Bank Of Marin Bancorp · NASDAQ:BMRC
Bank Of Marin Bancorp — 2020 D.A. Davidson Financial Institutions Virtual Conference
21 slides from Bank Of Marin Bancorp's conference presentation, May 5, 2020
Slide 1: Navigating today's challenges with expense discipline, risk management and financial strength
Navigating today’s challenges with expense discipline, risk management and financial strength. 2020 D.A. Davidson Financial Institutions Virtual Conference May 6-8, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact Bancorp's earnings in future periods. Forward-looking statements can be identified by
Slide 3: Bank of Marin Bancorp
Bank of Marin Bancorp Headquarters Novato, California Marin County, North of San Francisco Employees, full-time equivalent 296 Assets $2.70 billion Market capitalization $407 million Total loans $1.84 billion Total deposits $2.31 billion Footprint 24 locations in San Francisco Bay Area Ticker BMRC (
Slide 4: Years of Combined Management Experience Through Economic Cycles
284 Years of Combined Management Experience Through Economic Cycles Russell A. Colombo James T. Burke Tani Girton President, Chief Executive Officer EVP, Chief Information Officer EVP, Chief Financial Officer • 44 years in banking • 45 years in financial services • 34 years in financial services • C
Slide 5: COVID-19 Response – Customer and Employee Support
COVID-19 Response – Customer and Employee Support For Our Branches For Our Offices For Our Customers • Approximately 55% of • All open • Waived all ATM and non-retail staff working overdraft fees • Modified hours remotely • Travel restrictions • Cancelled early • Social distancing – withdrawal penal
Slide 6: COVID-19 Response – Paycheck Protection Program (PPP)
COVID-19 Response – Paycheck Protection Program (PPP) • Bank of Marin applied for and received approval to participate in PPP as an SBA Lender. • Developed and implemented a new process to submit applications to the SBA portal by utilizing the FISCARES system. • Assigned a core team of 50 people who
Slide 7: COVID-19 Response – Payment Relief Program
COVID-19 Response – Payment Relief Program • Provide immediate relief to Bank of Marin clients experiencing hardship • No additional information or underwriting required, streamlined processing for existing clients • Up to 120 days interest only payments or up to 120 days full deferral of principal
Slide 8: COVID-19 Response – Exposure to Sensitive Industries
COVID-19 Response – Exposure to Sensitive Industries Outstanding % Real Estate Industry/Property Segment Average LTV Balance Related Retail $191,375,752 97% 38.60% Transportation Services $1,452,297 0% Dental Office $6,212,745 56% 34.56% Hotel/Motel $49,330,461 94% 37.91% Health Clubs/Movie Theaters
Slide 9: Balanced Approach to Growth Creates Long-Term Value
Balanced Approach to Growth Creates Long-Term Value Total annual shareholder return averages 10.6% over 20 years1 50 45 40 35 $31.00 30 $26.50 25 1 20 5 year return: 5.2% 1 15 10 year return: 8.1% 10 1As of March 31, 2020 Prior period share and per share $1.30 data have been adjusted to reflect 5 th
Slide 10: Leading Community and Commercial Bank in Resilient San Francisco Bay Area Economy
Leading Community and Commercial Bank in Resilient San Francisco Bay Area Economy • Extensive knowledge of local markets and deep industry expertise. • 22 branches, 5 commercial banking offices, 1 loan production office (loan production office) 10 NASDAQ: BMRC
Slide 11: Disciplined Underwriting Standards Mitigate Risk and Produce Superior Asset Quality
