Bank of Marin Bancorp filed SEC Form 8-K: Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
$BMRC
Major Banks
Finance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 23, 2026
(Exact name of Registrant as specified in its charter)
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Registrant’s telephone number, including area code: (415 ) 763-4520
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | |||||
Section 4 – Matters Related to Accountants and Financial Statements
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
(a) Restatement of Historical Financial Results
On February 23, 2026, the Board of Directors (the “Board”) of Bank of Marin Bancorp (the “Company”), based on the recommendation of, and after consultation with, the Board’s Audit Committee, the Company’s management and the Company’s independent registered public accounting firm, Baker Tilly, concluded that the Company’s previously issued audited consolidated financial statements as of and for the years ended December 31, 2024 and 2023 and the unaudited financial statements as of and for the interim periods ended September 30, 2025, June 30, 2025, March 31, 2025, September 30, 2024, June 30, 2024, and March 31, 2024 (the “Affected Periods”) included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and the Company’s Quarterly Reports on Form 10-Q for each of the applicable interim periods (the financial statements contained in such reports, the “Affected Financials”), should no longer be relied upon due to certain errors made in the Company’s accounting related to the classification of certain reciprocal network deposits and related interest expense as non-interest bearing deposits and non-interest expense that were determined to be material to the Company’s financial condition as reflected in the Affected Financials. Similarly, related earnings releases, press releases, shareholder communications, investor presentations or other communications describing relevant portions of the Affected Financials should no longer be relied upon.
The adjustments required to be made in the Affected Financials were as a result of errors that the Company’s current management identified during the Company’s annual review process related to the preparation of its consolidated financial statements for the year ended December 31, 2025. The errors resulted in impacts to certain line items of the Company’s balance sheet and income statement but did not impact the Company’s net income or earnings per share for any of the Affected Periods. Certain deposits were included in non-interest bearing deposits when they should have been included in interest bearing deposits. Additionally, the expense related thereto was included in deposit network fees within non-interest operating expense instead of interest expense, although the mistaken classification of the expense was determined not to be material and had no impact on net income or earnings per share. The required reclassifications on the balance sheet from non-interest bearing deposits to interest bearing deposits were determined to be material, although the reclassifications are not expected to have any impact on total balance sheet amounts, including total deposits and stockholders’ equity for the Affected Periods. The adjustments to the Company’s income statements for the Affected Periods were deemed necessary for consistency of presentation between prior periods once the adjustments were made to interest expense and non-interest expense for 2025. Because the corrections of these misstatements have, taken as a whole, been determined to be material to the Affected Financials, the Board concluded that the Affected Financials should no longer be relied upon.
