Bank of Marin Bancorp Reports Third Quarter Financial Results
Bank of Marin Bancorp (BMRC) reported net income of $4.6 million for Q3 2024, compared to a net loss of $21.9 million in Q2 2024. Diluted earnings per share was $0.28 for Q3, versus a loss of $(1.36) in Q2. The company's tax-equivalent net interest margin increased to 2.70% from 2.52%. Total deposits grew to $3.309 billion, up $95.5 million from Q2, with non-interest bearing deposits increasing to 44.5% of total deposits. The Board declared a cash dividend of $0.25 per share. Year-to-date 2024 results reflected a $32.5 million pretax loss from Q2 balance sheet restructuring.
Bank of Marin Bancorp (BMRC) ha riportato un reddito netto di 4,6 milioni di dollari per il terzo trimestre del 2024, rispetto a una perdita netta di 21,9 milioni di dollari nel secondo trimestre del 2024. L'utile per azione diluito è stato di 0,28 dollari per il terzo trimestre, contro una perdita di $(1,36) nel secondo trimestre. Il margine di interesse netto equivalente fiscale della società è aumentato al 2,70% dal 2,52%. I depositi totali sono cresciuti a 3,309 miliardi di dollari, con un aumento di 95,5 milioni di dollari rispetto al secondo trimestre, con i depositi non remunerati che hanno raggiunto il 44,5% del totale dei depositi. Il Consiglio ha dichiarato un dividendo in contante di 0,25 dollari per azione. I risultati da inizio anno del 2024 hanno mostrato una perdita ante imposte di 32,5 milioni di dollari derivante dalla ristrutturazione del bilancio del secondo trimestre.
Bank of Marin Bancorp (BMRC) reportó un ingreso neto de 4.6 millones de dólares para el tercer trimestre de 2024, en comparación con una pérdida neta de 21.9 millones de dólares en el segundo trimestre de 2024. Las ganancias por acción diluidas fueron de 0.28 dólares para el tercer trimestre, frente a una pérdida de $(1.36) en el segundo trimestre. El margen de interés neto equivalente fiscal de la compañía aumentó al 2.70% desde el 2.52%. Los depósitos totales crecieron a 3.309 mil millones de dólares, un aumento de 95.5 millones de dólares respecto al segundo trimestre, con depósitos no remunerados que representan el 44.5% del total de depósitos. La Junta declaró un dividendo en efectivo de 0.25 dólares por acción. Los resultados acumulados hasta la fecha en 2024 reflejaron una pérdida antes de impuestos de 32.5 millones de dólares por la reestructuración del balance del segundo trimestre.
마린은행 밴콥 (BMRC)는 2024년 3분기 순이익이 460만 달러에 달했다고 보고했으며, 이는 2024년 2분기의 순손실 2190만 달러에 비해 개선된 수치입니다. 3분기 희석 주당 순이익은 0.28달러로, 2분기 -1.36달러의 손실에 비해 개선되었습니다. 회사의 세금 동등 순이자 마진은 2.70%로 증가했으며, 이는 2.52%에서 상승한 수치입니다. 총 예금은 33억 9000만 달러로 증가했으며, 이는 2분기 대비 9550만 달러의 증가를 나타냅니다. 비이자 예금은 총 예금의 44.5%로 늘어났습니다. 이사회는 주당 0.25달러의 현금 배당금을 선언하였습니다. 2024년 누적 결과는 2분기 재무제표 재구성으로 인한 3250만 달러의 세전 손실을 반영하였습니다.
Bank of Marin Bancorp (BMRC) a déclaré un revenu net de 4,6 millions de dollars pour le troisième trimestre 2024, par rapport à une perte nette de 21,9 millions de dollars au deuxième trimestre 2024. Le bénéfice par action dilué s'établit à 0,28 dollar pour le troisième trimestre, contre une perte de $(1,36) au deuxième trimestre. La marge d'intérêt net équivalente fiscale de l'entreprise a augmenté à 2,70% contre 2,52%. Les dépôts totaux ont augmenté à 3,309 milliards de dollars, soit une hausse de 95,5 millions de dollars par rapport au deuxième trimestre, avec des dépôts non rémunérés représentant 44,5% du total des dépôts. Le Conseil a déclaré un dividende en espèces de 0,25 dollar par action. Les résultats de l'année à ce jour pour 2024 ont montré une perte avant impôt de 32,5 millions de dollars due à la restructuration du bilan du deuxième trimestre.
Bank of Marin Bancorp (BMRC) hat im dritten Quartal 2024 einen Nettogewinn von 4,6 Millionen Dollar gemeldet, im Vergleich zu einem Nettoverlust von 21,9 Millionen Dollar im zweiten Quartal 2024. Der verwässerte Gewinn je Aktie betrug 0,28 Dollar im dritten Quartal, während es im zweiten Quartal einen Verlust von $(1,36) gab. Die steuerlich angepasste Nettozinsmarge des Unternehmens stieg von 2,52% auf 2,70%. Die Gesamteinlagen wuchsen auf 3,309 Milliarden Dollar, was einem Anstieg von 95,5 Millionen Dollar im Vergleich zum zweiten Quartal entspricht, wobei die nicht verzinslichen Einlagen 44,5% der Gesamteinlagen ausmachten. Der Vorstand erklärte eine Bardividende von 0,25 Dollar pro Aktie. Die Ergebnisse bis dato für 2024 spiegelten einen Vorsteuerverlust von 32,5 Millionen Dollar aufgrund der Umstrukturierung der Bilanz im zweiten Quartal wider.
