Bank Of Marin Bancorp · NASDAQ:BMRC
Bank Of Marin Bancorp — 2023 Janney West Coast Bank CEO Forum
19 slides from Bank Of Marin Bancorp's conference presentation, Feb 1, 2023
Slide 1: A strategic and disciplined approach to delivering long-term value
A strategic and disciplined approach to delivering long-term value 2023 Janney West Coast Bank CEO Forum February 1 - 2, 2023 / fo. Bank of Marin Bancorp xf
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
Slide 3: Bank of Marin Bancorp at a glance
Deen NNT NN es Bank of Marin Bancorp Novato, California Beacyiarters Marin County, North of San Francisco Employees, full-time equivalent 313) Assets $4.1 billion Market Capitalization $527.0 million Ticker BMRC (Nasdaq Capital Markets) Founded 1989 First branch opened in 1990 (As of December 31, 20
Slide 4: Years of Combined Management Experience
275 Years of Combined Management Experience Through Various Economic Cycles Tim Myers President & Chief Executive Officer +26 years in finance and banking Joined Bank of Marin in 2007 Bob Gotelli EVP, Human Resources +28 years of human resources experience Joined Bank of Marin in 2000 Misako Stewart
Slide 5: Delivering a relationship and community focused banking model on a regional scale
Delivering a relationship and community focused banking model on a regional scale * 31 retail branches* and 8 commercial banking offices located across 10 counties. * Sound underwriting produces a high-quality loan portfolio with low credit costs and stable earnings. ¢ Strong deposit base with low-
Slide 6: Balanced Approach to Growth Creates Long-Term Value
Balanced Approach to Growth Creates Long-Term Value Total annual shareholder return averages 8.97% over 20 years" $50.00 $40.00 $32.88" $30.00 $25.71" 5 year average $20.00 annual return: 1.67%" 10 year average annual return: 8.00%" $10.00 14s of December 31, 2022 $ 1990 1995 2000 2005 2010 2015 202
Slide 7: Prudent, Sustainable Model for Loan Growth
Prudent, Sustainable Model for Loan Growth $2. 26° $2.09 $2. oo ($ billions) site $1.84 PPP Loans: $3.5 million * $1.68 Five-year compound annual loan growth rate: 4.51%" 2017 2018 2019 2020 2021 2022 1 Net of $99 thousand in unrecognized PPP loan fees and costs. ? Compounded annual growth rate from
Slide 8: Investment Securities, AOCI and Tangible Equity
Investment Securities, AOCI and Tangible Equity As of December 31, 2022 AFS Securities (fair value) 45% of portfolio, 2.05% yield Gets 64.8% 127% 4.4% HTM Securities (book value) 15.0% 75.5% 6.4% 3.1%) 55% of portfolio, 2.48% yield MUS Treas. and Agen. Securities ™ US. Agen. CMO/MBS/SBA ™ Municipals
Slide 9: Low-Cost Deposit Base: A Key Competitive Advantage
Low-Cost Deposit Base: A Key Competitive Advantage Q4 2022 Cost of Deposits 0.08% 2 Interest Bearing (S billions) $3.81 Time Deposits, 3% DDA , 8% $3. 57 $2.50 Money Market, 28% $2.34 $2.15 $2.17 Non-Interest Bearing DDA, Savings, 9% 52% 2017 2018 2019 2020 2021 2022 Five-year compound annual deposi
Slide 10: Tax Equivalent Net Interest Margin
Tax Equivalent Net Interest Margin 4.50% 4.25% 4.19% 4.16% 9) 4.00% 590% 9, 3.75% 350% 3.50% 3.25% 3.00% 2.96% 2.75% ' 1 1 1 1 1 1 1 1 2017 2018 2019 2020 2021 Q1'22 Q2'22 Q3'22 Q4'22 he Bank of Marin Bancorp ~~ Peer Group Median, ” Peer group includes major exchange-traded Western region banks with
