Bank of Marin Bancorp reported financial results for the third quarter of 2026, highlighting growth in net income and a dividend declaration. The company reported net income of $9.9 million for the quarter ended September 30, 2026. This figure represents a 7.4% increase from the $9.2 million reported in the second quarter of 2026 and a significant rise compared to the $7.5 million recorded in the same period last year.
Diluted earnings per share (EPS) for the third quarter were $0.62, a 6.9% increase from the prior quarter's $0.58. The company attributes this growth to a 32% year-over-year increase in EPS, largely driven by the expansion of its net interest margin. Pre-tax pre-provision net income rose by 17.4% sequentially to $14.5 million.
Key operational metrics for the period included a net interest margin of 3.48%, an improvement of 10 basis points from the previous quarter. Total loans increased by $43.4 million, or 2.07%, to reach $2.144 billion. This growth was supported by organic originations of $63.6 million and the purchase of a $31.1 million residential mortgage pool. Total deposits grew by $25.3 million to $3.395 billion, with a notable increase in noninterest-bearing deposits of $45.0 million.
Regarding credit quality, the company noted that classified loans increased by $15.2 million to $35.0 million, or 1.63% of total loans. Special mention loans decreased to $65.1 million. Non-accrual loans increased by $1.2 million to $9.7 million, or 0.45% of total loans. The allowance for credit losses remained stable at 1.07% of total loans.
In a separate announcement, the Bank of Marin Bancorp Board of Directors approved a quarterly cash dividend of $0.25 per share. The dividend is payable on November 12, 2026, to shareholders of record as of the close of business on November 5, 2026. This marks the 86th consecutive quarterly dividend declared by the company.
