EX-99.1 2 earningsrelease-ex991q12026.htm EX-99.1 Document

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 FIRST QUARTER FINANCIAL RESULTS
FURTHER IMPROVEMENTS IN NET INTEREST MARGIN AND ASSET QUALITY


NOVATO, CA, April 27, 2026 - Bank of Marin Bancorp, "Bancorp" (Nasdaq: BMRC), parent company of Bank of Marin, "Bank," announced net income of $8.5 million for the first quarter of 2026, compared to a net loss of $39.5 million due to the impact of its balance sheet restructuring (net income of $9.4 million, non-GAAP) for the fourth quarter of 2025. Largely as a result of continued net interest margin expansion, net income increased 75% year over year from $4.9 million for the same period in the prior year. Notably, the Bank showed continued seasonal improvement in loan originations and demonstrated significant improvement in credit quality as evidenced by a substantial decline in its non-accrual and classified loans, while deposit balances increased with flat cost of deposits. Diluted income per share was $0.53 for the first quarter, compared to diluted loss per share of $2.49 (diluted earnings per share of $0.59, non-GAAP) for the prior quarter. Results for the prior quarter include pre-tax losses on the sale of securities of $69.5 million, incurred as part of the repositioning to improve the bank's future earnings.

Comparable (non-GAAP) Excluding Loss on Sale of Securities
Three months endedYear to date
 (in thousands, except per share amounts; unaudited)
March 31, 2026December 31, 2025% ChangeMarch 31, 2026March 31, 2025% Change
Pre-tax, pre-provision net income (loss)
Pre-tax, pre-provision net income (loss) (GAAP)
$11,597 $(56,890)(120.4)%$11,597 $6,556 76.9 %
Comparable pre-tax, pre-provision net income (non-GAAP)
11,597 12,576 (7.8)%11,597 6,556 76.9 %
Net income (loss)
Net income (loss) (GAAP)
8,510 (39,541)(121.5)%8,510 4,876 74.5 %
Comparable net income (non-GAAP)8,510 9,391 (9.4)%8,510 4,876 74.5 %
Diluted earnings (loss) per share
Diluted earnings (loss) per share (GAAP)
0.53 (2.49)(121.3)%0.53 0.30 76.7 %
Comparable diluted earnings per share (non-GAAP)0.53 0.59 (10.2)%0.53 0.30 76.7 %
See complete Reconciliation of GAAP and Non-GAAP Financial Measures below
Related non-GAAP tax benefit calculated using blended statutory rate of 29.5636%

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

"During the first quarter, we remained focused on continued improvement in core banking fundamentals. We followed a strong fourth quarter with a seasonally high level of new loan originations and grew our deposits without increasing their total cost," said President & CEO Tim Myers. "At the same time, we sold our largest non-performing assets with no further impact to net income and showed notable improvement across key credit risk metrics."


Bancorp also provided the following highlights for the first quarter of 2026:

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•The first quarter tax-equivalent net interest margin improved 6 basis points over the preceding quarter to 3.24% from 3.18%, largely due to the effects of the securities repositioning in the fourth quarter of 2025, which provided a 21 basis point increase in annualized net interest margin for the first quarter over the prior quarter. The tax-equivalent net interest margin for the three months ended March 31, 2026 improved 47 basis points over the same period of the prior year due to the increase in deposits at a decreased average cost, higher average loan balances and rates, and the favorable impact of the securities repositioned in the second and fourth quarters of 2025, which resulted in higher yielding assets during the three months ended March 31, 2026.

•During the quarter, we worked diligently to improve our credit quality. We sold our longest tenured classified and non-accrual loans totaling $16.3 million, which were downgraded to substandard in 2021, and moved to non-accrual in 2024. At that time, we recorded specific reserves of $7.3 million based on property valuations. The note sales proceeds validated our reserve assumptions, with the charge-offs equaling the specific amounts reserved in our allowance for credit losses. While other workouts were offset by new downgrades, the impact of the note sales on credit metrics was substantial: Non-accrual loans declined from 1.27% of assets to 0.41%, and the ratio of classified to total loans decreased from 1.51% to 0.85%. Notably, following the note sales virtually all remaining non-accrual balances are comprised of one non-owner occupied commercial real estate loan that has no loss expectations based on underlying valuation and cash flow.

