Form 8-K
8-K — Bank of Marin Bancorp
Accession: 0001403475-26-000025
Filed: 2026-04-27
Period: 2026-04-23
CIK: 0001403475
SIC: 6022 (STATE COMMERCIAL BANKS)
Item: Results of Operations and Financial Condition
Item: Regulation FD Disclosure
Item: Other Events
Item: Financial Statements and Exhibits
Documents
8-K — bmrc-20260423.htm (Primary)
EX-99.1 (earningsrelease-ex991q12026.htm)
EX-99.2 (bmrc-q12026earningsinves.htm)
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8-K
8-K (Primary)
Filename: bmrc-20260423.htm · Sequence: 1
bmrc-20260423
0001403475FALSE00014034752026-04-232026-04-23
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 23, 2026
Bank of Marin Bancorp
(Exact name of Registrant as specified in its charter)
California
001-33572 20-8859754
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
504 Redwood Blvd., Suite 100, Novato, CA
94947
(Address of principal executive office) (Zip Code)
Registrant’s telephone number, including area code: (415) 763-4520
Not Applicable
(Former name or former address, if changes since last report)
Check the appropriate box below if the Form 8-K filing is to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c)) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Common stock, no par value BMRC The Nasdaq Stock Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 - Financial Information
Item 2.02 Results of Operations and Financial Condition
On April 27, 2026, Bank of Marin Bancorp, "Bancorp" (Nasdaq: BMRC), parent company of Bank of Marin, released its financial results for the quarter ended March 31, 2026. A copy of the press release is included as Exhibit 99.1.
The press release will be available on Bank of Marin's website at http://www.bankofmarin.com under “Investor Relations/News & Market Data/Press Releases" and "Presentations” on April 27, 2026.
Section 7 - Regulation FD
Item 7.01 Regulation FD Disclosure
Bancorp is furnishing presentation materials that may be used at various investor conferences during the second quarter of 2026. The Company is not undertaking to update the earnings presentation. A copy of the presentation is attached as Exhibit 99.2 to this report and is being furnished to the SEC and shall not be deemed “filed” for any purpose.
The earnings presentations will be available on Bank of Marin’s website at http://www.bankofmarin.com under Investor Relations/News & Market Data/Press Releases” on April 27, 2026.
Section 8 - Other Events
Item 8.01 Other Events
In the press release, Bancorp announced that on April 23, 2026, its Board of Directors approved a quarterly cash dividend of $0.25 per share. The cash dividend is payable on May 14, 2026, to shareholders of record at the close of business on May 7, 2026.
A copy of the press release is attached to this report as Exhibit 99.1.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
Exhibit No.
Description
Page Number
99.1
Press Release dated April 27, 2026
1-12
99.2
First Quarter 2026 Earnings Presentation
104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 27, 2026 BANK OF MARIN BANCORP
By: /s/ David Bonaccorso
David Bonaccorso
Executive Vice President
and Chief Financial Officer
EX-99.1
EX-99.1
Filename: earningsrelease-ex991q12026.htm · Sequence: 2
Document
EXHIBIT 99.1
FOR IMMEDIATE RELEASE MEDIA CONTACT:
Yahaira Garcia-Perea
Marketing & Corporate Communications Manager
916-823-7214 | YahairaGarcia-Perea@bankofmarin.com
BANK OF MARIN BANCORP REPORTS FIRST QUARTER FINANCIAL RESULTS
FURTHER IMPROVEMENTS IN NET INTEREST MARGIN AND ASSET QUALITY
NOVATO, CA, April 27, 2026 - Bank of Marin Bancorp, "Bancorp" (Nasdaq: BMRC), parent company of Bank of Marin, "Bank," announced net income of $8.5 million for the first quarter of 2026, compared to a net loss of $39.5 million due to the impact of its balance sheet restructuring (net income of $9.4 million, non-GAAP) for the fourth quarter of 2025. Largely as a result of continued net interest margin expansion, net income increased 75% year over year from $4.9 million for the same period in the prior year. Notably, the Bank showed continued seasonal improvement in loan originations and demonstrated significant improvement in credit quality as evidenced by a substantial decline in its non-accrual and classified loans, while deposit balances increased with flat cost of deposits. Diluted income per share was $0.53 for the first quarter, compared to diluted loss per share of $2.49 (diluted earnings per share of $0.59, non-GAAP) for the prior quarter. Results for the prior quarter include pre-tax losses on the sale of securities of $69.5 million, incurred as part of the repositioning to improve the bank's future earnings.
Comparable (non-GAAP) Excluding Loss on Sale of Securities
Three months ended Year to date
(in thousands, except per share amounts; unaudited)
March 31, 2026 December 31, 2025 % Change March 31, 2026 March 31, 2025 % Change
Pre-tax, pre-provision net income (loss)
Pre-tax, pre-provision net income (loss) (GAAP)
$ 11,597 $ (56,890) (120.4) % $ 11,597 $ 6,556 76.9 %
Comparable pre-tax, pre-provision net income (non-GAAP)
11,597 12,576 (7.8) % 11,597 6,556 76.9 %
Net income (loss)
Net income (loss) (GAAP)
8,510 (39,541) (121.5) % 8,510 4,876 74.5 %
Comparable net income (non-GAAP) 8,510 9,391 (9.4) % 8,510 4,876 74.5 %
Diluted earnings (loss) per share
Diluted earnings (loss) per share (GAAP)
0.53 (2.49) (121.3) % 0.53 0.30 76.7 %
Comparable diluted earnings per share (non-GAAP) 0.53 0.59 (10.2) % 0.53 0.30 76.7 %
See complete Reconciliation of GAAP and Non-GAAP Financial Measures below
Related non-GAAP tax benefit calculated using blended statutory rate of 29.5636%
Concurrent with this release, Bancorp issued presentation slides providing supplemental information, some of which will be discussed during the first quarter 2026 earnings call. The earnings release and presentation slides are intended to be reviewed together and can be found online on Bank of Marin’s website at www.bankofmarin.com. under “Investor Relations.”
"During the first quarter, we remained focused on continued improvement in core banking fundamentals. We followed a strong fourth quarter with a seasonally high level of new loan originations and grew our deposits without increasing their total cost," said President & CEO Tim Myers. "At the same time, we sold our largest non-performing assets with no further impact to net income and showed notable improvement across key credit risk metrics."
Bancorp also provided the following highlights for the first quarter of 2026:
1
•The first quarter tax-equivalent net interest margin improved 6 basis points over the preceding quarter to 3.24% from 3.18%, largely due to the effects of the securities repositioning in the fourth quarter of 2025, which provided a 21 basis point increase in annualized net interest margin for the first quarter over the prior quarter. The tax-equivalent net interest margin for the three months ended March 31, 2026 improved 47 basis points over the same period of the prior year due to the increase in deposits at a decreased average cost, higher average loan balances and rates, and the favorable impact of the securities repositioned in the second and fourth quarters of 2025, which resulted in higher yielding assets during the three months ended March 31, 2026.
•During the quarter, we worked diligently to improve our credit quality. We sold our longest tenured classified and non-accrual loans totaling $16.3 million, which were downgraded to substandard in 2021, and moved to non-accrual in 2024. At that time, we recorded specific reserves of $7.3 million based on property valuations. The note sales proceeds validated our reserve assumptions, with the charge-offs equaling the specific amounts reserved in our allowance for credit losses. While other workouts were offset by new downgrades, the impact of the note sales on credit metrics was substantial: Non-accrual loans declined from 1.27% of assets to 0.41%, and the ratio of classified to total loans decreased from 1.51% to 0.85%. Notably, following the note sales virtually all remaining non-accrual balances are comprised of one non-owner occupied commercial real estate loan that has no loss expectations based on underlying valuation and cash flow.
•There was no provision for credit losses on loans in the first quarter of 2026 compared to a provision of $300 thousand in the prior quarter. The allowance for credit losses was 1.08% and 1.42% of total loans at March 31, 2026 and December 31, 2025, respectively due to the $7.2 million of charge‑offs taken against the specific reserves on the two loans sold, noted above. The charge-offs were fully offset by specific reserves already in place.
•Return on average assets ("ROA") and return on average equity ("ROE") increased on a GAAP basis from the prior quarter, as shown below, primarily due to the increased net income compared to the prior quarter which included losses from the sale of securities from the balance sheet repositioning. ROA and ROE on a non-GAAP basis both decreased from the prior quarter mainly due to decreased non-GAAP income quarter over quarter. Income was impacted by a lower day count, quarter over quarter, as well as an interest recovery on a loan in the fourth quarter of $667 thousand that was not repeated in the first quarter. The efficiency ratio on a non-GAAP basis also worsened from last quarter. Both the efficiency ratio and the returns on average assets and equity were affected by increased non-interest expense in the first quarter, mainly within salaries and related benefits and due to the annual charitable contributions made in the first quarter of 2026. Non-GAAP ratios for the prior quarter exclude the loss on security sales in the prior quarter, all other factors unchanged, and with adjustments made based on our blended statutory tax rate of 29.56%. See Reconciliation of GAAP and Non-GAAP Financial Measures below.
