Bank Of Marin Bancorp · NASDAQ:BMRC
Bank Of Marin Bancorp — D.A. Davidson 2020 West Coast Bank Tour
22 slides from Bank Of Marin Bancorp's conference presentation, Aug 25, 2020
Slide 1: Banking with discipline and financial strength
Exhibit 99.1 Banking with discipline and financial strength D.A. Davidson 2020 West Coast Bank Tour August 25, 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 295 Assets $3.2 billion Market capitalization $453 million Total loans $2.11 billion Total deposits $2.78 billion Footprint 25 locations in San Francisco Bay Area Ticker BMRC (N
Slide 4: Years of Combined Management Experience Through Economic Cycles
288 Years of Combined Management Experience Through Economic Cycles Russell A. Colombo Tani Girton Tim Myers President, Chief Executive Officer EVP, Chief Financial Officer EVP, Chief Operating Officer • 45 years in banking • 34 years in financial services • 24 years in finance • Comerica Bank, Impe
Slide 5: Balanced Approach to Growth Creates Long-Term Value
Balanced Approach to Growth Creates Long-Term Value Total annual shareholder return averages 10.9% over 20 years1 50 45 40 35 $33.33 30 $25.92 25 5 year average 20 annual return: 7.5%1 15 10 year average annual return: 9.6%1 10 1As of June 30, 2020 $1.30 5 Prior period share and per share data have
Slide 6: Leading Community and Commercial Bank in Resilient San Francisco Bay Area Economy
Leading Community and Commercial Bank in Resilient San Francisco Bay Area Economy • 22 branches, 5 commercial banking offices and 2 loan production offices located across 7 Bay Area counties. • Sound underwriting produces a high-quality loan portfolio with industry-leading credit metrics even in cha
Slide 7: Steady Loan Growth: Prudent, sustainable growth model
Steady Loan Growth: Prudent, sustainable growth model $2.11 $1.84 PPP: $298.9 million $1.76 (12/31 in $ billions) $1.68 Excluding PPP $1.45 $1.49 $1.81 billion $1.36 2014 2015 2016 2017 2018 2019 Q2'20 Five-year compound annual loan growth rate: 9.52%1 (6.23% excluding SBA PPP loans) 1 Compounded an
Slide 8: Large Low-Cost Deposit Base: A Key Competitive Advantage
Large Low-Cost Deposit Base: A Key Competitive Advantage $2.78 $2.34 Increase in Q2 deposits (12/31 in $ billions) $2.15 $2.17 driven in part by $1.73 $1.77 $1.55 PPP loan proceeds Q2 2020 Cost of Deposits 0.09% 2014 2015 2016 2017 2018 2019 Q2'20 Time Deposits Interest 3% Bearing DDA Q2 2020 Non-In
Slide 9: Asset Quality: Disciplined Underwriting Standards Mitigate Risk
Asset Quality: Disciplined Underwriting Standards Mitigate Risk and Produce Superior Asset Quality Through Economic Cycles 0.55% NPAs / Total Assets 0.13% 0.05% 0.03% 0.02% 0.03% 0.01% (increase is not pandemic-related) 2014 2015 2016 2017 2018 2019 Q2'20 NCO / Average Loans 0.04% 0.01% Net Charge-o
Slide 10: Ongoing COVID-19 Response
Ongoing COVID-19 Response • Funded over $300 million in PPP loans to over 1,800 small businesses, reaching nearly 28,000 employees in our markets • Contracted with a technology provider and a CPA firm to help our customers successfully navigate the PPP loan forgiveness process • Approved loan paymen
Slide 11: COVID-19 Response – Paycheck Protection Program (PPP)
COVID-19 Response – Paycheck Protection Program (PPP) • Of the 1,800+ loans funded, the majority were made to existing Bank of Marin customers • Approximately 80% of PPP borrowers did not have loans outstanding with Bank of Marin at the onset of the pandemic • 178 nonprofit organizations, employing
Slide 12: COVID-19 Response - Sensitive Industries
