Oct 26, 2026 earnings call — Margin expansion and loan growth
Bank of Marin reported third-quarter net income of $9.9 million, or $0.62 per share, driven by expanded net interest margin and loan growth.
Revenue $0.0B (est $0.0B) · EPS $0.62 (est $0.57)
Key quotes
"We recorded higher interest income on loan due to an increase in average loan yields from 5.12% in the second quarter to 5.23% in the third quarter."
"Total deposit balances increased 25.3 million including a $45 million increase in non interest bearing balances."
"During the quarter, we originated $102 million in new loan commitments which improved year to date originations to $281 million a level that is 21% higher than last year."
Analyst Q&A 4
net interest margin and deposit sales
Q (Woody Lay · KBW): He asked for the September net interest margin level and the outlook for NIM expansion. He also asked whether one-way deposit sales could rise to about 300 million next quarter.
A: They said September NIM was 3.04 tax equivalent, 3.52 reported, and that includes about a 145 million of 1 way sales. If you removed 1 way sales, NIM would be about 3.46, and quarter-to-date they have about 115 million in 1 way sales; they also said 300 million next quarter would be out of range but slightly higher levels are possible.
"So the September NIM was 3.04 tax equivalent, 3.52 reported." — David Bonaccorso (CFO)
originations, payoffs, mortgage pool rate
Q (Jeff Rulis · D.A. Davidson): He asked how the $102 million in originations compared to the prior quarter and about payoff activity. He also asked whether mortgage pool purchases would continue and what rate the mortgage pool came at this quarter.
A: They said originations moved from $98 million to $102 million sequentially, fundings went from 62.8 million to 63.6 million, and payoffs fell from 71 million to 31.6 million. On the mortgage pool they said the coupon was about 6.20%, they paid a small premium, and their expectation is that with conservative prepay speeds it will probably yield around 6%.
"The coupon on the pool was about 6.20%, and we paid a small premium for it." — David Bonaccorso (CFO)
mortgage pool duration and expenses
Q (Matthew Clark · Piper Sandler): He asked the expected duration (average life) of the single-family mortgage pool and whether there were any recoveries or interest reversals. He also asked about a normalized expense run rate and share buybacks / acquisitions.
A: They said they ran the pool at a 25 CPR, giving about a 3.3-year average life. They reported nothing material in recoveries this quarter, noted an $8 million nonaccrual that could resolve later, said Q4 expenses should be similar to Q3 with typical seasonality (Q1 resets, Q2 peaks), and said they have no progressed M&A conversations though they continue outreach while working with regulators on capital and dividend discussions.
"So we ran at a 25 CPR, which gets you to about 3.3-year average life." — David Bonaccorso (CFO)
demand, hiring, deposits, and fee income
Q (David Feaster · Raymond James): He asked how loan demand and pipelines have trended as rates rose and about hiring and banker productivity in newer markets. He also asked what drove the strong deposit growth and about progress on charging for products and growing fee income.
A: They said consumer demand has improved sharply, noting San Francisco residential lending is about triple year to date versus the prior year, while HELOCs are paying off and the commercial pipeline is similar to last year's Q4. On deposits they said growth was driven by operating balances within larger customers and some quasi-public money moving to other investment vehicles, and that they manage pricing through day-to-day relationship work. On fees they said the run rate is based on a new fee schedule for commercial treasury management customers and that they have additional fee initiatives in the works.
"I think we are at triple right now year to date, or almost triple where we were the prior year." — Timothy D. Myers (CEO)