Bank of Marin Bancorp (NASDAQ:BMRC) Q2 2023 Earnings Call Transcript

Matthew Clark: Okay. Got it. And then just shifting gears to the office CRE portfolio, what do you have in terms of — what you have in that is going to be maturing or repricing through the end of this year, maybe even through next year? And whether or not you — and whether or not you…

Tim Myers: We have about 10 loans maturing the rest of this year and a little bit more than that into next year. So not a tremendous number. That’s just within the investor office space.

Matthew Clark: Okay. Got it. Thank you. And then housekeeping item, Tani, on the tax rate going forward, I know it’s a little low this quarter.

Tani Girton: Yeah. So it’s particularly low this quarter because with the earnings for the quarter, what that does is it reduces the rate for the full year. So there’s some adjusting going on there. So that had a big impact. That was the biggest driver.

Matthew Clark: And the rate going forward, would you — 26.5% still?

Tani Girton: Yeah. So that rate, because we — because we adjust it to reflect future — what the future expectation is for the full year provision, I think that that’s — let me just take one quick look. I think that that’s — I don’t think it’s going to be 26% — it was 26.70% last quarter, it’s — I don’t think it’s going to be that high going forward. Because it was down to 22.5% this quarter due to the — all those shifts. So I think it will balance out somewhere between those.

Matthew Clark: Okay. Thank you.

Operator: And speakers, there are no further questions at this time. Please continue with your presentation or closing remarks.

Tani Girton: So we had one more question from the participants online. Can you talk about the duration on the swaps? Should we assume they are immediately accretive to the net margin? So I gave the detail on the swaps. Yes, they are immediately accretive to the net interest margin as of where they are priced right now and including a 25 basis point increase in the Fed. It’s roughly somewhere between $500,000 to $700,000 pickup in net interest margin for the year on an annual basis, I should say.

Tim Myers: With that, I want to thank everybody for your questions, your interest and support, and I look forward to talking to you all next quarter.

Tani Girton: Thank you.