Bank of Marin Bancorp, the parent company of Bank of Marin, reported earnings of $6.0 million for the fourth quarter of 2024, compared to $4.6 million for the third quarter of 2024. Diluted earnings per share were $0.38 for the fourth quarter of 2024, up 35.71% compared to $0.28 for the prior quarter.
The fourth quarter tax-equivalent net interest margin improved 10 basis points over the preceding quarter to 2.80% from 2.70%, largely due to reductions in deposit rates. Loan yields increased 9 basis points during the quarter but were offset by a 57 basis point decline in the yield on cash, resulting in an unchanged yield on earning assets of 4.04% despite a 50 basis point decline in short term market interest rates.
Return on average assets ("ROA") increased to 0.63% for the fourth quarter of 2024, and return on average equity ("ROE") to 5.48%, compared to 0.48% and 4.17%, respectively. The efficiency ratio for the fourth quarter of 2024 improved to 65.53% from 75.18% in the last quarter.
Non-accrual loans were 1.63% of total loans at quarter-end, down from 1.91% at September 30, 2024. The reduction in non-accrual balances included a substantial $4.7 million paydown from one commercial relationship. The allowance for credit losses remained at 1.47% of total loans compared to the prior quarter.
Loans decreased by $6.8 million for the fourth quarter and totaled $2.083 billion as of December 31, 2024, compared to $2.090 billion as of September 30, 2024. Organic originations totaled $47.1 million for the fourth quarter of 2024, compared to $28.2 million for the third quarter.
Total cash, cash equivalents, and restricted cash were $137.3 million at December 31, 2024, compared to $229.2 million at September 30, 2024. The investment securities portfolio totaled $1.267 billion at December 31, 2024, an increase of $9.7 million from September 30, 2024.
Deposits totaled $3.220 billion at December 31, 2024, compared to $3.309 billion at September 30, 2024. Non-interest bearing deposits made up 43.5% of total deposits at December 31, 2024, compared to 44.5% at September 30, 2024.
The total risk-based capital ratio for Bancorp was 16.54% at December 31, 2024, compared to 16.40% at September 30, 2024. The total risk-based capital ratio for the bank was 16.13% at December 31, 2024, compared to 15.82% at September 30, 2024.
Net interest income totaled $25.2 million for the fourth quarter of 2024, compared to $24.3 million for the prior quarter. The tax-equivalent net interest margin was 2.80% for the fourth quarter of 2024, compared to 2.70% for the prior quarter. Following these announcements, the company's shares moved 5.6%, and are now trading at a price of $25.34. If you want to know more, read the company's complete 8-K report here.
