Bank of Marin Bancorp Reports Second Quarter Financial Results
Continued Net Interest Margin Expansion From Active Balance Sheet Management
Comparable (non-GAAP) Excluding Loss on Sale of Securities
|
Three months ended |
|
Six months ended |
||||||||||||
(in thousands, except per share amounts; unaudited) |
June 30, 2025 |
March 31, 2025 |
|
June 30, 2025 |
June 30, 2024 |
||||||||||
Pre-tax, pre-provision net (loss) income |
|
|
|
|
|
||||||||||
Pre-tax, pre-provision net (loss) income (GAAP) |
$ |
(11,199 |
) |
$ |
6,556 |
|
$ |
(4,643 |
) |
$ |
(24,903 |
) |
|||
Comparable pre-tax, pre-provision net income (non-GAAP) |
|
7,537 |
|
|
6,556 |
|
|
14,093 |
|
|
7,639 |
|
|||
Net (loss) income |
|
|
|
|
|
||||||||||
Net (loss) income (GAAP) |
|
(8,536 |
) |
|
4,876 |
|
|
(3,660 |
) |
|
(18,980 |
) |
|||
Comparable net income (non-GAAP) |
|
4,662 |
|
|
4,876 |
|
|
9,538 |
|
|
3,942 |
|
|||
Diluted (loss) earnings per share |
|
|
|
|
|
||||||||||
Diluted (loss) earnings per share (GAAP) |
|
(0.53 |
) |
|
0.30 |
|
|
(0.23 |
) |
|
(1.18 |
) |
|||
Comparable diluted earnings per share (non-GAAP) |
|
0.29 |
|
|
0.30 |
|
|
0.59 |
|
|
0.24 |
|
|||
See complete Reconciliation of GAAP and Non-GAAP Financial Measures below |
|||||||||||||||
Related tax benefit calculated using blended statutory rate of |
Concurrent with this release, Bancorp issued presentation slides providing supplemental information, some of which will be discussed during the second quarter 2025 earnings call. The earnings release and presentation slides are intended to be reviewed together and can be found online on Bank of Marin’s website at www.bankofmarin.com. under “Investor Relations.”
"We continue to take steps to improve our core financial performance as demonstrated by pre-tax pre-provision net income growth of
"With stable asset quality, the continued addition of new loan and deposit relationships, and a healthy loan pipeline, we expect further improvement in our financial performance in the coming quarters," said Myers.
Bancorp also provided the following highlights for the second quarter of 2025:
-
As previously announced, the Bank sold available-for-sale ("AFS") securities with a book value of
, resulting in a pre-tax loss of$185.8 million . Redeployment of the proceeds is expected to provide a 13 basis point increase in annualized net interest margin beginning in the third quarter and$18.7 million of estimated earnings per share accretion over the next four quarters, assuming a$0.20 5.0% average yield on reinvestment. The securities repositioning is expected to have an approximate four-year earn back. The sale is part of a continued strategy to improve future earnings and increase return on equity. Excluding the loss on security sales, net income and diluted earnings per share for the second quarter would have been and$4.7 million , respectively, all other factors unchanged. See Reconciliation of GAAP and Non-GAAP Financial Measures below.$0.29
-
The second quarter tax-equivalent net interest margin improved 7 basis points over the preceding quarter to
2.93% from2.86% , largely due to the effects of new loan production at higher rates. The tax-equivalent net interest margin for the six months ended June 30, 2025 improved 39 basis points over the same period of the prior year due to the favorable impact of the securities repositioned in the second quarter of 2024, which resulted in higher yielding assets during the first six months of 2025.
-
Return on average assets ("ROA") was (0.92)% (non-GAAP
0.50% ) for the second quarter of 2025, compared to0.53% for the prior quarter. Return on average equity ("ROE") was (7.80)% (non-GAAP4.26% ), compared to4.52% for the prior quarter. The efficiency ratio for the second quarter of 2025 was208.81% (non-GAAP74.03% ), compared to76.44% last quarter. Non-GAAP ratios exclude the loss on security sales, all other factors unchanged, and with adjustments made based on the Company's blended statutory tax rate of29.56% . See Reconciliation of GAAP and Non-GAAP Financial Measures below.
Comparable (non-GAAP) Excluding Loss on Sale of Securities
|
Three months ended |
|
Six months ended |
||||||||||||
(in thousands, except per share amounts; unaudited) |
June 30,
|
March 31,
|
June 30,
|
|
June 30,
|
June 30,
|
|||||||||
Return on average assets |
|
|
|
|
|
|
|||||||||
Return on average assets (GAAP) |
(0.92 |
)% |
0.53 |
% |
(2.35 |
)% |
|
(0.20 |
)% |
(1.01 |
)% |
||||
Comparable return on average assets (non-GAAP) |
0.50 |
% |
0.53 |
% |
0.11 |
% |
|
0.52 |
% |
0.21 |
% |
||||
Return on average equity |
|
|
|
|
|
|
|||||||||
Return on average equity (GAAP) |
(7.80 |
)% |
4.52 |
% |
(20.36 |
)% |
|
(1.68 |
)% |
(8.79 |
)% |
||||
Comparable return on average equity (non-GAAP) |
4.26 |
% |
4.52 |
% |
0.95 |
% |
|
4.39 |
% |
1.83 |
% |
||||
Efficiency ratio |
|
|
|
|
|
|
|||||||||
Efficiency ratio (GAAP) |
208.81 |
% |
76.44 |
% |
(300.37 |
)% |
|
112.18 |
% |
237.13 |
% |
||||
Comparable efficiency ratio (non-GAAP) |
74.03 |
% |
76.44 |
% |
86.70 |
% |
|
75.21 |
% |
84.93 |
% |
||||
See complete Reconciliation of GAAP and Non-GAAP Financial Measures below |
|||||||||||||||
Related tax benefit calculated using blended statutory rate of |
-
The average cost of total deposits and of interest-bearing deposits decreased by 1 and 3 basis points, respectively, to
1.28% and2.24% , in the second quarter of 2025, compared to the prior quarter. Non-interest bearing deposits continued to make up a strong portion of total deposits at42.5% as of June 30, 2025, compared to43.2% last quarter.