A summary of adjustments expected to be made for the years ended December 31, 2023, 2024 and 2025 will include “as reported” and “as adjusted” values for metrics including:
•Non-interest bearing deposits, both end of period and average;
•Interest bearing deposits, both end of period and average;
•Non-interest bearing deposits as a percentage of total deposits;
•Interest expense;
•Net interest income
•Non-interest expense;
•Net interest margin, both reported and tax-equivalent;
•Cost of deposits;
•Cost of interest-bearing deposits;
•Efficiency ratio, both GAAP and non-GAAP
A table reflecting management’s preliminary determination of the adjustments for the Affected Periods follows:
| Summary of Reclassifications and Impacts | ||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | FY 2025 | FY 2024 | FY 2023 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |||||||||||||||||||||||||||
| Non-interest-Bearing Deposits - end of period | ||||||||||||||||||||||||||||||||||||||
| As reported | 1,492,249 | 1,399,900 | 1,441,987 | 1,492,249 | 1,458,230 | 1,379,814 | 1,426,446 | 1,399,900 | 1,473,379 | 1,417,661 | 1,444,435 | |||||||||||||||||||||||||||
| As Adjusted | 1,254,416 | 1,274,747 | 1,309,711 | 1,254,416 | 1,245,247 | 1,218,648 | 1,277,505 | 1,274,747 | 1,331,853 | 1,285,901 | 1,318,261 | |||||||||||||||||||||||||||
| Change | -237,833 | -125,153 | -132,276 | -237,833 | -212,983 | -161,166 | -148,941 | -125,153 | -141,526 | -131,760 | -126,174 | |||||||||||||||||||||||||||
| Interest-Bearing Deposits - end of period | ||||||||||||||||||||||||||||||||||||||
| As reported | 1,923,293 | 1,820,115 | 1,848,088 | 1,923,293 | 1,924,346 | 1,865,234 | 1,875,525 | 1,820,115 | 1,835,870 | 1,796,116 | 1,839,667 | |||||||||||||||||||||||||||
| As Adjusted | 2,161,126 | 1,945,268 | 1,980,364 | 2,161,126 | 2,137,329 | 2,026,400 | 2,024,466 | 1,945,268 | 1,977,396 | 1,927,876 | 1,965,841 | |||||||||||||||||||||||||||
| Change | 237,833 | 125,153 | 132,276 | 237,833 | 212,983 | 161,166 | 148,941 | 125,153 | 141,526 | 131,760 | 126,174 | |||||||||||||||||||||||||||
| Non-interest-Bearing Deposits as a percentage of Total Deposits - end of period | ||||||||||||||||||||||||||||||||||||||
| As reported | 43.7% | 43.5% | 43.8% | 43.7% | 43.1% | 42.5% | 43.2% | 43.5% | 44.5% | 44.1% | 44.0% | |||||||||||||||||||||||||||
| As Adjusted | 36.7% | 39.6% | 39.8% | 36.7% | 36.8% | 37.6% | 38.7% | 39.6% | 40.2% | 40.0% | 40.1% | |||||||||||||||||||||||||||
| Change | -7.0% | -3.9% | -4.0% | -7.0% | -6.3% | -5.0% | -4.5% | -3.9% | -4.3% | -4.1% | -3.8% | |||||||||||||||||||||||||||
| Non-interest-Bearing Deposits - average | ||||||||||||||||||||||||||||||||||||||
| As reported | 1,433,223 | 1,448,346 | 1,656,047 | 1,506,847 | 1,419,872 | 1,398,570 | 1,406,648 | 1,452,966 | 1,460,011 | 1,421,543 | 1,458,686 | |||||||||||||||||||||||||||
| As Adjusted | 1,261,562 | 1,316,737 | 1,544,208 | 1,285,578 | 1,254,958 | 1,245,025 | 1,260,482 | 1,318,943 | 1,321,648 | 1,290,874 | 1,335,405 | |||||||||||||||||||||||||||
| Change | -171,661 | -131,609 | -111,839 | -221,269 | -164,914 | -153,545 | -146,166 | -134,023 | -138,363 | -130,669 | -123,281 | |||||||||||||||||||||||||||
| Interest-Bearing Deposits - average | ||||||||||||||||||||||||||||||||||||||
| As reported | 1,886,828 | 1,838,015 | 1,726,811 | 1,925,424 | 1,925,873 | 1,855,477 | 1,839,161 | 1,831,956 | 1,820,531 | 1,839,468 | 1,860,365 | |||||||||||||||||||||||||||
| As Adjusted | 2,058,489 | 1,969,624 | 1,838,650 | 2,146,693 | 2,090,787 | 2,009,022 | 1,985,327 | 1,965,979 | 1,958,894 | 1,970,137 | 1,983,646 | |||||||||||||||||||||||||||
