Bank Marin Bancorp Stock Price, News & Analysis

Bank of Marin, a subsidiary of Bank of Marin Bancorp (Nasdaq: BMRC), has sold $293 million in available-for-sale securities as a part of its strategic plan to enhance future earnings, EPS growth, and return on equity. According to CEO Tim Myers, the bank's robust capital allows for proactive balance sheet repositioning to create additional shareholder value. The securities, accounting for 56% of the AFS portfolio with an average yield of 1.94%, were sold, leading to an estimated after-tax loss of $23 million to be recorded in Q2 2024. The proceeds will be reinvested into higher-yielding loans and short-duration securities, expected to yield 5.75% on average, improving net interest margin by 30 basis points annually, and adding $0.46 to EPS over the next four quarters.

Bank of Marin Bancorp, parent company of Bank of Marin, reported earnings of $2.9 million for the first quarter of 2024, compared to $610 thousand for the previous quarter and $9.4 million for the same period in 2023. Diluted EPS was $0.18 for the quarter. The net interest margin was stable at 2.50%, but climbing deposit rates impacted the margin. Non-accrual loans decreased, but classified loans increased. Loan balances remained stable, and deposits were essentially flat. The company declared a dividend of $0.25 per share. The TCE ratio increased, and capital ratios were above regulatory requirements. Net interest income decreased, while non-interest income improved. Non-interest expenses increased. The company provided a reconciliation of GAAP and non-GAAP financial measures.