-
There was no provision for credit losses on loans in the second quarter of 2025 compared to a
provision in the previous quarter. The allowance for credit losses was$75 thousand 1.44% of total loans at June 30, 2025, consistent with March 31, 2025.
-
Classified loans were
2.95% of total loans compared to2.77% last quarter largely due to downgrades from special mention in two commercial real estate relationships during the quarter totaling .$3.9 million
-
Non-accrual loans were
1.57% of total loans at quarter-end, down from1.59% at March 31, 2025.
-
Total deposits of
as of June 30, 2025 compared to$3.24 5 billion as of March 31, 2025, the decrease mainly due to business expenses, payroll and distributions, asset purchases and seasonal outflows for tax payments.$3.30 2 billion
-
Capital was above well-capitalized regulatory thresholds with total risk-based capital ratios of
16.25% as of June 30, 2025 for Bancorp compared to16.69% as of March 31, 2025. Bancorp's tangible common equity to tangible assets ("TCE ratio") was9.95% as of June 30, 2025. Bancorp's TCE ratio net of after-tax unrealized losses on held-to-maturity securities as if the losses were realized1 was8.26% as of June 30, 2025.
-
Bancorp repurchased 100,000 in shares for
during the second quarter of 2025, contributing to an increase in the book value per share to$2.2 million at June 30, 2025 compared to$27.21 at March 31, 2025, and the tangible book value per share2 to$27.13 at June 30, 2025 compared to$22.55 at March 31, 2025.$22.48
-
The Board of Directors declared a cash dividend of
per share on July 24, 2025, which represents the 81st consecutive quarterly dividend paid by Bancorp. The dividend is payable on August 14, 2025, to shareholders of record at the close of business on August 7, 2025.$0.25
"Expenses grew
____________________________ |
1 Refer to the discussion and reconciliation of this non-GAAP financial measure in the section below entitled Statement Regarding Use of Non-GAAP Financial Measures. |
2 Tangible book value per share is a non-GAAP financial measure used by Bancorp, as well as investors and analysts, in assessing Bancorp’s use of equity. Refer to the reconciliation of common equity to tangible common equity and resulting calculation of tangible book value per share in the section below entitled Statement Regarding Use of Non-GAAP Financial Measures. |
Loans and Credit Quality
Loans totaled
Loan payoffs were
Accruing loans past due 30 to 89 days totaled
Non-accrual loans totaled
The Bank continues to uphold its prudent underwriting standards. In response to current market conditions, we continue to closely monitor our portfolio for signs of potential weakness to ensure proactive risk management and actively work towards a resolution on our classified loans. Classified loans increased by
Loans designated special mention, which are not considered adversely classified, increased by
There were
There was no provision for credit losses on loans in the second quarter of 2025 and a
Cash, Cash Equivalents and Restricted Cash
Total cash, cash equivalents and restricted cash were
Investments
The investment securities portfolio totaled
Deposits
Deposits decreased
Borrowings and Liquidity
At June 30, 2025, the Bank had no outstanding borrowings, consistent with March 31, 2025. While available as a liquidity source, we have not utilized brokered deposits. Net available funding sources, including unrestricted cash, unencumbered available-for-sale securities and total available borrowing capacity totaled
The following table details the components of our contingent liquidity sources as of June 30, 2025.
(in millions) |
Total Available |
Amount Used |
Net Availability |
||||||
Internal Sources |
|
|
|
||||||
Unrestricted cash 1 |
$ |
201.1 |
$ |
— |
$ |
201.1 |
|||
Unencumbered securities at market value |
|
271.0 |
|
— |
|
271.0 |
|||
External Sources |
|
|
|
||||||
FHLB line of credit |
|
946.0 |
|
— |
|
946.0 |
|||
FRB line of credit |
|
319.8 |
|
— |
|
319.8 |
|||
Lines of credit at correspondent banks |
|
125.0 |
|
— |
|
125.0 |
|||
Total Liquidity |
$ |
1,862.9 |
$ |
— |
$ |
1,862.9 |
|||
1 Excludes cash items in transit as of June 30, 2025. |
|||||||||
Note: Brokered deposits available through third-party networks are not included above. |
Capital Resources
The total risk-based capital ratio for Bancorp was
Bancorp's tangible common equity to tangible assets ("TCE ratio") was
Earnings
Net Interest Income
Net interest income totaled
The tax-equivalent net interest margin increased to
Non-Interest Income (Loss)
Non-interest income was in a loss position of
Non-Interest Expense
Non-interest expense totaled
Statement Regarding use of Non-GAAP Financial Measures
Financial results are presented in accordance with GAAP and with reference to certain non-GAAP financial measures. Management believes that, given industry turmoil that largely began in the first quarter of 2023, the presentation of Bancorp's non-GAAP TCE ratio reflecting the after tax impact of unrealized losses on held-to-maturity securities provides useful supplemental information to investors because it reflects the level of capital remaining after a hypothetical liquidation of the entire securities portfolio. In addition, management believes that providing selected financial measures excluding the loss on sale of securities discussed above is useful to investors as the strategic short-term loss taken for long-term profitability makes the operational performance difficult to compare to other periods. Because there are limits to the usefulness of this or any other non-GAAP measure to investors, Bancorp encourages readers to consider its annual and quarterly consolidated financial statements and notes related thereto for their entirety, as filed with the Securities and Exchange Commission, and not to rely on any single financial measure. A reconciliation of the GAAP financial measures to comparable non-GAAP financial measures is presented below.
