Bank Of Marin Bancorp · NASDAQ:BMRC
Bank Of Marin Bancorp — Piper Sandler Western Bank Forum 2025
33 slides from Bank Of Marin Bancorp's conference presentation, Mar 11, 2025
Slide 1: Piper Sandler Western Bank Forum
Piper Sandler Western Bank Forum March 10-11, 2025
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: Franchise Highlights
Franchise Highlights S E C T I O N 01
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 $382.4 Million Total Assets Market Cap Relationship Banking 16.54% 4.21% Build strong, long-term customer relationships based on trust, integrity and expertise, in
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
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
Slide 7: Fourth Quarter 2024 Overview
Fourth Quarter 2024 Overview • Originated $47.1 million of new loans • Continued selected deposit rate reductions dropping the average cost of interest-bearing deposits 19 bps Highlights • EPS grew by 36% • Efficiency ratio declined by 9.65% • Improved credit quality metrics • Bancorp total risk-bas
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 44% non-interest bearing deposits with a 1.36% cost of deposits in 4Q24 Robust Capital Levels & Liquidity Regulatory capital ratios remain comfortably above
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 $23.09 $23.42 • Proven ability to grow both $21.91 organically and through M&A $20.57 $20.00 $18.99 • Consistent cash dividend provides $18.35 $16.87 stab
Slide 10: Robust Capital Ratios
Robust Capital Ratios As of 12/31/24 • We maintained high capital levels and are in a position of strength 16.5% 15.3% 15.3% • Total risk-based capital of 16.5% • Tangible common equity ratio of 9.9% 10.0% 10.5% 9.9% • No stock repurchases in 4Q24 8.0% 7.9% 6.5% 5.0% Common Equity Tier- Total Tier-O
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights S E C T I O N 02
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 1.36% (interest-bearing 2.44%) for Q4 and 1.32% (interest-bearing 2.37%) for the month of December • Bank began targeted deposit rate reductions mid-August with i
Slide 13: Granular Deposit Account Composition
Granular Deposit New Accounts Mix (by count) 4Q24 Account Composition Existing Relationships - New $ 18% • 43% of new accounts consisted of new New relationships to the Bank • 63% of new accounts were non-interest Relationships 43% 1,045 bearing by count Account Migration • 70% of new accounts were
Slide 14: Strong Liquidity: $1.8 Billion in Net Availability
Strong Liquidity: $1.8 Billion in Net Availability • Immediately available contingent funding represented 197% of December 31, 2024 estimated uninsured and/or uncollateralized deposits • The Bank has long-established minimum liquidity requirements regularly monitored using metrics and tools similar
Slide 15: Prudent, Sustainable Model for Loan Growth
Five-year compound annual loan growth rate: 2.7%1 Prudent, Sustainable Model for Loan Total Loans ($ 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 • Notable pipeline growth and $1.843 diversification from key hires, enha
Slide 16: Well-diversified Loan Portfolio
Well-diversified Loan Portfolio As of 12/31/24 - No material changes from 3Q24 • Loan portfolio is well-diversified across borrowers, industries, loan and property types within our geographic footprint • 87% of all loans and 93% of loans excluding nonprofit organizations are guaranteed by owners of
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 27 $91.7MM $86.5MM 4.99% 1.21x 2026 * 2026 25 $93.8MM $86.8MM
Slide 18: Non-owner Occupied Office Exposure
Non-owner Occupied Office Exposure As of 12/31/24 - No material changes from 3Q24 • $350 million in credit exposure spread across our lending footprint comprised of 144 loans • $2.4 million average loan balance – largest loan at $16.1 million • 59% weighted average loan-to-value and 1.68x weighted a