Comparable (non-GAAP) Excluding Loss on Sale of Securities
Three months ended
(in thousands, except per share amounts; unaudited)
March 31, 2026 December 31, 2025 March 31, 2025
Return on average assets
Average assets $ 3,989,253 $ 3,926.118 $ 3,728,066
Return on average assets (GAAP) 0.87 % (4.00) % 0.53 %
Comparable return on average assets (non-GAAP) 0.87 % 0.95 % 0.53 %
Return on average equity
Average stockholders' equity 398,017 426,394 437,176
Return on average equity (GAAP) 8.67 % (36.79) % 4.52 %
Comparable return on average equity (non-GAAP) 8.67 % 8.74 % 4.52 %
Efficiency ratio
Efficiency ratio (GAAP) 66.03 % (54.31) % 75.72 %
Comparable efficiency ratio (non-GAAP) 66.03 % 61.42 % 75.72 %
See complete Reconciliation of GAAP and Non-GAAP Financial Measures below
Related non-GAAP tax benefit calculated using blended statutory rate of 29.5636%
2
•Despite a reduction in the average cost of interest bearing deposits from 2.16% to 2.10% in the first quarter of 2026 compared to the prior quarter, the average cost of total deposits remained flat at 1.35% due to a reduction in non-interest bearing deposits. Non-interest bearing deposits continued to make up a strong portion of total deposits at 35.9% as of March 31, 2026, compared to 36.7% last quarter.
•Total deposits increased 0.37% to $3.428 billion as of March 31, 2026 compared to $3.416 billion as of December 31, 2025 due largely to inflows from existing customers as well as new relationships to the Bank in the quarter.
•Capital was above well-capitalized regulatory thresholds. Total risk-based capital was 15.26% as of March 31, 2026 for Bancorp compared to 15.25% as of December 31, 2025. Bancorp's tangible common equity to tangible assets ("TCE ratio") was 8.33% as of March 31, 2026.
•The Board of Directors declared a cash dividend of $0.25 per share on April 23, 2026, which was the 84th consecutive quarterly dividend paid by Bancorp. The dividend is payable on May 14, 2026 to shareholders of record at the close of business on May 7, 2026.
“Our fourth quarter balance sheet repositioning drove a reported 6 basis point expansion of net income during the quarter, or 14 basis points when adjusting for the fourth quarter recovery of non-accrual loan interest and fees,” said Chief Financial Officer Dave Bonaccorso. “While our cost of deposits was unchanged this quarter at 1.35% due to some changes in mix, our spot cost of deposits improved to 1.31% as of March 31st and we continue to believe that deposit and loan repricing benefits will allow us to further expand net interest margin during the remainder of 2026."
Loans and Credit Quality
Loans decreased by $5.1 million for the first quarter and totaled $2.116 billion as of March 31, 2026 compared to $2.121 billion as of December 31, 2025. First quarter 2026 new fundings were $60.8 million compared to $47.4 million in the first quarter of 2025.
Three months ended
(in millions; unaudited) March 31, 2026 December 31, 2025 March 31, 2025
Gross loans beginning balance $ 2,120.9 $ 2,090.4 $ 2,083.3
Newly funded
60.8 106.5 47.4
New total commitments1
80.5 141.0 63.6
Purchased — — —
Net increase (decrease) in line of credit utilization 0.6 1.3 (11.2)
Pay-downs and maturities
(30.6) (49.7) (23.4)
Charge-offs (7.3) (0.1) (0.8)
Note sales
(9.1) — (1.3)
Amortization (19.6) (27.5) (20.5)
Gross loans ending balance $ 2,115.7 $ 2,120.9 $ 2,073.5
1 New total commitments includes both newly funded loans and new unfunded commitments
As discussed above, our continued discipline in credit management led to significant improvements in our credit quality this quarter including non-accrual balances, classified loan balances and past due loan balances. Non-accrual loans declined by $18.3 million during the quarter to $8.6 million, or 0.41% of total loans, compared to $26.9 million, or 1.27%, at December 31, 2025. The reduction was driven primarily by the sale of the two non-owner occupied commercial real estate loans totaling $16.3 million discussed above. The remaining $8.6 million of non-accrual loans consists primarily of one $8.2 million non‑owner occupied commercial real estate relationship which continues to exhibit conforming loan‑to‑value and debt service coverage metrics but remains on non-accrual due to an ongoing dispute related to extension terms following its late 2023 maturity.
Classified loans declined by $14.2 million during the first quarter to $17.9 million, down from $32.1 million at December 31, 2025. The improvement was driven primarily by the sale of the two non‑owner occupied commercial real estate loans previously discussed, along with payoffs totaling $2.4 million on two additional loans. These positive trends were partially offset by the downgrade of two non‑owner occupied commercial real estate loans totaling $5.7 million into the classified category. Overall, asset quality metrics improved during the quarter, and we remain disciplined and proactive in our credit management approach with close monitoring and active resolution efforts across the portfolio.
3
Accruing loans past due 30 to 89 days totaled $683 thousand at March 31, 2026, down from $2.8 million at December 31, 2025.
Loans designated as special mention, which are not considered adversely classified, remained relatively stable at $119.4 million at March 31, 2026 compared to $118.0 million at December 31, 2025.
Net charge-offs totaled $7.3 million in the first quarter of 2026 compared to $64 thousand in the prior quarter. Approximately $7.2 million of the charge‑offs were related to the two non-accrual loans that were sold, as previously discussed. These charge‑offs were fully offset by specific reserves that were already in place for the two loans.
There was no provision for credit losses on loans recorded in the first quarter of 2026 compared to a provision of $300 thousand in the prior quarter. The ratio of allowance for credit losses to total loans declined to 1.08% at March 31, 2026 from 1.42% at December 31, 2025 due to the charge‑offs taken and the related decrease in specific reserves required.
There was no provision for credit losses on unfunded loan commitments in the first quarter of 2026 compared to a provision of $185 thousand in the prior quarter.
Cash, Cash Equivalents and Restricted Cash
Total cash, cash equivalents and restricted cash were $236.6 million at March 31, 2026, an increase of $11.3 million compared to $225.3 million at December 31, 2025 largely due to a $12.6 million increase in deposits.
Investments
The investment securities portfolio totaled $1.326 billion at March 31, 2026, a decrease of $1.6 million from December 31, 2025. The decrease in the portfolio was primarily due to principal repayments and calls/maturities totaling $54.5 million and $4.7 million, respectively, and an increase of $7.6 million in unrealized losses on available-for-sale ("AFS") securities, partially offset by purchases of AFS securities of $65.2 million. The portfolio is eligible for pledging to FHLB or the Federal Reserve as collateral for borrowing, and is comprised of high credit quality investments with an average effective duration of 2.90. The portfolio generates cash flows monthly from interest, principal amortization and payoffs, which supports the Bank's liquidity. Those cash flows totaled $73.4 million and $84.2 million in the first quarter of 2026 and the fourth quarter of 2025, respectively.
Deposits
Deposits increased $12.6 million, or 0.4%, to $3.428 billion at March 31, 2026, compared to $3.416 billion at December 31, 2025 primarily due to inflows from existing relationships as well as new relationships. The majority of this increase was due to an increase of $58.3 million in interest bearing transaction accounts, partially offset by a decrease of $22.2 million in non-interest bearing deposits and a decrease of $25.6 million in time accounts. This growth excludes the additional $27.3 million in deposits the Bank maintains off balance sheet as one-way sales. As of March 31, 2026, total one-way sales increased from $51.2 million to $78.5 million. The majority of the decrease in non-interest bearing deposits aligns with one anticipated client event while the decrease in time accounts reflects prudent management of the Bank's cost of deposits. Non-interest bearing deposits continued to make up a strong 35.9% of total deposits at March 31, 2026, compared to 36.7% at December 31, 2025. The Bank's competitive and balanced approach to relationship management and focused outreach to customers seeking alternative options for banking solutions generated nearly 1,000 new accounts during the first quarter, 42% of which were new relationships.
Borrowings and Liquidity
At March 31, 2026, the Bank had no outstanding short-term borrowings, consistent with December 31, 2025. Net available funding sources, including unrestricted cash, unencumbered available-for-sale securities and total available borrowing capacity totaled $2.185 billion, or 64% of total deposits and 221% of estimated uninsured and/or uncollateralized deposits as of March 31, 2026. Additionally, as part of our active balance sheet management, the Bank maintained $78.5 million in deposits off-balance sheet with deposit networks at March 31, 2026, compared to $51.2 million at December 31, 2025.
4
The following table details the components of our contingent liquidity sources as of March 31, 2026.
(in millions) Total Available Amount Used Net Availability
Internal Sources
Unrestricted cash 1
$ 215.8 $ — $ 215.8
Unencumbered securities at market value 527.7 — 527.7
External Sources
FHLB line of credit 976.1 — 976.1
FRB line of credit 325.4 — 325.4
Lines of credit at correspondent banks 140.0 — 140.0
Total Liquidity $ 2,185.0 $ — $ 2,185.0
1 Excludes cash items in transit as of March 31, 2026.
Note: Off-balance sheet one-way sell deposits totaling $78.5 million not included above.