Reconciliation of GAAP and Non-GAAP Financial Measures
(in thousands, except per share amounts; unaudited) |
|
June 30, 2025 |
March 31, 2025 |
December 31, 2024 |
||||||
Tangible Common Equity - Bancorp |
|
|
|
|
||||||
Total stockholders' equity |
|
$ |
438,538 |
|
$ |
439,566 |
|
$ |
435,407 |
|
Goodwill and core deposit intangible |
|
|
(75,098 |
) |
|
(75,319 |
) |
|
(75,546 |
) |
Total TCE |
a |
|
363,440 |
|
|
364,247 |
|
|
359,861 |
|
Unrealized losses on HTM securities, net of tax1 |
|
|
(74,625 |
) |
|
(77,768 |
) |
|
(89,171 |
) |
Unrealized losses on HTM securities included in AOCI, net of tax 2 |
|
|
7,205 |
|
|
7,462 |
|
|
7,701 |
|
TCE, net of unrealized losses on HTM securities (non-GAAP) |
b |
$ |
296,020 |
|
$ |
293,941 |
|
$ |
278,391 |
|
Total assets |
|
$ |
3,726,193 |
|
$ |
3,784,243 |
|
$ |
3,701,335 |
|
Goodwill and core deposit intangible |
|
|
(75,098 |
) |
|
(75,319 |
) |
|
(75,546 |
) |
Total tangible assets |
c |
|
3,651,095 |
|
|
3,708,924 |
|
|
3,625,789 |
|
Unrealized losses on HTM securities, net of tax1 |
|
|
(74,625 |
) |
|
(77,768 |
) |
|
(89,171 |
) |
Unrealized losses on HTM securities included in AOCI, net of tax |
|
|
7,205 |
|
|
7,462 |
|
|
7,701 |
|
Total tangible assets, net of unrealized losses on HTM securities (non-GAAP) |
d |
$ |
3,583,675 |
|
$ |
3,638,618 |
|
$ |
3,544,319 |
|
Bancorp TCE ratio |
a / c |
|
10.0 |
% |
|
9.8 |
% |
|
9.9 |
% |
Bancorp TCE ratio, net of unrealized losses on HTM securities (non-GAAP) |
b / d |
|
8.3 |
% |
|
8.1 |
% |
|
7.9 |
% |
Tangible Book Value Per Share |
|
|
|
|
||||||
Common shares outstanding |
e |
|
16,116 |
|
|
16,203 |
|
|
16,089 |
|
Book value per share |
|
$ |
27.21 |
|
$ |
27.13 |
|
$ |
27.06 |
|
Tangible book value per share |
a / e |
$ |
22.55 |
|
$ |
22.48 |
|
$ |
22.37 |
|
1 Unrealized losses on held-to-maturity securities as of June 30, 2025, March 31, 2025 and December 31, 2024 of |
||||||||||
2 The remaining unrealized losses that resulted from the transfer of securities from AFS to HTM, as of June 30, 2025, March 31, 2025 and December 31, 2024, net of an estimated |
Reconciliation of GAAP and Non-GAAP Financial Measures (continued)
(in thousands, except per share amounts; unaudited) |
Three months ended |
Six months ended |
||||||||||||||||||
Pre-tax, pre-provision net (loss) income |
June 30, 2025 |
March 31, 2025 |
June 30, 2024 |
June 30, 2025 |
June 30, 2024 |
|||||||||||||||
(Loss) income before (benefit from) provision for income taxes |
$ |
(11,199 |
) |
$ |
6,481 |
|
$ |
(34,382 |
) |
$ |
(4,718 |
) |
$ |
(30,453 |
) |
|||||
Provision for credit losses on loans |
|
— |
|
|
75 |
|
|
5,200 |
|
|
75 |
|
|
5,550 |
|
|||||
Pre-tax, pre-provision net (loss) income (GAAP) |
|
(11,199 |
) |
|
6,556 |
|
|
(29,182 |
) |
|
(4,643 |
) |
|
(24,903 |
) |
|||||
Adjustments: |
|
|
|
|
|
|||||||||||||||
Losses on sale of investment securities from portfolio repositioning |
|
18,736 |
|
|
— |
|
|
32,542 |
|
|
18,736 |
|
|
32,542 |
|
|||||
Comparable pre-tax, pre-provision net income (non-GAAP) |
$ |
7,537 |
|
$ |
6,556 |
|
$ |
3,360 |
|
$ |
14,093 |
|
$ |
7,639 |
|
|||||
Net (loss) income |
|
|
|
|
|
|||||||||||||||
Net (loss) income (GAAP) |
$ |
(8,536 |
) |
$ |
4,876 |
|
$ |
(21,902 |
) |
$ |
(3,660 |
) |
$ |
(18,980 |
) |
|||||
Adjustments: |
|
|
|
|
|
|||||||||||||||
Losses on sale of investment securities from portfolio repositioning |
|
18,736 |
|
|
— |
|
|
32,542 |
|
|
18,736 |
|
|
32,542 |
|
|||||
Related income tax benefit1 |
|
(5,538 |
) |
|
— |
|
|
(9,620 |
) |
|
(5,538 |
) |
|
(9,620 |
) |
|||||
Adjustments, net of taxes |
|
13,198 |
|
|
— |
|
|
22,922 |
|
|
13,198 |
|
|
22,922 |
|
|||||
Comparable net income (non-GAAP) |
$ |
4,662 |
|
$ |
4,876 |
|
$ |
1,020 |
|
$ |
9,538 |
|
$ |
3,942 |
|
|||||
Diluted (loss) earnings per share |
|
|
|
|
|
|||||||||||||||
Weighted average diluted shares |
|
15,989 |
|
|
16,002 |
|
|
16,108 |
|
|
15,983 |
|
|
16,095 |
|
|||||
Diluted (loss) earnings per share (GAAP) |
$ |
(0.53 |
) |
$ |
0.30 |
|
$ |
(1.36 |
) |
$ |
(0.23 |
) |
$ |
(1.18 |
) |
|||||
Comparable diluted earnings per share (non-GAAP) |
$ |
0.29 |
|
$ |
0.30 |
|
$ |
0.06 |
|
$ |
0.60 |
|
$ |
0.24 |
|
|||||
Return on average assets |
|
|
|
|
|
|||||||||||||||
Average assets |
$ |
3,737,794 |
|
$ |
3,728,066 |
|
$ |
3,751,159 |
|
$ |
