Bank of Marin Bancorp (BMRC) Bundle
A Brief History of Bank of Marin Bancorp
Bank of Marin Bancorp (Nasdaq: BMRC), established over 30 years ago, has consistently focused on maintaining a strong capital and liquidity position. As of September 30, 2024, the Bank reported total assets of $3.775 billion, with total deposits amounting to $3.309 billion, reflecting a $95.5 million increase from the previous quarter.
Financial Performance Overview
In the third quarter of 2024, Bank of Marin recorded net income of $4.57 million, a significant recovery from a net loss of $21.9 million in the second quarter. This improvement was driven by strategic actions taken in the first half of the year, which included a focus on reducing operating expenses and repositioning the balance sheet.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income (Loss) | $4.57 million | $(21.9) million | $19.29 million |
| Diluted Earnings Per Share | $0.28 | $(1.36) | $1.20 |
| Return on Average Assets (ROA) | 0.48% | (2.35%) | 0.63% |
| Return on Average Equity (ROE) | 4.17% | (20.36%) | 6.07% |
| Total Non-Interest Income | $2.89 million | $(29.76) million | $8.27 million |
| Total Non-Interest Expense | $20.42 million | $21.89 million | $60.19 million |
Capital and Liquidity Position
The Bank's total risk-based capital ratio was reported at 16.40% as of September 30, 2024, maintaining a strong capital position above regulatory requirements. The tangible common equity (TCE) ratio stood at 9.72%.
Loan Portfolio and Credit Quality
As of September 30, 2024, total loans amounted to $2.090 billion, with a loan-to-deposit ratio of 63.16%. The Bank experienced a $7.7 million increase in loans during the third quarter. The allowance for credit losses remained stable at 1.47% of total loans.
| Loan Metrics | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Loans | $2.090 billion | $2.082 billion |
| Loan-to-Deposit Ratio | 63.16% | 62.80% |
| Non-Accrual Loans | $39.9 million | $33.7 million |
| Classified Loans | $52.4 million | $54.7 million |
Recent Developments
In October 2024, the Board of Directors declared a cash dividend of $0.25 per share, marking the 78th consecutive quarterly dividend payment. This decision reflects the Bank's ongoing commitment to returning value to shareholders.
The Bank's proactive measures in managing costs and enhancing its lending portfolio have positioned it for continued growth and improved financial performance in the upcoming quarters.
A Who Owns Bank of Marin Bancorp (BMRC)
Major Shareholders
As of 2024, Bank of Marin Bancorp (BMRC) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The following table provides a breakdown of key shareholders and their respective ownership stakes:
| Shareholder Type | Shareholder Name | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 1,200,000 | 7.45% |
| Institutional Investor | The Vanguard Group, Inc. | 950,000 | 5.88% |
| Mutual Fund | Fidelity Investments | 850,000 | 5.27% |
| Individual Shareholder | Tani Girton (CFO) | 100,000 | 0.62% |
| Individual Shareholder | Tim Myers (CEO) | 75,000 | 0.47% |
| Other | Other Individual and Smaller Institutional Investors | 13,625,000 | 80.31% |
Stock Performance and Market Capitalization
The market performance of Bank of Marin Bancorp reflects its ownership structure and investor confidence. As of September 30, 2024, the stock price was $27.17, with a market capitalization of approximately $436.96 million.
Recent Developments
Bank of Marin Bancorp has initiated a share repurchase program, which amounted to $4.2 million in shares repurchased in the third quarter of 2024. This action is indicative of the management's confidence in the company's valuation and future prospects.
Financial Overview
For the third quarter of 2024, the bank reported a net income of $4.6 million, following a significant loss in the previous quarter. The diluted earnings per share for this quarter stood at $0.28, compared to a loss of $1.36 in the prior quarter, showcasing a recovery in profitability.
Shareholder Equity and Dividends
The total stockholders' equity for Bank of Marin Bancorp was reported at $436.96 million as of September 30, 2024. The board declared a cash dividend of $0.25 per share, representing the 78th consecutive quarterly dividend, payable to shareholders of record on November 7, 2024.
Ownership Trends
Recent trends indicate a steady increase in institutional ownership, which is often viewed positively by the market. The increase in institutional holdings suggests growing confidence among larger investors in the bank's strategic direction and financial health.
Bank of Marin Bancorp (BMRC) Mission Statement
Overview
The mission of Bank of Marin Bancorp is to deliver exceptional financial services tailored to the needs of their diverse clientele, while maintaining a commitment to the communities they serve. As of 2024, the bank emphasizes a relationship-driven banking model that fosters trust and long-term partnerships.
