Bank of Marin Bancorp (BMRC) investor relations material

Executive summary

• Net income for Q2 2026 was $9.2 million, up from $8.5 million in Q1 2026, with diluted EPS of $0.58 and significant year-over-year improvement.

• Net interest margin expanded by 14 basis points to 3.38% in Q2 2026, driven by higher loan yields and lower deposit costs.

• Profitability benefited from balance sheet restructuring, disciplined deposit pricing, and expense management.

• Book value per share increased to $24.51 and tangible book value per share to $19.92.

• Special mention loans reduced by $19 million, significantly lowering wine industry exposure.

Financial highlights

• Net interest income for Q2 2026 was $30.8 million, up $0.5 million sequentially, driven by higher loan yields and lower deposit costs.

• Non-interest income declined by $665,000 due to lower FHLB dividend income and absence of BOLI death benefits; excluding these, non-interest income rose by $293,000.

• Non-interest expense decreased by $942,000 to $21.6 million, mainly due to lower salaries, benefits, and charitable contributions.

• Yield on new loan fundings increased to 6.53%, the highest in four quarters.

• Deposits decreased by $58.2 million (1.7%) to $3.37 billion, attributed to a few large relationships and seasonal activity, but remained up nearly 4% year-over-year.

Outlook and guidance

• Capital ratios are projected to remain above regulatory and internal minimums over a five-year horizon, even under stress scenarios.

• Margin expansion is likely to persist, with further loan yield benefits anticipated over the next year.

• Management remains focused on sustainable growth, balance sheet management, profitability, liquidity, and capital management.

• Loan pipeline and production expected to accelerate, supported by recent hires and revived construction lending.

• Liquidity and contingent funding sources are adequate to support operational needs.