Introduction to the Bank of Marin
Founded in 1990, the Bank of Marin is a mid-sized bank. The company’s main office is located in the city of Novato in the state of California. There are a total of 141 banks operating in the state of California and combined these banks have $1,197,936 million of assets. , the Bank of Marin has been operating for 32 years. The Bank of Marin has been insured by the Federal Deposit Insurance Corporation since 1990 and the independent agency has provided insurance to the bank ever since. The FDIC is also serves as the primary federal regulator for the bank. Mainly because of its relative size, geographic reach and presence, the bank is considered to be a community bank, instead of a national bank. Based on our estimates, we believe its asset base of $4,260 million ranks it in the 90th percentile of banks in the United States. The Bank of Marin does not currently have any offices located outside of the United States, and functionally is a domestic bank. Within the U.S., the bank currently has 34 offices. As of this writing, the bank employed a total of 348 people.
Details on the Bank’s Asset Composition
As noted earlier, the bank has total assets of $4,260 million. In addition, the bank has a deposit base of $3,744 million and net loans outstanding of $2,295 million. Transactional deposits comprised 14% of the bank’s outstanding deposits. Meanwhile, deposits from domestic customers represented a total of 100% of the deposits outstanding and of this amount, 51% are currently insured. Moving on to the components of the bank’s assets we can see that loans provided to customers represent 54% of the banks total assets. Of this amount, loans related to real estate activities comprised 83% of gross loans outstanding. The Bank of Marin has $268 million of outstanding 1-4 family residential loans (mortgages), which in total represents 12% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 2% and 11% of loans outstanding, respectively. Loans to farmland and farms represents 1% of loans outstanding.
Contact Information and Other Facts For The Bank of Marin
- Main Office Address: 504 Redwood Blvd, Novato, CA 94947
- Website: http://www.bankofmarin.com
- Total Number of Branches: 34
- Total Number of International Branches: None
- Number of Employees: 348
- FDIC Certificate Number: 32779
- FDIC Community Bank: Yes
- FDIC Field Office: San Francisco
- Independent or Subsidiary Bank: Independent
- Federal Reserve ID Number: 1436204
- Bank Charter Class: NM
- Primary Regulator: FDIC
Financial Overview
The bank had total assets of $4,260 million based on the latest available information. Its total assets have increased substantially over the past year, with an increase of 43.2%. In terms of the bank’s lending activities, net loans represented 53.9% of its total assets, and stood at $2,295 million. The bank’s loan portfolio has increased substantially over the past year, with an increase of 10.0%. Taking a closer look at the bank’s loan portfolio, we see that residential mortgages comprise 12% of the bank’s loan book. The bank has $268 million of residential mortgages outstanding, which compares with $273 million in the prior year. This implies a decrease of 1.8% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 11.2% of its total lending and stood at $259 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 1.2% of its total loan portfolio. Finally, the bank also engages in the provision of auto loans. These are loans provided to customers to help finance vehicle purchases. Auto loans represent 1.2% of the bank’s total lending.
Bank Liquidity and Funding
Liquidity and funding are two important considerations when evaluating a bank. It gives us a sense of how a bank finances its activities and can help both depositors and customers better understand a banks financial positioning. Customer deposits is usually one of the cheapest ways to finance a bank. This is especially the case for accounts that don’t pay interest, such as checking accounts. The Bank of Marin has total customer deposits of $3,744 million. Looking over the past year, its deposit base has increased substantially with a growth rate of 45.0%. In addition, the bank has a loan to deposit ratio of 61%, which is well below the average of banks in the United States. The average in the United States is approximately 82% and as a reminder, a lower ratio indicates greater liquidity. All of the bank’s deposits are sourced from domestic depositors, which is helpful from a risk assessment standpoint.
Bank Performance and Capital Metrics
Moving on to the performance and capital metrics for the bank, in the above we have a chart that shows key performance metrics for the Bank of Marin compared with the average U.S. bank. As a starting point, looking at the bank’s return on assets, over the past year it has been relatively stable. Importantly, on this metric we can also see that the bank is below the average bank. Return on assets tells us how productive a bank is being with its asset base. Next, looking at the bank’s return on equity, which tells us how much of a return the bank has generated for its owners, over the past year it has improved. In addition, we can also see that the bank is below the average bank on this metric. Another metric that is helpful in contextualizing a bank’s return on equity is its leverage ratio. A lower ratio means that the bank has a higher reliance on borrowing to deliver its return on equity. In this case, the total leverage ratio is currently below the average U.S. bank, and has been relatively stable over the past year. Finally, the Bank of Marin’s Tier 1 capital ratio has declined over the past year. On this metric the bank is below the national average.
Conclusion: Bank of Marin
Overall, we believe the Bank of Marin deserves a rating of 3.4 out of 5.0, which is a very good rating. Specifically, an area of strength for the bank would be its cost of funds which is above the national average. On the contrary, the bank’s net interest margin is one of the primary drawbacks on its rating as on this metric, the bank is below average. As a reminder, our rating is based on our proprietary scoring system which uses data from an in-depth nationwide bank study we performed. None of the work presented is intended to be investment advice or advice of any sort and is presented purely for informational purposes.