Exhibit

EXHIBIT 99.1




FOR IMMEDIATE RELEASE	MEDIA CONTACT:
	Beth Drummey
	Marketing & Corporate Communications Manager
	415-763-4529 \| bethdrummey@bankofmarin.com

BANK OF MARIN BANCORP REPORTS SECOND QUARTER EARNINGS OF $8.2 MILLION

INCREASES QUARTERLY DIVIDEND TEN PERCENT

NOVATO, CA, July 22, 2019 - Bank of Marin Bancorp, "Bancorp" (NASDAQ: BMRC), parent company of Bank of Marin, "Bank," announced earnings of $8.2 million in the second quarter of 2019, compared to $7.5 million in the first quarter of 2019 and $7.9 million in the second quarter of 2018. Diluted earnings per share were $0.60 in the second quarter of 2019 compared to $0.54 in the prior quarter and $0.56 in the same quarter last year (adjusted for stock-split). Earnings for the first six months of 2019 totaled $15.7 million compared to $14.3 million in the same period last year. Diluted earnings per share were $1.13 and $1.02 (adjusted for stock-split) in the first six months of 2019 and 2018, respectively.

“We delivered another strong quarter for our shareholders,” said Russell A. Colombo, President and Chief Executive Officer. “In this competitive environment, we've maintained our low cost, stable deposit base and disciplined underwriting standards, and our credit quality remains excellent. We’re well-positioned to meet the steady loan demand we’re seeing across our markets.”

Bancorp also provided the following highlights from the second quarter of 2019:


•	Loans totaled $1,764.9 million at June 30, 2019, compared to $1,772.5 million at March 31, 2019. New loan originations of $42.2 million in the second quarter were distributed across Commercial Banking and Consumer Banking. Payoffs of $43.3 million in the second quarter included the successful completion of a large construction project.

•

While total deposits decreased $76.6 million in the second quarter to $2,102.0 million, non-interest bearing deposits declined only $19.7 million. Non-interest bearing deposits represented 50% of total deposits versus 49% last quarter, and have been at or near this level since the beginning of last year. The cost of average deposits increased to 0.20% in the second quarter compared to 0.18% in the first quarter of 2019.


•	Strong credit quality remains a cornerstone of the Bank's consistent performance. Non-accrual loans represented only 0.03% of the Bank's loan portfolio at June 30, 2019. There were no provisions for loan losses or off-balance sheet commitments recorded in the second quarter of 2019.


•	All capital ratios were above regulatory requirements. The total risk-based capital ratio for Bancorp was 15.2% at June 30, 2019, compared to 14.9% at March 31, 2019. Tangible common equity to tangible assets was 12.0% at June 30, 2019, compared to 11.4% at March 31, 2019 (refer to footnote 3 on page 6 for a definition of this non-GAAP financial measure).

•

Based on the size of the market and reduced branch foot traffic driven by digital banking offerings, we have decided to close the Petaluma Downtown Branch on August 9, 2019. We will focus our resources on growing our two remaining branches in Petaluma, where most Downtown customers have already moved their business. Our commitment to the Petaluma community remains strong, and employees have accepted positions in other Bank of Marin branches.


•	On June 17, 2019, we upgraded to a new digital banking platform that offers our customers enhanced features and additional functionality for an improved online and mobile banking experience. The conversion is substantially complete, and the implementation and operations teams are working closely with our customers to make their transition to the new platform as smooth as possible.


•	The Board of Directors declared a cash dividend of $0.21 per share on July 19, 2019. This represents the 57th consecutive quarterly dividend paid by Bank of Marin Bancorp. The dividend is payable on August 9, 2019, to shareholders of record at the close of business on August 2, 2019.


•	As a result of her expanded responsibilities, Cecilia Situ, First Vice President, has been named Treasurer of the Bank. David A. Merck, Vice President and Financial Reporting Manager, has assumed the position of Principal Accounting Officer that was previously occupied by Ms. Situ.

Loans and Credit Quality

Loans decreased by $7.6 million in the second quarter and totaled $1,764.9 million at June 30, 2019. For the second quarter and first six months of 2019, new loan originations of $42.2 million and $76.1 million, respectively, were below 2018 loan originations of $75.8 million and $113.2 million for the same periods. Loan payoffs of $43.3 million in the second quarter and $69.3 million in the first six months of 2019, moderately exceeded $37.3 million and $68.8 million in the respective 2018 periods, and included the successful completion of a large construction project.

