Bank Of Marin Bancorp · NASDAQ:BMRC

Bank Of Marin Bancorp — Stephens Bank Forum 2025

34 slides from Bank Of Marin Bancorp's conference presentation, September 2025

  1. Slide 1: Stephens Bank Forum 2025

    Stephens Bank Forum 2025 September 16 - 17, 2025

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This discussion of financial results includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "1933 Act") and Section 21E of the Securities Exchange Act of 1934, as amended, (the "1934 Act"). Those sections of th

  3. Slide 3: Franchise Highlights

    Franchise Highlights S E C T I O N 01

  4. Slide 4: Bank of Marin Bancorp at a Glance

    Bank of Marin Bancorp BMRC AT A GLANCE 27 Branch Locations BMRC Novato, CA 8 Commercial NASDAQ Headquarters Banking Offices $3.7 Billion $368.1 Million Total Assets Market Cap Relationship Banking 16.25% 4.38% Build strong, long-term customer relationships based on trust, integrity and expertise, in

  5. Slide 5: 221 Years of Combined Experience Through Various Economic Cycles

    221 Years of Combined Experience Through Various Economic Cycles Tim Myers Sathis Arasadi David Bloom President and Chief Executive Officer EVP, Chief Information Officer EVP, Head of Commercial Banking • 27 years of finance and • 32 years of engineering, • 30 years of commercial banking experience

  6. Slide 6: Long-Term Strategic Priorities

    Long-Term A strategic and disciplined approach to delivering long-term value Strategic Priorities Drive high-quality LOAN GROWTH 01 02 Grow NON-INTEREST INCOME 03 Scale through EFFICIENCY GAINS and ACQUISITIONS 04 Invest in TALENT and TECHNOLOGY 6

  7. Slide 7: Second Quarter 2025 Overview

    Second Quarter 2025 Overview • Tax-equivalent net interest margin increased to 2.93% from 2.86% in the prior quarter, mostly driven by new loan production at higher rates • Net (loss) income and diluted EPS for 2Q25 was ($8.5) million and ($0.53); excluding the loss on sale of securities was $4.7 mi

  8. Slide 8: Focused on Building Long-Term Shareholder Value

    Focused on Building Long-Term Shareholder Value Strong Core Deposit Franchise Largest community bank in Marin County with 12.0% market share 1 42.5% non-interest bearing deposits with a 1.28% cost of deposits in Q2 Robust Capital Levels & Liquidity Regulatory capital ratios remain comfortably above

  9. Slide 9: Focused on Delivering Long-Term, Consistent Growth

    Focused on delivering Tangible Book Value Per Share and Cumulative Cash Dividends Long-Term, Consistent $30.00 Growth $25.45 $25.72 $24.24 $25.00 $23.42 $23.44 • Proven ability to grow both $21.91 $23.09 organically and through M&A $20.57 $20.00 $18.99 • Consistent cash dividend provides $18.35 $16.

  10. Slide 10: Robust Capital Ratios

    Robust Capital Ratios As of 6/30/25 • We maintained high capital levels and are in a position of strength 16.3% 15.0% 15.0% 15.0% 13.8% 13.8% • Bancorp total risk-based capital of 16.3% • Bancorp tangible common equity ratio of 10.0% 9.4% 10.2% 10.0% 9.1% 10.0% 8.0% 8.3% 7.4% 6.5% • During 2Q'25 we

  11. Slide 11: Balance Sheet Highlights

    Balance Sheet Highlights S E C T I O N 02

  12. Slide 12: Strong Deposit Franchise

    Strong Deposit Franchise • Deposit mix continues to favor a high percentage of non-interest bearing deposits • Total cost of deposits was 1.28% (interest-bearing 2.24%) for 2Q25 and 1.29% (interest-bearing 2.27%) for the prior quarter • June cost of deposits and spot rate as of June 30, 2025 were 1.

