Bank of Marin Bancorp in Novato, Calif., reported a significant increase in quarterly profit following an acquisition and organic growth.
The $1.8 billion-asset company said in a press release Monday that its third-quarter earnings rose 35% from a year earlier, to $5.4 million, or 89 cents a share.
Loans, including loans gained from the $33 million purchase of NorCal Community Bancorp, rose 25% from a year earlier, to $1.4 billion. Investor owned commercial loans rose 23%, to $674 million. Credit quality also improved; the company recorded $149,000 in net recoveries in the quarter, compared to $68,000 in net chargeoffs a year earlier.
Deposits rose 23% from a year earlier, to $1.6 billion, also reflecting the NorCal purchase and organic growth California's Marin and Sonoma markets, the company said. Noninterest income increased by 18%, to $2.3 million, including an 8% increase in service charges on deposit accounts, to $552,000.
Net interest income increased 25%, to $17.5 million. The net interest margin expanded by 4 basis points, to 4.03%.
Noninterest expenses increased by 12%, to $11.4 million.
Bank of Marin has 21 branches.