- Return to profitability with $4.6M net income in Q3 vs $21.9M loss in Q2
- Net interest margin improved to 2.70% from 2.52%
- Total deposits increased by $95.5M to $3.309B
- Non-interest bearing deposits increased to 44.5% of total deposits
- Strong capital position with 16.40% total risk-based capital ratio
- Year-to-date net loss of $14.4M compared to $19.3M income in prior year
- Non-accrual loans increased to $39.9M (1.91% of portfolio) from $33.7M (1.62%)
- High efficiency ratio of 75.18% indicating elevated operating costs
- $615K legal settlement impacting earnings
Insights
The Q3 2024 results show meaningful improvement with
The balance sheet restructuring from Q2 is delivering expected benefits through higher-yielding assets. Credit quality metrics remain solid with no provision needed this quarter, though non-accrual loans increased to
While efficiency ratio at
The credit profile shows mixed signals. While classified loans decreased to
The allowance for credit losses remains stable at
Strategic Actions Taken in First Half of 2024 Result in Improved Profitability
Concurrent with this release, Bancorp issued presentation slides providing supplemental information, some of which will be discussed during the third quarter 2024 earnings call. The earnings release and presentation slides are intended to be reviewed together and can be found online on Bank of Marin’s website at www.bankofmarin.com under “Investor Relations.”
“The strategic, proactive steps we took to reposition our balance sheet and reduce operating expenses in the first half of the year delivered the net interest margin expansion and improved profitability that we expected in our third quarter results,” said Tim Myers, President and Chief Executive Officer. “We also continued to invest in talent, and our banking teams generated a steady volume of attractive lending opportunities while maintaining our strong underwriting criteria and overall credit quality. We added higher yielding assets in the third quarter and positioned the bank for ongoing growth we believe will further support our margin in coming quarters.
“We also grew our deposits in the quarter, primarily with non-interest bearing accounts,” Myers added. “Our proven relationship banking model enables us to attract new customers and deepen ties with existing ones via high-touch service on deposits. We expect these positive trends on both sides of our balance sheet to continue, driving additional momentum and ongoing improvement in our financial performance on behalf of our shareholders.”
Bancorp also provided the following highlights for the third quarter of 2024:
-
The tax-equivalent net interest margin increased to
2.70% in the third quarter from2.52% , reflecting the addition of higher average earning assets from the second quarter balance sheet restructuring, including new loans funded and purchased at yields higher than both the portfolio average yield and loans that paid off. -
The average cost of total deposits increased only 1 basis point to
1.46% in the third quarter compared to a 7 basis point increase in the prior quarter. After a targeted effort to begin reducing rates was initiated mid-August, the average spot rate on non-deposit-network, interest-bearing deposits declined 18 bps while balances went up approximately$10.0 million -
There was no provision for credit losses on loans in the third quarter and a
$233 thousand $5.2 million 1.47% of total loans compared to June 30, 2024. -
Classified loans decreased to
2.51% of total loans compared to2.63% last quarter largely due to the payoff in full of a$1.8 million -
Total deposits of
$3.30 9 billion$95.5 million $3.21 4 billion44.5% of total deposits as of September 30, 2024, compared to44.1% as of June 30, 2024. -
Return on average assets ("ROA") was
0.48% for the third quarter of 2024 and return on average equity ("ROE") was4.17% . The efficiency ratio for the third quarter of 2024 was75.18% . -
Capital was above well-capitalized regulatory thresholds with total risk-based capital ratios of
16.40% and15.82% as of September 30, 2024 for Bancorp and the Bank, respectively. Bancorp's tangible common equity to tangible assets ("TCE ratio") was9.72% as of September 30, 2024, and the Bank's TCE ratio was9.32% . The Bancorp's TCE ratio net of after-tax unrealized losses on held-to-maturity securities as if the losses were realized1 was8.16% as of September 30, 2024. -
Bancorp repurchased
$4.2 million $27.17 $26.72 $22.46 $22.05 -
Non-interest expense included an accrual for a non-repeatable legal resolution of a Private Attorneys General Act / putative class action lawsuit of approximately
$615 thousand $0.04 -
The Board of Directors declared a cash dividend of
$0.25
“As we have throughout our 30-plus years, we maintain consistently high capital and liquidity levels, while prudently managing costs even as we generate new business and pursue more robust loan growth,” said Tani Girton, Executive Vice President and Chief Financial Officer.
“As we often do, we expect to see seasonal strengthening in loan production in the fourth quarter as our commercial borrowers firm up year-ahead budgets and align credit plans with their growth initiatives for 2025,” Girton continued. “Our pipeline is well-diversified across industries and throughout our
__________
1 Refer to the discussion and reconciliation of this non-GAAP financial measure in the section below entitled Statement Regarding Use of Non-GAAP Financial Measures.
2 Tangible book value per share is a non-GAAP financial measure used by Bancorp, as well as investors and analysts, in assessing Bancorp’s use of equity. Refer to the reconciliation of common equity to tangible common equity and resulting calculation of tangible book value per share in the section below entitled Statement Regarding Use of Non-GAAP Financial Measures.
Loans and Credit Quality
Loans increased by
Loan payoffs were
Non-accrual loans totaled
Bank of
Accruing loans past due 30 to 89 days excluding non-accrual totaled
Loans designated special mention, which are not considered adversely classified, decreased by
There were no net charge-offs for the third quarter of 2024, compared to net charge-offs of
There was no provision for credit losses on loans in the third quarter compared to
There was a reversal of provision for credit losses on unfunded loan commitments of
Cash, Cash Equivalents and Restricted Cash
Total cash, cash equivalents and restricted cash were
Investments
The investment securities portfolio totaled
Deposits
Deposits increased
Borrowings and Liquidity
At September 30, 2024, the Bank had no outstanding borrowings, consistent with June 30, 2024. While available as a liquidity source, we have not utilized brokered deposits. Net available funding sources, including unrestricted cash, unencumbered available-for-sale securities and total available borrowing capacity totaled
The following table details the components of our contingent liquidity sources as of September 30, 2024.
