Bank Of Marin Bancorp · NASDAQ:BMRC
Bank Of Marin Bancorp — 18th Annual Keefe, Bruyette & Woods Community Bank Investor Conference 2017
21 slides from Bank Of Marin Bancorp's conference presentation, Aug 1, 2017
Slide 1: Consistent Growth and Quality Results
Consistent Growth and Quality Results 18th Annual Keefe, Bruyette & Woods Community Bank Investor Conference August 1 & 2, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intenti
Slide 3: Bank of Marin Bancorp
Bank of Marin Bancorp Recent awards: 2016 Community Bank of the Year FIVE STAR BANK BAUER 3 NASDAQ: BMRC Headquarters Novato, California Marin County, North of San Francisco Employees, full-time equivalent 264 Assets $2.1 billion Market capitalization $379 million Total loans $1.49 billion Total dep
Slide 4: Bank of Marin Investment Highlights
Bank of Marin Investment Highlights 4 NASDAQ: BMRC Total annual shareholder return averages 13% over 20 years Established community and business bank in thriving San Francisco Bay Area economy Deep knowledge of local markets and industry expertise Relationship banking model translates into consisten
Slide 5: Management team
Russell A. Colombo President and Chief Executive Officer • 42 years in banking • Comerica Bank, Security Pacific, Imperial Bank, Union Bank Tim Myers EVP, Commercial Banking • 20 years in finance and banking • U.S. Bank, Comerica Bank, Imperial Bank James T. Burke EVP, Chief Information Officer • 36
Slide 6: Established Community and Business Bank in Thriving San Francisco Bay Area Economy
• San Francisco Bay Area is one of the strongest economies in California (the largest economy in the U.S.) • Unemployment less than 2.9%* (Marin County) vs. 5.2%** in California and 4.7%** in U.S. • Influx of new businesses and capital fueling economic growth in the Bay Area • Dominant player in Mar
Slide 7: Large and Growing Low-Cost Deposit Base: A Key Competitive Advantage
1.20 1.25 1.59 1.55 1.73 1.77 2011 2012 2013 2014 2015 2016 Non- Interest Bearing Demand 46% Savings 9% MMkt 31% Retail Time 3% Jumbo Time 5% Interest Bearing Demand 6% Large and Growing Low-Cost Deposit Base: A Key Competitive Advantage • 8% five-year compound annual growth rate of deposits (throug
Slide 8: Very Strong Origination Pipeline to Drive Loan Growth
1.03 1.07 1.27 1.36 1.45 1.49 2011 2012 2013 2014 2015 2016 Very Strong Origination Pipeline to Drive Loan Growth • Relationship loans comprise majority of originations • Little exposure to construction and consumer debt • Minimal direct exposure to technology industry • Loan originations of $192 mi
Slide 9: Disciplined Underwriting Standards Mitigate Risk and Produce Superior Asset Quality
Disciplined Underwriting Standards Mitigate Risk and Produce Superior Asset Quality Through Economic Cycles • Expertise and tenure of commercial banking teams translate into low credit losses • Direct origination of all loans* • High underwriting standards across loan portfolio; closely watching LTV
Slide 10: Quarterly Results: 2017
Quarterly Results: 2017 • Second quarter net income was $5.2 million, up from $4.5 million in the first quarter and $4.8 million in the second quarter 2016. • Second quarter loan originations totaled $56 million versus $24 million in the first quarter and $45 million in the second quarter of 2016. Y
Slide 11: Well-Defined Strategy for Growth & Value Creation
Well-Defined Strategy for Growth & Value Creation 11 NASDAQ: BMRC • Capitalize on robust San Francisco Bay Area economy • Expand commercial lending in high- growth areas such as San Francisco, the East Bay, and Napa and Sonoma Counties • Commercial banking hires in the East Bay and Sonoma County dri
Slide 12: Acquisition of Bank of Napa Accelerating Growth in the Napa Market
Acquisition of Bank of Napa Accelerating Growth in the Napa Market
Slide 13: Transaction Highlights
Transaction Highlights 13 NASDAQ: BMRC • Significantly enhances Bank of Marin’s position in the attractive Napa market • Pro forma #1 deposit market share among community banks • Bank of Napa is a high quality business bank • The only Napa based community bank • Total assets of $246 million, gross l
Slide 14: Bank of Napa Overview
Bank of Napa Overview 14 NASDAQ: BMRC Balance Sheet: ($000s) Balance Sheet / Capital Ratios: Total Assets 246,056$ TCE / TA 11.05% Gross Loans 139,297 CET1 Ratio 16.40% Total Deposits 217,746 Leverage Ratio 10.99% Total Equity 27,175 Tier 1 Ratio 16.40% Core Deposits(2) 95.3% Total Risk-based Capita
Slide 15: Napa County Market Highlights
Napa County Market Highlights 15 NASDAQ: BMRC • Strengthens presence in the attractive Napa County market • Napa county has a population of ~145,000 • 2017 – 2022 population growth is projected at 4.3% compared to 3.8% nationally • Napa County’s economy is strong and rapidly growing • May 2017 unemp
Slide 16: Top Market Share for Community Banks in Napa
Top Market Share for Community Banks in Napa 16 NASDAQ: BMRC Source: SNL Financial. Note: Deposits per FDIC Summary of Deposits as of 6/30/2016. Note: Bold indicates community banks with assets less that $25 billion. Rank Institution (ST) Number of Branches Total Deposits ($mm) Market Share (%) 1 We
Slide 17: Transaction Overview and Assumptions
Transaction Overview and Assumptions 17 NASDAQ: BMRC Transaction Value(1)(2) $51.0 million Pro Forma Ownership Due Diligence Expected Closing Required Approvals 89.4% BMRC / 10.6% BNNP Completed, including extensive loan and compliance review BNNP shareholders and other customary regulatory approval
Slide 18: Pricing Multiples and Pro Forma Financial Impact
Pricing Multiples and Pro Forma Financial Impact 18 NASDAQ: BMRC Transaction Multiples(1) Price / Tangible Book Value 1.76x Price / LTM Earnings 25.3x Core Deposit Premium(3) 11.5% Transaction Metrics 2018e EPS Accretion | Incremental EPS Accretion(4) ~1% | ~9% 2019e EPS Accretion | Incremental EPS
Slide 19: Appendix
Appendix
Slide 20: Pro Forma Loan and Deposit Composition
Pro Forma Loan and Deposit Composition 20 NASDAQ: BMRC Source: SNL Financial. Note: Data per regulatory filings as of 6/30/2017; Pro Forma excludes purchase accounting adjustments. Lo an s D ep os its Bank of Marin Yield on Loans: 4.42% C&D 4% C&I 9% Res. RE 8% OO CRE 17% NOO CRE 43% Multifamily 6%
Slide 21: An Overview of the Local Economy
An Overview of the Local Economy 21 NASDAQ: BMRC Market Demographics by County Workforce Sector Breakdown (% of employees) Unemployment Rate(1) Other Services Educational & Health Services Trade, Transportation, & Utilities Government Manufacturing County Total Pop. (2017) (000s) Pop. Change (%) 201