,910 | $ | 10,403 | $ | 836 | $ | 1,044 | $ | 1,266 | $ | 426 | $ | 1,374 | $ | 20,868 | |||||||||||
Provision (reversal) | (79) | 225 | 1,221 | 24 | (6) | (6) | (20) | (109) | 1,250 | ||||||||||||||||||||
Charge-offs | (10) | — | — | — | — | — | — | — | (10) | ||||||||||||||||||||
Recoveries | 5 | — | — | — | — | — | — | — | 5 | ||||||||||||||||||||
Ending balance | $ | 2,525 | $ | 3,135 | $ | 11,624 | $ | 860 | $ | 1,038 | $ | 1,260 | $ | 406 | $ | 1,265 | $ | 22,113 | |||||||||||
Three months ended September 30, 2019 | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,368 | $ | 2,321 | $ | 7,721 | $ | 619 | $ | 907 | $ | 849 | $ | 323 | $ | 727 | $ | 15,835 | |||||||||||
Provision (reversal) | 326 | 21 | 211 | (117) | (28) | 56 | (28) | (41) | 400 | ||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 5 | — | — | — | — | — | — | — | 5 | ||||||||||||||||||||
Ending balance | $ | 2,699 | $ | 2,342 | $ | 7,932 | $ | 502 | $ | 879 | $ | 905 | $ | 295 | $ | 686 | $ | 16,240 |
Allowance for Loan Losses Rollforward for the Period | |||||||||||||||||||||||||||||
(in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,334 | $ | 2,462 | $ | 8,483 | $ | 638 | $ | 850 | $ | 973 | $ | 284 | $ | 653 | $ | 16,677 | |||||||||||
Provision (reversal) | 208 | 673 | 3,141 | 219 | 188 | 287 | 122 | 612 | 5,450 | ||||||||||||||||||||
Charge-offs | (30) | — | — | — | — | — | — | — | (30) | ||||||||||||||||||||
Recoveries | 13 | — | — | 3 | — | — | — | — | 16 | ||||||||||||||||||||
Ending balance | $ | 2,525 | $ | 3,135 | $ | 11,624 | $ | 860 | $ | 1,038 | $ | 1,260 | $ | 406 | $ | 1,265 | $ | 22,113 | |||||||||||
Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,436 | $ | 2,407 | $ | 7,703 | $ | 756 | $ | 915 | $ | 800 | $ | 310 | $ | 494 | $ | 15,821 | |||||||||||
Provision (reversal) | 256 | (65) | 217 | (254) | (36) | 105 | (15) | 192 | 400 | ||||||||||||||||||||
Charge-offs | (9) | — | — | — | — | — | — | — | (9) | ||||||||||||||||||||
Recoveries | 16 | — | 12 | — | — | — | — | — | 28 | ||||||||||||||||||||
Ending balance | $ | 2,699 | $ | 2,342 | $ | 7,932 | $ | 502 | $ | 879 | $ | 905 | $ | 295 | $ | 686 | $ | 16,240 |
Allowance for Loan Losses and Recorded Investment in Loans | |||||||||||||||||||||||||||||
(dollars in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor-owned | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||
Ending ALLL related to loans collectively evaluated for impairment | $ | 2,506 | $ | 2,910 | $ | 10,927 | $ | 860 | $ | 1,034 | $ | 1,260 | $ | 245 | $ | 1,265 | $ | 21,007 | |||||||||||
Ending ALLL related to loans individually evaluated for impairment | 19 | 225 | 697 | — | 4 | — | 161 | — | 1,106 | ||||||||||||||||||||
Ending balance | $ | 2,525 | $ | 3,135 | $ | 11,624 | $ | 860 | $ | 1,038 | $ | 1,260 | $ | 406 | $ | 1,265 | $ | 22,113 | |||||||||||
Recorded Investment: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 511,956 | $ | 292,751 | $ | 962,322 | $ | 66,663 | $ | 106,581 | $ | 130,915 | $ | 23,036 | $ | — | $ | 2,094,224 | |||||||||||
Individually evaluated for impairment | 1,017 | 7,003 | 4,195 | — | 783 | — | 769 | — | 13,767 | ||||||||||||||||||||
Total | $ | 512,973 | $ | 299,754 | $ | 966,517 | $ | 66,663 | $ | 107,364 | $ | 130,915 | $ | 23,805 | $ | — | $ | 2,107,991 | |||||||||||
Ratio of allowance for loan losses to total loans | 0.49 | % | 1.05 | % | 1.20 | % | 1.29 | % | 0.97 | % | 0.96 | % | 1.71 | % | NM | 1.05 | % | ||||||||||||
Allowance for loan losses to non-accrual loans | NM | NM | 1,312 | % | NM | 195 | % | NM | 1,692 | % | NM | 1,533 | % |
Allowance for Loan Losses and Recorded Investment in Loans | |||||||||||||||||||||||||||||