|
Total Available |
Amount Used |
Net Availability |
|||
Internal Sources |
|
|
|
|||
Unrestricted cash 1 |
$ |
204.9 |
$ |
— |
$ |
204.9 |
Unencumbered securities at market value |
|
302.3 |
|
— |
|
302.3 |
External Sources |
|
|
|
|||
FHLB line of credit |
|
923.6 |
|
— |
|
923.6 |
FRB line of credit |
|
377.8 |
|
— |
|
377.8 |
Lines of credit at correspondent banks |
|
125.0 |
|
— |
|
125.0 |
Total Liquidity |
$ |
1,933.6 |
$ |
— |
$ |
1,933.6 |
1 Excludes cash items in transit as of September 30, 2024. |
||||||
Note: Brokered deposits available through third-party networks are not included above. |
||||||
Capital Resources
The total risk-based capital ratio for Bancorp was
Bancorp's tangible common equity to tangible assets ("TCE ratio") was
Earnings
Net Interest Income
Net interest income totaled
Net interest income totaled
The tax-equivalent net interest margin was
The tax-equivalent net interest margin was
Non-Interest Income
Non-interest income was
Non-interest income showed a loss of
Non-Interest Expense
Non-interest expense totaled
Non-interest expense totaled
Statement Regarding use of Non-GAAP Financial Measures
Financial results are presented in accordance with GAAP and with reference to certain non-GAAP financial measures. Management believes that, given industry turmoil that largely began in the first quarter of 2023, the presentation of Bancorp's non-GAAP TCE ratio reflecting the after tax impact of unrealized losses on held-to-maturity securities provides useful supplemental information to investors because it reflects the level of capital remaining after a hypothetical liquidation of the entire securities portfolio. In addition, management believes that providing selected financial measures excluding the loss on sale of securities discussed above is useful to investors as the strategic short-term loss taken for long-term profitability makes the operational performance difficult to compare to other periods. Because there are limits to the usefulness of this or any other non-GAAP measure to investors, Bancorp encourages readers to consider its annual and quarterly consolidated financial statements and notes related thereto for their entirety, as filed with the Securities and Exchange Commission, and not to rely on any single financial measure. A reconciliation of the GAAP financial measures to comparable non-GAAP financial measures is presented below.
Reconciliation of GAAP and Non-GAAP Financial Measures
(in thousands, except per share amounts; unaudited) |
|
September 30,
|
June 30,
|
December 31,
|
||||||
Tangible Common Equity - Bancorp |
|
|
|
|
||||||
Total stockholders' equity |
|
$ |
436,960 |
|
$ |
434,943 |
|
$ |
439,062 |
|
Goodwill and core deposit intangible |
|
|
(75,782 |
) |
|
(76,023 |
) |
|
(76,520 |
) |
Total TCE |
a |
|
361,178 |
|
|
358,920 |
|
|
362,542 |
|
Unrealized losses on HTM securities, net of tax1 |
|
|
(70,837 |
) |
|
(93,600 |
) |
|
(86,500 |
) |
Unrealized losses on HTM securities included in AOCI, net of tax 2 |
|
|
7,951 |
|
|
8,222 |
|
|
8,761 |
|
TCE, net of unrealized losses on HTM securities (non-GAAP) |
b |
$ |
298,292 |
|
$ |
273,542 |
|
$ |
284,803 |
|
Total assets |
|
$ |
3,792,833 |
|
$ |
3,694,728 |
|
$ |
3,803,903 |
|
Goodwill and core deposit intangible |
|
|
(75,782 |
) |
|
(76,023 |
) |
|
(76,520 |
) |
Total tangible assets |
c |
|
3,717,051 |
|
|
3,618,705 |
|
|
3,727,383 |
|
Unrealized losses on HTM securities, net of tax1 |
|
|
(70,837 |
) |
|
(93,600 |
) |
|
(86,500 |
) |
Unrealized losses on HTM securities included in AOCI, net of tax |
|
|
7,951 |
|
|
8,222 |
|
|
8,761 |
|
Total tangible assets, net of unrealized losses on HTM securities (non-GAAP) |
d |
$ |
3,654,165 |
|
$ |
3,533,327 |
|
$ |
3,649,644 |
|
Bancorp TCE ratio |
a / c |
|
9.7 |
% |
|
9.9 |
% |
|
9.7 |
% |
Bancorp TCE ratio, net of unrealized losses on HTM securities (non-GAAP) |
b / d |
|
8.2 |
% |
|
7.7 |
% |
|
7.8 |
% |
Tangible Book Value Per Share |
|
|
|
|
||||||
Common shares outstanding |
e |
|
16,083 |
|
|
16,278 |
|
|
16,158 |
|
Book value per share |
|
$ |
27.17 |
|
$ |
26.72 |
|
$ |
27.17 |
|
Tangible book value per share |
a / e |
$ |
22.46 |
|
$ |
22.05 |
|
$ |
22.44 |
|
1 Unrealized losses on held-to-maturity securities as of September 30, 2024, June 30, 2024 and December 31, 2023 of |
||||||||||
