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
March 31, 2021 and December 31, 2020
|
(in thousands, except share data; unaudited) | March 31, 2021 | December 31, 2020 | ||||||
Assets | ||||||||
Cash, cash equivalents and restricted cash | $ | 142,819 | $ | 200,320 | ||||
Investment securities: | ||||||||
Held-to-maturity, at amortized cost (net of zero allowance for credit losses at March 31, 2021 and December 31, 2020 )
|
151,970 | 109,036 | ||||||
Available-for-sale, at fair value (net of zero allowance for credit losses at March 31, 2021 and December 31, 2020 )
|
518,568 | 392,351 | ||||||
Total investment securities | 670,538 | 501,387 | ||||||
Loans, at amortized cost | 2,121,772 | 2,088,556 | ||||||
Allowance for credit losses | (19,958) | (22,874) | ||||||
Loans, net of allowance for credit losses
|
2,101,814 | 2,065,682 | ||||||
Bank premises and equipment, net | 4,604 | 4,919 | ||||||
Goodwill | 30,140 | 30,140 | ||||||
Core deposit intangible | 3,627 | 3,831 | ||||||
Operating lease right-of-use assets | 24,559 | 25,612 | ||||||
Interest receivable and other assets | 80,032 | 80,035 | ||||||
Total assets | $ | 3,058,133 | $ | 2,911,926 | ||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities | ||||||||
Deposits | ||||||||
Non-interest bearing | $ | 1,445,282 | $ | 1,354,650 | ||||
Interest bearing | ||||||||
Transaction accounts | 176,390 | 183,552 | ||||||
Savings accounts | 224,748 | 201,507 | ||||||
Money market accounts | 714,824 | 667,107 | ||||||
Time accounts | 94,955 | 97,433 | ||||||
Total deposits | 2,656,199 | 2,504,249 | ||||||
Borrowings and other obligations | 30 | 58 | ||||||
Subordinated debenture | — | 2,777 | ||||||
Operating lease liabilities | 25,993 | 27,062 | ||||||
Interest payable and other liabilities | 25,619 | 19,527 | ||||||
Total liabilities | 2,707,841 | 2,553,673 | ||||||
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 - 13,326,509 and 13,500,453 at March 31, 2021 and December 31, 2020, respectively
|
118,386 | 125,905 | ||||||
Retained earnings | 225,600 | 219,747 | ||||||
Accumulated other comprehensive income, net of taxes | 6,306 | 12,601 | ||||||
Total stockholders' equity | 350,292 | 358,253 | ||||||
Total liabilities and stockholders' equity | $ | 3,058,133 | $ | 2,911,926 |
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
Three months ended | ||||||||||||||||||||
(in thousands, except per share amounts; unaudited) | March 31, 2021 | March 31, 2020 | ||||||||||||||||||
Interest income | ||||||||||||||||||||
Interest and fees on loans | $ | 20,661 | $ | 20,887 | ||||||||||||||||
Interest on investment securities | 3,129 | 4,165 | ||||||||||||||||||
Interest on federal funds sold and due from banks | 42 | 332 | ||||||||||||||||||
Total interest income | 23,832 | 25,384 | ||||||||||||||||||
Interest expense | ||||||||||||||||||||
Interest on interest-bearing transaction accounts | 39 | 66 | ||||||||||||||||||
Interest on savings accounts | 19 | 16 | ||||||||||||||||||
Interest on money market accounts | 286 | 971 | ||||||||||||||||||
Interest on time accounts | 96 | 161 | ||||||||||||||||||
Interest on borrowings and other obligations | — | 2 | ||||||||||||||||||
Interest on subordinated debenture | 1,361 | 49 | ||||||||||||||||||
Total interest expense | 1,801 | 1,265 | ||||||||||||||||||
Net interest income | 22,031 | 24,119 | ||||||||||||||||||
(Reversal of) provision for credit losses on loans | (2,929) | 2,200 | ||||||||||||||||||
Net interest income after (reversal of) provision for credit losses | 24,960 | 21,919 | ||||||||||||||||||
Non-interest income | ||||||||||||||||||||
Wealth Management and Trust Services | 488 | 504 | ||||||||||||||||||
Debit card interchange fees | 366 | 360 | ||||||||||||||||||
Service charges on deposit accounts | 281 | 451 | ||||||||||||||||||
Earnings on bank-owned life insurance, net | 257 | 275 | ||||||||||||||||||
Dividends on Federal Home Loan Bank stock | 149 | 208 | ||||||||||||||||||
Merchant interchange fees | 57 | 73 | ||||||||||||||||||
Gains on sale of investment securities, net | — | 800 | ||||||||||||||||||
Other income | 228 | 449 | ||||||||||||||||||
Total non-interest income | 1,826 | 3,120 | ||||||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and related benefits | 9,208 | 9,477 | ||||||||||||||||||
Occupancy and equipment | 1,751 | 1,663 | ||||||||||||||||||
Professional services | 863 | 544 | ||||||||||||||||||
Data processing | 819 | 786 | ||||||||||||||||||
Depreciation and amortization | 459 | 526 | ||||||||||||||||||
Information technology | 313 | 250 | ||||||||||||||||||
Amortization of core deposit intangible | 204 | 213 | ||||||||||||||||||
Federal Deposit Insurance Corporation insurance | 179 | 2 | ||||||||||||||||||
Directors' expense | 175 | 174 | ||||||||||||||||||
Charitable contributions | 31 | 167 | ||||||||||||||||||
(Reversal of) provision for credit losses on unfunded loan commitments | (590) | 102 | ||||||||||||||||||
Other expense | 1,410 | 1,565 | ||||||||||||||||||
Total non-interest expense | 14,822 | 15,469 | ||||||||||||||||||
Income before provision for income taxes | 11,964 | 9,570 | ||||||||||||||||||
Provision for income taxes | 3,017 | 2,342 | ||||||||||||||||||
Net income | $ | 8,947 | $ | 7,228 | ||||||||||||||||
Net income per common share: | ||||||||||||||||||||
Basic | $ | 0.67 | $ | 0.53 | ||||||||||||||||
Diluted | $ | 0.66 | $ | 0.53 | ||||||||||||||||
Weighted average shares: | ||||||||||||||||||||
Basic | 13,363 | 13,525 | ||||||||||||||||||
Diluted | 13,469 | 13,656 | ||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||
Net income | $ | 8,947 | $ | 7,228 | ||||||||||||||||
Other comprehensive (loss) income | ||||||||||||||||||||
Change in net unrealized gains on available-for-sale securities | (9,082) | 9,812 | ||||||||||||||||||
Reclassification adjustment for (gains) on available-for-sale securities included in net income | — | (800) | ||||||||||||||||||
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity | 143 | 110 | ||||||||||||||||||
Other comprehensive (loss) income, before tax | (8,939) | 9,122 | ||||||||||||||||||
Deferred tax (benefit) expense | (2,644) | 2,697 | ||||||||||||||||||
Other comprehensive (loss) income, net of tax | (6,295) | 6,425 | ||||||||||||||||||
Total comprehensive income | $ | 2,652 | $ | 13,653 |