(dollars in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor-owned | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Ending ALLL related to loans collectively evaluated for impairment | $ | 2,231 | $ | 2,267 | $ | 8,442 | $ | 638 | $ | 845 | $ | 973 | $ | 231 | $ | 653 | $ | 16,280 | |||||||||||
Ending ALLL related to loans individually evaluated for impairment | 103 | 195 | 41 | — | 5 | — | 53 | — | 397 | ||||||||||||||||||||
Ending balance | $ | 2,334 | $ | 2,462 | $ | 8,483 | $ | 638 | $ | 850 | $ | 973 | $ | 284 | $ | 653 | $ | 16,677 | |||||||||||
Recorded Investment: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 245,464 | $ | 301,826 | $ | 944,547 | $ | 61,095 | $ | 115,606 | $ | 136,205 | $ | 27,043 | $ | — | $ | 1,831,786 | |||||||||||
Individually evaluated for impairment | 1,223 | 6,998 | 1,770 | — | 418 | 452 | 639 | — | 11,500 | ||||||||||||||||||||
Total | $ | 246,687 | $ | 308,824 | $ | 946,317 | $ | 61,095 | $ | 116,024 | $ | 136,657 | $ | 27,682 | $ | — | $ | 1,843,286 | |||||||||||
Ratio of allowance for loan losses to total loans | 0.95 | % | 0.80 | % | 0.90 | % | 1.04 | % | 0.73 | % | 0.71 | % | 1.03 | % | NM | 0.90 | % | ||||||||||||
Allowance for loan losses to non-accrual loans | NM | NM | NM | NM | 506 | % | NM | 490 | % | NM | 7,379 | % |
(in thousands) | September 30, 2020 | December 31, 2019 | ||||||
Commercial lines of credit | $ | 301,107 | $ | 287,533 | ||||
Revolving home equity lines | 193,364 | 189,035 | ||||||
Undisbursed construction loans | 59,548 | 41,033 | ||||||
Personal and other lines of credit | 10,923 | 9,567 | ||||||
Standby letters of credit | 2,572 | 1,964 | ||||||
Total commitments and standby letters of credit | $ | 567,514 | $ | 529,132 |
Nine months ended | ||||||||
(in thousands) | September 30, 2020 | September 30, 2019 | ||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 18,021 | $ | 1,661 | ||||
Right-of-use assets obtained in exchange for finance lease liabilities | $ | 18 | $ | 31 | ||||
Reclassification of deferred rent and unamortized lease incentives from other liabilities to operating lease right-of-use assets upon adoption of ASC 842 | $ | — | $ | 1,967 |
(in thousands) | September 30, 2020 | |||||||
Year | Operating Leases | Finance Leases | ||||||
2020 | $ | 1,199 | $ | 41 | ||||
2021 | 4,592 | 42 | ||||||
2022 | 4,318 | 13 | ||||||
2023 | 3,893 | 4 | ||||||
2024 | 3,187 | — | ||||||
Thereafter | 12,475 | — | ||||||
Total minimum lease payments | 29,664 | 100 | ||||||
Amounts representing interest (present value discount) | (2,137) | (1) | ||||||
Present value of net minimum lease payments (lease liability) | $ | 27,527 | $ | 99 | ||||
Weighted average remaining term (in years) | 8.0 | 1.2 | ||||||
Weighted average discount rate | 1.84 | % | 2.55 | % |
Asset Derivatives | Liability Derivatives | ||||||||||||||||
(in thousands) |
September 30,
2020 |
December 31, 2019 |
September 30,
2020 |
December 31, 2019 | |||||||||||||
Fair value hedges: | |||||||||||||||||
Interest rate contracts notional amount | $ | — | $ | — | $ | 16,218 | $ | 16,956 | |||||||||
Interest rate contracts fair value1
|
$ | — | $ | — | $ | 2,529 | $ | 1,178 |
Carrying Amounts of Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Loans | ||||||||||||||||
(in thousands)
|
September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | |||||||||||||
Loans | $ | 18,535 | $ | 17,900 | $ | 2,318 | $ | 944 |
Three months ended | Nine months ended | |||||||||||||
(in thousands) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||
Interest and fees on loans 1
|
$ | 21,776 | $ | 21,525 | $ | 63,880 | $ | 63,208 | ||||||
