Bank of Marin Bancorp Reports First Quarter Earnings of $8.9 Million
Bank of Marin Bancorp (BMRC) reported first-quarter earnings of $8.9 million, up from $8.1 million in Q4 2020 and $7.2 million in Q1 2020. Diluted EPS rose to $0.66. Key highlights include loan balances increasing to $2.122 billion and total deposits at $2.656 billion. A strong credit quality is reflected in non-accrual loans being 0.43% of total loans. The bank reinstated its $0.23 cash dividend, marking the 64th consecutive quarterly payment.
- First-quarter earnings increased to $8.9 million, up 10% from Q4 2020 and 24% from Q1 2020.
- Diluted EPS rose to $0.66, a 10% increase from the previous quarter and 25% year-over-year.
- Loan balances reached $2.122 billion, driven by $365 million in PPP loans.
- Total deposits grew by $152 million to $2.656 billion.
- Non-accrual loans improved to 0.43% of total loans.
- Declared a cash dividend of $0.23 per share, the 64th consecutive quarterly payment.
- Net interest income decreased to $22.0 million from $23.6 million in the previous quarter and $24.1 million a year ago.
- Tax-equivalent net interest margin dropped to 3.19%, down from 3.40% in Q4 2020 and 3.88% in Q1 2020.
- Efficiency ratio increased to 62.13% from 59.70% in the prior quarter.
Bank of Marin Bancorp, "Bancorp" (Nasdaq: BMRC), parent company of Bank of Marin, "Bank," announced earnings of
“Bank of Marin delivered steady, reliable results throughout 2020, reflecting our sound underwriting and commitment to relationship banking,” said Russell A. Colombo, President and Chief Executive Officer. “Our first quarter results in 2021 reinforced that consistency. Our credit quality is strong, and we are poised to grow as the economy reopens and our markets gain momentum.”
First quarter 2021 earnings included a
Bancorp provided the following highlights from the first quarter of 2021:
-
Loan balances of
$2.12 2 billion at March 31, 2021 compared to$2.08 9 billion at December 31, 2020 and$1.84 4 billion at March 31, 2020. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans contributed to the increase and represented$365.0 million outstanding at March 31, 2021 versus$291.6 million at December 31, 2020. There were no PPP loans in the comparative year ago period. As of March 31, 2021,$55.9 million of our PPP loans had been forgiven and paid off by the SBA.
-
Credit quality remains strong, with non-accrual loans representing
0.43% of total loans as of March 31, 2021, compared to0.44% at December 31, 2020, and0.09% at March 31, 2020. Reversals of$2.9 million to the allowance for credit losses on loans and$590 thousand to the allowance for credit losses on unfunded loan commitments were driven primarily by an improvement in economic forecasts and a$40.2 million decrease in non-PPP loan balances.
-
Total deposits grew
$152.0 million from$2.50 4 billion at December 31, 2020 to$2.65 6 billion at March 31, 2021. The increase was primarily due to increases in PPP borrower-related accounts and normal fluctuations in some of our large business accounts. Non-interest bearing deposits represented54% of total deposits as of the end of the first quarter of 2021 and fourth quarter of 2020, versus49% at the end of the first quarter a year ago. First quarter 2021 cost of average deposits was consistent with the prior quarter at0.07% , compared to0.21% in the first quarter of 2020.
-
Return on average assets ("ROA") and return on average equity ("ROE") were
1.21% and10.22% , respectively, for the quarter ended March 31, 2021. These reflect meaningful increases as ROA was1.09% in both the prior and year-ago quarters. ROE was8.98% and8.54% , respectively, for the fourth quarter and first quarter of 2020.
-
Our strong capital and liquidity position afforded us the opportunity to eliminate a high cost funding source. On March 15, 2021 we redeemed a
$2.8 million subordinated debenture, which carried an effective rate of approximately5.7% . While the redemption decreased our net interest margin by 18 basis points in the first quarter of 2021, it will serve to improve net interest margin in the future.
-
All capital ratios were above well-capitalized regulatory requirements. The total risk-based capital ratio for Bancorp was
15.7% at March 31, 2021, compared to16.0% at December 31, 2020, and15.3% at March 31, 2020. Bancorp's tangible common equity to tangible assets was10.5% at March 31, 2021, compared to11.3% at December 31, 2020 and11.7% at March 31, 2020 (refer to footnote 5 on page 6 for a definition of this non-GAAP financial measure). The subordinated debt redemption contributed to the decline in total risk-based capital, and share repurchases were the primary driver of the declines in both total risk-based capital and tangible common equity. The total risk-based capital ratio for the Bank was14.8% at March 31, 2021, compared to15.8% at December 31, 2020, and14.4% at March 31, 2020.
-
The Board of Directors declared a cash dividend of
$0.23 per share on April 16, 2021. This represents the 64th consecutive quarterly dividend paid by Bank of Marin Bancorp. The dividend is payable on May 7, 2021, to shareholders of record at the close of business on April 30, 2021.
