NASDAQ$BMRC

Bank of Marin Bancorp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported earnings for the fourth quarter and full year 2021.

Bank of Marin Bancorp reported earnings of $9.7 million in Q4 2021, with diluted earnings per share of $0.61. The results reflect the benefits of scale gained through the acquisition of American River Bankshares.

  • Merger-related one-time and conversion costs reduced net income by $791 thousand, net of taxes, or 5 cents per share in the fourth quarter.
  • Loans increased $167.1 million in 2021, or 8%, to $2.256 billion at December 31, 2021.
  • Deposits grew $1.304 billion, or 52%, to $3.809 billion at December 31, 2021.
  • The efficiency ratio excluding merger-related one-time and conversion costs was 53.63% for the quarter ended December 31, 2021.

Headline financials

Total Revenue

$30.6M

Previous: $23.6M+29.8%
EPS (adj)

$0.66

Previous: $0.60+10.0%
Efficiency Ratio

56.9%

Previous: 59.7%-4.7%
Net Interest Margin

3.0%

Previous: 3.4%-10.9%
Return on Assets

0.9%

Previous: 1.1%-17.4%
Return on Equity

8.5%

Previous: 9.0%-5.3%
Cost of Deposits

0.1%

Previous: 0.1%-14.3%
Non-accrual Loans to Loans

0.4%

Previous: 0.4%-15.9%
Loan Loss Allowance % Loans

1.0%

Previous: 1.1%-7.3%
Risk Capital Ratio - Bancorp

14.6%

Previous: 16.0%-8.8%
Risk Capital Ratio - Bank

14.4%

Previous: 15.8%-8.9%
Capital Expenditures

$211K

Previous: $212K-0.5%
Free Cash Flow

$12.7M

Previous: $9.32M+36.5%
Net Income

$9.71M

Previous: $8.12M+19.7%
Operating Income

$13.6M

Previous: $11.1M+22.1%
Cash & Equivalents

$348M

Previous: $200M+73.5%
Total Assets

$4.31B

Previous: $2.91B+48.2%
Stock-Based Comp

$21K

Previous: $231K-90.9%

Revenue & EPS history

Bank of Marin · Revenue · Quarterly

$30.6M

Q4 2021+29.8%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
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 expects continued growth and strong results for shareholders in 2022, driven by robust loan production across their Northern California footprint and benefits from the acquisition of American River Bankshares.

Tailwinds

  • Anticipated growth in the Sacramento market with new commercial bankers.
  • Strong credit quality with low non-accrual loans.
  • Talent investments made in the fourth quarter to oversee and direct commercial banking growth.
  • Efficiency ratio improved, indicating a positive impact on operating earnings.
  • Deposit growth driven by new accounts and existing customer base.

Headwinds

  • Merger-related one-time and conversion costs impacted net income.
  • Tangible common equity to tangible assets declined due to share repurchases and deposit growth.
  • Decrease in cash and cash equivalents due to deployment of funds into investment securities.
  • Tax-equivalent net interest margin decreased due to a higher proportion of investment securities.
  • Increase in substandard loans due to one borrowing relationship negatively affected by the pandemic.

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 Q4 2021

Historical avgQ4 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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