Slide 11: Deposit Betas
Deposit Betas Non-Maturity Total Deposits Implied Beta Actual Historical Interest Rates Fed Funds Interest and Deposit Betas Rate Bearing Deposits December 2015 0.25 % 0.15 % December 2018 2.50 % 0.20 % 2% February 2020 Peak (full cycle 0.48 % 15% beta) 0.08 % 0.10 % 1% 0.24 % 11 %| Total Deposits I
Slide 12: Disciplined Risk Management
Disciplined Risk Management Capital 15.9% 15.0% 15.0% 10.0% 9.6% 9 5 asi 8.0% 8.2% 5.0% [| Common Total Tier- Total Risk- Tier-One Tangible Equity Tier- | One Risk- Based Leverage Equity One Risk- Based Capital Based Capital Capital Well Capitalized Threshold I Bank of Marin Bancorp (as of December
Slide 13: Low Efficiency Ratio Demonstrates Disciplined Expense Control
Low Efficiency Ratio Demonstrates Disciplined Expense Control 70.0% American River acq & early sub debt redemption 65.0% 64.6% : (Non-GAAP 57.5%") 60.0% 55.0% 55.2% (Non-GAAP 54.8%") 52.2% 50.9% 50.0% 2017 2018 2019 2020 2021 Q1'22 Q2'22 Q3'22 Q4'22 —* Bank of Marin Bancorp -= Peer Group Mediar! ? p
Slide 14: 2022 & 2021 Results
2022 & 2021 Results (Adjusted for merger-related costs, where applicable) Performance Measures FY 2022 FY 2021 ae YTD 2021 Earnings * $12.9MM| $12.2MM_ $0.7MM $47.2MM $38.1MM $9.1MM Diluted EPS * $0.81 $0.76 $0.05 $2.96 $2.64 $0.32 Loan Originations * $36.1MM $52.2MM_ $16.1MM $240.2MM $181.7MM, $58.
Slide 15: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (in thousand, except share data; unaudited) Year ended December 31, December 31, Net income 2022 2021 Net income (GAAP) $ 46,586 $ 33,228 Merger-related and conversion costs before tax benefits 858 6,458 Income tax benefit of merger-related expen
Slide 16: Peer Comparison Financial Measures
Peer Comparison Financial Measures (Adjusted for acquisition-related costs) Performance Measures BMRC BMRC FY Caines Q3 2022 Median Q3}| Percentile 2021 Median FY | Percentile Non-Interest Bearing/Total Deposits 52.60 % 38.50 % 100.0 % 50.16 % 37.60 % 95.3 % Gross Loan Growth Rate (year-over-year)*
Slide 17: Dependable Earnings and Dividend Growth
Dependable Earnings and Dividend Growth $3.00 $2.92 $50.0 $45.0 $2.30 $40.0 $2.22 $35.0 $30.0 $25.0 SMM Dollars per share $20.0 $0.92 $0.94 $0.98 $15.0 $10.0 $5.0 2017 2018 2019 2020 2021 2022 IB Earnings per Share’ [ll Dividends per Share! -@- Net Income ” prior period share and per share data have
Slide 18: Bank of Marin's Strategic Priorities
Bank of Marin’s Strategic Priorities A strategic and disciplined approach to delivering long-term value Drive high-quality LOAN GROWTH Grow NON-INTEREST INCOME Scale through EFFICIENCY GAINS and ACQUISITIONS Invest in TALENT and TECHNOLOGY 18 Mh. Bank of Marin Bancorp Nasdaq: BMRC
Slide 19: Contact Us
Contact Us Tim Myers President & Chief Executive Officer (415) 763-4970 timmyers@bankofmarin.com Tani Girton EVP, Chief Financial Officer (415) 884-7781 tanigirton@bankofmarin.com Media Requests: Yahaira Garcia-Perea Marketing & Corporate Communications Manager (916) 231-6703 yahairagarcia-perea@ban
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