Financial Performance - Net income for Q1 2025 was $4.9 million, down from $6.0 million in Q4 2024, with diluted earnings per share at $0.30 compared to $0.38 in the previous quarter[133]. - Return on average assets (ROA) was 0.53% for Q1 2025, down from 0.63% in Q4 2024, while return on average equity (ROE) was 4.52% compared to 5.48% in the prior quarter[133]. - Net interest income for Q1 2025 totaled $24.9 million, a decrease of $284 thousand from Q4 2024, primarily due to a $36.3 million reduction in average earning assets[142]. - Non-interest income for Q1 2025 was $2.9 million, an increase of $120 thousand or 4.4% year-over-year, primarily driven by bank-owned life insurance dividend income[158]. - Total non-interest expense for Q1 2025 was $21.3 million, reflecting a $95 thousand increase or 0.4% compared to the same period in 2024, mainly due to higher charitable contributions[163]. Interest Margin and Income - The tax-equivalent net interest margin increased to 2.86% in Q1 2025 from 2.80% in Q4 2024, and was 2.50% in the same period last year, reflecting a 36 basis point year-over-year increase[133]. - Compared to Q1 2024, net interest income rose by $2.3 million, reaching $24.9 million, attributed to higher average earning asset yields and lower deposit costs[144]. - The tax-equivalent net interest margin improved by 36 basis points from 2.50% in Q1 2024, influenced by higher yields on investment securities and lower deposit costs[145]. Loans and Credit Quality - Loan balances decreased by $9.7 million to $2.074 billion, with loan fundings of $47.4 million and payoffs of $25.5 million during Q1 2025[133]. - The provision for credit losses on loans was $75 thousand in Q1 2025, with the allowance for credit losses at 1.44% of total loans[133]. - Non-accrual loans decreased to $32.9 million, or 1.59% of total loans, with approximately 57% of non-accrual loans paying as agreed[133]. - Classified loans increased to $57.4 million as of March 31, 2025, compared to $45.1 million at December 31, 2024, primarily due to downgrades in commercial relationships[178]. - Net charge-offs for Q1 2025 totaled $825 thousand, significantly higher than $19 thousand in Q4 2024, primarily due to a charge-off of an acquired commercial real estate loan[180]. Deposits and Liquidity - Total deposits rose by $82.0 million to $3.302 billion as of March 31, 2025, with non-interest bearing deposits comprising 43.2% of total deposits[133]. - Total cash, cash equivalents, and restricted cash rose to $259.9 million as of March 31, 2025, up $122.6 million from $137.3 million at December 31, 2024, driven by an $82 million increase in deposits[168]. - Cash and cash equivalents increased by $122.6 million in Q1 2025, driven by an $82.0 million net increase in deposits and $63.0 million from investment securities[199]. - The Bank had no outstanding borrowings at March 31, 2025, maintaining a strong liquidity position[203]. - Unfunded credit commitments totaled $451.2 million as of March 31, 2025, with expectations to fund these through existing loan repayments and liquid assets[201]. Capital Ratios - Bancorp's total risk-based capital ratio was 16.69% as of March 31, 2025, indicating strong capital levels above regulatory thresholds[134]. - The total risk-based capital ratio for Bancorp was 16.69% as of March 31, 2025, up from 16.54% at the end of 2024, indicating strong capital adequacy[188]. - Bancorp's tangible common equity to tangible assets (TCE ratio) was 9.82% at March 31, 2025, down from 9.93% at December 31, 2024[189]. - The Bank's capital ratios exceed the regulatory definition of "well capitalized" as of March 31, 2025[187]. Expenses and Contributions - Salaries and related benefits increased by $2.6 million in Q1 2025, attributed to various factors including new talent acquisition and increased 401(k) contributions[162]. - Charitable contributions expense in Q1 2025 was $403 thousand, significantly higher than $30 thousand in Q4 2024 and $12 thousand in Q1 2024[162]. - Total non-interest expense rose to $21.3 million in Q1 2025, compared to $21.2 million in Q1 2024, with a significant increase in charitable contributions of $391 thousand[163]. Economic Environment - The Federal Reserve's target federal funds rate was left unchanged in early 2025, reflecting projected slower economic growth and higher inflation[148]. - The effective tax rate for Q1 2025 was 24.8%, down from 37.8% in the prior quarter, reflecting lower pre-tax income and the treatment of certain permanent tax differences[165].

