Bank of Marin's parent company saw its profits fall in the first three months as it closed some branches, and took time to assure customers of the safety of the bank.
Bank of Marin Bancorp, based in Novato (Nasdaq BMRC), earned a net profit of $9.44 millions in the first quarter. This is down from $10.50 million the previous year. This year's first quarter also saw the aftermath of the failure by Silicon Valley Bank.
In a press release, Bank of Marin CEO Tim Myers said: "Given the volatility of the industry in mid-March we have expanded our strategic pricing discussions with customers in order to ease concerns and reinforce confidence in our financial stability, ample liquidity, and robust capital levels."
Bank of Marin acquired American River Bankshares two years ago, gaining a stronger local presence in Sacramento.
Bank of Marin stated that its bankers had already been in discussion with clients regarding deposit structure and pricing as early as the first quarter. This helped the bank navigate through the turmoil in the banking industry following the failure of Silicon Valley Bank which was closed on March 10 after a run against its deposits.
SVB deposits of more than 90% were not covered by the Federal Deposit Insurance Corp. This accelerated the bank's run in Santa Clara.
Bank of Marin reported that as of March 31, 67% of their total deposits were covered by FDIC.
Bank of Marin reported a decline of $203.6 million in deposits from March 10 to March 31.
The bank stated that the majority of this decline was due to normal business activities such as vendor payments, tax, payroll, and other business-related payment.
Bank of Marin's deposits at the end of the first quarter were $3.25 billion compared to $3.57 billion on December 31. Bank of Marin said that it opened more than 1,000 new accounts in the first three months, totaling $60 million.
Bank of Marin has closed four branches, including two in Sonoma County. Due to its acquisition of American River Bank, it had branches that overlapped. Bank of Marin acquired American River Bankshares in Rancho Cordova for $125 million, as announced in April 2021.
In the first quarter of this year, overlapping branches were closed in Santa Rosa and Healdsburg in addition to Tiburon and Buckhorn in Marin County. Bank of Marin expects to save $470,000 in pretaxes this year and $1.4 million annually due to the closure of the branches. The bank has now 27 retail branches, eight commercial offices and is spread across 10 counties.
Bank of Marin's assets in the first quarter were $4.16 billion compared to $4.35 billion at the same point last year.