| Change | 171,661 | 131,609 | 111,839 | 221,269 | 164,914 | 153,545 | 146,166 | 134,023 | 138,363 | 130,669 | 123,281 | |||||||||||||||||||||||||||
| Interest Expense | ||||||||||||||||||||||||||||||||||||||
| As reported | 42,196 | 46,613 | 36,733 | 10,651 | 10,876 | 10,376 | 10,293 | 11,246 | 12,050 | 11,865 | 11,452 | |||||||||||||||||||||||||||
| As Adjusted | 46,391 | 49,691 | 39,142 | 12,051 | 11,913 | 11,316 | 11,111 | 11,970 | 12,866 | 12,672 | 12,183 | |||||||||||||||||||||||||||
| Change | 4,195 | 3,078 | 2,409 | 1,400 | 1,037 | 940 | 818 | 724 | 816 | 807 | 731 | |||||||||||||||||||||||||||
| Net Interest Income | ||||||||||||||||||||||||||||||||||||||
| As reported | 110,232 | 94,660 | 102,761 | 31,181 | 28,193 | 25,912 | 24,946 | 25,230 | 24,269 | 22,467 | 22,694 | |||||||||||||||||||||||||||
| As Adjusted | 106,037 | 91,582 | 100,352 | 29,781 | 27,156 | 24,972 | 24,128 | 24,506 | 23,453 | 21,660 | 21,963 | |||||||||||||||||||||||||||
| Change | -4,195 | -3,078 | -2,409 | -1,400 | -1,037 | -940 | -818 | -724 | -816 | -807 | -731 | |||||||||||||||||||||||||||
| Non-interest Expense | ||||||||||||||||||||||||||||||||||||||
| As reported | 85,505 | 81,818 | 79,481 | 21,423 | 21,328 | 21,490 | 21,264 | 18,338 | 20,417 | 21,894 | 21,169 | |||||||||||||||||||||||||||
| As Adjusted | 81,310 | 78,740 | 77,072 | 20,023 | 20,291 | 20,550 | 20,446 | 17,614 | 19,601 | 21,087 | 20,438 | |||||||||||||||||||||||||||
| Change | -4,195 | -3,078 | -2,409 | -1,400 | -1,037 | -940 | -818 | -724 | -816 | -807 | -731 | |||||||||||||||||||||||||||
| Net Interest Margin, reported | ||||||||||||||||||||||||||||||||||||||
| As reported | 3.04% | 2.61% | 2.60% | 3.31% | 3.07% | 2.91% | 2.84% | 2.78% | 2.68% | 2.50% | 2.48% | |||||||||||||||||||||||||||
| As Adjusted | 2.92% | 2.53% | 2.54% | 3.16% | 2.95% | 2.81% | 2.75% | 2.70% | 2.59% | 2.41% | 2.40% | |||||||||||||||||||||||||||
| Change | -0.12% | -0.08% | -0.06% | -0.15% | -0.12% | -0.10% | -0.09% | -0.08% | -0.09% | -0.09% | -0.08% | |||||||||||||||||||||||||||
| Net Interest Margin, tax-equivalent | ||||||||||||||||||||||||||||||||||||||
| As reported | 3.06% | 2.63% | 2.63% | 3.32% | 3.08% | 2.93% | 2.86% | 2.80% | 2.70% | 2.52% | 2.50% | |||||||||||||||||||||||||||
| As Adjusted | 2.94% | 2.55% | 2.56% | 3.18% | 2.97% | 2.83% | 2.77% | 2.72% | 2.61% | 2.43% | 2.42% | |||||||||||||||||||||||||||
| Change | -0.12% | -0.08% | -0.06% | -0.14% | -0.11% | -0.10% | -0.09% | -0.08% | -0.09% | -0.09% | -0.08% | |||||||||||||||||||||||||||
| Cost of Deposits | ||||||||||||||||||||||||||||||||||||||
| As reported | 1.26% | 1.41% | 0.74% | 1.19% | 1.29% | 1.28% | 1.29% | 1.36% | 1.46% | 1.45% | 1.38% | |||||||||||||||||||||||||||
| As Adjusted | 1.39% | 1.50% | 0.82% | 1.35% | 1.41% | 1.39% | 1.39% | 1.45% | 1.56% | 1.54% | 1.47% | |||||||||||||||||||||||||||
| Change | 0.13% | 0.09% | 0.07% | 0.16% | 0.12% | 0.11% | 0.10% | 0.09% | 0.10% | 0.09% | 0.09% | |||||||||||||||||||||||||||
| Cost of Interest-Bearing Deposits | ||||||||||||||||||||||||||||||||||||||
| As reported | 2.22% | 2.52% | 1.46% | 2.12% | 2.24% | 2.24% | 2.27% | 2.44% | 2.63% | 2.56% | 2.46% | |||||||||||||||||||||||||||
| As Adjusted | 2.24% | 2.51% | 1.50% | 2.16% | 2.26% | 2.26% | 2.27% | 2.42% | 2.61% | 2.56% | 2.45% | |||||||||||||||||||||||||||
| Change | 0.02% | -0.01% | 0.04% | 0.04% | 0.02% | 0.02% | 0.00% | -0.02% | -0.02% | 0.00% | -0.01% | |||||||||||||||||||||||||||
| Efficiency Ratio, GAAP | ||||||||||||||||||||||||||||||||||||||
| As reported | 254.6% | 111.6% | 73.8% | -60.4% | 68.9% | 208.8% | 76.4% | 65.5% | 75.2% | -300.4% | 83.2% | |||||||||||||||||||||||||||
