Bank of Marin's Q2 adjusted EPS misses estimates, reports net loss

Overview

• Bank of Marin reports Q2 net loss of $8.5 mln due to securities repositioning

• Adjusted EPS for Q2 misses analyst expectations, reflecting operational challenges

• Co expects future net interest margin expansion from securities repositioning

Outlook

• Company expects 13 basis point net interest margin increase in Q3 2025

• Bank of Marin anticipates $0.20 EPS accretion over next four quarters

• Company sees stable asset quality and healthy loan pipeline

• Expenses for second half of 2025 expected similar to first half

Result Drivers

• SECURITIES REPOSITIONING - Sale of available-for-sale securities led to a pre-tax loss of $18.7 mln, expected to improve future net interest margin

• LOAN PRODUCTION - New loan production at higher rates contributed to a 7 basis point improvement in net interest margin

• ASSET QUALITY - Stable asset quality with no provision for credit losses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Bank of Marin Bancorp is $26.00, about 8.5% above its July 25 closing price of $23.78

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw8QxM88a