Increase (decrease) in fair value of designated interest rate swaps due to LIBOR interest rate movements | $ | 152 | $ | (485) | $ | (1,351) | $ | (1,389) | ||||||
Payment on interest rate swaps | (108) | (23) | (255) | (49) | ||||||||||
(Decrease) increase in value of hedged loans | (155) | 424 | 1,374 | 1,359 | ||||||||||
Decrease in value of yield maintenance agreement | (3) | (3) | (9) | (10) | ||||||||||
Net losses on fair value hedging relationships recognized in interest income | $ | (114) | $ | (87) | $ | (241) | $ | (89) |
Offsetting of Financial Assets and Derivative Assets | ||||||||||||||||||||
Gross Amounts | Net Amounts of | Gross Amounts Not Offset in | ||||||||||||||||||
Gross Amounts | Offset in the | Assets Presented | the Statements of Condition | |||||||||||||||||
of Recognized | Statements of | in the Statements | Financial | Cash Collateral | ||||||||||||||||
(in thousands)
|
Assets | Condition | of Condition | Instruments | Received | Net Amount | ||||||||||||||
September 30, 2020 | ||||||||||||||||||||
Derivatives by Counterparty: | ||||||||||||||||||||
Counterparty A | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
December 31, 2019 | ||||||||||||||||||||
Derivatives by Counterparty: | ||||||||||||||||||||
Counterparty A | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | ||||||||||||||||||||
Gross Amounts | Net Amounts of | Gross Amounts Not Offset in | ||||||||||||||||||
Gross Amounts | Offset in the | Liabilities Presented | the Statements of Condition | |||||||||||||||||
of Recognized | Statements of | in the Statements | Financial | Cash Collateral | ||||||||||||||||
(in thousands) |
Liabilities1
|
Condition |
of Condition1
|
Instruments | Pledged | Net Amount | ||||||||||||||
September 30, 2020 | ||||||||||||||||||||
Derivatives by Counterparty: | ||||||||||||||||||||
Counterparty A | $ | 2,529 | $ | — | $ | 2,529 | $ | — | $ | (2,529) | $ | — | ||||||||
December 31, 2019 | ||||||||||||||||||||
Derivatives by Counterparty: | ||||||||||||||||||||
Counterparty A | $ | 1,178 | $ | — | $ | 1,178 | $ | — | $ | (1,178) | $ | — | ||||||||
Payment Relief by Type | ||||||||
Industry |
Outstanding Loan Balance
(in thousands) |
Weighted Average LTV | ||||||
Education | $17,481 | 26% | ||||||
Hospitality | 10,431 | 49% | ||||||
Retail Related CRE | 6,295 | 48% | ||||||
Health Clubs | 6,201 | 60% | ||||||
Office and Mixed Use | 5,371 | 55% | ||||||
Non-CRE Related | 1,459 | N/A | ||||||
Payment Relief Totals | $47,238 | 42% |
(dollars in thousands) | September 30, 2020 | December 31, 2019 | ||||||
Selected financial condition data: | ||||||||
Total assets | $ | 2,975,225 | $ | 2,707,280 | ||||
Loans, net | 2,085,878 | 1,826,609 | ||||||
Deposits | 2,569,289 | 2,336,489 | ||||||
Borrowings and other obligations | 2,859 | 2,920 | ||||||
Stockholders' equity | 357,570 | 336,788 | ||||||
Asset quality ratios: | ||||||||
Allowance for loan losses to total loans | 1.05 | % | 0.90 | % | ||||
Allowance for loan losses to total loans, excluding non-PCI and SBA PPP loans 1
|
1.29 | % | 0.96 | % | ||||
Allowance for loan losses to non-accrual loans | 15.34x | 73.86x | ||||||
Non-accrual loans to total loans | 0.07 | % | 0.01 | % | ||||
Capital ratios: | ||||||||
Equity to total assets ratio | 12.02 | % | 12.44 | % | ||||
Tangible common equity to tangible assets 2
|
11.00 | % | 11.30 | % | ||||
Total capital (to risk-weighted assets) | 16.05 | % | 15.07 | % | ||||
Tier 1 capital (to risk-weighted assets) | 14.92 | % | 14.24 | % | ||||
Tier 1 capital (to average assets) | 10.58 | % | 11.66 | % | ||||
Common equity Tier 1 capital (to risk weighted assets) | 14.79 | % | 14.11 | % |
