STOCK TITAN

Bank of Marin Bancorp (Nasdaq: BMRC) lifts Q2 EPS to $0.58 as margin hits 3.38%

(High)
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Bank of Marin Bancorp reported second quarter 2026 net income of $9.246 million, up from $8.510 million in the first quarter and compared with a net loss a year earlier. Diluted EPS was $0.58, and tax‑equivalent net interest margin expanded to 3.38% from 3.24%, supported by higher average loan yields and lower deposit costs.

Return on average assets was 0.96% and return on average equity 9.38%. Loans ended the quarter at $2.101 billion, slightly below March 31, while funded loan originations reached $62.8 million. Credit quality metrics were solid, with non‑accrual loans at $8.5 million, or 0.40% of total loans, a $320 thousand reversal of credit loss provision, and an allowance equal to 1.07% of total loans.

Total deposits decreased 1.7% sequentially to $3.370 billion, with non‑interest‑bearing balances comprising 36.7% of deposits and an average deposit cost of 1.28%. Capital remained strong, including a total risk‑based capital ratio of 15.58% and a tangible common equity to tangible assets ratio of 8.52%. The board approved a quarterly cash dividend of $0.25 per share, payable August 13, 2026.

Positive

  • Profitability rebounded sharply year-over-year: comparable net income rose to $9.246 million from $4.662 million and comparable diluted EPS doubled to $0.58 from $0.29 for Q2 2025, driven largely by net interest margin expansion.
  • Capital and balance sheet strength improved: Bancorp’s total risk-based capital ratio increased to 15.58% and its tangible common equity to tangible assets ratio rose to 8.52%, remaining comfortably above well-capitalized regulatory thresholds.

Negative

  • None.

Filing Explained

Unused liquidity capacity and a completed credit-exposure exit add flexibility, while the remaining buyback authorization is not a completed repurchase.

As of June 30, 2026, Bank of Marin Bancorp reported $2.177 billion of net available funding, with $0 used; this is disclosed liquidity capacity, not funding drawn.

The pool included unrestricted cash, unencumbered securities, and unused borrowing capacity from the FHLB, the Federal Reserve, and correspondent banks.

The quarter also included completion of a planned $19.0 million exit from special mention loans tied to one relationship; subsequent payoffs reduced special mention loans by $2.3 million and classified loans by $785 thousand.

The common-stock repurchase authorization remains available through July 31, 2027: $23.9 million remained authorized at quarter-end, and the filing reports no repurchases during the quarter, so this is capacity rather than a completed buyback.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income Q2 2026 $9,246 thousand Consolidated net income for the three months ended June 30, 2026
Diluted EPS Q2 2026 $0.58 per share Diluted earnings per common share for the quarter ended June 30, 2026
Tax-equivalent net interest margin 3.38 % Tax-equivalent net interest margin for Q2 2026, up from 3.24% in Q1 2026
Return on average assets 0.96 % ROA for the three months ended June 30, 2026
Total deposits $3,369,900 thousand Total deposits outstanding as of June 30, 2026
Total loans $2,100,976 thousand Loans at amortized cost as of June 30, 2026
Total risk-based capital ratio 15.58 % Bancorp total capital to risk-weighted assets as of June 30, 2026
Tangible common equity to tangible assets 8.52 % Bancorp TCE ratio as of June 30, 2026
tax-equivalent net interest margin financial
"Tax-equivalent net interest margin was 3.38% compared to 3.24% in the prior quarter"
Net interest margin measures the percentage difference between interest a lender earns on its assets and interest it pays on liabilities; tax-equivalent net interest margin adjusts that figure to account for tax-exempt interest by converting it into the taxable-equivalent yield using a chosen tax rate. This makes the margin comparable across institutions or assets by reflecting what tax-free income would be worth if it were taxed, like converting prices into the same currency so you can compare them directly.
special mention loans financial
"completion of a planned exit of $19.0 million in special mention loans related to one relationship"
Loans placed on “special mention” are credit accounts a bank flags because they show early signs of potential trouble—such as slipping payments, weaker borrower cash flow, or collateral issues—but are not yet officially delinquent. Think of them as a yellow-flagged item on a checklist: they warn investors the lender’s loan book may weaken and could require higher provisions or future write-downs, so tracking their size and trend helps assess credit risk and earnings vulnerability.
tangible common equity to tangible assets financial
"Bancorp's tangible common equity to tangible assets (TCE ratio) increased 19 basis points to 8.52%"
Tangible common equity to tangible assets is a ratio that compares the amount of common shareholders’ capital after removing intangible items (like goodwill) to a company’s physical and financial assets after the same removal. It tells investors how much real, loss‑absorbing capital supports each dollar of tangible assets—think of it as the safety cushion under a car: the thicker the cushion, the more protection against unexpected losses.
liquidity coverage ratio financial
"monitored using metrics and tools similar to larger banks, such as the liquidity coverage ratio"
The liquidity coverage ratio is a banking rule that measures whether a bank has enough high-quality, easy-to-sell assets to cover expected net cash outflows for 30 days. Think of it as a household’s emergency fund that must cover a month of bills; for investors, a higher ratio means the bank is better positioned to survive short-term stress, reducing the risk of fire sales, funding problems, or sudden capital needs that can hurt the share price.
non-owner occupied commercial real estate financial
"Low NOO CRE office exposure in the City of San Francisco at 2% of total loans"
one-way sales of deposits financial
"active balance sheet management through one-way sales of deposits contributing to margin"
Net income $9,246 thousand up 8.6% from $8,510 thousand in Q1 2026
Diluted EPS $0.58 up 9.4% from $0.53 in Q1 2026
Tax-equivalent net interest margin 3.38 % up 14 basis points from 3.24% in Q1 2026

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

What were Bank of Marin Bancorp (BMRC) earnings for the second quarter of 2026?

Bank of Marin Bancorp reported Q2 2026 net income of $9.246 million, up from $8.510 million in Q1 2026. Diluted EPS was $0.58, compared with a diluted loss per share of $0.53 in Q2 2025, reflecting improved profitability and margin expansion.

How did Bank of Marin Bancorp (BMRC) net interest margin perform in Q2 2026?

Tax-equivalent net interest margin improved to 3.38% in Q2 2026 from 3.24% in Q1 2026. The increase was mainly driven by 8 basis points higher loan yields, a 7 basis point drop in deposit costs, and active balance sheet management including one-way sales of deposits.

What dividend did Bank of Marin Bancorp (BMRC) declare for shareholders?

The board declared a quarterly cash dividend of $0.25 per share on July 23, 2026. The dividend is payable August 13, 2026, to shareholders of record at the close of business on August 6, 2026, marking the company’s 85th consecutive quarterly dividend.

What were Bank of Marin Bancorp (BMRC) loan and deposit levels at June 30, 2026?

At June 30, 2026, total loans were $2.101 billion and total deposits were $3.370 billion. Deposits declined $58.2 million, or 1.7%, from March 31, 2026, while non-interest-bearing deposits represented 36.7% of total deposits.

How strong were Bank of Marin Bancorp (BMRC) capital ratios in Q2 2026?

As of June 30, 2026, Bancorp reported a total risk-based capital ratio of 15.58%, a Tier 1 leverage ratio of 8.66%, and a tangible common equity to tangible assets ratio of 8.52%, all above well-capitalized regulatory benchmarks and supported by internal stress testing.

What is the credit quality profile for Bank of Marin Bancorp (BMRC) as of Q2 2026?

Credit quality indicators were stable to improving, with non-accrual loans at $8.5 million, or 0.40% of total loans, and classified loans at $19.9 million. The bank recorded a $320 thousand reversal of credit loss provision, and its allowance covered 1.07% of total loans.

How much liquidity does Bank of Marin Bancorp (BMRC) have available?

At June 30, 2026, the bank had $2.1771 billion in net available funding sources, including unrestricted cash, unencumbered securities, and borrowing capacity. This provided coverage equal to about 214% of estimated uninsured and/or uncollateralized deposits, supporting its liquidity position.
0001403475FALSE00014034752026-07-232026-07-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549 


FORM 8-K


CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 23, 2026

Bank of Marin Bancorp
(Exact name of Registrant as specified in its charter)
California  
  001-3357220-8859754
(State or other jurisdiction of incorporation)  (Commission File Number)(IRS Employer Identification No.)
504 Redwood Blvd., Suite 100, Novato, CA 
94947
(Address of principal executive office)(Zip Code)

Registrant’s telephone number, including area code:  (415) 763-4520

Not Applicable
(Former name or former address, if changes since last report)
Check the appropriate box below if the Form 8-K filing is to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c)) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common stock, no par value BMRCThe Nasdaq Stock Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐ 






Section 2 - Financial Information

Item 2.02    Results of Operations and Financial Condition

On July 27, 2026, Bank of Marin Bancorp, "Bancorp" (Nasdaq: BMRC), parent company of Bank of Marin, released its financial results for the quarter ended June 30, 2026. A copy of the press release is included as Exhibit 99.1.

The press release will be available on Bank of Marin's website at http://www.bankofmarin.com under “Investor Relations/News & Market Data/Press Releases" and "Presentations” on July 27, 2026.

Section 7 - Regulation FD

Item 7.01    Regulation FD Disclosure

Bancorp is furnishing presentation materials that may be used at various investor conferences during the third quarter of 2026. The Company is not undertaking to update the earnings presentation. A copy of the presentation is attached as Exhibit 99.2 to this report and is being furnished to the SEC and shall not be deemed “filed” for any purpose.
The earnings presentations will be available on Bank of Marin’s website at http://www.bankofmarin.com under Investor Relations/News & Market Data/Press Releases” on July 27, 2026.

Section 8 - Other Events

Item 8.01     Other Events
    
In the press release, Bancorp announced that on July 23, 2026, its Board of Directors approved a quarterly cash dividend of $0.25 per share. The cash dividend is payable on August 13, 2026, to shareholders of record at the close of business on August 6, 2026.

A copy of the press release is attached to this report as Exhibit 99.1.

