Calif. bank's bond sale means short-term hit but 2026 boost

Bank of Marin Bancorp in Novato, California, sold $595 million in low-yielding securities, resulting in a fourth-quarter loss of $59 million. However, the reinvestment in higher-yielding assets is expected to boost annual earnings by $8.3 million and enhance profitability in 2026 and 2027. Analysts predict tangible book value growth of over 10% in both years. The bank also executed a $45 million private placement of subordinated debt to offset the capital impact of the sale.