Bank of Marin Bancorp(US:BMRC)2026-01-26 13:45Financial Performance - For Q4 2025, Bank of Marin Bancorp reported a net loss of $39.5 million, compared to a net income of $7.5 million in Q3 2025, resulting in a diluted loss per share of $2.49[3] - On a non-GAAP basis, Q4 2025 net income was $9.4 million, a 25% increase from the previous quarter, with diluted earnings per share of $0.59, a 26% increase[5] - Net loss for the fourth quarter of 2025 was $39.541 million, compared to a net income of $7.526 million in the previous quarter[40] - Comparable net income (non-GAAP) for the fourth quarter of 2025 was $9.391 million, compared to $7.526 million in the previous quarter[40] - The diluted loss earnings per share (GAAP) for the fourth quarter of 2025 was $(2.49), compared to earnings of $0.47 in the previous quarter[40] - The return on average assets (GAAP) for the fourth quarter of 2025 was (4.00)%, compared to 0.78% in the previous quarter[40] - The return on average equity was (36.79)% for the quarter ended December 31, 2025, compared to 6.79% in the previous quarter[45] - The efficiency ratio (GAAP) for the fourth quarter of 2025 was 60.40%, compared to 68.94% in the previous quarter[40] Loan and Deposit Activity - Total loans increased by $30.5 million, or 5.84% annualized, for Q4 2025, reaching $2.121 billion, with new fundings of $106.5 million being the highest since Q4 2015[11] - Deposits rose by $33.0 million, or 3.88% annualized, for Q4 2025, with non-interest bearing deposits comprising 43.7% of total deposits, up from 43.1% in the prior quarter[8] - Loans designated as special mention increased by $29.5 million to $118.0 million as of December 31, 2025, from $88.5 million as of September 30, 2025[17] - The loan-to-deposit ratio was 62.09% as of December 31, 2025, compared to 61.80% at September 30, 2025[46] - Total loans rose to $2,120,853,000 as of December 31, 2025, compared to $2,090,354,000 at September 30, 2025[46] - Total deposits increased to $3,415,542,000 as of December 31, 2025, from $3,382,576,000 at September 30, 2025[46] Asset and Capital Management - The bank's total risk-based capital ratios were 15.25% for Bancorp and 13.90% for the Bank as of December 31, 2025, indicating strong capital levels[16] - Total stockholders' equity as of December 31, 2025, was $394.654 million, down from $443.818 million as of September 30, 2025[39] - The Bancorp TCE ratio decreased to 8.4% as of December 31, 2025, compared to 9.7% as of September 30, 2025[39] - Bancorp issued $45.0 million in Fixed-to-Floating Subordinated Notes during Q4 2025 to strengthen capital ratios, with an interest rate of 6.75%[27] - Bank of Marin's total assets reached $3.904 billion as of December 31, 2025, an increase from $3.869 billion as of September 30, 2025[39] Income and Expenses - Net interest income for Q4 2025 was $31.2 million, up from $28.2 million in the prior quarter, driven by increased interest income on investment securities and loans[30] - Non-interest income showed a loss of $66.6 million for Q4 2025, primarily due to a $69.5 million loss on the sale of securities[34] - Non-interest expenses totaled $21.4 million for Q4 2025, a slight increase from $21.3 million in the prior quarter, with deposit network fees rising due to increased volume[36] - Total non-interest expense for the year ended December 31, 2025, was $57,375,000, up from $52,483,000 in 2024, representing a 5.4% increase[48] Risk Management - Classified loans decreased to $32.1 million, or 1.51% of total loans, down from $49.4 million, reflecting proactive risk management[14] - Non-accrual loans totaled $26.9 million, or 1.27% of the loan portfolio, a decrease from 1.51% in the previous quarter[11] - Net charge-offs for Q4 2025 totaled $64 thousand, with a provision for credit losses on loans of $300 thousand due to loan growth and economic forecast deterioration[18] - The allowance for credit losses to total loans was 1.42% as of December 31, 2025, compared to 1.43% at September 30, 2025[46] Market Position - Bank of Marin was ranked the 1 west coast deposit franchise and 4 nationwide in 2025 by S&P Global Market Intelligence[43]