Bank of Marin falls on Q2 loss, bigger CRE-related loan-loss provisions

Bank of Marin Bancorp

29/07/2024 15:09

** U.S. regional lender Bank of Marin's  BMRC.O  shares fall
7.3% to $20.73
    ** Company reports Q2 loss of $1.36/shr vs profit of
$0.28/shr a year earlier
    ** BMRC's provision for credit losses on loans surges to
$5.2 mln in Q2 vs $350,000 in Q1
    ** Bank says provision largely due to increased individual
reserve for one non-owner occupied commercial real estate (CRE)
loan totaling $16.7 mln
    ** BMRC's ratio of allowance for credit losses to total
loans increased to 1.47% in Q2 vs 1.24% at end of Q1
    ** "Overall credit quality remains solid, and we are not
seeing anything beyond idiosyncratic issues in our loan
portfolio" - CFO Tani Girton
    ** U.S. banks have boosted provisions for credit losses as
deteriorating CRE loans and high interest rates fuel fears of
defaults in Q2
    ** CRE portfolios have been central to investor worries
since stress earlier this year at peer New York Community
Bancorp  NYCB.N 
    ** Including session loss, Bank of Marin shares down ~6% YTD

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))