Three months ended | Nine months ended | ||||||||||||||||
(dollars in thousands, except per share data) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||
Selected operating data: | |||||||||||||||||
Net interest income | $ | 24,566 | $ | 24,151 | $ | 73,060 | $ | 71,786 | |||||||||
Provision for loan losses | 1,250 | 400 | 5,450 | 400 | |||||||||||||
Non-interest income | 1,790 | 2,721 | 6,723 | 6,766 | |||||||||||||
Non-interest expense | 15,238 | 14,200 | 44,848 | 44,644 | |||||||||||||
Net income | 7,491 | 9,448 | 22,125 | 25,162 | |||||||||||||
Net income per common share: | |||||||||||||||||
Basic | $ | 0.55 | $ | 0.70 | $ | 1.64 | $ | 1.84 | |||||||||
Diluted | $ | 0.55 | $ | 0.69 | $ | 1.62 | $ | 1.82 | |||||||||
Performance and other financial ratios: | |||||||||||||||||
Return on average assets | 0.98 | % | 1.49 | % | 1.03 | % | 1.33 | % | |||||||||
Return on average equity | 8.37 | % | 11.34 | % | 8.47 | % | 10.40 | % | |||||||||
Tax-equivalent net interest margin 3
|
3.44 | % | 4.04 | % | 3.61 | % | 4.03 | % | |||||||||
Cost of deposits | 0.09 | % | 0.21 | % | 0.13 | % | 0.20 | % | |||||||||
Efficiency ratio | 57.82 | % | 52.84 | % | 56.21 | % | 56.83 | % | |||||||||
Cash dividend payout ratio on common stock 4
|
41.82 | % | 30.00 | % | 28.05 | % | 32.07 | % |
Three months ended | Three months ended | |||||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | |||||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||||
(dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Interest-earning deposits with banks 1
|
$ | 184,883 | $ | 50 | 0.11 | % | $ | 77,467 | $ | 425 | 2.15 | % | ||||||||||||||
Investment securities 2, 3
|
527,077 | 3,481 | 2.64 | % | 506,023 | 3,443 | 2.72 | % | ||||||||||||||||||
Loans 1, 3, 4
|
2,117,679 | 21,957 | 4.06 | % | 1,780,325 | 21,719 | 4.77 | % | ||||||||||||||||||
Total interest-earning assets 1
|
2,829,639 | 25,488 | 3.52 | % | 2,363,815 | 25,587 | 4.24 | % | ||||||||||||||||||
Cash and non-interest-bearing due from banks | 55,353 | 38,434 | ||||||||||||||||||||||||
Bank premises and equipment, net | 5,412 | 6,713 | ||||||||||||||||||||||||
Interest receivable and other assets, net | 138,938 | 114,537 | ||||||||||||||||||||||||
Total assets | $ | 3,029,342 | $ | 2,523,499 | ||||||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 153,089 | $ | 41 | 0.11 | % | $ | 137,861 | $ | 101 | 0.29 | % | ||||||||||||||
Savings accounts | 191,915 | 17 | 0.04 | % | 170,166 | 17 | 0.04 | % | ||||||||||||||||||
Money market accounts | 802,585 | 377 | 0.19 | % | 661,131 | 855 | 0.51 | % | ||||||||||||||||||
Time accounts including CDARS | 97,465 | 133 | 0.54 | % | 101,404 | 147 | 0.57 | % | ||||||||||||||||||
Borrowings and other obligations 1
|
113 | — | 2.51 | % | 599 | 4 | 2.69 | % | ||||||||||||||||||
Subordinated debenture 1
|
2,751 | 35 | 4.97 | % |
|
2,682 | 57 | 8.27 | % | |||||||||||||||||
Total interest-bearing liabilities | 1,247,918 | 603 | 0.19 | % | 1,073,843 | 1,181 | 0.44 | % | ||||||||||||||||||
Demand accounts | 1,380,708 | 1,088,903 | ||||||||||||||||||||||||
Interest payable and other liabilities | 44,486 | 30,268 | ||||||||||||||||||||||||
Stockholders' equity | 356,230 | 330,485 | ||||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 3,029,342 | $ | 2,523,499 | ||||||||||||||||||||||
Tax-equivalent net interest income/margin 1
|
$ | 24,885 | 3.44 | % | $ | 24,406 | 4.04 | % | ||||||||||||||||||
Reported net interest income/margin 1
|
$ | 24,566 | 3.40 | % | $ | 24,151 | 4.00 | % | ||||||||||||||||||
Tax-equivalent net interest rate spread | 3.33 | % | 3.80 | % |
