Bank Of Marin Bancorp · NASDAQ:BMRC
Bank Of Marin Bancorp — D.A. Davidson 23rd Financial Institutions Virtual Conference 2021
20 slides from Bank Of Marin Bancorp's conference presentation, May 3, 2021
Slide 1: Banking with a disciplined approach to growth
Banking with a disciplined approach to growth D.A. Davidson 23rd Financial Institutions Virtual Conference May 5-6, 2021
Slide 2: Forward-Looking Statements
2 Nasdaq: BMRC 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 b
Slide 3: Bank of Marin Bancorp
Bank of Marin Bancorp Recent awards: FIVE STAR BANK BAUER 3 Nasdaq: BMRC Headquarters Novato, California Marin County, North of San Francisco Employees, full-time equivalent 282 Assets $3.1 billion Footprint 25 locations in San Francisco Bay Area Ticker BMRC (Nasdaq Capital Markets) Founded 1989 Fir
Slide 4: Management team
Russell A. Colombo President, Chief Executive Officer •46 years in banking •Comerica Bank, Imperial Bank, Security Pacific, Union Bank Tim Myers EVP, Chief Operating Officer •25 years in finance and banking •U.S. Bank, Comerica Bank, Imperial Bank Rich Lewis EVP, Chief Information Officer •25 years
Slide 5: Balanced Approach to Growth Creates Long-Term Value
5 Nasdaq: BMRC Balanced Approach to Growth Creates Long-Term Value 5 year average annual return: 11.96%1 1As of March 31, 2021 10 year average annual return: 9.76%1 Total annual shareholder return averages 11.75% over 20 years1 As of 4/30/21 the stock price was $35.42 Book Value per Common Share Clo
Slide 6: Steady Loan Growth: Prudent, Sustainable Growth Model
Steady Loan Growth: Prudent, Sustainable Growth Model 6 Nasdaq: BMRC ($ billions) Five-year compound annual loan growth rate: 8.02% (4.03% excluding PPP loans) 2 1 Net of deferred unaccreted PPP loan fees and costs of $8.0 million. 2 Compounded annual growth rate from March 31, 2016 to March 31, 202
Slide 7: Low-Cost Deposit Base: A Key Competitive Advantage
Low-Cost Deposit Base: A Key Competitive Advantage ($ billions) 7 Nasdaq: BMRC 1 Compounded annual growth rate from March 31, 2016 to March 31, 2021. Q1 2021 Cost of Deposits 0.07% Five-year compound annual deposit growth rate: 9.58% (13.32% including off-balance sheet deposits) 1 Total Dep osits $1
Slide 8: Recent Results
Recent Results 8 Nasdaq: BMRC Q1’21 Q1’20 FY’20 Earnings $8.9MM $7.2MM $30.2MM Diluted EPS $0.66 $0.53 $2.22 Deposit Cost 0.07% 0.21 % 0.11 % Total Deposits $2,656MM $2,307MM $2,504MM Total Loans $2,122MM $1,844MM $2,089MM Tax Equivalent NIM 3.19 % 3.88 % 3.55 % Efficiency Ratio 62.13%1 56.79 % 57.0
Slide 9: Strong Capital Ratios Support Future Growth Opportunities
Strong Capital Ratios Support Future Growth Opportunities 9 Nasdaq: BMRC 6.5% 8.0% 10.0% 5.0% 14.6% 14.6% 15.7% 10.5% 14.5% 14.5% 15.6% 9.9% Well Capitalized Threshold Bank of Marin Bancorp (as of 3/31/21) Bank of Marin Pro Forma (as of 3/31/21) Common Equity Tier-One Risk-Based Capital Total Tier-O
Slide 10: Peer Comparison
Peer Comparison Financial Measures 10 Nasdaq: BMRC BMRC Q4 2020 Peer Median Q4 2020 Percentile Non-Interest Bearing/Total Deposits 54.1 % 35.8 % 100% Gross Loan Growth Rate (year over year) 13.3 % 10.6 % 59.6 % NPAs/Assets 0.3 % 0.3 % 48.5 % Efficiency Ratio 59.7 % 58.7 % 42.2 % Return on Average As
Slide 11: Dependable Earnings and Dividend Growth
$1.52 $1.89 $1.27 $2.33 $2.48 $2.22 $0.45 $0.51 $0.56 $0.64 $0.80 $0.92 $18.4 $30.2 Earnings per Share Dividends per Share Net Income 2015 2016 2017 2018 2019 2020 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 Dependable Earnings and Dividend Growth 11 Nasdaq: BM
Slide 12: Bank of Marin Expands Northern California Presence with Merger with American River Bank
Bank of Marin Expands Northern California Presence with Merger of Bank of Marin and American River Bank Investor Presentation | April 19, 2021
Slide 13: Strategic Rationale
Strategic Rationale 2 Strategic Rationale Financially Attractive • 14.2% accretive to 2022 earnings per share (fully phased-in cost savings) • 3.9% tangible book value dilution with a 3.5 year earnback • >15% internal rate of return • Robust pro forma capital ratios • Expands combined company footpr
Slide 14: American River Bank profile
Balance Sheet ($mm) Total Assets 916.1$ Total Loans 475.4 Total Deposits 788.6 Tangible Common Equity 76.6 Profitability / Rates for the Quarter Ended 3/31/2021 (%) Net Income ($000s) 2,647$ Return on Average Assets 1.21 Return on Average Tangible Common Equity 14.00 Net Interest Margin 3.58 Efficie
Slide 15: Pro Forma Profile
Pro Forma Profile 4 Enhanced Northern California Branch Footprint Top 5 Markets of Operation Financial Highlights as of 3/31/2021 • BMRC (21) • BMRC HQ • AMRB (10) • AMRB HQ Sorted by pro forma deposits 1 2 3 4 5 Marin Sacramento Sonoma Alameda Napa Deposits ($mm) Market Rank $1,816 $437 $396 $287 $
Slide 16: Greater Sacramento Region Market Highlights
Greater Sacramento Region Market Highlights 5 • American River Bank expands BMRC’s presence into a growing Greater Sacramento Region • The Greater Sacramento region has a population of ~2.6 million • The population of Sacramento-Roseville-Folsom MSA is expected to grow 3.6% from 2021 to 2026, compar
Slide 17: Pro Forma Loan and Deposit Composition
Pro Forma Loan and Deposit Composition 6 + = + = Loans / Deposits (excl. PPP): 71.6% Loans / Deposits (excl. PPP): 56.8% Loans / Deposits (excl. PPP): 68.2% Total Deposits: $2,509,670 Total Deposits: $744,425 Total Deposits: $3,254,095 Cost of Deposits: 0.07% Cost of Deposits: 0.11% Cost of Deposits
Slide 18: Transaction Assumptions
Transaction Assumptions 7 Earnings • ~$3.4 million, or 0.50% of AMRB’s non-time deposits • Amortized sum-of-the-year digits over 10 years Cost Savings Transaction Expenses Fair Market Value Adjustments Core Deposit Intangibles • Consensus earnings estimates for both companies • ~$6.1 million, or 35.
Slide 19: Transaction Overview
Transaction Overview 8(1) Based on BMRC’s stock price of $39.06 as of 4/16/2021. (2) Includes consideration paid for AMRB shares and the value of AMRB options paid out in cash by BMRC. (3) For the period ended 3/31/2021. (4) Core deposits equal to total deposits less time deposits greater than $100,
Slide 20: Contact Us
Contact Us 9 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 Drumme
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