Shares of Bank of Marin Bancorp (BMRC) achieved a new 52-week high of $48.00 in the second half of the trading session on Aug 21. The stock closed the session at $47.66, reflecting a year-to-date return of 10.6%. The trading volume for the session was 41,882 shares.
Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its upward estimate revisions over the last 60 days.
Growth Drivers
Impressive second-quarter 2014 results as well as a hike in quarterly dividend were the primary growth drivers. Notably, the company reported 23% and 31% year-over-year growth in loans and deposits, respectively.
Reported on Jul 21, Invesco’s second-quarter earnings of 86 cents per share surpasssed the Zacks Consensus Estimate by 6.2%. Results gained from the 24.6% year-over-year rise in revenues, partially offset by 10% increase in expenses.
Moreover, Bank of Marin announced a 5.3% hike in its quarterly cash dividend to 20 cents per share on Jul 18. The dividend was paid on Aug 8 to the shareholders of record as of Aug 1.
Bank of Marin seems to be well positioned for organic as well as inorganic growth, given its improving asset quality and strong capital base. However, elevated expenses along with the prevailing low interest rate environment and sluggish economic scenario could mar the bank’s profitability going forward.
Estimate Revisions Show Strength
Over the last 60 days, the Zacks Consensus Estimate for 2014 revised 4.1% upward to $3.33 per share. For 2015, the Zacks Consensus Estimate increased 3.6% to $3.48 per share over the same time frame.
Some better-ranked western banks include Central Valley Community Bancorp (CVCY), Northrim Bancorp Inc. (NRIM) and Sierra Bancorp (BSRR). All these stocks hold a Zacks Rank #1 (Strong Buy).
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