First Quarter 2025 Earnings Presentation Forward-Looking Statements This discussion of financial results includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "1933 Act") and Section 21E of the Securities Exchange Act of 1934, as amended, (the "1934 Act"). Those sections of the 1933 Act and 1934 Act provide a "safe harbor" for forward-looking statements to encourage companies to provide prospective information about their financial performance ...

Financial Data and Key Metrics Changes - The company reported a net income of $4.9 million for Q1 2025, which is a 67% increase year-over-year, translating to $0.30 per share [10] - The net interest margin improved by 36 basis points year-over-year, driven by a 7 basis point decrease in the cost of deposits [4][10] - The total risk-based capital ratio stood at 16.69%, with a tangible common equity (TCE) ratio of 9.82% [9] Business Line Data and Key Metrics Changes - Total loan originations for the quarter were $63 million, with commercial loan originations at $49 million, marking a fivefold increase from the same quarter last year [6] - Non-interest income increased by over $100,000 from the prior quarter, primarily due to higher earnings on Bank-Owned Life Insurance (BOLI) [13] - Non-interest expense rose by $2.9 million from the prior quarter, mainly due to seasonal increases in salaries and employee benefits [11] Market Data and Key Metrics Changes - Total deposits reached $3.3 billion, an increase of $82 million from the prior quarter, with non-interest bearing deposits comprising 43% of total deposits [13] - The average cost of deposits declined by 7 basis points in Q1, with continued reductions observed into April [14] Company Strategy and Development Direction - The company aims to continue generating solid financial performance in 2025, focusing on improving net interest margin and revenue [16] - There is an emphasis on adding banking talent to support profitable growth and investing in innovation and technology to enhance service quality [16] - The company is evaluating share repurchase options as part of its capital management strategy [17] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is economic uncertainty, they expect a higher level of loan growth driven by new hires rather than a significant increase in market-wide loan demand [16] - The company has not observed any meaningful increase in risk within its loan portfolio despite broader macroeconomic concerns [5] Other Important Information - The company declared a cash dividend of $0.25 per share, marking the 80th consecutive dividend payment [15] - Charitable contributions in Q1 were $403,000, significantly higher than previous quarters, as the timing of contributions was pulled forward [12] Q&A Session Summary Question: Expectations around the buyback moving forward - Management is contemplating capital actions and is waiting for discussions with regulators regarding their capital plan [20][22] Question: Details on classified loans - The majority of classified loans were related to two borrowers, a contractor and a multifamily real estate entity, with unique performance issues [23][24] Question: Expense expectations for upcoming quarters - The expense base is expected to normalize, with a historical compound annual growth rate of about 4% [25][26] Question: Deposit growth sustainability - The deposit growth was attributed to new accounts and inflows from existing clients, though some seasonal outflows are expected [31] Question: Future loan production trends - Loan production remains strong, driven by new hires, with a healthy pipeline expected to sustain growth [36][39] Question: Concerns regarding the wine industry exposure - The company has minimal exposure to the wine industry, with loans secured and closely monitored [87][88] Question: Client movement from larger banks to smaller institutions - There is a trend of clients moving from larger banks to community-oriented institutions, benefiting the company [90][92] Question: Investment portfolio and cash management - The company is balancing its investment portfolio and cash levels, with no immediate need to stockpile cash [94][96]

Bank of Marin (BMRC) came out with quarterly earnings of $0.30 per share, missing the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -6.25%. A quarter ago, it was expected that this bank holding company would post earnings of $0.34 per share when it actually produced earnings of $0.38, delivering a surprise of 11.76%. Over the last four quarters, ...

BANK OF MARIN BANCORP REPORTS FIRST QUARTER FINANCIAL RESULTS IMPROVED NET INTEREST MARGIN, LOAN ORIGINATIONS, AND DEPOSIT FLOWS NOVATO, CA, April 28, 2025 - Bank of Marin Bancorp, "Bancorp" (Nasdaq: BMRC), parent company of Bank of Marin, "Bank," announced net income of $4.9 million for the first quarter of 2025, compared to net income of $6.0 million for the fourth quarter of 2024 and $2.9 million for the first quarter of the prior year. Diluted earnings per share was $0.30 for the first quarter, compared ...