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY |
||
For the three months ended March 31, 2021 and 2020 |
(in thousands, except share data; unaudited) | Common Stock |
Retained
Earnings |
Accumulated Other
Comprehensive Income, Net of Taxes |
Total | |||||||||||||
Shares | Amount | ||||||||||||||||
Three months ended March 31, 2021 | |||||||||||||||||
Balance at January 1, 2021 | 13,500,453 | $ | 125,905 | $ | 219,747 | $ | 12,601 | $ | 358,253 | ||||||||
Net income | — | — | 8,947 | — | 8,947 | ||||||||||||
Other comprehensive loss | — | — | — | (6,295) | (6,295) | ||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 17,180 | 38 | — | — | 38 | ||||||||||||
Stock issued under employee stock purchase plan | 778 | 28 | — | — | 28 | ||||||||||||
Stock issued under employee stock ownership plan | 9,000 | 332 | — | — | 332 | ||||||||||||
Restricted stock granted | 27,054 | — | — | — | — | ||||||||||||
Restricted stock surrendered for tax withholdings upon vesting | (3,961) | (156) | — | — | (156) | ||||||||||||
Restricted stock forfeited / cancelled | (3,848) | — | — | — | — | ||||||||||||
Stock-based compensation - stock options | — | 172 | — | — | 172 | ||||||||||||
Stock-based compensation - restricted stock | — | 443 | — | — | 443 | ||||||||||||
Cash dividends paid on common stock ($0.23 per share)
|
— | — | (3,094) | — | (3,094) | ||||||||||||
Stock purchased by directors under director stock plan | 519 | 18 | — | — | 18 | ||||||||||||
Stock issued in payment of director fees | 3,347 | 117 | — | — | 117 | ||||||||||||
Stock repurchased, net of commissions | (224,013) | (8,511) | — | — | (8,511) | ||||||||||||
Balance at March 31, 2021 | 13,326,509 | $ | 118,386 | $ | 225,600 | $ | 6,306 | $ | 350,292 | ||||||||
Three months ended March 31, 2020 | |||||||||||||||||
Balance at January 1, 2020 | 13,577,008 | $ | 129,058 | $ | 203,227 | $ | 4,503 | $ | 336,788 | ||||||||
Net income | — | — | 7,228 | — | 7,228 | ||||||||||||
Other comprehensive income | — | — | — | 6,425 | 6,425 | ||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | 49,055 | 824 | — | — | 824 | ||||||||||||
Stock issued under employee stock purchase plan | 547 | 16 | — | — | 16 | ||||||||||||
Stock issued under employee stock ownership plan | 7,900 | 324 | — | — | 324 | ||||||||||||
Restricted stock granted | 29,100 | — | — | — | — | ||||||||||||
Restricted stock surrendered for tax withholdings upon vesting | (2,200) | (73) | — | — | (73) | ||||||||||||
Restricted stock forfeited / cancelled | (5,787) | — | — | — | — | ||||||||||||
Stock-based compensation - stock options | — | 169 | — | — | 169 | ||||||||||||
Stock-based compensation - restricted stock | — | 461 | — | — | 461 | ||||||||||||
Cash dividends paid on common stock ($0.23 per share)
|
— | — | (3,127) | — | (3,127) | ||||||||||||
Stock purchased by directors under director stock plan | 400 | 18 | — | — | 18 | ||||||||||||
Stock issued in payment of director fees | 2,610 | 117 | — | — | 117 | ||||||||||||
Stock repurchased, net of commissions | (92,664) | (3,230) | — | — | (3,230) | ||||||||||||
Balance at March 31, 2020 | 13,565,969 | $ | 127,684 | $ | 207,328 | $ | 10,928 | $ | 345,940 |
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||
For the three months ended March 31, 2021 and 2020 |
(in thousands; unaudited) | March 31, 2021 | March 31, 2020 | |||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | 8,947 | $ | 7,228 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
(Reversal of) provision for credit losses on loans | (2,929) | 2,200 | |||||||||
(Reversal of) provision for credit losses on unfunded loan commitments | (590) | 102 | |||||||||
Noncash contribution expense to employee stock ownership plan | 332 | 324 | |||||||||
Noncash director compensation expense | 162 | 75 | |||||||||
Stock-based compensation expense | 615 | 630 | |||||||||
Amortization of core deposit intangible | 204 | 213 | |||||||||
Amortization of investment security premiums, net of accretion of discounts | 685 | (93) | |||||||||
Accretion of (discounts) premiums on acquired loans | (33) | 11 | |||||||||
Accretion of discount on subordinated debenture | 1,347 | 17 | |||||||||
Net change in deferred loan origination costs/fees | 2,658 | (225) | |||||||||
Gain on sale of investment securities | — | (800) | |||||||||
Depreciation and amortization | 459 | 526 | |||||||||
Earnings on bank-owned life insurance policies | (257) | (275) | |||||||||
Net changes in: | |||||||||||
Interest receivable and other assets | 2,901 | 293 | |||||||||
Interest payable and other liabilities | (2,065) | (701) | |||||||||
Total adjustments | 3,489 | 2,297 | |||||||||
Net cash provided by operating activities | 12,436 | 9,525 | |||||||||
Cash Flows from Investing Activities: | |||||||||||
Purchase of held-to-maturity securities | (41,607) | — | |||||||||
Purchase of available-for-sale securities | (151,828) | (54,902) | |||||||||
Proceeds from sale of available-for-sale securities | — | 27,442 | |||||||||
Proceeds from paydowns/maturities of held-to-maturity securities | 8,600 | 6,217 | |||||||||
Proceeds from paydowns/maturities of available-for-sale securities | 16,060 | 20,924 | |||||||||
Loans originated and principal collected, net | (36,543) | 1,117 | |||||||||
Purchase of bank-owned life insurance policies | — | (941) | |||||||||
Purchase of premises and equipment | (144) | (146) | |||||||||
Cash paid for low income housing tax credit investment | (313) | (1,251) | |||||||||
Net cash used in investing activities | (205,775) | (1,540) | |||||||||
Cash Flows from Financing Activities: | |||||||||||
Net increase (decrease) in deposits | 151,950 | (29,379) | |||||||||
Proceeds from stock options exercised | 38 | 824 | |||||||||
Payment of tax withholdings for vesting of restricted stock | (156) | (73) | |||||||||
Proceeds from stock issued under employee and director stock purchase plans | 46 | 34 | |||||||||
Stock repurchased, net of commissions | (8,792) | (3,333) | |||||||||
Repayment of subordinated debenture including execution costs | (4,126) | — | |||||||||
Repayment of finance lease obligations | (28) | (45) | |||||||||
Cash dividends paid on common stock | (3,094) | (3,127) | |||||||||
Net cash provided by (used in) financing activities | 135,838 | (35,099) | |||||||||
