Bank of Marin Bancorp (Nasdaq: BMRC) reported higher net interest margins and continued loan and deposit growth in the fourth quarter of 2025, as the lender detailed its balance sheet and operating performance alongside its quarterly earnings disclosure.
Balance Sheet Trends
On December 31, 2025:
- Total loans: $2.121 billion, up $30.5 million quarter-over-quarter
- Total deposits: Increased by $33.0 million
- Non-interest-bearing deposits: 43.7% of total deposits
New loan fundings, excluding PPP loans, totaled $106.5 million during the quarter.
Revenue Generation and Margins
The company reported a tax-equivalent net interest margin of 3.32%, up from 3.08% in the third quarter.
Margin expansion reflected higher loan yields, increased securities income, and lower deposit costs, partly offset by interest expense on subordinated notes.
Capital and Funding Structure
During the fourth quarter, Bank of Marin Bancorp completed its balance sheet repositioning program, which included:
- Reclassification and sale of securities
- Issuance of $45.0 million in subordinated debt
At quarter end, total risk-based capital ratios were 15.25% for Bancorp and 13.90% for the bank subsidiary.
Asset Quality Review
Credit quality indicators at December 31, 2025, showed:
- Allowance for credit losses: 1.42% of loans
- Classified loans: 1.51%
- Non-accrual loans: 1.27%
- Net charge-offs: $64,000
- Loan loss provision: $300,000
Both classified and non-accrual loan ratios declined from the previous quarter.
Shareholder Returns
The board declared a quarterly dividend of $0.25 per share, payable February 12, 2026, marking the 83rd consecutive quarterly dividend.
Performance Summary
Bank of Marin Bancorp reported quarter-over-quarter growth in loans and deposits and an improvement in net interest margin. Credit metrics improved, and capital ratios remained above regulatory requirements. Shares declined on the day of disclosure as investors evaluated operating performance.