Section 9 - Financial Statements and Exhibits

Item 9.01    Financial Statements and Exhibits

(d)    Exhibits.
Exhibit No.
Description    
Page Number
99.1
Press Release dated July 27, 2026
1-13
99.2
Second Quarter 2026 Earnings Presentation
104Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:July 27, 2026BANK OF MARIN BANCORP
By:/s/ David Bonaccorso
David Bonaccorso
Executive Vice President
and Chief Financial Officer



EXHIBIT 99.1
bankofmarinbancorplogoa22.jpg
FOR IMMEDIATE RELEASE MEDIA CONTACT:
Yahaira Garcia-Perea
Marketing & Corporate Communications Manager
916-823-7214 | YahairaGarcia-Perea@bankofmarin.com

BANK OF MARIN BANCORP REPORTS SECOND QUARTER FINANCIAL RESULTS
QUARTERLY EPS OF $0.58, 14 BASIS POINT EXPANSION OF NET INTEREST MARGIN


NOVATO, CA, July 27, 2026 - Bank of Marin Bancorp, "Bancorp" (Nasdaq: BMRC), parent company of Bank of Marin, "Bank," completed another quarter of improved financial performance, reflecting continued enhanced profitability, earnings power and overall balance sheet strength. This performance was supported by progress across key financial and operating priorities:

Increased earnings per share
Expanded net interest margin
Reduced funding costs
Improved asset quality
Sustained loan origination growth
Improving capital ratios

BMRC reports net income of $9.2 million for the second quarter of 2026. This compares to net income of $8.5 million for the first quarter of 2026 and a net loss of $8.5 million (net income of $4.7 million non-GAAP) for the second quarter of 2025. Diluted earnings per share was $0.58 for the second quarter, compared to diluted earnings per share of $0.53 for the prior quarter and diluted loss per share of $0.53 (earnings per share of $0.29 non-GAAP) for the second quarter of the prior year. Continued net interest margin expansion largely drove these increases, contributing to a 100% year-over-year increase in quarterly diluted earnings per share on a non-GAAP basis.

Selected Financial Results
Comparable (non-GAAP) Excluding Loss on Sale of SecuritiesThree months endedSix months ended
 (in thousands, except per share amounts; unaudited)
June 30, 2026March 31, 2026% ChangeJune 30, 2025% ChangeJune 30, 2026June 30, 2025% Change
Pre-tax, pre-provision net income (loss)
Pre-tax, pre-provision net income (loss) (GAAP)
$12,353 $11,597 6.5 %$(11,199)NM$23,950 $(4,643)NM
Comparable pre-tax, pre-provision net income (non-GAAP)
12,353 11,597 6.5 %7,537 63.9 %23,950 14,093 69.9 %
Net income (loss)
Net income (loss) (GAAP)
9,246 8,510 8.6 %(8,536)NM17,756 (3,660)NM
Comparable net income (non-GAAP)9,246 8,510 8.6 %4,662 98.3 %17,756 9,538 86.2 %
Diluted earnings (loss) per share
Weighted average diluted shares
Diluted earnings (loss) per share (GAAP)$0.58 $0.53 9.4 %$(0.53)NM$1.11 $(0.23)NM
Comparable diluted earnings per share (non-GAAP)$0.58 $0.53 9.4 %$0.29 100.0 %$1.11 $0.60 85.0 %
See complete Reconciliation of GAAP and Non-GAAP Financial Measures below
Related non-GAAP tax benefit calculated using blended statutory rate of 29.5636%
NM Not meaningful

Concurrent with this release, Bancorp issued presentation slides providing supplemental information, some of which will be discussed during the second quarter 2026 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.”

1


"Our profitability continued to benefit from the successful balance sheet restructuring actions we implemented over the past year, along with positive trends in higher-yielding loan originations, prudent expense management and disciplined deposit pricing strategies," said President & CEO Tim Myers. "Those efforts contributed to continued net interest margin expansion and stronger capital ratios during the quarter. While period-end loan balances declined due to the substantial planned exit within one relationship, healthy loan production and a meaningful decline in criticized loans reflect our ongoing focus on strengthening the balance sheet and improving credit quality."

Additional highlights for the second quarter of 2026 included the following:

The second quarter tax-equivalent net interest margin improved 14 basis points over the preceding quarter to 3.38% from 3.24% due largely to improved average loan yields of eight basis points, targeted deposit rate cuts that dropped the average cost of deposits and interest bearing deposits by seven and six basis points, respectively, and active balance sheet management through one-way sales of deposits contributing to the decrease of seven basis points in the quarterly cost of deposits.
During the quarter, the Bank continued working to improve credit quality which included the completion of a planned exit of $19.0 million in special mention loans related to one relationship, significantly reducing the Bank's exposure to the wine industry and reducing special mention loans to $100.9 million. Non-accrual loans declined by $191 thousand or 0.40% of total loans from 0.41%, while classified loans increased by $1.9 million, or 0.95% of total loans from 0.85% last quarter. Subsequent to quarter-end, the Bank received loan payoffs which reduced special mention loans and classified loans by $2.3 million and $785 thousand, respectively.

The Bank recorded a reversal of the provision for credit losses on loans of $320 thousand in the second quarter of 2026 compared to no provision in the prior quarter. The allowance for credit losses was 1.07% and 1.08% of total loans at June 30, 2026 and March 31, 2026, respectively.

Funded loans in the second quarter of 2026 of $62.8 million were 24% higher than the second quarter of the prior year and 3% higher than the prior quarter.

Return on average assets ("ROA"), return on average equity ("ROE"), and the efficiency ratio improved on a GAAP basis from the prior quarter, as shown below. All three ratios benefited from increased revenue and reduced non-interest expense in the second quarter, mainly within salaries and related benefits and due to the annual charitable contributions made in the first quarter of 2026. Non-GAAP ratios for the prior year exclude the loss on security sales in that period, all other factors unchanged, and with adjustments made based on our blended statutory tax rate of 29.56%. See Reconciliation of GAAP and Non-GAAP Financial Measures below.





















2


Operating Results
Comparable (non-GAAP) Excluding Loss on Sale of SecuritiesThree months endedSix months ended
 (in thousands, except per share amounts; unaudited)
June 30, 2026March 31, 2026June 30, 2025June 30, 2026June 30, 2025
Return on average assets
Average assets$3,850,140 $3,989,253 $3,737,794 $3,919,312 $3,732,957 
Return on average assets (GAAP)0.96 %0.87 %(0.92)%0.91 %(0.20)%
Comparable return on average assets (non-GAAP)0.96 %0.87 %0.50 %0.91 %0.52 %
Return on average equity
Average stockholders' equity$395,328 $398,017 $439,187 $396,665 $438,187 
Return on average equity (GAAP)9.38 %8.67 %(7.80)%9.03 %(1.68)%
Comparable return on average equity (non-GAAP)9.38 %8.67 %4.26 %9.03 %4.39 %
Return on average tangible common equity
Average goodwill and intangibles$74,393 $74,591 $75,230 $74,491 $75,336 
Average tangible common equity$320,935 $323,426 $363,957 $322,174 $362,851 
Return on average tangible common equity (GAAP)11.56 %10.67 %(9.41)%11.11 %(2.03)%
Comparable return on average tangible common equity (non-GAAP)11.56 %10.67 %5.14 %11.11 %5.30 %
Efficiency ratio
Efficiency ratio (GAAP)63.62 %66.03 %219.76 %64.82 %112.77 %
Comparable efficiency ratio (non-GAAP)63.62 %66.03 %73.17 %64.82 %74.42 %
See complete Reconciliation of GAAP and Non-GAAP Financial Measures below
Related non-GAAP tax benefit calculated using blended statutory rate of 29.5636%

Capital was above well-capitalized regulatory thresholds. Total risk-based capital improved by 32 basis points to 15.58% as of June 30, 2026 for Bancorp compared to 15.26% as of March 31, 2026. Bancorp's tangible common equity to tangible assets ("TCE ratio") improved by 19 basis points to 8.52% as of June 30, 2026. Bancorp's Tier I leverage ratio increased to 8.66% as of June 30, 2026 from 8.23% last quarter. Book value per share and tangible book value per share improved by $0.14 and $0.15 to $24.51 and $19.92, respectively.

The average cost of interest bearing deposits decreased from 2.10% to 2.04% in the second quarter of 2026 compared to the prior quarter, and the average cost of total deposits decreased from 1.35% to 1.28%. The quarter-end spot rate at March 31, 2026 of 1.31% dropped to 1.28% at June 30, 2026. Non-interest bearing deposits continued to make up a strong portion of total deposits at 36.7% as of June 30, 2026, compared to 35.9% last quarter.

Total deposits decreased by $58.2 million, or 1.70%, to $3.370 billion as of June 30, 2026 compared to $3.428 billion as of March 31, 2026. The decrease was primarily attributable to a small number of relationships and reflected seasonal customer activity and investment decisions, rather than broader changes in deposit trends. In addition, seasonal tax-related outflows contributed to the second quarter decrease.

The Board of Directors declared a cash dividend of $0.25 per share on July 23, 2026, which was the 85th consecutive quarterly dividend paid by Bancorp. The dividend is payable on August 13, 2026 to shareholders of record at the close of business on August 6, 2026.

“As expected, non-interest expense improved by $942 thousand in the quarter following elevated seasonal levels in the prior quarter, mainly in salaries and related benefits as well as charitable contributions,” said Chief Financial Officer Dave Bonaccorso. “Tax equivalent net interest margin expanded by 14 basis points during the quarter due to improved loan yields, targeted deposit rate cuts, and periodic one-way sales of deposits. We remain committed to actively managing our balance sheet to support our strategic growth while balancing profitability, liquidity, interest rate risk, and capital management."


Loans and Credit Quality

Loans decreased by $14.7 million for the second quarter and totaled $2.101 billion as of June 30, 2026, compared to $2.116 billion as of March 31, 2026. Second quarter 2026 new fundings were $62.8 million compared to $60.8 in
3


the prior quarter and $50.6 million in the second quarter of 2025. Second quarter 2026 payoffs included completion of a planned exit of $19.0 million in special mention loans related to one relationship.
Three months endedSix months ended
 (in millions; unaudited)June 30, 2026March 31, 2026June 30, 2025June 30, 2026June 30, 2025
Gross loans beginning balance$2,115.7 $2,120.9 $2,073.5 $2,120.9 $2,083.3 
Newly funded
62.8 60.8 50.6 123.6 98.0 
New total commitments1
98.4 80.5 69.2 178.9 132.8 
Purchased — — — — — 
Net increase (decrease) in line of credit utilization14.5 0.6 4.6 15.1 (6.6)
Paydowns and maturities (71.2)(30.6)(36.5)(101.8)(59.9)
Charge-offs— (7.3)— (7.3)(0.8)
Note sales
— (9.1)— (9.1)(1.3)
Amortization (20.8)(19.6)(18.6)(40.4)(39.1)
Gross loans ending balance$2,101.0 $2,115.7 $2,073.6 $2,101.0 $2,073.6 
1 New total commitments includes both newly funded loans and new unfunded commitments

Non-accrual loans declined by $191 thousand during the quarter to $8.5 million, or 0.40% of total loans, compared to $8.6 million, or 0.41%, at March 31, 2026. The reduction was driven primarily by pay offs and paydowns.