Net decrease in cash, cash equivalents and restricted cash | (57,501) | (27,114) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 200,320 | 183,388 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 142,819 | $ | 156,274 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid in interest | $ | 492 | $ | 1,260 | |||||||
Cash paid in income taxes | $ | — | $ | — | |||||||
Supplemental disclosure of noncash investing and financing activities: | |||||||||||
Change in net unrealized gain or loss on available-for-sale securities | $ | (9,082) | $ | 9,812 | |||||||
Amortization of net unrealized loss on available-for-sale securities transferred to held-to-maturity | $ | 143 | $ | 110 | |||||||
Purchase of investment security not yet settled | $ | 10,000 | $ | — | |||||||
Stock issued to employee stock ownership plan | $ | 332 | $ | 324 | |||||||
Stock issued in payment of director fees | $ | 117 | $ | 117 | |||||||
Repurchase of stock not yet settled | $ | 132 | $ | — | |||||||
Restricted cash1
|
$ | — | $ | — | |||||||
Three months ended | |||||||||||||||||
(in thousands, except per share data) | March 31, 2021 | March 31, 2020 | |||||||||||||||
Weighted average basic common shares outstanding | 13,363 | 13,525 | |||||||||||||||
Potentially dilutive common shares related to: | |||||||||||||||||
Stock options | 81 | 106 | |||||||||||||||
Unvested restricted stock awards | 25 | 25 | |||||||||||||||
Weighted average diluted shares outstanding | 13,469 | 13,656 | |||||||||||||||
Net income | $ | 8,947 | $ | 7,228 | |||||||||||||
Basic EPS | $ | 0.67 | $ | 0.53 | |||||||||||||
Diluted EPS | $ | 0.66 | $ | 0.53 | |||||||||||||
Weighted average anti-dilutive common shares not included in the calculation of diluted EPS | 80 | 70 |
(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
|
||||||||||||
March 31, 2021 | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 287,323 | $ | — | $ | 287,323 | $ | — | OCI | ||||||||
SBA-backed securities | 29,218 | — | 29,218 | — | OCI | ||||||||||||
Debentures of government sponsored agencies | 74,473 | — | 74,473 | — | OCI | ||||||||||||
Obligations of state and political subdivisions | 121,765 | — | 121,765 | — | OCI | ||||||||||||
Corporate bonds | 5,789 | — | 5,789 | — | OCI | ||||||||||||
Derivative financial liabilities (interest rate contracts) | 1,193 | — | 1,193 | — | NI | ||||||||||||
December 31, 2020 | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 228,651 | $ | — | $ | 228,651 | $ | — | OCI | ||||||||
SBA-backed securities | 32,862 | — | 36,286 | — | OCI | ||||||||||||
Debentures of government sponsored agencies | 20,186 | — | 20,186 | — | OCI | ||||||||||||
Obligations of state and political subdivisions | 110,652 | — | 110,652 | — | OCI | ||||||||||||
Derivative financial liabilities (interest rate contracts) | 1,912 | — | 1,912 | — | NI |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
(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 | $ | 142,819 | $ | 142,819 | Level 1 | $ | 200,320 | $ | 200,320 | Level 1 | |||||||||||||
Investment securities held-to-maturity | 151,970 | 156,756 | Level 2 | 109,036 | 115,185 | Level 2 | |||||||||||||||||
Loans, net | 2,101,814 | 2,114,691 | Level 3 | 2,065,682 | 2,089,192 | Level 3 | |||||||||||||||||
Interest receivable | 10,589 | 10,589 | Level 2 | 10,922 | 10,922 | Level 2 | |||||||||||||||||
Financial liabilities (recorded at amortized cost) | |||||||||||||||||||||||
Time deposits | 94,955 | 95,241 | Level 2 | 97,433 | 97,769 | Level 2 | |||||||||||||||||
Subordinated debenture | — | — | Level 3 | 2,777 | 3,115 | Level 3 | |||||||||||||||||
Interest payable | 59 | 59 | Level 2 | 97 | 97 | Level 2 |
(in thousands) | Obligations of state and political subdivisions | ||||||||||||||||
AA | $ | 377 | |||||||||||||||
A | 205 | ||||||||||||||||
Total | $ | 582 |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
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 | $ | 246 | $ | 248 | $ | 15,013 | $ | 15,219 | $ | 246 | $ | 250 | $ | 11,530 | $ | 11,687 | |||||||||||||||||||
After one but within five years | 8,847 | 9,284 | 55,101 | 57,955 | 7,550 | 7,961 | 59,028 | 62,397 | |||||||||||||||||||||||||||
After five years through ten years | 62,415 | 65,241 | 193,424 | 198,301 | 52,113 | 55,872 | 144,908 | 154,089 | |||||||||||||||||||||||||||
After ten years | 80,462 | 81,983 | 244,799 | 247,093 | 49,127 | 51,102 | 157,572 | 164,178 | |||||||||||||||||||||||||||
Total | $ | 151,970 | $ | 156,756 | $ | 508,337 | $ | 518,568 | $ | 109,036 | $ | 115,185 | $ | 373,038 | $ | 392,351 |
Three months ended | |||||||||||||||||
(in thousands) | March 31, 2021 | March 31, 2020 | |||||||||||||||
Available-for-sale: | |||||||||||||||||
Sales proceeds | $ | — | $ | 27,442 | |||||||||||||
Gross realized gains | — | 800 | |||||||||||||||
(in thousands) | March 31, 2021 | December 31, 2020 | ||||||
Pledged to the State of California: | ||||||||
Secure public deposits in compliance with the Local Agency Security Program | $ | 123,085 | $ | 131,051 | ||||
Collateral for trust deposits | 735 | 751 | ||||||
Total investment securities pledged to the State of California | 123,820 | 131,802 | ||||||
Collateral for Wealth Management and Trust Services checking account | 614 | 629 | ||||||
Total pledged investment securities | $ | 124,434 | $ | 132,431 |
March 31, 2021 | < 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: | ||||||||||||||||||||||||||
CMOs issued by FHLMC | $ | 4,235 | $ | (189) | $ | — | $ | — | $ | 4,235 | $ | (189) | ||||||||||||||
Total held-to-maturity | 4,235 | (189) | — | — | 4,235 | (189) | ||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC and FNMA | 10,013 | (56) | — | — | 10,013 | (56) | ||||||||||||||||||||
SBA-backed securities | — | — | 1,699 | (53) | 1,699 | (53) | ||||||||||||||||||||
CMOs issued by FNMA | 7,304 | (31) | — | — | 7,304 | (31) | ||||||||||||||||||||
CMOs issued by FHLMC | 32,658 | (948) | — | — | 32,658 | (948) | ||||||||||||||||||||
Debentures of government- sponsored agencies | 53,289 | (2,041) | — | — | 53,289 | (2,041) | ||||||||||||||||||||
Obligations of state and political subdivisions | 28,529 | (195) | — | — | 28,529 | (195) | ||||||||||||||||||||
Corporate bonds | 5,789 | (197) | — | — | 5,789 | (197) | ||||||||||||||||||||
