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Basis of Presentation
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
The consolidated financial statements include the accounts of Bancorp, a bank holding company, and its wholly-owned bank subsidiary, Bank of Marin, a California state-chartered commercial bank. References to “we,” “our,” “us” mean Bancorp and the Bank that are consolidated for financial reporting purposes. The accompanying unaudited consolidated interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to those rules and regulations.

Although we believe that the disclosures are adequate and the information presented is not misleading, we suggest that these interim financial statements be read in conjunction with the annual financial statements and the notes thereto included in our 2024 Annual Report on Form 10-K.  In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, which are necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income (loss), changes in stockholders’ equity, and cash flows for the periods presented. All material intercompany transactions have been eliminated. The results of these interim periods may not be indicative of the results for the full year or for any other period.

Segment Reporting: Our Chief Operating Decision Maker ("CODM") is our Chief Executive Officer, who reviews our financial information on a consolidated basis for purposes of evaluating financial performance and allocating resources. We have one operating and reportable segment, community banking, and our other operating segment, wealth management services, does not meet the quantitative threshold for separate reporting. Our CODM reviews consolidated net income before provision for income taxes as our primary measure of profitability alongside significant expense information consistent with the expense captions presented in our Consolidated Statements of Comprehensive Income (Loss). These metrics are used by our CODM to monitor actual results and to benchmark to our peers. Segment assets are equal to consolidated total assets in our Consolidated Statements of Condition and all segment non-cash items are equal to those disclosed in our Consolidated Statements of Cash flows. We derive materially all of our income from activities within the United States, and materially all of our long lived assets are physically located within the United States. No single customer or client relationship accounts for ten percent or more of our income.
Segment revenue, profit or loss, significant segment expenses and other segment items
Three months ended
(in thousands)March 31, 2025December 31, 2024March 31, 2024
Community banking segment:
Interest income
$35,239 $36,476 $34,146 
Non-interest income
2,311 2,177 2,201 
Reconciliation of income
All other income1
563 576 553 
Total consolidated income
38,113 39,229 36,900 
Less:2
Total interest expense10,293 11,246 11,452 
Provision for credit losses on loans
75 — 350 
Provision for credit losses on unfunded loan commitments
— — — 
Non-interest expense
Salaries and related benefits11,838 9,235 11,838 
Occupancy and equipment2,106 2,127 1,968 
Data processing1,079 1,030 1,070 
Deposit network fees932 838 798 
Information technology413 432 402 
Charitable contributions403 30 12 
Federal Deposit Insurance Corporation insurance388 420 435 
Professional services784 968 951 
Depreciation and amortization322 341 388 
Directors' expense304 297 317 
Amortization of core deposit intangible227 237 251 
Other real estate owned— — — 
Other expense2,036 1,965 2,303 
Segment income
6,913 10,063 4,365 
Reconciliation of segment income
All other loss1
432 418 436 
Income before income taxes
$6,481 $9,645 $3,929 
1Other income and loss from segment below the quantitative thresholds are attributable to one operating segment of the Bank, the Wealth Management and Trust Services, which does not meet the quantitative thresholds for presenting reportable segments. Expenses of Wealth Management and Trust Services are comprised of salary and employee benefits, professional services, data processing, occupancy and equipment and other expenses totaling $432 thousand, $418 thousand, and $436 thousand, for the periods presented above, respectively
2The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.

Earnings Per Share: The following table shows: 1) weighted average basic shares, 2) potentially dilutive weighted average common shares related to stock options and unvested restricted stock awards, and 3) weighted average diluted shares. Basic earnings (loss) per share (“EPS”) are calculated by dividing net income by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares. The number of potentially dilutive common shares included in the quarterly diluted EPS is computed using the average market prices during the three months included in the reporting period under the treasury stock method. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. In computing diluted EPS, we exclude anti-dilutive shares such as options whose exercise prices exceed the current common stock price, as they would not reduce EPS under the treasury stock method. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Under the two-class method, the difference in EPS is nominal for these participating securities.
Three months ended
(in thousands, except per share data)March 31, 2025March 31, 2024
Weighted average basic common shares outstanding15,977 16,081 
Potentially dilutive common shares related to:
Stock options— — 
Unvested restricted stock awards25 11 
Weighted average diluted common shares outstanding16,002 16,092 
Net income (loss)
$4,876 $2,922 
Basic earnings (loss) per common share
$0.31 $0.18 
Diluted earnings (loss) per common share$0.30 $0.18 
Weighted average anti-dilutive common shares not included in the calculation of diluted EPS274 340