BMRC

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net income and earnings per share nearly doubled year-over-year, driven by a 14-basis-point expansion in net interest margin and disciplined balance sheet management. Loan production momentum increased with $98 million in new commitments, a 24% rise over the prior year, supported by opportunistic hiring from market disruptions. Management executed a planned exit of a $19 million criticized relationship, which improved credit quality metrics but caused a modest decline in period-end loan balances. Deposit costs were reduced to 1.28% through targeted rate cuts and a relationship-focused strategy that added nearly 1,000 new accounts during the quarter. The bank utilized one-way deposit sales as a risk management tool to reduce excess cash and high-cost deposits, improving both net interest margin and efficiency ratios. Credit risk continued to trend downward, evidenced by a meaningful decline in special mention loans and a $320 thousand reversal of provisions for credit losses. Management expects non-interest expenses in the second half of 2026 to remain consistent with first-half levels as they continue investing in talent and technology. Loan yields are projected to see approximately a 20-basis-point benefit in monthly yield by this time next year. as the portfolio continues to reprice at higher market rates. The bank anticipates a revival in construction lending, particularly for infill projects in San Francisco, which is expected to support both balance growth and higher yields. Securities portfolio management will focus on reducing its size relative to the balance sheet, with approximately $200 million in expected payoffs over the next 12 months. Capital allocation priorities remain focused on supporting organic growth and exploring M&A opportunities that provide attractive franchise value enhancement. A $74 million seasonal outflow from a single large relationship impacted total deposit balances, though management noted the client remains active with the bank. The bank's securities portfolio is now 100% Available-for-Sale (AFS), providing greater balance sheet flexibility while requiring careful management of AOCI risk. Regulatory constraints related to prior balance sheet restructurings currently require the bank to seek permission for certain capital actions, such as share buybacks. Non-interest income was impacted by the non-recurrence of a special FHLB dividend and BOLI death benefits received in the previous quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is being driven by opportunistic hiring of teams from disrupted competitors, particularly in San Francisco and the East Bay. Management is seeing a 'revival' in construction lending for single-family and condo infill projects, which had been dormant for several years. The tax-equivalent NIM for June reached 3.51%, though management suggests 3.44% to 3.45% is a more normalized launch point for future quarters. Yields on new loan fundings reached 6.53% in Q2, significantly higher than the 5.86% yield on loans that paid off during the period. Management is observing aggressive pricing in the market and is actively walking away from deals priced at 150 basis points over relevant indices. There is an increasing market request for non-recourse structures, which the bank is approaching with caution to maintain underwriting discipline.

Interested in Bank of Marin Bancorp? Here are five stocks we like better. Second-quarter profitability improved: Net income rose to $9.2 million, or $0.58 per share, while tax-equivalent net interest margin expanded 14 basis points to 3.38%, driven by higher loan yields and lower deposit costs. Loan production strengthened despite balance declines: Funded loan production increased 23% year over year to $63 million, but elevated payoffs—including a planned $19 million relationship exit—reduced period-end loans to $2.1 billion. Management is expanding relationship teams and targeting commercial, industrial and construction lending. Credit and capital metrics improved: Nonaccrual loans fell to 0.40% of total loans, the bank recorded a $320,000 provision reversal, and tangible common equity increased to 8.52%. Management continues to prioritize rebuilding capital and potential acquisitions over near-term share repurchases. Bank of Marin Bancorp (NASDAQ:BMRC) reported higher second-quarter earnings, wider net interest margin and improved capital ratios, while management said it is working to convert stronger loan production and client acquisition into sustainable balance-sheet growth. Net income for the quarter ended June 30 was $9.2 million, or $0.58 per share, compared with $8.5 million, or $0.53 per share, in the first quarter, Chief Financial Officer Dave Bonaccorso said. President and CEO Tim Myers said earnings per share and net income nearly doubled from the second quarter of 2025. → MarketBeat Week in Review – 07/20- 07/24 Return on average assets rose to 0.96%, while return on average tangible common equity reached 11.6%. The efficiency ratio improved to 63.6%. Tax-equivalent net interest margin expanded 14 basis points during the quarter to 3.38%. Myers attributed the improvement to higher loan yields, targeted reductions in deposit rates and balance-sheet management. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Net interest income increased sequentially to $30.8 million, supported by increased interest income on loans and lower deposit expense. The yield on new loan fundings rose 62 basis points from the prior quarter to 6.53%, while the quarterly cost of deposits declined seven basis points. The spot cost of deposits fell three basis points between March 31 and June 30. Bonaccorso said the 14-basis-point quarterly margin increase was a high bar but that several drivers could continue. He cited expected benefits from certificate-of-deposit repricing, targeted deposit-rate reductions and the impact of newly originated loans being on the balance sheet for a full quarter. → 2 Stocks Built to Thrive If Inflation Refuses to Fade For June, the tax-equivalent net interest margin was 3.48%, though Bonaccorso said a more normalized level, excluding a relatively high benefit from one-way deposit sales, would be approximately 3.44% to 3.45%. The company has used one-way deposit sales as part of its balance-sheet management strategy. Bonaccorso said the sales reduce excess cash and higher-cost deposits, supporting net interest margin and providing flexibility in managing the balance sheet. He added that the strategy could persist, although activity was somewhat larger during the second quarter. Bank of Marin originated $98 million in new loan commitments during the quarter, including $63 million that funded. Funded production was 23% higher than in the year-earlier period. However, period-end loan balances declined modestly to $2.1 billion because of elevated payoff activity, including the planned exit of a $19 million credit-sized relationship. Management said the exit was a de-risking action that offset otherwise positive production trends. The yield on second-quarter loan payoffs was 5.86%, compared with 6.53% on new originations, according to Bonaccorso. Myers said the bank is seeking to expand production through hiring and relationship banking. During the quarter, the company added a three-person team in San Francisco and hired a leader for its East Bay market. Myers said the bank has also continued investing in its Greater Sacramento presence and is placing greater emphasis on commercial and industrial lending. Management also pointed to an improving construction-lending environment, particularly for condominium and single-family residential infill projects in San Francisco and nearby areas. Myers said this segment had slowed for several years but is beginning to recover, potentially supporting both loan balances and yields. While competition has included aggressive pricing and non-recourse requests, Myers said Bank of Marin has been walking away from loans priced in the range of 150 basis points over the relevant index. The bank is seeking to maintain disciplined underwriting and pricing, generally targeting new loans near 200 basis points over the relevant index. Credit quality improved during the quarter, helped by the exit of the $19 million relationship. Special mention loans declined meaningfully, while nonaccrual loans fell to 0.40% of total loans from 0.41% in the prior quarter. Net charge-offs were minimal. The company recorded a $320,000 reversal of the provision for credit losses, and its allowance for credit losses remained at 1.07% of total loans. Capital ratios also increased. The tangible common equity ratio rose 19 basis points to 8.52%, the total capital ratio increased 32 basis points to 15.58%, and the Tier 1 leverage ratio rose 43 basis points to 8.66%. Tangible book value per share increased $0.15 to $19.92. The board declared a quarterly cash dividend of $0.25 per share on July 23, marking the company’s 85th consecutive quarterly dividend. Myers said the company still has approximately $24 million authorized for share repurchases, but he does not view buybacks as imminent as the bank continues rebuilding capital following prior balance-sheet restructuring actions. He said acquisitions remain a strategic priority over episodic repurchases when opportunities offer attractive franchise value, though there are no transactions currently in progress. Management said deposit balances declined during the quarter because of a small number of relationships, seasonal customer activity and investment-policy decisions. Myers noted that one customer had a $74 million outflow, but said management did not view the activity as evidence of customers leaving the bank. The bank added nearly 1,000 accounts during the quarter, with 41% coming from new relationships. Deposits were up nearly 4% from the year-earlier quarter, according to management. Noninterest income declined $665,000 sequentially, largely because the first quarter included FHLB stock dividend income, including a special dividend, and bank-owned life insurance death benefits that did not recur. Excluding those items, noninterest income increased $293,000, aided partly by fees from one-way deposit sales. Noninterest expense declined $942,000 from the first quarter, following seasonally elevated salary, benefit and charitable-contribution costs. Bonaccorso said second-half expenses should generally track the first-half pace, though third-quarter salaries may be somewhat higher than the second quarter and project spending could increase. On securities, Bonaccorso said the bank has not made purchases since January but may begin gradually reinvesting during the third quarter. He expects the securities portfolio to decline over time as about $200 million of payoffs are expected over the next 12 months, with management seeking to make loans a larger share of the balance sheet. Bank of Marin Bancorp is the bank holding company for Bank of Marin, a community-oriented financial institution headquartered in Novato, California. Through its subsidiary, the company provides a broad range of banking services to individuals, small and medium-sized businesses, and nonprofit organizations. Its operating philosophy emphasizes personalized service and strong local relationships across the San Francisco North Bay region. The company's core product offerings include deposit accounts such as checking, savings, money market and time certificates of deposit. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Bank of Marin Bancorp Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Net Income: $9.2 million, or $0.58 per share, compared to $8.5 million, or $0.53 per share, in the prior quarter. Net Interest Margin: Expanded 14 basis points to 3.38%. Net Interest Income: Increased to $30.8 million. Return on Average Assets: Increased to 0.96%. Return on Average Tangible Common Equity: Grew to 11.6%. Efficiency Ratio: Improved to 63.6%. New Loan Commitments: $98 million, with $63 million funded, a 23% increase over the prior year's period. Period-End Loan Balances: Declined to $2.1 billion. Nonaccrual Loans: Declined from 0.41% to 0.4% of total loans. Allowance for Credit Losses: Stable at 1.07% of total loans. Total Deposits: Declined to $58.2 million, up nearly 4% from the prior year quarter. Average Cost of Total Deposits: Reduced to 1.28%. Tangible Common Equity Ratio: Increased 19 basis points to 8.52%. Total Capital Ratio: Increased 32 basis points to 15.58%. Tier 1 Leverage Ratio: Increased 43 basis points to 8.66%. Tangible Book Value per Share: Increased $0.15 to $19.92. Dividend: Declared a cash dividend of $0.25 per share. Warning! GuruFocus has detected 6 Warning Signs with BMRC. Is BMRC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net income and earnings per share nearly doubled compared to the second quarter of 2025, indicating strong financial performance. Tax equivalent net interest margin expanded by 14 basis points to 3.38%, reflecting improved loan yields and disciplined balance sheet management. Credit quality improved with a decline in nonaccrual loans and a minimal net charge-off, alongside a $320,000 reversal of provisions for credit losses. The bank originated $98 million in new loan commitments, a 23% increase over the prior year's period, demonstrating strong loan production. The bank added nearly 1,000 new accounts during the quarter, with 41% coming from new relationships, showcasing effective client acquisition strategies. Period-end loan balances declined modestly to $2.1 billion due to elevated payoff activity, including the planned exit of a $19 million criticized relationship. Total deposit balances declined by $58.2 million in the second quarter, attributed to a small number of relationships and seasonal customer activity. Noninterest income decreased by $665,000 during the quarter, primarily due to a decrease in dividend income on FHLB stock and BOLI death benefits. The competitive landscape for funding remains challenging, with aggressive pricing and nonrecourse requests impacting loan pricing and structure. The bank's securities portfolio has been decreasing, and while reinvestment is expected, the portfolio is not anticipated to grow significantly over time. Q: Can you elaborate on the strategy to increase loan production and drive growth, and how do you view loan growth moving forward? A: Timothy Myers, President and CEO, explained that the strategy involves hiring new talent and focusing on relationship-driven growth. Recent hires in San Francisco and the East Bay are expected to boost production. The bank is focusing on improving processes and targeting industry-agnostic opportunities, with a particular emphasis on C&I lending. Q: How do you view the competitive landscape for deposits and your strategy for core deposit growth? A: Timothy Myers noted that the bank's deposit franchise remains strong despite some seasonal and policy-driven outflows. The bank continues to focus on relationship management and targeted rate cuts to maintain competitiveness. Dave Bonaccorso, CFO, added that one-way sales are used to manage balance sheet flexibility and risk. Q: What is the outlook for net interest margin (NIM) and loan yields? A: Dave Bonaccorso stated that the 14 basis point improvement in NIM is expected to persist, with no significant upward pressure on deposit rates. Loan yields are benefiting from higher new loan rates and repricing of the CD portfolio. The June loan yield was 5.18%, and the tax-equivalent NIM for June was 3.48%. Q: What are the capital priorities, and is there any update on M&A activity? A: Timothy Myers emphasized that capital priorities include maintaining a strong dividend and exploring M&A opportunities for franchise value enhancement. While there are no imminent M&A deals, it remains a priority over episodic buybacks. Q: Can you provide more color on loan yields and the competitive environment? A: Dave Bonaccorso reported that new loan yields were 6.53%, while payoffs were at 5.86%. Timothy Myers added that the bank is disciplined in pricing and is cautious about aggressive pricing and nonrecourse requests in the competitive environment. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Quarterly EPS of $0.58, 14 Basis Point Expansion of Net Interest Margin NOVATO, Calif., July 27, 2026--(BUSINESS WIRE)--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 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." "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. Operating Results 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 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. 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 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. 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. 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. 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. Reconciliation of GAAP and Non-GAAP Financial Measures 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260727127491/en/ Contacts MEDIA CONTACT:Yahaira Garcia-PereaMarketing & Corporate Communications Manager916-823-7214 | [email protected]

Bank of Marin (BMRC) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.54%. A quarter ago, it was expected that this bank holding company would post earnings of $0.56 per share when it actually produced earnings of $0.53, delivering a surprise of -5.36%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Bank of Marin, which belongs to the Zacks Banks - West industry, posted revenues of $34.1 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.16%. This compares to year-ago revenues of $29.2 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bank of Marin shares have added about 10.6% since the beginning of the year versus the S&P 500's gain of 8.3%. While Bank of Marin has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bank of Marin was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.57 on $35.25 million in revenues for the coming quarter and $2.21 on $139.6 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Finance sector, Navient (NAVI), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This student loan servicing company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -9.5%. The consensus EPS estimate for the quarter has been revised 18.2% lower over the last 30 days to the current level. Navient's revenues are expected to be $129.07 million, down 1.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of Marin Bancorp (BMRC) : Free Stock Analysis Report Navient Corporation (NAVI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

First Hawaiian (FHB) came out with quarterly earnings of $0.6 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this bank holding company would post earnings of $0.53 per share when it actually produced earnings of $0.55, delivering a surprise of +3.77%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. First Hawaiian, which belongs to the Zacks Banks - West industry, posted revenues of $231.27 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.48%. This compares to year-ago revenues of $217.54 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. First Hawaiian shares have added about 13.2% since the beginning of the year versus the S&P 500's gain of 8.2%. While First Hawaiian has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for First Hawaiian was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.61 on $233.48 million in revenues for the coming quarter and $2.38 on $921.18 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Bank of Marin (BMRC), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 27. This bank holding company is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +79.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Bank of Marin's revenues are expected to be $34.05 million, up 16.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Hawaiian, Inc. (FHB) : Free Stock Analysis Report Bank of Marin Bancorp (BMRC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bay Commercial Bank (BCML) came out with quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -50.00%. A quarter ago, it was expected that this company would post earnings of $0.62 per share when it actually produced earnings of $0.75, delivering a surprise of +20.97%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Bay Commercial Bank, which belongs to the Zacks Banks - West industry, posted revenues of $25.21 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.58%. This compares to year-ago revenues of $24.67 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bay Commercial Bank shares have added about 13.3% since the beginning of the year versus the S&P 500's gain of 9.6%. While Bay Commercial Bank has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bay Commercial Bank was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.67 on $26.6 million in revenues for the coming quarter and $2.73 on $106.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Bank of Marin (BMRC), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 27. This bank holding company is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +79.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Bank of Marin's revenues are expected to be $34.05 million, up 16.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bay Commercial Bank (BCML) : Free Stock Analysis Report Bank of Marin Bancorp (BMRC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research