Subordinated Notes
During the fourth quarter of 2025, Bancorp issued Fixed-to-Floating Subordinated Notes of $45.0 million with a final maturity date of December 1, 2035, to certain investors in a private placement to strengthen capital ratios as part of the balance sheet repositioning. The interest rate of the Bank’s subordinated notes is 6.75%, payable semi-annually in arrears on June 1 and December 1 of each year, commencing on June 1, 2026. After December 1, 2030, the interest rate will be variable and equal Three-Month Term SOFR plus 335 basis points, resetting quarterly. Subordinated notes outstanding were $43.9 million, net of issuance costs, at March 31, 2026.
Capital Resources
Our capital ratios are summarized in the table below.
Capital Ratios
March 31, 2026 December 31, 2025 March 31, 2025
(dollars in thousands)
Bancorp
Bank
Bancorp
Bank
Bancorp
Bank
Common Equity Tier 1 to RWA 12.61 % 13.17 % 12.34 % 12.69 % 16.69 % 16.54 %
Total Tier I to RWA 12.61 % 13.17 % 12.34 % 12.69 % 15.49 % 15.32 %
Total Capital to RWA 15.26 % 14.09 % 15.25 % 13.90 % 10.62 % 10.46 %
Tier I Leverage Ratio to Avg Assets 8.23 % 8.59 % 8.26 % 8.49 % 15.49 % 15.32 %
Tangible Common Equity to TA 8.33 % 8.70 % 8.35 % 8.59 % 8.35 % 8.59 %
Bancorp's tangible common equity to tangible assets ("TCE ratio") was 8.33% at March 31, 2026, compared to 8.35% at December 31, 2025. The Bank's capital plan and point-in-time capital stress tests indicate that capital ratios will remain above regulatory well-capitalized and internal policy minimums throughout a five-year forecast horizon and across stress scenarios such as additional unrealized losses on the investment portfolio, additional deposit growth or decline, loan credit quality deterioration, and potential share repurchases.
Earnings
Net Interest Income
Net interest income totaled $30.3 million for the first quarter of 2026, a $521 thousand increase from the prior quarter. This was driven by an increase of $63.4 million in average earning assets including a $42.5 million increase in average investment securities, combined with a 45 basis point increase in average yield on investment securities, resulting in a $1.9 million increase in investment securities interest income.
The tax-equivalent net interest margin increased 6 basis points to 3.24% for the first quarter of 2026, compared to 3.18% for the prior quarter. The repositioning of securities added 21 basis points to the margin during the first quarter. This was partially offset by lower average interest-earning deposit balances at the Federal Reserve Bank and lower rates due to Federal Reserve rate cuts of 25 basis points in both October and December of 2025, that decreased the margin by 4 basis points, lower average loan yields during the quarter impacted by an interest recovery in the fourth quarter of $667 thousand and by approximately $195 million in loans tied to prime or SOFR
5
whose rates declined quarter over quarter that decreased the margin by 5 basis points, and average subordinated note costs for the full quarter that decreased the margin by 5 basis points.
Non-Interest Income (Loss)
Non-interest income was $3.8 million for the first quarter of 2026, compared to a net non-interest loss of $66.6 million for the prior quarter. The increase of $70.5 million from the prior quarter was primarily attributable to a loss of $69.5 million on the sale of available-for-sale investment securities during the prior quarter. Excluding the loss on sale, prior quarter non-interest income was $2.8 million. The $1.0 million increase in the first quarter of 2026 on a non-GAAP basis was primarily attributed to an increase of $484 thousand in dividend income on FHLB stock which included a $479 thousand special dividend and a $479 thousand death benefit on bank owned life insurance.
Non-Interest Expense
Non-interest expense totaled $22.5 million for the first quarter of 2026, compared to $20.0 million for the prior quarter, an increase of $2.5 million, primarily driven by an increase of $2.0 million in salaries and related benefits expense in the first quarter of 2026. Consistent with annual adjustments and our compensation cycle, expense increases included updated incentive bonus accruals, 401(k) contribution matching, profit sharing accruals, payroll taxes, and stock-based compensation grants, in addition to lower deferred loan origination costs in the quarter. Additionally, the bank completed the bulk of its anticipated 2026 charitable giving during the first quarter resulting in $437 thousand in expense.
Statement Regarding use of Non-GAAP Financial Measures
Financial results are presented in accordance with GAAP and with reference to certain non-GAAP financial measures. Management believes that providing selected financial measures that exclude the loss on sale of securities is useful to investors as the strategic short-term loss taken for long-term profitability makes the operational performance difficult to compare to other periods. Because there are limits to the usefulness of this or any other non-GAAP measure to investors, Bancorp encourages readers to consider its annual and quarterly consolidated financial statements and notes related thereto for their entirety, as filed with the Securities and Exchange Commission, and not to rely on any single financial measure. A reconciliation of the GAAP financial measures to comparable non-GAAP financial measures is presented below.
6
Reconciliation of GAAP and Non-GAAP Financial Measures
(in thousands, except per share amounts; unaudited)
Three months ended
Pre-tax, pre-provision net income (loss)
March 31, 2026 December 31, 2025 March 31, 2025
Income (loss) before provision for (benefit from) income taxes
$ 11,597 $ (57,375) $ 6,481
Provision for credit losses on loans — 485 75
Pre-tax, pre-provision net income (loss) (GAAP)
11,597 (56,890) 6,556
Adjustments:
Losses (gains) on sale of investment securities from portfolio repositioning — 69,466 —
Comparable pre-tax, pre-provision net income (non-GAAP)
$ 11,597 $ 12,576 $ 6,556
Net (loss) income
Net income (loss) (GAAP)
$ 8,510 $ (39,541) $ 4,876
Adjustments:
Losses (gains) on sale of investment securities from portfolio repositioning — 69,466 —
Related income tax benefit1
— (20,534) —
Adjustments, net of taxes — 48,932 —
Comparable net income (non-GAAP) $ 8,510 $ 9,391 $ 4,876
Diluted earnings (loss) per share
Weighted average diluted shares 15,973 15,898 16,002
Diluted earnings (loss) per share (GAAP)
$ 0.53 $ (2.49) $ 0.30
Comparable diluted earnings per share (non-GAAP) $ 0.53 $ 0.59 $ 0.30
Return on average assets
Average assets $ 3,989,253 $ 3,926,118 $ 3,728,066
Return on average assets (GAAP) 0.87 % (4.00) % 0.53 %
Comparable return on average assets (non-GAAP) 0.87 % 0.95 % 0.53 %
Return on average equity
Average stockholders' equity 398,017 426,394 437,176
Return on average equity (GAAP) 8.67 % (36.54) % 4.52 %
Comparable return on average equity (non-GAAP) 8.67 % 8.74 % 4.52 %
Return on average tangible common equity
Average goodwill and intangibles 74,591 74,789 75,443
Average tangible common equity 323,426 351,605 361,733
Return on average tangible common equity (GAAP) 10.67 % (44.62) % 5.47 %
Comparable return on average tangible common equity (non-GAAP) 10.67 % 10.60 % 5.47 %
Efficiency ratio
Non-interest expense $ 22,539 $ 20,023 $ 20,446
Net interest income $ 30,302 $ 29,781 $ 24,128
Non-interest income (GAAP) $ 3,834 $ (66,648) $ 2,874
Losses (gains) on sale of investment securities from portfolio repositioning — 69,466 —
Non-interest income (non-GAAP) $ 3,834 $ 2,818 $ 2,874
Efficiency ratio (GAAP) 66.03 % (54.31) % 75.72 %
Comparable efficiency ratio (non-GAAP) 66.03 % 61.42 % 75.72 %
1Related tax benefit calculated using blended statutory rate of 29.5636%
Share Repurchase Program
On July 24, 2025, the Board of Directors authorized the repurchase of up to $25.0 million of its common stock effective July 24, 2025 through July 31, 2027. There were no repurchases in the first quarter of 2026 or in the fourth quarter of 2025.
Earnings Call and Webcast Information
Bank of Marin Bancorp (Nasdaq: BMRC) will present its first quarter financial results call via webcast on Monday, April 27, 2026 at 8:30 a.m. PT/11:30 a.m. ET. Investors can listen to the webcast online through Bank of Marin’s website at www.bankofmarin.com. under “Investor Relations.” To listen to the live call, please go to the website at
7
least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available at the same website location shortly after the call. Closed captioning will be available during the live webcast, as well as on the webcast replay.
About Bank of Marin Bancorp
Founded in 1990 and headquartered in Novato, Bank of Marin is the wholly owned subsidiary of Bank of Marin Bancorp (Nasdaq: BMRC). A leading business and community bank with assets of $3.9 billion, Bank of Marin provides commercial and personal banking, specialty lending, and wealth management and trust services throughout its network of 27 branches and eight commercial banking offices serving Northern California. Specializing in providing legendary service to its clients and investing in its local communities, Bank of Marin has consistently been ranked one of the “Top Corporate Philanthropists" by San Francisco Business Times since 2003 and ranked top 13 in Sacramento Business Journal’s 2025 Corporate Direct Giving List. Additional honors include being recognized as one of North Bay Business Journal’s “Best Places to Work” in 2025 and induction into North Bay Biz’s “Best of” Hall of Fame in 2024. Bank of Marin Bancorp is included in the Russell 2000 Small-Cap Index and Nasdaq ABA Community Bank Index. For more information, visit www.bankofmarin.com.
