Mon, May 12, 6:32 PM (42 days ago)
**Bank of Marin Bancorp (BMRC) Q1 2025 Financial Performance Summary** **Financial Health and Performance Metrics:** - **Revenue:** Total revenue for Q1 2025 was $27.8 million, down from $28.0 million in Q4 2024 but up from $25.4 million in Q1 2024. - **Profit Margins:** Net income for Q1 2025 was $4.9 million, down from $6.0 million in Q4 2024 but up from $2.9 million in Q1 2024. The net interest margin increased to 2.86% in Q1 2025 from 2.80% in Q4 2024. - **Cash Flow:** Net cash provided by operating activities was $4.9 million in Q1 2025, up from $4.3 million in Q1 2024. - **Earnings Changes:** Diluted earnings per share (EPS) was $0.30 for Q1 2025, compared to $0.38 in Q4 2024 and $0.18 in Q1 2024. **Quarterly Performance Discussion:** - **Deposits:** Total deposits increased by $82.0 million to $3.302 billion as of March 31, 2025, with non-interest-bearing deposits making up 43.2% of total deposits. - **Loans:** Loan balances decreased by $9.7 million to $2.074 billion, with additions to the loan portfolio reflecting loan fundings of $47.4 million and payoffs of $25.5 million. - **Credit Quality:** Non-accrual loans decreased to $32.9 million, or 1.59% of total loans, with approximately 57% of non-accrual loans paying as agreed. - **Capital Ratios:** Capital was above well-capitalized regulatory thresholds, with Bancorp's and the Bank's total risk-based capital ratios of 16.69% and 16.45%, respectively, as of March 31, 2025. **Trends and Uncertainties:** - **Interest Rates:** The Federal Reserve left rates unchanged in the first quarter of 2025 due to projected slower economic growth and higher inflation by year-end. - **Economic Conditions:** Management is monitoring the impact of market rates on the Company's financial condition and results of operations to enhance performance, safety, and soundness, and returns to shareholders. - **Liquidity:** Net available contingent funding sources, including unrestricted cash, unencumbered available-for-sale securities, and total available borrowing capacity, were $1.917 billion, or 58% of total deposits and 203% of estimated uninsured and/or uncollateralized deposits as of March 31, 2025. **Future Operations Impact:** - **Dividends:** The Board of Directors approved a cash dividend of $0.25 per share on April 24, 2025, payable on May 15, 2025. - **Share Repurchase Program:** There were no repurchases in the three months ended March 31, 2025 and 2024. Bancorp will continue to assess opportunities to utilize the program. - **Capital Plan:** The capital plan and point-in-time capital stress tests indicate that Bank of Marin and Bancorp capital ratios will remain above regulatory well-capitalized and internal policy minimums throughout a five-year forecast horizon and across stress scenarios.