Nine months ended | Nine months ended | |||||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | |||||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||||
(in thousands; unaudited) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Interest-earning deposits with banks 1
|
$ | 152,587 | $ | 421 | 0.36 | % | $ | 43,896 | $ | 754 | 2.27 | % | ||||||||||||||
Investment securities 2, 3
|
544,754 | 11,632 | 2.85 | % | 564,050 | 11,477 | 2.71 | % | ||||||||||||||||||
Loans 1, 3, 4
|
1,998,456 | 64,423 | 4.24 | % | 1,765,260 | 63,786 | 4.76 | % | ||||||||||||||||||
Total interest-earning assets 1
|
2,695,797 | 76,476 | 3.73 | % | 2,373,206 | 76,017 | 4.22 | % | ||||||||||||||||||
Cash and non-interest-bearing due from banks | 44,665 | 34,634 | ||||||||||||||||||||||||
Bank premises and equipment, net | 5,631 | 7,108 | ||||||||||||||||||||||||
Interest receivable and other assets, net | 130,525 | 108,806 | ||||||||||||||||||||||||
Total assets | $ | 2,876,618 | $ | 2,523,754 | ||||||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 144,784 | $ | 146 | 0.13 | % | $ | 130,109 | $ | 269 | 0.28 | % | ||||||||||||||
Savings accounts | 179,288 | 50 | 0.04 | % | 174,837 | 52 | 0.04 | % | ||||||||||||||||||
Money market accounts | 786,012 | 1,731 | 0.29 | % | 665,167 | 2,406 | 0.48 | % | ||||||||||||||||||
Time accounts including CDARS | 96,237 | 436 | 0.61 | % | 109,978 | 441 | 0.54 | % | ||||||||||||||||||
Borrowings and other obligations 1
|
208 | 3 | 2.14 | % | 3,848 | 75 | 2.57 | % | ||||||||||||||||||
Subordinated debenture 1
|
2,733 | 124 | 5.96 | % | 2,664 | 175 | 8.66 | % | ||||||||||||||||||
Total interest-bearing liabilities | 1,209,262 | 2,490 | 0.27 | % | 1,086,603 | 3,418 | 0.42 | % | ||||||||||||||||||
Demand accounts | 1,278,265 | 1,083,260 | ||||||||||||||||||||||||
Interest payable and other liabilities | 40,279 | 30,344 | ||||||||||||||||||||||||
Stockholders' equity | 348,812 | 323,547 | ||||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 2,876,618 | $ | 2,523,754 | ||||||||||||||||||||||
Tax-equivalent net interest income/margin 1
|
$ | 73,986 | 3.61 | % | $ | 72,599 | 4.03 | % | ||||||||||||||||||
Reported net interest income/margin 1
|
$ | 73,060 | 3.56 | % | $ | 71,786 | 3.99 | % | ||||||||||||||||||
Tax-equivalent net interest rate spread | 3.45 | % | 3.80 | % | ||||||||||||||||||||||
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 21%.
|
||||||||||||||||||||||||||
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.
|
Three months ended | Amount | Percent | ||||||||||||||||||
(dollars in thousands) | September 30, 2020 | September 30, 2019 | Increase (Decrease) | Increase (Decrease) | ||||||||||||||||
Service charges on deposit accounts | $ | 284 | $ | 439 | $ | (155) | (35.3) | % | ||||||||||||
Wealth Management and Trust Services | 450 | 495 | (45) | (9.1) | % | |||||||||||||||
Debit card interchange fees, net | 383 | 406 | (23) | (5.7) | % | |||||||||||||||
Merchant interchange fees, net | 63 | 79 | (16) | (20.3) | % | |||||||||||||||
Earnings on bank-owned life insurance | 232 | 795 | (563) | (70.8) | % | |||||||||||||||
Dividends on FHLB stock | 149 | 202 | (53) | (26.2) | % | |||||||||||||||
Gains on sale of investment securities, net | — | — | — | N/A | ||||||||||||||||
Other income | 229 | 305 | (76) | (24.9) | % | |||||||||||||||
Total non-interest income | $ | 1,790 | $ | 2,721 | $ | (931) | (34.2) | % | ||||||||||||
Nine months ended | Amount | Percent | ||||||||||||||||||
(dollars in thousands) | September 30, 2020 | September 30, 2019 | Increase (Decrease) | Increase (Decrease) | ||||||||||||||||
Service charges on deposit accounts | $ | 1,028 | $ | 1,403 | $ | (375) | (26.7) | % | ||||||||||||
