Bank of Marin Bancorp (BMRC) Reports Q3 2023 Earnings of $5. ...
BMRC announced Q3 2023 earnings of $5.3 million, up from $4.6 million in Q2 2023.
Diluted earnings per share were $0.33 for Q3 2023, compared to $0.28 for the prior quarter.
BMRC's tax-equivalent net interest margin increased 3 basis points to 2.48% from 2.45% in the previous quarter.
Total deposits increased by $118.5 million to $3.444 billion as of September 30, 2023.
Bank of Marin Bancorp (NASDAQ:BMRC) released its earnings report for the third quarter of 2023 on October 23, 2023. The company reported earnings of $5.3 million for Q3 2023, up from $4.6 million in Q2 2023. Diluted earnings per share were $0.33 for Q3 2023, compared to $0.28 for the prior quarter. Earnings for the first nine months of 2023 totaled $19.3 million, compared to $33.7 million for the same period in 2022.
Financial Highlights
BMRC's tax-equivalent net interest margin increased 3 basis points to 2.48% from 2.45% in the previous quarter, primarily due to higher rates on interest-bearing cash balances generated from securities sales. Total deposits increased by $118.5 million to $3.444 billion as of September 30, 2023, from $3.325 billion as of June 30, 2023. Non-interest bearing deposits remained stable at 47.7% of total deposits at the end of Q3 2023.
BMRC's loan portfolio continues to perform well with classified loans at 1.90% of total loans. Non-accrual loans were 0.27% of total loans at quarter end, up from 0.10% at the end of Q2 2023. A $425 thousand provision for credit losses on loans in the third quarter brought the allowance for credit losses to 1.16% of total loans.
Capital and Dividends
All capital ratios were above well-capitalized regulatory requirements. The total risk-based capital ratios at September 30, 2023 for BMRC and the Bank were 16.6% and 16.1%, respectively. BMRC's tangible common equity to tangible assets ("TCE ratio") was 8.6% at the end of Q3 2023. The Board of Directors declared a cash dividend of $0.25 per share on October 20, 2023, which represents the 74th consecutive quarterly dividend paid by BMRC.
Management Commentary
BMRC's President and Chief Executive Officer, Tim Myers, commented on the company's performance, stating,
We expanded net interest margin and improved our interest rate risk and liquidity positions in the third quarter by reducing borrowings and investments, increasing deposits and cash, and executing balance sheet hedges. We continued to generate strong deposit growth in the quarter, emphasizing our relationship-based banking model to attract new clients and expand our relationships with existing customers. While the macroeconomic picture remains somewhat uncertain, our loan pipeline is robust, and fourth quarter loan production is shaping up to be strong."
BMRC's Executive Vice President and Chief Financial Officer, Tani Girton, also added,
As we have done throughout our 33-year history, we are intently focused on balance sheet strength, including strong capital levels, as we grow alongside our customers and pursue reliable returns on behalf of our shareholders. Securities sales and balance sheet hedges muted the impact of interest rate increases on tangible capital while deposit growth and cash flows from our earning asset portfolios enabled a significant reduction in borrowings. We remain proactive and successful in managing credit, and are dedicated to prudent investments in our people and infrastructure as well as cost control."
This article first appeared on GuruFocus.