2 The remaining unrealized losses that resulted from the transfer of securities from AFS to HTM, net of an estimated |
||||||||||
(in thousands, except per share amounts; unaudited) |
Three months ended |
|
Nine months ended |
||||||||||||
Net (loss) income |
September 30,
|
June 30,
|
|
September 30,
|
September 30,
|
||||||||||
Net (loss) income (GAAP) |
$ |
4,570 |
|
$ |
(21,902 |
) |
|
$ |
(14,410 |
) |
$ |
19,285 |
|
||
Adjustments: |
|
|
|
|
|
||||||||||
Losses on sale of investment securities from portfolio repositioning |
|
— |
|
|
32,542 |
|
|
|
32,542 |
|
|
— |
|
||
Related income tax benefit |
|
— |
|
|
(9,620 |
) |
|
|
(9,620 |
) |
|
— |
|
||
Adjustments, net of taxes |
|
— |
|
|
22,922 |
|
|
|
22,922 |
|
|
— |
|
||
Comparable net income (non-GAAP) |
$ |
4,570 |
|
$ |
1,020 |
|
|
$ |
8,512 |
|
$ |
19,285 |
|
||
Diluted (loss) earnings per share |
|
|
|
|
|
||||||||||
Weighted average diluted shares |
|
16,066 |
|
|
16,108 |
|
|
|
16,076 |
|
|
16,017 |
|
||
Diluted (loss) earnings per share (GAAP) |
$ |
0.28 |
|
$ |
(1.36 |
) |
|
$ |
(0.90 |
) |
$ |
1.20 |
|
||
Comparable diluted earnings per share (non-GAAP) |
$ |
0.28 |
|
$ |
0.06 |
|
|
$ |
0.53 |
|
$ |
1.20 |
|
||
Return on average assets |
|
|
|
|
|
||||||||||
Average assets |
$ |
3,763,660 |
|
$ |
3,751,159 |
|
|
$ |
3,775,320 |
|
$ |
4,119,130 |
|
||
Return on average assets (GAAP) |
|
0.48 |
% |
|
(2.35 |
)% |
|
|
(0.51 |
)% |
|
0.63 |
% |
||
Comparable return on average assets (non-GAAP) |
|
0.48 |
% |
|
0.11 |
% |
|
|
0.30 |
% |
|
0.63 |
% |
||
Return on average equity |
|
|
|
|
|
||||||||||
Average stockholders' equity |
$ |
435,645 |
|
$ |
432,692 |
|
|
$ |
434,773 |
|
$ |
424,606 |
|
||
Return on average equity (GAAP) |
|
4.17 |
% |
|
(20.36 |
)% |
|
|
(4.43 |
)% |
|
6.07 |
% |
||
Comparable return on average equity (non-GAAP) |
|
4.17 |
% |
|
0.95 |
% |
|
|
2.62 |
% |
|
6.07 |
% |
||
Efficiency ratio |
|
|
|
|
|
||||||||||
Non-interest expense |
$ |
20,417 |
|
$ |
21,894 |
|
|
$ |
63,480 |
|
$ |
60,192 |
|
||
Net interest income |
$ |
24,269 |
|
$ |
22,467 |
|
|
$ |
69,430 |
|
$ |
78,497 |
|
||
Non-interest income (GAAP) |
$ |
2,888 |
|
$ |
(29,755 |
) |
|
$ |
(24,113 |
) |
$ |
8,272 |
|
||
Losses on sale of investment securities from portfolio repositioning |
|
— |
|
|
32,542 |
|
|
|
32,542 |
|
|
— |
|
||
Non-interest income (non-GAAP) |
$ |
2,888 |
|
$ |
2,787 |
|
|
$ |
8,429 |
|
$ |
8,272 |
|
||
Efficiency ratio (GAAP) |
|
75.18 |
% |
|
(300.37 |
)% |
|
|
140.08 |
% |
|
69.37 |
% |
||
Comparable efficiency ratio (non-GAAP) |
|
75.18 |
% |
|
86.70 |
% |
|
|
81.53 |
% |
|
69.37 |
% |
||
Share Repurchase Program
On July 21, 2023, the Board of Directors approved the adoption of Bancorp's share repurchase program for up to
Earnings Call and Webcast Information
Bank of Marin Bancorp (Nasdaq: BMRC) will present its third quarter financial results call via webcast on Monday, October 28, 2024 at 8:30 a.m. PT/11:30 a.m. ET. Investors can listen to the webcast online through Bank of Marin’s website at www.bankofmarin.com. under “Investor Relations.” To listen to the live call, 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. Closed captioning will be available during the live webcast, as well as on the webcast replay.
About Bank of Marin Bancorp
Founded in 1990 and headquartered in
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, general economic conditions and the economic uncertainty in
BANK OF |
|||||||||||||
|
Three months ended |
|
Nine months ended |
||||||||||
(in thousands, except per share amounts; unaudited) |
September 30,
|
June 30,
|
|
September 30,
|
September 30,
|
||||||||
Selected operating data and performance ratios: |
|
|
|
|
|
||||||||
Net income (loss) |
$ |
4,570 |
|
$ |
(21,902 |
) |
|
$ |
(14,410 |
) |
$ |
19,285 |
|
Diluted earnings (loss) per common share |
$ |
0.28 |
|
$ |
(1.36 |
) |
|
$ |
(0.90 |
) |
$ |
1.20 |
|
Return on average assets |
|
0.48 |
% |
|
(2.35 |
)% |
|
|
(0.51 |
)% |
|
0.63 |
% |
Return on average equity |
|
4.17 |
% |
|
(20.36 |
)% |
|
|
(4.43 |
)% |
|
6.07 |
% |
Efficiency ratio |
|
75.18 |
% |
|
(300.37 |
)% |
|
|
140.08 |
% |
|
69.37 |
% |
Tax-equivalent net interest margin |
|
2.70 |
% |
|
2.52 |
% |
|
|
2.57 |
% |
|
2.66 |
% |
Cost of deposits |
|
1.46 |
% |
|
1.45 |
% |
|
|
1.43 |
% |
|
0.61 |
% |
Cost of funds |
|
1.46 |
% |
|
1.46 |