Forward-Looking Statements
This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact Bancorp's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions and the economic uncertainty in the United States and abroad, including economic or other disruptions to financial markets caused by the Trump administration's approach to tariffs and trade and the military action in Iran, acts of terrorism, war or other conflicts, impacts from inflation, supply chain disruptions, changes in interest rates (including the actions taken by the Federal Reserve to control inflation), California's unemployment rate, deposit flows, real estate values, and expected future cash flows on loans and securities; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks; costs or effects of acquisitions; competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; natural disasters (such as wildfires and earthquakes in our area); adverse weather conditions; interruptions of utility service in our markets for sustained periods; and other economic, competitive, governmental, regulatory and technological factors (including external fraud and cybersecurity threats) affecting our operations, pricing, products and services; and successful integration of acquisitions. These and other important factors are detailed in various securities law filings made periodically by Bancorp, copies of which are available from Bancorp without charge. Bancorp undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
8
BANK OF MARIN BANCORP FINANCIAL HIGHLIGHTS
Three months ended
(in thousands, except per share amounts; unaudited) March 31, 2026 December 31, 2025 March 31, 2025
Selected operating data and performance ratios:
Net income (loss) $ 8,510 $ (39,541) $ 4,876
Diluted earnings (loss) per common share $ 0.53 $ (2.49) $ 0.30
Return on average assets 0.87 % (4.00) % 0.53 %
Return on average equity 8.67 % (36.79) % 4.52 %
Return on tangible common equity 10.67 % (44.62) % 5.47 %
Efficiency ratio 66.03 % (54.31) % 75.18 %
Tax-equivalent net interest margin
3.24 % 3.18 % 2.70 %
Cost of deposits 1.35 % 1.35 % 1.46 %
Cost of funds 1.43 % 1.38 % 1.46 %
Net charge-offs (recoveries) $ 7,266 $ 64 $ —
Net charge-offs to average loans 0.34 % NM NM
(in thousands; unaudited) March 31, 2026 December 31, 2025
Selected financial condition data:
Total assets $ 3,914,117 $ 3,904,778
Loans:
Commercial and industrial $ 159,028 $ 159,898
Real estate:
Commercial owner-occupied 308,905 310,219
Commercial non-owner occupied 1,373,332 1,366,251
Construction 14,215 15,101
Home equity 98,445 99,222
Other residential 105,502 110,614
Installment and other consumer loans 56,292 59,548
Total loans $ 2,115,719 $ 2,120,853
Non-accrual loans: 1
Commercial and industrial $ 29 $ 524
Real estate:
Commercial owner-occupied — 315
Commercial non-owner occupied 8,118 25,387
Home equity 223 401
Other residential 70 72
Installment and other consumer loans 204 204
Total non-accrual loans $ 8,644 $ 26,903
Non-accrual loans to total loans 0.41 % 1.27 %
Classified loans (graded substandard and doubtful) $ 17,939 $ 32,111
Classified loans as a percentage of total loans 0.85 % 1.51 %
Total accruing loans 30-89 days past due $ 683 $ 2,843
Total accruing loans 90+ days past due 1
$ — $ —
Allowance for credit losses to total loans 1.08 % 1.42 %
Allowance for credit losses to non-accrual loans 2.64x 1.12x
Total deposits $ 3,428,126 $ 3,415,542
Loan-to-deposit ratio 61.72 % 62.09 %
Stockholders' equity $ 394,492 $ 394,654
Book value per share $ 24.37 $ 24.51
Tangible book value per share
$ 19.77 $ 19.87
Tangible common equity to tangible assets - Bank
8.70 % 8.59 %
Tangible common equity to tangible assets - Bancorp
8.33 % 8.35 %
Total risk-based capital ratio - Bank 14.09 % 13.90 %
Total risk-based capital ratio - Bancorp 15.26 % 15.25 %
Full-time equivalent employees 309 311
1 There were no non-performing loans over 90 days past due and accruing interest as of March 31, 2026 and December 31, 2025.
9
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data; unaudited) March 31, 2026 December 31, 2025
Assets
Cash, cash equivalents and restricted cash $ 236,644 $ 225,303
Investment securities:
Available-for-sale (net of zero allowance for credit losses at March 31, 2026 and December 31, 2025, respectively)
1,326,191 1,327,812
Total investment securities 1,326,191 1,327,812
Loans, at amortized cost 2,115,719 2,120,853
Allowance for credit losses on loans (22,823) (30,089)
Loans, net of allowance for credit losses on loans 2,092,896 2,090,764
Goodwill 72,754 72,754
Bank-owned life insurance 71,095 71,306
Operating lease right-of-use assets 22,173 22,499
Bank premises and equipment, net 7,960 8,059
Core deposit intangible, net 1,716 1,916
Interest receivable and other assets 82,688 84,365
Total assets $ 3,914,117 $ 3,904,778
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing $ 1,232,228 $ 1,254,416
Interest bearing:
Transaction accounts 475,817 417,482
Savings accounts 226,680 232,109
Money market accounts 1,313,266 1,305,849
Time accounts 180,135 205,686
Total deposits 3,428,126 3,415,542
Borrowings and other obligations 668 709
Subordinated notes, net 43,905 43,857
Operating lease liabilities 24,553 24,747
Interest payable and other liabilities 22,373 25,269
Total liabilities 3,519,625 3,510,124
Stockholders' Equity
Preferred stock, no par value,
Authorized - 5,000,000 shares, none issued
— —
Common stock, no par value,
Authorized - 30,000,000 shares; issued and outstanding - 16,189,707, 16,102,687 and
16,102,687 at March 31, 2026, December 31, 2025 and December 31, 2025, respectively
215,648 214,910
Retained earnings 202,645 198,163
Accumulated other comprehensive loss, net of taxes (23,801) (18,419)
Total stockholders' equity 394,492 394,654
Total liabilities and stockholders' equity $ 3,914,117 $ 3,904,778
10
BANK OF MARIN BANCORP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three months ended
(in thousands, except per share amounts; unaudited) March 31, 2026 December 31, 2025 March 31, 2025
Interest income
Interest and fees on loans $ 26,534 $ 27,128 $ 25,183
Interest on investment securities 13,869 11,937 8,261
Interest on due from banks 2,392 2,767 1,795
Total interest income 42,795 41,832 35,239
Interest expense
Interest on interest-bearing transaction accounts 2,039 1,591 1,161
Interest on savings accounts 577 609 533
Interest on money market accounts 7,821 7,961 7,626
Interest on time accounts 1,242 1,516 1,790
Interest on borrowings and other obligations 6 6 1
Interest on subordinated notes 808 368 —
Total interest expense 12,493 12,051 11,111
Net interest income 30,302 29,781 24,128
Provision for credit losses on loans — 300 75
Provision for credit losses on unfunded loan commitments — 185 —
Net interest income after provision for credit losses 30,302 29,296 24,053
Non-interest income
Dividends on Federal Home Loan Bank stock 855 372 375
Wealth management and trust services 596 573 563
Service charges on deposit accounts 563 543 548
Earnings on bank-owned life insurance, net 488 440 476
Earnings on bank-owned life insurance death benefits 479 — 68
Debit card interchange fees, net 362 401 396
Merchant interchange fees, net 118 104 96
Losses on sale of investment securities — (69,466) —
Other income 373 385 352
Total non-interest income 3,834 (66,648) 2,874
Non-interest expense
Salaries and related benefits 13,394 11,359 12,050
Occupancy and equipment 2,099 2,098 2,106
Data processing 1,228 1,033 1,136
Professional services 1,093 1,341 937
Federal Deposit Insurance Corporation insurance 730 539 388
Information technology 515 532 413
Charitable contributions 437 82 403
Directors' expense 285 283 304
Depreciation and amortization 263 331 322
Amortization of core deposit intangible 201 211 227
Deposit network fees 149 127 114
Other expense 2,145 2,087 2,046
Total non-interest expense 22,539 20,023 20,446
Income (loss) before provision for (benefit from) income taxes 11,597 (57,375) 6,481
Provision for (benefit from) income taxes 3,087 (17,834) 1,605
Net income (loss) $ 8,510 $ (39,541) $ 4,876
Net income (loss) per common share
Basic $ 0.53 $ (2.49) $ 0.31
Diluted $ 0.53 $ (2.49) $ 0.30
Weighted average shares:
Basic 15,925 15,898 15,977
Diluted 15,973 15,898 16,002
Comprehensive income (loss):
Net income (loss) $ 8,510 $ (39,541) $ 4,876
Other comprehensive (loss) income:
Change in net unrealized (losses) gains on available-for-sale securities (7,642) 4,933 3,289
Reclassification adjustment for losses realized on the sale of available-for-sale securities in net loss — 69,466 —
Net unrealized losses on securities transferred from available-for-sale to held-to-maturity — (92,842) —
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity — 9,867 340
Other comprehensive (loss) income, before tax (7,642) (8,576) 3,629
Deferred tax (benefit) expense (2,260) (2,533) 1,073
Other comprehensive (loss) income, net of tax (5,382) (6,043) 2,556
Total comprehensive income (loss) $ 3,128 $ (45,584) $ 7,432
11
BANK OF MARIN BANCORP
AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST INCOME
Three months ended Three months ended Three months ended
March 31, 2026 December 31, 2025 March 31, 2025
Interest Interest Interest
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
(in thousands) Balance Expense Rate Balance Expense Rate Balance Expense Rate
Assets
Interest-earning deposits with banks 1
$ 265,720 $ 2,392 3.60 % $ 278,508 $ 2,767 3.89 % $ 163,446 $ 1,795 4.39 %
Investment securities 2, 3
1,374,555 13,906 4.05 % 1,332,104 11,988 3.60 % 1,273,422 8,330 2.62 %
Loans 1, 3, 4, 5
2,114,052 26,646 5.04 % 2,080,328 27,252 5.13 % 2,073,739 25,289 4.88 %
Total interest-earning assets 1
3,754,327 42,944 4.58 % 3,690,940 42,007 4.45 % 3,510,607 35,414 4.04 %
Cash and non-interest-bearing due from banks 32,496 39,133 37,493
Bank premises and equipment, net 8,007 8,192 6,831
Interest receivable and other assets, net 194,423 187,853 173,135
Total assets $ 3,989,253 $ 3,926,118 $ 3,728,066
Liabilities and Stockholders' Equity
Interest-bearing transaction accounts $ 464,323 $ 2,039 1.78 % $ 398,492 $ 1,591 1.58 % $ 337,255 $ 1,161 1.40 %
Savings accounts 228,635 577 1.02 % 226,349 609 1.07 % 227,097 533 0.95 %
Money market accounts 1,367,142 7,821 2.32 % 1,311,542 7,961 2.41 % 1,192,956 7,626 2.59 %
Time accounts including CDARS 192,553 1,242 2.62 % 210,310 1,516 2.86 % 228,018 1,790 3.18 %
Borrowings and other obligations 1
