Bank Of Marin (BMRC) has disclosed a new risk, in the Debt & Financing category.
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The Bank of Marin faces heightened business risk as rising interest rates have depreciated its securities portfolio, comprising predominantly of held-to-maturity and available-for-sale securities. The federal funds rate hike has led to a market-wide reduction in the value of fixed income securities, embedding significant unrealized losses within the Bank’s investments. Although the Bank strategically sold some securities at a loss for liquidity and balance sheet repositioning, continued sales under these conditions could erode its capital base. Such actions may compel the Bank to seek additional capital, possibly diluting shareholder value and undermining its financial stability.
Overall, Wall Street has a Hold consensus rating on BMRC stock based on 1 Buy and 3 Holds.
To learn more about Bank Of Marin’s risk factors, click here.
