NOVATO -- Bank of Marin Bancorp (NASDAQ: BMRC), the parent company of Bank of Marin, announced today that the bank’s annual net income increased by 14.8 percent in 2011.
The Novato-based bank earned $15.6 million in 2011 -- $2 million more than in 2010. Earnings per diluted share was $2.89, and the bank’s board of directors approved a 17 cent quarterly dividend that will be paid on Feb. 10 to all shareholders as of Feb. 1.
The total value of loans grew by 9.5 percent and reached $1 billion as of Dec. 31, and total assets reached $1.4 billion.
The profitable year featured the opening of three new branches for Bank of Marin, including the Federal Deposit Insurance Corp.--assisted acquisition of the former Charter Oak Bank in Napa last February. The bank opened two branches in Sonoma County, in Santa Rosa and Sonoma.
“2011 was really a year where we invested in those markets, and this year will be one where they grow,” said Christina Cook, chief financial officer.
In the fourth quarter of 2011, Bank of Marin earned $3.38 million in net income -- 13.4 percent less than in the same quarter of 2010. Chief Executive Officer Russ Colombo attributed that decrease to costs associated with the Napa acquisition, which included a $683,000 writeoff for the core deposit intangible asset.
“From our perspective, we feel really good about the fourth quarter and the year,” Mr. Colombo said. “In net, it has been a very successful acquisition in Napa.”
The bank reported strong loan growth in Napa and San Francisco, and Mr. Colombo said that he expected that trend to continue in 2012.
Nonperforming loans represented 1.16 percent of total loans as of Dec. 31, down from 1.37 percent at the end of 2010. The total provision for loan losses for 2011 was $7.1 million, an increase from $5.4 million in 2010.
The bank attributed that increase to loans acquired from Charter Oak Bank. Of the $4.8 million in chargeoffs in 2011, $1.5 million were related to the acquisition. There were $3.6 million in net chargeoffs in 2010.