Total available-for-sale | 137,582 | (3,468) | 1,699 | (53) | 139,281 | (3,521) | ||||||||||||||||||||
Total temporarily impaired securities | $ | 141,817 | $ | (3,657) | $ | 1,699 | $ | (53) | $ | 143,516 | $ | (3,710) |
December 31, 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 | $ | — | $ | — | $ | 1,790 | $ | (55) | $ | 1,790 | $ | (55) | ||||||||||||||
CMOs issued by FHLMC | 5,975 | (1) | — | — | 5,975 | (1) | ||||||||||||||||||||
Debentures of government- sponsored agencies | 3,943 | (24) | — | — | 3,943 | (24) | ||||||||||||||||||||
Total available-for-sale | 9,918 | (25) | 1,790 | (55) | 11,708 | (80) | ||||||||||||||||||||
Total temporarily impaired securities | $ | 9,918 | $ | (25) | $ | 1,790 | $ | (55) | $ | 11,708 | $ | (80) |
(in thousands) | March 31, 2021 | December 31, 2020 | ||||||
Commercial and industrial | $ | 545,069 | $ | 498,408 | ||||
Real estate: | ||||||||
Commercial owner-occupied | 308,266 | 304,963 | ||||||
Commercial investor-owned | 955,021 | 961,208 | ||||||
Construction | 71,066 | 73,046 | ||||||
Home equity | 96,575 | 104,813 | ||||||
Other residential | 124,383 | 123,395 | ||||||
Installment and other consumer loans | 21,392 | 22,723 | ||||||
Total loans, at amortized cost 1
|
2,121,772 | 2,088,556 | ||||||
Allowance for credit losses on loans | (19,958) | (22,874) | ||||||
Total loans, net | $ | 2,101,814 | $ | 2,065,682 |
(in thousands) | Term Loans - Amortized Cost by Origination Year | Revolving Loans Amortized Cost | ||||||||||||||||||||||||
March 31, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | |||||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||||||||
Pass | $ | 116,598 | $ | 264,838 | $ | 21,201 | $ | 11,692 | $ | 4,111 | $ | 36,865 | $ | 76,742 | $ | 532,047 | ||||||||||
Special Mention | — | — | 812 | 598 | 115 | 8 | 8,954 | 10,487 | ||||||||||||||||||
Substandard | — | 1,649 | 390 | — | — | — | 496 | 2,535 | ||||||||||||||||||
Total commercial and industrial | $ | 116,598 | $ | 266,487 | $ | 22,403 | $ | 12,290 | $ | 4,226 | $ | 36,873 | $ | 86,192 | $ | 545,069 | ||||||||||
Commercial real estate, owner-occupied: | ||||||||||||||||||||||||||
Pass | $ | 10,035 | $ | 30,459 | $ | 27,147 | $ | 41,816 | $ | 41,962 | $ | 110,896 | $ | — | $ | 262,315 | ||||||||||
Special Mention | — | — | — | 2,363 | 17,076 | 12,863 | — | 32,302 | ||||||||||||||||||
Substandard | — | 7,147 | 297 | — | — | 6,205 | — | 13,649 | ||||||||||||||||||
Total commercial real estate, owner-occupied | $ | 10,035 | $ | 37,606 | $ | 27,444 | $ | 44,179 | $ | 59,038 | $ | 129,964 | $ | — | $ | 308,266 | ||||||||||
Commercial real estate, investor-owned: | ||||||||||||||||||||||||||
Pass | $ | 29,585 | $ | 161,213 | $ | 146,537 | $ | 170,153 | $ | 87,813 | $ | 336,840 | $ | 110 | $ | 932,251 | ||||||||||
Special Mention | — | — | 6,808 | — | 1,811 | 4,581 | — | 13,200 | ||||||||||||||||||
Substandard | — | — | 2,715 | 4,428 | — | 2,427 | — | 9,570 | ||||||||||||||||||
Total commercial real estate, investor-owned | $ | 29,585 | $ | 161,213 | $ | 156,060 | $ | 174,581 | $ | 89,624 | $ | 343,848 | $ | 110 | $ | 955,021 | ||||||||||
Construction: | ||||||||||||||||||||||||||
Pass | $ | 6,533 | $ | 29,510 | $ | 26,108 | $ | 8,915 | $ | — | $ | — | $ | — | $ | 71,066 | ||||||||||
Special Mention | — | — | — | — | — | — | — | — | ||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total construction | $ | 6,533 | $ | 29,510 | $ | 26,108 | $ | 8,915 | $ | — | $ | — | $ | — | $ | 71,066 | ||||||||||
Home equity: | ||||||||||||||||||||||||||
Pass | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 793 | $ | 95,115 | $ | 95,908 | ||||||||||
Special Mention | — | — | — | — | — | — | — | — | ||||||||||||||||||
Substandard | — | — | — | — | — | 388 | 279 | 667 | ||||||||||||||||||
Total home equity | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,181 | $ | 95,394 | $ | 96,575 | ||||||||||
Other residential: | ||||||||||||||||||||||||||
Pass | $ | 5,524 | $ | 33,498 | $ | 29,371 | $ | 23,363 | $ | 10,520 | $ | 22,107 | $ | — | $ | 124,383 | ||||||||||
Special Mention | — | — | — | — | — | — | — | — | ||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total other residential | $ | 5,524 | $ | 33,498 | $ | 29,371 | $ | 23,363 | $ | 10,520 | $ | 22,107 | $ | — | $ | 124,383 | ||||||||||
Installment and other consumer: | ||||||||||||||||||||||||||
Pass | $ | 1,757 | $ | 2,169 | $ | 3,334 | $ | 3,076 | $ | 1,260 | $ | 8,111 | $ | 1,685 | $ | 21,392 | ||||||||||
Special Mention | — | — | — | — | — | — | — | — | ||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total installment and other consumer | $ | 1,757 | $ | 2,169 | $ | 3,334 | $ | 3,076 | $ | 1,260 | $ | 8,111 | $ | 1,685 | $ | 21,392 |
(in thousands) | Term Loans - Amortized Cost by Origination Year | Revolving Loans Amortized Cost | ||||||||||||||||||||||||
March 31, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | |||||||||||||||||||
Total loans: | ||||||||||||||||||||||||||
Pass | $ | 170,032 | $ | 521,687 | $ | 253,698 | $ | 259,015 | $ | 145,666 | $ | 515,612 | $ | 173,652 | $ | 2,039,362 | ||||||||||
Total Special Mention | $ | — | $ | — | $ | 7,620 | $ | 2,961 | $ | 19,002 | $ | 17,452 | $ | 8,954 | $ | 55,989 | ||||||||||
Total Substandard | $ | — | $ | 8,796 | $ | 3,402 | $ | 4,428 | $ | — | $ | 9,020 | $ | 775 | $ | 26,421 | ||||||||||
Totals | $ | 170,032 | $ | 530,483 | $ | 264,720 | $ | 266,404 | $ | 164,668 | $ | 542,084 | $ | 183,381 | $ | 2,121,772 |
(in thousands) | Term Loans - Amortized Cost by Origination Year | Revolving Loans Amortized Cost | ||||||||||||||||||||||||
December 31, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||||||||
Pass | $ | 308,237 | $ | 22,589 | $ | 12,596 | $ | 4,508 | $ | 5,915 | $ | 34,282 | $ | 85,889 | $ | 474,016 | ||||||||||
Special Mention | — | 2,034 | 1,318 | 141 | 11 | 49 | 19,092 | 22,645 | ||||||||||||||||||
Substandard | 1,747 | — | — | — | — | — | — | 1,747 | ||||||||||||||||||
Total commercial and industrial | $ | 309,984 | $ | 24,623 | $ | 13,914 | $ | 4,649 | $ | 5,926 | $ | 34,331 | $ | 104,981 | $ | 498,408 | ||||||||||
Commercial real estate, owner-occupied: | ||||||||||||||||||||||||||
Pass | $ | 31,029 | $ | 27,581 | $ | 32,603 | $ | 43,843 | $ | 12,768 | $ | 101,014 | $ | — | $ | 248,838 | ||||||||||
