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Bank Of Marin Bancorp (BMRC)
NASDAQ:BMRC
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Bank Of Marin Bancorp (BMRC) AI Stock Analysis

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BMRC

Bank Of Marin Bancorp

(NASDAQ:BMRC)

Rating:52Neutral
Price Target:
$23.00
▲(3.51%Upside)
The overall stock score of 52 reflects moderate financial health with liquidity strengths but declining profitability and equity raise concerns. Technical indicators highlight bearish trends, and valuation metrics suggest overvaluation. The earnings call provided a mixed outlook with some improvements, but challenges remain.
Positive Factors
Credit Risk Improvement
Credit issues that have hurt the stock recently seem to be getting better, and the bank's credit risks have incrementally eased.
Earnings Outlook
The Fed pivot has led to a better earnings outlook for Bank of Marin, making its shares appear compelling as they trade at a 30% discount to peers and a major discount to its own historical multiple.
Negative Factors
Credit Quality Concerns
Interest rate relief should mitigate office CRE pressures to a degree and reduce overall investor concern over the broader credit quality environment.
Office CRE Exposure
BMRC's sizeable office CRE exposure has been an area of concern, but the guaranteed loan remains current with pledged cash to cover payments through a 2026 maturity.

Bank Of Marin Bancorp (BMRC) vs. SPDR S&P 500 ETF (SPY)

Bank Of Marin Bancorp Business Overview & Revenue Model

Company DescriptionBank of Marin Bancorp operates as the holding company for Bank of Marin that provides a range of financial services primarily to small to medium-sized businesses, professionals, not-for-profit organizations, and individuals in California, the United States. It offers personal and business checking and savings accounts; and individual retirement, health savings, and demand deposit marketplace accounts, as well as time certificates of deposit, certificate of deposit account registry and insured cash sweep services. The company also provides commercial real estate, commercial and industrial, and consumer loans, as well as construction financing and home equity lines of credit. In addition, it offers merchant and payroll, and cash management services; credit cards; fraud detection tools; and mobile deposit, remote deposit capture, automated clearing house, wire transfer, and image lockbox services. Further, the company provides wealth management and trust services comprising customized investment portfolio management, financial planning, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and digital banking services. It operates through 12 branch offices in Marin, southern Sonoma counties, and north of San Francisco, California; and a loan production office in San Francisco. The company was incorporated in 1989 and is headquartered in Novato, California.
How the Company Makes MoneyBank of Marin Bancorp makes money primarily through interest income from its lending activities, including commercial loans, residential mortgages, and consumer loans. The bank also earns revenue from fees and service charges associated with deposit accounts, such as checking and savings accounts, and from treasury management services. Additionally, the bank may generate income from investment securities and other financial products. Key factors contributing to its earnings include maintaining strong customer relationships, effective risk management, and strategic market positioning in its regional focus areas.

Bank Of Marin Bancorp Earnings Call Summary

Earnings Call Date:Jul 28, 2025
(Q2-2025)
|
% Change Since: -6.56%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant improvements in net interest margin, net income, and book value, the bank faced a net loss due to securities sales and experienced a decline in deposits. The capital ratios remain strong, and there is optimism for loan growth in the second half of the year.
Q2-2025 Updates
Positive Updates
Increase in Net Interest Margin and Income
The bank saw a 15% increase in pretax pre-provision net income compared to the prior quarter and an 85% increase compared to the prior year-to-date. The net interest margin expanded by 7 basis points, driven by a decrease in deposit costs and an increase in the average yield on interest-earning assets.
Book Value and Tangible Book Value Growth
The financial performance improvements resulted in increases in both the book value and tangible book value per share growth in Q2.
Securities Repositioning Benefits
A securities repositioning in early July is expected to provide a 13 basis points lift in net interest margin and $0.20 of annual earnings per share lift, with most benefits beginning in Q3.
Strong Capital Ratios
Bank of Marin maintained strong capital ratios with a total risk-based capital ratio of 16.25% and a TCE ratio of 9.95%.
Dividend Declaration
The Board declared a cash dividend of $0.25 per share, marking the 81st consecutive quarterly dividend paid by the company.
Negative Updates
Net Loss Due to Securities Sale
The bank reported a net loss of $8.5 million in Q2 due to the loss incurred on the sale of securities during the securities repositioning.
Deposit Decline
Total deposits declined in Q2 due to normal client activity, including business expenses, payroll, distributions, and seasonal outflows for tax payments.
Elevated Payoffs in Acquired Residential Mortgage Portfolio
There were elevated payoffs in the acquired residential mortgage portfolio, contributing to challenges in maintaining loan growth.
Company Guidance
In the Bank of Marin Bancorp's second-quarter 2025 earnings call, key metrics highlighted included a 15% increase in pretax pre-provision net income compared to the previous quarter and an 85% increase compared to the prior year-to-date. The net interest margin expanded, contributing to improved financial performance and growth in both book value and tangible book value per share. The quarter saw $68.8 million in loan originations with $50.2 million in fundings, and while total deposits declined due to seasonal factors, over 70% of the deposit outflows were recouped in July. The bank's total risk-based capital ratio stood at 16.25%, and the tangible common equity (TCE) ratio was 9.95%. The bank completed securities repositioning expected to yield a 13 basis point lift in net interest margin and $0.20 annual earnings per share lift, primarily impacting the third quarter. In addition, Bank of Marin repurchased $2.2 million of shares and declared a $0.25 per share cash dividend, marking the 81st consecutive quarterly dividend.