3,732,957 |
|
$ |
3,781,214 |
|
|||||
Return on average assets (GAAP) |
|
(0.92 |
)% |
|
0.53 |
% |
|
(2.35 |
)% |
|
(0.20 |
)% |
|
(1.01 |
)% |
|||||
Comparable return on average assets (non-GAAP) |
|
0.50 |
% |
|
0.53 |
% |
|
0.11 |
% |
|
0.52 |
% |
|
0.21 |
% |
|||||
Return on average equity |
|
|
|
|
|
|||||||||||||||
Average stockholders' equity |
$ |
439,187 |
|
$ |
437,176 |
|
$ |
432,962 |
|
$ |
438,187 |
|
$ |
434,332 |
|
|||||
Return on average equity (GAAP) |
|
(7.80 |
)% |
|
4.52 |
% |
|
(20.36 |
)% |
|
(1.68 |
)% |
|
(8.79 |
)% |
|||||
Comparable return on average equity (non-GAAP) |
|
4.26 |
% |
|
4.52 |
% |
|
0.95 |
% |
|
4.39 |
% |
|
1.83 |
% |
|||||
Efficiency ratio |
|
|
|
|
|
|||||||||||||||
Non-interest expense |
$ |
21,490 |
|
$ |
21,264 |
|
$ |
21,894 |
|
$ |
42,754 |
|
$ |
43,063 |
|
|||||
Net interest income |
$ |
25,912 |
|
$ |
24,946 |
|
$ |
22,467 |
|
$ |
50,858 |
|
$ |
45,161 |
|
|||||
Non-interest income (GAAP) |
$ |
(15,621 |
) |
$ |
2,874 |
|
$ |
(29,755 |
) |
$ |
(12,747 |
) |
$ |
(27,001 |
) |
|||||
Losses on sale of investment securities from portfolio repositioning |
|
18,736 |
|
|
— |
|
|
32,542 |
|
|
18,736 |
|
|
32,542 |
|
|||||
Non-interest income (non-GAAP) |
$ |
3,115 |
|
$ |
2,874 |
|
$ |
2,787 |
|
$ |
5,989 |
|
$ |
5,541 |
|
|||||
Efficiency ratio (GAAP) |
|
208.81 |
% |
|
76.44 |
% |
|
(300.37 |
)% |
|
112.18 |
% |
|
237.13 |
% |
|||||
Comparable efficiency ratio (non-GAAP) |
|
74.03 |
% |
|
76.44 |
% |
|
86.70 |
% |
|
75.21 |
% |
|
84.93 |
% |
|||||
1Related tax benefit calculated using blended statutory rate of |
Share Repurchase Program
Bancorp repurchased 100,000 shares totaling
Insider Trading Policy Revisions
Following a review of industry practice and consultation with Bancorp’s legal counsel, certain revisions to Bancorp’s Insider Trading Policy were approved by the board of directors at a meeting on July 24, 2025. Among the revisions, the commencement of the regular quarterly blackout period was changed from three weeks prior to quarter end to two weeks prior to quarter end. Additionally, provisions were added covering the use of 10b5-1 trading plans by Bancorp employees and directors requiring pre-approval of any such plans by Bancorp and mandating that such plans conform to Securities and Exchange Commission rules.
Earnings Call and Webcast Information
Bank of Marin Bancorp (Nasdaq: BMRC) will present its second quarter financial results call via webcast on Monday, July 28, 2025 at 8:30 a.m. PT/11:30 a.m. ET. Investors can listen to the webcast online through Bank of Marin’s website at www.bankofmarin.com. under “Investor Relations.” To listen to the live call, please go to the website at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available at the same website location shortly after the call. Closed captioning will be available during the live webcast, as well as on the webcast replay.
About Bank of Marin Bancorp
Founded in 1990 and headquartered in
Forward-Looking Statements
This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact Bancorp's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions and the economic uncertainty in
BANK OF |
||||||||||||||||||||
|
Three months ended |
Six months ended |
||||||||||||||||||
(in thousands, except per share amounts; unaudited) |
June 30, 2025 |
March 31, 2025 |
June 30, 2024 |
June 30, 2025 |
June 30, 2024 |
|||||||||||||||
Selected operating data and performance ratios: |
|
|
|
|
|
|||||||||||||||
Net income (loss) |
$ |
(8,536 |
) |
$ |
4,876 |
|
$ |
(21,902 |
) |
$ |
(3,660 |
) |
$ |
(18,980 |
) |
|||||
Diluted earnings (loss) per common share |
$ |
(0.53 |
) |
$ |
0.30 |
|
$ |
(1.36 |
) |
$ |
(0.23 |
) |
$ |
(1.18 |
) |
|||||
Return on average assets |
|
(0.92 |
)% |
|
0.53 |
% |
|
(2.35 |
)% |
|
(0.20 |
)% |
|
(1.01 |
)% |
|||||
Return on average equity |
|
(7.80 |
)% |
|
4.52 |
% |
|
(20.36 |
)% |
|
(1.68 |
)% |
|
(8.79 |
)% |
|||||
Efficiency ratio |
|
208.81 |
% |
|
76.44 |
% |
|
(300.37 |
)% |
|
112.18 |
% |
|
237.13 |
% |
|||||
Tax-equivalent net interest margin |
|
2.93 |
% |
|
2.86 |
% |
|
2.52 |
% |
|
2.90 |
% |
|
2.51 |
% |
|||||
Cost of deposits |
|
1.28 |
% |
|
1.29 |
% |
|
1.45 |
% |
|
1.28 |
% |
|
1.41 |
% |
|||||
Cost of funds |
|
1.28 |
% |
|
1.29 |
% |
|
1.46 |
% |
|
1.28 |
% |
|
1.42 |
% |
|||||