Special Mention | — | — | 11,764 | 17,062 | 7,343 | 6,601 | — | 42,770 | ||||||||||||||||||
Substandard | 7,147 | — | — | — | 6,208 | — | — | 13,355 | ||||||||||||||||||
Total commercial real estate, owner-occupied | $ | 38,176 | $ | 27,581 | $ | 44,367 | $ | 60,905 | $ | 26,319 | $ | 107,615 | $ | — | $ | 304,963 | ||||||||||
Commercial real estate, investor-owned: | ||||||||||||||||||||||||||
Pass | $ | 162,300 | $ | 144,751 | $ | 173,955 | $ | 100,842 | $ | 94,862 | $ | 253,611 | $ | 117 | $ | 930,438 | ||||||||||
Special Mention | — | 10,695 | — | 1,819 | — | 8,124 | — | 20,638 | ||||||||||||||||||
Substandard | — | 2,716 | 4,435 | — | 1,553 | 1,428 | — | 10,132 | ||||||||||||||||||
Total commercial real estate, investor-owned | $ | 162,300 | $ | 158,162 | $ | 178,390 | $ | 102,661 | $ | 96,415 | $ | 263,163 | $ | 117 | $ | 961,208 | ||||||||||
Construction: | ||||||||||||||||||||||||||
Pass | $ | 31,654 | $ | 30,150 | $ | 11,242 | $ | — | $ | — | $ | — | $ | — | $ | 73,046 | ||||||||||
Special Mention | — | — | — | — | — | — | — | — | ||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total construction | $ | 31,654 | $ | 30,150 | $ | 11,242 | $ | — | $ | — | $ | — | $ | — | $ | 73,046 | ||||||||||
Home equity: | ||||||||||||||||||||||||||
Pass | $ | — | $ | — | $ | — | $ | — | $ | 128 | $ | 694 | $ | 102,614 | $ | 103,436 | ||||||||||
Special Mention | — | — | — | — | — | — | 799 | 799 | ||||||||||||||||||
Substandard | — | — | — | — | — | 391 | 187 | 578 | ||||||||||||||||||
Total home equity | $ | — | $ | — | $ | — | $ | — | $ | 128 | $ | 1,085 | $ | 103,600 | $ | 104,813 | ||||||||||
Other residential: | ||||||||||||||||||||||||||
Pass | $ | 34,447 | $ | 31,079 | $ | 23,673 | $ | 10,574 | $ | 6,035 | $ | 17,587 | $ | — | $ | 123,395 | ||||||||||
Special Mention | — | — | — | — | — | — | — | — | ||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total other residential | $ | 34,447 | $ | 31,079 | $ | 23,673 | $ | 10,574 | $ | 6,035 | $ | 17,587 | $ | — | $ | 123,395 | ||||||||||
Installment and other consumer: | ||||||||||||||||||||||||||
Pass | $ | 2,361 | $ | 4,382 | $ | 3,483 | $ | 1,543 | $ | 3,423 | $ | 4,921 | $ | 2,593 | $ | 22,706 | ||||||||||
Special Mention | — | — | — | — | — | — | — | — | ||||||||||||||||||
Substandard | — | — | — | 17 | — | — | — | 17 | ||||||||||||||||||
Total installment and other consumer | $ | 2,361 | $ | 4,382 | $ | 3,483 | $ | 1,560 | $ | 3,423 | $ | 4,921 | $ | 2,593 | $ | 22,723 | ||||||||||
Total loans: | ||||||||||||||||||||||||||
Pass | $ | 570,028 | $ | 260,532 | $ | 257,552 | $ | 161,310 | $ | 123,131 | $ | 412,109 | $ | 191,213 | $ | 1,975,875 | ||||||||||
Total Special Mention | $ | — | $ | 12,729 | $ | 13,082 | $ | 19,022 | $ | 7,354 | $ | 14,774 | $ | 19,891 | $ | 86,852 | ||||||||||
Total Substandard | $ | 8,894 | $ | 2,716 | $ | 4,435 | $ | 17 | $ | 7,761 | $ | 1,819 | $ | 187 | $ | 25,829 | ||||||||||
Totals | $ | 578,922 | $ | 275,977 | $ | 275,069 | $ | 180,349 | $ | 138,246 | $ | 428,702 | $ | 211,291 | $ | 2,088,556 |
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 | ||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||
30-59 days past due | $ | — | $ | — | $ | 791 | $ | — | $ | 120 | $ | — | $ | 136 | $ | 1,047 | ||||||||||
60-89 days past due | — | — | — | — | 96 | — | — | 96 | ||||||||||||||||||
90 days or more past due | — | — | 878 | — | — | — | — | 878 | ||||||||||||||||||
Total past due | — | — | 1,669 | — | 216 | — | 136 | 2,021 | ||||||||||||||||||
Current | 545,069 | 308,266 | 953,352 | 71,066 | 96,359 | 124,383 | 21,256 | 2,119,751 | ||||||||||||||||||
Total loans 1
|
$ | 545,069 | $ | 308,266 | $ | 955,021 | $ | 71,066 | $ | 96,575 | $ | 124,383 | $ | 21,392 | $ | 2,121,772 | ||||||||||
Non-accrual loans 2
|
$ | — | $ | 7,147 | $ | 1,603 | $ | — | $ | 455 | $ | — | $ | — | $ | 9,205 | ||||||||||
Non-accrual loans with no allowance | $ | — | $ | 7,147 | $ | 1,603 | $ | — | $ | 455 | $ | — | $ | — | $ | 9,205 | ||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
30-59 days past due | $ | — | $ | — | $ | 1,673 | $ | — | $ | 274 | $ | — | $ | 136 | $ | 2,083 | ||||||||||
60-89 days past due | — | — | — | — | — | — | 622 | 622 | ||||||||||||||||||
90 days or more past due | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total past due | — | — | 1,673 | — | 274 | — | 758 | 2,705 | ||||||||||||||||||
Current | 498,408 | 304,963 | 959,535 | 73,046 | 104,539 | 123,395 | 21,965 | 2,085,851 | ||||||||||||||||||
Total loans 1
|
$ | 498,408 | $ | 304,963 | $ | 961,208 | $ | 73,046 | $ | 104,813 | $ | 123,395 | $ | 22,723 | $ | 2,088,556 | ||||||||||
Non-accrual loans 2
|
$ | — | $ | 7,147 | $ | 1,610 | $ | — | $ | 459 | $ | — | $ | 17 | $ | 9,233 | ||||||||||
Non-accrual loans with no allowance | $ | — | $ | 7,147 | $ | 1,610 | $ | — | $ | 459 | $ | — | $ | 17 | $ | 9,233 |
Amortized Cost by Collateral Type | ||||||||||||||||||||
(in thousands) | Commercial Real Estate | Residential Real Estate | Other | Total | Allowance for Credit Losses | |||||||||||||||
March 31, 2021 | ||||||||||||||||||||
Commercial real estate, owner-occupied | $ | 7,147 | $ | — | $ | — | $ | 7,147 | $ | — | ||||||||||
Commercial real estate, investor-owned | 1,603 | — | — | 1,603 | — | |||||||||||||||
Home equity | — | 454 | — | 454 | — | |||||||||||||||
Total | $ | 8,750 | $ | 454 | $ | — | $ | 9,204 | $ | — | ||||||||||
December 31, 2020 | ||||||||||||||||||||
Commercial real estate, owner-occupied | $ | 7,147 | $ | — | $ | — | $ | 7,147 | $ | — | ||||||||||
Commercial real estate, investor-owned | 1,610 | — | — | 1,610 | — | |||||||||||||||
Home equity | — | 459 | — | 459 | — | |||||||||||||||
Installment and other consumer | — | — | 17 | 17 | — | |||||||||||||||
Total | $ | 8,757 | $ | 459 | $ | 17 | $ | 9,233 | $ | — |
(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 March 31, 2021: | ||||||||||||||
None | — | $ | — | $ | — | $ | — | |||||||
TDRs during the three months ended March 31, 2020: | ||||||||||||||
Commercial and industrial | 1 | $ | 170 | $ | 162 | $ | 144 | |||||||
Installment and other consumer | 2 | 103 | 103 | 103 | ||||||||||
Total | 3 | $ | 273 | $ | 265 | $ | 247 | |||||||
Allowance for Credit Losses Rollforward | |||||||||||||||||||||||||||||
