NASDAQ$BMRC

Bank of Marin Bancorp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Bank of Marin Bancorp reported earnings of $610 thousand for the fourth quarter of 2023, with diluted earnings per share of $0.04. The results were impacted by a $5.9 million pretax net loss on the sale of investment securities and an $875 thousand increase in the pre-tax credit loss provision.

Bank of Marin Bancorp reported a net income of $610 thousand for Q4 2023, a significant decrease compared to the previous quarter. The diluted earnings per share were $0.04. The results were affected by strategic balance sheet restructuring, including a net loss on the sale of investment securities, and an increase in the provision for credit losses.

  • Net interest margin improved by 5 basis points over the preceding quarter to 2.53%.
  • Sold $131.9 million in available-for-sale investment securities, resulting in a net pretax loss of $5.9 million.
  • Provision for credit losses on loans was $1.3 million, bringing the allowance for credit losses to 1.21% of total loans.
  • Total deposits decreased by $153.6 million to $3.290 billion.

Headline financials

Total Revenue

$24.3M

Previous: $33.4M-27.3%
EPS (adj)

$0.30

Previous: $0.81-63.0%
Efficiency Ratio

91.9%

Previous: 50.9%+80.6%
Non-accrual Loans to Loans

0.4%

Previous: 0.1%+225.0%
Loan Loss Allowance % Loans

1.2%

No prior period
Loan-to-Deposit Ratio

63.0%

Previous: 58.6%+7.6%
TCE/TA - Bancorp

9.7%

Previous: 8.2%+18.7%
Risk Capital Ratio - Bancorp

16.9%

Previous: 15.9%+6.2%
Capital Expenditures

$12K

Previous: $1.5M-99.2%
Net Income

$610K

Previous: $12.9M-95.3%
Operating Income

$392K

No prior period
Stock-Based Comp

-$62K

Previous: $321K-119.3%

Revenue & EPS history

Bank of Marin · Revenue · Quarterly

$24.3M

Q4 2023-27.3%vs Q4 2022
Beat estimate in 6 of 15 quarters(40%)
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

The company expects that the full effect of the restructuring combined with selective growth in loans and the natural repricing of the existing loan book will continue to support net interest margin expansion. The company will continue to look for opportunities to make incremental adjustments across its balance sheet and expense structure to enhance profitability and self-fund improvements in efficiency and organizational effectiveness.

Tailwinds

  • Restructuring the balance sheet will bolster profitability in 2024
  • Improvement in loan originations, with yields significantly higher than those on loans paid off
  • Interest rate risk position is fairly neutral and would benefit from falling rates
  • Vigilant credit administration
  • Consistent expense discipline

Headwinds

  • Cost of restructuring the balance sheet
  • Elevated payoffs were the result of deliberate credit risk management, successful construction project completions and asset sales
  • Preparing for a potential protracted period of commercial and real estate weakness
  • Decline in deposits overall in the fourth quarter
  • Fourth quarter earnings reflect the cost of restructuring the balance sheet

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 2023

Historical avgQ4 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro