Condensed Bank of Marin Bancorp Parent Only Financial Statements

Presented below is financial information for Bank of Marin Bancorp, parent holding company only.



CONDENSED UNCONSOLIDATED STATEMENTS OF CONDITION
December 31, 2018 and 2017
(in thousands)	2018		2017
Assets
Cash and due from Bank of Marin	$	19,144	$	3,246
Investment in bank subsidiary	299,953		299,486
Other assets	331		586
Total assets	$	319,428	$	303,318

Liabilities and Stockholders' Equity
Subordinated debentures	$	2,640	$	5,739
Accrued expenses payable	51		146
Other liabilities	330		408
Total liabilities	3,021		6,293
Stockholders' equity	316,407		297,025
Total liabilities and stockholders' equity	$	319,428	$	303,318



CONDENSED UNCONSOLIDATED STATEMENTS OF INCOME
Years ended December 31, 2018 and 2017
(in thousands)	2018			2017
Income
Dividends from bank subsidiary	$	36,700		$	8,000
Miscellaneous Income	9			8
Total income	36,709			8,008
Expense
Interest expense	1,339			439
Non-interest expense	1,275			2,087
Total expense	2,614			2,526
Income before income taxes and equity in undistributed net income of subsidiary	34,095			5,482
Income tax benefit	770			876
Income before equity in undistributed net income of subsidiary	34,865			6,358
Earnings of bank subsidiary (less) greater than dividends received from bank subsidiary	(2,243		)	9,618
Net income	$	32,622		$	15,976



CONDENSED UNCONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31, 2018 and 2017
(in thousands)	2018			2017
Cash Flows from Operating Activities:
Net income	$	32,622		$	15,976
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Earnings of bank subsidiary greater (less) than dividends received from bank subsidiary	2,243			(9,618		)
Net change in operating assets and liabilities:
Accretion of discount on subordinated debentures	1,025			153
Other assets	36			92
Intercompany receivable	—			(40		)
Other liabilities	(86		)	51
Noncash director compensation expense - common stock	23			20
Net cash provided by operating activities	35,863			6,634
Cash Flows from Investing Activities:
Capital contribution to subsidiary	(667		)	(853		)
Net cash used in investing activities	(667		)	(853		)
Cash Flows from Financing Activities:
Proceeds from stock options exercised and stock issued under employee and director stock purchase plans and ESPP	667			853
Repayment of subordinate debenture including execution costs	(4,137		)	—
Payment of tax withholdings for stock options exercised	(99		)	(60		)
Dividends paid on common stock	(8,860		)	(6,896		)
Stock repurchased, net of commissions	(6,869		)	—
Net cash used by financing activities	(19,298		)	(6,103		)
Net increase (decrease) in cash and cash equivalents	15,898			(322		)
Cash and cash equivalents at beginning of period	3,246			3,568
Cash and cash equivalents at end of period	$	19,144		$	3,246
Supplemental schedule of non-cash investing and financing activities:
Stock issued in payment of director fees	$	204		$	188
Repurchase of stock not yet settled	$	143		$	—
Stock issued to ESOP	$	1,173		$	1,152