Bank of Marin Bancorp (BMRC) investor relations material

Executive summary

• Net income for Q2 2026 was $9.2 million, with diluted EPS of $0.58, nearly doubling year-over-year and up from $8.5 million in Q1 2026, driven by higher loan yields, lower deposit costs, and improved profitability.

• Net interest margin expanded by 14 basis points to 3.38% in Q2 2026, supported by balance sheet restructuring and disciplined deposit pricing.

• Book value per share increased to $24.51 and tangible book value per share to $19.92.

• Special mention loans reduced by $19 million, significantly lowering exposure to the wine industry.

• Focus remains on sustainable growth through relationship-driven loan production, disciplined deposit management, and proactive credit management.

Financial highlights

• Net interest income rose to $30.8 million, driven by higher loan yields and lower deposit costs.

• Non-interest income declined by $665,000 due to lower FHLB dividend income and absence of BOLI death benefits; excluding these, non-interest income rose by $293,000.

• Non-interest expense decreased by $942,000 to $21.6 million, mainly due to lower salaries, benefits, and charitable contributions.

• Deposits decreased 1.7% from Q1, but remained 3.8% higher year-over-year; non-interest bearing deposits held at 36.7% of total.

• Yield on new loan fundings increased to 6.53%, up 62 basis points from the prior quarter.

Outlook and guidance

• Capital ratios projected to remain above regulatory and internal minimums over a five-year horizon, even under stress scenarios.

• Margin outlook improving due to continued loan growth at higher rates and targeted deposit cost reductions.

• Loan pipeline and production expected to accelerate, supported by recent hires and revived construction lending.