Bank Of Marin Bancorp · NASDAQ:BMRC
Bank Of Marin Bancorp — Q1 2023 Earnings Presentation
17 slides from Bank Of Marin Bancorp's earnings presentation, Apr 24, 2023
Slide 1: First Quarter 2023 Earnings Presentation
First Quarter 2023 Earnings Presentation April 24, 2023
Slide 2: Forward-Looking Statements
2 Nasdaq: BMRC 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
Slide 3: First Quarter 2023 Highlights
First Quarter 2023 Highlights 3 Nasdaq: BMRC Earnings and Profitability • Net Income of $9.4 million • Diluted EPS of $0.59 • Return on Average Assets of 0.92% • Return on Average Equity of 9.12% Key Operating Trends Loans and Credit Quality Deposits and Liquidity Capital • Tax-equivalent NIM of 3.0
Slide 4: Deposit Mix Stable, Cost of Deposits Remains Low
Deposit Mix Stable, Cost of Deposits Remains Low 4 Nasdaq: BMRC • Total deposits decreased $322.8 million, or 9.0%, compared to December 31, 2022 • Deposit mix continues to favor a high percentage of non-interest bearing deposits • Cost of deposits of 0.20% for the quarter and 0.40% for the month of
Slide 5: Manageable Deposit Outflows
Manageable Deposit Outflows 5 Nasdaq: BMRC • Bank of Marin has long maintained high liquidity to accommodate deposit fluctuations associated with our customers' business operations, and first quarter balance declines are not unusual • We enhanced our daily cash flow monitoring to analyze transaction
Slide 6: Disciplined fundamentals deliver consistent and favorable results
Disciplined fundamentals deliver consistent and favorable results 6 Nasdaq: BMRC Our relationship banking model works: • Over 1,000 new accounts opened in the quarter, largely in March, adding $60 million in new balances. Negligible number of account closures with funds leaving the bank. • Reciproca
Slide 7: Strong Liquidity: $1.9 Billion in Net Availability
Strong Liquidity: $1.9 Billion in Net Availability 7 Nasdaq: BMRC At March 31, 2023 ($ in millions) Total Available Amount Used Net Availability Internal Sources Unrestricted Cash $ 38.0 $ — $ 38.0 Unencumbered Securities 767.7 — 767.7 External Sources FHLB 1,037.2 (405.4) 631.8 FRB 344.2 — 344.2 Co
Slide 8: HTM Securities Portfolio
HTM Securities Portfolio HTM Securities Portfolio Agency MBS 75% GSEs 15% Municipal Bonds 6% Corporate Bonds & Other 4% AFS Securities Portfolio AFS Securities Portfolio Agency MBS 59% GSEs 17% Municipal Bonds 13% SBA 7% Corporate Bonds & Other 3% USTs 1% High-Quality Securities Portfolio Generates
Slide 9: Well-diversified Loan Portfolio
Well-diversified Loan Portfolio 9 Nasdaq: BMRC • The loan portfolio is well-diversified across borrowers, industries, loan and property types within our geographic footprint — 93% of loans are guaranteed by borrower guarantors • Non-owner occupied commercial real estate ("NOO-CRE") is well-diversifi
Slide 10: Non-owner Occupied Office Exposure
Non-owner Occupied Office Exposure As of 3/31/23 10 Nasdaq: BMRC • $370 million in exposure spread across our 10-county footprint comprised of 144 loans • $2.6 million average loan balance – largest loan at $17.2 million • 55% average loan-to-value and average debt-service coverage ratio of 1.67x* •
Slide 11: NOO-CRE Portfolio Diversified Across Property Types & Geographies
NOO-CRE Portfolio Diversified Across Property Types & Geographies 11 Nasdaq: BMRC Retail as of 1Q23 Warehouse & Industrial as of 1Q23 Multi-Family as of 1Q23 Marin, 18% Sonoma, 16% San Francisco, 3% Alameda, 8% Sacramento, 15% Napa, 17% Other Bay Area, 13% Other, 10% Marin, 15% Sonoma, 16% San Franc
Slide 12: Construction Portfolio Concentrated in Lower-Risk Property Segments
Construction Portfolio Concentrated in Lower-Risk Property Segments 12 Nasdaq: BMRC Marin, 7% Sonoma, 9% San Francisco, 46% Alameda, 23% Other Bay Area, 15% Construction by Type as of 1Q23 Construction Portfolio by County as of 1Q23 Multi-family, 60% Self Storage, 18% 1-4 Residential, 21% Land & Ag,
Slide 13: History of Excellent Asset Quality
History of Excellent Asset Quality 13 Nasdaq: BMRC • Consistent, robust credit culture and underwriting principles have supported excellent asset quality • Non-accrual loans continue to remain at historically low levels • Net charge-offs have consistently been negligible for the last five years. • A
Slide 14: Robust Capital Ratios as of 3/31/23
Robust Capital Ratios as of 3/31/23 14 Nasdaq: BMRC 6.5% 8.0% 10.0% 5.0% 15.3% 15.3% 16.2% 9.9% 8.7% 6.9% Well Capitalized Threshold Bank of Marin Bancorp Bancorp TCE adj. for HTM securities* Common Equity Tier-One Risk-Based Capital Total Tier-One Risk-Based Capital Total Risk-Based Capital Tier-On
Slide 15: Net Interest Margin Drivers
Net Interest Margin Drivers 15 Nasdaq: BMRC • Linked-quarter NIM decreased 22 bps, due primarily to higher deposit and borrowing costs, partially offset by higher earning asset yields. • The cost of deposits increased to 40 basis points in the month of March compared to 8 basis points in December 20
Slide 16: Appendix
Appendix /é. Bank of Marin Bancorp
Slide 17: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 17 Nasdaq: BMRC (in thousands, unaudited) March 31, 2023 Tangible Common Equity - Bancorp Total stockholders' equity $ 430,174 Goodwill and core deposit intangible (77,525) Total TCE a 352,649 Unrealized losses on HTM securities, net of tax (76,3
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