Download PDF

1. Company Snapshot

1.a. Company Description

Bank of Marin Bancorp operates as the holding company for Bank of Marin that provides a range of financial services primarily to small to medium-sized businesses, professionals, not-for-profit organizations, and individuals in California, the United States.It offers personal and business checking and savings accounts; and individual retirement, health savings, and demand deposit marketplace accounts, as well as time certificates of deposit, certificate of deposit account registry and insured cash sweep services.The company also provides commercial real estate, commercial and industrial, and consumer loans, as well as construction financing and home equity lines of credit.


In addition, it offers merchant and payroll, and cash management services; credit cards; fraud detection tools; and mobile deposit, remote deposit capture, automated clearing house, wire transfer, and image lockbox services.Further, the company provides wealth management and trust services comprising customized investment portfolio management, financial planning, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and digital banking services.It operates through 12 branch offices in Marin, southern Sonoma counties, and north of San Francisco, California; and a loan production office in San Francisco.


The company was incorporated in 1989 and is headquartered in Novato, California.

Show Full description

1.b. Last Insights on BMRC

Bank of Marin Bancorp's recent performance was driven by strategic balance sheet repositioning, aimed at enhancing future earnings. The company's Q2 2025 earnings call highlighted active balance sheet management, leading to net interest margin expansion. A new $25 million stock repurchase program was authorized, demonstrating confidence in the company's financials. Additionally, the options market is predicting a potential spike in stock price, according to recent market movements. Keefe Bruyette raised the price target by $1, citing positive factors.

1.c. Company Highlights

2. Bank of Marin Bancorp's Q3 Earnings: A Strong Performance

Bank of Marin Bancorp reported a net income of $7.5 million, or $0.47 per share, for the third quarter, representing a 65% increase from the same period last year. The company's net interest income rose to $28.2 million, driven by a higher balance of average earning assets and a 17 basis point increase in asset yield. The net interest margin expanded due to a 4 basis point decline in spot cost of deposits to 1.25%. The earnings per share (EPS) of $0.47 exceeded analyst estimates of $0.42, indicating a strong operational performance.

Publication Date: Nov -20

📋 Highlights
  • Net Income Surge:: Q3 net income of $7.5M ($0.47/share) marks a 65% increase YoY, driven by higher net interest income and improved margins.
  • Net Interest Income Growth:: Rose to $28.2M (+$3.4M QoQ), fueled by a 17-bp asset yield increase and $4.4B in average earning assets.
  • Strong Capital Position:: Total risk-based capital ratio at 16.13% and TCE ratio of 9.72%, reflecting robust risk-adjusted capital adequacy.
  • Loan Production Boost:: $101M in total loan originations ($69M funded), the highest since Q2 2022, with a robust pipeline for Q4.
  • Share Repurchase Activity:: $1.1M spent on buybacks below tangible book value, signaling shareholder value prioritization.

Loan Originations and Deposit Growth

During the quarter, total loan originations were $101 million, including $69 million in fundings, the largest since Q2 2022. The company's loan pipeline remains strong, and it expects solid loan production in the fourth quarter. Deposits increased due to a combination of increased balances from long-time clients and new relationships, with the company experiencing a consistent flow of around 1,000 new accounts per quarter.

Capital Management and Share Repurchase

The company's capital ratios remain strong, with a total risk-based capital ratio of 16.13% and a TCE ratio of 9.72%. The company repurchased $1.1 million of shares at prices below tangible book to further build value for shareholders, and the Board of Directors declared a cash dividend of $0.25 per share, the 82nd consecutive quarterly dividend paid by the company.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 0.9, and a Dividend Yield of 3.98%, the stock appears to be reasonably valued. Analysts estimate next year's revenue growth at 19.3%, indicating a positive outlook for the company. The company's ability to scale without significantly adding to the expense base, as demonstrated by a year-to-date 2025 expense growth of only 90 basis points versus 2024, is a positive indicator of future performance.

Operational Highlights

The company has made new hires, including one in Sacramento, and is looking to make opportunistic hires throughout its footprint. The company recovered $670,000 in interest from a $3.6 million nonaccrual loan paid off after quarter end, demonstrating its ability to manage asset quality. The pipeline for the fourth quarter is greater than that going into the third quarter, and the company expects a similar quarter to what was just experienced.