683 6 3.66 % 726 6 3.62 % 130 1 2.86 %
Subordinated notes, net 43,873 808 7.36 % 20,588 368 7.16 % — — — %
Total interest-bearing liabilities 2,297,209 12,493 2.21 % 2,168,007 12,051 2.21 % 1,985,456 11,111 2.27 %
Demand accounts 1,244,595 1,285,578 1,260,482
Interest payable and other liabilities 49,432 46,139 44,952
Stockholders' equity 398,017 426,394 437,176
Total liabilities & stockholders' equity $ 3,989,253 $ 3,926,118 $ 3,728,066
Tax-equivalent net interest income/margin 1
$ 30,451 3.24 % $ 29,956 3.18 % $ 24.304 2.77 %
Reported net interest income/margin 1
$ 30,302 3.23 % $ 29,781 3.16 % $ 24,128 2.75 %
Tax-equivalent net interest rate spread 2.37 % 2.23 % 1.77 %
1 Interest income/expense is divided by actual number of days in the period times 360 days to correspond to stated interest rate terms, where applicable.
2 Yields on available-for-sale securities are calculated based on amortized cost balances rather than fair value, as changes in fair value are reflected as a component of stockholders' equity. Investment security interest is earned on 30/360 day basis monthly.
3 Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the Federal statutory rate of 21 percent.
4 Average balances on loans outstanding include non-performing loans. The amortized portion of net loan origination fees is included in interest income on loans, representing an adjustment to the yield.
5 Net loan origination costs in interest income totaled $398 thousand, $452 thousand, and $364 thousand for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.
12
EX-99.2
EX-99.2
Filename: bmrc-q12026earningsinves.htm · Sequence: 3
bmrc-q12026earningsinves
First Quarter 2026 Results A p r i l 2 7 , 2 0 2 6
2 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Forward-Looking Statements This discussion of financial results includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "1933 Act") and Section 21E of the Securities Exchange Act of 1934, as amended, (the "1934 Act"). Those sections of the 1933 Act and 1934 Act provide a "safe harbor" for forward-looking statements to encourage companies to provide prospective information about their financial performance so long as they provide meaningful, cautionary statements identifying important factors that could cause actual results to differ significantly from projected results. Our forward-looking statements include descriptions of plans or objectives of management for future operations, products or services, and forecasts of revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "intend," "estimate" or words of similar meaning, or future or conditional verbs preceded by "will," "would," "should," "could" or "may." Forward-looking statements are based on management's current expectations regarding economic, legislative, and regulatory issues that may affect our earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, the preliminary nature of certain adjustments to prior financial statements disclosed in an 8-K filed by the Company on February 24, 2026 and the Form 10-K filed by the Company on March 13, 2026 and included in this presentation, general economic conditions and the economic uncertainty in the United States and abroad, including economic or other disruptions to financial markets caused by the Trump administration's approach to tariffs and trade, acts of terrorism, war, impacts from inflation, supply chain disruptions, changes in interest rates (including the actions taken by the Federal Reserve to control inflation), California's unemployment rate, deposit flows, real estate values, and expected future cash flows on loans and securities; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks; costs or effects of acquisitions; competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; natural disasters (such as wildfires and earthquakes in our area); adverse weather conditions; interruptions of utility service in our markets for sustained periods; and other economic, competitive, governmental, regulatory and technological factors (including external fraud and cybersecurity threats) affecting our operations, pricing, products and services; and successful integration of acquisitions. These and other important factors detailed in various securities law filings made periodically by Bancorp, copies of which are available from us at no charge. Forward-looking statements speak only as of the date they are made. Bancorp undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this press release or to reflect the occurrence of unanticipated events. GAAP to Non-GAAP Financial Measures This presentation includes some non-GAAP financial measures as shown in the Appendix of this presentation.
S E C T I O N Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Franchise Highl ights 01
4 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Bank of Marin Bancorp Novato, CA Headquarters BMRC NASDAQ $414.9 Million Market Cap $3.9 Billion Total Assets 3.90% Dividend Yield 15.26% Total Bancorp RBC BMRC AT A GLANCE O P T I O N 2 Data as of 3/31/26 Relationship Banking Build strong, long-term customer relationships based on trust, integrity and expertise, inspiring loyalty though exceptional service. Disciplined Fundamentals Apply a disciplined business approach with sound banking practices, high quality products, and consistent fundamentals ensuring continued strong results. Community Commitment Give back to the communities that we serve through active employee volunteerism, nonprofit board leadership and financial contributions. 27 Branch Locations 8 Commercial Banking Offices
5 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Bob Gotelli EVP, Human Resources Director • 31 years of human resources experience • Joined Bank of Marin in 2000 David Bloom EVP, Head of Commercial Banking • 30 years of commercial banking experience • Joined Bank of Marin in 2023 Tim Myers President and Chief Executive Officer • 27 years of finance and banking experience • Joined Bank of Marin in 2007 Brandi Campbell EVP, Head of Retail Banking • 37 years of banking experience • Joined Bank of Marin in 2019 Sathis Arasadi EVP, Chief Information Officer • 32 years of engineering, technology, and fintech experience • Joined Bank of Marin in 2023 Dave Bonaccorso EVP, Chief Financial Officer • 30 years of financial services experience • Joined Bank of Marin in 2023 Misako Stewart EVP, Chief Credit Officer • 34 years of banking experience • Joined Bank of Marin in 2013 221 Years of Combined Experience Through Various Economic Cycles
6 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 A strategic and disciplined approach to delivering long-term value 01 02 03 04 Grow NON-INTEREST INCOME Scale through EFFICIENCY GAINS and ACQUISITIONS Invest in TALENT and TECHNOLOGY Drive high-quality LOAN GROWTH
7 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 First Quarter 2026 Overview 1 See Reconciliation of Non-GAAP Financial Measures in the Appendix Highlights • Non-accrual and classified loans to total loans declined significantly due to resolution of two non-accrual loans • Newly originated loans were $81MM ($61MM funded) in Q1 (highest Q1 originations since 2015) • Achieved anticipated 21bp increase in net interest margin due to the Q4 2025 repositioning of HTM securities portfolio • Tax-equivalent net interest margin was 3.24% compared to 3.18%1 in the prior quarter, driven by the repositioning of securities in mid-Q4; the month of March tax-equivalent net interest margin was 3.26% • Deposits increased 3.8% from Q1 2025 • Cost of deposits remained at 1.35% Key Operating Trends • Tax-equivalent yield on interest-earning assets increased 13bps in Q1 over Q4 to 4.58% mainly due to higher yields on investment securities • Book value per share was $24.37 and tangible book value per share2 was $19.77 • Non-interest income excluding the Q4 loss on security sales increased $1MM due to special FHLB dividend and BOLI death benefit in Q1 • Non-interest expense increased $2.5MM mostly due to annual adjustments and resets in salaries and related benefits and the Bank's annual charitable giving program that occurs each Q1 Capital • Bancorp total risk-based capital remained strong at 15.26% • Bancorp TCE / TA of 8.33% at 3/31/26 Deposits and Liquidity • Spot rate on deposits at 3/31/26 of 1.31% (interest-bearing 2.05%) declined from the 12/31/25 spot rate of 1.35% (interest-bearing 2.13%) • Non-interest bearing deposits was strong at 35.9% of total deposits • Adjusted cycle-to-date non-maturity interest-bearing deposit beta of 25% as of 3/31/26 • Immediately available net funding of $2.185B Credit Quality • Resolved two non-accrual loans through sale; resulting partial charge-offs were fully covered by the specific reserves in place already and no income statement effect • Non-accrual loans decreased to 0.41% of total loans from 1.27% in the prior quarter • Classified loans decreased to 0.85% of total loans in Q1 from 1.51% in the prior quarter
8 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Focused on Building Long-Term Shareholder Value Strong Core Deposit Franchise Largest community bank in Marin County with 11.4% market share 1 35.9% non-interest bearing deposits with a 1.35% cost of deposits in Q1 Improving Margin Outlook ▪ prior quarter investment securities repositioning continuing to expand margin ▪ continued loan growth excluding loan sales ▪ targeted deposit cost reductions continued in Q1 Seasoned Risk Management Classified loans as a percentage of loans decreased 66bps quarter over quarter Non-accrual loans as a percentage of loans decreased 86bps quarter over quarter Low NOO CRE office exposure in the City of San Francisco at 2% of total loans (3% of total NOO-CRE) and a weighted average 61% LTV Prudent Loan Growth Markets with proven track record of organic growth Organic originations at historical high for Q1 since 2015 Key opportunistic relationship banking talent acquisitions 61.72% loan-to-deposit ratio provides runway for additional growth Robust Capital Levels & Liquidity Regulatory capital ratios remain comfortably above “well-capitalized” thresholds $2.2 billion in available liquidity 1Source: S&P Global Market Intelligence - FDIC deposit market share data as of June 30, 2025 2 Please refer to the Form 8-K filed February 24, 2026 regarding adjustments to data disclosed on January 26, 2026, and to the Form 10-K filed on March 13, 2026.
