Bank of Marin Bancorp (NASDAQ:BMRC) Issues Earnings Results

Bank of Marin Bancorp (NASDAQ:BMRC) issued its earnings results on Monday. The bank reported $0.59 EPS for the quarter, topping analysts’ consensus estimates of $0.51 by $0.08, FiscalAI reports. Bank of Marin Bancorp had a net margin of 6.22% and a return on equity of 5.25%. The business had revenue of ($35.47) million for the quarter, compared to analyst estimates of $32.96 million.

Here are the key takeaways from Bank of Marin Bancorp’s conference call:

• Bank executed a fourth-quarter balance sheet repositioning that moved its HTM portfolio to AFS, sold ~74% of legacy HTM and recorded a $69 million securities loss (resulting in a $39.5 million GAAP net loss), but management expects ~25 bps of NIM lift and ~$0.40 of EPS accretion over 12 months and replenished capital via subordinated debt to avoid equity dilution.
• Loan production was one of the strongest quarters in a decade with $141 million of originations (>$106M funded) and FY originations of $374M (79% higher YoY), a pipeline ~30% larger than last year, and the bank is targeting consistent mid-single-digit net loan growth.
• Deposits grew while the cost of deposits fell ~10 bps (spot interest-bearing cost ~2.08% at 12/31), aided by ~1,000 new accounts (45% new-to-bank) and targeted rate reductions that management expects will help further margin expansion if Fed easing occurs.
• Credit quality improved materially: classified loans fell 35% Q/Q to 1.5% of loans, non-accruals declined to 1.3%, past-due levels are the lowest since Q4 2023, and the allowance remains strong at 1.42% of loans, supporting a modest provision and continuation of a $0.25 cash dividend.

Bank of Marin Bancorp Price Performance

NASDAQ BMRC traded up $0.99 during trading on Monday, hitting $27.41. The company’s stock had a trading volume of 68,565 shares, compared to its average volume of 98,530. Bank of Marin Bancorp has a fifty-two week low of $19.14 and a fifty-two week high of $28.48. The company has a market cap of $440.95 million, a PE ratio of 44.20 and a beta of 0.86. The business’s 50 day simple moving average is $26.66 and its 200-day simple moving average is $25.13.

Bank of Marin Bancorp Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, February 12th. Shareholders of record on Thursday, February 5th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend is Thursday, February 5th. Bank of Marin Bancorp’s dividend payout ratio (DPR) is currently 161.29%.

Institutional Trading of Bank of Marin Bancorp

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BMRC. Russell Investments Group Ltd. boosted its holdings in Bank of Marin Bancorp by 2,543.8% during the third quarter. Russell Investments Group Ltd. now owns 1,269 shares of the bank’s stock worth $31,000 after buying an additional 1,221 shares in the last quarter. Tower Research Capital LLC TRC raised its position in shares of Bank of Marin Bancorp by 124.6% in the second quarter. Tower Research Capital LLC TRC now owns 1,875 shares of the bank’s stock worth $43,000 after acquiring an additional 1,040 shares during the period. Quantbot Technologies LP acquired a new position in shares of Bank of Marin Bancorp in the second quarter worth about $70,000. BNP Paribas Financial Markets raised its position in shares of Bank of Marin Bancorp by 88.2% in the third quarter. BNP Paribas Financial Markets now owns 2,893 shares of the bank’s stock worth $70,000 after acquiring an additional 1,356 shares during the period. Finally, Jones Financial Companies Lllp boosted its stake in shares of Bank of Marin Bancorp by 4,337.9% during the 1st quarter. Jones Financial Companies Lllp now owns 8,432 shares of the bank’s stock worth $186,000 after acquiring an additional 8,242 shares in the last quarter. Institutional investors and hedge funds own 52.26% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on BMRC shares. DA Davidson increased their price target on Bank of Marin Bancorp from $29.00 to $31.00 and gave the stock a “buy” rating in a research report on Tuesday, October 28th. UBS Group set a $30.00 target price on shares of Bank of Marin Bancorp in a report on Wednesday, October 29th. Keefe, Bruyette & Woods reissued an “outperform” rating and set a $30.00 target price (up previously from $27.00) on shares of Bank of Marin Bancorp in a research report on Wednesday, October 29th. Wall Street Zen raised shares of Bank of Marin Bancorp from a “sell” rating to a “hold” rating in a research report on Saturday, December 20th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Bank of Marin Bancorp in a research note on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $28.40.

About Bank of Marin Bancorp

Bank of Marin Bancorp is the bank holding company for Bank of Marin, a community-oriented financial institution headquartered in Novato, California. Through its subsidiary, the company provides a broad range of banking services to individuals, small and medium-sized businesses, and nonprofit organizations. Its operating philosophy emphasizes personalized service and strong local relationships across the San Francisco North Bay region.

The company’s core product offerings include deposit accounts such as checking, savings, money market and time certificates of deposit.