•There was no provision for credit losses on loans in the first quarter of 2026 compared to a provision of $300 thousand in the prior quarter. The allowance for credit losses was 1.08% and 1.42% of total loans at March 31, 2026 and December 31, 2025, respectively due to the $7.2 million of charge‑offs taken against the specific reserves on the two loans sold, noted above. The charge-offs were fully offset by specific reserves already in place.

•Return on average assets ("ROA") and return on average equity ("ROE") increased on a GAAP basis from the prior quarter, as shown below, primarily due to the increased net income compared to the prior quarter which included losses from the sale of securities from the balance sheet repositioning. ROA and ROE on a non-GAAP basis both decreased from the prior quarter mainly due to decreased non-GAAP income quarter over quarter. Income was impacted by a lower day count, quarter over quarter, as well as an interest recovery on a loan in the fourth quarter of $667 thousand that was not repeated in the first quarter. The efficiency ratio on a non-GAAP basis also worsened from last quarter. Both the efficiency ratio and the returns on average assets and equity were affected by increased non-interest expense in the first 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 quarter exclude the loss on security sales in the prior quarter, 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.
Comparable (non-GAAP) Excluding Loss on Sale of Securities
Three months ended
 (in thousands, except per share amounts; unaudited)
March 31, 2026December 31, 2025March 31, 2025
Return on average assets
Average assets$3,989,253 $3,926.118 $3,728,066 
Return on average assets (GAAP)0.87 %(4.00)%0.53 %
Comparable return on average assets (non-GAAP)0.87 %0.95 %0.53 %
Return on average equity
Average stockholders' equity398,017 426,394 437,176 
Return on average equity (GAAP)8.67 %(36.79)%4.52 %
Comparable return on average equity (non-GAAP)8.67 %8.74 %4.52 %
Efficiency ratio
Efficiency ratio (GAAP)66.03 %(54.31)%75.72 %
Comparable efficiency ratio (non-GAAP)66.03 %61.42 %75.72 %
See complete Reconciliation of GAAP and Non-GAAP Financial Measures below
Related non-GAAP tax benefit calculated using blended statutory rate of 29.5636%

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•Despite a reduction in the average cost of interest bearing deposits from 2.16% to 2.10% in the first quarter of 2026 compared to the prior quarter, the average cost of total deposits remained flat at 1.35% due to a reduction in non-interest bearing deposits. Non-interest bearing deposits continued to make up a strong portion of total deposits at 35.9% as of March 31, 2026, compared to 36.7% last quarter.

•Total deposits increased 0.37% to $3.428 billion as of March 31, 2026 compared to $3.416 billion as of December 31, 2025 due largely to inflows from existing customers as well as new relationships to the Bank in the quarter.

•Capital was above well-capitalized regulatory thresholds. Total risk-based capital was 15.26% as of March 31, 2026 for Bancorp compared to 15.25% as of December 31, 2025. Bancorp's tangible common equity to tangible assets ("TCE ratio") was 8.33% as of March 31, 2026.

•The Board of Directors declared a cash dividend of $0.25 per share on April 23, 2026, which was the 84th consecutive quarterly dividend paid by Bancorp. The dividend is payable on May 14, 2026 to shareholders of record at the close of business on May 7, 2026.

“Our fourth quarter balance sheet repositioning drove a reported 6 basis point expansion of net income during the quarter, or 14 basis points when adjusting for the fourth quarter recovery of non-accrual loan interest and fees,” said Chief Financial Officer Dave Bonaccorso. “While our cost of deposits was unchanged this quarter at 1.35% due to some changes in mix, our spot cost of deposits improved to 1.31% as of March 31st and we continue to believe that deposit and loan repricing benefits will allow us to further expand net interest margin during the remainder of 2026."