9 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Focused on delivering Long-Term, Consistent Growth ▪ Proven ability to grow both organically and through M&A ▪ Consistent cash dividend provides stable and reliable return for shareholders Note: Tangible book value per share (TBVPS) equals total shareholders’ equity, less intangible assets including goodwill and core deposit intangibles, divided by outstanding common shares at period end. Accumulated other comprehensive income (AOCI) represents the unrealized gains (losses) on available-for-sale securities, net of tax. Components of these calculations were derived from our financial reports filed with the SEC for each respective period. Additional information for March 31, 2026 can be found in the Reconciliation of Non-GAAP Financial Measures in the Appendix. Tangible Book Value Per Share and Cumulative Cash Dividends $0.77 $1.22 $1.73 $2.29 $2.92 $3.72 $4.64 $5.58 $6.56 $7.56 $8.56 $9.56 $10.56 $15.98 $16.88 $18.08 $18.81 $20.28 $22.24 $24.02 $23.29 $20.85 $22.44 $22.37 $19.87 $19.77 Cumulative Cash Dividends TBVPS TBVPS (Excl AOCI) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1Q26 $— $5.00 $10.00 $15.00 $20.00 $25.00 $30.00
10 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Robust Capital Ratios As of 3/31/26 The Bank's capital plan and point-in- time capital stress tests indicate that capital ratios will remain above regulatory well-capitalized and internal policy minimums throughout a five-year forecast horizon and across stress scenarios such as additional unrealized losses on the investment portfolio, additional deposit growth or decline, loan credit quality deterioration, and potential share repurchases. * See Reconciliation of Non-GAAP Financial Measures in the Appendix. 6.5% 8.0% 10.0% 5.0% 13.2% 13.2% 14.1% 8.6% 8.7% 12.6% 12.6% 15.3% 8.2% 8.3% Well Capitalized Threshold Bank of Marin Bank of Marin Bancorp Common Equity Tier- One Risk-Based Capital Total Tier-One Risk- Based Capital Total Risk-Based Capital Tier-One Leverage Tangible Common Equity
Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 S E C T I O N Balance Sheet Highl ights 02
12 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Strong Deposit Franchise • Deposit mix continues to favor a high percentage of non-interest bearing deposits totaling 35.9%, highlighting our relationship banking model • Total cost of deposits was 1.35% (interest-bearing 2.10%) for 1Q'26 and 1.35% (interest-bearing 2.16%) for the prior quarter • Spot rate was 1.31% (interest-bearing 2.05%) as of March 31, 2026, compared to 1.35% (interest-bearing 2.16%) as of December 31, 2025 • The Bank continued strategic pricing adjustments with limited rate related outflows Total Deposit Mix at 1Q'26Total Deposits ($ in millions) $2,504 $3,808 $3,574 $3,290 $3,416 $3,428 $1,538 $2,201 $2,127 $1,667 $1,672 $1,708 $869 $1,457 $1,328 $1,372 $1,538 $1,540$97 $150 $119 $251 $206 $180 Transaction Savings & MMDA Time 2021 2022 2023 2024 2025 2026 Non-Interest Bearing Transaction 35.9% Interest Bearing Transaction 13.9% S avings 6.6% Money Market 38.3% Time 5.3% $3.43B
13 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 • 42% of new accounts consisted of new relationships to the Bank by count • 62% of new accounts were non-interest bearing by count • Average weighted cost for all new interest bearing accounts at 1.22% (new funds) and 1.32% (new relationships) • Reciprocal deposit network program (expanded FDIC insurance products) utilization increased by $81.6 million New Accounts Mix (by count) 1Q'26Granular Deposit Account Composition Existing Relationships - New $ 20% Account Migration 38% New Relationships 42% 994 (in thousands; except for # of Accounts) Interest Bearing Non-Interest Bearing Total Consumer Account Balances $ 938,275 $ 328,594 $ 1,266,869 # of Accounts 13,976 17,089 31,065 Avg Balance Per Account $ 67 $ 19 $ 41 Business Account Balances $ 947,943 $ 1,207,715 $ 2,155,658 # of Accounts 3,751 10,986 14,737 Avg Balance Per Account $ 253 $ 110 $ 146 *Excludes internal operating accounts such as holding company cash and deposit settlement accounts totaling $5.6 million Deposit Accounts Mix - Consumer vs Business 1Q'261
14 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Strong Liquidity: $2.2 Billion in Net Availability • The Bank has long-established minimum liquidity requirements regularly monitored using metrics and tools similar to larger banks, such as the liquidity coverage ratio and multi-scenario, long-horizon stress tests • Deposit outflow assumptions for liquidity monitoring and stress testing are conservative relative to actual experience At March 31, 2026 ($ in millions) Total Available Amount Used Net Availability Internal Sources Unrestricted Cash 1 $ 215.8 N/A $ 215.8 Unencumbered Securities 527.7 N/A 527.7 External Sources FHLB line of credit 976.1 — 976.1 FRB line of credit 325.4 — 325.4 Lines of credit at correspondent banks 140.0 — 140.0 Total Liquidity $ 2,185.0 $ — $ 2,185.0 1 Excludes cash items in transit Note: Off-balance sheet one-way sell deposits totaling $51.2 million available through third-party networks are not included above. Liquidity & Uninsured Deposits ($ in millions) 2.2x Coverage Ratio $2,185.0 $1,022.7 Liquidity Est. Uninsured and/or Uncollateralized Deposits
15 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 • Loan fundings in Q1 were $60.8 million ($80.5 million total commitments) which is the highest first quarter since 2015 • Notable pipeline growth and diversification from key hires, compensation program enhancements, and calling programs • Sound underwriting produces a high- quality loan portfolio with low credit costs and stable earnings through cycles • Extending credit and serving the needs of existing clients while ensuring new opportunities present the appropriate levels of risk and return Prudent, Sustainable Model for Loan Growth $2.089 $2.256 $2.093 $2.074 $2.083 $2.121 $2.116 4.15% 4.23% 4.29% 4.65% 4.83% 4.99% 5.04% Non-PPP Loans SBA PPP Loans Average Annual TE Yield on Loans 2020 2021 2022 2023 2024 2025 2026 Total Loans ($ in billions) 1Includes American River Bank loans acquired in 3Q21 1
16 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Well-diversified Loan Portfolio As of 3/31/26 - No material changes from 4Q'25 • Loan portfolio is well-diversified across borrowers, industries, loan and property types within our geographic footprint • 88% of all loans and 93% of loans excluding nonprofit organizations are guaranteed by owners of the borrowing entities • Non-owner occupied commercial real estate is well-diversified by property type with 89% of loans (90% of loans excluding nonprofit organizations) being guaranteed by owners of the borrowing entities • Since 2001, net charge-offs for all NOO CRE and OO CRE totals $9.7 million • Construction loans represent a small portion of the overall portfolio OO-C R E 15% C &I 8% C onsumer 12% C onstruction 1% NOO-C R E 64% 1Q'26 Total Loans $2.1B Office 26% Mixed Use 7% Retail 18% Warehouse & Industrial 13% Multi-F amily 18% Other 18% 1Q'26 Total NOO-CRE Loans $1.4B