Slide 19: NOO CRE Portfolio Diversified Across Property Type & County
NOO CRE Portfolio Diversified Across Property Type & County As of 12/31/24 - No material changes from 3Q24 Retail 4Q24 Warehouse & Industrial 4Q24 Multifamily 4Q24 San Francisco 3% San Francisco Sonoma Alameda 11% Sonoma 12% Marin 6% 15% 10% Sonoma 28% San Francisco Sacramento Other Alameda 30% 20%
Slide 20: Owner-Occupied CRE Portfolio
Owner-Occupied CRE Portfolio As of 12/31/24 - No material changes from 3Q24 OO CRE by Type 4Q24 OO CRE by County 4Q24 OO CRE Office Portfolio by County 4Q24 Retail Napa 7% Marin 16% Marin Napa Industrial 23% School 20% 22% 21% 15% Sacramento Alameda $322MM Wine Alameda 14% $322MM 19% 6% $63MM 10% Sa
Slide 21: Construction Portfolio Concentrations
Construction Portfolio Concentrations As of 12/31/24 Construction by Type 4Q24 Construction by County 4Q24 Marin 9% Other Bay Area 13% 1-4 Residential 45% Multi-Family $37MM 55% Napa $37MM 7% San Francisco 71% Average Balance: $3.5MM Largest Loan: $11.4MM Wtd. Avg. LTV*: 66% Total Balance: $37.0MM U
Slide 22: High-Quality Securities Portfolio Generates Cash Flow
High-Quality Securities Portfolio Generates Cash Flow Data as of 12/31/24 AFS Securities Portfolio HTM Securities Portfolio USTs 3% Corporate Bonds Corporate Bonds & Other 3% Municipal Bonds 1% 7% Municipal Bonds 22% GSEs 16% $387.5MM $879.2MM GSEs 2% Agency MBS/CMO Agency MBS/CMO 72% 74% ($ in mill
Slide 23: Income Statement Highlights
Income Statement Highlights S E C T I O N 03
Slide 24: Net Interest Margin Drivers
Net Interest Margin Drivers • Linked-quarter NIM increased 10 bps due primarily to reduction of cost of deposits and increased yield on loans and investment securities, partially offset by lower average balances and lower rates given the Federal Funds rate cuts on due from bank accounts • The Bank b
Slide 25: Loans & Securities — Repricing & Maturity
Loans & Securities — Repricing & Maturity $ in millions, unless otherwise indicated Total Loans1 * at 12/31/2024 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 Ra
Slide 26: Total Non-Interest Components
Total Non-Interest Components Non-interest Income ($ in millions) Non-interest Expense ($ in millions) $79.5 $81.8 $9.1 $8.6 $10.1 $10.9 $72.6 $75.3 $5.0 0.36% $58.0 $58.5 0.30% 0.29% 0.25% 111.6% 0.12% 73.8% 77.3% (0.57)% 63.1% 55.3% 55.6% 54.4% $(21.4) 2019 2020 2021 2022 2023 2024 2019 2020 2021
Slide 27: Capital & Asset Quality
Capital & Asset Quality S E C T I O N 04
Slide 28: History of Strong Asset Quality
History of Strong Asset Quality • Allowance for credit losses to total loans of 1.47%, consistent with prior quarter • Actively managed one non-accrual commercial relationship to obtain $4.7 million paydown • Consistent, robust credit culture and underwriting principles support strong asset quality
Slide 29: AOCI and Tangible Equity
AOCI and Tangible Equity $500.0 80.0% $418.4 70.0% $414.6 $416.2 $415.5 $415.5 $407.9 $398.4 $400.0 $389.0 $390.2 $387.7 $390.0 $378.7 $53.0 $55.1 $62.0 $69.4 $76.6 60.0% $73.7 $31.3 $26.5 $30.1 $37.3 $58.0 $80.0 $362.5 $360.4 $358.9 $361.2 $359.9 $352.6 $346.8 $341.4 $341.8 $331.0 $334.2 50.0% $300
Slide 30: Appendix
Th. Bank of Marin Bancorp Appendix
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) December 31, 2024 Tangible Common Equity - Bancorp Total stockholders' equity $ 435,407 Goodwill and core deposit intangible (75,546) Total TCE a 359,861 Unrealized losses on HTM securities, net
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, except per share amounts; unaudited) Year ended Net (loss) income December 31, 2024 December 31, 2023 Net (loss) income (GAAP) $ (8,409) $ 19,895 Adjustments: Losses on sale of investment secu
Slide 33: 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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