Bank of Marin Bancorp Reports Q4 Loss

By Chris Stiles • Monday, January 26 16:28 • Permanent Link

Bank of Marin Bancorp, the parent company of Bank of Marin, has reported its financial results for the fourth quarter and full year 2025. The company experienced significant changes in its financial metrics compared to the previous period.

During the fourth quarter of 2025, the company reported a near-record loan origination, driving loan growth and strengthening asset quality. However, due to losses on the sale of securities, the company incurred a quarterly loss of $39.5 million, compared to net income of $7.5 million in the third quarter of 2025.

On a non-GAAP basis, excluding the losses on the sale of securities, net income for the fourth quarter was $9.4 million, reflecting a 25% increase, and diluted earnings per share were $0.59, a 26% increase compared to the prior quarter. For the full year 2025, non-GAAP net income was $26.5 million, representing an 82% increase from the prior year.

The company's loan portfolio saw an increase of $30.5 million, or 5.84% annualized, during the fourth quarter, driven by growth in commercial and commercial real estate sectors. Deposits also increased by $33.0 million, or 3.88% annualized, with non-interest bearing deposits comprising 43.7% of total deposits.

The balance sheet repositioning executed during the fourth quarter contributed to a 24 basis points improvement in the tax-equivalent net interest margin, reaching 3.32%. Adjusted for losses from the repositioning, the return on average assets (ROA) and return on average equity (ROE) were 0.95% and 8.74% (non-GAAP), respectively, both showing improvements compared to the prior quarter.

In terms of credit quality, the company reported improvements in classified loans, non-accruals, and delinquencies, with a provision of $300 thousand for credit losses on loans in the fourth quarter. The allowance for credit losses was 1.42% of total loans at quarter end.

The company's capital ratios remained above well-capitalized regulatory thresholds, and it declared a cash dividend of $0.25 per share, reflecting confidence in its financial position.

Following these announcements, the company's shares moved -0.41%, and are now trading at a price of $26.80. Check out the company's full 8-K submission here.

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