Bank Of Marin Bancorp · NASDAQ:BMRC
Bank Of Marin Bancorp — DA Davidson West Coast Bank Tour Conference 2021
23 slides from Bank Of Marin Bancorp's conference presentation, Aug 16, 2021
Slide 1: Banking with a disciplined approach to growth
Banking with a disciplined approach to growth DA Davidson West Coast Bank Tour Conference August 17-18, 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
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 349* Assets $4.0 billion** Footprint 35 locations across 10 Northern CA counties Ticker BMRC (Nasdaq Capital Markets) Founded
Slide 4: Management team
Russell A. Colombo Chief Executive Officer ◦46 years in banking ◦17 years with Bank of Marin Tim Myers President & Chief Operating Officer ◦25 years in finance and banking ◦14 years with Bank of Marin Rich Lewis EVP, Chief Information Officer ◦25 years in financial services ◦Joined Bank of Marin in
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: 7.86%1 1As of June 30, 2021 10 year average annual return: 7.81%1 Total annual shareholder return averages 10.19% over 20 years1 As of 8/13/21 the stock price was $36.11 Book Value per Common Share Closi
Slide 6: Prudent, Sustainable Model for Loan Growth
Prudent, Sustainable Model for Loan Growth 6 Nasdaq: BMRC ($ billions) Five-year compound annual loan growth rate: 6.70% (3.92% excluding PPP loans) 2 1 Net of deferred unaccreted PPP loan fees and costs of $6.5 million. 2 Compounded annual growth rate from June 30, 2016 to June 30, 2021. PPP Loans:
Slide 7: Payment Relief Program Status Update
7 Nasdaq: BMRC Payment Relief Program Status Update ◦ Since the onset of the pandemic, Bank of Marin provided payment relief for 269 loans totaling $402.9 million, most of which resumed normal payments or paid off. ◦ The table below outlines outstanding loan balances by industry/collateral type at 1
Slide 8: Low-Cost Deposit Base: A Key Competitive Advantage
Low-Cost Deposit Base: A Key Competitive Advantage ($ billions) 8 Nasdaq: BMRC 1 Compounded annual growth rate from June 30, 2016 to June 30, 2021. Q2 2021 Cost of Deposits 0.07% Five-year compound annual deposit growth rate: 9.49% (10.87% including off-balance sheet deposits) 1 Total Dep osits $1.7
Slide 9: 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 9 Nasdaq: BMR
Slide 10: Strong Capital Ratios Support Future Growth Opportunities
Strong Capital Ratios Support Future Growth Opportunities 10 Nasdaq: BMRC 6.5% 8.0% 10.0% 5.0% 14.5% 14.5% 15.5% 10.0% Well Capitalized Threshold Bank of Marin Bancorp (as of 6/30/21) Common Equity Tier-One Risk- Based Capital Total Tier-One Risk-Based Capital Total Risk-Based Capital Tier-One Lever
Slide 11: Peer Comparison
Peer Comparison Financial Measures 11 Nasdaq: BMRC BMRC Q1 2021 Peer Median Q1 2021 Percentile Non-Interest Bearing/Total Deposits 54.4 % 36.6 % 100% Gross Loan Growth Rate (year over year) 15.1 % 13.4 % 59.0 % NPAs/Assets 0.3 % 0.2 % 40.9 % Efficiency Ratio 62.1 % 57.5 % 27.9 % Return on Average As
Slide 12: YTD June 2021 Results: BMRC & AMRB
YTD June 2021 Results: BMRC & AMRB 12 Nasdaq: BMRC BMRC AMRB YTD 2021 YTD 2021 vs YTD 2020 YTD 2021 YTD 2021 vs YTD 2020 Earnings $18.2MM $3.6MM $5.0MM $1.8MM Diluted EPS $1.37 $0.30 $0.84 $0.30 Deposit Cost 0.07 % (8 bps) 0.08 % (17 bps) Total Deposits $2,684MM ($96.0MM) $788MM $46.0MM Total Lo
Slide 13: AMRB Acquisition Status Update
AMRB Acquisition Status Update – as of August 6, 2021 13 Nasdaq: BMRC Source: S&P Global, California Credit Union League, Bureau of Labor Statistics, Colliers International, and Greater Sacramento Economic Council. 7 89 52 51 153 51 4 39 67 77 77 77 • The terms of the merger agreement were met and t
Slide 14: Appendix: Acquisition Announcement
Appendix Acquisition Announcement Investor Presentation – April 19, 2021 (Based on information known as of April 19, 2021 which may differ from consummation of the merger on August 6, 2021.)
Slide 15: Bank of Marin Expands Northern California Presence with Merger
7 89 52 51 153 51 4 39 67 77 77 77 Bank of Marin Expands Northern California Presence with Merger of Bank of Marin and American River Bank Acquisition Announced April 19, 2021
Slide 16: Strategic Rationale
Strategic Rationale 16 Nasdaq: BMRC 7 89 52 51 153 51 4 39 67 77 77 77 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
Slide 17: American River Bankshares Overview
American River Bankshares (NASDAQ: AMRB) Overview 17 Nasdaq: BMRC Branch Locations Financial Highlights as of 3/31/20217 89 52 51 153 51 4 39 67 77 77 77 193 50 20 Source: Company documents, S&P Global, FactSet, and FDIC Summary of Deposits. Note: Deposit market share data as of 6/30/2020. Excludes
Slide 18: Greater Sacramento Region Market Highlights
Greater Sacramento Region Market Highlights 18 Nasdaq: BMRC • 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 t
Slide 19: Pro Forma Profile
Pro Forma Profile 19 Nasdaq: BMRC Enhanced Northern California Branch Footprint Top 5 Markets of Operation7 89 52 51 153 51 4 39 67 77 77 77 193 50 20 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 Alame
Slide 20: Transaction Assumptions
Transaction Assumptions 20 Nasdaq: BMRC 7 89 52 51 153 51 4 39 67 77 77 77 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 est
Slide 21: Transaction Overview
Transaction Overview 21 Nasdaq: BMRC 7 89 52 51 153 51 4 39 67 77 77 77 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
Slide 22: Pro Forma Loan and Deposit Composition
Pro Forma Loan and Deposit Composition 22 Nasdaq: BMRC Bank of Marin Bancorp American River Bankshares Pro Forma Source: S&P Global. Financial data as of 12/31/2020. Note: Pro forma excludes purchase accounting adjustments.
Slide 23: Contact Us
Contact Us 23 Nasdaq: BMRC Russell A. Colombo Chief Executive Officer (415) 763-4521 russcolombo@bankofmarin.com Tani Girton EVP, Chief Financial Officer (415) 884-7781 tanigirton@bankofmarin.com Tim Myers President & Chief Operating Officer (415) 763-4970 timmyers@bankofmarin.com Media Requests: Be
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