(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 March 31, 2021 | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,530 | $ | 2,778 | $ | 12,682 | $ | 1,557 | $ | 738 | $ | 998 | $ | 291 | $ | 1,300 | $ | 22,874 | |||||||||||
Provision (reversal) - CECL | (880) | (474) | (1,826) | (254) | (218) | (241) | (36) | 1,000 | (2,929) | ||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 4 | — | — | 9 | — | — | — | — | 13 | ||||||||||||||||||||
Ending balance | $ | 1,654 | $ | 2,304 | $ | 10,856 | $ | 1,312 | $ | 520 | $ | 757 | $ | 255 | $ | 2,300 | $ | 19,958 | |||||||||||
Three months ended March 31, 2020 | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,334 | $ | 2,462 | $ | 8,483 | $ | 638 | $ | 850 | $ | 973 | $ | 284 | $ | 653 | $ | 16,677 | |||||||||||
Provision - incurred loss | 446 | 335 | 742 | 86 | 132 | 125 | 79 | 255 | 2,200 | ||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 4 | — | — | 3 | — | — | — | — | 7 | ||||||||||||||||||||
Ending balance | $ | 2,784 | $ | 2,797 | $ | 9,225 | $ | 727 | $ | 982 | $ | 1,098 | $ | 363 | $ | 908 | $ | 18,884 |
(in thousands) | March 31, 2021 | December 31, 2020 | ||||||
Commercial lines of credit | $ | 309,469 | $ | 287,533 | ||||
Revolving home equity lines | 199,332 | 189,035 | ||||||
Undisbursed construction loans | 89,605 | 41,033 | ||||||
Personal and other lines of credit | 10,431 | 9,567 | ||||||
Standby letters of credit | 1,917 | 1,964 | ||||||
Total commitments and standby letters of credit | $ | 610,754 | $ | 529,132 |
Three months ended | ||||||||
(in thousands) | March 31, 2021 | March 31, 2020 | ||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | — | $ | 12,178 | ||||
Right-of-use assets obtained in exchange for finance lease liabilities | $ | — | $ | 18 | ||||
(in thousands) | March 31, 2021 | |||||||
Year | Operating Leases | Finance Leases | ||||||
2021 | $ | 3,431 | $ | 13 | ||||
2022 | 4,424 | 14 | ||||||
2023 | 4,004 | 4 | ||||||
2024 | 3,300 | — | ||||||
2025 | 2,876 | — | ||||||
Thereafter | 9,867 | — | ||||||
Total minimum lease payments | 27,902 | 31 | ||||||
Amounts representing interest (present value discount) | (1,909) | (1) | ||||||
Present value of net minimum lease payments (lease liability) | $ | 25,993 | $ | 30 | ||||
Weighted average remaining term (in years) | 7.6 | 2.0 | ||||||
Weighted average discount rate | 1.79 | % | 1.93 | % |
Asset Derivatives | Liability Derivatives | ||||||||||||||||
(in thousands) |
March 31,
2021 |
December 31, 2020 |
March 31,
2021 |
December 31, 2020 | |||||||||||||
Fair value hedges: | |||||||||||||||||
Interest rate contracts notional amount | $ | — | $ | — | $ | 13,754 | $ | 13,991 | |||||||||
Interest rate contracts fair value1
|
$ | — | $ | — | $ | 1,193 | $ | 1,912 |
Carrying Amounts of Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Loans | ||||||||||||||||
(in thousands) | March 31, 2021 | December 31, 2020 | March 31, 2021 | December 31, 2020 | |||||||||||||
Loans | $ | 14,793 | $ | 15,745 | $ | 1,039 | $ | 1,753 |
Three months ended | ||||||||||||||
(in thousands) | March 31, 2021 | March 31, 2020 | ||||||||||||
Interest and fees on loans 1
|
$ | 20,661 | $ | 20,887 | ||||||||||
Increase (decrease) in fair value of designated interest rate swaps due to LIBOR interest rate movements | $ | 719 | $ | (1,440) | ||||||||||
Payment on interest rate swaps | (93) | (67) | ||||||||||||
(Decrease) increase in value of hedged loans | (714) | 1,470 | ||||||||||||
Decrease in value of yield maintenance agreement | (3) | (3) | ||||||||||||
Net losses on fair value hedging relationships recognized in interest income | $ | (91) | $ | (40) |
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 | ||||||||||||||
March 31, 2021 | ||||||||||||||||||||
Derivatives by Counterparty: | ||||||||||||||||||||
Counterparty A | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
December 31, 2020 | ||||||||||||||||||||
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 | ||||||||||||||
March 31, 2021 | ||||||||||||||||||||
Derivatives by Counterparty: | ||||||||||||||||||||
Counterparty A | $ | 1,193 | $ | — | $ | 1,193 | $ | — | $ | (1,193) | $ | — | ||||||||
December 31, 2020 | ||||||||||||||||||||
Derivatives by Counterparty: | ||||||||||||||||||||
Counterparty A | $ | 1,912 | $ | — | $ | 1,912 | $ | — | $ | (1,912) | $ | — | ||||||||
Payment Relief by Type | ||||||||
Industry/Collateral Type (dollars in thousands)
|
Outstanding Loan Balance | Weighted Average LTV | ||||||
Education | $ | 17,076 | 26 | % | ||||
Health Clubs | 13,352 | 49 | % | |||||
Office and Mixed Use | 13,794 | 42 | % | |||||
Hospitality | 7,135 | 48 | % | |||||
Retail Related CRE | 4,760 | 58 | % | |||||
Payment Relief Totals | $ | 56,117 | 41 | % |
(dollars in thousands) | March 31, 2021 | December 31, 2020 | ||||||
Selected financial condition data: | ||||||||
Total assets | $ | 3,058,133 | $ | 2,911,926 | ||||
Loans, net | 2,101,814 | 2,065,682 | ||||||
Deposits | 2,656,199 | 2,504,249 | ||||||
Borrowings and other obligations | 30 | 58 | ||||||
Subordinated debenture | — | 2,777 | ||||||
Stockholders' equity | 350,292 | 358,253 | ||||||
Asset quality ratios: | ||||||||
Allowance for credit losses to total loans | 0.94 | % | 1.10 | % | ||||
Allowance for credit losses to total loans, excluding SBA PPP loans 1
|
1.14 | % | 1.27 | % | ||||
Allowance for credit losses to non-accrual loans | 2.17x | 2.48x | ||||||
Non-accrual loans to total loans | 0.43 | % | 0.44 | % | ||||
Capital ratios: | ||||||||
Equity to total assets ratio | 11.45 | % | 12.30 | % | ||||
Tangible common equity to tangible assets 2
|
10.47 | % | 11.27 | % | ||||
Total capital (to risk-weighted assets) | 15.68 | % | 16.03 | % | ||||
Tier 1 capital (to risk-weighted assets) | 14.63 | % | 14.82 | % | ||||
Tier 1 capital (to average assets) | 10.51 | % | 10.80 | % | ||||
Common equity Tier 1 capital (to risk weighted assets) | 14.63 | % | 14.69 | % |
Three months ended | |||||||||||||||||
(dollars in thousands, except per share data) | March 31, 2021 | March 31, 2020 | |||||||||||||||
Selected operating data: | |||||||||||||||||
Net interest income | $ | 22,031 | $ | 24,119 | |||||||||||||
(Reversal of) provision for credit losses on loans | (2,929) | 2,200 | |||||||||||||||
Non-interest income | 1,826 | 3,120 | |||||||||||||||
Non-interest expense | 14,822 | 15,469 | |||||||||||||||