3. NewsRoom

Card image cap

Bank of Marin Bancorp (NASDAQ:BMRC) & Bay Commercial Bank (NASDAQ:BCML) Head to Head Review

Nov -22

Source: defenseworld.net

Card image cap

Bank of Marin Completes Balance Sheet Repositioning Supported by $45 Million Subordinated Debt Offering

Nov -19

Source: businesswire.com

Card image cap

New Strong Buy Stocks for Nov. 7: BMRC, HSBC and More

Nov -07

Source:

Card image cap

Best Income Stocks to Buy for Nov. 7

Nov -07

Source: zacks.com

Card image cap

KBRA Assigns Ratings to Bank of Marin Bancorp

Nov -05

Source: businesswire.com

Card image cap

What Makes Bank of Marin (BMRC) a New Strong Buy Stock

Oct -29

Source: zacks.com

Card image cap

Bank of Marin Bancorp (BMRC) Q3 2025 Earnings Call Transcript

Oct -27

Source: seekingalpha.com

Card image cap

Bank of Marin (BMRC) Reports Q3 Earnings: What Key Metrics Have to Say

Oct -27

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Banking and Related Activities

Expected Growth: 11%

Bank of Marin Bancorp's 11% growth in Banking and Related Activities is driven by strong loan growth, increased deposit market share, and expansion of commercial banking services. Additionally, the bank's focus on relationship-based banking, strategic branch expansion, and investments in digital banking capabilities have contributed to its growth momentum.

7. Detailed Products

Commercial Loans

Bank of Marin Bancorp offers a range of commercial loans to help businesses finance their operations, expand their business, or refinance existing debt.

Commercial Real Estate Loans

The bank provides commercial real estate loans for the purchase, refinance, or construction of commercial properties.

Treasury Management Services

Bank of Marin Bancorp offers treasury management services to help businesses manage their cash flow, reduce fraud risk, and improve efficiency.

Cash Management Services

The bank provides cash management services to help businesses manage their cash flow, reduce costs, and improve efficiency.

Personal Banking Services

Bank of Marin Bancorp offers a range of personal banking services, including checking and savings accounts, credit cards, and loans.

Wealth Management Services

The bank provides wealth management services, including investment management, trust services, and financial planning.

Online Banking Services

Bank of Marin Bancorp offers online banking services, allowing customers to manage their accounts, pay bills, and transfer funds online.

Mobile Banking Services

The bank provides mobile banking services, allowing customers to manage their accounts, deposit checks, and transfer funds on-the-go.

8. Bank of Marin Bancorp's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Bank of Marin Bancorp is medium due to the presence of alternative financial institutions and online banking services.

Bargaining Power Of Customers

The bargaining power of customers for Bank of Marin Bancorp is low due to the lack of concentration of buyers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Bank of Marin Bancorp is low due to the presence of multiple suppliers and the lack of concentration of suppliers.

Threat Of New Entrants

The threat of new entrants for Bank of Marin Bancorp is high due to the relatively low barriers to entry and the presence of fintech companies.

Intensity Of Rivalry

The intensity of rivalry for Bank of Marin Bancorp is high due to the presence of multiple competitors and the high level of competition in the banking industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.43%
Debt Cost 8.29%
Equity Weight 84.57%
Equity Cost 8.29%
WACC 8.29%
Leverage 18.25%

11. Quality Control: Bank of Marin Bancorp passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
First Capital

A-Score: 6.6/10

Value: 8.0

Growth: 5.7

Quality: 5.9

Yield: 6.0

Momentum: 8.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Provident Financial Holdings

A-Score: 6.3/10

Value: 5.3

Growth: 4.3

Quality: 4.3

Yield: 7.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Seacoast Banking

A-Score: 5.6/10

Value: 4.3

Growth: 5.4

Quality: 6.1

Yield: 4.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Bank of Marin

A-Score: 5.6/10

Value: 4.5

Growth: 1.9

Quality: 6.0

Yield: 8.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Heartland Financial USA

A-Score: 4.8/10

Value: 4.1

Growth: 2.2

Quality: 7.8

Yield: 3.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Independent Bank Group

A-Score: 4.4/10

Value: 3.6

Growth: 2.8

Quality: 5.1

Yield: 4.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.8$

Current Price

26.8$

Potential

-0.00%

Expected Cash-Flows