Wealth Management and Trust Services | 1,375 | 1,406 | (31) | (2.2) | % | |||||||||||||||
Debit card interchange fees, net | 1,051 | 1,200 | (149) | (12.4) | % | |||||||||||||||
Merchant interchange fees, net | 183 | 253 | (70) | (27.7) | % | |||||||||||||||
Earnings on bank-owned life insurance, net | 741 | 970 | (229) | (23.6) | % | |||||||||||||||
Dividends on FHLB stock | 503 | 591 | (88) | (14.9) | % | |||||||||||||||
Gains on sale of investment securities, net | 915 | 55 | 860 | 1,563.6 | % | |||||||||||||||
Other income | 927 | 888 | 39 | 4.4 | % | |||||||||||||||
Total non-interest income | $ | 6,723 | $ | 6,766 | $ | (43) | (0.6) | % | ||||||||||||
Three months ended | Amount | Percent | |||||||||||||||||||||
(dollars in thousands) | September 30, 2020 | September 30, 2019 | Increase (Decrease) | Increase (Decrease) | |||||||||||||||||||
Salaries and related benefits | $ | 8,638 | $ | 8,412 | $ | 226 | 2.7 | % | |||||||||||||||
Occupancy and equipment | 1,776 | 1,507 | 269 | 17.9 | % | ||||||||||||||||||
Depreciation and amortization | 539 | 573 | (34) | (5.9) | % | ||||||||||||||||||
Federal Deposit Insurance Corporation insurance | 181 | 1 | 180 | 18,000.0 | % | ||||||||||||||||||
Data processing | 822 | 923 | (101) | (10.9) | % | ||||||||||||||||||
Professional services | 655 | 580 | 75 | 12.9 | % | ||||||||||||||||||
Directors' expense | 184 | 189 | (5) | (2.6) | % | ||||||||||||||||||
Information technology | 256 | 279 | (23) | (8.2) | % | ||||||||||||||||||
Amortization of core deposit intangible | 213 | 222 | (9) | (4.1) | % | ||||||||||||||||||
Provision for losses on off-balance sheet commitments | 248 | — | 248 | 100.0 | % | ||||||||||||||||||
Charitable contributions | 481 | 111 | 370 | 333.3 | % | ||||||||||||||||||
Other non-interest expense | |||||||||||||||||||||||
Advertising | 163 | 183 | (20) | (10.9) | % | ||||||||||||||||||
Other expense | 1,082 | 1,220 | (138) | (11.3) | % | ||||||||||||||||||
Total other non-interest expense | 1,245 | 1,403 | (158) | (11.3) | % | ||||||||||||||||||
Total non-interest expense | $ | 15,238 | $ | 14,200 | $ | 1,038 | 7.3 | % | |||||||||||||||
Nine months ended | Amount | Percent | |||||||||||||||||||||
(dollars in thousands) | September 30, 2020 | September 30, 2019 | Increase (Decrease) | Increase (Decrease) | |||||||||||||||||||
Salaries and related benefits | $ | 25,979 | $ | 26,426 | $ | (447) | (1.7) | % | |||||||||||||||
Occupancy and equipment | 5,100 | 4,616 | 484 | 10.5 | % | ||||||||||||||||||
Depreciation and amortization | 1,591 | 1,701 | (110) | (6.5) | % | ||||||||||||||||||
Federal Deposit Insurance Corporation insurance | 299 | 354 | (55) | (15.5) | % | ||||||||||||||||||
Data processing | 2,437 | 2,942 | (505) | (17.2) | % | ||||||||||||||||||
Professional services | 1,749 | 1,701 | 48 | 2.8 | % | ||||||||||||||||||
Directors' expense | 533 | 555 | (22) | (4.0) | % | ||||||||||||||||||
Information technology | 758 | 822 | (64) | (7.8) | % | ||||||||||||||||||
Amortization of core deposit intangible | 639 | 665 | (26) | (3.9) | % | ||||||||||||||||||
Provision for losses on off-balance sheet commitments | 610 | 129 | 481 | 372.9 | % | ||||||||||||||||||
Charitable contributions | 921 | 377 | 544 | 144.3 | % | ||||||||||||||||||
Other non-interest expense | |||||||||||||||||||||||
Advertising | 572 | 588 | (16) | (2.7) | % | ||||||||||||||||||
Other expense | 3,660 | 3,768 | (108) | (2.9) | % | ||||||||||||||||||
Total other non-interest expense | 4,232 | 4,356 | (124) | (2.8) | % | ||||||||||||||||||
Total non-interest expense | $ | 44,848 | $ | 44,644 | $ | 204 | 0.5 | % | |||||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