Net charge-offs (recoveries) |
$ |
52 |
|
$ |
825 |
|
$ |
26 |
|
$ |
877 |
|
$ |
47 |
|
|||||
Net charge-offs to average loans |
|
NM |
|
|
0.04 |
% |
|
NM |
|
|
0.04 |
% |
|
NM |
|
(in thousands; unaudited) |
June 30, 2025 |
March 31, 2025 |
December 31, 2024 |
|||||||||
Selected financial condition data: |
|
|
|
|||||||||
Total assets |
$ |
3,726,193 |
|
$ |
3,784,243 |
|
$ |
3,701,335 |
|
|||
Loans: |
|
|
|
|||||||||
Commercial and industrial |
$ |
154,576 |
|
$ |
147,291 |
|
$ |
152,263 |
|
|||
Real estate: |
|
|
|
|||||||||
Commercial owner-occupied |
|
320,439 |
|
|
319,112 |
|
|
321,962 |
|
|||
Commercial non-owner occupied |
|
1,285,803 |
|
|
1,292,281 |
|
|
1,273,596 |
|
|||
Construction |
|
25,018 |
|
|
25,745 |
|
|
36,970 |
|
|||
Home equity |
|
95,242 |
|
|
89,240 |
|
|
88,325 |
|
|||
Other residential |
|
127,946 |
|
|
133,960 |
|
|
143,207 |
|
|||
Installment and other consumer loans |
|
64,614 |
|
|
65,919 |
|
|
66,933 |
|
|||
Total loans |
$ |
2,073,638 |
|
$ |
2,073,548 |
|
$ |
2,083,256 |
|
|||
Non-accrual loans: 1 |
|
|
|
|||||||||
Commercial and industrial |
$ |
2,793 |
|
$ |
2,845 |
|
$ |
2,845 |
|
|||
Real estate: |
|
|
|
|||||||||
Commercial owner-occupied |
|
1,554 |
|
|
1,493 |
|
$ |
1,537 |
|
|||
Commercial non-owner occupied |
|
26,012 |
|
|
26,826 |
|
|
28,525 |
|
|||
Home equity |
|
1,456 |
|
|
1,353 |
|
|
752 |
|
|||
Other residential |
|
282 |
|
|
206 |
|
|
— |
|
|||
Installment and other consumer loans |
|
375 |
|
|
198 |
|
|
222 |
|
|||
Total non-accrual loans |
$ |
32,472 |
|
$ |
32,921 |
|
$ |
33,881 |
|
|||
Non-accrual loans to total loans |
|
1.57 |
% |
|
1.59 |
% |
|
1.63 |
% |
|||
Classified loans (graded substandard and doubtful) |
$ |
61,090 |
|
$ |
57,435 |
|
$ |
45,104 |
|
|||
Classified loans as a percentage of total loans |
|
2.95 |
% |
|
2.77 |
% |
|
2.17 |
% |
|||
Total accruing loans 30-89 days past due |
$ |
2,702 |
|
$ |
5,965 |
|
$ |
2,231 |
|
|||
Total accruing loans 90+ days past due 1 |
$ |
— |
|
$ |
— |
|
$ |
— |
|
|||
Allowance for credit losses to total loans |
|
1.44 |
% |
|
1.44 |
% |
|
1.47 |
% |
|||
Allowance for credit losses to non-accrual loans |
0.92x |
0.91x |
0.90x |
|||||||||
Total deposits |
$ |
3,245,048 |
|
$ |
3,301,971 |
|
$ |
3,220,015 |
|
|||
Loan-to-deposit ratio |
|
63.90 |
% |
|
62.80 |
% |
|
64.70 |
% |
|||
Stockholders' equity |
$ |
438,538 |
|
$ |
439,566 |
|
$ |
435,407 |
|
|||
Book value per share |
$ |
27.21 |
|
$ |
27.13 |
|
$ |
27.06 |
|
|||
Tangible book value per share |
$ |
22.55 |
|
$ |
22.48 |
|
$ |
22.37 |
|
|||
Tangible common equity to tangible assets - Bank |
|
9.09 |
% |
|
9.66 |
% |
|
9.64 |
% |
|||
Tangible common equity to tangible assets - Bancorp |
|
9.95 |
% |
|
9.82 |
% |
|
9.93 |
% |
|||
Total risk-based capital ratio - Bank |
|
15.00 |
% |
|
16.45 |
% |
|
16.13 |
% |
|||
Total risk-based capital ratio - Bancorp |
|
16.25 |
% |
|
16.69 |
% |
|
16.54 |
% |
|||
Full-time equivalent employees |
|
302 |
|
|
291 |
|
|
285 |
|
|||
1 There were no non-performing loans over 90 days past due and accruing interest as of June 30, 2025, March 31, 2025 and December 31, 2024. |
||||||||||||
NM - Not meaningful |
BANK OF MARIN BANCORP |
CONSOLIDATED STATEMENTS OF CONDITION |
(in thousands, except share data; unaudited) | June 30, 2025 |
March 31, 2025 |
December 31, 2024 |
|||||||||
Assets |
|
|
|
|||||||||
Cash, cash equivalents and restricted cash |
$ |
228,863 |
|
$ |
259,924 |
|
$ |
137,304 |
|
|||
Investment securities: |
|
|
|
|||||||||
Held-to-maturity, at amortized cost (net of zero allowance for credit losses at June 30, 2025, March 31, 2025 and December 31, 2024) |
|
823,314 |
|
|
834,640 |
|
|
879,199 |
|
|||
Available-for-sale (at fair value; amortized cost of |
|
391,985 |
|
|
406,009 |
|
|
387,534 |
|
|||
Total investment securities |
|
1,215,299 |
|
|
1,240,649 |
|
|
1,266,733 |
|
|||
Loans, at amortized cost |
|
2,073,638 |
|
|
2,073,548 |
|
|
2,083,256 |
|
|||
Allowance for credit losses on loans |
|
(29,854 |
) |
|
(29,906 |
) |
|
(30,656 |
) |
|||
Loans, net of allowance for credit losses on loans |
|
2,043,784 |
|
|
2,043,642 |
|
|
2,052,600 |
|
|||
Goodwill |
|
72,754 |
|
|
72,754 |
|
|
72,754 |
|
|||
Bank-owned life insurance |
|
70,432 |
|
|
71,066 |
|
|
71,026 |
|
|||
Operating lease right-of-use assets |
|
18,316 |
|
|
