Bank of Marin Bancorp, parent company of Bank of Marin, announced earnings of $4.3 million in the second quarter of 2015, compared to $4.5 million in Q1 2015 and $5.2 million in Q2 2014.
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Diluted earnings per share totaled $0.71 in the second quarter, compared to $0.74 in the prior quarter and $0.86 in the same quarter a year ago. Year-to-date earnings totaled $8.7 million compared to $9.7 million for the same six-month period a year ago. Diluted earnings per share for the six-month period totaled $1.44 compared to $1.62 for the same period in 2014.
Loans totaled $1.34 billion at June 30, 2015, compared to $1.35 billion at March 31, 2015 and $1.34 billion at June 30, 2014. Strong new loan volume of approximately $52 million in the second quarter of 2015 was offset by pay-offs of approximately $55 million, and combined with utilization and amortization on existing loans resulted in a net decrease of $7.3 million since March 31, 2015.
The successful completion of several construction projects and the resolution of problem credits contributed to the decline in the quarter.
Deposits totaled $1.6 billion at June 30, 2015, and grew $45.4 million over March 31, 2015. Non-interest bearing deposits increased $24.4 million in the second quarter and represent 45.5% of total deposits, compared to 45.2% at March 31, 2015 and 45.3% at June 30, 2014.
Credit quality remains strong with non-accrual loans continuing to trend downward, representing 0.53% of total loans at June 30, 2015, down from 0.70% at March 31, 2015 and 0.76% a year ago.
Classified loans totaled $27.8 million, down from $34.1 million at the end of the prior quarter and $33.2 million a year ago. Net charge-offs for the second quarter totaled $801 thousand, compared to net recoveries of $57 thousand in the prior quarter and net recoveries of $68 thousand in the same quarter a year ago.
No provision for loan losses was recorded in the second quarter of 2015 as the continued reduction in credit risk did not warrant a provision.
The total risk-based capital ratio for Bancorp was 14.1% at June 30, 2015 compared to 13.8% at March 31, 2015. The common equity tier one ratio, a regulatory ratio under Basel III (Basel Committee on Bank Supervision guidelines for determining regulatory capital), was 12.8% at June 30, 2015, compared to 12.5% at March 31, 2015.
All capital ratios are well above regulatory requirements for a well-capitalized institution under the new requirements that took effect January 1, 2015. Tangible common equity to tangible assets totaled 10.6% at June 30, 2015, compared to 10.7% at March 31, 2015 and 9.9% at June 30, 2014.
On July 17, 2015, the board declared a quarterly cash dividend of $0.22 per share. The cash dividend is payable to shareholders of record at the close of business on July 31, 2015 and will be payable on August 7, 2015. ■