Bank of Marin sells $186 million in securities to boost future earnings

NOVATO, Calif. - Bank of Marin, the wholly owned subsidiary of Bank of Marin Bancorp (Nasdaq:BMRC), a $386 million market cap regional bank with a beta of 0.83, announced the sale of $186 million of available-for-sale securities as part of a strategic balance sheet repositioning initiative aimed at enhancing future financial performance.

The securities sold had an average yield of 1.96%, resulting in an estimated pre-tax loss of approximately $19 million to be recorded in the second quarter of 2025. The bank has fully reinvested the sale proceeds at an average yield of approximately 5.00%.

According to the company, the transaction is expected to contribute approximately 13 basis points to annualized net interest margin beginning in the third quarter and generate an estimated $0.20 in earnings per share accretion over the next four quarters. The bank anticipates an approximate four-year earn back period for the repositioning.

"With this transaction, we took advantage of our high levels of capital to reposition legacy bond assets into higher yielding assets," said Tim Myers, president and CEO of Bank of Marin, in a press release statement.

Following the transaction, Bank of Marin Bancorp maintains a pro-forma total risk-based capital ratio above 16%, according to the company.

Bank of Marin Bancorp, headquartered in Novato, California, operates 27 branches and eight commercial banking offices throughout Northern California, with assets of $3.8 billion.

In other recent news, Bank of Marin Bancorp reported its financial results for the first quarter of 2025, showing a mixed performance. The company’s earnings per share (EPS) were $0.30, slightly below the forecast of $0.31, while revenue totaled $27.82 million, falling short of the anticipated $27.99 million. Despite these misses, Bank of Marin’s net income rose significantly by 67% compared to the same period last year. Total deposits increased by $82 million from the previous quarter, reaching $3.3 billion. In another development, Bank of Marin Bancorp announced a change in its independent registered public accounting firm due to a merger involving its previous auditor, Moss Adams LLP, which merged with Baker Tilly US, LLP. Consequently, Baker Tilly was appointed as the new auditor. The bank did not consult with Baker Tilly on any accounting matters prior to this change. Additionally, there were no disagreements or reportable events with Moss Adams regarding accounting principles or audit procedures.

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