Bank Of Marin Bancorp Financial Statement Overview

Summary
Bank of Marin Bancorp demonstrates moderate financial health with positive cash flows, but declining profitability and equity raise concerns. The income statement shows negative net income and EBIT, highlighting operational challenges. The balance sheet has strong cash reserves but a decrease in stockholders' equity. Cash flow is positive but inconsistent, affecting future investments.
Income Statement
45
Neutral
The company has seen a decline in revenue growth and profitability. TTM data reveals a negative net income and EBIT, with a significant drop in total revenue compared to the previous year. Gross profit margin is positive, but net profit margin is negative, indicating inefficiency in cost management or other financial pressures. The revenue growth rate has been inconsistent, and negative EBIT margin further highlights operational challenges.
Balance Sheet
65
Positive
The balance sheet shows a stable equity ratio, although the debt-to-equity ratio is low due to relatively low debt levels. However, the significant decrease in stockholders' equity in the TTM period raises concerns about the company's ability to maintain financial stability. Strong cash reserves provide some cushion, but the declining equity could pose long-term risks.
Cash Flow
70
Positive
The cash flow statement indicates positive operating cash flow and free cash flow, which is a positive sign for liquidity management. The free cash flow to net income ratio is strong, suggesting that the company effectively converts its net income into cash. However, the free cash flow growth rate is inconsistent, which could impact future investments and operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue116.39M141.70M140.69M118.46M108.19M
Gross Profit64.46M102.73M138.52M117.50M99.05M
EBITDA-11.39M29.48M66.84M47.76M43.59M
Net Income-8.41M19.89M46.59M33.23M30.24M
Balance Sheet
Total Assets3.70B3.80B4.15B4.31B2.91B
Cash, Cash Equivalents and Short-Term Investments273.04M30.55M46.66M1.52B592.67M
Total Debt21.66M75.20M251.08M25.85M29.90M
Total Liabilities3.27B3.36B3.74B3.86B2.55B
Stockholders Equity435.41M439.06M412.09M450.37M358.25M
Cash Flow
Free Cash Flow27.84M33.91M53.01M44.21M39.86M
Operating Cash Flow28.36M35.66M55.28M45.25M40.84M
Investing Cash Flow195.17M334.69M-218.10M-340.67M-173.44M
Financing Cash Flow-116.69M-385.32M-139.40M442.73M149.53M

Bank Of Marin Bancorp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price22.22
Price Trends
50DMA
23.09
Negative
100DMA
22.11
Positive
200DMA
22.89
Negative
Market Momentum
MACD
-0.19
Positive
RSI
31.75
Neutral
STOCH
8.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMRC, the sentiment is Negative. The current price of 22.22 is below the 20-day moving average (MA) of 24.52, below the 50-day MA of 23.09, and below the 200-day MA of 22.89, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 31.75 is Neutral, neither overbought nor oversold. The STOCH value of 8.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BMRC.

Bank Of Marin Bancorp Risk Analysis

Bank Of Marin Bancorp disclosed 25 risk factors in its most recent earnings report. Bank Of Marin Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Bank Of Marin Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$406.32M9.2620.97%2.23%1.20%46.86%
72
Outperform
$395.98M10.4412.02%0.71%9.09%23.58%
71
Outperform
$367.97M9.679.40%1.64%11.18%24.61%
62
Neutral
$355.65M10.306.47%7.50%14.47%-18.94%
62
Neutral
C$15.13B6.8419.02%5.62%33.28%-19.39%
60
Neutral
$392.31M12.428.09%9.18%154.46%
52
Neutral
$360.32M51.081.58%4.50%23.26%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BMRC
Bank Of Marin Bancorp
22.28
5.01
29.01%
MSBI
Midland States Bancrop
16.53
-3.24
-16.39%
FRBA
First Bank
14.98
1.05
7.54%
CARE
Carter Bankshares
17.20
1.98
13.01%
BSVN
Bank7
43.00
6.47
17.71%
RRBI
Red River Bancshares
59.25
9.78
19.77%