19,076 |
|
|
19,025 |
|
|||
Bank premises and equipment, net |
|
7,472 |
|
|
6,824 |
|
|
6,832 |
|
|||
Core deposit intangible, net |
|
2,344 |
|
|
2,565 |
|
|
2,792 |
|
|||
Interest receivable and other assets |
|
66,929 |
|
|
67,743 |
|
|
72,269 |
|
|||
Total assets |
$ |
3,726,193 |
|
$ |
3,784,243 |
|
$ |
3,701,335 |
|
|||
|
|
|
|
|||||||||
Liabilities and Stockholders' Equity |
|
|
|
|||||||||
Liabilities |
|
|
|
|||||||||
Deposits: |
|
|
|
|||||||||
Non-interest bearing |
$ |
1,379,814 |
|
$ |
1,426,446 |
|
$ |
1,399,900 |
|
|||
Interest bearing: |
|
|
|
|||||||||
Transaction accounts |
|
180,444 |
|
|
184,322 |
|
|
198,301 |
|
|||
Savings accounts |
|
221,172 |
|
|
228,038 |
|
|
225,691 |
|
|||
Money market accounts |
|
1,246,013 |
|
|
1,246,739 |
|
|
1,153,746 |
|
|||
Time accounts |
|
217,605 |
|
|
216,426 |
|
|
242,377 |
|
|||
Total deposits |
|
3,245,048 |
|
|
3,301,971 |
|
|
3,220,015 |
|
|||
Borrowings and other obligations |
|
77 |
|
|
116 |
|
|
154 |
|
|||
Operating lease liabilities |
|
20,668 |
|
|
21,497 |
|
|
21,509 |
|
|||
Interest payable and other liabilities |
|
21,862 |
|
|
21,093 |
|
|
24,250 |
|
|||
Total liabilities |
|
3,287,655 |
|
|
3,344,677 |
|
|
3,265,928 |
|
|||
Stockholders' Equity |
|
|
|
|||||||||
Preferred stock, no par value, Authorized - 5,000,000 shares, none issued |
|
— |
|
|
— |
|
|
— |
|
|||
Common stock, no par value, Authorized - 30,000,000 shares; issued and outstanding - 16,116,470, 16,202,869 and 16,089,454 at June 30, 2025, March 31, 2025 and December 31, 2024, respectively |
|
214,713 |
|
|
216,263 |
|
|
215,511 |
|
|||
Retained earnings |
|
238,225 |
|
|
250,815 |
|
|
249,964 |
|
|||
Accumulated other comprehensive loss, net of taxes |
|
(14,400 |
) |
|
(27,512 |
) |
|
(30,068 |
) |
|||
Total stockholders' equity |
|
438,538 |
|
|
439,566 |
|
|
435,407 |
|
|||
Total liabilities and stockholders' equity |
$ |
3,726,193 |
|
$ |
3,784,243 |
|
$ |
3,701,335 |
|
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
Three months ended |
Six months ended |
|||||||||||||
(in thousands, except per share amounts; unaudited) |
June 30, 2025 |
March 31, 2025 |
June 30, 2025 |
June 30, 2024 |
|||||||||||
Interest income |
|
|
|
|
|||||||||||
Interest and fees on loans |
$ |
25,861 |
|
$ |
25,183 |
$ |
51,044 |
|
$ |
50,129 |
|
||||
Interest on investment securities |
|
8,423 |
|
|
8,261 |
|
16,684 |
|
|
17,104 |
|
||||
Interest on federal funds sold and due from banks |
|
2,004 |
|
|
1,795 |
|
3,799 |
|
|
1,245 |
|
||||
Total interest income |
|
36,288 |
|
|
35,239 |
|
71,527 |
|
|
68,478 |
|
||||
Interest expense |
|
|
|
|
|||||||||||
Interest on interest-bearing transaction accounts |
|
351 |
|
|
343 |
|
694 |
|
|
535 |
|
||||
Interest on savings accounts |
|
587 |
|
|
533 |
|
1,120 |
|
|
882 |
|
||||
Interest on money market accounts |
|
7,878 |
|
|
7,626 |
|
15,504 |
|
|
17,090 |
|
||||
Interest on time accounts |
|
1,559 |
|
|
1,790 |
|
3,349 |
|
|
4,571 |
|
||||
Interest on borrowings and other obligations |
|
1 |
|
|
1 |
|
2 |
|
|
239 |
|
||||
Total interest expense |
|
10,376 |
|
|
10,293 |
|
20,669 |
|
|
23,317 |
|
||||
Net interest income |
|
25,912 |
|
|
24,946 |
|
50,858 |
|
|
45,161 |
|
||||
Provision for credit losses on loans |
|
— |
|
|
75 |
|
75 |
|
|
5,550 |
|
||||
Net interest income after provision for credit losses |
|
25,912 |
|
|
24,871 |
|
50,783 |
|
|
39,611 |
|
||||
Non-interest income |
|
|
|
|
|||||||||||
Earnings on bank-owned life insurance, net |
|
667 |
|
|
544 |
|
1,211 |
|
|
856 |
|
||||
Wealth management and trust services |
|
612 |
|
|
563 |
|
1,175 |
|
|
1,138 |
|
||||
Service charges on deposit accounts |
|
550 |
|
|
548 |
|
1,098 |
|
|
1,070 |
|
||||
Debit card interchange fees, net |
|
410 |
|
|
396 |
|
806 |
|
|
852 |
|
||||
Dividends on Federal Home Loan Bank stock |
|
362 |
|
|
375 |
|
737 |
|
|
743 |
|
||||
Merchant interchange fees, net |
|
90 |
|
|
96 |
|
186 |
|
|
177 |
|
||||
Losses on sale of investment securities |
|
(18,736 |
) |
|
— |
|
(18,736 |
) |
|
(32,542 |
) |
||||
Other income |
|
424 |
|
|
352 |
|
776 |
|
|
705 |
|
||||
Total non-interest income |
|
(15,621 |
) |
|
2,874 |
|
(12,747 |
) |
|
(27,001 |
) |
||||
Non-interest expense |
|
|
|
|
|||||||||||
Salaries and related benefits |
|
12,045 |
|
|
12,050 |
|
24,095 |
|
|
24,448 |
|
||||
