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Bank Of Marin Bancorp (BMRC)
NASDAQ:BMRC
US Market

Bank Of Marin Bancorp (BMRC) AI Stock Analysis

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Bank Of Marin Bancorp

(NASDAQ:BMRC)

57Neutral
Bank of Marin Bancorp's overall stock score is 57, reflecting moderate financial health with strong liquidity but challenges in profitability and equity. The technical analysis suggests bearish sentiment, while the earnings call shows potential growth alongside operational challenges. The valuation is impacted by current losses, despite an attractive dividend yield.
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. S&P 500 (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 generates revenue through a variety of financial services and products. The primary revenue streams include interest income from loans and investment securities, fees from banking services, and wealth management services. Interest income is derived from loans provided to individual and commercial clients, including real estate, construction, and commercial loans. The company also earns non-interest income through service charges on deposit accounts, transaction fees, and investment advisory fees. Additionally, strategic partnerships with local businesses and community organizations enhance their market presence and contribute to customer acquisition and retention, further supporting their revenue growth.

Bank Of Marin Bancorp Financial Statement Overview

Summary
Bank Of Marin Bancorp demonstrates moderate financial health with positive cash flows. However, declining profitability and equity raise concerns about future financial stability. The company needs to address operational inefficiencies and bolster its equity position.
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
69.77M104.97M138.40M115.08M105.21M
Gross Profit
69.77M104.97M138.40M115.08M105.21M
EBIT
-13.84M39.67M66.06M44.89M40.59M
EBITDA
0.000.0066.84M47.76M43.59M
Net Income Common Stockholders
-8.41M19.89M46.59M33.23M30.24M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.40B30.45M847.97M1.52B592.67M
Total Assets
3.70B3.80B4.15B4.31B2.91B
Total Debt
21.66M49.20M139.08M25.85M29.90M
Net Debt
-115.64M18.75M93.65M-321.79M-170.42M
Total Liabilities
3.27B3.36B3.74B3.86B2.55B
Stockholders Equity
435.41M439.06M412.09M450.37M358.25M
Cash FlowFree Cash Flow
27.84M33.91M53.01M44.21M39.86M
Operating Cash Flow
28.36M35.66M55.28M45.25M40.84M
Investing Cash Flow
195.17M334.69M-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
Positive
Last Price20.73
Price Trends
50DMA
21.97
Negative
100DMA
23.00
Negative
200DMA
22.11
Negative
Market Momentum
MACD
-0.24
Negative
RSI
52.82
Neutral
STOCH
52.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMRC, the sentiment is Positive. The current price of 20.73 is above the 20-day moving average (MA) of 20.52, below the 50-day MA of 21.97, and below the 200-day MA of 22.11, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 52.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$353.74M7.9422.26%2.52%1.20%46.86%
74
Outperform
$368.47M9.489.81%1.67%18.63%37.17%
65
Neutral
$367.21M10.9511.51%0.74%10.47%13.63%
64
Neutral
$12.65B9.748.04%17044.64%12.65%-5.11%
63
Neutral
$363.16M13.047.22%13.73%111.78%
57
Neutral
$335.89M-1.47%4.87%-15.92%-147.11%
54
Neutral
$392.29M12.51-1.68%7.04%3.95%-135.44%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BMRC
Bank Of Marin Bancorp
21.36
6.55
44.23%
MSBI
Midland States Bancrop
18.33
-4.14
-18.42%
FRBA
First Bank
14.66
2.69
22.47%
CARE
Carter Bankshares
15.68
2.80
21.74%
BSVN
Bank7
37.44
9.23
32.72%
RRBI
Red River Bancshares
54.18
6.60
13.87%

