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Bank of Marin Completes Balance Sheet Repositioning Supported by $45 Million Subordinated Debt Offering
NOVATO, Calif., November 19, 2025--Bank of Marin Completes Balance Sheet Repositioning Supported by $45 Million Subordinated Debt Offering
About this update from Bank Of Marin Bancorp
[{"type":"text","content":"Receives Investment Grade Debt Ratings From KBRA","length":48,"tagName":"p","attribs":{}},{"type":"text","content":"NOVATO, Calif., November 19, 2025--(BUSINESS WIRE)--Bank of Marin Bancorp (Nasdaq: BMRC), ("the Company"), parent company of Bank of Marin, announced today the completion of a balance sheet repositioning of its held-to-maturity ("HTM") securities and a $45 million private placement of its 6.750% Fixed-to-Floating Rate Subordinated Notes due 2035 (the "Notes").","length":392,"tagName":"p"},{"type":"text","content":"Tim Myers, president and chief executive officer of Bank of Marin, said, "The successful execution of this strategic initiative further enhances the value of our franchise by meaningfully improving our earnings power, which, in turn, allows us to continue reinvesting in the Company's growth. We took a targeted approach to securities sales, and in combination with our strong capital position, we completed this balance sheet repositioning without issuing additional shares of equity while maintaining our strong capital ratios. We believe this demonstrates our thoughtful approach and ongoing commitment to proactively creating value for our shareholders."","length":672,"tagName":"p"},{"type":"text","content":"The Company reclassified its entire HTM securities portfolio into available-for-sale ("AFS") and will book a fourth quarter 2025 balance sheet adjustment for the difference between the market value and the book value on the date of transfer, adjusted for losses already captured in accumulated other comprehensive income. BMRC estimates this net amount to be approximately $59 million after-tax based on valuations as of October 31, 2025 and our statutory tax rate of 29.56%, which will be a negative adjustment to equity.","length":532,"tagName":"p"},{"type":"text","content":"While BMRC's equity will reflect the loss of the entire HTM transfer, its regulatory capital ratios will only be impacted by realized losses on securities sold. As such, BMRC took a highly targeted approach to securities sales with the goal of maximizing the amount of expected incremental income relative to the impact to our regulatory capital ratios, which is similar to the method applied to prior balance sheet repositionings. BMRC elected to sell approximately 74% of the HTM port...