| As Adjusted | 276.7% | 112.1% | 73.2% | -54.3% | 67.9% | 219.8% | 75.7% | 64.6% | 74.4% | -260.5% | 82.7% | |||||||||||||||||||||||||||
| Change | 22.1% | 0.5% | -0.6% | 6.1% | -1.1% | 11.0% | -0.7% | -0.9% | -0.7% | 39.9% | -0.5% | |||||||||||||||||||||||||||
| Efficiency Ratio, non-GAAP excluding losses on securities sales | ||||||||||||||||||||||||||||||||||||||
| As reported | 70.2 | % | 77.3 | % | 73.8 | % | 63.0 | % | 68.9 | % | 74.0 | % | 76.4 | % | 65.5 | % | 75.2 | % | 86.7 | % | 83.2 | % | ||||||||||||||||
| As Adjusted | 69.1 | % | 76.6 | % | 73.2 | % | 61.4 | % | 67.9 | % | 73.2 | % | 75.7 | % | 64.6 | % | 74.4 | % | 86.3 | % | 82.7 | % | ||||||||||||||||
| Change | -1.1 | % | -0.7 | % | -0.6 | % | -1.6 | % | -1.1 | % | -0.9 | % | -0.7 | % | -0.9 | % | -0.8 | % | -0.4 | % | -0.5 | % | ||||||||||||||||
The foregoing summary is preliminary and while the Company expects to report such estimated adjustments to the Affected Financials, there can be no assurance that the final adjustments made as part of any restatement will not differ materially from these estimates. The Company encourages the review of the complete corrected financial statements discussed below under, “Next Steps”.
Controls and Procedures
Due to the discovery of these errors, the Company’s management is evaluating the Company’s internal control over financial reporting (“ICFR”) as of December 31, 2025, relating thereto. If, and to the extent that, any material weakness is identified in its ICFR, the Company will provide further specifics on its ICFR and its remediation plan in its Annual Report on Form 10-K for the year ended December 31, 2025.
The Company’s management, the Audit Committee and the Board discussed the matters disclosed in this Item 4.02 with Baker Tilly, the Company’s independent registered public accounting firm.
Next Steps
As a result of the misstatements, the Company plans to restate its consolidated financial statements for each of the Affected Periods, which the Company expects to file with the U.S. Securities and Exchange Commission as soon as it is practicable to do so.
Safe Harbor Statement
This Current Report on Form 8-K includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including statements regarding the Company’s anticipated restatement of the Affected Financials and the intended timing of the filing of reports with the SEC, are forward-looking statements. The Company generally identifies forward-looking statements by using words like “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “intend,” “may,” “plan,” “position,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. Forward-looking statements are based on the Company’s current intentions, beliefs and expectations regarding future events based on information that is currently available. The Company cannot guarantee that any forward-looking statement will be accurate. Readers should realize that if underlying assumptions prove inaccurate or if known or unknown risks or uncertainties materialize, actual results could differ materially from the Company’s expectations. Readers are, therefore, cautioned not to place undue reliance on any forward-looking statement. Any forward-looking statement speaks only as of the date of this Current Report on Form 8-K, and, except as required by law, the Company does not undertake any obligation to update any forward-looking statement to reflect new information, events or circumstances.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: | 2/24/2026 | BANK OF MARIN BANCORP | ||||||||||||
| By: | /s/ David Bonaccorso | |||||||||||||
| David Bonaccorso | ||||||||||||||
| Executive Vice President | ||||||||||||||
| and Chief Financial Officer | ||||||||||||||