Occupancy and equipment |
|
2,226 |
|
|
2,106 |
|
4,332 |
|
|
4,018 |
|
||||
Deposit network fees |
|
1,054 |
|
|
932 |
|
1,986 |
|
|
1,761 |
|
||||
Data processing |
|
1,041 |
|
|
1,136 |
|
2,177 |
|
|
2,075 |
|
||||
Professional services |
|
908 |
|
|
937 |
|
1,845 |
|
|
2,121 |
|
||||
Information technology |
|
563 |
|
|
413 |
|
976 |
|
|
850 |
|
||||
Federal Deposit Insurance Corporation insurance |
|
421 |
|
|
388 |
|
809 |
|
|
861 |
|
||||
Depreciation and amortization |
|
320 |
|
|
322 |
|
642 |
|
|
767 |
|
||||
Directors' expense |
|
279 |
|
|
304 |
|
583 |
|
|
623 |
|
||||
Amortization of core deposit intangible |
|
220 |
|
|
227 |
|
447 |
|
|
497 |
|
||||
Charitable contributions |
|
116 |
|
|
403 |
|
519 |
|
|
617 |
|
||||
Other expense |
|
2,297 |
|
|
2,046 |
|
4,343 |
|
|
4,425 |
|
||||
Total non-interest expense |
|
21,490 |
|
|
21,264 |
|
42,754 |
|
|
43,063 |
|
||||
(Loss) income before (benefit from) provision for income taxes |
|
(11,199 |
) |
|
6,481 |
|
(4,718 |
) |
|
(30,453 |
) |
||||
(Benefit from) provision for income taxes |
|
(2,663 |
) |
|
1,605 |
|
(1,058 |
) |
|
(11,473 |
) |
||||
Net (loss) income |
$ |
(8,536 |
) |
$ |
4,876 |
$ |
(3,660 |
) |
$ |
(18,980 |
) |
||||
Net (loss) income per common share |
|
|
|
|
|||||||||||
Basic |
$ |
(0.53 |
) |
$ |
0.31 |
$ |
(0.23 |
) |
$ |
(1.18 |
) |
||||
Diluted |
$ |
(0.53 |
) |
$ |
0.30 |
$ |
(0.23 |
) |
$ |
(1.18 |
) |
||||
Weighted average shares: |
|
|
|
|
|||||||||||
Basic |
|
15,989 |
|
|
15,977 |
|
15,983 |
|
|
16,095 |
|
||||
Diluted |
|
15,989 |
|
|
16,002 |
|
15,983 |
|
|
16,095 |
|
||||
Comprehensive income: |
|
|
|
|
|||||||||||
Net (loss) income |
$ |
(8,536 |
) |
$ |
4,876 |
$ |
(3,660 |
) |
$ |
(18,980 |
) |
||||
Other comprehensive income: |
|
|
|
|
|||||||||||
Change in net unrealized gains or losses on available-for-sale securities |
|
(486 |
) |
|
3,289 |
|
2,803 |
|
|
(4,009 |
) |
||||
Reclassification adjustment for realized losses on available-for-sale securities in net income |
|
18,736 |
|
|
— |
|
18,736 |
|
|
32,542 |
|
||||
Reclassification adjustment for gains or losses on fair value hedges |
|
— |
|
|
— |
|
— |
|
|
1,499 |
|
||||
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity |
|
365 |
|
|
340 |
|
705 |
|
|
764 |
|
||||
Other comprehensive income, before tax |
|
18,615 |
|
|
3,629 |
|
22,244 |
|
|
30,796 |
|
||||
Deferred tax expense |
|
5,503 |
|
|
1,073 |
|
6,576 |
|
|
9,097 |
|
||||
Other comprehensive income, net of tax |
|
13,112 |
|
|
2,556 |
|
15,668 |
|
|
21,699 |
|
||||
Total comprehensive income |
$ |
4,576 |
|
$ |
7,432 |
$ |
12,008 |
|
$ |
2,719 |
|
BANK OF MARIN BANCORP |
AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST INCOME |
|
Three months ended |
Three months ended |
||||||||||||||||
|
June 30, 2025 |
March 31, 2025 |
||||||||||||||||
|
|
Interest |
|
|
Interest |
|
||||||||||||
|
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ |
||||||||||||
(in thousands) |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
||||||||||||
Assets |
|
|
|
|
|
|
||||||||||||
Interest-earning deposits with banks 1 |
$ |
180,730 |
$ |
2,004 |
4.39 |
% |
$ |
163,446 |
$ |
1,795 |
4.39 |
% |
||||||
Investment securities 2, 3 |
|
1,266,317 |
|
8,495 |
2.68 |
% |
|
1,273,422 |
|
8,331 |
2.62 |
% |
||||||
Loans 1, 3, 4, 5 |
|
2,073,110 |
|
25,965 |
4.95 |
% |
|
2,073,739 |
|
25,289 |
4.88 |
% |
||||||
Total interest-earning assets 1 |
|
3,520,157 |
|
36,464 |
4.10 |
% |
|
3,510,607 |
|
35,415 |
4.04 |
% |
||||||
Cash and non-interest-bearing due from banks |
|
37,721 |
|
|
|
37,493 |
|
|
||||||||||
Bank premises and equipment, net |
|
7,259 |
|
|
|
6,831 |
|
|
||||||||||
Interest receivable and other assets, net |
|
172,657 |
|
|
|
173,135 |
|
|
||||||||||
Total assets |
$ |
3,737,794 |
|
|
$ |
3,728,066 |
|
|
||||||||||
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||||||||||||
Interest-bearing transaction accounts |
$ |
187,297 |
$ |
351 |
0.75 |
% |
$ |
191,089 |
$ |
343 |
0.73 |
% |
||||||
Savings accounts |
|
222,524 |
|
587 |
1.06 |
% |
|
227,098 |
|
533 |
0.95 |
% |
||||||
Money market accounts |
|
1,227,506 |
|
7,878 |
2.57 |
% |
|
1,192,956 |
|
7,626 |
2.59 |
% |
||||||
Time accounts including CDARS |
|
218,150 |
|
1,559 |
2.87 |
% |
|
228,018 |
|
1,790 |
3.18 |
% |
||||||
Borrowings and other obligations 1 |
