Bank of Marin Bancorp(BMRC) - 2022 Q4 - Annual Report

Credit Commitments and Losses - Undrawn credit commitments totaled $566.9 million at December 31, 2022, with$87.0 million of time deposits maturing over the next twelve months[135] - Modeled expected credit losses for December 31, 2022, were $12,651 thousand, with total credit losses at$22,983 thousand[140] - Non-accrual loans decreased by $5.9 million in 2022, primarily due to the payoff of two owner-occupied commercial real estate loans totaling$7.1 million[145] - Total accruing TDR loans were $1.8 million as of December 31, 2022, a decrease of$327 thousand from 2021[147] - Non-performing loans and accruing TDR loans totaled $4,204 thousand as of December 31, 2022, compared to$10,475 thousand in 2021[144] - The allowance for credit losses to non-accrual loans ratio was 9.45x as of December 31, 2022, compared to 2.75x in 2021[144] - Net charge-offs and recoveries for the years ended December 31, 2022, 2021, and 2020 were considered insignificant[141] - Criticized and classified loans included $60,207 thousand in special mention and$28,010 thousand in substandard loans as of December 31, 2022[144] Tax Assets and Interest Receivable - Interest receivable and other assets increased by $28.4 million in 2022, primarily due to a$30.5 million increase in net deferred tax assets[151] - Net deferred tax assets increased by $30.5 million in 2022, primarily due to a$30.2 million increase related to unrealized losses on available-for-sale investment securities[127] Deposits and Liquidity - Total average deposits in 2022 were $3.835 billion, with non-interest bearing deposits accounting for 52.0$1.584 billion, down from $1.830 billion in 2021[133] - Bancorp held$4.5 million in cash at December 31, 2022, with liquidity primarily sourced from dividends from the Bank[136] - The company has a market share of 11.5% of total deposits in Marin County, based on FDIC data as of June 30, 2022[190] - The Bank offers a variety of deposit options, including mobile deposit, remote deposit capture, and ACH services, with full FDIC insurance coverage through networks like CDARS and ICS[167] Financial Instruments and Redemptions - The company redeemed a $2.8 million subordinated debenture on March 15, 2021, which carried an average interest rate of 5.68% in 2020[148] Operational and Strategic Initiatives - Bancorp's primary uses of funds include shareholder dividends, operating expenses, and stock repurchases[136] - The company's ATM network is linked to PLUS, CIRRUS, NYCE, and MoneyPass networks, providing 24-hour account access[187] - Bancorp has registered several service marks, including "The Spirit of Marin" and "Bank of Marin," with the United States Patent & Trademark Office[187] - The company's total compensation package includes an Employee Stock Ownership Plan, aimed at attracting and retaining employees[190]