Classified loans increased by $1.9 million during the second quarter to $19.9 million, up from $17.9 million at March 31, 2026. The increase was due to the downgrade of six loans, of which $785 thousand has since paid off. All downgraded loans are paying as agreed.

Loans designated as special mention, which are not considered adversely classified, decreased to $100.9 million at June 30, 2026, compared to $119.4 million at March 31, 2026, largely due to the planned exit of $19.0 million in loans related to one relationship.

Accruing loans past due 30 to 89 days totaled $2.0 million at June 30, 2026, up from $683 thousand at March 31, 2026.

Net charge-offs totaled $39 thousand in the second quarter of 2026 compared to $7.3 million in the prior quarter. The prior quarter net charge-offs were driven by charge offs of $7.2 million related to two non-accrual loans that were sold in the quarter. These charge‑offs were fully offset by specific reserves that were already in place for the two loans at that time.

The Bank recorded a $320 thousand reversal of provision for credit losses on loans in the second quarter of 2026 driven by lower loan balances and improved credit quality in the non-owner occupied commercial real estate portfolio. There was no provision for credit losses in the prior quarter.
The ratio of allowance for credit losses to total loans remained stable at 1.07% at June 30, 2026 compared to 1.08% at March 31, 2026.
There was no provision for credit losses on unfunded loan commitments in the second quarter of 2026 or in the prior quarter.

Cash, Cash Equivalents and Restricted Cash

Total cash, cash equivalents and restricted cash were $279.6 million at June 30, 2026, an increase of $43.0 million compared to $236.6 million at March 31, 2026, largely due to investment security paydowns.

Investments

The investment securities portfolio totaled $1.243 billion at June 30, 2026, a decrease of $83.4 million from March 31, 2026. The decrease in the portfolio was due to principal repayments and calls/maturities totaling $77.6 million and $1.1 million, respectively, and an increase of $4.8 million in unrealized losses on available-for-sale ("AFS") securities. The portfolio is eligible for pledging to the Federal Home Loan Bank ("FHLB") and the Federal Reserve as collateral for borrowing, and is comprised of high credit quality investments with an average effective duration of 2.91. The portfolio generates cash flows monthly from interest, principal amortization and payoffs, which
4


supports the Bank's liquidity. Those cash flows totaled $92.1 million and $73.4 million in the second quarter of 2026 and the first quarter of 2026, respectively.

Deposits

Deposits decreased $58.2 million, or 1.7%, to $3.370 billion at June 30, 2026, compared to $3.428 billion at March 31, 2026. The decrease was primarily attributable to a small number of relationships and reflected seasonal customer activity and investment decisions, rather than broader changes in deposit trends. In addition, seasonal tax-related outflows contributed to the second quarter decrease. Interest bearing transaction accounts decreased by $238.1 million while money market accounts increased by $198.1 million as a result of the transfer of approximately $170 million in reciprocal deposits during the quarter. As of June 30, 2026, total one-way sales decreased from $78.5 million to zero although the Bank sold an average of $94.7 million during the quarter which enhanced non-interest income and net interest margin. Non-interest bearing deposits continued to make up a strong 36.7% of total deposits at June 30, 2026, compared to 35.9% at March 31, 2026. The Bank's competitive and balanced approach to relationship management and focused outreach to customers seeking alternative options for banking solutions generated nearly 1,000 new accounts during the second quarter, 42% of which were new relationships.

Borrowings and Liquidity

As of June 30, 2026, the Bank had no outstanding short-term borrowings, consistent with March 31, 2026. Net available funding sources, including unrestricted cash, unencumbered available-for-sale securities and total available borrowing capacity totaled $2.177 billion, or 65% of total deposits and 214% of estimated uninsured and/or uncollateralized deposits as of June 30, 2026.

The following table details the components of our contingent liquidity sources as of June 30, 2026.

(in millions)
Total AvailableAmount UsedNet Availability
Internal Sources
Unrestricted cash 1
$256.6 $— $256.6 
Unencumbered securities at market value491.7 — 491.7 
External Sources
FHLB line of credit978.4 — 978.4 
FRB line of credit 310.4 — 310.4 
Lines of credit at correspondent banks140.0 — 140.0 
Total Liquidity$2,177.1 $— $2,177.1 
1 Excludes cash items in transit as of June 30, 2026.
Note: There were no off-balance sheet one-way sell deposits as of June 30, 2026.

Subordinated Notes

During the fourth quarter of 2025, Bancorp issued Fixed-to-Floating Subordinated Notes of $45.0 million with a final maturity date of December 1, 2035, to certain investors in a private placement to strengthen capital ratios as part of the balance sheet repositioning. The interest rate of the Bank’s subordinated notes is 6.75%, payable semi-annually in arrears on June 1 and December 1 of each year, which commenced on June 1, 2026. After December 1, 2030, the interest rate will be variable and equal Three-Month Term SOFR plus 335 basis points, resetting quarterly. Subordinated notes outstanding were $44.0 million, net of issuance costs, at June 30, 2026.

Capital Resources

Our capital ratios are summarized in the table below.

Capital Ratios
June 30, 2026March 31, 2026June 30, 2025


(dollars in thousands)
Bancorp
Bank
Bancorp
Bank
Bancorp
Bank
Common Equity Tier 1 to RWA12.93 %13.69 %12.61 %13.17 %15.03 %13.78 %
Total Tier I to RWA12.93 %13.69 %12.61 %13.17 %15.03 %13.78 %
Total Capital to RWA15.58 %14.61 %15.26 %14.09 %16.25 %15.00 %
Tier I Leverage Ratio to Avg Assets8.66 %9.16 %8.23 %8.59 %10.22 %9.37 %
Tangible Common Equity to TA8.52 %9.03 %8.33 %8.70 %9.95 %9.09 %
5



Bancorp's tangible common equity to tangible assets ("TCE ratio") increased 19 basis points to 8.52% at June 30, 2026, compared to 8.33% at March 31, 2026. Bancorp's total capital to risk weighted assets increased 32 basis points to 15.58% at June 30, 2026, from 15.26% at March 31, 2026. The Bank's capital plan and point-in-time capital stress tests indicate that capital ratios will remain above regulatory well-capitalized and internal policy minimums throughout a five-year forecast horizon and across stress scenarios such as additional unrealized losses on the investment portfolio, additional deposit growth or decline, loan credit quality deterioration, and potential share repurchases. Book value per share and tangible book value per share improved by $0.14 and $0.15 to $24.51 and $19.92, respectively. Accumulated comprehensive income worsened by $3.4 million in the quarter due to higher market interest rates.

Earnings

Net Interest Income

Net interest income totaled $30.8 million for the second quarter of 2026, a $479 thousand increase from the prior quarter. This was driven by an increase of $733 thousand in interest income on loans, largely due to an 8 basis point increase in yields due to growth at higher rates. Also contributing significantly was the reduction of $934 thousand in interest expense on deposits, due to strategic rate decreases and active balance sheet management through one-way sales of deposits.

The net interest margin increased 14 basis points to 3.38% for the second quarter of 2026, compared to 3.24% for the prior quarter. The increase is mostly explained by an eight basis point increase in loan yields, a seven basis point decrease in cost of deposits, and the use of one-way sales of deposits, which improved the mix of average earnings assets.

Non-Interest Income

Non-interest income was $3.2 million for the second quarter of 2026, compared to $3.8 million for the prior quarter. The decrease of $665 thousand from the prior quarter was primarily attributable to a decrease in dividend income on FHLB stock of $656 thousand which included the $479 thousand special dividend received in the first quarter. There were also bank owned life insurance death benefits of $479 thousand received in the first quarter, not repeated in the second. These were partially offset by the increase in fee income within other income of $377 thousand due to one-way sales of deposits in the quarter, as mentioned above.

Non-Interest Expense

Non-interest expense totaled $21.6 million for the second quarter of 2026, compared to $22.5 million for the prior quarter, a decrease of $942 thousand, primarily driven by a decrease of $785 thousand in salaries and related benefits expense in the second quarter of 2026. Consistent with annual adjustments and our compensation cycle, the prior quarter expense included updated incentive bonus accruals, 401(k) contribution matching, profit sharing accruals, payroll taxes, and stock-based compensation grants, in addition to lower deferred loan origination costs. These were partially offset by customary annual salary increases effective April 2026 and an increased number of full-time equivalent employees. Also decreasing the quarterly expense was the $247 thousand reduction in charitable contributions since the majority of the annual giving campaign takes place in the first quarter of the year. Partially offsetting these was an increase of $278 thousand in professional services mostly related to audit, operations, compliance, information security and accounting fees.

Share Repurchase Program

On July 24, 2025, the Board of Directors authorized the repurchase of up to $25.0 million of its common stock effective July 24, 2025 through July 31, 2027. There were no repurchases in the second quarter of 2026 or in the first quarter of 2026. As of June 30, 2026, the amount remaining available for repurchase of shares was $23.9 million.

