Bank of Marin Bancorp (BMRC) investor relations material

Executive summary

• Net income for Q1 2026 was $8.5 million, up 75% year-over-year from $4.9 million in Q1 2025 and reversing a $39.5 million loss in Q4 2025; diluted EPS was $0.53, up from $0.30 year-over-year and compared to a loss of $(2.49) in the prior quarter.

• Achieved highest Q1 loan originations since 2015, with $81 million in new loans and $61 million funded, marking a nearly 30% increase over the prior year.

• Net interest margin expanded to 3.24% from 3.18% in Q4 2025 and 2.77% in Q1 2025, driven by balance sheet repositioning and higher loan yields.

• Credit quality improved through the sale of $16.3 million in classified and non-accrual loans, reducing non-accrual loans to 0.41% of assets and classified loans to 0.85% of total loans.

• Deposit growth continued, with total deposits at $3.428 billion, up 3.8% year-over-year, and non-interest bearing deposits comprising 35.9% of the total.

Financial highlights

• Net interest income rose to $30.3 million, up from $24.1 million in Q1 2025 and $29.8 million in Q4 2025, aided by higher investment yields and lower deposit costs.

• Non-interest income was $3.8 million, up from $2.9 million year-over-year, benefiting from special FHLB dividend and BOLI death benefit.

• Non-interest expense increased to $22.5 million, mainly due to higher personnel costs, FDIC insurance, and annual charitable giving.

• No provision for credit losses was required; allowance for credit losses stands at 1.08% of total loans, down from 1.42% at year-end.

• Book value per share was $24.37 and tangible book value per share was $19.77 as of March 31, 2026.

Outlook and guidance

• Management expects further net interest margin expansion in 2026, supported by deposit and loan repricing benefits.

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

• Focus remains on disciplined loan growth, deposit cost management, and efficiency gains.

• Non-interest expense expected to remain stable, with possible increases tied to strategic hiring for growth.

• Positive operating leverage and robust liquidity are expected throughout the year.