Bank of Marin Bancorp in Novato, Calif., lost $204 million of deposits over the final weeks of March.
The $4.1 billion-asset company said in a press release that the outflows occurred between March 10, when Silicon Valley Bank failed, and March 31. Overall, deposits fell by 9% in the first quarter from the end of 2022.
A review of the 100 relationships with the biggest net outflows found that 83% moved funds to cover normal business activities, while 14% moved to outside brokerage firms or other financial institutions. About 3% moved deposits to Bank of Marin’s wealth management and trust services department.
While customer outreach kept many accounts in the fold, it resulted in a 32-basis-point increase in the cost of deposits as the bank “balanced the level of deposits against cost.”
Separately, Bank of Marin said it closed four branches in the first quarter.
The company said that the purchase of American River Bank caused an overlap in the Santa Rosa and Healdsburg markets. Its Tiburon and Buckhorn branches were also in close proximity to other branches.
The closures should create about $1.4 million in annual pretax savings.
Net income fell by 9.8% from a year earlier, to $9.4 million, reflecting a spike in funding costs, a $350,000 loan-loss provision and slightly higher noninterest expenses.