Non-accrual loans totaled $574 thousand, or 0.03% of the loan portfolio at June 30, 2019, compared to $719 thousand, or 0.04% at March 31, 2019, and $385 thousand, or 0.02% a year ago. Classified loans totaled $10.3 million at June 30, 2019, compared to $14.8 million at March 31, 2019 and $13.9 million at June 30, 2018. The $4.5 million decrease in the second quarter of 2019 was primarily due to a $2.2 million paydown received in April 2019 on a $2.7 million substandard classified loan (the remaining balance was upgraded to a Pass risk rating). Additionally, there were upgrades on loan balances of approximately $1.6 million with improvements in credit quality and a payoff of $188 thousand on a substandard classified loan. There were no loans classified doubtful at June 30, 2019 or March 31, 2019. Accruing loans past due 30 to 89 days totaled $343 thousand at June 30, 2019, compared to $2.2 million at March 31, 2019 and $88 thousand a year ago.

There was no provision for loan losses recorded in the second quarter of 2019, consistent with last quarter and the same quarter a year ago. Recoveries were $18 thousand in the second quarter of 2019, compared to net charge-offs of $4 thousand for the prior quarter and net recoveries of $42 thousand in the second quarter a year ago. The ratio of loan loss reserves to loans, including acquired loans, was 0.90% at June 30, 2019, 0.89% at March 31, 2019, and 0.92% at June 30, 2018.

Investments

The investment securities portfolio totaled $527.0 million at June 30, 2019, compared to $595.7 million at March 31, 2019. The decrease from the prior quarter was primarily attributed to sales of $61.8 million in lower yielding shorter term securities to manage our interest rate spread and cash position.

Deposits

Total deposits were $2,102.0 million at June 30, 2019, compared to $2,178.6 million at March 31, 2019. The $76.6 million decrease during the second quarter primarily resulted from normal cash fluctuations in some of our large business accounts and a $16.1 million increase in one-way deposit sales to third party deposit networks. The average cost of deposits in the second quarter of 2019 was 0.20%, an increase of 2 basis points from the prior quarter.

Earnings

“Bank of Marin's commitment to our markets and our customers is yielding great results,” said Tani Girton, EVP and Chief Financial Officer. “With a return on assets of 1.26% and efficiency ratio of 58.91% year-to-date, and an increase in tax-equivalent net interest margin of 14 basis points year-over-year, we are seeing what can be achieved when you combine consistent credit and expense management with a focus on relationship banking."

Net interest income totaled $23.8 million in both the first and second quarters of 2019 and $22.8 million in the second quarter of 2018. The $947 thousand increase from the comparative quarter a year ago was reflective of higher average loan balances and higher yields across earning asset categories, partially offset by higher rates on deposits.

Net interest income totaled $47.6 million in the first six months of 2019, compared to $44.7 million for the same period in 2018. The $2.9 million increase primarily relates to higher average loan and investment securities balances and higher yields across earning asset categories, partially offset by higher rates on deposits.

The tax-equivalent net interest margin was 4.04% in the second quarter of 2019, compared to 4.02% in the prior quarter and 3.92% in the same quarter a year ago. The 2 basis point increase from the prior quarter was primarily due to a more favorable mix of interest-earning assets toward higher yielding loans. The 12 basis point increase from the same quarter a year ago was primarily due to higher interest rates.

The tax-equivalent net interest margin was 4.03% in the first six months of 2019, compared to 3.89% for the same period in 2018. The 14 basis point increase from the same period a year ago was mostly attributed to growth in earning assets and higher interest rates.

Loans obtained through the acquisition of other banks are classified as either purchased credit impaired ("PCI") or non-PCI loans and are recorded at fair value at acquisition date. For acquired loans not considered credit impaired, the level of accretion varies due to maturities and early payoffs. Accretion on PCI loans fluctuates based on changes in cash flows expected to be collected. Gains on payoffs of PCI loans are recorded as interest income when the payoff amounts exceed the recorded investment. PCI loans totaled $2.1 million at June 30, 2019, March 31, 2019 and June 30, 2018.

As our acquired loans from prior acquisitions continue to pay off, we expect the accretion on these loans to continue to decline. Accretion and gains on payoffs of purchased loans recorded to interest income were as follows:



	Three months ended
	June 30, 2019				March 31, 2019			June 30, 2018
(dollars in thousands; unaudited)	Dollar Amount			Basis point impact to net interest margin	Dollar Amount		Basis point impact to net interest margin	Dollar Amount		Basis point impact to net interest margin
Accretion on PCI loans ¹	$	56		1 bps	$	59	1 bps	$	83	1 bps
Accretion on non-PCI loans ²	$	(3	)	0 bps	$	42	1 bps	$	133	2 bps
Gains on payoffs of PCI loans	$	—		0 bps	$	—	0 bps	$	1	0 bps



	Six months ended
	June 30, 2019			June 30, 2018
(dollars in thousands; unaudited)	Dollar Amount		Basis point impact to net interest margin	Dollar Amount		Basis point impact to net interest margin
Accretion on PCI loans ¹	$	115	1 bps	$	195	2 bps
Accretion on non-PCI loans ²	$	39	0 bps	$	233	2 bps
Gains on payoffs of PCI loans	$	—	0 bps	$	129	1 bps

¹ Accretable yield on PCI loans totaled $819 thousand, $875 thousand and $1.1 million at June 30, 2019, March 31, 2019 and June 30, 2018, respectively.

² Unaccreted purchase discounts on non-PCI loans totaled $669 thousand, $666 thousand and $1.0 million at June 30, 2019, March 31, 2019 and June 30, 2018, respectively.

Non-interest income totaled $2.3 million in the second quarter of 2019, $1.8 million in the prior quarter, and $2.2 million in the same quarter a year ago. The increase of $503 thousand from the prior quarter was due to $283 thousand non-refundable costs for underwriting two new bank-owned life insurance policies purchased in the first quarter and gains on the sale of investment securities in the second quarter. The $36 thousand increase from the same quarter a year ago was attributed to fee income and gains on the sale of investment securities, partially offset by a decrease in deposit network income.

Non-interest income decreased $435 thousand to $4.0 million in the first six months of 2019, compared to $4.5 million in 2018, primarily due to the underwriting costs of new bank-owned life insurance policies and the decrease in deposit network income.

Non-interest expense decreased $612 thousand to $14.9 million in the second quarter of 2019, from $15.5 million in the prior quarter. The decrease was primarily due to lower salaries and benefits as the first quarter included $498 thousand due to participants meeting stock-based compensation retirement eligibility requirements and $239 thousand more in 401K contributions that are typical in the first quarter. The higher expenses were partially offset by a $372 thousand bonus reversal, also in the first quarter of 2019. Additionally, the first quarter included a $129 thousand provision for losses on off-balance sheet commitments.

Non-interest expense increased $407 thousand from $14.5 million in the second quarter of 2018. The increase primarily related to $655 thousand more in salaries (due to five additional full-time equivalent staff and annual merit increases), partially offset by $268 thousand less in professional fees (mostly attributed to core processing contract negotiations in 2018).

Non-interest expense totaled $30.4 million in the first half of 2019, compared to $30.6 million in the first half of 2018. The $146 thousand decrease was primarily attributed to fewer professional fees and data processing expenses (mostly related to Bank of Napa acquisition expenses in 2018), partially offset by the higher expenses in the first half of 2019 mentioned above.

Share Repurchase Program

Bancorp's Board of Directors approved the extension of the $25.0 million Stock Repurchase Program to February 28, 2020. Bancorp repurchased 134,620 shares totaling $5.6 million in the second quarter of 2019 for a cumulative total of 419,741 shares and $17.5 million as of June 30, 2019.

Earnings Call and Webcast Information

Bank of Marin Bancorp will present its second quarter earnings call via webcast on Monday, July 22, 2019 at 8:30 a.m. PT/11:30 a.m. ET. Investors will have the opportunity to listen to the webcast online through Bank of Marin’s website at https://www.bankofmarin.com under “Investor Relations.” To listen to the webcast live, please go to the website at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available at the same website location shortly after the call.

About Bank of Marin Bancorp

Founded in 1990 and headquartered in Novato, Bank of Marin is the wholly owned subsidiary of Bank of Marin Bancorp (NASDAQ: BMRC). A leading business and community bank in the San Francisco Bay Area, with assets of $2.5 billion, Bank of Marin has 23 retail branches, 5 commercial banking offices and 1 loan production office located across the North Bay, San Francisco and East Bay regions. Bank of Marin provides commercial banking, personal banking, and wealth management and trust services. Specializing in providing legendary service to its customers and investing in its local communities, Bank of Marin has consistently been ranked one of the “Top Corporate Philanthropists" by the San Francisco Business Times and one of the “Best Places to Work” by the North Bay Business Journal. Bank of Marin Bancorp is included in the Russell 2000 Small-Cap Index and NASDAQ ABA Community Bank Index. For more information, go to www.bankofmarin.com.

Forward-Looking Statements

This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact Bancorp's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, economic uncertainty in the United States and abroad, changes in interest rates, deposit flows, real estate values, costs or effects of acquisitions, competition, changes in accounting principles, policies or guidelines, legislation or regulation (including the Tax Cuts & Jobs Act of 2017), and other economic, competitive, governmental, regulatory and technological factors (including external fraud and cyber-security threats) affecting Bancorp's operations, pricing, products and services. These and other important factors are detailed in various securities law filings made periodically by Bancorp, copies of which are available from Bancorp without charge. Bancorp undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.



BANK OF MARIN BANCORP
FINANCIAL HIGHLIGHTS
June 30, 2019
(dollars in thousands, except per share data; unaudited)	June 30, 2019			March 31, 2019			June 30, 2018
Quarter-to-Date
Net income	$	8,235		$	7,479		$	7,891
Diluted earnings per common share⁴	$	0.60		$	0.54		$	0.56
Return on average assets	1.32		%	1.19		%	1.28		%
Return on average equity	10.26		%	9.54		%	10.54		%
Efficiency ratio	57.23		%	60.62		%	57.85		%
Tax-equivalent net interest margin ¹	4.04		%	4.02		%	3.92		%
Cost of deposits	0.20		%	0.18		%	0.08		%
Net (recoveries) charge-offs	$	(18	)	$	4		$	(42	)
Net (recoveries) charge-offs to average loans	—		%	—		%	—		%
Year-to-Date
Net income	$	15,714					$	14,280
Diluted earnings per common share ⁴	$	1.13					$	1.02
Return on average assets	1.26		%				1.17		%
Return on average equity	9.90		%				9.63		%
Efficiency ratio	58.91		%				62.16		%
Tax-equivalent net interest margin ¹	4.03		%				3.89		%
Cost of deposits	0.19		%				0.08		%
Net (recoveries) charge-offs	$	(14	)				$	(46	)
Net (recoveries) charge-offs to average loans	—		%				—		%
At Period End
Total assets	$	2,463,987		$	2,534,076		$	2,465,042
Loans:
Commercial and industrial	$	234,832		$	237,646		$	241,994
Real estate:
Commercial owner-occupied	306,327			310,588			317,587
Commercial investor-owned	878,969			878,494			839,667
Construction	63,563			72,271			57,015
Home equity	125,968			124,512			126,031
Other residential	124,120			117,558			108,829
Installment and other consumer loans	31,100			31,469			26,488
Total loans	$	1,764,879		$	1,772,538		$	1,717,611
Non-performing loans:²
Commercial and industrial	$	354		$	309		$	—
Home equity	157			346			385
Installment and other consumer loans	63			64			—
Total non-accrual loans	$	574		$	719		$	385
Classified loans (graded substandard and doubtful)	$	10,251		$	14,811		$	13,917
Total accruing loans 30-89 days past due	$	343		$	2,194		$	88
Allowance for loan losses to total loans	0.90		%	0.89		%	0.92		%
Allowance for loan losses to non-performing loans	27.59x			21.99x			41.11x
Non-accrual loans to total loans	0.03		%	0.04		%	0.02		%
Total deposits	$	2,102,040		$	2,178,629		$	2,137,723
Loan-to-deposit ratio	84.0		%	81.4		%	80.3		%
Stockholders' equity	$	327,667		$	320,664		$	304,198
Book value per share ⁴	$	23.99		$	23.26		$	21.76
Tangible common equity to tangible assets ³	12.0		%	11.4		%	11.0		%
Total risk-based capital ratio - Bank	14.6		%	13.9		%	13.5		%
Total risk-based capital ratio - Bancorp	15.2		%	14.9		%	15.2		%
Full-time equivalent employees	293			296			288
¹ Net interest income is annualized by dividing actual number of days in the period times 360 days.
² Excludes accruing troubled-debt restructured loans of $11.7 million, $14.0 million and $15.5 million at June 30, 2019, March 31, 2019 and June 30, 2018, respectively. Excludes purchased credit-impaired (PCI) loans with carrying values of $2.1 million that were accreting interest at June 30, 2019, March 31, 2019, and June 30, 2018. These amounts are excluded as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status.
³Tangible common equity to tangible assets is considered to be a meaningful non-GAAP financial measure of capital adequacy and is useful for investors to assess Bancorp's ability to absorb potential losses. Tangible common equity includes common stock, retained earnings and unrealized gain on available for sale securities, net of tax, less goodwill and intangible assets of $35.3 million, $35.5 million and $36.2 million at June 30, 2019, March 31, 2019, and June 30, 2018, respectively. Tangible assets exclude goodwill and intangible assets.
⁴Share and per share data have been adjusted to reflect the two-for-one stock split effective November 27, 2018.