Net income | 8,947 | 7,228 | |||||||||||||||
Net income per common share: | |||||||||||||||||
Basic | $ | 0.67 | $ | 0.53 | |||||||||||||
Diluted | $ | 0.66 | $ | 0.53 | |||||||||||||
Performance and other financial ratios: | |||||||||||||||||
Return on average assets | 1.21 | % | 1.09 | % | |||||||||||||
Return on average equity | 10.22 | % | 8.54 | % | |||||||||||||
Tax-equivalent net interest margin 3
|
3.19 | % | 3.88 | % | |||||||||||||
Cost of deposits | 0.07 | % | 0.21 | % | |||||||||||||
Efficiency ratio | 62.13 | % | 56.79 | % | |||||||||||||
Cash dividend payout ratio on common stock 4
|
34.33 | % | 43.40 | % |
Three months ended | Three months ended | |||||||||||||||||||||||||
March 31, 2021 | March 31, 2020 | |||||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||||
(dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Interest-earning deposits with banks 1
|
$ | 165,788 | $ | 42 | 0.10 | % | $ | 99,362 | $ | 332 | 1.32 | % | ||||||||||||||
Investment securities 2, 3
|
540,970 | 3,282 | 2.43 | % | 556,897 | 4,266 | 3.06 | % | ||||||||||||||||||
Loans 1, 3, 4
|
2,099,847 | 20,836 | 3.97 | % | 1,833,180 | 21,066 | 4.55 | % | ||||||||||||||||||
Total interest-earning assets 1
|
2,806,605 | 24,160 | 3.44 | % | 2,489,439 | 25,664 | 4.08 | % | ||||||||||||||||||
Cash and non-interest-bearing due from banks | 50,931 | 40,844 | ||||||||||||||||||||||||
Bank premises and equipment, net | 4,777 | 5,939 | ||||||||||||||||||||||||
Interest receivable and other assets, net | 133,693 | 118,909 | ||||||||||||||||||||||||
Total assets | $ | 2,996,006 | $ | 2,655,131 | ||||||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 174,135 | $ | 39 | 0.09 | % | $ | 138,395 | $ | 66 | 0.19 | % | ||||||||||||||
Savings accounts | 214,049 | 19 | 0.04 | % | 163,439 | 16 | 0.04 | % | ||||||||||||||||||
Money market accounts | 703,577 | 286 | 0.16 | % | 760,616 | 971 | 0.51 | % | ||||||||||||||||||
Time accounts including CDARS | 96,349 | 96 | 0.40 | % | 96,157 | 161 | 0.67 | % | ||||||||||||||||||
Borrowings and other obligations 1
|
36 | — | 1.99 | % | 358 | 2 | 1.81 | % | ||||||||||||||||||
Subordinated debenture 1, 5
|
2,164 | 1,361 | 251.54 | % |
|
2,715 | 49 | 7.19 | % | |||||||||||||||||
Total interest-bearing liabilities | 1,190,310 | 1,801 | 0.61 | % | 1,161,680 | 1,265 | 0.44 | % | ||||||||||||||||||
Demand accounts | 1,406,123 | 1,119,975 | ||||||||||||||||||||||||
Interest payable and other liabilities | 44,551 | 33,045 | ||||||||||||||||||||||||
Stockholders' equity | 355,022 | 340,431 | ||||||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 2,996,006 | $ | 2,655,131 | ||||||||||||||||||||||
Tax-equivalent net interest income/margin 1
|
$ | 22,359 | 3.19 | % | $ | 24,399 | 3.88 | % | ||||||||||||||||||
Reported net interest income/margin 1
|
$ | 22,031 | 3.14 | % | $ | 24,119 | 3.83 | % | ||||||||||||||||||
Tax-equivalent net interest rate spread | 2.83 | % | 3.64 | % |
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.
|
|||||||||||||||||||||||||||||||||||
5 First quarter 2021 interest expense includes $1.3 million accelerated discount accretion from the early redemption of our last subordinated debenture on March 15, 2021.
|
Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||
(in thousands) | Volume | Yield/Rate | Mix | Total | ||||||||||||||||||||||
Interest-earning deposits with banks | $ | 222 | $ | (307) | $ | (205) | $ | (290) | ||||||||||||||||||
Investment securities 1
|
(122) | (887) | 25 | (984) | ||||||||||||||||||||||
Loans 1
|
3,064 | (2,674) | (620) | (230) | ||||||||||||||||||||||
Total interest-earning assets | 3,164 | (3,868) | (800) | (1,504) | ||||||||||||||||||||||
Interest-bearing transaction accounts | 17 | (35) | (9) | (27) | ||||||||||||||||||||||
Savings accounts | 5 | (2) | — | 3 | ||||||||||||||||||||||
Money market accounts | (73) | (658) | 46 | (685) | ||||||||||||||||||||||
Time accounts, including CDARS | — | (64) | (1) | (65) | ||||||||||||||||||||||
Borrowings and other obligations | (2) | — | — | (2) | ||||||||||||||||||||||
Subordinated debenture | (10) | 1,677 | (355) | 1,312 | ||||||||||||||||||||||
Total interest-bearing liabilities | (63) | 918 | (319) | 536 | ||||||||||||||||||||||
Changes in tax-equivalent net interest income | $ | 3,227 | $ | (4,786) | $ | (481) | $ | (2,040) | ||||||||||||||||||
1 Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the federal statutory rate of 21%.
|
Three months ended | Amount | Percent | ||||||||||||||||||
(dollars in thousands) | March 31, 2021 | March 31, 2020 | Increase (Decrease) | Increase (Decrease) | ||||||||||||||||
Wealth Management and Trust Services | $ | 488 | $ | 504 | $ | (16) | (3.2) | % | ||||||||||||
Debit card interchange fees | 366 | 360 | 6 | 1.7 | % | |||||||||||||||
Service charges on deposit accounts | 281 | 451 | (170) | (37.7) | % | |||||||||||||||
Earnings on bank-owned life insurance, net | 257 | 275 | (18) | (6.5) | % | |||||||||||||||
Dividends on FHLB stock | 149 | 208 | (59) | (28.4) | % | |||||||||||||||
Merchant interchange fees | 57 | 73 | (16) | (21.9) | % | |||||||||||||||
Gains on sale of investment securities, net | — | 800 | (800) | (100.0) | % | |||||||||||||||
Other income | 228 | 449 | (221) | (49.2) | % | |||||||||||||||
Total non-interest income | $ | 1,826 | $ | 3,120 | $ | (1,294) | (41.5) | % | ||||||||||||
Three months ended | Amount | Percent | |||||||||||||||||||||
(dollars in thousands) | March 31, 2021 | March 31, 2020 | Increase (Decrease) | Increase (Decrease) | |||||||||||||||||||
Salaries and related benefits | $ | 9,208 | $ | 9,477 | $ | (269) | (2.8) | % | |||||||||||||||
Occupancy and equipment | 1,751 | 1,663 | 88 | 5.3 | % | ||||||||||||||||||
Professional services | 863 | 544 | 319 | 58.6 | % | ||||||||||||||||||
Data processing | 819 | 786 | 33 | 4.2 | % | ||||||||||||||||||
Depreciation and amortization | 459 | 526 | (67) | (12.7) | % | ||||||||||||||||||
Information technology | 313 | 250 | 63 | 25.2 | % | ||||||||||||||||||
Amortization of core deposit intangible | 204 | 213 | (9) | (4.2) | % | ||||||||||||||||||
Federal Deposit Insurance Corporation insurance | 179 | 2 | 177 | 8,850.0 | % | ||||||||||||||||||
Directors' expense | 175 | 174 | 1 | 0.6 | % | ||||||||||||||||||
