UPDATE: Stifel Nicolaus Reduces PT to $43 on Bank of Marin Bancorp on NIM Compression

Stifel Nicolaus reiterated its Buy rating on Bank of Marin Bancorp

but lowered its price target from $48 to $43. Stifel Nicolaus noted, "We are lowering our EPS estimates for Bank of Marin. … The two major factors that resulted in the significant earnings shortfall during 3Q12 were the loan loss provision expense and the decline in the net interest margin. We have confidence that the sizable commercial real estate charge-off and associated loan loss provision expense in 3Q12 is an isolated event and not an indication of an credit deterioration in coming quarters. … The 50 basis point decline in the net interest margin during 3Q12 is resulting in a sharply lower net interest income forecast and NIM estimate for 4Q12 and 2013." Bank of Marin Bancorp closed at $39.40 on Monday.