17 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Low Refinance Risk in NOO CRE Portfolio through 2027 • We conducted a DEEP DIVE on loans maturing or repricing before year-end 2027 * • PORTFOLIO IS WELL-POSITIONED TO ABSORB A HIGHER RATE ENVIRONMENT AT MATURITY OR REPRICING DATE • Wtd. Avg. DSC Assumptions for Maturing Loans: Current Treasury Constant Maturity rate + spread of 3.00%, fully drawn commercial real estate lines of credit, 25-year amortization • Wtd. Avg. DSC Assumptions for Repricing Loans: Current market interest rate + contractual spread, fully drawn commercial real estate lines of credit, remaining amortization on each loan Maturing Loan Commitments > $1.0MM # of loans Commitment Outstanding Balance Wtd. Avg. Rate Wtd. Avg. DSC 2026 25 $82.8MM $75.8MM 4.90 1.49x 2027 26 $75.0MM $71.9MM 4.61% 1.42x TOTAL 51 $157.8MM $147.7MM Repricing Loan Commitments > $1.0MM # of loans Commitment Outstanding Balance Wtd. Avg. Rate Wtd. Avg. DSC 2026 19 $46.6MM $46.6MM 3.94% 1.53x 2027 16 $40.5MM $40.5MM 3.75% 1.44x TOTAL 35 $87.1MM $87.1MM *Commitments, outstanding balances and weighted average rates as of 3/31/26
18 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 • $354 million in credit exposure spread across our lending footprint comprised of 146 loans • $2.4 million average loan balance – largest loan at $15.4 million • 61% weighted average loan-to-value and 1.67x weighted average debt-service coverage ratio* • City of San Francisco NOO CRE office exposure is 2% of total loan portfolio and 3% of total NOO CRE loans NOO CRE Office Portfolio by County * Calculated for loans exceeding $1 million, based on the most recent annual review process, and net of individual reserves Non-owner Occupied Office Exposure As of 3/31/26 - No material changes from 4Q'25 San Francisco 12% Alameda 8% Sacramento 5% Napa 8% Other Bay Area 19%Other 4% Marin 25% Sonoma 19% $354MM City of S.F. NOO CRE Office Portfolio Total Balance: $41.9 million Average Loan Bal: $5.2 million Number of Loans: 10 loans Wtd. Average LTV*: 61% Wtd. Average DCR: 1.68x Average Occupancy: 92% All loans are secured by low rise buildings
19 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 *Calculated for loans exceeding $1 million, based on the most recent annual review process Note: Sacramento includes surrounding regional counties NOO CRE Portfolio Diversified Across Property Type & County As of 3/31/26 - No material changes from 4Q'25 Average Balance: $1.8MM Largest Balance: $13.3MM Total # of Loans: 138 Wtd. Avg. LTV*: 58% Average Balance: $2.1MM Largest Balance: $14.1MM Total # of Loans: 86 Wtd. Avg. LTV*: 48% Average Balance: $2.0MM Largest Balance: $21.0MM Total # of Loans: 128 Wtd. Avg. LTV*: 62% S an F rancisco 2% Alameda 9% S acramento 20% Napa 15%Other Bay Area 15% Other 7% Marin 16% S onoma 16% S an F rancisco 9%Alameda 14% S acramento 26% Napa 7% Other Bay Area 7% Other 4% Marin 8% S onoma 25% S an F rancisco 18% Alameda 21% S acramento 21% Napa 4% Other Bay Area 4% Other 8% Marin 9% S onoma 15% Retail 1Q'26 Warehouse & Industrial 1Q'26 Multifamily 1Q'26 $248MM $178MM $252MM
20 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 ($ in millions at Fair Value) * Loan-to-value largely based on appraised values at origination, or updated appraisals for certain classified loans, and balances as of 3/31/26 Owner-Occupied CRE Portfolio As of 3/31/26 - No material changes from 4Q'25 Retail 9% S chool 5% 1-4 R esidential 3% Wine 7% C hurch 8% Gas/Auto 7% Health C lub 2% Mixed Use 5% Other 1% Office 29% Industrial 24% Napa 17% S acramento 20% S an F rancisco 5% S onoma 8% Other 15% Alameda 14% Marin 21% OO CRE by County 1Q'26 Average Balance: $1.1MM Largest Loan: $14.3MM Wtd. Avg. LTV*: 46% Total Balance: $308.9MM Total Loans: 283 OO CRE by Type 1Q'26 $309MM $309MM Napa 20% Sacramento 23% San Francisco 19% Sonoma 7% Other 3% Alameda 6% Marin 22% Average Balance: $0.7MM Largest Loan: $7.0MM Wtd. Avg. LTV*: 54% Total Balance: $57.8MM Total Loans: 81 OO CRE Office Portfolio by County 1Q'26 $58MM
21 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 ($ in millions at Fair Value) * Loan-to-value largely based on appraised values at origination, or updated appraisals for certain high dollar loans. and balances as of 3/31/26 Figures exclude two loans totaling $1.0 million that, for purposes of LTV, were moved to OO CRE Construction Portfolio Concentrations As of 3/31/26 Construction by Type 1Q'26 Construction by County 1Q'26 Multi-F amily 24% 1-4 R esidential 76% S an F rancisco 55% Other Bay Area 18% Marin 27% Average Balance: $2.1MM Largest Loan: $3.0MM Wtd. Avg. LTV*: 55% Total Balance: $14.2MM Unfunded Commitments: $9.1MM Total Loans: 6 $14MM $14MM
22 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 1 Taxable equivalent 2 Related tax benefit calculated using blended statutory rate of 29.5636% High-Quality Securities Portfolio Generates Cash Flow Data as of 3/31/26 AF S S ecurities Portfolio Agency MBS 44% Agency CMO (Fixed) 11% Agency CMO (Variable) 3% Agency CMBS (Fixed) 25% Agency CMBS (Variable) 11% Debentures of government agencies 2% Municipal Bonds 4% ($ in millions at Fair Value) $1.326B Average Yield1 — 4.05% Approx. Effective Duration — 2.90 Unrealized Losses, net (pre tax) — $7.6 million Unrealized Losses, net (after tax2) — $5.4 million TCE Bancorp — 8.3%
Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 S E C T I O N Income Statement Highl ights 03
24 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 • Linked-quarter NIM increased 6bps due primarily to higher securities yields due to the effects of the 4Q'25 securities repositioning • The month of March tax-equivalent net interest margin was 3.26% • The Bank continues making strategic pricing adjustments, offset in the first quarter by a small number of longstanding customers increasing their balances at relatively higher rates, resulting in a steady cost of deposits of 1.35% in Q1 • Adjusted cycle-to-date non-maturity interest-bearing deposit beta of 25% as of 3/31/26 Net Interest Margin Drivers 3.18% (0.05)% 0.21% (0.05)% —% (0.05)% 3.24% 4Q'25 Loans Securities Cash Deposits Sub- ordinated notes 1Q'26 Net Interest Margin Linked- Quarter Change1 2.45% 2.56% 2.61% 2.42% 2.27% 2.26% 2.26% 2.16% 2.10% 5.50% 5.50% 5.43% 4.82% 4.50% 4.50% 4.46% 4.02% 3.75% IB Deposits Fed Funds 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Avg. Quarterly Cost of IB Deposits1 vs. Fed Funds 1 Please refer to the Form 8-K filed February 24, 2026 regarding adjustments to data disclosed on January 26, 2026 , and to the Form 10-K filed on March 13, 2026. Net Interest Income Simulation 1Q26 Immediate Change in Interest Rates (in bps) Est. Change in NII, as % in Year 1 in Year 2 Up 400bp -0.8 % 11.8 % Up 300bp -0.3 % 9.6 % Up 200bp 0.0 % 6.7 % Up 100bp 0.3 % 4.0 % Rates Unchanged 0.0 % 0.0 % Down 100bp -2.0 % -4.8 % Down 200bp -4.4 % -9.7 % Down 300bp -6.3 % -14.6 % Down 400bp -6.7 % -17.2 % *Please see our 10-Q’s and 10-K’s for more information regarding these simulations.