BANK OF MARIN BANCORP

CONSOLIDATED STATEMENTS OF CONDITION

At June 30, 2019, March 31, 2019 and June 30, 2018



(in thousands, except share data; unaudited)	June 30, 2019		March 31, 2019			June 30, 2018
Assets
Cash and due from banks	$	58,757	$	51,639		$	83,855
Investment securities
Held-to-maturity, at amortized cost	148,879		152,845			170,652
Available-for-sale (at fair value; amortized cost $368,712, $442,386 and $397,268 at June 30, 2019, March 31, 2019 and June 30, 2018 respectively)	378,131		442,885			388,137
Total investment securities	527,010		595,730			558,789
Loans, net of allowance for loan losses of $15,835, $15,817 and $15,813 at June 30, 2019, March 31, 2019 and June 30, 2018, respectively	1,749,044		1,756,721			1,701,798
Bank premises and equipment, net	6,872		7,237			7,965
Goodwill	30,140		30,140			30,140
Core deposit intangible	5,128		5,349			6,032
Operating lease right-of-use assets	12,515		12,465			—
Interest receivable and other assets	74,521		74,795			76,463
Total assets	$	2,463,987	$	2,534,076		$	2,465,042

Liabilities and Stockholders' Equity
Liabilities
Deposits
Non-interest bearing	$	1,056,655	$	1,076,382		$	1,057,745
Interest bearing
Transaction accounts	121,232		130,001			132,272
Savings accounts	172,255		180,758			179,187
Money market accounts	647,592		680,806			631,479
Time accounts	104,306		110,682			137,040
Total deposits	2,102,040		2,178,629			2,137,723
Borrowings and other obligations	297		309			—
Subordinated debentures	2,674		2,657			5,802
Operating lease liabilities	14,332		14,349			—
Interest payable and other liabilities	16,977		17,468			17,319
Total liabilities	2,136,320		2,213,412			2,160,844

Stockholders' Equity
Preferred stock, no par value, Authorized - 5,000,000 shares, none issued	—		—			—
Common stock, no par value, Authorized - 30,000,000 shares; Issued and outstanding - 13,659,143, 13,786,808 and 13,983,642 at June 30, 2019, March 31, 2019 and June 30, 2018, respectively	132,151		137,125			146,195
Retained earnings	190,416		184,793			166,281
Accumulated other comprehensive income (loss), net of taxes	5,100		(1,254		)	(8,278		)
Total stockholders' equity	327,667		320,664			304,198
Total liabilities and stockholders' equity	$	2,463,987	$	2,534,076		$	2,465,042