% |
|
|
1.43 |
% |
|
0.94 |
% |
Net charge-offs (recoveries) |
$ |
— |
|
$ |
26 |
|
|
$ |
47 |
|
$ |
(2 |
) |
Net charge-offs to average loans |
|
NM |
|
|
NM |
|
|
|
NM |
|
|
NM |
|
(in thousands; unaudited) |
September 30,
|
June 30,
|
December 31,
|
||||||
Selected financial condition data: |
|
|
|
||||||
Total assets |
$ |
3,792,833 |
|
$ |
3,694,728 |
|
$ |
3,803,903 |
|
Loans: |
|
|
|
||||||
Commercial and industrial |
$ |
160,390 |
|
$ |
169,247 |
|
$ |
153,750 |
|
Real estate: |
|
|
|
||||||
Commercial owner-occupied |
|
318,712 |
|
|
325,091 |
|
|
333,181 |
|
Commercial non-owner occupied |
|
1,266,377 |
|
|
1,267,841 |
|
|
1,219,385 |
|
Construction |
|
39,326 |
|
|
51,239 |
|
|
99,164 |
|
Home equity |
|
86,479 |
|
|
88,045 |
|
|
82,087 |
|
Other residential |
|
150,573 |
|
|
114,054 |
|
|
118,508 |
|
Installment and other consumer loans |
|
68,234 |
|
|
66,882 |
|
|
67,645 |
|
Total loans |
$ |
2,090,091 |
|
$ |
2,082,399 |
|
$ |
2,073,720 |
|
Non-accrual loans: 1 |
|
|
|
||||||
Commercial and industrial |
$ |
7,483 |
|
$ |
9,280 |
|
$ |
4,008 |
|
Real estate: |
|
|
|
||||||
Commercial owner-occupied |
|
1,578 |
|
|
1,306 |
|
$ |
434 |
|
Commercial non-owner occupied |
|
29,229 |
|
|
21,458 |
|
|
3,081 |
|
Home equity |
|
1,161 |
|
|
1,197 |
|
|
469 |
|
Installment and other consumer loans |
|
432 |
|
|
438 |
|
|
— |
|
Total non-accrual loans |
$ |
39,883 |
|
$ |
33,679 |
|
$ |
7,992 |
|
Classified loans (graded substandard and doubtful) |
$ |
52,430 |
|
$ |
54,684 |
|
$ |
32,324 |
|
Classified loans as a percentage of total loans |
|
2.51 |
% |
|
2.63 |
% |
|
1.56 |
% |
Total accruing loans 30-89 days past due |
$ |
6,886 |
|
$ |
2,176 |
|
$ |
1,017 |
|
Total accruing loans 90+ days past due 1 |
$ |
— |
|
$ |
8,118 |
|
$ |
— |
|
Allowance for credit losses to total loans |
|
1.47 |
% |
|
1.47 |
% |
|
1.21 |
% |
Allowance for credit losses to non-accrual loans |
|
0.77 |
x |
|
0.91 |
x |
|
3.15 |
x |
Non-accrual loans to total loans |
|
1.91 |
% |
|
1.62 |
% |
|
0.39 |
% |
Total deposits |
$ |
3,309,249 |
|
$ |
3,213,777 |
|
$ |
3,290,075 |
|
Loan-to-deposit ratio |
|
63.16 |
% |
|
62.80 |
% |
|
63.03 |
% |
Stockholders' equity |
$ |
436,960 |
|
$ |
434,943 |
|
$ |
439,062 |
|
Book value per share |
$ |
27.17 |
|
$ |
26.72 |
|
$ |
27.17 |
|
Tangible book value per share |
$ |
22.46 |
|
$ |
22.05 |
|
$ |
22.44 |
|
Tangible common equity to tangible assets - Bank |
|
9.32 |
% |
|
9.27 |
% |
|
9.53 |
% |
Tangible common equity to tangible assets - Bancorp |
|
9.72 |
% |
|
9.92 |
% |
|
9.73 |
% |
Total risk-based capital ratio - Bank |
|
15.82 |
% |
|
15.54 |
% |
|
16.62 |
% |
Total risk-based capital ratio - Bancorp |
|
16.40 |
% |
|
16.46 |
% |
|
16.89 |
% |
Full-time equivalent employees |
|
288 |
|
|
321 |
|
|
329 |
|
1 There was one non-owner occupied commercial real estate loan 90 days past due and accruing interest as of June 30, 2024 that was in extended renewal negotiations and well-secured that was expected to be restored to a current payment status. However, as of September 30, 2024 the loan has been placed on non-accrual status due to ongoing negotiations, but with no expectations for actual losses. There were no non-performing loans over 90 days past due and accruing interest as of December 31, 2023. |
|||||||||
NM - Not meaningful |
|||||||||
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CONDITION |
|||||||||
(in thousands, except share data; unaudited) |
September 30,
|
June 30,
|
December 31,
|
||||||
Assets |
|
|
|
||||||
Cash, cash equivalents and restricted cash |
$ |
229,172 |
|
$ |
231,408 |
|
$ |
30,453 |
|
Investment securities: |
|
|
|
||||||
Held-to-maturity, at amortized cost (net of zero allowance for credit losses at September 30, 2024, June 30, 2024 and December 31, 2023) |
|
888,804 |
|
|
904,610 |
|
|
925,198 |
|
Available-for-sale (at fair value; amortized cost of |
|
368,188 |
|
|
252,917 |
|
|
552,028 |
|
Total investment securities |
|
1,256,992 |
|
|
1,157,527 |
|
|
1,477,226 |
|
Loans, at amortized cost |
|
2,090,091 |
|
|
2,082,399 |
|
|
2,073,720 |
|
Allowance for credit losses on loans |
|
(30,675 |
) |
|
(30,675 |
) |
|
(25,172 |
) |
Loans, net of allowance for credit losses on loans |
|
2,059,416 |
|
|
2,051,724 |
|
|
2,048,548 |
|
Goodwill |
|
72,754 |
|
|
72,754 |
|
|
72,754 |
|
Bank-owned life insurance |
