Bank Of Marin Bancorp · NASDAQ:BMRC
Bank Of Marin Bancorp — Piper Sandler Western Financial Services Conference 2023
19 slides from Bank Of Marin Bancorp's conference presentation, Feb 28, 2023
Slide 1: A strategic and disciplined approach to delivering long-term value
A strategic and disciplined approach to delivering long-term value Piper Sandler Western Financial Services Conference March 1 - 3, 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: 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 313 Assets $4.1 billion Market Capitalization $527.0 million Ticker BMRC (Nasdaq Capital Markets) Founded 1989 First branch op
Slide 4: Management team
Tim Myers President & Chief Executive Officer •26 years in finance and banking •Joined Bank of Marin in 2007 Rich Lewis EVP, Chief Information Officer •26 years in financial services •Joined Bank of Marin in 2020 Tani Girton EVP, Chief Financial Officer •38 years in financial services •Joined Bank o
Slide 5: Relationship and community focused banking model
5 Nasdaq: BMRC • 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- cost funding source for lending activity. Delivering a relationship
Slide 6: Balanced Approach to Growth Creates Long-Term Value
6 Nasdaq: BMRC Balanced Approach to Growth Creates Long-Term Value 1As of December 31, 2022 10 year average annual return: 8.00%1 Total annual shareholder return averages 8.97% over 20 years1 Book Value per Common Share Closing Stock Price 1990 1995 2000 2005 2010 2015 2020 Q4 2022 $— $10.00 $20.00
Slide 7: Prudent, Sustainable Model for Loan Growth
Prudent, Sustainable Model for Loan Growth 7 Nasdaq: BMRC ($ billions) Five-year compound annual loan growth rate: 4.51% 2 1 Net of $99 thousand in unrecognized PPP loan fees and costs. 2 Compounded annual growth rate from December 31, 2017 to December 31, 2022. PPP Loans: $3.5 million 1 $1.68 $1.76
Slide 8: Investment Securities, AOCI and Tangible Equity
Investment Securities, AOCI and Tangible Equity 8 Nasdaq: BMRC M ill io ns $371.0 $341.4 $331.0 $318.4 $334.2 $37.3 $58.0 $80.0 $73.7 35.0% 40.0% 42.0% 40.8% 42.8% 8.8% 8.0% 7.8% 7.5% 8.2% Tangible equity (net AOCI Impact) Accumulated Other Comprehensive Income Accumulated Other Comprehensive Loss I
Slide 9: Low-Cost Deposit Base: A Key Competitive Advantage
Low-Cost Deposit Base: A Key Competitive Advantage ($ billions) 9 Nasdaq: BMRC 1 Compounded annual growth rate from December 31, 2017 to December 31, 2022. Q4 2022 Cost of Deposits 0.08% Five-year compound annual deposit growth rate: 10.70%1 Total Dep osits $2.15 $2.17 $2.34 $2.50 $3.81 $3.57 2017 2
Slide 10: Tax Equivalent Net Interest Margin
3.80% 3.90% 3.98% 3.55% 3.17% 2.96% 3.05% 3.16% 3.26% 3.96% 4.19% 4.16% 3.58% 3.38% 3.21% 3.54% 3.80% Bank of Marin Bancorp Peer Group Median 2017 2018 2019 2020 2021 Q1'22 Q2'22 Q3'22 Q4'22 2.75% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% Tax Equivalent Net Interest Margin 10 Nasdaq: BMRC 1 Peer gro
Slide 11: Deposit Betas
Deposit Betas 11 Nasdaq: BMRC Actual Historical Interest Rates and Deposit Betas Fed Funds Rate Non-Maturity Interest Bearing Deposits Beta Total Deposits Implied Beta December 2015 0.25 % 0.15 % 0.08 % December 2018 2.50 % 0.20 % 2 % 0.10 % 1 % February 2020 Peak (full cycle beta) 0.48 % 15 % 0.24
Slide 12: Disciplined Risk Management
Disciplined Risk Management Capital 12 Nasdaq: BMRC 6.5% 8.0% 10.0% 5.0% 15.0% 15.0% 15.9% 9.6% 8.2% Well Capitalized Threshold Bank of Marin Bancorp (as of December 31, 2022) Common Equity Tier- One Risk- Based Capital Total Tier- One Risk- Based Capital Total Risk- Based Capital Tier-One Leverage
Slide 13: Low Efficiency Ratio Demonstrates Disciplined Expense Control
Low Efficiency Ratio Demonstrates Disciplined Expense Control 13 Nasdaq BMRC 1 Peer group includes major exchange-traded Western region banks with assets of $2 billion to $10 billion. Latest available peer data as of Q2 2022. 2 Non-GAAP adjusted for merger-related expenses through Q2'22. Refer to pa
Slide 14: 2022 & 2021 Results
2022 & 2021 Results (Adjusted for merger-related costs, where applicable) 14 Nasdaq: BMRC 1 FY 2022 and FY 2021 results are non-GAAP adjusted for merger-related expenses. Quarterly data are based on GAAP, as there were no merger-related costs resulting in non-GAAP adjustments for those quarters. Ref
Slide 15: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 15 Nasdaq: BMRC (in thousand, except share data; unaudited) Year ended Net income December 31, 2022 December 31, 2021 Net income (GAAP) $ 46,586 $ 33,228 Merger-related and conversion costs before tax benefits 858 6,458 Income tax benefit of merg
Slide 16: Peer Comparison Financial Measures
Peer Comparison Financial Measures (Adjusted for acquisition-related costs) 16 Nasdaq: BMRC Performance Measures (dollars in thousands) BMRC Q3 2022 Peer Median Q3 2022 Percentile BMRC FY 2021 Peer Median FY 2021 Percentile Non-Interest Bearing/Total Deposits 52.60 % 38.50 % 100.0 % 50.16 % 37.60 %
Slide 17: Dependable Earnings and Dividend Growth
$1.27 $2.33 $2.48 $2.22 $2.30 $2.92 $0.56 $0.64 $0.80 $0.92 $0.94 $0.98 $16.0 $46.6 Earnings per Share Dividends per Share Net Income 2017 2018 2019 2020 2021 2022 $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 $45.0 $50.0 Dependable Earnings and Dividend Growth 1
Slide 18: Bank of Marin's Strategic Priorities
Bank of Marin’s Strategic Priorities 18 Nasdaq: BMRC 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
Slide 19: Contact Us
Contact Us 19 Nasdaq: BMRC 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 yahaira
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