Bank Of Marin Bancorp Corporate Events

Business Operations and StrategyFinancial Disclosures
Bank of Marin Bancorp Reports Q2 2025 Net Loss
Negative
Jul 28, 2025

Bank of Marin Bancorp announced that its President and CEO, Tim Myers, and CFO, David Bonaccorso, will participate in the Keefe Bruyette & Woods Community Bank Investor Conference from July 28-30, 2025. In its second-quarter 2025 financial overview, the company reported a net loss of $8.5 million, largely due to a pre-tax loss from the sale of securities, but highlighted strong capital positions and strategic redeployment of proceeds to enhance future earnings. The announcement underscores the bank’s efforts to maintain financial stability and improve shareholder value amidst challenging economic conditions.

The most recent analyst rating on (BMRC) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Bank Of Marin Bancorp stock, see the BMRC Stock Forecast page.

DividendsFinancial DisclosuresRegulatory Filings and Compliance
Bank Of Marin Bancorp Announces Quarterly Dividend
Negative
Jul 28, 2025

On July 24, 2025, Bank of Marin Bancorp’s Board of Directors approved a quarterly cash dividend of $0.25 per share, payable on August 14, 2025. The company also announced revisions to its Insider Trading Policy, including changes to the blackout period and provisions for 10b5-1 trading plans. For the second quarter of 2025, Bancorp reported a net loss of $8.5 million, attributed to securities repositioning, despite a 15% growth in pre-tax pre-provision net income. The repositioning is expected to enhance future earnings, with a 13 basis point increase in net interest margin anticipated in the third quarter.

The most recent analyst rating on (BMRC) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Bank Of Marin Bancorp stock, see the BMRC Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Bank Of Marin Bancorp Announces New Stock Buyback Program
Positive
Jul 28, 2025

On July 24, 2025, Bank of Marin Bancorp’s Board of Directors approved a new stock repurchase program authorizing the buyback of up to $25 million of its common stock through July 31, 2027. This initiative replaces the previous program expiring at the end of July 2025, which saw $6.4 million in shares repurchased. The program aims to maintain a balanced capital allocation strategy, allowing the company to make strategic decisions benefiting shareholders. The repurchase can be executed through various means, including open market and privately negotiated transactions, with the possibility of adopting a trading plan under Rule 10b5-1 to navigate insider trading restrictions. The program offers flexibility as it may be suspended or discontinued at any time without obligating the acquisition of a specific number of shares.

The most recent analyst rating on (BMRC) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Bank Of Marin Bancorp stock, see the BMRC Stock Forecast page.

Financial Disclosures
Bank of Marin Bancorp Q2 2025 Earnings Call Announcement
Neutral
Jul 3, 2025

Bank of Marin Bancorp announced that its President and CEO Tim Myers, along with CFO Dave Bonaccorso, will discuss the company’s financial results for the second quarter of 2025 in an earnings call on July 28, 2025. The results will be released prior to the call, and the webcast will be accessible to investors through the company’s website, with a replay available shortly after. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (BMRC) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Bank Of Marin Bancorp stock, see the BMRC Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Bank Of Marin Bancorp Sells $186M Securities for Repositioning
Neutral
Jul 1, 2025

On July 1, 2025, Bank of Marin announced the sale of $186 million in available-for-sale securities as part of a strategic balance sheet repositioning. This move, aimed at enhancing future earnings and increasing return on equity, resulted in an estimated pre-tax loss of $19 million to be recorded in the second quarter of 2025. The proceeds from the sale were reinvested at a higher yield, expected to improve the bank’s net interest margin and earnings per share over the next year, positioning the bank for long-term growth.

The most recent analyst rating on (BMRC) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Bank Of Marin Bancorp stock, see the BMRC Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Bank Of Marin Bancorp Holds Annual Shareholder Meeting
Neutral
May 22, 2025

At the Annual Meeting of Shareholders on May 21, 2025, Bank Of Marin Bancorp held votes on several key matters. Shareholders elected ten board members, approved executive compensation, and ratified the selection of Moss Adams LLP as the independent auditor for 2025, indicating continued confidence in the company’s leadership and financial oversight.

The most recent analyst rating on (BMRC) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Bank Of Marin Bancorp stock, see the BMRC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2025