(dollars in thousands) | Amortized Cost | Fair Value | % of Total State and Political Subdivisions | Amortized Cost | Fair Value | % of Total State and Political Subdivisions | ||||||||||||||||||||
Within California: | ||||||||||||||||||||||||||
General obligation bonds | $ | 3,333 | $ | 3,570 | 3.6 | % | $ | 4,597 | $ | 4,813 | 6.6 | % | ||||||||||||||
Revenue bonds | 2,569 | 2,675 | 2.8 | 2,928 | 2,977 | 4.2 | ||||||||||||||||||||
Tax allocation bonds | 3,343 | 3,416 | 3.7 | 3,376 | 3,456 | 4.9 | ||||||||||||||||||||
Total within California | 9,245 | 9,661 | 10.1 | 10,901 | 11,246 | 15.7 | ||||||||||||||||||||
Outside California: | ||||||||||||||||||||||||||
General obligation bonds | 62,182 | 64,836 | 68.2 | 45,974 | 46,976 | 66.1 | ||||||||||||||||||||
Revenue bonds | 19,763 | 20,966 | 21.7 | 12,680 | 12,648 | 18.2 | ||||||||||||||||||||
Total outside California | 81,945 | 85,802 | 89.9 | 58,654 | 59,624 | 84.3 | ||||||||||||||||||||
Total obligations of state and political subdivisions | $ | 91,190 | $ | 95,463 | 100.0 | % | $ | 69,555 | $ | 70,870 | 100.0 | % |
Capital Ratios for Bancorp
(dollars in thousands)
|
Actual Ratio | Adequately Capitalized Threshold | Ratio to be a Well Capitalized Bank Holding Company | |||||||||||||||||
September 30, 2020 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
Total Capital (to risk-weighted assets) | $ | 338,841 | 16.05 | % | ≥ $ | 221,701 | ≥ 10.50 | % | ≥ $ | 211,144 | ≥ 10.00 | % | ||||||||
Tier 1 Capital (to risk-weighted assets) | $ | 315,031 | 14.92 | % | ≥ $ | 179,472 | ≥ 8.50 | % | ≥ $ | 168,915 | ≥ 8.00 | % | ||||||||
Tier 1 Capital (to average assets) | $ | 315,031 | 10.58 | % | ≥ $ | 119,063 | ≥ 4.00 | % | ≥ $ | 148,829 | ≥ 5.00 | % | ||||||||
Common Equity Tier 1 (to risk-weighted assets) | $ | 312,271 | 14.79 | % | ≥ $ | 147,801 | ≥ 7.00 | % | ≥ $ | 137,243 | ≥ 6.50 | % | ||||||||
December 31, 2019 | ||||||||||||||||||||
Total Capital (to risk-weighted assets) | $ | 319,317 | 15.07 | % | ≥ $ | 222,430 | ≥ 10.50 | % | ≥ $ | 211,838 | ≥ 10.00 | % | ||||||||
Tier 1 Capital (to risk-weighted assets) | $ | 301,553 | 14.24 | % | ≥ $ | 180,063 | ≥ 8.50 | % | ≥ $ | 169,471 | ≥ 8.00 | % | ||||||||
Tier 1 Capital (to average assets) | $ | 301,553 | 11.66 | % | ≥ $ | 103,489 | ≥ 4.00 | % | ≥ $ | 129,361 | ≥ 5.00 | % | ||||||||
Common Equity Tier 1 (to risk-weighted assets) | $ | 298,845 | 14.11 | % | ≥ $ | 148,287 | ≥ 7.00 | % | ≥ $ | 137,695 | ≥ 6.50 | % |
Capital Ratios for the Bank
(dollars in thousands)
|
Actual Ratio | Adequately Capitalized Threshold | Ratio to be Well Capitalized under Prompt Corrective Action Provisions | |||||||||||||||||
September 30, 2020 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
Total Capital (to risk-weighted assets) | $ | 326,658 | 15.47 | % | ≥ $ | 221,693 | ≥ 10.50 | % | ≥ $ | 211,136 | ≥ 10.00 | % | ||||||||
Tier 1 Capital (to risk-weighted assets) | $ | 302,848 | 14.34 | % | ≥ $ | 179,466 | ≥ 8.50 | % | ≥ $ | 168,909 | ≥ 8.00 | % | ||||||||
Tier 1 Capital (to average assets) | $ | 302,848 | 10.17 | % | ≥ $ | 119,062 | ≥ 4.00 | % | ≥ $ | 148,827 | ≥ 5.00 | % | ||||||||
Common Equity Tier 1 (to risk-weighted assets) | $ | 302,848 | 14.34 | % | ≥ $ | 147,795 | ≥ 7.00 | % | ≥ $ | 137,239 | ≥ 6.50 | % | ||||||||
December 31, 2019 | ||||||||||||||||||||
Total Capital (to risk-weighted assets) | $ | 309,875 | 14.63 | % | ≥ $ | 222,437 | ≥ 10.50 | % | ≥ $ | 211,844 | ≥ 10.00 | % | ||||||||
Tier 1 Capital (to risk-weighted assets) | $ | 292,111 | 13.79 | % | ≥ $ | 180,068 | ≥ 8.50 | % | ≥ $ | 169,476 | ≥ 8.00 | % | ||||||||