  13. Slide 13: Granular Deposit Account Composition

    Granular Deposit New Accounts Mix (by count) 2Q25 Account Composition Existing Relationships - New $ 22% • 40% of new accounts consisted of new New relationships to the Bank by count Relationships • 40% of new accounts were non-interest 40% 1,011 bearing by count • Average weighted cost for all new

  14. Slide 14: Strong Liquidity: $1.9 Billion in Net Availability

    Strong Liquidity: $1.9 Billion in Net Availability • Immediately available contingent funding represented 200% of June 30, 2025 estimated uninsured and/or uncollateralized deposits • The Bank has long-established minimum liquidity requirements regularly monitored using metrics and tools similar to l

  15. Slide 15: Prudent, Sustainable Model for Loan Growth

    Prudent, Sustainable Model for Loan Total Loans ($ in billions) Growth • Loan originations were at yields higher $2.256 than those on paid off loans $2.089 $2.093 $2.074 $2.083 $2.074 • Notable pipeline growth and diversification from key hires, 4.95% compensation program enhancements, 4.83% and cal

  16. Slide 16: Well-diversified Loan Portfolio

    Well-diversified Loan Portfolio As of 6/30/25 - No material changes from 1Q25 • Loan portfolio is well-diversified across borrowers, industries, loan and property types within our geographic footprint • 88% of all loans and 94% of loans excluding nonprofit organizations are guaranteed by owners of t

  17. Slide 17: Low Refinance Risk in NOO CRE Portfolio through 2026

    Low Refinance Risk in NOO CRE Portfolio Maturing Loan Commitments > $1.0MM through 2026 # of Outstanding Wtd. Avg. loans Commitment Balance Wtd. Avg. Rate DSC • We conducted a DEEP DIVE on loans maturing or repricing before year-end 2025 20 $72.4MM $68.8MM 5.11% 1.37x 2026 * 2026 26 $95.0MM $88.0MM

  18. Slide 18: Non-owner Occupied Office Exposure

    Non-owner Occupied Office Exposure As of 6/30/25 - No material changes from 1Q25 • $361 million in credit exposure spread across our lending footprint comprised of 147 loans • $2.5 million average loan balance – largest loan at $15.8 million • 64% weighted average loan-to-value and 1.62x weighted av

  19. Slide 19: NOO CRE Portfolio Diversified Across Property Type & County

    NOO CRE Portfolio Diversified Across Property Type & County As of 6/30/25 - No material changes from 1Q25 Retail 2Q25 Warehouse & Industrial 2Q25 Multifamily 2Q25 San Francisco 3% San Francisco Sonoma Alameda 13% Sonoma 6% 11% 15% Marin Sonoma 12% San Francisco Sacramento 30% Alameda 26% 20% 16% Mar

  20. Slide 20: Owner-Occupied CRE Portfolio

    Owner-Occupied CRE Portfolio As of 6/30/25 - No material changes from 1Q25 OO CRE by Type 2Q25 OO CRE by County 2Q25 OO CRE Office Portfolio by County 2Q25 Retail Napa 7% Marin 17% Marin Napa Industrial School 20% 21% 20% 25% 15% Alameda $320MM Wine Alameda 14% $320MM Sacramento 20% 6% $62MM 10% Oth

  21. Slide 21: Construction Portfolio Concentrations

    Construction Portfolio Concentrations As of 6/30/25 Construction by Type 2Q25 Construction by County 2Q25 Marin Other Bay Area 12% 8% Multi-Family 35% $25MM Napa $25MM 16% San Francisco 64% 1-4 Residential 65% Average Balance: $2.7MM Largest Loan: $6.7MM Wtd. Avg. LTV*: 59% Total Balance: $25.0MM Un

  22. Slide 22: High-Quality Securities Portfolio Generates Cash Flow

    High-Quality Securities Portfolio Generates Cash Flow Data as of 6/30/25 AFS Securities Portfolio HTM Securities Portfolio Municipal Bonds Agency MBS Corporate Bonds 7% 10% 2% Municipal Bonds Agency MBS Agency CMBS (Variable) 7% 22% 18% GSEs 14% Agency CMBS (Variable) Agency CMO (Fixed) 1% 26% $392.