Investment and Financial Risks - The company's investment securities portfolio has experienced unrealized losses due to rising interest rates, significantly impacting liquidity and potential capital requirements [89]. - The company is exposed to significant credit risk, with potential loan losses exceeding the allowance for credit losses due to economic conditions and borrower defaults [94]. - The company maintains allowances for credit losses based on continuous evaluation of credit risks, which may be subject to significant estimates and assumptions [96]. - The company has goodwill totaling $72.8 million and a core deposit intangible asset of $2.8 million as of December 31, 2024, which may be subject to impairment charges in the future [81]. - The company’s funding costs increased significantly in 2023, which could rise further if deposits decline and are replaced with more expensive funding sources [76]. - The company invests significantly in debt securities issued by government-sponsored enterprises (GSEs) such as FHLB, FNMA, and FHLMC, which may lose value due to credit quality concerns [103]. - FNMA and FHLMC have been under U.S. government conservatorship for 17 years, with uncertain future impacts on financial markets and investments in GSEs [104]. Real Estate Exposure - As of December 31, 2024, approximately 90% of the company's loans had real estate as a primary or secondary component of collateral, with 72% in commercial real estate and 28% in residential real estate [98]. - The company's commercial real estate loans represented 389% of total risk-based capital as of December 31, 2024, indicating a high concentration risk [100]. - The company's commercial real estate loans represented 371% of total risk-based capital as of December 31, 2023 [100]. - The company’s primary market is located in areas prone to natural disasters, which could impair loan recoverability and impact financial condition [109]. Depositor and Funding Risks - The top ten depositor relationships accounted for approximately 9% and 8% of total deposit balances at December 31, 2024 and 2023, respectively, highlighting potential volatility in deposit balances [91]. - The company has 29% of its deposits classified as uninsured and/or uncollateralized as of December 31, 2024, which are fully covered by available funding sources totaling $1.849 billion, representing 57% of total deposits [75]. - The company relies on deposits as its primary funding source, which can be affected by external factors and customer perceptions [82]. - The company maintains strong liquidity but faces risks of deposit outflows due to depositor concerns stemming from recent high-profile bank closures [76]. Economic and Regulatory Environment - The federal funds rate increased from a range of 0.0% to 0.25% in March 2020 to a range of 5.25% to 5.50% by the end of 2023, with a total of eleven rate increases since March 2022 [87]. - Regulatory scrutiny may increase due to recent negative developments in the banking industry, potentially raising the company's costs and reducing profitability [117]. - The company is exposed to compliance risks that could lead to fines and reduced business opportunities due to extensive government regulation [112]. - Regulatory scrutiny and new requirements arising from recent banking industry events could increase the company's operational costs and reduce profitability [117]. Competition and Market Conditions - The company faces significant competition from larger financial institutions that may benefit from economies of scale, impacting its ability to generate profitable loans [72]. - The company's earnings are significantly influenced by general business and economic conditions, particularly in Northern California [84]. - Economic conditions, including California's unemployment rate and gross domestic product, significantly impact loan defaults and borrowers' creditworthiness [85]. Cybersecurity and Technological Changes - Cybersecurity risks pose a threat to the company's earnings and reputation, necessitating robust security measures to protect sensitive information [106]. - Cybersecurity risks pose a threat to the company's earnings and reputation, with potential impacts from sophisticated cyber threats [106]. - The financial services industry is undergoing rapid technological changes, and the company must adapt to remain competitive and efficient [108]. - The financial services industry is undergoing rapid technological changes, and the company must stay current to remain competitive and efficient [108]. Operational Risks - The company relies on third-party vendors for critical operations, and any disruption could negatively impact its financial condition [110]. - The company strategically sold securities in the third and fourth quarters of 2023 and the second quarter of 2024 to bolster net interest margin, despite the risk of incurring losses [90]. - The company relies on dividends from the bank to meet financial obligations, and any inability to pay dividends could adversely affect its stock price [79]. - The company actively diversifies credit exposure across various geographic locations and investment-grade securities to minimize risk [105]. - Climate change and related regulations may materially affect the company's operations and financial condition, particularly in disaster-prone areas [109].