Tier 1 Capital (to average assets) | $ | 292,111 | 11.29 | % | ≥ $ | 103,488 | ≥ 4.00 | % | ≥ $ | 129,360 | ≥ 5.00 | % | ||||||||
Common Equity Tier 1 (to risk-weighted assets) | $ | 292,111 | 13.79 | % | ≥ $ | 148,291 | ≥ 7.00 | % | ≥ $ | 137,699 | ≥ 6.50 | % |
Immediate Changes in Interest Rates (in basis points) | Estimated Change in Net Interest Income in Year 1, as percent of Net Interest Income | Estimated Change in Net Interest Income in Year 2, as percent of Net Interest Income | ||||||
up 400 | (3.4) | % | 4.2 | % | ||||
up 300 | (2.4) | % | 3.4 | % | ||||
up 200 | (1.7) | % | 1.8 | % | ||||
up 100 | (1.2) | % | (0.3) | % | ||||
down 100 | (0.5) | % | (0.9) | % | ||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Herewith | ||||||||||||||
3.01 | 10-Q | 001-33572 | 3.01 | November 7, 2007 | ||||||||||||||||
3.02 | 10-Q | 001-33572 | 3.02 | May 9, 2011 | ||||||||||||||||
3.02a | 8-K | 001-33572 | 3.03 | July 6, 2015 | ||||||||||||||||
4.01 | 8-A12B | 001-33572 | 4.1 | July 7, 2017 | ||||||||||||||||
4.02 | 10-K | 001-33572 | 4.02 | March 13, 2020 | ||||||||||||||||
10.01 | S-8 | 333-218274 | 4.1 | May 26, 2017 | ||||||||||||||||
10.02 | S-8 | 333-221219 | 4.1 | October 30, 2017 | ||||||||||||||||
10.03 | S-8 | 333-227840 | 4.1 | October 15, 2018 | ||||||||||||||||
10.04 | S-8 | 333-239555 | 4.1 | June 30, 2020 | ||||||||||||||||
10.05 | 10-Q | 001-33572 | 10.06 | November 7, 2007 | ||||||||||||||||
10.06 | 8-K | 001-33572 | 10.1 | January 26, 2009 | ||||||||||||||||
10.07 | 8-K | 001-33572 | 99.1 | October 21, 2010 | ||||||||||||||||
10.08 | 8-K | 001-33572 | 10.1 | January 6, 2011 | ||||||||||||||||
10.09 | 8-K | 001-33572 | 10.2 | November 4, 2014 | ||||||||||||||||
10.10 | 8-K | 001-33572 | 10.3 | November 4, 2014 | ||||||||||||||||
10.11 | 8-K | 001-33572 | 10.1 | October 31, 2007 | ||||||||||||||||
10.12 | Filed to correct previously incorrect hyperlink | |||||||||||||||||||
31.01 | Filed | |||||||||||||||||||
31.02 | Filed | |||||||||||||||||||
32.01 | Filed | |||||||||||||||||||
101.INS | Inline XBRL Instance Document | Filed | ||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | Filed | ||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Filed | ||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | Filed | ||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | Filed | ||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Filed |
Bank of Marin Bancorp | |||||||||||
(registrant) | |||||||||||
November 6, 2020 | /s/ Russell A. Colombo | ||||||||||
Date | Russell A. Colombo | ||||||||||
President & | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
November 6, 2020 | /s/ Tani Girton | ||||||||||
Date |
Tani Girton
|
||||||||||
Executive Vice President & | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) | |||||||||||
November 6, 2020 | /s/ David A. Merck | ||||||||||
Date | David A. Merck | ||||||||||
Vice President & | |||||||||||
Financial Reporting Manager | |||||||||||
(Principal Accounting Officer) |
November 6, 2020 | /s/ Russell A. Colombo | |||||||
Date | Russell A. Colombo | |||||||
President & | ||||||||
Chief Executive Officer |
November 6, 2020 |
/s/ Tani Girton
|
|||||||
Date |
Tani Girton
|
|||||||
Executive Vice President & | ||||||||
Chief Financial Officer |
November 6, 2020 | /s/ Russell A. Colombo | |||||||
Date | Russell A. Colombo | |||||||
President & | ||||||||
Chief Executive Officer |
November 6, 2020 | /s/ Tani Girton | |||||||
Date |
Tani Girton
|
|||||||
Executive Vice President & | ||||||||
Chief Financial Officer |
Bank of Marin | ||
504 Redwood Boulevard,
Suite 100
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Novato, CA 94947 |