Bank Of Marin Bancorp · NASDAQ:BMRC
Bank Of Marin Bancorp — Q3 2023 Earnings Presentation
19 slides from Bank Of Marin Bancorp's earnings presentation, Oct 23, 2023
Slide 1: Third Quarter 2023 Earnings Presentation
October 23, 2023 Third Quarter 2023 Earnings Presentation
Slide 2: Forward-looking statements
2 Nasdaq: BMRC 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 the 1933 Act a
Slide 3: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights 3 Nasdaq: BMRC Earnings and Profitability • Net Income of $5.3 million • Diluted EPS of $0.33 • Return on Average Assets of 0.52% • Return on Average Equity of 4.94% Key Operating Trends Loans and Credit Quality Deposits and Liquidity Capital • Tax-equivalent NIM of 2.4
Slide 4: Strong Deposit Franchise
Strong Deposit Franchise 4 Nasdaq: BMRC • Total deposits increased $118.5 million or 3.6%, compared to June 30, 2023 • Deposit mix continues to favor a high percentage of non-interest bearing deposits • Total cost of deposits was 0.94% (interest-bearing 1.81%) for the quarter and 1.00% (interest-bea
Slide 5: Granular Deposit Account Composition
5 • YTD new accounts total over 3,600. • Q3 new accounts 50% interest-bearing by count • Q3 new accounts 83% interest-bearing in dollars at a weighted rate of 3.42% • Reciprocal deposit network program (expanded FDIC insurance products) utilization grew by $62.3 million in Q3. New Relationships 38%
Slide 6: Strong Liquidity: $2.1 Billion in Net Availability
Strong Liquidity: $2.1 Billion in Net Availability 6 Nasdaq: BMRC At September 30, 2023 ($ in millions) Total Available Amount Used Net Availability Internal Sources Unrestricted Cash $ 102.6 $ — $ 102.6 Unencumbered Securities 613.7 — 613.7 External Sources FHLB 1,023.2 — 1,023.2 FRB 331.9 (120.0)
Slide 7: HTM and AFS Securities Portfolio
HTM Securities Portfolio Agency MBS/CMO 74% GSEs 16% Municipal Bonds 7% Corporate Bonds 3% AFS Securities Portfolio Agency MBS/CMO 59%GSEs 18% Municipal Bonds 13% SBA 4% Corporate Bonds & Other 5% USTs 1% High-Quality Securities Portfolio Generates Cash Flow Data as of 9/30/23 7 Nasdaq: BMRC $658.8M
Slide 8: Well-diversified Loan Portfolio
Well-diversified Loan Portfolio As of 9/30/23 - No material changes to Q2 2023 8 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 comme
Slide 9: Non-owner Occupied Office Exposure
9 Nasdaq: BMRC • $364 million in exposure spread across our lending footprint comprised of 142 loans • $2.6 million average loan balance – largest loan at $17.0 million • 56% weighted average loan-to-value and 1.68x weighted average debt-service coverage ratio* • City of San Francisco NOO-CRE office
Slide 10: NOO-CRE Portfolio Diversified Across Property Types & Geographies
10 Nasdaq: BMRC Retail as of 3Q23 Warehouse & Industrial as of 3Q23 Multi-Family as of 3Q23 Marin, 18% Sonoma, 17% San Francisco, 3% Alameda, 6% Sacramento, 14% Napa, 18% Other Bay Area, 14% Other, 10% Marin, 14% Sonoma, 15% San Francisco, 26% Alameda, 15% Sacramento, 4% Napa, 6% Other Bay Area, 4%
Slide 11: Owner-Occupied CRE Portfolio
Owner-Occupied CRE Portfolio As of 9/30/23 11 Nasdaq: BMRC Alameda, 14% Marin, 23% Napa, 17% Sacramento, 12% Sonoma, 10% Other, 24% OO CRE by Type as of 3Q23 OO CRE by County as of 3Q23 Office, 18% Industrial, 23% Retail, 7% School, 15% Wine, 10% Church, 7% Gas station/auto, 8% Heath club, 4% Mixed
Slide 12: Construction Portfolio Concentrated in Lower-Risk Property Segments
12 Nasdaq: BMRC Marin, 8% Sonoma, 1% San Francisco, 47% Alameda, 29% Other Bay Area, 15% Construction by Type as of 3Q23 Construction by County as of 3Q23 Multi-family, 65% Self Storage, 10% 1-4 Residential, 24% Land & Ag, 1% Total Balance: $109.3MM Unfunded Commitments: $17.9MM # of Loans: 18 Avg.
Slide 13: Low Refinance Risk in NOO CRE Portfolio through 2024
Low Refinance Risk in NOO CRE Portfolio through 2024 13 Nasdaq: BMRC # of loans Commitment Outstanding Balance Wtd. Avg. Rate Wtd. Avg. DSC Q4 2023 4 $12.6MM $11.6MM 3.80% 1.28x 2024 15 $43.0MM $36.9MM 4.73% 1.66x TOTAL 19 $55.6MM $48.5MM # of loans Commitment Outstanding Balance W.A. Rate Wtd. Avg.
Slide 14: History of Excellent Asset Quality
History of Excellent Asset Quality 14 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 • Ad
Slide 15: Robust Capital Ratios
15 Nasdaq: BMRC 6.5% 8.0% 10.0% 5.0% 15.6% 15.6% 16.6% 10.2% 8.6% 6.1% 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-One Leverage Tangible Common Equity *
Slide 16: Net Interest Margin Drivers
Net Interest Margin Drivers 16 Nasdaq: BMRC • Linked-quarter NIM increased 3 basis points, due primarily to the securities sales proceeds maintained in higher interest-bearing cash balances. • The cost of deposits increased to 100 basis points in the month of September compared to 82 basis points in
Slide 17: Loans & Securities — Repricing & Maturity
Loans & Securities — Repricing & Maturity $ in millions, unless otherwise indicated 17 Nasdaq: BMRC Total Loans1 (1) Amounts represent amortized cost. Based on maturity date for fixed rate loans and variable rate loans at their floors and ceilings and next repricing date for all other variable rate
Slide 18: Appendix
Appendix /é. Bank of Marin Bancorp
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 19 Nasdaq: BMRC (in thousands, unaudited) September 30, 2023 Tangible Common Equity - Bancorp Total stockholders' equity $ 418,618 Goodwill and core deposit intangible (76,850) Total TCE a 341,768 Unrealized losses on HTM securities, net of tax (
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