Bank of Marin Bancorp Reports $8.5 Million Net Loss in Q2 2025

Bank of Marin Bancorp reported a net loss of $8.5 million for the second quarter of 2025, a significant decline from the net income of $4.9 million recorded in the previous quarter. This resulted in a diluted loss per share of $0.53, compared to earnings of $0.30 per share in the first quarter. The loss was primarily attributed to a $18.7 million loss on the sale of available-for-sale securities, part of a strategic repositioning of the bank's investment portfolio aimed at enhancing future earnings. Excluding this loss, the adjusted net income would have been $4.7 million, or $0.29 per share. For the first half of 2025, the bank's net loss was $3.7 million, an improvement from a loss of $19 million in the same period of 2024.

Total assets for the bank increased to $3.726 billion as of June 30, 2025, up from $3.701 billion at the end of 2024. The growth in assets was driven by an increase in cash and cash equivalents, which rose to $228.9 million from $137.3 million, largely due to proceeds from the sale of securities. The investment securities portfolio decreased to $1.215 billion, down from $1.267 billion, reflecting the aforementioned sales and maturities. Loans, net of allowance for credit losses, slightly decreased to $2.043 billion from $2.053 billion, with loan originations totaling $132.8 million during the first half of 2025.

In terms of operational metrics, total deposits rose to $3.245 billion, an increase of $25 million from the previous year-end. The bank added approximately 1,000 new accounts during the second quarter, although non-interest-bearing deposits saw outflows due to various business expenses. The average cost of total deposits decreased to 1.28% in the second quarter, down from 1.29% in the prior quarter. The bank's allowance for credit losses on loans was 1.44% of total loans as of June 30, 2025, a slight decrease from 1.47% at the end of 2024.

Looking ahead, Bank of Marin Bancorp anticipates that the repositioning of its securities will yield a 13 basis point increase in annualized net interest margin and an estimated $0.20 increase in earnings per share over the next four quarters. The bank's management remains focused on improving future earnings and increasing return on equity, while also maintaining a strong liquidity position with net available contingent funding sources totaling $1.863 billion, representing 57% of total deposits. The bank's capital ratios remain above regulatory requirements, indicating a solid foundation for future growth and stability.