- As previously announced, Secil Tabli Watson was appointed as a new director on the boards of both the Bancorp and Bank effective April 1, 2021.
Loans and Credit Quality
Loans increased by
As of March 31, 2021, there were 2,513 PPP loans outstanding totaling
As of April 15, 2021, 11 borrowing relationships with 17 loans totaling
Industry/Collateral Type (dollars in thousands) |
Outstanding Loan Balance |
Weighted Average LTV |
|||
Education |
$ |
17,076 |
26 |
% |
|
Health Clubs |
16,427 |
45 |
% |
||
Office and Mixed Use |
13,794 |
42 |
% |
||
Hospitality |
7,135 |
48 |
% |
||
Retail Related CRE |
4,760 |
58 |
% |
||
Payment Relief Totals |
$ |
59,192 |
40 |
% |
|
Non-accrual loans totaled
In the first quarter of 2021, we recorded a reversal of the provision for credit losses on loans of
Cash, Cash Equivalents and Restricted Cash
Total cash, cash equivalents and restricted cash were
Investments
The investment securities portfolio increased to
Deposits
Total deposits were
On March 30, 2020, we implemented temporary fee waivers for all ATM fees, overdraft fees and early withdrawal penalties for time deposits to help ease the financial burden customers began experiencing due to the pandemic. After honoring the fee waivers for one year, we announced at the beginning of April those fees would no longer be automatically waived as of May 3, 2021, allowing our customers 30 days to adjust.
Earnings
“We continued our established tradition of carefully managing expenses in the first quarter, while taking advantage of market opportunities to invest excess cash and reduce high-cost debt,” said Tani Girton, EVP and Chief Financial Officer. “With consistent profitability, excellent asset quality and low-cost funding, we are confident in our ability to grow alongside our clients and continue to develop value for our shareholders.”
Net interest income totaled
The
The tax-equivalent net interest margin was
Non-interest income totaled
Non-interest expense decreased
First quarter non-interest expense decreased
The efficiency ratio was
Share Repurchase Program
Bancorp repurchased 224,013 shares totaling
Earnings Call and Webcast Information
Bank of Marin Bancorp will present its first quarter earnings call via webcast on Monday, April 19, 2021 at 8:30 a.m. PT/11:30 a.m. ET. Investors will have the opportunity to listen to the webcast online through Bank of Marin’s website at https://www.bankofmarin.com under “Investor Relations.” To listen to the webcast live, please go to the website at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available at the same website location shortly after the call.
About Bank of Marin Bancorp
Founded in 1990 and headquartered in Novato, Bank of Marin is the wholly owned subsidiary of Bank of Marin Bancorp (Nasdaq: BMRC). A leading business and community bank in the San Francisco Bay Area, with assets of
Forward-Looking Statements
This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact Bancorp's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Factors that could cause future results to vary materially from current management expectations include, but are not limited to, natural disasters (such as wildfires and earthquakes), our borrowers’ actual payment performance as loan deferrals related to the COVID-19 pandemic expire, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, including the potential adverse impact of loan modifications and payment deferrals implemented consistent with recent regulatory guidance, general economic conditions, economic uncertainty in the United States and abroad, changes in interest rates, deposit flows, real estate values, costs or effects of acquisitions, competition, changes in accounting principles, policies or guidelines, legislation or regulation (including the Tax Cuts & Jobs Act of 2017 and the Coronavirus Aid, Relief and Economic Security Act of 2020, as amended), interruptions of utility service in our markets for sustained periods, and other economic, competitive, governmental, regulatory and technological factors (including external fraud and cybersecurity threats) affecting Bancorp's operations, pricing, products and services. These and other important factors are detailed in various securities law filings made periodically by Bancorp, copies of which are available from Bancorp without charge. Bancorp undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