|
70,595 |
|
|
70,168 |
|
|
68,102 |
|
Operating lease right-of-use assets |
|
19,745 |
|
|
20,460 |
|
|
20,316 |
|
Bank premises and equipment, net |
|
7,010 |
|
|
7,263 |
|
|
7,792 |
|
Core deposit intangible, net |
|
3,028 |
|
|
3,269 |
|
|
3,766 |
|
Interest receivable and other assets |
|
74,121 |
|
|
80,155 |
|
|
74,946 |
|
Total assets |
$ |
3,792,833 |
|
$ |
3,694,728 |
|
$ |
3,803,903 |
|
|
|
|
|
||||||
Liabilities and Stockholders' Equity |
|
|
|
||||||
Liabilities |
|
|
|
||||||
Deposits: |
|
|
|
||||||
Non-interest bearing |
$ |
1,473,379 |
|
$ |
1,417,661 |
|
$ |
1,441,987 |
|
Interest bearing: |
|
|
|
||||||
Transaction accounts |
|
181,001 |
|
|
178,712 |
|
|
225,040 |
|
Savings accounts |
|
222,588 |
|
|
228,946 |
|
|
233,298 |
|
Money market accounts |
|
1,156,483 |
|
|
1,121,336 |
|
|
1,138,433 |
|
Time accounts |
|
275,798 |
|
|
267,122 |
|
|
251,317 |
|
Total deposits |
|
3,309,249 |
|
|
3,213,777 |
|
|
3,290,075 |
|
Borrowings and other obligations |
|
193 |
|
|
231 |
|
|
26,298 |
|
Operating lease liabilities |
|
22,278 |
|
|
23,016 |
|
|
22,906 |
|
Interest payable and other liabilities |
|
24,153 |
|
|
22,761 |
|
|
25,562 |
|
Total liabilities |
|
3,355,873 |
|
|
3,259,785 |
|
|
3,364,841 |
|
Stockholders' Equity |
|
|
|
||||||
Preferred stock, no par value, Authorized - 5,000,000 shares, none issued |
|
— |
|
|
— |
|
|
— |
|
Common stock, no par value, Authorized - 30,000,000 shares; issued and outstanding - 16,082,881, 16,278,260 and 16,158,413 at September 30, 2024, June 30, 2024 and December 31, 2023, respectively |
|
215,465 |
|
|
218,773 |
|
|
217,498 |
|
Retained earnings |
|
247,983 |
|
|
247,477 |
|
|
274,570 |
|
Accumulated other comprehensive loss, net of taxes |
|
(26,488 |
) |
|
(31,307 |
) |
|
(53,006 |
) |
Total stockholders' equity |
|
436,960 |
|
|
434,943 |
|
|
439,062 |
|
Total liabilities and stockholders' equity |
$ |
3,792,833 |
|
$ |
3,694,728 |
|
$ |
3,803,903 |
|
| BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
|||||||||||||
|
Three months ended |
|
Nine months ended |
||||||||||
(in thousands, except per share amounts; unaudited) |
September 30,
|
June 30,
|
|
September 30,
|
September 30,
|
||||||||
Interest income |
|
|
|
|
|
||||||||
Interest and fees on loans |
$ |
25,483 |
|
$ |
25,109 |
|
|
$ |
75,612 |
|
$ |
73,541 |
|
Interest on investment securities |
|
7,594 |
|
|
8,299 |
|
|
|
24,698 |
|
|
29,371 |
|
Interest on federal funds sold and due from banks |
|
3,242 |
|
|
924 |
|
|
|
4,487 |
|
|
1,159 |
|
Total interest income |
|
36,319 |
|
|
34,332 |
|
|
|
104,797 |
|
|
104,071 |
|
Interest expense |
|
|
|
|
|
||||||||
Interest on interest-bearing transaction accounts |
|
339 |
|
|
274 |
|
|
|
874 |
|
|
758 |
|
Interest on savings accounts |
|
565 |
|
|
511 |
|
|
|
1,447 |
|
|
545 |
|
Interest on money market accounts |
|
8,714 |
|
|
8,641 |
|
|
|
25,804 |
|
|
11,365 |
|
Interest on time accounts |
|
2,431 |
|
|
2,291 |
|
|
|
7,002 |
|
|
2,724 |
|
Interest on borrowings and other obligations |
|
1 |
|
|
148 |
|
|
|
240 |
|
|
10,182 |
|
Total interest expense |
|
12,050 |
|
|
11,865 |
|
|
|
35,367 |
|
|
25,574 |
|
Net interest income |
|
24,269 |
|
|
22,467 |
|
|
|
69,430 |
|
|
78,497 |
|
Provision for credit losses on loans |
|
— |
|
|
5,200 |
|
|
|
5,550 |
|
|
1,275 |
|
Reversal of credit losses on unfunded loan commitments |
|
(233 |
) |
|
— |
|
|
|
(233 |
) |
|
(342 |
) |
Net interest income after provision for (reversal of) credit losses |
|
24,502 |
|
|
17,267 |
|
|
|
64,113 |
|
|
77,564 |
|
Non-interest income |
|
|
|
|
|
||||||||
Wealth management and trust services |
|
706 |
|
|
585 |
|
|
|
1,844 |
|
|
1,585 |
|
Service charges on deposit accounts |
|
543 |
|
|
541 |
|
|
|
1,613 |
|
|
1,561 |
|
Earnings on bank-owned life insurance, net |
|
426 |
|
|
421 |
|
|
|
1,282 |
|
|
1,438 |
|
Debit card interchange fees, net |
|
423 |
|
|
444 |
|
|
|
1,275 |
|
|
1,458 |
|
Dividends on Federal Home Loan Bank stock |
|
365 |
|
|
366 |
|
|
|
1,108 |
|
|
916 |
|
Merchant interchange fees, net |
|
67 |
|
|
10 |
|
|
|
244 |
|
|
377 |
|
Gains (losses) on sale of investment securities |
|
1 |
|
|
(32,542 |
) |
|
|
(32,541 |
) |
|
14 |
|
Other income |
|
357 |
|
|
420 |
|
|
|
1,062 |
|
|
923 |
|
Total non-interest income |
|
2,888 |
|
|
(29,755 |
) |
|
|
(24,113 |
) |
|
8,272 |
|