Charitable contributions | 31 | 167 | (136) | (81.4) | % | ||||||||||||||||||
(Reversal of) provision for credit losses on unfunded loan commitments | (590) | 102 | (692) | (678.4) | % | ||||||||||||||||||
Other non-interest expense | |||||||||||||||||||||||
Advertising | 239 | 251 | (12) | (4.8) | % | ||||||||||||||||||
Other expense | 1,171 | 1,314 | (143) | (10.9) | % | ||||||||||||||||||
Total other non-interest expense | 1,410 | 1,565 | (155) | (9.9) | % | ||||||||||||||||||
Total non-interest expense | $ | 14,822 | $ | 15,469 | $ | (647) | (4.2) | % | |||||||||||||||
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(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 | $ | 3,321 | $ | 3,503 | 2.8 | % | $ | 3,327 | $ | 3,565 | 3.1 | % | ||||||||||||||
Revenue bonds | 2,296 | 2,377 | 1.9 | 2,352 | 2,448 | 2.2 | ||||||||||||||||||||
Tax allocation bonds | 1,748 | 1,779 | 1.5 | 2,832 | 2,876 | 2.7 | ||||||||||||||||||||
Total within California | 7,365 | 7,659 | 6.2 | 8,511 | 8,889 | 8.0 | ||||||||||||||||||||
Outside California: | ||||||||||||||||||||||||||
General obligation bonds | 91,611 | 93,957 | 77.2 | 78,299 | 82,100 | 73.5 | ||||||||||||||||||||
Revenue bonds | 19,724 | 20,744 | 16.6 | 19,744 | 21,351 | 18.5 | ||||||||||||||||||||
Total outside California | 111,335 | 114,701 | 93.8 | 98,043 | 103,451 | 92.0 | ||||||||||||||||||||
Total obligations of state and political subdivisions | $ | 118,700 | $ | 122,360 | 100.0 | % | $ | 106,554 | $ | 112,340 | 100.0 | % |
Capital Ratios for Bancorp
(dollars in thousands)
|
Actual Ratio | Adequately Capitalized Threshold | Ratio to be a Well Capitalized Bank Holding Company | |||||||||||||||||
March 31, 2021 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
Total Capital (to risk-weighted assets) | $ | 331,739 | 15.68 | % | ≥ $ | 222,195 | ≥ 10.50 | % | ≥ $ | 211,614 | ≥ 10.00 | % | ||||||||
Tier 1 Capital (to risk-weighted assets) | $ | 309,592 | 14.63 | % | ≥ $ | 179,872 | ≥ 8.50 | % | ≥ $ | 169,291 | ≥ 8.00 | % | ||||||||
Tier 1 Capital (to average assets) | $ | 309,592 | 10.51 | % | ≥ $ | 117,794 | ≥ 4.00 | % | ≥ $ | 147,242 | ≥ 5.00 | % | ||||||||
Common Equity Tier 1 (to risk-weighted assets) | $ | 309,592 | 14.63 | % | ≥ $ | 148,130 | ≥ 7.00 | % | ≥ $ | 137,549 | ≥ 6.50 | % | ||||||||
December 31, 2020 | ||||||||||||||||||||
Total Capital (to risk-weighted assets) | $ | 339,544 | 16.03 | % | ≥ $ | 222,393 | ≥ 10.50 | % | ≥ $ | 211,802 | ≥ 10.00 | % | ||||||||
Tier 1 Capital (to risk-weighted assets) | $ | 313,891 | 14.82 | % | ≥ $ | 180,032 | ≥ 8.50 | % | ≥ $ | 169,442 | ≥ 8.00 | % | ||||||||
Tier 1 Capital (to average assets) | $ | 313,891 | 10.80 | % | ≥ $ | 116,224 | ≥ 4.00 | % | ≥ $ | 145,280 | ≥ 5.00 | % | ||||||||
Common Equity Tier 1 (to risk-weighted assets) | $ | 311,114 | 14.69 | % | ≥ $ | 148,262 | ≥ 7.00 | % | ≥ $ | 137,672 | ≥ 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 | |||||||||||||||||
March 31, 2021 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
Total Capital (to risk-weighted assets) | $ | 312,649 | 14.78 | % | ≥ $ | 222,160 | ≥ 10.50 | % | ≥ $ | 211,581 | ≥ 10.00 | % | ||||||||
Tier 1 Capital (to risk-weighted assets) | $ | 290,502 | 13.73 | % | ≥ $ | 179,844 | ≥ 8.50 | % | ≥ $ | 169,265 | ≥ 8.00 | % | ||||||||
Tier 1 Capital (to average assets) | $ | 290,502 | 9.87 | % | ≥ $ | 117,789 | ≥ 4.00 | % | ≥ $ | 147,236 | ≥ 5.00 | % | ||||||||
Common Equity Tier 1 (to risk-weighted assets) | $ | 290,502 | 13.73 | % | ≥ $ | 148,107 | ≥ 7.00 | % | ≥ $ | 137,528 | ≥ 6.50 | % | ||||||||
December 31, 2020 | ||||||||||||||||||||
Total Capital (to risk-weighted assets) | $ | 334,686 | 15.80 | % | ≥ $ | 222,391 | ≥ 10.50 | % | ≥ $ | 211,801 | ≥ 10.00 | % | ||||||||
Tier 1 Capital (to risk-weighted assets) | $ | 309,033 | 14.59 | % | ≥ $ | 180,031 | ≥ 8.50 | % | ≥ $ | 169,441 | ≥ 8.00 | % | ||||||||
Tier 1 Capital (to average assets) | $ | 309,033 | 10.64 | % | ≥ $ | 116,224 | ≥ 4.00 | % | ≥ $ | 145,280 | ≥ 5.00 | % | ||||||||
Common Equity Tier 1 (to risk-weighted assets) | $ | 309,033 | 14.59 | % | ≥ $ | 148,261 | ≥ 7.00 | % | ≥ $ | 137,671 | ≥ 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 | 8.9 | % | 23.3 | % | ||||
up 300 | 6.7 | % | 17.6 | % | ||||
up 200 | 4.4 | % | 11.3 | % | ||||
up 100 | 1.8 | % | 4.6 | % | ||||
down 100 | (1.2) | % | (2.3) | % | ||||
(in thousands, except per share data) | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value That May yet Be Purchased Under the Program | ||||||||||
Period | ||||||||||||||
January 1-31, 2021 | 54,815 | $ | 37.64 | 54,815 | $ | 17,198 | ||||||||
February 1-28, 2021 | 109,964 | 37.35 | 109,964 | 13,085 | ||||||||||
March 1-31, 2021 | 59,234 | 39.32 | 59,234 | 10,753 | ||||||||||
Total | 224,013 | 37.94 | 224,013 | |||||||||||
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Herewith | ||||||||||||||
2.01 | 8-K | 001-33572 | 2.1 | April 19, 2021 | ||||||||||||||||
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 | 10-K | 001-33572 | 10.07 | March 15, 2021 | ||||||||||||||||
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 | 10-Q | 001-33572 | 10.12 | November 6, 2020 | ||||||||||||||||
10.13 | 10-K | 001-33572 | 10.13 | March 15, 2021 | ||||||||||||||||
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) | |||||||||||
May 7, 2021 | /s/ Russell A. Colombo | ||||||||||
Date | Russell A. Colombo | ||||||||||
President & | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
May 7, 2021 | /s/ Tani Girton | ||||||||||
Date |
Tani Girton
|
||||||||||
Executive Vice President & | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) | |||||||||||
May 7, 2021 | /s/ David A. Merck | ||||||||||
Date | David A. Merck | ||||||||||
Vice President & | |||||||||||
Financial Reporting Manager | |||||||||||
(Principal Accounting Officer) |
May 7, 2021 | /s/ Russell A. Colombo | |||||||
Date | Russell A. Colombo | |||||||
President & | ||||||||
Chief Executive Officer |
May 7, 2021 |
/s/ Tani Girton
|
|||||||
Date |
Tani Girton
|
|||||||
Executive Vice President & | ||||||||
Chief Financial Officer |
May 7, 2021 | /s/ Russell A. Colombo | |||||||
Date | Russell A. Colombo | |||||||
President & | ||||||||
Chief Executive Officer |
May 7, 2021 | /s/ Tani Girton | |||||||
Date |
Tani Girton
|
|||||||
Executive Vice President & | ||||||||
Chief Financial Officer |