COVID-19 Response - Sensitive Industries Excluding PPP % Real Weighted % Total Industry Outstanding Balance Estate Average Portfolio Related LTV Retail Related CRE $184,773,951 9% 100% 39% Wine Related $76,686,179 4% 55% 38% Education $67,360,693 3% 93% 35% Hospitality $48,124,533 2% 94% 38% Health
Slide 13: COVID-19 Response – Payment Relief Program
COVID-19 Response – Payment Relief Program Payment Relief Granted • Provided immediate relief to Bank of 400 $338.7 Marin clients experiencing hardship 350 300 • No additional information or underwriting 250 236 required, streamlined processing for 200 existing clients 150 100 • Up to 120 days full
Slide 14: COVID-19 Response – Program Status Update
COVID-19 Response – Program Status Update As of 8/18/2020, based on active discussions with customers as relief periods began to expire, we estimate 58 loans totaling $96 million or less will require extended payment relief. Loan Modifications Requiring Extended Weighted Loan Balance % of Total Paym
Slide 15: Q2 2020 Results Comparison
Q2 2020 Results Comparison Q2’20 vs 1st half ‘20 vs Q2’20 1st half ‘20 Q1’20 1st half ‘19 Earnings $7.4MM $178M $14.6MM $108M Diluted EPS $0.55 $0.02 $1.07 $0.06 Loan Originations (Non-PPP) $41.8MM $12MM $71.6MM $4.5MM PPP Originations $298.9MM $298.9MM $298.9MM $298.9MM Cost of Deposits 0.09% 12bps
Slide 16: Net Interest Margin
Net Interest Margin 4.50% 4.13% 4.10% 4.10% 3.91% 3.98% 4.00% 3.88% 3.84% 3.95% 3.80% 3.90% 3.83% 3.88% 3.80% 3.79% 3.57% 3.50% 3.53% 3.00% 2.50% 2014 2015 2016 2017 2018 2019 Q1'20 Q2'20 1 Bank of Marin Bancorp Peer Group Median 1 Peer group includes major exchange-traded Western region banks with
Slide 17: Low Efficiency Ratio Demonstrates Disciplined Expense Control
Low Efficiency Ratio Demonstrates Disciplined Expense Control 70.0% 68.2% 68.0% 66.2% 66.0% 64.9% 64.7% 64.0% 63.3% 61.5% 61.4% 62.0% 61.1% 62.5% 59.5% 60.0% 59.20% 58.0% 56.8% 57.9% 56.0% 57.3% 55.3% 54.0% 54.0% Bank of Napa 52.0% 50.0% 2014 2015 2016 2017 2018 2019 Q1'20 Q2'20 Bank of Marin Bancor
Slide 18: Strong Capital Ratios Support Future Growth Opportunities
Strong Capital Ratios Support Future Growth Opportunities 15.8% 14.6% 14.7% 10.7% 10.0% 8.0% 6.5% 5.0% Common Equity Tier-One Risk- Total Tier-One Risk-Based Capital Total Risk-Based Capital Tier-One Leverage Based Capital Well Capitalized Threshold Bank of Marin Bancorp (as of 6/30/20) 18 Nasdaq: B
Slide 19: Peer Comparison
Peer Comparison Bank of Marin compares favorably to peers in key metrics BMRC Peer Median Percentile Q2 2020 Non-Interest Bearing/Total Deposits 51.90% 37.70% 100% Gross Loan Growth Rate (year over year) 19.60% 17.90% 56.60% NPAs/Assets 0.05% 0.28% 96.40% Efficiency Ratio 54.00% 59.20% 76.00% Return
Slide 20: Dependable Earnings and Dividend Growth
Dependable Earnings and Dividend Growth $3.00 $40.0 $2.48 $35.0 $2.50 $2.33 $34.2 $30.0 $2.00 $1.89 $25.0 $1.65 $1.52 $1.50 $20.0 $MM $1.27 $19.8 Dollars per share $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 Dividen
Slide 21: Executing Bank of Marin's Two-Pronged Growth Strategy
Executing Bank of Marin’s Two-Pronged Growth Strategy ORGANIC GROWTH STRATEGIC INVESTMENTS • Capitalize on resilient San Francisco • Ongoing expansion into new markets, Bay Area economy with newest office now open in San • Continue to expand commercial Mateo lending in high-growth regions • Proven r
Slide 22: Contact Us
Contact Us Russell A. Colombo President & Chief Executive Officer (415) 763-4521 russcolombo@bankofmarin.com Tani Girton EVP, Chief Financial Officer (415) 884-7781 tanigirton@bankofmarin.com Tim Myers EVP, Chief Operating Officer (415) 763-4970 timmyers@bankofmarin.com Media Requests: Beth Drummey
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