|
91 |
|
1 |
3.39 |
% |
|
130 |
|
1 |
2.86 |
% |
||||||
Total interest-bearing liabilities |
|
1,855,568 |
|
10,376 |
2.24 |
% |
|
1,839,291 |
|
10,293 |
2.27 |
% |
||||||
Demand accounts |
|
1,398,570 |
|
|
|
1,406,648 |
|
|
||||||||||
Interest payable and other liabilities |
|
44,469 |
|
|
|
44,951 |
|
|
||||||||||
Stockholders' equity |
|
439,187 |
|
|
|
437,176 |
|
|
||||||||||
Total liabilities & stockholders' equity |
$ |
3,737,794 |
|
|
$ |
3,728,066 |
|
|
||||||||||
Tax-equivalent net interest income/margin 1 |
|
$ |
26,088 |
2.93 |
% |
|
$ |
25,122 |
2.86 |
% |
||||||||
Reported net interest income/margin 1 |
|
$ |
25,912 |
2.91 |
% |
|
$ |
24,946 |
2.84 |
% |
||||||||
Tax-equivalent net interest rate spread |
|
|
1.86 |
% |
|
|
1.77 |
% |
||||||||||
|
|
|
|
|
|
|
||||||||||||
|
Six months ended |
Six months ended |
||||||||||||||||
|
June 30, 2025 |
June 30, 2024 |
||||||||||||||||
|
|
Interest |
|
|
Interest |
|
||||||||||||
|
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ |
||||||||||||
(in thousands) |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
||||||||||||
Assets |
|
|
|
|
|
|
||||||||||||
Interest-earning deposits with banks 1 |
$ |
172,136 |
$ |
3,799 |
4.39 |
% |
$ |
45,613 |
$ |
1,245 |
5.40 |
% |
||||||
Investment securities 2, 3 |
|
1,269,850 |
|
16,821 |
2.65 |
% |
|
1,480,462 |
|
17,247 |
2.33 |
% |
||||||
Loans 1, 3, 4, 5 |
|
2,073,423 |
|
51,254 |
4.92 |
% |
|
2,063,351 |
|
50,346 |
4.83 |
% |
||||||
Total interest-earning assets 1 |
|
3,515,409 |
|
71,874 |
4.07 |
% |
|
3,589,426 |
|
68,838 |
3.79 |
% |
||||||
Cash and non-interest-bearing due from banks |
|
37,608 |
|
|
|
36,275 |
|
|
||||||||||
Bank premises and equipment, net |
|
7,046 |
|
|
|
7,564 |
|
|
||||||||||
Interest receivable and other assets, net |
|
172,894 |
|
|
|
147,949 |
|
|
||||||||||
Total assets |
$ |
3,732,957 |
|
|
$ |
3,781,214 |
|
|
||||||||||
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||||||||||||
Interest-bearing transaction accounts |
$ |
189,182 |
$ |
694 |
0.74 |
% |
$ |
206,268 |
$ |
535 |
0.52 |
% |
||||||
Savings accounts |
|
224,798 |
|
1,120 |
1.00 |
% |
|
228,559 |
|
882 |
0.78 |
% |
||||||
Money market accounts |
|
1,210,327 |
|
15,504 |
2.58 |
% |
|
1,152,492 |
|
17,090 |
2.98 |
% |
||||||
Time accounts including CDARS |
|
223,057 |
|
3,349 |
3.03 |
% |
|
262,598 |
|
4,571 |
3.50 |
% |
||||||
Borrowings and other obligations 1 |
|
110 |
|
2 |
3.08 |
% |
|
9,116 |
|
239 |
5.18 |
% |
||||||
Total interest-bearing liabilities |
|
1,847,474 |
|
20,669 |
2.26 |
% |
|
1,859,033 |
|
23,317 |
2.52 |
% |
||||||
Demand accounts |
|
1,402,587 |
|
|
|
1,440,114 |
|
|
||||||||||
Interest payable and other liabilities |
|
44,709 |
|
|
|
47,735 |
|
|
||||||||||
Stockholders' equity |
|
438,187 |
|
|
|
434,332 |
|
|
||||||||||
Total liabilities & stockholders' equity |
$ |
3,732,957 |
|
|
$ |
3,781,214 |
|
|
||||||||||
Tax-equivalent net interest income/margin 1 |
|
$ |
51,205 |
2.90 |
% |
|
$ |
45,521 |
2.51 |
% |
||||||||
Reported net interest income/margin 1 |
|
$ |
50,858 |
2.88 |
% |
|
$ |
45,161 |
2.49 |
% |
||||||||
Tax-equivalent net interest rate spread |
|
|
1.81 |
% |
|
|
1.27 |
% |
||||||||||
|
|
|
|
|
|
|
||||||||||||
1 Interest income/expense is divided by actual number of days in the period times 360 days to correspond to stated interest rate terms, where applicable. |
||||||||||||||||||
2 Yields on available-for-sale securities are calculated based on amortized cost balances rather than fair value, as changes in fair value are reflected as a component of stockholders' equity. Investment security interest is earned on 30/360 day basis monthly. |
||||||||||||||||||
3 Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the Federal statutory rate of 21 percent. |
||||||||||||||||||
4 Average balances on loans outstanding include non-performing loans. The amortized portion of net loan origination fees is included in interest income on loans, representing an adjustment to the yield. |
||||||||||||||||||
5 Net loan origination costs in interest income totaled |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250728141025/en/
MEDIA CONTACT:
Yahaira Garcia-Perea
Marketing & Corporate Communications Manager
916-823-7214 | YahairaGarcia-Perea@bankofmarin.com
Source: Bank of Marin Bancorp