BANK OF MARIN BANCORP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME



	Three months ended									Six months ended
(in thousands, except per share amounts; unaudited)	June 30, 2019			March 31, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Interest income
Interest and fees on loans	$	20,988		$	20,695		$	19,624		$	41,683		$	38,511
Interest on investment securities	3,763			4,097			3,499			7,860			6,656
Interest on federal funds sold and due from banks	190			139			285			329			688
Total interest income	24,941			24,931			23,408			49,872			45,855
Interest expense
Interest on interest-bearing transaction accounts	91			77			48			168			100
Interest on savings accounts	17			18			18			35			36
Interest on money market accounts	787			764			236			1,551			452
Interest on time accounts	175			119			140			294			296
Interest on borrowings and other obligations	24			47			1			71			1
Interest on subordinated debentures	58			60			123			118			237
Total interest expense	1,152			1,085			566			2,237			1,122
Net interest income	23,789			23,846			22,842			47,635			44,733
Provision for loan losses	—			—			—			—			—
Net interest income after provision for loan losses	23,789			23,846			22,842			47,635			44,733
Non-interest income
Service charges on deposit accounts	485			479			455			964			932
Wealth Management and Trust Services	473			438			488			911			1,003
Debit card interchange fees, net	414			380			360			794			756
Merchant interchange fees, net	87			87			118			174			198
Earnings on (cost of) bank-owned life insurance, net	235			(60		)	230			175			458
Dividends on FHLB stock	193			196			192			389			388
Gains (losses) on investment securities, net	61			(6		)	11			55			11
Other income	326			257			384			583			734
Total non-interest income	2,274			1,771			2,238			4,045			4,480
Non-interest expense
Salaries and related benefits	8,868			9,146			8,316			18,014			17,333
Occupancy and equipment	1,578			1,531			1,511			3,109			3,018
Depreciation and amortization	572			556			546			1,128			1,093
Federal Deposit Insurance Corporation insurance	174			179			191			353			382
Data processing	1,004			1,015			1,023			2,019			2,404
Professional services	535			586			810			1,121			2,109
Directors' expense	187			179			183			366			357
Information technology	284			259			264			543			533
Amortization of core deposit intangible	221			222			230			443			460
Provision for losses on off-balance sheet commitments	—			129			—			129			—
Other expense	1,493			1,726			1,435			3,219			2,901
Total non-interest expense	14,916			15,528			14,509			30,444			30,590
Income before provision for income taxes	11,147			10,089			10,571			21,236			18,623
Provision for income taxes	2,912			2,610			2,680			5,522			4,343
Net income	$	8,235		$	7,479		$	7,891		$	15,714		$	14,280
Net income per common share:¹
Basic	$	0.60		$	0.54		$	0.57		$	1.15		$	1.03
Diluted	$	0.60		$	0.54		$	0.56		$	1.13		$	1.02
Weighted average shares:¹
Basic	13,655			13,737			13,888			13,696			13,858
Diluted	13,818			13,924			14,066			13,871			14,039
Comprehensive income:
Net income	$	8,235		$	7,479		$	7,891		$	15,714		$	14,280
Other comprehensive income (loss)
Change in net unrealized gains or losses on available-for-sale securities	8,982			3,939			(1,131		)	12,921			(7,301		)
Reclassification adjustment for (gains) losses on available-for-sale securities in net income	(61		)	6			(11		)	(55		)	(11		)
Net unrealized losses on securities transferred from available-for-sale to held-to-maturity	—			—			(278		)	—			(278		)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity	104			101			132			205			268
Subtotal	9,025			4,046			(1,288		)	13,071			(7,322		)
Deferred tax expense (benefit)	2,671			1,198			(384		)	3,869			(2,168		)
Other comprehensive income (loss), net of tax	6,354			2,848			(904		)	9,202			(5,154		)
Comprehensive income	$	14,589		$	10,327		$	6,987		$	24,916		$	9,126

¹ Share and per share data have been adjusted to reflect the two-for-one stock split effective November 27, 2018.

BANK OF MARIN BANCORP

AVERAGE STATEMENTS OF CONDITION AND ANALYSIS OF NET INTEREST INCOME



		Three months ended						Three months ended						Three months ended
		June 30, 2019						March 31, 2019						June 30, 2018
				Interest						Interest						Interest
		Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(in thousands; unaudited)		Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Assets
	Interest-bearing due from banks¹	$	30,928	$	190	2.43	%	$	22,690	$	139	2.45	%	$	62,665	$	285	1.80	%
	Investment securities^{2, 3}	567,813		3,844		2.71	%	619,562		4,191		2.71	%	574,669		3,611		2.51	%
	Loans ^{1, 3, 4}	1,758,874		21,180		4.76	%	1,756,316		20,887		4.76	%	1,700,057		19,852		4.62	%
	Total interest-earning assets¹	2,357,615		25,214		4.23	%	2,398,568		25,217		4.21	%	2,337,391		23,748		4.02	%
	Cash and non-interest-bearing due from banks	34,437						30,947						40,383
	Bank premises and equipment, net	7,108						7,512						8,203
	Interest receivable and other assets, net	107,089						104,685						87,183
Total assets		$	2,506,249					$	2,541,712					$	2,473,160
Liabilities and Stockholders' Equity
	Interest-bearing transaction accounts	$	124,620	$	91	0.29	%	$	127,733	$	77	0.24	%	$	142,133	$	48	0.14	%
	Savings accounts	174,102		17		0.04	%	180,355		18		0.04	%	178,956		18		0.04	%
	Money market accounts	661,363		787		0.48	%	673,137		764		0.46	%	612,612		236		0.15	%
	Time accounts including CDARS	115,272		175		0.61	%	113,389		119		0.43	%	140,799		140		0.40	%
	Borrowings and other obligations ¹	3,608		24		2.59	%	7,414		47		2.55	%	231		1		1.84	%
	Subordinated debentures ¹	2,664		58		8.69	%	2,647		60		9.05	%	5,786		123		8.40	%
	Total interest-bearing liabilities	1,081,629		1,152		0.43	%	1,104,675		1,085		0.40	%	1,080,517		566		0.21	%
	Demand accounts	1,073,909						1,086,947						1,072,976
	Interest payable and other liabilities	28,621						32,163						19,443
	Stockholders' equity	322,090						317,927						300,224
Total liabilities & stockholders' equity		$	2,506,249					$	2,541,712					$	2,473,160
Tax-equivalent net interest income/margin ¹				$	24,062	4.04	%			$	24,132	4.02	%			$	23,182	3.92	%
Reported net interest income/margin ¹				$	23,789	3.99	%			$	23,846	3.98	%			$	22,842	3.87	%
Tax-equivalent net interest rate spread						3.80	%					3.81	%					3.81	%

								Six months ended						Six months ended
								June 30, 2019						June 30, 2018
										Interest						Interest
								Average		Income/		Yield/		Average		Income/		Yield/
(in thousands; unaudited)								Balance		Expense		Rate		Balance		Expense		Rate
Assets
	Interest-bearing due from banks ¹							$	26,832	$	329	2.44	%	83,641		688		1.64	%
	Investment securities ^{2, 3}							593,545		8,034		2.71	%	553,723		6,887		2.49	%
	Loans^{1, 3, 4}							1,757,602		42,067		4.76	%	1,687,841		38,971		4.59	%
	Total interest-earning assets ¹							2,377,979		50,430		4.22	%	2,325,205		46,546		3.98	%
	Cash and non-interest-bearing due from banks							32,702						43,084
	Bank premises and equipment, net							7,308						8,351
	Interest receivable and other assets, net							105,894						88,096
Total assets								$	2,523,883					2,464,736
Liabilities and Stockholders' Equity
	Interest-bearing transaction accounts							$	126,168	$	168	0.27	%	155,180		100		0.13	%
	Savings accounts							177,211		35		0.04	%	179,601		36		0.04	%
	Money market accounts							667,218		1,551		0.47	%	597,868		452		0.15	%
	Time accounts including CDARS							114,336		294		0.52	%	147,633		296		0.40	%
	Borrowings and other obligations ¹							5,500		71		2.56	%	116		1		1.84	%
	Subordinated debentures ¹							2,655		118		8.87	%	5,770		237		8.16	%
	Total interest-bearing liabilities							1,093,088		2,237		0.41	%	1,086,168		1,122		0.21	%
	Demand accounts							1,080,392						1,061,304
	Interest payable and other liabilities							30,383						18,180
	Stockholders' equity							320,020						299,084
Total liabilities & stockholders' equity								$	2,523,883					2,464,736
Tax-equivalent net interest income/margin ¹										$	48,193	4.03	%			45,424		3.89	%
Reported net interest income/margin¹										$	47,635	3.98	%			44,733		3.83	%
Tax-equivalent net interest rate spread												3.81	%					3.77	%

¹Interest income/expense is divided by actual number of days in the period times 360 days to correspond to stated interest rate terms, where applicable.
²Yields on available-for-sale securities are calculated based on amortized cost balances rather than fair value, as changes in fair value are reflected as a component of stockholders' equity. Investment security interest is earned on 30/360 day basis monthly.
³Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the Federal statutory rate of 21 percent in 2019 and 2018.
⁴Average balances on loans outstanding include non-performing loans. The amortized portion of net loan origination fees is included in interest income on loans, representing an adjustment to the yield.