Bank of Marin Bancorp, parent company of Novato-based Bank of Marin, announced earnings were up 7.7 percent for the nine-month period that ended Sept. 30, according to a release Monday.
Earnings in that span were $13.1 million, up from $12.2 million in the same period a year ago. Diluted earnings per share for the new nine-month period totaled $2.41, up $0.15, or 6.6 percent, from $2.26 in the same period a year ago.
On Oct. 18, the bank's board of directors declared a quarterly cash dividend of $0.18 per share. The cash dividend is payable to shareholders of record at the close of business on Nov. 1 and will be payable on Nov. 9.
Earnings for the quarter ended Sept. 30 totaled $3.2 million, compared to $5.0 million in the second quarter of 2012, and $4.2 million in the third quarter of 2011. Diluted earnings per share totaled $0.59 in the third quarter, compared to $0.91 in the prior quarter, and $0.79 in the same quarter a year ago. Third quarter earnings reflect a $2.1 million provision for loan loss that is primarily related to one borrowing relationship.
“Bank of Marin's underlying business fundamentals are very strong, including the quality of the credit portfolio and continued deposit growth," said Russell A. Colombo, President and CEO of Bank of Marin. “We continue to focus on growing our loan totals, with funded deals increasing this quarter.”
In a conscious effort to deploy excess liquidity and reduce the cost of funds, Bancorp redeemed a $5.0 million subordinated debenture at one-month LIBOR plus 2.48 percent in the third quarter of 2012.
The total risk-based capital ratio for Bancorp grew to 14.0 percent, up from 13.9 percent at June 30, 2012 and 13.3 percent at September 30, 2011. The risk-based capital ratio continues to be well above industry requirements for a well-capitalized institution.