Bank Of Marin Bancorp (BMRC) Tops Q3 EPS by 8c

October 21, 2019 8:02 AM EDT

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Bank Of Marin Bancorp (NASDAQ: BMRC) reported Q3 EPS of $0.69, $0.08 better than the analyst estimate of $0.61.

Bancorp also provided the following highlights from the third quarter of 2019:

  • Loans totaled $1,798.7 million at September 30, 2019, compared to $1,764.9 million at June 30, 2019, an increase of $33.8 million. New loan originations of $77.3 million in the third quarter were mainly distributed across Commercial Banking and Consumer Banking. Payoffs of $38.5 million in the third quarter consisted largely of loans for which the underlying assets were sold and the successful completion of construction projects.
  • Total deposits increased $122.5 million in the third quarter to $2,224.5 million. Non-interest bearing deposits represented 50% of total deposits in the third quarter and have been at or near this level since the beginning of last year. The cost of average deposits increased to 0.21% in the third quarter, compared to 0.20% in the second quarter of 2019.
  • Strong credit quality remains a cornerstone of the Bank\'s consistent performance. Non-accrual loans represented only 0.02% of the Bank\'s loan portfolio at September 30, 2019, compared to 0.03% at June 30, 2019. A $400 thousand provision for loan losses was recorded in the third quarter of 2019 to account for the loan growth, and there was no provision for losses on off-balance sheet commitments.
  • Earnings were positively impacted by a benefit collected on bank-owned-life insurance (\"BOLI\") policies and a $327 thousand adjustment to the income tax provision related to a deferred tax liability true-up. These items positively impacted diluted earnings per share by approximately $0.06 for the quarter and first nine months of 2019. Without these two positive impacts, return on assets and return on equity for the third quarter would have been 1.35% and 10.28%, respectively.
  • All capital ratios were above regulatory requirements. The total risk-based capital ratio for Bancorp was 15.3% at September 30, 2019, compared to 15.2% at June 30, 2019. Tangible common equity to tangible assets was 11.7% at September 30, 2019, compared to 12.0% at June 30, 2019 (refer to footnote 3 on page 5 for a definition of this non-GAAP financial measure).
  • The Board of Directors declared a cash dividend of $0.21 per share on October 18, 2019. This represents the 58th consecutive quarterly dividend paid by Bank of Marin Bancorp. The dividend is payable on November 8, 2019, to shareholders of record at the close of business on November 1, 2019.

“Our third quarter performance was once again very good, with strong deposit and loan growth while maintaining excellent credit quality,” said Russell A. Colombo, President and Chief Executive Officer. “We are seeing positive results from our investment in organic growth, specifically the consistent loan volume coming from a number of our offices.”

“Bank of Marin’s third quarter results reflect the success of our commitment to consistent, disciplined relationship banking,” said Tani Girton, EVP and Chief Financial Officer. “With a return on assets of 1.33% and efficiency ratio of 56.83% year-to-date, and an increase in tax-equivalent net interest margin of 12 basis points year-over-year, we are well-positioned to finish the year strong.”

For earnings history and earnings-related data on Bank Of Marin Bancorp (BMRC) click here.

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