Loans and Credit Quality

Loans decreased by $5.1 million for the first quarter and totaled $2.116 billion as of March 31, 2026 compared to $2.121 billion as of December 31, 2025. First quarter 2026 new fundings were $60.8 million compared to $47.4 million in the first quarter of 2025.
Three months ended
 (in millions; unaudited)March 31, 2026December 31, 2025March 31, 2025
Gross loans beginning balance$2,120.9 $2,090.4 $2,083.3 
Newly funded
60.8 106.5 47.4 
New total commitments1
80.5 141.0 63.6 
Purchased — — — 
Net increase (decrease) in line of credit utilization0.6 1.3 (11.2)
Pay-downs and maturities
(30.6)(49.7)(23.4)
Charge-offs(7.3)(0.1)(0.8)
Note sales
(9.1)— (1.3)
Amortization (19.6)(27.5)(20.5)
Gross loans ending balance$2,115.7 $2,120.9 $2,073.5 
1 New total commitments includes both newly funded loans and new unfunded commitments

As discussed above, our continued discipline in credit management led to significant improvements in our credit quality this quarter including non-accrual balances, classified loan balances and past due loan balances. Non-accrual loans declined by $18.3 million during the quarter to $8.6 million, or 0.41% of total loans, compared to $26.9 million, or 1.27%, at December 31, 2025. The reduction was driven primarily by the sale of the two non-owner occupied commercial real estate loans totaling $16.3 million discussed above. The remaining $8.6 million of non-accrual loans consists primarily of one $8.2 million non‑owner occupied commercial real estate relationship which continues to exhibit conforming loan‑to‑value and debt service coverage metrics but remains on non-accrual due to an ongoing dispute related to extension terms following its late 2023 maturity.

Classified loans declined by $14.2 million during the first quarter to $17.9 million, down from $32.1 million at December 31, 2025. The improvement was driven primarily by the sale of the two non‑owner occupied commercial real estate loans previously discussed, along with payoffs totaling $2.4 million on two additional loans. These positive trends were partially offset by the downgrade of two non‑owner occupied commercial real estate loans totaling $5.7 million into the classified category. Overall, asset quality metrics improved during the quarter, and we remain disciplined and proactive in our credit management approach with close monitoring and active resolution efforts across the portfolio.
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Accruing loans past due 30 to 89 days totaled $683 thousand at March 31, 2026, down from $2.8 million at December 31, 2025.

Loans designated as special mention, which are not considered adversely classified, remained relatively stable at $119.4 million at March 31, 2026 compared to $118.0 million at December 31, 2025.

Net charge-offs totaled $7.3 million in the first quarter of 2026 compared to $64 thousand in the prior quarter. Approximately $7.2 million of the charge‑offs were related to the two non-accrual loans that were sold, as previously discussed. These charge‑offs were fully offset by specific reserves that were already in place for the two loans.

There was no provision for credit losses on loans recorded in the first quarter of 2026 compared to a provision of $300 thousand in the prior quarter. The ratio of allowance for credit losses to total loans declined to 1.08% at March 31, 2026 from 1.42% at December 31, 2025 due to the charge‑offs taken and the related decrease in specific reserves required.
There was no provision for credit losses on unfunded loan commitments in the first quarter of 2026 compared to a provision of $185 thousand in the prior quarter.

Cash, Cash Equivalents and Restricted Cash

Total cash, cash equivalents and restricted cash were $236.6 million at March 31, 2026, an increase of $11.3 million compared to $225.3 million at December 31, 2025 largely due to a $12.6 million increase in deposits.

Investments

The investment securities portfolio totaled $1.326 billion at March 31, 2026, a decrease of $1.6 million from December 31, 2025. The decrease in the portfolio was primarily due to principal repayments and calls/maturities totaling $54.5 million and $4.7 million, respectively, and an increase of $7.6 million in unrealized losses on available-for-sale ("AFS") securities, partially offset by purchases of AFS securities of $65.2 million. The portfolio is eligible for pledging to FHLB or the Federal Reserve as collateral for borrowing, and is comprised of high credit quality investments with an average effective duration of 2.90. The portfolio generates cash flows monthly from interest, principal amortization and payoffs, which supports the Bank's liquidity. Those cash flows totaled $73.4 million and $84.2 million in the first quarter of 2026 and the fourth quarter of 2025, respectively.

Deposits

Deposits increased $12.6 million, or 0.4%, to $3.428 billion at March 31, 2026, compared to $3.416 billion at December 31, 2025 primarily due to inflows from existing relationships as well as new relationships. The majority of this increase was due to an increase of $58.3 million in interest bearing transaction accounts, partially offset by a decrease of $22.2 million in non-interest bearing deposits and a decrease of $25.6 million in time accounts. This growth excludes the additional $27.3 million in deposits the Bank maintains off balance sheet as one-way sales. As of March 31, 2026, total one-way sales increased from $51.2 million to $78.5 million. The majority of the decrease in non-interest bearing deposits aligns with one anticipated client event while the decrease in time accounts reflects prudent management of the Bank's cost of deposits. Non-interest bearing deposits continued to make up a strong 35.9% of total deposits at March 31, 2026, compared to 36.7% at December 31, 2025. 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 first quarter, 42% of which were new relationships.

Borrowings and Liquidity

At March 31, 2026, the Bank had no outstanding short-term borrowings, consistent with December 31, 2025. Net available funding sources, including unrestricted cash, unencumbered available-for-sale securities and total available borrowing capacity totaled $2.185 billion, or 64% of total deposits and 221% of estimated uninsured and/or uncollateralized deposits as of March 31, 2026. Additionally, as part of our active balance sheet management, the Bank maintained $78.5 million in deposits off-balance sheet with deposit networks at March 31, 2026, compared to $51.2 million at December 31, 2025.

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The following table details the components of our contingent liquidity sources as of March 31, 2026.

(in millions)		Total AvailableAmount UsedNet Availability
Internal Sources
Unrestricted cash 1
$215.8 $— $215.8 
Unencumbered securities at market value527.7 — 527.7 
External Sources
FHLB line of credit976.1 — 976.1 
FRB line of credit 325.4 — 325.4 
Lines of credit at correspondent banks140.0 — 140.0 
Total Liquidity$2,185.0 $— $2,185.0 
1 Excludes cash items in transit as of March 31, 2026.
Note: Off-balance sheet one-way sell deposits totaling $78.5 million not included above.

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, commencing 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 $43.9 million, net of issuance costs, at March 31, 2026.

Capital Resources

Our capital ratios are summarized in the table below.

Capital Ratios
March 31, 2026December 31, 2025March 31, 2025


(dollars in thousands)
Bancorp
Bank
Bancorp
Bank
Bancorp
Bank
Common Equity Tier 1 to RWA12.61 %13.17 %12.34 %12.69 %16.69 %16.54 %
Total Tier I to RWA12.61 %13.17 %12.34 %12.69 %15.49 %15.32 %
Total Capital to RWA15.26 %14.09 %15.25 %13.90 %10.62 %10.46 %
Tier I Leverage Ratio to Avg Assets8.23 %8.59 %8.26 %8.49 %15.49 %15.32 %
Tangible Common Equity to TA8.33 %8.70 %8.35 %8.59 %8.35 %8.59 %

Bancorp's tangible common equity to tangible assets ("TCE ratio") was 8.33% at March 31, 2026, compared to 8.35% at December 31, 2025. 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.

Earnings

Net Interest Income

Net interest income totaled $30.3 million for the first quarter of 2026, a $521 thousand increase from the prior quarter. This was driven by an increase of $63.4 million in average earning assets including a $42.5 million increase in average investment securities, combined with a 45 basis point increase in average yield on investment securities, resulting in a $1.9 million increase in investment securities interest income.

The tax-equivalent net interest margin increased 6 basis points to 3.24% for the first quarter of 2026, compared to 3.18% for the prior quarter. The repositioning of securities added 21 basis points to the margin during the first quarter. This was partially offset by lower average interest-earning deposit balances at the Federal Reserve Bank and lower rates due to Federal Reserve rate cuts of 25 basis points in both October and December of 2025, that decreased the margin by 4 basis points, lower average loan yields during the quarter impacted by an interest recovery in the fourth quarter of $667 thousand and by approximately $195 million in loans tied to prime or SOFR
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whose rates declined quarter over quarter that decreased the margin by 5 basis points, and average subordinated note costs for the full quarter that decreased the margin by 5 basis points.

Non-Interest Income (Loss)

Non-interest income was $3.8 million for the first quarter of 2026, compared to a net non-interest loss of $66.6 million for the prior quarter. The increase of $70.5 million from the prior quarter was primarily attributable to a loss of $69.5 million on the sale of available-for-sale investment securities during the prior quarter. Excluding the loss on sale, prior quarter non-interest income was $2.8 million. The $1.0 million increase in the first quarter of 2026 on a non-GAAP basis was primarily attributed to an increase of $484 thousand in dividend income on FHLB stock which included a $479 thousand special dividend and a $479 thousand death benefit on bank owned life insurance.

Non-Interest Expense

Non-interest expense totaled $22.5 million for the first quarter of 2026, compared to $20.0 million for the prior quarter, an increase of $2.5 million, primarily driven by an increase of $2.0 million in salaries and related benefits expense in the first quarter of 2026. Consistent with annual adjustments and our compensation cycle, expense increases 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 in the quarter. Additionally, the bank completed the bulk of its anticipated 2026 charitable giving during the first quarter resulting in $437 thousand in expense.

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.

























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Reconciliation of GAAP and Non-GAAP Financial Measures

 (in thousands, except per share amounts; unaudited)
Three months ended
Pre-tax, pre-provision net income (loss)
March 31, 2026December 31, 2025March 31, 2025
Income (loss) before provision for (benefit from) income taxes
$11,597 $(57,375)$6,481 
Provision for credit losses on loans— 485 75 
Pre-tax, pre-provision net income (loss) (GAAP)
11,597 (56,890)6,556 
Adjustments:
Losses (gains) on sale of investment securities from portfolio repositioning— 69,466 — 
Comparable pre-tax, pre-provision net income (non-GAAP)
$11,597 $12,576 $6,556 
Net (loss) income
Net income (loss) (GAAP)
$8,510 $(39,541)$4,876 
Adjustments:
Losses (gains) on sale of investment securities from portfolio repositioning— 69,466 — 
Related income tax benefit1
— (20,534)— 
Adjustments, net of taxes— 48,932 — 
Comparable net income (non-GAAP)$8,510 $9,391 $4,876 
Diluted earnings (loss) per share
Weighted average diluted shares15,973 15,898 16,002 
Diluted earnings (loss) per share (GAAP)
$0.53 $(2.49)$0.30 
Comparable diluted earnings per share (non-GAAP)$0.53 $0.59 $0.30 
Return on average assets
Average assets$3,989,253 $3,926,118 $3,728,066 
Return on average assets (GAAP)0.87 %(4.00)%0.53 %
Comparable return on average assets (non-GAAP)0.87 %0.95 %0.53 %
Return on average equity
Average stockholders' equity398,017 426,394 437,176 
Return on average equity (GAAP)8.67 %(36.54)%4.52 %
Comparable return on average equity (non-GAAP)8.67 %8.74 %4.52 %
Return on average tangible common equity
Average goodwill and intangibles74,591 74,789 75,443 
Average tangible common equity 323,426 351,605 361,733 
Return on average tangible common equity (GAAP)10.67 %(44.62)%5.47 %
Comparable return on average tangible common equity (non-GAAP)10.67 %10.60 %5.47 %
Efficiency ratio
Non-interest expense$22,539 $20,023 $20,446 
Net interest income$30,302 $29,781 $24,128 
Non-interest income (GAAP)$3,834 $(66,648)$2,874 
Losses (gains) on sale of investment securities from portfolio repositioning— 69,466 — 
Non-interest income (non-GAAP)$3,834 $2,818 $2,874 
Efficiency ratio (GAAP)66.03 %(54.31)%75.72 %
Comparable efficiency ratio (non-GAAP)66.03 %61.42 %75.72 %
1Related tax benefit calculated using blended statutory rate of 29.5636%

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 first quarter of 2026 or in the fourth quarter of 2025.

Earnings Call and Webcast Information

Bank of Marin Bancorp (Nasdaq: BMRC) will present its first quarter financial results call via webcast on Monday, April 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
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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.


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BANK OF MARIN BANCORP FINANCIAL HIGHLIGHTS
Three months ended
(in thousands, except per share amounts; unaudited)March 31, 2026December 31, 2025March 31, 2025
Selected operating data and performance ratios:
Net income (loss)$8,510 $(39,541)$4,876 
Diluted earnings (loss) per common share$0.53 $(2.49)$0.30 
Return on average assets0.87 %(4.00)%0.53 %
Return on average equity8.67 %(36.79)%4.52 %
Return on tangible common equity10.67 %(44.62)%5.47 %
Efficiency ratio66.03 %(54.31)%75.18 %
Tax-equivalent net interest margin
3.24 %3.18 %2.70 %
Cost of deposits1.35 %1.35 %1.46 %
Cost of funds1.43 %1.38 %1.46 %
Net charge-offs (recoveries) $7,266 $64 $— 
Net charge-offs to average loans0.34 %NMNM

(in thousands; unaudited)March 31, 2026December 31, 2025
Selected financial condition data:
Total assets$3,914,117 $3,904,778 
Loans:
Commercial and industrial$159,028 $159,898 
Real estate:
Commercial owner-occupied308,905 310,219 
Commercial non-owner occupied1,373,332 1,366,251 
Construction14,215 15,101 
Home equity98,445 99,222 
Other residential105,502 110,614 
Installment and other consumer loans56,292 59,548 
Total loans$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 25,387 
Home equity223 401 
Other residential70 72 
Installment and other consumer loans204 204 
Total non-accrual loans$8,644 $26,903 
Non-accrual loans to total loans0.41 %1.27 %
Classified loans (graded substandard and doubtful)$17,939 $32,111 
Classified loans as a percentage of total loans0.85 %1.51 %
Total accruing loans 30-89 days past due $683 $2,843 
Total accruing loans 90+ days past due 1
$— $— 
Allowance for credit losses to total loans1.08 %1.42 %
Allowance for credit losses to non-accrual loans2.64x1.12x
Total deposits$3,428,126 $3,415,542 
Loan-to-deposit ratio61.72 %62.09 %
Stockholders' equity$394,492 $394,654 
Book value per share$24.37 $24.51 
Tangible book value per share
$19.77 $19.87 
Tangible common equity to tangible assets - Bank
8.70 %8.59 %
Tangible common equity to tangible assets - Bancorp
8.33 %8.35 %
Total risk-based capital ratio - Bank14.09 %13.90 %
Total risk-based capital ratio - Bancorp15.26 %15.25 %
Full-time equivalent employees309 311 
1 There were no non-performing loans over 90 days past due and accruing interest as of March 31, 2026 and December 31, 2025.
9

BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF CONDITION 
(in thousands, except share data; unaudited)March 31, 2026December 31, 2025
Assets 
Cash, cash equivalents and restricted cash$236,644 $225,303 
Investment securities: 
Available-for-sale (net of zero allowance for credit losses at March 31, 2026 and December 31, 2025, respectively)
1,326,191 1,327,812 
Total investment securities1,326,191 1,327,812 
Loans, at amortized cost2,115,719 2,120,853 
Allowance for credit losses on loans(22,823)(30,089)
Loans, net of allowance for credit losses on loans2,092,896 2,090,764 
Goodwill72,754 72,754 
Bank-owned life insurance71,095 71,306 
Operating lease right-of-use assets22,173 22,499 
Bank premises and equipment, net7,960 8,059 
Core deposit intangible, net1,716 1,916 
Interest receivable and other assets82,688 84,365 
Total assets$3,914,117 $3,904,778 
Liabilities and Stockholders' Equity 
Liabilities 
Deposits:
Non-interest bearing$1,232,228 $1,254,416 
Interest bearing:
Transaction accounts475,817 417,482 
Savings accounts226,680 232,109 
Money market accounts1,313,266 1,305,849 
Time accounts180,135 205,686 
Total deposits3,428,126 3,415,542 
Borrowings and other obligations668 709 
Subordinated notes, net43,905 43,857 
Operating lease liabilities24,553 24,747 
Interest payable and other liabilities22,373 25,269 
Total liabilities3,519,625 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 - 16,189,707, 16,102,687 and
16,102,687 at March 31, 2026, December 31, 2025 and December 31, 2025, respectively
215,648 214,910 
Retained earnings202,645 198,163 
Accumulated other comprehensive loss, net of taxes(23,801)(18,419)
Total stockholders' equity394,492 394,654 
Total liabilities and stockholders' equity$3,914,117 $3,904,778 


10

BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three months ended
(in thousands, except per share amounts; unaudited)March 31, 2026December 31, 2025March 31, 2025
Interest income   
Interest and fees on loans$26,534 $27,128 $25,183 
Interest on investment securities13,869 11,937 8,261 
Interest on due from banks2,392 2,767 1,795 
Total interest income42,795 41,832 35,239 
Interest expense   
Interest on interest-bearing transaction accounts2,039 1,591 1,161 
Interest on savings accounts577 609 533 
Interest on money market accounts7,821 7,961 7,626 
Interest on time accounts1,242 1,516 1,790 
Interest on borrowings and other obligations6 6 1 
Interest on subordinated notes808 368 — 
Total interest expense12,493 12,051 11,111 
Net interest income30,302 29,781 24,128 
Provision for credit losses on loans— 300 75 
Provision for credit losses on unfunded loan commitments— 185 — 
Net interest income after provision for credit losses30,302 29,296 24,053 
Non-interest income  
Dividends on Federal Home Loan Bank stock855 372 375 
Wealth management and trust services596 573 563 
Service charges on deposit accounts563 543 548 
Earnings on bank-owned life insurance, net488 440 476 
Earnings on bank-owned life insurance death benefits479 — 68 
Debit card interchange fees, net362 401 396 
Merchant interchange fees, net118 104 96 
Losses on sale of investment securities— (69,466)— 
Other income373 385 352 
Total non-interest income3,834 (66,648)2,874 
Non-interest expense  
Salaries and related benefits13,394 11,359 12,050 
Occupancy and equipment2,099 2,098 2,106 
Data processing1,228 1,033 1,136 
Professional services1,093 1,341 937 
Federal Deposit Insurance Corporation insurance730 539 388 
Information technology515 532 413 
Charitable contributions437 82 403 
Directors' expense285 283 304 
Depreciation and amortization263 331 322 
Amortization of core deposit intangible201 211 227 
Deposit network fees149 127 114 
Other expense2,145 2,087 2,046 
Total non-interest expense22,539 20,023 20,446 
Income (loss) before provision for (benefit from) income taxes11,597 (57,375)6,481 
Provision for (benefit from) income taxes3,087 (17,834)1,605 
Net income (loss)$8,510 $(39,541)$4,876 
Net income (loss) per common share  
Basic$0.53 $(2.49)$0.31 
Diluted$0.53 $(2.49)$0.30 
Weighted average shares:
Basic15,925 15,898 15,977 
Diluted15,973 15,898 16,002 
Comprehensive income (loss):
Net income (loss)$8,510 $(39,541)$4,876 
Other comprehensive (loss) income:
Change in net unrealized (losses) gains on available-for-sale securities(7,642)4,933 3,289 
Reclassification adjustment for losses realized on the sale of available-for-sale securities in net loss— 69,466 — 
Net unrealized losses on securities transferred from available-for-sale to held-to-maturity— (92,842)— 
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity— 9,867 340 
Other comprehensive (loss) income, before tax(7,642)(8,576)3,629 
Deferred tax (benefit) expense(2,260)(2,533)1,073 
Other comprehensive (loss) income, net of tax(5,382)(6,043)2,556 
Total comprehensive income (loss)$3,128 $(45,584)$7,432 
11

BANK OF MARIN BANCORP
AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST INCOME
Three months endedThree months endedThree months ended
March 31, 2026December 31, 2025March 31, 2025
InterestInterestInterest
AverageIncome/Yield/AverageIncome/Yield/AverageIncome/Yield/
(in thousands)BalanceExpenseRateBalanceExpenseRateBalanceExpenseRate
Assets
Interest-earning deposits with banks 1
$265,720 $2,392 3.60 %$278,508 $2,767 3.89 %$163,446 $1,795 4.39 %
Investment securities 2, 3
1,374,555 13,906 4.05 %1,332,104 11,988 3.60 %1,273,422 8,330 2.62 %
Loans 1, 3, 4, 5
2,114,052 26,646 5.04 %2,080,328 27,252 5.13 %2,073,739 25,289 4.88 %
   Total interest-earning assets 1
3,754,327 42,944 4.58 %3,690,940 42,007 4.45 %3,510,607 35,414 4.04 %
Cash and non-interest-bearing due from banks32,496 39,133 37,493 
Bank premises and equipment, net8,007 8,192 6,831 
Interest receivable and other assets, net194,423 187,853 173,135 
Total assets$3,989,253 $3,926,118 $3,728,066 
Liabilities and Stockholders' Equity
Interest-bearing transaction accounts$464,323 $2,039 1.78 %$398,492 $1,591 1.58 %$337,255 $1,161 1.40 %
Savings accounts228,635 577 1.02 %226,349 609 1.07 %227,097 533 0.95 %
Money market accounts1,367,142 7,821 2.32 %1,311,542 7,961 2.41 %1,192,956 7,626 2.59 %
Time accounts including CDARS192,553 1,242 2.62 %210,310 1,516 2.86 %228,018 1,790 3.18 %
Borrowings and other obligations 1
683 6 3.66 %726 6 3.62 %130 1 2.86 %
Subordinated notes, net43,873 808 7.36 %20,588 368 7.16 %— — — %
   Total interest-bearing liabilities2,297,209 12,493 2.21 %2,168,007 12,051 2.21 %1,985,456 11,111 2.27 %
Demand accounts1,244,595 1,285,578 1,260,482 
Interest payable and other liabilities49,432 46,139 44,952 
Stockholders' equity398,017 426,394 437,176 
Total liabilities & stockholders' equity$3,989,253 $3,926,118 $3,728,066 
Tax-equivalent net interest income/margin 1
$30,451 3.24 %$29,956 3.18 %$24.304 2.77 %
Reported net interest income/margin 1
$30,302 3.23 %$29,781 3.16 %$24,128 2.75 %
Tax-equivalent net interest rate spread2.37 %2.23 %1.77 %
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 $398 thousand, $452 thousand, and $364 thousand for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.
12