25 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Loans & Securities — Repricing & Maturity $ in millions, unless otherwise indicated Total Loans1 * at 3/31/2026 Repricing Term Rate Structure 3 mo or less 3-12 mos 1-3 years 3-5 years 5-15 years Over 15 years Total Floating Rate Variable Rate Floating & Variable Rate at Floor Floating & Variable Rate at Ceiling Fixed Rate C&I $67.2 $10.8 $26.6 $38.2 $15.1 $1.1 $159.0 $59.4 $1.6 $13.7 $0.0 $84.3 Real estate: Owner-occupied CRE $12.1 $14.2 $52.9 $69.7 $153.4 $6.6 $308.9 $0.1 $46.5 $82.4 $0.0 $179.9 Non-owner occupied CRE $68.2 $49.9 $279.7 $481.2 $492.7 $1.6 $1,373.3 $8.0 $156.9 $339.7 $0.0 $868.7 Construction $14.2 $0.0 $0.0 $0.0 $0.0 $0.0 $14.2 $7.5 $0.0 $0.0 $0.0 $6.7 Home equity $98.1 $0.0 $0.0 $0.0 $0.4 $0.0 $98.5 $98.1 $0.0 $0.0 $0.0 $0.4 Other residential $6.6 $6.4 $0.4 $0.2 $0.8 $91.1 $105.5 $0.0 $13.4 $82.3 $0.0 $9.8 Installment & other consumer $2.4 $2.2 $4.8 $2.7 $44.1 $0.1 $56.3 $1.2 $7.2 $9.0 $0.0 $38.9 Total $268.8 $83.5 $364.4 $592.0 $706.5 $100.5 $2,115.7 $174.3 $225.6 $527.1 $0.0 $1,188.7 % of Total 13 % 4 % 17 % 28 % 33 % 5 % 100 % 8 % 11 % 25 % — % 56 % Weighted Average Rate 6.69 % 4.99 % 5.37 % 5.09 % 4.75 % 4.34 % 5.18 % 1 Amounts represent amortized cost. Based on maturity date for fixed rate loans and variable rate loans at their floors and ceilings and next repricing date for all other variable rate loans. Does not include prepayment assumptions. Investment Securities2 * at 03/31/2026 2 With prepayment assumptions applied Projected Cash Flow Distribution 3 mo or less 3-12 mos 1-3 years 3-5 years 5-10 years Over 10 years Total Principal (par) & interest $76.0 $168.6 $468.2 $423.5 $367.8 $78.3 $1,582.4 % of Total 5 % 10 % 30 % 27 % 23 % 5 % 100 %
26 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Consistent and diverse sources of non-interest income bolster revenue through cycles Investment in our people, branches and technology provide a runway for future growth Non-interest Income1 ($ in millions) Non-interest Expense ($ in millions) 1See Reconciliation of GAAP to Non-GAAP Financial Measures (Excluding Loss on Sale of Securities), included in the Appendix of this document 1 Sources of NII $8.6 $10.1 $10.9 $5.0 $11.2 $11.6 $15.5 0.30% 0.29% 0.25% 0.12% 0.30% 0.30% 0.39% Non-interest income Non-interest income/avg. assets 2020 2021 2022 2023 2024 2025 Annualized 2026 $58.5 $72.6 $75.3 $77.1 $78.7 $81.3 $91.4 55.6% 63.1% 54.4% 73.2% 112.1% 276.7% 66.0%76.7% 69.2% Non-interest expense Efficiency ratio *Non-GAAP excl sec sale loss 2020 2021 2022 2023 2024 2025 Annualized 2026 Salaries & benefits 59% Occupancy & equipment 9% Data processing 5% Professional services 5% FDIC Ins 3% Other 18% Total Non-Interest Components Wealth mgmt & trust 16% Service charges 15% BOLI 25% Interchange fees 13% FHLB dividends 22% Other 10% 1 1
Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 S E C T I O N 04 Capita l & Asset Qual i ty
28 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 ($ in millions at Fair Value) History of Strong Asset Quality • Allowance for credit losses to total loans of 1.08% down from the prior quarter due to charge-offs in Q1 (which were fully offset by specific reserves already in place) • Consistent, robust credit culture and underwriting principles support strong asset quality Non-accrual Loans / Total Loans Quarterly P rogress ion 1.59% 1.57% 1.51% 1.27% 0.41% 1Q25 2Q25 3Q25 4Q25 1Q26 Net C harge-Offs (R ecoveries) as % of Average Loans 0.00% 0.00% 0.02% 0.00% 0.00% 0.34% 2021 2022 2023 2024 Q4 25 Q1 26 0.00% 0.25% 0.50% 0.75% 1.00%
29 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 AOCI and Tangible Equity M ill io ns $416.2 $418.4 $415.5 $415.5 $390.2 $387.7 $390.0 $391.7 $377.8 $381.4 $338.4 $343.8 $346.8 $341.8 $362.5 $360.4 $358.9 $361.2 $359.9 $364.2 $363.4 $369.0 $320.0 $320.0 $69.4 $76.6 $53.0 $55.1 $31.3 $26.5 $30.1 $27.5 $14.4 $12.4 $18.4 $23.8 42.0% 39.5% 38.8% 38.5% 33.1% 31.3% 34.2% 32.8% 32.6% 35.0% 34.0% 33.9% 8.6% 8.6% 9.7% 9.8% 9.9% 9.7% 9.9% 9.8% 10.0% 9.7% 8.4% 8.3% Tangible Equity Accumulated Other Comprehensive Loss Investments/Total Assets Tangible Equity/Tangible Assets Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026 $— $100.0 $200.0 $300.0 $400.0 $500.0 —% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Appendix
31 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Reconciliation of GAAP to Non-GAAP Financial Measures (Excluding Loss on Sale of Securities) (in thousands; unaudited) Three months ended Three months ended Pre-tax, pre-provision net income March 31, 2026 December 31, 2025 March 31, 2026 March 31, 2025 Income (loss) before provision for (benefit from) income taxes $ 11,597 $ (57,375) $ 11,597 $ 6,481 Provision for credit losses on loans — 485 — 75 Provision for credit losses on unfunded loan commitments — — — — Pre-tax, pre-provision net income (loss) (GAAP) 11,597 (56,890) 11,597 6,556 Adjustments: Losses on sale of investment securities from portfolio repositioning — 69,466 — — Comparable pre-tax, pre-provision net income (non-GAAP) $ 11,597 $ 12,576 $ 11,597 $ 6,556
32 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Reconciliation of GAAP to Non-GAAP Financial Measures (Excluding Loss on Sale of Securities) (in thousands, except per share amounts; unaudited) Three months ended Three months ended Net income (loss) March 31, 2026 December 31, 2025 March 31, 2026 March 31, 2025 Net income (loss) (GAAP) $ 8,510 $ (39,541) $ 8,510 $ 4,876 Adjustments: Losses on sale of investment securities from portfolio repositioning — 69,466 — — Related income tax benefit1 — (20,534) — — Adjustments, net of taxes — 48,932 — — Comparable net income (non-GAAP) $ 8,510 $ 9,391 $ 8,510 $ 4,876 Diluted earnings (loss) per share Weighted average diluted shares 15,973 15,898 15,973 16,002 Diluted earnings (loss) per share (GAAP) $ 0.53 $ (2.49) $ 0.53 $ 0.30 Comparable diluted earnings per share (non-GAAP) $ 0.53 $ 0.59 $ 0.53 $ 0.30 Return on average assets Average assets $ 3,989,253 $ 3,926,118 $ 3,989,253 $ 3,728,066 Return on average assets (GAAP) 0.87 % (4.00) % 0.87 % 0.53 % Comparable return on average assets (non-GAAP) 0.87 % 0.95 % 0.87 % 0.53 % Return on average equity Average stockholders' equity $ 435,660 $ 426,394 $ 398,017 $ 437,176 Return on average equity (GAAP) 8.67 % (36.79) % 8.67 % 4.52 % Comparable return on average equity (non-GAAP) 8.67 % 8.74 % 8.67 % 4.52 % Return on average tangible common equity Average goodwill and intangibles 74,591 74,789 Average tangible common equity 323,426 351,605 398,017 437,176 Return on average tangible common equity (GAAP) 10.67 % (44.62) % 8.67 % 4.52 % Comparable return on average tangible common equity (non-GAAP) 10.67 % 10.60 % 8.67 % 4.52 % Efficiency ratio Non-interest expense $ 22,539 $ 20,023 $ 22,539 $ 20,446 Net interest income 30,302 29,781 30,302 20,128 Non-interest income (GAAP) 3,834 (66,648) 3,834 2,874 Losses on sale of investment securities — 69,466 — — Non-interest income (non-GAAP) $ 3,834 $ 2,818 $ 3,834 $ 2,874 Efficiency ratio (GAAP) 66.03 % (54.31) % 66.03 % 75.72 % Comparable efficiency ratio (non-GAAP) 66.03 % 61.42 % 66.03 % 75.72 % 1Related income tax benefit calculated using blended statutory rate of 29.5636%
33 Text 95,96,96 Light Gray 232, 232, 232 Black 0, 0, 0 White 255, 255, 255 Accent 1 7,89,52 Accent 2 248,153,40 Accent 3 254,217,129 Accent 4 52,153,70 Accent 5 5,39,67 Accent 6 171,184,195 Contact Us Tim Myers President and Chief Executive Officer (415) 763-4970 timmyers@bankofmarin.com Dave Bonaccorso EVP, Chief Financial Officer (415) 884-4758 davebonaccorso@bankofmarin.com Media Requests: Yahaira Garcia-Perea Marketing & Corporate Communications Manager (916) 231-6703 yahairagarcia-perea@bankofmarin.com
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Cover
Apr. 23, 2026
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Apr. 23, 2026
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Bank of Marin Bancorp
Entity Incorporation, State or Country Code
CA
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Entity Tax Identification Number
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504 Redwood Blvd.
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Suite 100
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