President’s Corner

Another record quarter—and year—is in the books.

Driven by prudent lending, careful expense control, strong credit quality and earnings accretion from our 2021 acquisition of American River Bank, Bank of Marin once again generated record net income for the fourth quarter and full-year 2022. We reported fourth-quarter earnings of $12.9 million, up from our prior record of $12.2 million for the third quarter. For all of 2022, earnings totaled $46.6 million, compared to $33.2 million for 2021.

Citing the consistency and strength of our results, our Board of Directors declared a quarterly cash dividend of $0.25 per share; our 71st consecutive quarterly cash dividend.

During the fourth quarter, we saw loan demand soften moderately, reflecting rising interest rates and continued expectations for a potential recession this year. In keeping with our long tradition of sound underwriting, our bankers remain selective, focusing on appropriately risk-adjusted opportunities that we believe will enable us to maintain high credit quality through any downturn.

Importantly, our quarterly and full-year results are a direct reflection of our commitment to disciplined banking fundamentals and our relationship banking model. We provide exceptional service and local market expertise, deepening ties with our customers without competing strictly on price or taking unnecessary risks.

We maintained our low cost of deposits with strong liquidity, and continue to improve our credit risk profile.  Our asset-sensitive balance sheet bolstered our lending profitability in 2022, driving yields on interest-earning assets, and this will continue to help as we diligently work to protect our net interest margin in 2023.

In summary, we are well-positioned to generate consistent performance and attractive returns to our shareholders in the year ahead.

We appreciate the support of our shareholders, the loyalty and trust of our customers, and dedication of our employees.