UPDATE: Wunderlich Securities Downgrades Bank of Marin Bancorp to Hold on Valuation

Wunderlich Securities lowered its rating on Bank of Marin Bancorp

from Buy to Hold and lowered its price target from $42 to $40. Wunderlich Securities said, "We are downgrading shares of Bank of Marin Bancorp (BMRC) to Hold from Buy and we are lowering our price target by $2 to $40. BMRC reported 3Q12 EPS of $0.59, which was $0.28 below consensus and $0.30 below our estimate. The company's record third quarter results were negatively impacted by a significant amount of net interest margin pressure and higher-than-expected credit costs, as well as limited organic loan growth. Overall, our view of BMRC as a high performer in relatively insulated markets in Northern California is unchanged, but we believe that much of this view is already factored into the stock near current levels." Bank of Marin Bancorp closed at $39.40 on Monday.