Core Values
- Customer Focus: Prioritizing customer satisfaction through personalized service.
- Integrity: Upholding the highest ethical standards in all business practices.
- Community Commitment: Actively engaging in community development initiatives.
- Innovation: Continuously enhancing financial products and services to meet evolving customer needs.
Financial Performance Indicators
As of September 30, 2024, Bank of Marin Bancorp reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $3.79 billion |
| Total Loans | $2.09 billion |
| Total Deposits | $3.31 billion |
| Net Income (Q3 2024) | $4.57 million |
| Diluted Earnings per Share | $0.28 |
| Return on Average Assets (ROA) | 0.48% |
| Return on Average Equity (ROE) | 4.17% |
| Efficiency Ratio | 75.18% |
| Tax-Equivalent Net Interest Margin | 2.70% |
Strategic Objectives
Bank of Marin aims to enhance profitability through:
- Loan Growth: Expanding the loan portfolio with a focus on higher-yielding assets.
- Cost Management: Implementing strategies to reduce operational costs while maintaining service quality.
- Deposit Acquisition: Increasing non-interest-bearing deposits, which constituted 44.5% of total deposits as of September 30, 2024.
Community Engagement
Bank of Marin Bancorp is dedicated to community involvement, as evidenced by its ongoing support for local initiatives and charitable contributions. In the third quarter of 2024, the bank contributed $30,000 towards community development projects.
Conclusion
The mission statement of Bank of Marin Bancorp reflects its commitment to providing superior financial services while fostering community relationships and maintaining a robust financial position.
How Bank of Marin Bancorp (BMRC) Works
Financial Performance Overview
As of the third quarter of 2024, Bank of Marin Bancorp reported a net income of $4.57 million, a significant recovery from a net loss of $21.9 million in the previous quarter. The diluted earnings per share for the third quarter were $0.28, compared to a diluted loss per share of $(1.36) in the second quarter of 2024. For the first nine months of 2024, the net loss totaled $14.41 million, contrasting with a net income of $19.29 million for the same period in 2023.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income (Loss) | $4.57 million | $(21.9 million) | $19.29 million |
| Diluted Earnings (Loss) per Share | $0.28 | $(1.36) | $1.20 |
| Return on Average Assets (ROA) | 0.48% | (2.35%) | 0.63% |
| Return on Average Equity (ROE) | 4.17% | (20.36%) | 6.07% |
Net Interest Income
Net interest income for the third quarter of 2024 totaled $24.3 million, reflecting a $1.8 million increase from the prior quarter. For the nine months ended September 30, 2024, net interest income was $69.4 million, down from $78.5 million in the same period of 2023. The tax-equivalent net interest margin improved to 2.70% in Q3 2024, up from 2.52% in Q2 2024.
| Net Interest Income | Q3 2024 | Q2 2024 | Nine Months 2024 | Nine Months 2023 |
|---|---|---|---|---|
| Net Interest Income | $24.3 million | $22.5 million | $69.4 million | $78.5 million |
| Tax-equivalent Net Interest Margin | 2.70% | 2.52% | 2.57% | 2.66% |
Non-Interest Income and Expenses
For the third quarter of 2024, non-interest income was reported at $2.9 million, recovering from a loss of $29.8 million in the previous quarter, primarily due to a $32.5 million net loss on the sale of available-for-sale investment securities in Q2 2024. Total non-interest expenses decreased to $20.4 million from $21.9 million in Q2 2024, largely due to a reduction in salaries and related benefits.
| Non-Interest Metrics | Q3 2024 | Q2 2024 | Nine Months 2024 | Nine Months 2023 |
|---|---|---|---|---|
| Non-Interest Income | $2.9 million | $(29.8 million) | $(24.1 million) | $8.3 million |
| Non-Interest Expense | $20.4 million | $21.9 million | $63.5 million | $60.2 million |
Loan and Deposit Growth
Total loans as of September 30, 2024, were $2.090 billion, reflecting an increase of $7.7 million from the previous quarter. Deposits rose to $3.309 billion, an increase of $95.5 million from $3.214 billion as of June 30, 2024. Non-interest-bearing deposits made up 44.5% of total deposits.
| Loan and Deposit Metrics | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Loans | $2.090 billion | $2.082 billion |
| Total Deposits | $3.309 billion | $3.214 billion |
| Non-Interest-Bearing Deposits | 44.5% | 44.1% |
Capital Ratios
As of September 30, 2024, the total risk-based capital ratio for Bank of Marin Bancorp was 16.40%, while the Bank's total risk-based capital ratio was 15.82%. The tangible common equity (TCE) ratio was 9.72% for Bancorp and 9.32% for the Bank.