Non-interest expense |
|
|
|
|
|
||||||||
Salaries and related benefits |
|
10,822 |
|
|
12,364 |
|
|
|
35,270 |
|
|
33,087 |
|
Occupancy and equipment |
|
2,097 |
|
|
2,049 |
|
|
|
6,115 |
|
|
6,367 |
|
Professional services |
|
1,879 |
|
|
1,043 |
|
|
|
4,000 |
|
|
2,677 |
|
Data processing |
|
1,051 |
|
|
1,005 |
|
|
|
3,126 |
|
|
2,976 |
|
Deposit network fees |
|
927 |
|
|
916 |
|
|
|
2,688 |
|
|
1,843 |
|
Federal Deposit Insurance Corporation insurance |
|
582 |
|
|
426 |
|
|
|
1,443 |
|
|
1,424 |
|
Information technology |
|
404 |
|
|
448 |
|
|
|
1,254 |
|
|
1,138 |
|
Depreciation and amortization |
|
358 |
|
|
379 |
|
|
|
1,125 |
|
|
1,705 |
|
Directors' expense |
|
293 |
|
|
306 |
|
|
|
916 |
|
|
893 |
|
Amortization of core deposit intangible |
|
241 |
|
|
246 |
|
|
|
738 |
|
|
1,020 |
|
Charitable contributions |
|
30 |
|
|
604 |
|
|
|
647 |
|
|
707 |
|
Other real estate owned |
|
— |
|
|
— |
|
|
|
— |
|
|
48 |
|
Other expense |
|
1,733 |
|
|
2,108 |
|
|
|
6,158 |
|
|
6,307 |
|
Total non-interest expense |
|
20,417 |
|
|
21,894 |
|
|
|
63,480 |
|
|
60,192 |
|
Income (loss) before provision for (benefit from) income taxes |
|
6,973 |
|
|
(34,382 |
) |
|
|
(23,480 |
) |
|
25,644 |
|
Provision for (benefit from) income taxes |
|
2,403 |
|
|
(12,480 |
) |
|
|
(9,070 |
) |
|
6,359 |
|
Net income (loss) |
$ |
4,570 |
|
$ |
(21,902 |
) |
|
$ |
(14,410 |
) |
$ |
19,285 |
|
Net income (loss) per common share |
|
|
|
|
|
||||||||
Basic |
$ |
0.28 |
|
$ |
(1.36 |
) |
|
$ |
(0.90 |
) |
$ |
1.21 |
|
Diluted |
$ |
0.28 |
|
$ |
(1.36 |
) |
|
$ |
(0.90 |
) |
$ |
1.20 |
|
Weighted average shares: |
|
|
|
|
|
||||||||
Basic |
|
16,038 |
|
|
16,108 |
|
|
|
16,076 |
|
|
16,002 |
|
Diluted |
|
16,066 |
|
|
16,108 |
|
|
|
16,076 |
|
|
16,017 |
|
Comprehensive income: |
|
|
|
|
|
||||||||
Net income (loss) |
$ |
4,570 |
|
$ |
(21,902 |
) |
|
$ |
(14,410 |
) |
$ |
19,285 |
|
Other comprehensive income (loss): |
|
|
|
|
|
||||||||
Change in net unrealized gains or losses on available-for-sale securities |
|
8,041 |
|
|
559 |
|
|
|
4,032 |
|
|
(8,507 |
) |
Reclassification adjustment for realized losses on available-for-sale securities in net income |
|
(1 |
) |
|
32,542 |
|
|
|
32,541 |
|
|
2,793 |
|
Reclassification adjustment for gains or losses on fair value hedges |
|
(1,584 |
) |
|
282 |
|
|
|
(85 |
) |
|
367 |
|
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity |
|
385 |
|
|
403 |
|
|
|
1,149 |
|
|
1,325 |
|
Other comprehensive income (loss), before tax |
|
6,841 |
|
|
33,786 |
|
|
|
37,637 |
|
|
(4,022 |
) |
Deferred tax expense (benefit) |
|
2,022 |
|
|
9,981 |
|
|
|
11,119 |
|
|
(1,188 |
) |
Other comprehensive income (loss), net of tax |
|
4,819 |
|
|
23,805 |
|
|
|
26,518 |
|
|
(2,834 |
) |
Total comprehensive income |
$ |
9,389 |
|
$ |
1,903 |
|
|
$ |
12,108 |
|
$ |
16,451 |
|
BANK OF MARIN BANCORP AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST INCOME |
||||||||||||
|
Three months ended |
Three months ended |
||||||||||
|
September 30, 2024 |
June 30, 2024 |
||||||||||
|
|
Interest |
|
|
Interest |
|
||||||
|
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ |
||||||
(in thousands) |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
||||||
Assets |
|
|
|
|
|
|
||||||
Interest-earning deposits with banks 1 |
$ |
238,378 |
$ |
3,242 |
5.32 |
% |
$ |
67,786 |
$ |
924 |
5.39 |
% |
Investment securities 2, 3 |
|
1,207,545 |
|
7,661 |
2.54 |
% |
|
1,430,939 |
|
8,367 |
2.34 |
% |
Loans 1, 3, 4, 5 |
|
2,091,146 |
|
25,588 |
4.79 |
% |
|
2,059,273 |
|
25,215 |
4.84 |
% |
Total interest-earning assets 1 |
|
3,537,069 |
|
36,491 |
4.04 |
% |
|
3,557,998 |
|
34,506 |
3.84 |
% |
Cash and non-interest-bearing due from banks |
|
37,448 |
|
|
|
37,248 |
|
|
||||
Bank premises and equipment, net |
|
7,181 |
|
|
|
7,420 |
|
|
||||
Interest receivable and other assets, net |
|
181,962 |
|
|
|
148,493 |
|
|
||||
Total assets |
$ |
3,763,660 |
|
|
$ |
3,751,159 |
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||||||
Interest-bearing transaction accounts |
$ |
177,929 |
$ |
339 |
0.76 |
% |
$ |
197,535 |
$ |
274 |
0.56 |
% |
Savings accounts |
|
227,179 |
|
565 |
0.99 |
% |
|
226,985 |
|
511 |
0.90 |
% |
Money market accounts |
|
1,147,786 |
|
8,714 |
3.02 |
% |
|
1,154,346 |
|
8,641 |
3.01 |
% |
Time accounts including CDARS |
|
267,637 |
|
2,431 |
3.61 |