Bank Of Marin Bancorp Earnings Call Summary

Earnings Call Date:Apr 28, 2025
(Q1-2025)
|
% Change Since: -0.43%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong financial performance with significant growth in earnings per share, an improved net interest margin, and robust deposit growth. However, these positives were offset by challenges in loan balance growth due to high payoffs and paydowns, an increase in classified loans, and a rise in noninterest expenses.
Q1-2025 Updates
Positive Updates
Strong Earnings Per Share Growth
Bank of Marin reported a 67% year-over-year increase in earnings per share for Q1 2025, driven by improved financial performance and prudent balance sheet management.
Net Interest Margin Improvement
The net interest margin increased by 36 basis points year-over-year in Q1 2025, helped by a 7 basis point decrease in deposit costs and strategic balance sheet management.
Deposit Growth
Total deposits grew by $82 million in Q1 2025, with noninterest-bearing deposits contributing $26 million to this increase.
Commercial Loan Origination Increase
Commercial loan originations were $49 million, with $43 million in fundings, marking a fivefold increase compared to the first quarter of the previous year.
Strong Capital Ratios
The bank reported a total risk-based capital ratio of 16.69% and a TCE ratio of 9.82%, indicating strong capital positioning.
Negative Updates
Loan Payoffs and Paydowns Exceeded Originations
Despite strong loan origination numbers, loan production was exceeded by payoffs, paydowns, and reduced construction line utilization, leading to a $10 million decrease in loan balances from the prior quarter.
Increase in Classified Loans
There was an increase in classified loans due to two borrower relationships being downgraded, affecting overall asset quality.
Noninterest Expense Increase
Noninterest expenses increased by $2.9 million from the prior quarter, primarily due to seasonally higher expenses and the timing of charitable contributions.
Company Guidance
During Bank of Marin Bancorp's first-quarter 2025 earnings call, key financial metrics highlighted included a significant 36 basis point increase in net interest margin and a 67% growth in earnings per share year-over-year. The bank reported $4.9 million in net income, equating to $0.30 per share, a 67% increase from the previous year. Total deposits grew by $82 million, with noninterest-bearing deposits comprising 43% of total deposits. The bank's total risk-based capital ratio stood strong at 16.69%, and the tangible common equity (TCE) ratio was 9.82%. Loan originations totaled $63 million, including $48 million in new fundings, with commercial loan originations comprising $49 million. Despite solid loan production, payoffs and paydowns resulted in a slight net decrease in loan balances. Additionally, noninterest expense increased by $2.9 million from the prior quarter due to seasonally higher expenses and accelerated charitable contributions. The bank maintained stable asset quality, with a slight decline in nonaccrual loans and a modest charge-off primarily from the sale of an acquired loan.

Bank Of Marin Bancorp Corporate Events

Financial Disclosures
Bank of Marin Bancorp Q1 2025 Earnings Call Announcement
Neutral
Apr 4, 2025

Bank of Marin Bancorp announced that its President and CEO, Tim Myers, and CFO, Dave Bonaccorso, will discuss the company’s financial results for the first quarter of 2025 in an earnings call on April 28, 2025. The results will be released prior to the call, and investors can access the webcast through the company’s website. This announcement provides stakeholders with an opportunity to gain insights into the company’s financial performance and strategic direction.

Business Operations and StrategyFinancial Disclosures
Bank of Marin Bancorp to Attend Piper Sandler Forum
Positive
Mar 10, 2025

Bank of Marin Bancorp announced that its President and CEO, Tim Myers, and CFO, David Bonaccorso, will participate in the Piper Sandler Western Bank Forum on March 10-11, 2025. The bank reported strong financial performance in the fourth quarter of 2024, with a 36% increase in EPS and a 9.65% decline in the efficiency ratio. Despite a decrease in total deposits, the bank maintained a strong capital position and improved credit quality metrics. The strategic focus remains on building long-term shareholder value through disciplined business practices and community commitment.

Executive/Board ChangesShareholder Meetings
Bank of Marin Bancorp Announces Board Member Departures
Neutral
Feb 25, 2025

Bank of Marin Bancorp announced on February 19, 2025, that Directors William McDevitt and Sanjiv Sanghvi will not stand for re-election at the 2025 Annual Meeting of Shareholders. The company plans to reduce the size of its Board by two members at the meeting, and the cooperation agreement with shareholders who nominated Mr. Sanghvi will terminate without extension.

Business Operations and StrategyFinancial Disclosures
Bank of Marin Bancorp Joins Stephens Virtual Bank Tour
Positive
Feb 24, 2025

Bank of Marin Bancorp announced that its President and CEO, Tim Myers, and CFO, David Bonaccorso, will participate in the Stephens Virtual West Coast Bank Tour from February 24-27, 2025. The presentation will be available on the company’s website. The bank reported strong financial performance in the fourth quarter of 2024, with a 36% increase in EPS, improved credit quality, and a decline in the efficiency ratio. Despite a decrease in total deposits, the bank maintained a strong capital position and liquidity, with a focus on long-term shareholder value and strategic growth.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.