Bank of Marin Bancorp reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant fluctuations in revenue and profitability compared to previous periods.

For the three months ended September 30, 2024, the bank achieved a net income of $4.57 million, a recovery from a net loss of $21.90 million in the previous quarter. However, this figure represents a decline from the $5.30 million net income reported in the same quarter of 2023. The diluted earnings per share for Q3 2024 were $0.28, compared to a loss per share of $(1.36) in Q2 2024 and $0.33 in Q3 2023. For the nine months ended September 30, 2024, the bank reported a net loss of $14.41 million, a stark contrast to the net income of $19.29 million for the same period in 2023.

Total interest income for Q3 2024 was $36.32 million, up from $34.33 million in Q2 2024 and $35.10 million in Q3 2023. Net interest income for the quarter was $24.27 million, an increase from $22.47 million in the previous quarter but a decrease from $24.47 million in the same quarter last year. The tax-equivalent net interest margin improved to 2.70% in Q3 2024, up from 2.52% in Q2 2024, but down from 2.66% in Q3 2023.

The bank's total assets as of September 30, 2024, were $3.79 billion, a slight decrease from $3.80 billion at the end of 2023. Total deposits increased to $3.31 billion, up from $3.29 billion at year-end 2023. Non-interest bearing deposits represented 44.5% of total deposits, an increase from 43.8% at the end of 2023.

In terms of strategic developments, the bank repurchased 220,000 shares of common stock for $4.2 million during the quarter, as part of a $25 million share repurchase program approved in July 2023. Additionally, the bank recorded a non-recurring legal accrual of $615,000 related to a class action lawsuit, impacting earnings per share by an estimated $0.04.

The bank's allowance for credit losses on loans increased to 1.47% of total loans as of September 30, 2024, compared to 1.21% at the end of 2023. Non-accrual loans rose significantly to $39.9 million, or 1.91% of total loans, up from $8.0 million, or 0.39%, at year-end 2023.

Overall, Bank of Marin Bancorp's financial performance in Q3 2024 reflects a recovery from prior losses, although challenges remain evident in profitability and credit quality metrics compared to the previous fiscal year.