6


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 providing selected financial measures that exclude the loss on sale of securities 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.










































7


Reconciliation of GAAP and Non-GAAP Financial Measures

 (in thousands, except per share amounts; unaudited)
Three months endedSix months ended
Pre-tax, pre-provision net income (loss)
June 30, 2026March 31, 2026June 30, 2025June 30, 2026June 30, 2025
Income (loss) before provision for (benefit from) income taxes
$12,673 $11,597 $(11,199)$24,270 $(4,718)
(Reversal of) provision for credit losses on loans(320)— — (320)75 
Pre-tax, pre-provision net income (loss) (GAAP)
12,353 11,597 (11,199)23,950 (4,643)
Adjustments:
Losses on sale of investment securities from portfolio repositioning— — 18,736 — 18,736 
Comparable pre-tax, pre-provision net income (non-GAAP)
$12,353 $11,597 $7,537 $23,950 $14,093 
Net income (loss)
Net income (loss) (GAAP)
$9,246 $8,510 $(8,536)$17,756 $(3,660)
Adjustments:
Losses on sale of investment securities from portfolio repositioning— — 18,736 — 18,736 
Related income tax benefit1
— — (5,538)— (5,538)
Adjustments, net of taxes— — 13,198 — 13,198 
Comparable net income (non-GAAP)$9,246 $8,510 $4,662 $17,756 $9,538 
Diluted earnings (loss) per share
Weighted average diluted shares$15,991 $15,973 $15,989 $15,983 $15,983 
Diluted earnings (loss) per share (GAAP)
$0.58 $0.53 $(0.53)$1.11 $(0.23)
Comparable diluted earnings per share (non-GAAP)$0.58 $0.53 $0.29 $1.11 $0.60 
Return on average assets
Average assets$3,850,140 $3,989,253 $3,737,794 $3,919,312 $3,732,957 
Return on average assets (GAAP)0.96 %0.87 %(0.92)%0.91 %(0.20)%
Comparable return on average assets (non-GAAP)0.96 %0.87 %0.50 %0.91 %0.52 %
Return on average equity
Average stockholders' equity$395,328 $398,017 $439,187 $396,665 $438,187 
Return on average equity (GAAP)9.38 %8.67 %(7.80)%9.03 %(1.68)%
Comparable return on average equity (non-GAAP)9.38 %8.67 %4.26 %9.03 %4.39 %
Return on average tangible common equity
Average goodwill and intangibles$74,393 $74,591 $75,230 $74,491 $75,336 
Average tangible common equity $320,935 $323,426 $363,957 $322,174 $362,851 
Return on average tangible common equity (GAAP)11.56 %10.67 %(9.41)%11.11 %(2.03)%
Comparable return on average tangible common equity (non-GAAP)11.56 %10.67 %5.14 %11.11 %5.30 %
Efficiency ratio
Non-interest expense$21,597 $22,539 $20,550 $44,136 $40,996 
Net interest income$30,781 $30,302 $24,972 $61,083 $49,100 
Non-interest income (GAAP)$3,169 $3,834 $(15,621)$7,003 $(12,747)
Losses on sale of investment securities from portfolio repositioning$— $— $18,736 $— $18,736 
Non-interest income (non-GAAP)$3,169 $3,834 $3,115 $7,003 $5,989 
Efficiency ratio (GAAP)63.62 %66.03 %219.76 %64.82 %112.77 %
Comparable efficiency ratio (non-GAAP)63.62 %66.03 %73.17 %64.82 %74.42 %
1Related tax benefit calculated using blended statutory rate of 29.5636%










8


Earnings Call and Webcast Information

Bank of Marin Bancorp (Nasdaq: BMRC) will present its second quarter financial results call via webcast on Monday, July 27, 2026 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 Novato, Bank of Marin is the wholly owned subsidiary of Bank of Marin Bancorp (Nasdaq: BMRC). A leading business and community bank with assets of $3.9 billion, Bank of Marin provides commercial and personal banking, specialty lending, and wealth management and trust services throughout its network of 27 branches and eight commercial banking offices serving Northern California. Specializing in providing legendary service to its clients and investing in its local communities, Bank of Marin has consistently been ranked one of the “Top Corporate Philanthropists" by San Francisco Business Times since 2003 and ranked top 13 in Sacramento Business Journal’s 2025 Corporate Direct Giving List. Additional honors include being recognized as one of North Bay Business Journal’s “Best Places to Work” in 2025 and induction into North Bay Biz’s “Best of” Hall of Fame in 2024. Bank of Marin Bancorp is included in the Russell 2000 Small-Cap Index and Nasdaq ABA Community Bank Index. For more information, visit www.bankofmarin.com.

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 the United States and abroad, including economic or other disruptions to financial markets caused by the Trump administration's approach to tariffs and trade and the military action in Iran, acts of terrorism, war or other conflicts, impacts from inflation, supply chain disruptions, changes in interest rates (including the actions taken by the Federal Reserve to control inflation), California's unemployment rate, deposit flows, real estate values, and expected future cash flows on loans and securities; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks; costs or effects of acquisitions; competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; natural disasters (such as wildfires and earthquakes in our area); adverse weather conditions; interruptions of utility service in our markets for sustained periods; and other economic, competitive, governmental, regulatory and technological factors (including external fraud and cybersecurity threats) affecting our operations, pricing, products and services; and successful integration of acquisitions. These and other important factors are detailed in various securities law filings made periodically by Bancorp, copies of which are available from Bancorp without charge. Bancorp undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.


9


BANK OF MARIN BANCORP FINANCIAL HIGHLIGHTS
Three months endedSix months ended
(in thousands, except per share amounts; unaudited)June 30, 2026March 31, 2026June 30, 2025June 30, 2026June 30, 2025
Selected operating data and performance ratios:
Net income (loss)$9,246 $8,510 $(8,536)$17,756 $(3,660)
Diluted earnings (loss) per common share$0.58 $0.53 $(0.53)$1.11 $(0.23)
Return on average assets0.96 %0.87 %(0.92)%0.91 %(0.20)%
Return on average equity9.38 %8.67 %(7.80)%9.03 %(1.68)%
Return on average tangible common equity11.55 %10.67 %(9.41)%11.11 %(2.03)%
Efficiency ratio63.62 %66.03 %219.76 %64.82 %112.77 %
Tax-equivalent net interest margin
3.38 %3.24 %2.83 %3.31 %2.80 %
Cost of deposits1.28 %1.35 %1.39 %1.32 %1.39 %
Cost of funds1.36 %1.43 %1.39 %1.40 %1.39 %
Net charge-offs (recoveries) $39 $7,266 $52 $7,305 $877 
Net charge-offs to average loans— %0.34 %— %0.35 %0.04 %

(in thousands; unaudited)June 30, 2026March 31, 2026December 31, 2025
Selected financial condition data:
Total assets$3,856,720 $3,914,117 $3,904,778 
Loans:
Commercial and industrial$162,434 $159,028 $159,898 
Real estate:
Commercial owner-occupied288,744 308,905 310,219 
Commercial non-owner occupied1,373,990 1,373,332 1,366,251 
Construction16,317 14,215 15,101 
Home equity101,404 98,445 99,222 
Other residential100,710 105,502 110,614 
Installment and other consumer loans57,377 56,292 59,548 
Total loans$2,100,976 $2,115,719 $2,120,853 
Non-accrual loans: 1
Commercial and industrial$$29 $524 
Real estate:
Commercial owner-occupied— — 315 
Commercial non-owner occupied8,118 8,118 25,387 
Home equity219 223 401 
Other residential67 70 72 
Installment and other consumer loans44 204 204 
Total non-accrual loans$8,453 $8,644 $26,903 
Non-accrual loans to total loans0.40 %0.41 %1.27 %
Classified loans (graded substandard and doubtful)$19,877 $17,939 $32,111 
Classified loans as a percentage of total loans0.95 %0.85 %1.51 %
Total accruing loans 30-89 days past due $2,005 $683 $2,843 
Total accruing loans 90+ days past due 1
$297 $— $— 
Allowance for credit losses to total loans1.07 %1.08 %1.42 %
Allowance for credit losses to non-accrual loans2.66x2.64x1.12x
Total deposits$3,369,900 $3,428,126 $3,415,542 
Loan-to-deposit ratio62.35 %61.72 %62.09 %
Stockholders' equity$396,684 $394,492 $394,654 
Book value per share$24.51 $24.37 $24.51 
Tangible book value per share
$19.92 $19.77 $19.87 
Tangible common equity to tangible assets - Bank
9.03 %8.70 %8.59 %
Tangible common equity to tangible assets - Bancorp
8.52 %8.33 %8.35 %
Total risk-based capital ratio - Bank14.61 %14.09 %13.90 %
Total risk-based capital ratio - Bancorp15.58 %15.26 %15.25 %
Tier I Leverage Ratio to Avg Assets - Bancorp8.66 %8.23 %8.26 %
Tier I Leverage Ratio to Avg Assets - Bank9.16 %8.59 %8.49 %
Full-time equivalent employees315 309 311 
10


BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF CONDITION 
(in thousands, except share data; unaudited)June 30, 2026March 31, 2026December 31, 2025
Assets  
Cash, cash equivalents and restricted cash$279,639 $236,644 $225,303 
Investment securities:  
Available-for-sale (net of zero allowance for credit losses at June 30, 2026, March 31, 2026 and December 31, 2025, respectively)
1,242,831 1,326,191 1,327,812 
Total investment securities1,242,831 1,326,191 1,327,812 
Loans, at amortized cost2,100,976 2,115,719 2,120,853 
Allowance for credit losses on loans(22,464)(22,823)(30,089)
Loans, net of allowance for credit losses on loans2,078,512 2,092,896 2,090,764 
Goodwill72,754 72,754 72,754 
Bank-owned life insurance71,324 71,095 71,306 
Operating lease right-of-use assets21,146 22,173 22,499 
Bank premises and equipment, net8,016 7,960 8,059 
Core deposit intangible, net1,520 1,716 1,916 
Interest receivable and other assets80,978 82,688 84,365 
Total assets$3,856,720 $3,914,117 $3,904,778 
Liabilities and Stockholders' Equity  
Liabilities  
Deposits: 
Non-interest bearing$1,237,322 $1,232,228 $1,254,416 
Interest bearing:
Transaction accounts237,676 475,817 417,482 
Savings accounts225,353 226,680 232,109 
Money market accounts1,511,325 1,313,266 1,305,849 
Time accounts158,224 180,135 205,686 
Total deposits3,369,900 3,428,126 3,415,542 
Borrowings and other obligations625 668 709 
Subordinated notes, net43,955 43,905 43,905 
Operating lease liabilities23,493 24,553 24,747 
Interest payable and other liabilities22,063 22,373 25,269 
Total liabilities3,460,036 3,519,625 3,510,124 
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 - 16,186,611, 16,189,707 and
16,102,687 at June 30, 2026, March 31, 2026 and December 31, 2025, respectively
216,050 215,648 214,910 
Retained earnings207,843 202,645 198,163 
Accumulated other comprehensive loss, net of taxes(27,209)(23,801)(18,419)
Total stockholders' equity396,684 394,492 394,654 
Total liabilities and stockholders' equity$3,856,720 $3,914,117 $3,904,778 


11


BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three months ended
Six months ended
(in thousands, except per share amounts; unaudited)June 30, 2026March 31, 2026June 30, 2025June 30, 2026June 30, 2025
Interest income   
Interest and fees on loans$27,267 $26,534 $25,861 $53,801 $51,044 
Interest on investment securities13,427 13,869 8,423 27,296 16,684 
Interest on due from banks1,646 2,392 2,004 4,038 3,799 
Total interest income42,340 42,795 36,288 85,135 71,527 
Interest expense     
Interest on interest-bearing transaction accounts1,462 2,039 1,291 3,501 2,452 
Interest on savings accounts635 577 587 1,212 1,120 
Interest on money market accounts7,674 7,821 7,878 15,495 15,504 
Interest on time accounts965 1,242 1,559 2,207 3,349 
Interest on borrowings and other obligations12 
Interest on subordinated notes817 808 — 1,625 — 
Total interest expense11,559 12,493 11,316 24,052 22,427 
Net interest income30,781 30,302 24,972 61,083 49,100 
(Reversal of) provision for credit losses on loans(320)— — (320)75 
Provision for credit losses on unfunded loan commitments— — — — — 
Net interest income after provision for credit losses31,101 30,302 24,972 61,403 49,025 
Non-interest income   
Service charges on deposit accounts563 563 550 1,126 1,098 
Wealth management and trust services543 596 612 1,139 1,175 
Earnings on bank-owned life insurance, net442 487 429 929 905 
Debit card interchange fees, net397 362 410 759 806 
Dividends on Federal Home Loan Bank stock199 855 362 1,054 737 
Merchant interchange fees, net142 118 90 260 186 
Earnings on bank-owned life insurance death benefits59 479 238 538 306 
Losses on sale of investment securities— — (18,736)— (18,736)
Other income824 374 424 1,198 776 
Total non-interest income (loss)3,169 3,834 (15,621)7,003 (12,747)
Non-interest expense    
Salaries and related benefits12,609 13,394 12,045 26,003 24,095 
Occupancy and equipment2,090 2,099 2,226 4,189 4,332 
Professional services1,371 1,093 908 2,464 1,845 
Data processing1,138 1,228 1,041 2,366 2,177 
Federal Deposit Insurance Corporation insurance555 730 421 1,285 809 
Information technology510 515 563 1,025 976 
Depreciation and amortization270 263 320 533 642 
Directors' expense261 285 279 546 583 
Amortization of core deposit intangible196 200 220 396 447 
Charitable contributions190 437 116 627 519 
Deposit network fees118 149 114 267 228 
Other expense2,289 2,146 2,297 4,435 4,343 
Total non-interest expense21,597 22,539 20,550 44,136 40,996 
Income (loss) before provision for (benefit from) income taxes12,673 11,597 (11,199)24,270 (4,718)
Provision for (benefit from) income taxes3,427 3,087 (2,663)6,514 (1,058)
Net income (loss)$9,246 $8,510 $(8,536)$17,756 $(3,660)
Net income (loss) per common share  
Basic$0.58 $0.53 $(0.53)$1.11 $(0.23)
Diluted$0.58 $0.53 $(0.53)$1.11 $(0.23)
Weighted average shares:
Basic15,952 15,925 15,989 15,938 15,983 
Diluted15,991 15,973 15,989 15,983 15,983 
Comprehensive income (loss):
Net income (loss)$9,246 $8,510 $(8,536)$17,756 $(3,660)
Other comprehensive (loss) income:
Change in net unrealized (losses) gains on available-for-sale securities(4,838)(7,642)(486)(12,480)2,803 
Reclassification adjustment for losses realized on the sale of available-for-sale securities in net loss— — 18,736 — 18,736 
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity— — 365 — 705 
Other comprehensive (loss) income, before tax(4,838)(7,642)18,615 (12,480)22,244 
Deferred tax (benefit) expense(1,430)(2,260)5,503 (3,690)6,576 
Other comprehensive (loss) income, net of tax(3,408)(5,382)13,112 (8,790)15,668 
Total comprehensive income$5,838 $3,128 $4,576 $8,966 $12,008 
12


BANK OF MARIN BANCORP
AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST INCOME
Three months endedThree months ended
June 30, 2026March 31, 2026
InterestInterest
AverageIncome/Yield/AverageIncome/Yield/
(in thousands)BalanceExpenseRateBalanceExpenseRate
Assets
Interest-earning deposits with banks 1
$176,889 $1,646 3.68 %$265,720 $2,392 3.60 %
Investment securities 2, 3
1,329,846 13,465 4.05 %1,374,555 13,906 4.05 %
Loans 1, 3, 4, 5
2,113,964 27,382 5.12 %2,114,052 26,646 5.04 %
   Total interest-earning assets 1
3,620,699 42,493 4.64 %3,754,327 42,944 4.58 %
Cash and non-interest-bearing due from banks32,830 32,496 
Bank premises and equipment, net7,965 8,007 
Interest receivable and other assets, net188,646 194,423 
Total assets$3,850,140 $3,989,253 
Liabilities and Stockholders' Equity
Interest-bearing transaction accounts$363,579 $1,462 1.61 %$464,323 $2,039 1.78 %
Savings accounts235,698 635 1.08 %228,635 577 1.02 %
Money market accounts1,351,175 7,674 2.28 %1,367,142 7,821 2.32 %
Time accounts including CDARS165,017 965 2.35 %192,553 1,242 2.62 %
Borrowings and other obligations 1
640 3.71 %683 3.66 %
Subordinated notes, net43,923 817 7.44 %43,873 808 7.36 %
   Total interest-bearing liabilities2,160,032 11,559 2.15 %2,297,209 12,493 2.21 %
Demand accounts1,247,995 1,244,595 
Interest payable and other liabilities46,785 49,432 
Stockholders' equity395,328 398,017 
Total liabilities & stockholders' equity$3,850,140 $3,989,253 
Tax-equivalent net interest income/margin 1
$30,934 3.38 %$30,451 3.24 %
Reported net interest income/margin 1
$30,781 3.36 %$30,302 3.23 %
Tax-equivalent net interest rate spread2.49 %2.37 %
Six months endedSix months ended
June 30, 2026June 30, 2025
InterestInterest
AverageIncome/Yield/AverageIncome/Yield/
(in thousands)BalanceExpenseRateBalanceExpenseRate
Assets
Interest-earning deposits with banks 1
$221,059 $4,038 3.63 %$172,136 $3,799 4.39 %
Investment securities 2, 3
1,352,077 27,370 4.05 %1,269,850 16,822 2.65 %
Loans 1, 3, 4, 5
2,114,008 54,028 5.08 %2,073,423 51,254 4.92 %
   Total interest-earning assets 1
3,687,144 85,436 4.61 %3,515,409 71,875 4.07 %
Cash and non-interest-bearing due from banks32,664 37,608 
Bank premises and equipment, net7,986 7,046 
Interest receivable and other assets, net191,518 172,894 
Total assets$3,919,312 $3,732,957 
Liabilities and Stockholders' Equity
Interest-bearing transaction accounts$413,673 $3,501 1.71 %$339,058 $2,452 1.46 %
Savings accounts232,186 1,212 1.05 %224,798 1,120 1.00 %
Money market accounts1,359,115 15,495 2.30 %1,210,326 15,504 2.58 %
Time accounts including CDARS178,709 2,207 2.49 %223,057 3,349 3.03 %
Borrowings and other obligations 1
661 12 3.61 %111 3.08 %
FHLB long-term borrowings 1
— — — %— — — %
Subordinated debenture 1, 5
43,898 1,625 7.40 %— — — %
   Total interest-bearing liabilities2,228,242 24,052 2.18 %1,997,350 22,427 2.26 %
Demand accounts1,246,304 1,252,711 
Interest payable and other liabilities48,101 44,709 
Stockholders' equity396,665 438,187 
Total liabilities & stockholders' equity$3,919,312 $3,732,957 
Tax-equivalent net interest income/margin 1
$61,384 3.31 %$49,448 2.80 %
Reported net interest income/margin 1
$61,083 3.29 %$49,100 2.78 %
Tax-equivalent net interest rate spread2.43 %1.81 %
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 $427 thousand, $398 thousand and $399 thousand for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025 and totaled $825 thousand and $764 thousand for the six months ended June 30, 2026 and 2025, respectively.
13
1 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Second Quarter 2026 Results July 27, 2026


 

2 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Forward-Looking Statements This discussion of financial results includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "1933 Act") and Section 21E of the Securities Exchange Act of 1934, as amended, (the "1934 Act"). Those sections of the 1933 Act and 1934 Act provide a "safe harbor" for forward-looking statements to encourage companies to provide prospective information about their financial performance so long as they provide meaningful, cautionary statements identifying important factors that could cause actual results to differ significantly from projected results. Our forward-looking statements include descriptions of plans or objectives of management for future operations, products or services, and forecasts of revenues, earnings or other measures of economic performance. 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 preceded by "will," "would," "should," "could" or "may." Forward-looking statements are based on management's current expectations regarding economic, legislative, and regulatory issues that may affect our earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, the preliminary nature of certain adjustments to prior financial statements disclosed in an 8-K filed by the Company on February 24, 2026 and the Form 10-K filed by the Company on March 13, 2026 and included in this presentation, general economic conditions and the economic uncertainty in the United States and abroad, including economic or other disruptions to financial markets caused by the Trump administration's approach to tariffs and trade, acts of terrorism, war, impacts from inflation, supply chain disruptions, changes in interest rates (including the actions taken by the Federal Reserve to control inflation), California's unemployment rate, deposit flows, real estate values, and expected future cash flows on loans and securities; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks; costs or effects of acquisitions; competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; natural disasters (such as wildfires and earthquakes in our area); adverse weather conditions; interruptions of utility service in our markets for sustained periods; and other economic, competitive, governmental, regulatory and technological factors (including external fraud and cybersecurity threats) affecting our operations, pricing, products and services; and successful integration of acquisitions. These and other important factors detailed in various securities law filings made periodically by Bancorp, copies of which are available from us at no charge. Forward-looking statements speak only as of the date they are made. Bancorp undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this press release or to reflect the occurrence of unanticipated events. GAAP to Non-GAAP Financial Measures This presentation includes some non-GAAP financial measures as shown in the Appendix of this presentation.


 

S E C T I O N Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Franchise Highl ights 01


 

4 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Bank of Marin Bancorp Novato, CA Headquarters BMRC NASDAQ $448.4 Million Market Cap $3.9 Billion Total Assets 3.61% Dividend Yield 15.58% Total Bancorp RBC BMRC AT A GLANCE O P T I O N 2 Data as of 6/30/26 Relationship Banking Build strong, long-term customer relationships based on trust, integrity and expertise, inspiring loyalty though exceptional service. Disciplined Fundamentals Apply a disciplined business approach with sound banking practices, high quality products, and consistent fundamentals ensuring continued strong results. Community Commitment Give back to the communities that we serve through active employee volunteerism, nonprofit board leadership and financial contributions. 27 Branch Locations 8 Commercial Banking Offices


 

5 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Bob Gotelli EVP, Human Resources Director • 34 years of human resources experience • Joined Bank of Marin in 2000 David Bloom EVP, Head of Commercial Banking • 33 years of commercial banking experience • Joined Bank of Marin in 2023 Tim Myers President and Chief Executive Officer • 30 years of finance and banking experience • Joined Bank of Marin in 2007 Brandi Campbell EVP, Head of Retail Banking • 40 years of banking experience • Joined Bank of Marin in 2019 Sathis Arasadi EVP, Chief Information Officer • 35 years of engineering, technology, and fintech experience • Joined Bank of Marin in 2023 Dave Bonaccorso EVP, Chief Financial Officer • 32 years of financial services experience • Joined Bank of Marin in 2023 Misako Stewart EVP, Chief Credit Officer • 37 years of banking experience • Joined Bank of Marin in 2013 221 Years of Combined Experience Through Various Economic Cycles


 

6 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 A strategic and disciplined approach to delivering long-term value 01 02 03 04 Grow NON-INTEREST INCOME Scale through EFFICIENCY GAINS and ACQUISITIONS Invest in TALENT and TECHNOLOGY Drive high-quality LOAN GROWTH


 

7 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Second Quarter 2026 Overview 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix Highlights • Net interest margin was 3.38% compared to 3.24% in the prior quarter mainly due to improved average loan yields, targeted deposit rate cuts and active balance sheet management through one-way sales of deposits • Newly originated loans were $98 million in Q2, an increase of $18 million (22%) quarter over quarter • Weighted average rate on new loans of 6.53% highest in last 4 quarters and exceeds weighted average payoff rate • The Bank continued working to improve credit quality which included the completion of a planned exit of $19.0 million in special mention loans related to one relationship, significantly reducing the Bank's exposure to the wine industry • Cost of deposits decreased from 1.35% to 1.28% quarter over quarter; non-interest bearing deposits remained strong at 36.7% of total deposits Key Operating Trends • Tax-equivalent yield on interest-earning assets increased 6bps in Q2 over Q1 mainly due to improved average loan yields • Non-interest income excluding special items in prior quarter increased $0.3 million • Non-interest expense decreased $0.9 million following seasonally high levels in Q1 mostly in salaries and related benefits and charitable giving Capital • Bancorp total risk-based capital and TCE/TA improved to 15.58% and 8.52%, respectively • Bank total risk-based capital and TCE/TA improved to 14.61% and 9.03%, respectively • Book value per share and tangible book value per share increased to $24.51 and $19.92, respectively Deposits and Liquidity • Spot rate on deposits at 6/30/26 of 1.28% (interest-bearing 2.03%) declined from the 3/31/26 spot rate of 1.31% (interest-bearing 2.05%) • Deposits decreased 1.7% from Q1, primarily driven by a small number of relationships experiencing seasonal outflows and making investment policy decisions; deposits remained 3.8% higher than the prior year • Immediately available net funding of $2.2 billion Credit Quality • Reversal of provision for credit losses of $0.3 million • Non-accrual loans decreased to 0.40% of total loans from 0.41% in the prior quarter • Classified loans were 0.95% of total loans in Q2 compared to 0.85% in the prior quarter • Subsequent to quarter-end payoffs reduced special mention and classified loans by $2.3 million and $0.8 million, respectively


 

8 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Focused on Building Long-Term Shareholder Value Strong Core Deposit Franchise Largest community bank in Marin County with 11.4% market share 1 36.7% non-interest bearing deposits with a 1.28% cost of deposits in Q2 Improving Margin Outlook ▪ Prior year investment securities repositioning continuing to expand margin ▪ Continued loan growth at higher rates ▪ Targeted deposit cost reductions continued in Q2 Seasoned Risk Management Special mention loans decreased 15% in Q2 Non-accrual loans as a percentage of loans decreased 1bp quarter over quarter Low NOO CRE office exposure in the City of San Francisco at 2% of total loans (3% of total NOO-CRE) and a weighted average 62% LTV Prudent Loan Growth Markets with proven track record of organic growth Key opportunistic relationship banking talent acquisitions 62.35% loan-to-deposit ratio provides runway for additional growth Robust Capital Levels & Liquidity Regulatory capital ratios remain comfortably above “well-capitalized” thresholds $2.2 billion in available liquidity 1Source: S&P Global Market Intelligence - FDIC deposit market share data as of June 30, 2025


 

9 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Focused on delivering Long-Term, Consistent Growth ▪ Proven ability to grow both organically and through M&A ▪ Consistent cash dividend provides stable and reliable return for shareholders Note: Tangible book value per share (TBVPS) equals total shareholders’ equity, less intangible assets including goodwill and core deposit intangibles, divided by outstanding common shares at period end. Accumulated other comprehensive income (AOCI) represents the unrealized gains (losses) on available-for-sale securities, net of tax. Components of these calculations were derived from our financial reports filed with the SEC for each respective period. Additional information for June 30, 2026 can be found in the Reconciliation of Non-GAAP Financial Measures in the Appendix. Tangible Book Value Per Share and Cumulative Cash Dividends $0.77 $1.22 $1.73 $2.29 $2.92 $3.72 $4.64 $5.58 $6.56 $7.56 $8.56 $9.56 $9.81 $10.06 $15.98 $16.88 $18.08 $18.81 $20.28 $22.24 $24.02 $23.29 $20.85 $22.44 $22.37 $19.87 $19.77 $19.92 Cumulative Cash Dividends TBVPS TBVPS (Excl AOCI) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1Q26 2Q26 $— $5.00 $10.00 $15.00 $20.00 $25.00 $30.00


 

10 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Robust Capital Ratios As of 6/30/26 The Bank's capital plan and point-in- time capital stress tests indicate that capital ratios will remain above regulatory well-capitalized and internal policy minimums throughout a five-year forecast horizon and across stress scenarios such as additional unrealized losses on the investment portfolio, additional deposit growth or decline, loan credit quality deterioration, and potential share repurchases. 6.5% 8.0% 10.0% 5.0% 13.7% 13.7% 14.6% 9.2% 9.0% 12.9% 12.9% 15.6% 8.7% 8.5% Well Capitalized Threshold Bank of Marin Bank of Marin Bancorp Common Equity Tier- One Risk-Based Capital Total Tier-One Risk- Based Capital Total Risk-Based Capital Tier-One Leverage Tangible Common Equity


 

Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 S E C T I O N Balance Sheet Highl ights 02


 

12 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Strong Deposit Franchise • Deposit mix continues to favor a high percentage of non-interest bearing deposits totaling 36.7%, highlighting our relationship banking model • Total cost of deposits was 1.28% (interest-bearing 2.04%) for 2Q'26 and 1.35% (interest-bearing 2.10%) for 1Q'26 • Spot rate was 1.28% (interest-bearing 2.03%) as of June 30, 2026, compared to 1.31% (interest-bearing 2.05%) as of March 31, 2026 Total Deposit Mix at 2Q'26Total Deposits ($ in millions) $2,504 $3,808 $3,574 $3,290 $3,416 $3,370 $1,538 $2,201 $2,127 $1,667 $1,672 $1,475 $869 $1,457 $1,328 $1,372 $1,538 $1,737 $97 $150 $119 $251 $206 $158 Transaction Savings & MMDA Time 2021 2022 2023 2024 2025 2Q'26 Non-Interest Bearing Transaction 36.7% Interest Bearing Transaction 7.1% Savings 6.7% Money Market 44.8% Time 4.7% $3.37B


 

13 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 • 41% of new accounts consisted of new relationships to the Bank by count • 66% of new accounts were non-interest bearing by count • Average weighted cost for all new interest bearing accounts at 1.48% (new funds) and 1.98% (new relationships) • Reciprocal deposit network program (expanded FDIC insurance products) utilization decreased by $97.6 million quarter over quarter New Accounts Mix (by count) 2Q'26Granular Deposit Account Composition Existing Relationships - New $ 21% Account Migration 38% New Relationships 41% 966 (in thousands; except for # of Accounts) Interest Bearing Non-Interest Bearing Total Consumer Account Balances $ 933,386 $ 324,899 $ 1,258,285 # of Accounts 13,733 17,009 30,742 Avg Balance Per Account $ 68 $ 19 $ 41 Business Account Balances $ 1,130,760 $ 964,262 $ 2,095,021 # of Accounts 3,844 10,878 14,722 Avg Balance Per Account $ 294 $ 89 $ 142 *Excludes internal operating accounts such as holding company cash and deposit settlement accounts totaling $16.6 million Deposit Accounts Mix - Consumer vs Business 2Q'26


 

14 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Strong Liquidity: $2.2 Billion in Net Availability • The Bank has long-established minimum liquidity requirements regularly monitored using metrics and tools similar to larger banks, such as the liquidity coverage ratio and multi-scenario, long-horizon stress tests • Deposit outflow assumptions for liquidity monitoring and stress testing are conservative relative to actual experience At June 30, 2026 ($ in millions) Total Available Amount Used Net Availability Internal Sources Unrestricted Cash 1 $ 256.6 $ — $ 256.6 Unencumbered Securities 491.7 — 491.7 External Sources FHLB line of credit 978.4 — 978.4 FRB line of credit 310.4 — 310.4 Lines of credit at correspondent banks 140.0 — 140.0 Total Liquidity $ 2,177.1 $ — $ 2,177.1 1 Excludes cash items in transit Note: Off-balance sheet one-way sell deposits were zero at June 30, 2026. Liquidity & Uninsured Deposits ($ in millions) 2.1x Coverage Ratio $2,177.1 $1,016.6 Liquidity Est. Uninsured and/or Uncollateralized Deposits


 

15 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 • Loan fundings in Q2 were $62.8 million ($98.4 million total commitments) • Notable pipeline growth and diversification from key hires, compensation program enhancements, and calling programs • Sound underwriting produces a high- quality loan portfolio with low credit costs and stable earnings through cycles • Extending credit and serving the needs of existing clients while ensuring new opportunities present the appropriate levels of risk and return Prudent, Sustainable Model for Loan Growth $2.089 $2.256 $2.093 $2.074 $2.083 $2.121 $2.101 4.15% 4.23% 4.29% 4.65% 4.83% 4.99% 5.08% Non-PPP Loans SBA PPP Loans Average Annual TE Yield on Loans 2020 2021 2022 2023 2024 2025 YTD 2Q'26 Total Loans ($ in billions) 1Includes American River Bank loans acquired in 3Q'21 1 Three months ended Six months ended (in millions; unaudited) June 30, 2026 March 31, 2026 June 30, 2025 QoQ Variance % CQ vs PYQ % June 30, 2026 June 30, 2025 YoY Variance % Gross loans beginning balance $ 2,115.7 $ 2,120.9 $ 2,073.5 $ (5.2) — % $ 42.2 2 % $2,120.9 $ 2,083.3 $ 37.6 2 % Newly funded 62.8 60.8 50.6 2.0 3 % 12.2 24 % 123.6 98.0 25.6 26 % New total commitments1 98.4 80.5 69.2 17.9 22 % 29.2 42 % 178.9 132.8 46.1 35 % Purchased — — — — NM — NM — — — NM Net increase (decrease) in line of credit utilization 14.5 0.6 4.6 13.9 2,317 % 9.9 215 % 15.1 (6.6) 21.7 (329) % Paydowns and maturities (71.2) (30.6) (36.5) (40.6) 133 % (34.7) 95 % (101.8) (59.9) (41.9) 70 % Charge-offs — (7.3) — 7.3 (100) % — NM (7.3) (0.8) (6.5) 813 % Note sales — (9.1) — 9.1 (100) % — NM (9.1) (1.3) (7.8) 600 % Amortization (20.8) (19.6) (18.6) (1.2) 6 % (2.2) 12 % (40.4) (39.1) (1.3) 3 % Gross loans ending balance $ 2,101.0 $ 2,115.7 $ 2,073.6 $ (14.7) (1) % $ 27.4 1 % $2,101.0 $ 2,073.6 $ 27.4 1 % 1 New total commitments includes both newly funded loans and new unfunded commitments Loans Rollforward ($ in thousands)


 

16 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Well-diversified Loan Portfolio As of 6/30/26 - No material changes from 1Q'26 • Loan portfolio is well-diversified across borrowers, industries, loan and property types within our geographic footprint • 88% of all loans and 93% of loans excluding nonprofit organizations are guaranteed by owners of the borrowing entities • Non-owner occupied commercial real estate is well-diversified by property type with 89% of loans (90% of loans excluding nonprofit organizations) being guaranteed by owners of the borrowing entities • Since 2001, net charge-offs for all NOO CRE and OO CRE total $9.7 million • Construction loans represent a small portion of the overall portfolio OO-CRE 14% C&I 8% Consumer 12% Construction 1% NOO-CRE 65% 2Q'26 Total Loans $2.1B Office 26% Mixed Use 7% Retail 19% Warehouse & Industrial 13% Multi-Family 18% Other 17% 2Q'26 Total NOO-CRE Loans $1.4B


 

17 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Low Refinance Risk in NOO CRE Portfolio through 2027 • We conducted a DEEP DIVE on loans maturing or repricing before year-end 2027 * • PORTFOLIO IS WELL-POSITIONED TO ABSORB A HIGHER RATE ENVIRONMENT AT MATURITY OR REPRICING DATE • Wtd. Avg. DSC Assumptions for Maturing Loans: Current Treasury Constant Maturity rate + spread of 3.00%, fully drawn commercial real estate lines of credit, 25-year amortization • Wtd. Avg. DSC Assumptions for Repricing Loans: Current market interest rate + contractual spread, fully drawn commercial real estate lines of credit, remaining amortization on each loan Maturing Loan Commitments > $1.0MM # of loans Commitment (millions) Outstanding Balance (millions) Wtd. Avg. Rate Wtd. Avg. DSC 2026 20 $57.5 $51.5 5.50% 1.31x 2027 26 $76.9 $73.9 4.68% 1.47x TOTAL 46 $134.40 $125.40 Repricing Loan Commitments > $1.0MM # of loans Commitment (millions) Outstanding Balance (millions) Wtd. Avg. Rate Wtd. Avg. DSC 2026 12 $26.1 $26.1 3.99% 1.26x 2027 16 $40.2 $40.2 3.75% 1.54x TOTAL 28 $66.3 $66.3 *Commitments, outstanding balances and weighted average rates as of 6/30/26


 

18 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 • $363 million in credit exposure spread across our lending footprint comprised of 150 loans • $2.4 million average loan balance – largest loan at $15.4 million • 59% weighted average loan-to-value and 1.65x weighted average debt-service coverage ratio* • City of San Francisco NOO CRE office exposure is 2% of total loan portfolio and 3% of total NOO CRE loans NOO CRE Office Portfolio by County * Calculated for loans exceeding $1 million, based on the most recent annual review process, and net of individual reserves Non-owner Occupied Office Exposure As of 6/30/26 - No material changes from 1Q'26 San Francisco 11% Alameda 8% Sacramento 5% Napa 8% Other Bay Area 18%Other 4% Marin 27% Sonoma 18% $363M City of S.F. NOO CRE Office Portfolio Total Balance: $41.7 million Average Loan Bal: $4.6 million Number of Loans: 10 loans Wtd. Average LTV*: 62% Wtd. Average DCR: 1.72x Average Occupancy: 97% All loans are secured by low rise buildings


 

19 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 *Calculated for loans exceeding $1 million, based on the most recent annual review process Note: Sacramento includes surrounding regional counties NOO CRE Portfolio Diversified Across Property Type & County As of 6/30/26 - No material changes from 1Q'26 Average Balance: $1.8M Largest Balance: $13.2M Total # of Loans: 143 Wtd. Avg. LTV*: 56% Average Balance: $2.1M Largest Balance: $14.0M Total # of Loans: 84 Wtd. Avg. LTV*: 49% Average Balance: $1.9M Largest Balance: $21.0M Total # of Loans: 127 Wtd. Avg. LTV*: 60% San Francisco 2% Alameda 8% Sacramento 21% Napa 14%Other Bay Area 16% Other 7% Marin 15% Sonoma 18% San Francisco 9%Alameda 14% Sacramento 24% Napa 7% Other Bay Area 7% Other 5% Marin 8% Sonoma 26% San Francisco 18% Alameda 23% Sacramento 18% Napa 4% Other Bay Area 4% Other 8% Marin 9% Sonoma 16% Retail 2Q'26 Warehouse & Industrial 2Q'26 Multifamily 2Q'26 $259M $172M $247M


 

20 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 ($ in millions at Fair Value) * Loan-to-value largely based on appraised values at origination, or updated appraisals for certain classified loans, and balances as of 6/30/26 Owner-Occupied CRE Portfolio As of 6/30/26 - No material changes from 1Q'26 Retail 7%School 15% 1-4 Residential 2% Wine 6% Church 5% Gas/Auto 5% Auto Dealer 5% Health Club 3% Mixed Use 3% Other 3% Office 20% Industrial 26% Napa 13% Sacramento 22% San Francisco 5% Sonoma 9% Other 1% Alameda 15% Marin 20% Other Bay Area 16% OO CRE by County 2Q'26 Average Balance: $1.1M Largest Loan: $14.1M Wtd. Avg. LTV*: 46% Total Balance: $290.8M Total Loans: 268 OO CRE by Type 2Q'26 $291M $291M Napa 17% Sacramento 22% San Francisco 19% Sonoma 6% Other Bay Area 9% Alameda 6% Marin 21% Average Balance: $0.7M Largest Loan: $7.0M Wtd. Avg. LTV*: 54% Total Balance: $58.4M Total Loans: 80 OO CRE Office Portfolio by County2Q'26 $58M


 

21 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 ($ in millions at Fair Value) * Loan-to-value largely based on appraised values at origination, or updated appraisals for certain high dollar loans. and balances as of 6/30/26 Figures exclude two loans totaling $2.1 million that, for purposes of LTV, were moved to OO CRE Construction Portfolio Concentrations As of 6/30/26 Construction by Type 2Q'26 Construction by County 2Q'26 Land/Agricultural 31% 1-4 Residential 69% San Francisco 34% Napa 1% Other Bay Area 24% Sacramento 30% Marin 11% Average Balance: $1.8M Largest Loan: $4.3M Wtd. Avg. LTV*: 55% Total Balance: $14.2M Unfunded Commitments: $16.5M Total Loans: 8 $14M $14M


 

22 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 1 Related tax benefit calculated using blended statutory rate of 29.5636% High-Quality Securities Portfolio Generates Cash Flow Data as of 6/30/26 AFS Securities Portfolio Agency MBS 44% Agency CMO (Fixed) 11% Agency CMO (Variable) 3% Agency CMBS (Fixed) 24% Agency CMBS (Variable) 12% Debentures of government agencies 2% Municipal Bonds 4% ($ in millions at Fair Value) $1.243B Tax Equivalent Yield — 4.07% Effective Duration — 2.91 Unrealized Losses, net (pre tax) — $38.6 million Unrealized Losses, net (after tax1) — $27.2 million


 