Disciplined Underwriting Standards Mitigate Risk and Produce Superior Asset Quality Through Economic Cycles 0.55% NPAs / Total Assets 0.13% 0.06% 0.03% 0.02% 0.03% 0.01% (increase is not pandemic-related) 2014 2015 2016 2017 2018 2019 Q1'20 NCO / Average Loans 0.04% 0.01% Net Charge-offs [ -0.01% -0
Slide 12: Steady Loan Growth
Steady Loan Growth $1.84 $1.84 $1.76 $1.68 $1.49 $1.45 $1.36 (in $ billions) 2014 2015 2016 2017 2018 2019 Q1'20 Five-year compound annual loan growth rate of 6%1 1 Compounded annual growth rate from March 31, 2015 to March 31, 2020. 12 NASDAQ: BMRC
Slide 13: Large Low-Cost Deposit Base: A Key Competitive Advantage
Large Low-Cost Deposit Base: A Key Competitive Advantage $2.34 $2.31 $2.15 $2.17 (in $ billions) $1.73 $1.77 $1.55 Q1 2020 Cost of Deposits 0.21% 2014 2015 2016 2017 2018 2019 Q1'20 Jumbo Time Retail Time Q1 2020 Non-Interest 3% 1% Interest Bearing Demand Bearing DDA of 49%* 6% MMkt (up from 45% at
Slide 14: Consistent Expense Control – Efficiency Ratio
Consistent Expense Control – Efficiency Ratio 70.0% 68.2% 68.0% 66.2% 66.0% 64.9% 64.7% 64.0% 61.5% 61.4% 2 62.0% 61.1% 62.5% 59.5% 60.0% 58.0% 56.8% 57.9% 56.0% 57.3% 55.3% Bank of Napa 54.0% 52.0% 50.0% 2014 2015 2016 2017 2018 2019 Q1'20 Bank of Marin Bancorp Peer Group Median1 1 Peer group inclu
Slide 15: Q1 2020 Results
Q1 2020 Results Q1’20 Q4’19 Q1’19 Earnings $7.2MM $9.1MM $7.5MM Diluted EPS $0.53 $0.66 $0.54 Loan Originations $29.8MM $103.4MM $34.0MM Cost of Deposits 0.21% 0.23% 0.18% Tax Equivalent NIM 3.88% 3.82% 4.02% Efficiency Ratio 56.79% 50.84% 60.62% Return on Assets 1.09% 1.37% 1.19% Return on Equity 8
Slide 16: Consistent Net Interest Margin
Consistent Net Interest Margin 4.20% 4.13% 2 4.10% 4.10% 3.98% 4.00% 3.91% 3.88% 3.95% 3.84% 3.80% 3.90% 3.80% 3.83% 3.80% 3.79% 3.60% 3.40% 3.20% 3.00% 2014 2015 2016 2017 2018 2019 Q1'20 1 Bank of Marin Bancorp Peer Group Median 1 Peer group includes major exchange-traded Western region banks with
Slide 17: Strong Capital Ratios Support Future Growth Opportunities
Strong Capital Ratios Support Future Growth Opportunities 15.3% 14.2% 14.4% 11.7% 10.0% 8.0% 6.5% 5.0% Common Equity Tier-One Risk- Total Tier-One Risk-Based Total Risk-Based Capital Tier-One Leverage Based Capital Capital Well Capitalized Threshold Bank of Marin Bancorp (as of 3/31/20) 17 NASDAQ: B
Slide 18: Peer Comparison
Peer Comparison Bank of Marin compares favorably to peers in key metrics BMRC Peer Median Percentile Q4 2019 Non-Interest Bearing/Total Deposits 48.3% 33.0% 100% Gross Loan Growth Rate (year over year) 4.5% 5.4% 42.9% NPAs/Assets 0.01% 0.21% 100% Efficiency Ratio 50.8% 60.7% 89.6% Return on Average
Slide 19: Dependable Earnings and Dividend Growth
Dependable Earnings and Dividend Growth $3.00 $40.0 $2.48 $35.0 $2.50 $2.33 $30.0 $2.00 $1.89 $25.0 $1.65 $1.52 $MM $1.50 $20.0 $1.27 Dollars per per Dollars share $19.8 $15.0 $1.00 $0.80 $0.64 $10.0 $0.51 $0.56 $0.50 $0.40 $0.45 $5.0 $0.00 $0.0 2014 2015 2016 2017 2018 2019 1 1 Earnings per Share D
Slide 20: Investing in the Bay Area
Investing in the Bay Area • Low cost deposit base with 49% non-interest bearing DDA. • Cost of deposits is 21 BPS, among the lowest in our peer group. • 5 commercial banking offices and 1 loan production office in 6 counties. • Focused on growing commercial banking activities. 20 NASDAQ: BMRC
Slide 21: Executing Bank of Marin's Strategy
Executing Bank of Marin’s Strategy Ongoing COVID-19 Response Organic Growth Strategic Investments • Waiving all ATM and overdraft fees • Capitalize on robust San Francisco • Track record of accretive Bay Area economy acquisitions in 2011, 2013 and • Cancelling early withdrawal 2017 penalties for cer
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