  23. Slide 23: Income Statement Highlights

    Income Statement Highlights S E C T I O N 03

  24. Slide 24: Net Interest Margin Drivers

    Net Interest Margin Drivers • Linked-quarter NIM increased 7 bps due primarily to higher loan and securities yields, largely due to the effects of new loan production at higher rates • The Bank began deposit rate cuts in August '24 and continues making strategic pricing adjustments into July'25 • 2Q

  25. Slide 25: Loans & Securities — Repricing & Maturity

    Loans & Securities — Repricing & Maturity $ in millions, unless otherwise indicated Total Loans1 * at 6/30/2025 Repricing Term Rate Structure Variable Variable 3 mo 3-12 1-3 3-5 5-15 Over 15 Floating Variable Rate at Rate at Fixed or less mos years years years years Total Rate Rate Floor Ceiling Rat

  26. Slide 26: Total Non-Interest Components

    Total Non-Interest Components Non-interest Income ($ in millions) Non-interest Expense ($ in millions) $79.5 $81.8 $72.6 $75.3 $8.6 $10.1 $10.9 $5.0 $58.5 111.6% 112.2% 0.30% 0.29% 0.25% 0.12% $42.7 (0.34)% 73.8% 75.2% (0.57)% 63.1% $(12.7) 55.6% 54.4% $(21.4) 2020 2021 2022 2023 2024 YTD25 2020 202

  27. Slide 27: Capital & Asset Quality

    Capital & Asset Quality S E C T I O N 04

  28. Slide 28: History of Strong Asset Quality

    History of Strong Asset Quality • Allowance for credit losses to total loans of 1.44%, consistent with prior quarter • Consistent, robust credit culture and underwriting principles support strong asset quality • Net charge-offs have consistently been negligible for the last five years due to strong

  29. Slide 29: AOCI and Tangible Equity

    AOCI and Tangible Equity $500.0 80.0% 70.0% $414.6 $416.2 $418.4 $415.5 $415.5 $407.9 $398.4 $391.7 $400.0 $390.2 $387.7 $390.0 $53.0 $55.1 $377.8 $62.0 $69.4 $76.6 $31.3 $26.5 $30.1 $27.5 60.0% $73.7 $14.4 $80.0 $364.2 $363.4 $362.5 $360.4 $358.9 $361.2 $359.9 $352.6 $346.8 $341.8 $334.2 50.0% $318

  30. Slide 30: Appendix

    Th. Bank of Marin Bancorp Appendix

  31. Slide 31: Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share amounts; unaudited) June 30, 2025 Tangible Common Equity - Bancorp Total stockholders' equity $ 438,538 Goodwill and core deposit intangible (75,098) Total TCE a 363,440 Unrealized losses on HTM securities, net of

  32. Slide 32: Reconciliation of GAAP to Non-GAAP Financial Measures (Excluding Loss on Sale of Securities)

    Reconciliation of GAAP to Non-GAAP Financial Measures (Excluding Loss on Sale of Securities) (in thousands; unaudited) Three months ended Six months ended Pre-tax, pre-provision net income June 30, 2025 March 31, 2025 June 30, 2025 June 30, 2024 (Loss) income before (benefit from) provision for inco

  33. Slide 33: Reconciliation of GAAP to Non-GAAP Financial Measures (Excluding Loss on Sale of Securities)

    Reconciliation of GAAP to Non-GAAP Financial Measures (Excluding Loss on Sale of Securities) (in thousands, except per share amounts; unaudited) Three months ended Six months ended Net (loss) income June 30, 2025 March 31, 2025 June 30, 2025 June 30, 2024 Net (loss) income (GAAP) $ (8,536) $ 4,876 $

  34. Slide 34: Contact Us

    Contact Us Tim Myers Dave Bonaccorso President and Chief Executive Officer EVP, Chief Financial Officer (415) 763-4970 (415) 884-4758 timmyers@bankofmarin.com davebonaccorso@bankofmarin.com Media Requests: Yahaira Garcia-Perea Marketing & Corporate Communications Manager (916) 231-6703 yahairagarcia

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