Bank of Marin Bancorp (BMRC) reported a GAAP net income of $7.5 million for the third quarter ended September 30, 2025, a turnaround from the $8.5 million net loss in Q2. The company’s non‑GAAP net income for the quarter was $4.7 million, and for the first nine months of 2025 the GAAP net income was $3.9 million versus a $14.4 million loss in the same period last year; the non‑GAAP figure for the nine‑month period was $17.1 million.
Net interest income rose to $28.2 million, up $2.3 million from Q2, and the tax‑equivalent net interest margin expanded to 3.08% from 2.93%. The increase was driven by a $78.7 million rise in average earning assets, including a $1.4 million lift in investment‑security interest income, and a 13‑basis‑point gain from the strategic securities repositioning undertaken in Q2.
Loan activity was robust, with $100.7 million in originations, $85.3 million of which were commercial loans. Total loans grew to $2.090 billion, a $16.7 million increase from June 30. Credit quality remained strong: non‑accrual loans fell to $31.5 million (1.51% of total loans) and classified loans dropped to $49.4 million (2.36% of total loans), with no net charge‑offs in the quarter.
Deposits expanded by $137.5 million to $3.383 billion, with non‑interest‑bearing deposits making up 43.1% of the balance. Cash and restricted cash stood at $219.3 million, while the investment‑securities portfolio grew to $1.355 billion. Liquidity remained solid, with no outstanding borrowings and net available funding sources of $2.026 billion, representing 60% of total deposits. The bank’s total risk‑based capital ratio was 16.13% and the tangible common equity to tangible assets (TCE) ratio was 9.72%.
The Board of Directors approved a quarterly cash dividend of $0.25 per share on October 23, 2025, payable on November 13, 2025, to shareholders of record as of November 6, 2025. The reported diluted EPS of $0.47 surpassed analyst estimates of $0.41–$0.42, generating a positive surprise. CEO Tim Myers said the bank expects continued loan growth and further credit quality improvements by year‑end, while maintaining disciplined cost management with an efficiency ratio of 68.94%.
The 13‑basis‑point gain from the securities repositioning, which incurred an $18.7 million loss in Q2, was a strategic move to enhance future earnings. The benefit was realized in Q3, contributing to the improved net interest margin and supporting the bank’s strong performance amid a challenging regional banking environment.
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