Bank of Marin Bancorp(BMRC) - 2024 Q4 - Annual Results

Financial Performance - Bank of Marin Bancorp reported earnings of $6.0 million for Q4 2024, a 30.43% increase from $4.6 million in Q3 2024, with diluted earnings per share rising 35.71% to $0.38[1][2] - Net income for Q4 2024 was $6,001,000, an increase from $4,570,000 in Q3 2024 and a significant recovery from a loss of $8,409,000 in Q4 2023[38] - The net loss for 2024 was $8.4 million, compared to a net income of $19.9 million in 2023, with comparable net income (non-GAAP) at $14.5 million[32] - The diluted loss per share (GAAP) for 2024 was $(0.52), while the comparable diluted earnings per share (non-GAAP) was $0.90[32] - Basic net income per share for Q4 2024 was $0.38, up from $0.28 in Q3 2024 and $0.04 in Q4 2023[42] Interest Income and Margin - The net interest margin improved by 10 basis points to 2.80% in Q4 2024, driven by a reduction in deposit rates, while loan yields increased by 9 basis points[4] - Total interest income for Q4 2024 was $36,476,000, an increase of 0.43% from $36,319,000 in Q3 2024 and 2.97% from $35,423,000 in Q4 2023[42] - Tax-equivalent net interest income for the year ended December 31, 2024, was $95,362 thousand, with a margin of 2.63%[45] - Reported net interest income for the year ended December 31, 2024, was $94,660 thousand, maintaining a margin of 2.61%[45] Asset and Loan Management - Total loans decreased by $6.8 million to $2.083 billion as of December 31, 2024, with organic originations totaling $47.1 million in Q4 2024, up from $28.2 million in Q3 2024[6][7] - Total assets decreased to $3,701,335,000 as of December 31, 2024, down from $3,792,833,000 in Q3 2024 and $3,803,903,000 in Q4 2023[40] - The allowance for credit losses to total loans ratio was 1.47% as of December 31, 2024, unchanged from Q3 2024 but up from 1.21% in Q4 2023[40] - Non-accrual loans decreased to $33.9 million, or 1.63% of the loan portfolio, down from 1.91% in the previous quarter[8][9] Expenses and Efficiency - Non-interest expenses decreased to $18.3 million in Q4 2024 from $20.4 million in the prior quarter, with a $1.4 million reduction in salaries and related benefits[30] - Total non-interest expenses increased to $81.8 million in 2024 from $79.5 million in 2023, with significant increases in professional services and salaries[31] - The efficiency ratio (GAAP) for 2024 was 111.62%, compared to 73.76% in 2023, indicating increased operational inefficiencies[32] - The efficiency ratio improved to 65.53% in Q4 2024, compared to 75.18% in Q3 2024 and 111.62% in Q4 2023[38] Capital and Dividends - The total risk-based capital ratio for Bancorp was 16.54% as of December 31, 2024, compared to 16.40% at the end of Q3 2024[21] - A cash dividend of $0.25 per share was declared, marking the 79th consecutive quarterly dividend paid by Bancorp[9] Non-Interest Income - Non-interest income for Q4 2024 was $2.8 million, a decrease of $135 thousand from Q3 2024, primarily due to the disbursement of a customer's trust assets[28] - Non-interest income for 2024 showed a loss of $21.4 million, a decrease of $26.3 million from $5.0 million in 2023, largely due to a $32.5 million net loss on the sale of investment securities[29] - Non-interest income totaled $2,753,000 in Q4 2024, compared to a loss of $3,283,000 in Q4 2023, indicating a significant recovery in non-interest revenue[42] Share Repurchase - The company repurchased 220,000 shares for $4.2 million at an average price of $19.21 per share in Q3 2024, with no repurchases in Q4 2024 or in 2023[33]