Bank of Marin Bancorp(BMRC) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for the first quarter of 2025 was $4.9 million, a decrease from $6.0 million in the fourth quarter of 2024 but an increase from $2.9 million in the first quarter of the prior year[1]. - Net income for Q1 2025 was $4.9 million, a decrease from $6.0 million in Q4 2024, while diluted earnings per share fell to $0.30 from $0.38[36]. - Net income for the three months ended March 31, 2025, was $4,876 thousand, down from $6,001 thousand in the previous quarter, a decline of 18.69%[40]. - The comprehensive income for the three months ended March 31, 2025, was $7,432 thousand, significantly higher than $2,421 thousand in the previous quarter[40]. Interest Margin and Income - The tax-equivalent net interest margin improved by 6 basis points to 2.86% from the previous quarter and by 36 basis points year-over-year[2]. - The tax-equivalent net interest margin increased to 2.86% for Q1 2025, up from 2.80% in the prior quarter, driven by a lower cost of funds contributing 7 basis points[23]. - Net interest income for the three months ended March 31, 2025, was $24,946 thousand, compared to $25,230 thousand for the previous quarter, a decrease of 1.13%[40]. Loan and Deposit Activity - Loan originations for the first quarter were $63.6 million, with commercial loans accounting for $50.2 million, representing a fivefold increase compared to the first quarter of 2024[4]. - Total deposits increased by $82.0 million to $3.302 billion as of March 31, 2025, with non-interest bearing deposits making up 43.2% of total deposits[16]. - Total deposits increased to $3.30 billion in Q1 2025, up from $3.22 billion in Q4 2024[36]. - Total deposits rose to $3,301,971 thousand as of March 31, 2025, an increase of 2.53% from $3,220,015 thousand at December 31, 2024[38]. - The loan-to-deposit ratio improved to 62.80% in Q1 2025, compared to 64.70% in the previous quarter[36]. Credit Quality - The allowance for credit losses was 1.44% of total loans as of March 31, 2025, down from 1.47% at December 31, 2024[13]. - Classified loans increased to 2.77% of total loans, up from 2.17% in the previous quarter, largely due to downgrades in commercial relationships[8]. - Net charge-offs for the first quarter were $825 thousand, compared to $19 thousand in the fourth quarter of 2024[12]. - The provision for credit losses on loans was $75 thousand for the three months ended March 31, 2025, compared to $350 thousand in the same period last year[40]. Expenses and Efficiency - The efficiency ratio increased to 76.44% from 65.53% in the prior quarter, primarily due to higher non-interest expenses[2]. - Non-interest expenses increased to $21.3 million in Q1 2025, up from $18.3 million in the prior quarter, with salaries and related benefits accounting for a $2.6 million rise[25]. Capital and Assets - The total risk-based capital ratio for Bancorp was 16.69% as of March 31, 2025, an increase from 16.54% at December 31, 2024[20]. - Total assets reached $3.78 billion as of March 31, 2025, compared to $3.70 billion at the end of the previous quarter[36]. - Total assets increased to $3,784,243 thousand as of March 31, 2025, up from $3,701,335 thousand at December 31, 2024, representing a growth of 2.24%[38]. - The total liabilities increased to $3,344,677 thousand as of March 31, 2025, up from $3,265,928 thousand at December 31, 2024, reflecting a growth of 2.40%[38]. - The total stockholders' equity increased to $439,566 thousand as of March 31, 2025, compared to $435,407 thousand at December 31, 2024, a rise of 0.50%[38]. Other Information - The company has a share repurchase program approved for up to $25 million, expiring on July 31, 2025, with no repurchases made in Q1 2025[30]. - Cash, cash equivalents, and restricted cash totaled $259.9 million, an increase of $122.6 million from December 31, 2024[14]. - The average yield on loans remained stable at 4.88% for the three months ended March 31, 2025, consistent with the previous quarter[41]. - Non-interest income rose to $2.9 million in Q1 2025, compared to $2.8 million in the previous quarter, primarily due to a $71 thousand death benefit from bank-owned life insurance[24]. - Non-interest income totaled $2,874 thousand for the three months ended March 31, 2025, an increase of 4.39% from $2,753 thousand in the previous quarter[40]. - The tangible common equity (TCE) ratio was 9.8% as of March 31, 2025, slightly down from 9.9% in the prior quarter[29].