% |
|
260,602 |
|
2,291 |
3.54 |
% |
Borrowings and other obligations 1 |
|
206 |
|
1 |
2.32 |
% |
|
10,909 |
|
148 |
5.35 |
% |
Total interest-bearing liabilities |
|
1,820,737 |
|
12,050 |
2.63 |
% |
|
1,850,377 |
|
11,865 |
2.58 |
% |
Demand accounts |
|
1,460,011 |
|
|
|
1,421,543 |
|
|
||||
Interest payable and other liabilities |
|
47,267 |
|
|
|
46,547 |
|
|
||||
Stockholders' equity |
|
435,645 |
|
|
|
432,692 |
|
|
||||
Total liabilities & stockholders' equity |
$ |
3,763,660 |
|
|
$ |
3,751,159 |
|
|
||||
Tax-equivalent net interest income/margin 1 |
|
$ |
24,441 |
2.70 |
% |
|
$ |
22,641 |
2.52 |
% |
||
Reported net interest income/margin 1 |
|
$ |
24,269 |
2.68 |
% |
|
$ |
22,467 |
2.50 |
% |
||
Tax-equivalent net interest rate spread |
|
|
1.41 |
% |
|
|
1.26 |
% |
||||
|
|
|
|
|
|
|
||||||
|
Nine months ended |
Nine months ended |
||||||||||
|
September 30, 2024 |
September 30, 2023 |
||||||||||
|
|
Interest |
|
|
Interest |
|
||||||
|
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ |
||||||
(in thousands) |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
||||||
Assets |
|
|
|
|
|
|
||||||
Interest-earning deposits with banks 1 |
$ |
110,337 |
$ |
4,487 |
5.34 |
% |
$ |
28,710 |
$ |
1,159 |
5.32 |
% |
Investment securities 2, 3 |
|
1,388,825 |
|
24,907 |
2.39 |
% |
|
1,797,054 |
|
29,731 |
2.21 |
% |
Loans 1, 3, 4, 5 |
|
2,072,684 |
|
75,934 |
4.81 |
% |
|
2,108,840 |
|
73,938 |
4.62 |
% |
Total interest-earning assets 1 |
|
3,571,846 |
|
105,328 |
3.87 |
% |
|
3,934,604 |
|
104,828 |
3.51 |
% |
Cash and non-interest-bearing due from banks |
|
36,669 |
|
|
|
38,641 |
|
|
||||
Bank premises and equipment, net |
|
7,436 |
|
|
|
8,457 |
|
|
||||
Interest receivable and other assets, net |
|
159,369 |
|
|
|
137,428 |
|
|
||||
Total assets |
$ |
3,775,320 |
|
|
$ |
4,119,130 |
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||||||
Interest-bearing transaction accounts |
$ |
196,752 |
$ |
874 |
0.59 |
% |
$ |
244,688 |
$ |
758 |
0.41 |
% |
Savings accounts |
|
228,096 |
|
1,447 |
0.85 |
% |
|
293,709 |
|
545 |
0.25 |
% |
Money market accounts |
|
1,150,911 |
|
25,804 |
2.99 |
% |
|
982,729 |
|
11,365 |
1.55 |
% |
Time accounts including CDARS |
|
264,290 |
|
7,002 |
3.54 |
% |
|
172,991 |
|
2,724 |
2.11 |
% |
Borrowings and other obligations 1 |
|
6,125 |
|
240 |
5.15 |
% |
|
260,973 |
|
10,182 |
5.14 |
% |
Total interest-bearing liabilities |
|
1,846,174 |
|
35,367 |
2.56 |
% |
|
1,955,090 |
|
25,574 |
1.75 |
% |
Demand accounts |
|
1,446,795 |
|
|
|
1,689,615 |
|
|
||||
Interest payable and other liabilities |
|
47,578 |
|
|
|
49,819 |
|
|
||||
Stockholders' equity |
|
434,773 |
|
|
|
424,606 |
|
|
||||
Total liabilities & stockholders' equity |
$ |
3,775,320 |
|
|
$ |
4,119,130 |
|
|
||||
Tax-equivalent net interest income/margin 1 |
|
$ |
69,961 |
2.57 |
% |
|
$ |
79,254 |
2.66 |
% |
||
Reported net interest income/margin 1 |
|
$ |
69,430 |
2.55 |
% |
|
$ |
78,497 |
2.63 |
% |
||
Tax-equivalent net interest rate spread |
|
|
1.31 |
% |
|
|
1.76 |
% |
||||
|
|
|
|
|
|
|
||||||
1 Interest income/expense is divided by actual number of days in the period times 360 days to correspond to stated interest rate terms, where applicable. |
||||||||||||
2 Yields on available-for-sale securities are calculated based on amortized cost balances rather than fair value, as changes in fair value are reflected as a component of stockholders' equity. Investment security interest is earned on 30/360 day basis monthly. |
||||||||||||
3 Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the Federal statutory rate of 21 percent. |
||||||||||||
4 Average balances on loans outstanding include non-performing loans. The amortized portion of net loan origination fees is included in interest income on loans, representing an adjustment to the yield. |
||||||||||||
5 Net loan origination costs in interest income totaled |
||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241028527178/en/
MEDIA CONTACT:
Yahaira Garcia-Perea
Marketing & Corporate Communications Manager
916-823-7214 | YahairaGarcia-Perea@bankofmarin.com
Source: Bank of Marin Bancorp
FAQ
What was Bank of Marin's (BMRC) earnings per share in Q3 2024?
How much did BMRC's deposits grow in Q3 2024?
What was BMRC's net interest margin in Q3 2024?
What dividend did BMRC declare for Q3 2024?