| Capital Metrics | BMRC | Bank |
|---|---|---|
| Total Risk-Based Capital Ratio | 16.40% | 15.82% |
| Tangible Common Equity Ratio | 9.72% | 9.32% |
Investment Portfolio
The total investment securities portfolio stood at $1.257 billion as of September 30, 2024, marking an increase of $99.5 million from the previous quarter. This portfolio consisted of both available-for-sale and held-to-maturity securities.
| Investment Portfolio Metrics | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Investment Securities | $1.257 billion | $1.158 billion |
| Average Effective Duration (Available-for-Sale) | 3.58 years | N/A |
| Average Effective Duration (Held-to-Maturity) | 5.35 years | N/A |
Liquidity Position
As of September 30, 2024, Bank of Marin had no outstanding borrowings, with total available funding sources amounting to $1.934 billion. This included unrestricted cash and unencumbered securities.
| Liquidity Metrics | September 30, 2024 |
|---|---|
| Total Available Funding Sources | $1.934 billion |
| Outstanding Borrowings | $0 |
How Bank of Marin Bancorp (BMRC) Makes Money
Net Interest Income
Bank of Marin Bancorp generates a significant portion of its revenue through net interest income. For the third quarter of 2024, net interest income totaled $24.3 million, reflecting a $1.8 million increase from the previous quarter. For the nine months ended September 30, 2024, net interest income was $69.4 million, down from $78.5 million for the same period in 2023, a decrease of $9.1 million.
Net Interest Margin
The tax-equivalent net interest margin was recorded at 2.70% for the third quarter of 2024, up from 2.52% in the prior quarter. For the nine-month period, the net interest margin was 2.57%, compared to 2.66% for the same period in the previous year.
| Period | Net Interest Income ($ million) | Net Interest Margin (%) |
|---|---|---|
| Q3 2024 | 24.3 | 2.70 |
| Q2 2024 | 22.5 | 2.52 |
| 9 Months 2024 | 69.4 | 2.57 |
| 9 Months 2023 | 78.5 | 2.66 |
Loan Portfolio
As of September 30, 2024, total loans amounted to $2.09 billion. The loan composition includes:
- Commercial and industrial loans: $160.4 million
- Commercial owner-occupied real estate: $318.7 million
- Commercial non-owner occupied real estate: $1.27 billion
- Home equity loans: $86.5 million
- Other residential loans: $150.6 million
- Installment and other consumer loans: $68.2 million
Non-Interest Income
For the third quarter of 2024, non-interest income was $2.9 million, an increase from a loss of $29.8 million in the prior quarter. However, for the nine months ended September 30, 2024, non-interest income showed a loss of $24.1 million, compared to income of $8.3 million for the same period in the previous year, primarily due to a $32.5 million net loss on the sale of available-for-sale investment securities.
Deposits
Total deposits increased to $3.309 billion as of September 30, 2024, up $95.5 million from $3.214 billion as of June 30, 2024. Non-interest bearing deposits accounted for 44.5% of total deposits, reflecting a slight increase from 44.1% in the prior quarter.
Non-Interest Expense
Non-interest expenses for the third quarter of 2024 totaled $20.4 million, down from $21.9 million in the previous quarter. For the nine months ended September 30, 2024, non-interest expenses were $63.5 million, compared to $60.2 million for the same period in 2023.
Performance Ratios
For the third quarter of 2024, the bank reported:
- Return on average assets (ROA): 0.48%
- Return on average equity (ROE): 4.17%
- Efficiency ratio: 75.18%
| Metric | Q3 2024 | Q2 2024 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| ROA (%) | 0.48 | (2.35) | (0.51) | 0.63 |
| ROE (%) | 4.17 | (20.36) | (4.43) | 6.07 |
| Efficiency Ratio (%) | 75.18 | (300.37) | 140.08 | 69.37 |
Capital and Liquidity
The total risk-based capital ratio for Bank of Marin Bancorp was 16.40% as of September 30, 2024. The tangible common equity to tangible assets ratio was 9.72%.
Total liquidity available, including unrestricted cash and other liquid assets, was $1.934 billion, with no outstanding borrowings as of September 30, 2024.
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Article updated on 8 Nov 2024
Resources:
- Bank of Marin Bancorp (BMRC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bank of Marin Bancorp (BMRC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bank of Marin Bancorp (BMRC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.