Fourth Quarter 2024 Earnings Presentation J a n u a r y 2 7 , 2 0 2 5 Forward-Looking Statements This discussion of financial results includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "1933 Act") and Section 21E of the Securities Exchange Act of 1934, as amended, (the "1934 Act"). Those sections of the 1933 Act and 1934 Act provide a "safe harbor" for forward-looking statements to encourage companies to provide prospective information about ...

Financial Data and Key Metrics Changes - The company generated $6 million in net income for Q4 2024, or $0.38 per share, both higher than the prior quarter, reflecting improved financial performance due to balance sheet repositioning and expense reduction actions [18][19] - Net interest income increased by 4% from the prior quarter to $25.2 million, driven by a 10 basis point increase in net interest margin [19][20] - Noninterest expense decreased by $2.1 million from the prior quarter, primarily due to a decline in salaries and benefits expense [20][24] - The total risk-based capital ratio increased to 16.5%, and the tangible common equity (TCE) ratio was 9.93% [17] Business Line Data and Key Metrics Changes - Loan originations totaled $54 million with $47 million in outstanding balances, showing a well-diversified mix of commercial and commercial real estate loans [14][15] - The company made nearly twice as many commercial and construction loans compared to the same period last year [15] - Nonaccrual loans and classified loans both declined during the fourth quarter due to paydowns, with no provision for credit losses recorded [12][24] Market Data and Key Metrics Changes - Total deposits were $3.2 billion at December 31, 2024, reflecting expected seasonal outflows typical for the fourth quarter [21][22] - The proportion of noninterest-bearing deposits remained high at 43% of total deposits, benefiting from a relationship banking model [16] Company Strategy and Development Direction - The company aims to capitalize on improved economic conditions and loan demand, with a strong pipeline of diversified opportunities across markets, industries, and asset classes [27][28] - Strategic investments in technology are expected to enhance efficiency and client service in 2025 [29] - The company is focused on organic growth while remaining open to opportunistic acquisitions [118][150] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued financial performance improvements in 2025, supported by a strong balance sheet and disciplined underwriting practices [27][28] - The company is seeing positive trends in net interest margin and prudent expense management, which should lead to revenue growth and increased profitability [28][29] Other Important Information - The company declared a cash dividend of $0.25 per share, marking the 79th consecutive quarterly dividend [26] - The transition to a new CFO, Dave Bonaccorso, was highlighted, with management expressing confidence in the leadership team [17][30] Q&A Session Summary Question: Comments on margin and future expectations - Management discussed the drivers of net interest margin and the expectation of continued improvement in loan yields, particularly in a higher rate environment [39][50] Question: Loan growth pipeline and payoffs - The company reported a 40% increase in the loan pipeline compared to the previous year, with expectations of originations outpacing payoffs [52][116] Question: Seasonal dynamics in deposits - Management noted that fluctuations in deposits were primarily seasonal, with a focus on new client acquisition and maintaining a strong noninterest-bearing deposit base [121][123] Question: Capital deployment opportunities - Management indicated that they are considering various capital deployment options, including securities repositioning and potential acquisitions, but emphasized a preference for organic growth [128][150]

Bank of Marin (BMRC) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.76%. A quarter ago, it was expected that this bank holding company would post earnings of $0.27 per share when it actually produced earnings of $0.28, delivering a surprise of 3.70%.Over the last four quarters, th ...

EXHIBIT 99.1 FOR IMMEDIATE RELEASE MEDIA CONTACT: Yahaira Garcia-Perea Marketing & Corporate Communications Manager 916-823-7214 | YahairaGarcia-Perea@bankofmarin.com BANK OF MARIN BANCORP REPORTS FOURTH QUARTER AND FULL YEAR 2024 EARNINGS STRATEGIC ACTIONS DRIVE FURTHER IMPROVEMENTS IN FINANCIAL PERFORMANCE NOVATO, CA, January 27, 2025 - Bank of Marin Bancorp, "Bancorp" (Nasdaq: BMRC), parent company of Bank of Marin, "Bank," today announced earnings of $6.0 million for the fourth quarter of 2024, compared ...