(BMRC-ER)
BANK OF MARIN BANCORP FINANCIAL HIGHLIGHTS |
||||||||||||
(dollars in thousands, except per share data; unaudited) |
March 31,
|
|
December 31,
|
|
March 31,
|
|||||||
Quarter-to-Date |
|
|
|
|
|
|||||||
Net income |
$ |
8,947 |
|
|
$ |
8,117 |
|
|
$ |
7,228 |
|
|
Diluted earnings per common share |
$ |
0.66 |
|
|
$ |
0.60 |
|
|
$ |
0.53 |
|
|
Return on average assets |
|
1.21 |
% |
|
|
1.09 |
% |
|
|
1.09 |
% |
|
Return on average equity |
|
10.22 |
% |
|
|
8.98 |
% |
|
|
8.54 |
% |
|
Efficiency ratio |
|
62.13 |
% |
|
|
59.70 |
% |
|
|
56.79 |
% |
|
Tax-equivalent net interest margin 1 |
|
3.19 |
% |
|
|
3.40 |
% |
|
|
3.88 |
% |
|
Cost of deposits |
|
0.07 |
% |
|
|
0.07 |
% |
|
|
0.21 |
% |
|
Net recoveries |
$ |
(13 |
) |
|
$ |
(13 |
) |
|
$ |
(7 |
) |
|
At Period End |
|
|
|
|
|
|||||||
Total assets |
$ |
3,058,133 |
|
|
$ |
2,911,926 |
|
|
$ |
2,697,738 |
|
|
Loans: |
|
|
|
|
|
|||||||
Commercial and industrial 2 |
$ |
545,069 |
|
|
$ |
498,408 |
|
|
$ |
264,405 |
|
|
Real estate: |
|
|
|
|
|
|||||||
Commercial owner-occupied |
|
308,266 |
|
|
|
304,963 |
|
|
|
306,371 |
|
|
Commercial investor-owned |
|
955,021 |
|
|
|
961,208 |
|
|
|
930,479 |
|
|
Construction |
|
71,066 |
|
|
|
73,046 |
|
|
|
63,425 |
|
|
Home equity |
|
96,575 |
|
|
|
104,813 |
|
|
|
116,968 |
|
|
Other residential |
|
124,383 |
|
|
|
123,395 |
|
|
|
135,929 |
|
|
Installment and other consumer loans |
|
21,392 |
|
|
|
22,723 |
|
|
|
26,283 |
|
|
Total loans |
$ |
2,121,772 |
|
|
$ |
2,088,556 |
|
|
$ |
1,843,860 |
|
|
Non-performing loans: 3 |
|
|
|
|
|
|||||||
Real estate: |
|
|
|
|
|
|||||||
Commercial owner-occupied |
$ |
7,147 |
|
|
$ |
7,147 |
|
|
$ |
— |
|
|
Commercial investor-owned |
|
1,603 |
|
|
$ |
1,610 |
|
|
$ |
942 |
|
|
Home equity |
|
455 |
|
|
|
459 |
|
|
|
633 |
|
|
Installment and other consumer loans |
|
— |
|
|
|
17 |
|
|
|
57 |
|
|
Total non-accrual loans |
$ |
9,205 |
|
|
$ |
9,233 |
|
|
$ |
1,632 |
|
|
Classified loans (graded substandard and doubtful) |
$ |
26,423 |
|
|
$ |
25,829 |
|
|
$ |
12,056 |
|
|
Total accruing loans 30-89 days past due |
$ |
1,047 |
|
|
$ |
1,827 |
|
|
$ |
1,315 |
|
|
Allowance for credit losses to total loans |
|
0.94 |
% |
|
|
1.10 |
% |
|
|
1.02 |
% |
|
Allowance for credit losses to total loans, excluding acquired and SBA PPP loans 4 |
|
1.14 |
% |
|
|
1.27 |
% |
|
|
1.08 |
% |
|
Allowance for credit losses to non-performing loans |
2.17x |
|
2.48x |
|
11.57x |
|||||||
Non-accrual loans to total loans |
|
0.43 |
% |
|
|
0.44 |
% |
|
|
0.09 |
% |
|
Total deposits |
$ |
2,656,199 |
|
|
$ |
2,504,249 |
|
|
$ |
2,307,110 |
|
|
Loan-to-deposit ratio |
|
79.9 |
% |
|
|
83.4 |
% |
|
|
79.9 |
% |
|
Stockholders' equity |
$ |
350,292 |
|
|
$ |
358,253 |
|
|
$ |
345,940 |
|
|
Book value per share |
$ |
26.29 |
|
|
$ |
26.54 |
|
|
$ |
25.50 |
|
|
Tangible common equity to tangible assets 5 |
|
10.5 |
% |
|
|
11.3 |
% |
|
|
11.7 |
% |
|
Total risk-based capital ratio - Bank |
|
14.8 |
% |
|
|
15.8 |
% |
|
|
14.4 |
% |
|
Total risk-based capital ratio - Bancorp |
|
15.7 |
% |
|
|
16.0 |
% |
|
|
15.3 |
% |
|
Full-time equivalent employees |
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FAQ
What were Bank of Marin Bancorp's earnings for Q1 2021?
Bank of Marin Bancorp reported earnings of $8.9 million for the first quarter of 2021.
What is the diluted earnings per share for BMRC in Q1 2021?
The diluted earnings per share for BMRC in Q1 2021 was $0.66.
How much did total deposits grow at BMRC in Q1 2021?
Total deposits increased by $152 million to $2.656 billion in Q1 2021.
What is the non-accrual loans percentage for BMRC as of March 31, 2021?
Non-accrual loans represented 0.43% of total loans as of March 31, 2021.
When is the cash dividend payable for BMRC?
The cash dividend of $0.23 per share is payable on May 7, 2021.
Bank of Marin Bancorp
NASDAQ:BMRCBMRC RankingsBMRC Latest NewsBMRC Stock Data
424.91M
14.55M
9.22%
56.71%
3.71%
Banks - Regional
State Commercial Banks
United States of America
NOVATO
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