By Mary Fricker, Special to the Business Journal
NOVATO — Bank of Marin Bancorp (NASDAQ: BMRC), the parent company of Novato-based Bank of Marin, on Monday reported record profits of $5.2 million for the three months ended June 30, propelled by its acquisition of Bank of Alameda in December, the end of merger costs that peaked in the first quarter, and loan growth.
With these record results, the company looks to make more acquisitions, fund more loans and hire more commercial bankers, chief executive Russell Colombo told the North Bay Business Journal. Lending teams in Napa and Santa Rosa should help spur loan growth, especially in wine and wine-related businesses, he said.
“We are really hoping to continue to grow the North Bay,” Mr. Colombo said. “That’s a big emphasis for us.”
The record earnings were 14 percent higher than the first quarter and 69 percent, or $2.1 million, above the second quarter of 2013. Revenue grew slightly in the second quarter, to $20.8 million, and was up 25 percent from a year earlier.
Loans also rose, reaching $1.3 billion at June 30, up 4.7 percent from March and 22.6 percent from June 2013, while deposits ended the quarter at $1.6 billion, nearly unchanged from March but up 30.6 percent from a year earlier. Bank of Alameda contributed about $170 million in loans and $230 million in deposits.
Safety and soundness measures improved. Problem loans sank to 0.76 percent of all loans at June 30, down from 1.69 percent a year earlier. And for every $100 in assets, the bank was using $10.23 of its own money, instead of deposits or other borrowings, up from $9.53 in March. Regulators don’t like to see troubled loans exceed 3 percent, and they consider banks with at least $5 of their own money at risk to be sound.
Bank of Marin Bancorp has $1.8 billion in assets, up from $1.4 billion a year ago. It has 263 employees and 21 branches in Marin, Sonoma, Napa, San Francisco and Alameda counties. Its board of directors approved a 20-cent quarterly dividend payable August 8.
Shares closed Monday at $44.11, down 29 cents following the earnings report Monday morning.
Copyright © 1988–2015 North Bay Business Journal
View the policy for linking to website content.