NASDAQ$BMRC

Bank of Marin Bancorp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported earnings decreased due to merger-related costs and provisions for credit losses on acquired loans.

Bank of Marin Bancorp reported earnings of $5.3 million for the third quarter of 2021, a decrease compared to the previous quarter and the same quarter last year. The results reflect the consolidated operations of American River Bankshares, which was acquired during the quarter. The merger contributed significantly to loan and deposit balances, increasing total assets and stockholder's equity.

  • Third quarter earnings were $5.3 million, down from $9.3 million in the second quarter of 2021 and $7.5 million in the third quarter of 2020.
  • Diluted earnings per share were $0.35 in the third quarter, compared to $0.71 in the prior quarter and $0.55 in the same quarter last year.
  • The merger with American River Bankshares contributed $419.4 million in loans and $790.0 million in deposits.
  • Total assets increased to $4.261 billion and total stockholder's equity to $458.5 million as of September 30, 2021, due to the merger.

Headline financials

Total Revenue

$31.3M

Previous: $26.4M+18.8%
EPS (adj)

$0.61

Previous: $0.55+10.9%
Efficiency Ratio

72.4%

Previous: 57.8%+25.3%
Net Interest Margin

3.1%

Previous: 3.4%-8.4%
Cost of Deposits

0.1%

Previous: 0.1%-33.3%
Non-accrual Loans to Loans

0.4%

Previous: 0.1%+414.3%
Loan Loss Allowance % Loans

1.0%

No prior period
Loan-to-Deposit Ratio

62.2%

No prior period
Risk Capital Ratio - Bancorp

15.0%

No prior period
Capital Expenditures

-$833K

Previous: -$769K-8.3%
Free Cash Flow

$4.45M

Previous: $6.72M-33.8%
Net Income

$5.28M

Previous: $7.49M-29.5%
Operating Income

$26.5M

Previous: $25.1M+5.5%
Gross Profit

$29.5M

Previous: $26.4M+12.0%
Cash & Equivalents

$585M

Previous: $214M+173.8%
Total Assets

$4.26B

Previous: $2.98B+43.2%
Stock-Based Comp

$213K

Previous: $187K+13.9%

Revenue & EPS history

Bank of Marin · Revenue · Quarterly

$31.3M

Q3 2021+18.8%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Bank of Marin · $2.12B total across 7 segments · Q1 2021

  • RE - Investor Owned
    $955M
  • Commercial & Industrial
    $545M
  • RE - Owner Occupied
    $308M
  • Other Residential
    $124M
  • Home Equity
    $96.6M
  • Construction
    $71.1M
  • Consumer Loans
    $21.4M

Forward guidance

Bank of Marin is focused on integrating American River Bankshares and leveraging the combined entity's strengths for long-term growth and shareholder returns.

Tailwinds

  • Smooth integration of American River Bankshares progressing, setting the stage for long-term growth.
  • Combined team committed to ensuring a seamless integration process.
  • Building a strong foundation to grow the franchise on a regional scale.
  • Addition of American River Bank teammates and new opportunities in the Sacramento market.
  • Well-positioned for success across Northern California’s key growth markets.

Headwinds

  • Merger-related factors impacted the results.
  • Merger-related one-time and conversion costs reduced net income by $3.9 million, net of taxes, or 26 cents per share in the quarter.
  • ROA and ROE ratios were also significantly impacted by provisions for credit losses on acquired loans and shares issued in conjunction with the merger.
  • Decrease in tax-equivalent margin from prior quarter was primarily attributed to a $262.7 million increase in due from banks interest-earning balances.
  • Decrease in tax-equivalent margin from third quarter of 2020 was primarily attributable to both $271.5 million increase in low yielding due from banks interest-earning balances and the lower interest rate environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.3%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+1.0%

Avg return

30 days after

56%

37 / 66 earnings

Positive

+8.6%

Q3 2015

Best reaction

-11.5%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%+0.0%+0.5%
Q4 2025+3.6%+1.6%+0.2%
Q3 2025+4.9%+5.2%+10.5%
Q2 2025-0.7%-2.1%+5.6%
Q1 2025+0.7%+2.6%+0.0%
Q4 2024+5.6%+5.3%+1.3%
Q3 2024+5.0%+1.6%+17.4%
Q2 2024-4.6%-16.4%-7.7%
Q1 2024-7.0%+0.8%-2.1%
Q4 2023-3.8%-11.0%-21.5%
Q3 2023-5.2%-2.6%+8.1%
Q2 2023-0.5%+7.1%-4.0%
Q1 2023-11.5%-15.0%-15.7%
Q4 2022-5.4%-6.1%-6.5%
Q3 2022+6.2%+13.4%+7.5%
Q2 2022+2.6%+2.0%-2.6%
Q1 2022-7.0%-5.2%-1.4%
Q4 2021+1.9%-2.0%-6.0%
Q3 2021+2.8%+0.2%-2.9%
Q2 2021+3.6%+2.5%+12.3%
Q1 2021-10.0%-8.0%-10.4%
Q4 2020-0.3%-6.8%-3.8%
Q3 2020-7.5%-8.0%+15.3%
Q2 2020+2.9%+1.2%+0.9%
Q1 2020-0.3%+0.9%+0.6%
Q4 2019+3.1%-0.2%-7.2%
Q3 2019+4.5%+3.8%+8.0%
Q2 2019+1.6%+3.5%-1.7%
Q1 2019-0.4%+0.0%-2.9%
Q4 2018+1.3%-0.2%+4.8%
Q3 2018+2.3%+3.5%+2.8%
Q2 2018+5.6%+6.4%+7.8%
Q1 2018+8.4%+7.1%+12.2%
Q4 2017-2.3%-2.7%-3.1%
Q3 2017+3.6%+5.6%+0.1%
Q2 2017+2.8%+7.0%+3.3%
Q1 2017-1.3%-8.1%-9.9%
Q4 2016+4.9%+2.1%+2.5%
Q3 2016+0.7%+0.2%+33.9%
Q2 2016-2.8%-4.3%-5.3%
Q1 2016+1.4%
Q4 2015+2.7%
Q3 2015+8.6%
Q2 2015-4.2%
Q1 2015+1.6%
Q4 2014-3.9%
Q3 2014+0.5%
Q2 2014+2.8%
Q1 2014-0.2%
Q4 2013-0.4%
Q3 2013-0.1%
Q2 2013-7.1%
Q1 2013+2.8%
Q4 2012+2.7%
Q3 2012-1.8%
Q2 2012+0.1%
Q1 2011+0.0%
Q1 2012+0.5%
Q4 2009+1.7%
Q4 2011+1.7%
Q4 2010+1.7%
Q3 2011-1.3%
Q3 2010-1.3%
Q2 2011+4.0%
Q2 2010+4.0%
Q1 2010-2.4%

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