23 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Loans & Securities — Repricing & Maturity $ in millions, unless otherwise indicated Total Loans1 * at 6/30/2026 Repricing Term Rate Structure 3 mo or less 3-12 mos 1-3 years 3-5 years 5-15 years Over 15 years Total Floating Rate Variable Rate Floating & Variable Rate at Floor Floating & Variable Rate at Ceiling Fixed Rate C&I $75.1 $10.5 $23.3 $39.7 $12.7 $1.1 $162.4 $64.6 $1.5 $11.7 $0.0 $84.6 Real estate: Owner-occupied CRE $3.6 $11.4 $52.8 $70.3 $144.1 $6.5 $288.7 $0.2 $50.7 $76.4 $0.0 $161.4 Non-owner occupied CRE $41.8 $59.6 $291.4 $524.5 $456.7 $0.0 $1,374.0 $9.0 $171.4 $329.8 $0.0 $863.8 Construction $12.5 $3.8 $0.0 $0.0 $0.0 $0.0 $16.3 $12.6 $0.0 $0.0 $0.0 $3.7 Home equity $101.0 $0.0 $0.0 $0.0 $0.4 $0.0 $101.4 $101.1 $0.0 $0.0 $0.0 $0.3 Other residential $1.9 $11.8 $0.5 $0.1 $0.8 $85.6 $100.7 $0.0 $14.2 $80.2 $0.0 $6.3 Installment & other consumer $1.7 $4.3 $3.5 $2.7 $45.1 $0.1 $57.4 $1.0 $7.1 $9.0 $0.0 $40.3 Total $237.6 $101.4 $371.5 $637.3 $659.8 $93.3 $2,100.9 $188.5 $244.9 $507.1 $0.0 $1,160.4 % of Total 11 % 5 % 18 % 30 % 31 % 5 % 100 % 9 % 12 % 24 % — % 55 % Weighted Average Rate 7.04 % 5.29 % 5.35 % 5.11 % 4.89 % 4.33 % 5.27 % 1 Amounts represent amortized cost. Based on maturity date for fixed rate loans and variable rate loans at their floors and ceilings and next repricing date for all other variable rate loans. Does not include prepayment assumptions. Investment Securities2 * at 06/30/2026 2 With prepayment assumptions applied Projected Cash Flow Distribution 3 mo or less 3-12 mos 1-3 years 3-5 years 5-10 years Over 10 years Total Principal (par) & interest $61.1 $178.2 $463.6 $385.6 $328.4 $65.9 $1,482.8 % of Total 4 % 12 % 31 % 26 % 22 % 5 % 100 %


 

Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 S E C T I O N Income Statement Highl ights 03


 

25 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 • Linked-quarter NIM increased 14bps due mostly to an 8bps increase in loan yields, a 7bps basis point decrease in cost of deposits, and the use of one-way sales of deposits, which improved the mix of average earnings assets • The Bank continues making strategic pricing adjustments, resulting in a reduction in the cost of deposits to 1.28% in Q2 from 1.35% in Q1 • Cycle-to-date non-maturity interest-bearing deposit beta was 28% for the quarter ended 6/30/26 Net Interest Margin Drivers 3.24% 0.15% (0.01)% (0.07)% 0.07% —% 3.38% 1Q'26 Loans Securities Cash Deposits Sub- ordinated notes 2Q'26 Net Interest Margin Linked- Quarter Change 2.56% 2.61% 2.42% 2.27% 2.26% 2.26% 2.16% 2.10% 2.04% 5.50% 5.43% 4.82% 4.50% 4.50% 4.46% 4.02% 3.75% 3.75% IB Deposits Fed Funds 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Avg. Quarterly Cost of IB Deposits vs. Fed Funds Net Interest Income Simulation 2Q'26 Immediate Change in Interest Rates (in bps) Est. Change in NII, as % in Year 1 in Year 2 Up 400bp 0.5 % 12.1 % Up 300bp 0.5 % 9.4 % Up 200bp 0.3 % 6.3 % Up 100bp 0.4 % 3.6 % Rates Unchanged 0.0 % 0.0 % Down 100bp -2.2 % -4.7 % Down 200bp -4.4 % -9.0 % Down 300bp -6.4 % -13.5 % Down 400bp -7.5 % -17.0 % *Please see our 10-Q’s and 10-K’s for more information regarding these simulations.


 

26 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Consistent and diverse sources of non-interest income bolster revenue through cycles Investment in our people, branches and technology provide a runway for future growth Non-interest Income1 ($ in millions) Non-interest Expense ($ in millions) 1See Reconciliation of GAAP to Non-GAAP Financial Measures (Excluding Loss on Sale of Securities), included in the Appendix of this document 1 Sources of NII $8.6 $10.1 $10.9 $10.9 $11.2 $11.6 $14.1 0.30% 0.29% 0.25% 0.27% 0.30% 0.30% 0.36% Non-interest income Non-interest income/avg. assets 2020 2021 2022 2023 2024 2025 Annualized 2026 $58.5 $72.6 $75.3 $77.1 $78.7 $81.3 $89.0 55.6% 63.1% 54.4% 73.2% 112.1% 276.7% 63.6% 69.3% 76.6% 69.2% Non-interest expense Efficiency ratio *Non-GAAP excl sec sale loss 2020 2021 2022 2023 2024 2025 Annualized 2026 Salaries & benefits 59% Occupancy & equipment 9% Data processing 5% Professional services 6% FDIC Ins 3% Other 18% Total Non-Interest Components Wealth mgmt & trust 16% Service charges 16% BOLI 21% Interchange fees 11% FHLB dividends 15% One-way sales fees 6% Other 15% 1 1


 

Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 S E C T I O N 04 Capita l & Asset Qual i ty


 

28 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 ($ in millions at Fair Value) History of Strong Asset Quality • Special mention loans decreased to $100.9 million due to a planned exit of $19 million related to one relationship, significantly decreasing the Bank's exposure to the wine industry; $2.3 million additionally paid off subsequent to quarter end • Classified loans increased by $1.9 million, or 0.95% of total loans from 0.85% last quarter; $0.8 million paid off subsequently • Non-accrual loans declined by $0.2 million or 0.40% of total loans from 0.41% • Allowance for credit losses to total loans of 1.07% remained stable from 1.08% in the prior quarter Non-accrual Loans / Total Loans Quarterly Progression 1.59% 1.57% 1.51% 0.41% 0.40% 2Q25 3Q25 4Q25 1Q26 2Q26 Net Charge-Offs (Recoveries) as % of Average Loans 0.00% 0.00% 0.02% 0.00% 0.00% 0.34% 0.00% 2021 2022 2023 2024 2025 Q1 26 Q2 26 0.00% 1.00% 2.00% 3.00% 4.00%


 

29 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 AOCI and Tangible Equity M ill io ns $416 $418 $416 $416 $390 $388 $390 $392 $378 $381 $338 $344 $350 $347 $342 $363 $360 $359 $361 $360 $364 $363 $369 $320 $320 $322 $69 $77 $53 $55 $31 $27 $30 $28 $14 $12 $18 $24 $27 42% 39% 39% 39% 33% 31% 34% 33% 33% 35% 34% 34% 32% 9% 9% 10% 10% 10% 10% 10% 10% 10% 10% 8% 8% 9% Tangible Equity Accumulated Other Comprehensive Loss Investments/Total Assets Tangible Equity/Tangible Assets Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026 Jun 2026 $— $100 $200 $300 $400 $500 —% 10% 20% 30% 40% 50% 60% 70% 80%


 

Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Appendix


 

31 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Reconciliation of GAAP to Non-GAAP Financial Measures (Excluding Loss on Sale of Securities) (in thousands; unaudited) Three months ended Six months ended Pre-tax, pre-provision net income June 30, 2026 March 31, 2026 June 30, 2026 June 30, 2025 Income (loss) before provision for (benefit from) income taxes $ 12,673 $ 11,597 $ 24,270 $ (4,718) Provision for credit losses on loans (320) — (320) 75 Provision for credit losses on unfunded loan commitments — — — — Pre-tax, pre-provision net income (loss) (GAAP) 12,353 11,597 23,950 (4,643) Adjustments: Losses on sale of investment securities from portfolio repositioning — — — 18,736 Comparable pre-tax, pre-provision net income (non-GAAP) $ 12,353 $ 11,597 $ 23,950 $ 14,093


 

32 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Reconciliation of GAAP to Non-GAAP Financial Measures (Excluding Loss on Sale of Securities) (in thousands, except per share amounts; unaudited) Three months ended Six months ended Net income (loss) June 30, 2026 March 31, 2026 June 30, 2026 June 30, 2025 Net income (loss) (GAAP) $ 9,246 $ 8,510 $ 17,756 $ (3,660) Adjustments: Losses on sale of investment securities from portfolio repositioning — — — 18,736 Related income tax benefit1 — — — (5,538) Adjustments, net of taxes — — — 13,198 Comparable net income (non-GAAP) $ 9,246 $ 8,510 $ 17,756 $ 9,538 Diluted earnings (loss) per share Weighted average diluted shares 15,991 15,973 15,983 15,983 Diluted earnings (loss) per share (GAAP) $ 0.58 $ 0.53 $ 1.11 $ (0.23) Comparable diluted earnings per share (non-GAAP) $ 0.58 $ 0.53 $ 1.11 $ 0.60 Return on average assets Average assets $ 3,850,140 $ 3,989,253 $ 3,919,312 $ 3,732,957 Return on average assets (GAAP) 0.96 % 0.87 % 0.91 % (0.20) % Comparable return on average assets (non-GAAP) 0.96 % 0.87 % 0.91 % 0.52 % Return on average equity Average stockholders' equity $ 395,328 $ 398,017 $ 396,665 $ 438,187 Return on average equity (GAAP) 9.38 % 8.67 % 9.03 % (1.68) % Comparable return on average equity (non-GAAP) 9.38 % 8.67 % 9.03 % 4.39 % Return on average tangible common equity Average goodwill and intangibles 74,393 74,591 74,491 75,336 Average tangible common equity 320,935 323,426 322,174 362,851 Return on average tangible common equity (GAAP) 11.56 % 10.67 % 11.11 % (2.03) % Comparable return on average tangible common equity (non-GAAP) 11.56 % 10.67 % 11.11 % 5.30 % Efficiency ratio Non-interest expense $ 21,597 $ 22,539 $ 44,136 $ 40,996 Net interest income 30,781 30,302 61,083 49,100 Non-interest income (GAAP) 3,169 3,834 7,003 (12,747) Losses on sale of investment securities — — — 18,736 Non-interest income (non-GAAP) $ 3,169 $ 3,834 $ 7,003 $ 5,989 Efficiency ratio (GAAP) 63.62 % 66.03 % 64.82 % 112.77 % Comparable efficiency ratio (non-GAAP) 63.62 % 66.03 % 64.82 % 74.42 % 1Related income tax benefit calculated using blended statutory rate of 29.5636%


 

33 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Contact Us Tim Myers President and Chief Executive Officer (415) 763-4970 timmyers@bankofmarin.com Dave Bonaccorso EVP, Chief Financial Officer (415) 884-4758 davebonaccorso@bankofmarin.com Media Requests: Yahaira Garcia-Perea Marketing & Corporate Communications Manager (916) 231-6703 yahairagarcia-perea@bankofmarin.com


 

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