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Edited Transcript of BMRC earnings conference call or presentation 23-Oct-17 3:30pm GMT

Thomson Reuters StreetEvents

Q3 2017 Bank of Marin Bancorp Earnings Call

Novato Oct 24, 2017 (Thomson StreetEvents) -- Edited Transcript of Bank of Marin Bancorp earnings conference call or presentation Monday, October 23, 2017 at 3:30:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Jarrod Gerhardt

Charter Private Bank - Former SVP and Director of Mortgage & Marketing

* Russell A. Colombo

Bank of Marin Bancorp - President, CEO & Director

* Tani Girton

Bank of Marin Bancorp - Executive VP & CFO

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Conference Call Participants

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* Andrew Brian Liesch

Sandler O'Neill + Partners, L.P., Research Division - Director, Equity Research

* Donald Allen Worthington

Raymond James & Associates, Inc., Research Division - Research Analyst

* Jacquelynne Chimera Bohlen

Keefe, Bruyette, & Woods, Inc., Research Division - MD, Equity Research

* Jeffrey Allen Rulis

D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst

* Justin Eun

FIG Partners, LLC, Research Division - Research Associate

* Nathan James Race

Piper Jaffray Companies, Research Division - VP & Senior Research Analyst

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Presentation

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Jarrod Gerhardt, Charter Private Bank - Former SVP and Director of Mortgage & Marketing [1]

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Good morning, and thank you for joining us for Bank of Marin Bancorp's Earnings Call for the Third Quarter Ended September 30, 2017. I am Jarrod Gerhardt, Senior Vice President, Director of Marketing for Bank of Marin. (Operator Instructions).

As a reminder, this conference is being recorded on October 23, 2017.

Joining us on the call today are Russ Colombo, President and CEO; and Tani Girton, Chief Financial Officer.

Our earnings press release, which was issued this morning, can be found on our website at bankofmarin.com, where this call is also being webcast.

Before we start, I want to emphasize that the discussion on this call is based on information we know as of today, October 23, 2017, and may contain forward-looking statements that involve risks and uncertainty. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, please review the forward-looking statements disclosure in our earnings press release as well as our SEC filings.

Following the prepared remarks, our team will be available for questions.

And now, I would like to turn the call over to Russ Colombo.

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [2]

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Thank you, Jarrod. Good morning, and welcome to the call. Before we review our results for the quarter, I want to take a moment to acknowledge the terrible disaster that has hit our North Bay community. The recent fires in Sonoma, Napa, Lake and Solano counties. The situation was a very fluid one for more than a week, and our chief concern was the safety and well-being of everyone affected.

We are extremely grateful that all Bank of Marin and Bank of Napa employees are accounted for and safe, and our hearts go out to those in the community who were not as fortunate.

We are surveying our customer base to determine the impact to their businesses and homes. Bank of Napa is doing the same. The losses are enormous, and while the damage continues to be assessed, we are committed to helping our customers and our community to recover and rebuild.

Now let's discuss our results for the third quarter. We continue to execute very well and we made significant progress in furthering our growth initiatives. Here are a few highlights.

On July 31, we announced our plan to acquire Bank of Napa, and we are on track to close this acquisition in the fourth quarter of this year. We are very excited about this addition to Bank of Marin. Our banks share a complementary, community-focused business-banking model built on a solid core deposit base and a strong credit culture. This acquisition will be accretive to earnings. And following the close, we will be the largest community bank in Napa County by deposit share. The combined bank will be approximately $2.4 billion in total assets, with 23 branches in 5 Bay Area counties.

We also made some additions to our executive team during the quarter. In September, James Kimball was granted a newly created position of Chief Operating Officer. Jim has more than 28 years of commercial banking experience and joins Bank of Marin from Wells Fargo Bank, where, among many assignments, he served as Senior Vice President and Region Head for the North Coast Regional Commercial Banking Office and Wine Industry Specialty Group.

We also welcomed Scott McAdams, the former Head of Commercial Banking for Mechanics Bank, to head our Napa and Sonoma Commercial Banking teams. These senior-level hires underscore our commitment to commercial banking and confidence in our growth plan. We're delighted to be attracting executives of this caliber, who have great depth of experience and established relationships in their markets. This will help us leverage our platform and execute our growth strategy as we look to the future.

We had very strong performance in the third quarter. We successfully grew core deposits and our loan portfolio. Our credit quality remains excellent. And once again, we delivered solid earnings.

Total deposits grew by $50 million to $1.9 billion in the quarter. Noninterest-bearing deposits continue to be a source of strength for the bank, making up 49% of total deposits. The total cost of deposits was 7 basis points.

Net loan growth for the quarter was $33 million, bringing our loan portfolio to $1.524 billion. Originations for the quarter were $42 million.

Loan payoffs for the quarter were $25 million, down from $48 million in the second quarter and $39 million in the third quarter last year.

Our credit quality continues to be excellent and our metrics support that. We have maintained our highly disciplined approach to underwriting.

Diluted earnings per share was $0.83 in the third quarter of 2017. Acquisition related expenses had a $0.05 per share negative impact on EPS.

We're pleased to announce that our Board of Directors has declared a quarterly cash dividend of $0.29 per share. This is the 50th consecutive dividend paid by the bank.

Now let me turn it over to Tani for additional insights on our financial results.

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Tani Girton, Bank of Marin Bancorp - Executive VP & CFO [3]

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Thank you, Russ. Good morning, everyone. Financially, it was a great quarter on all fronts. Our third quarter net income of $5.1 million was down from $5.2 million last quarter. Third quarter earnings included a $325,000 after-tax expense related to the acquisition of Bank of Napa, without which earnings per share would have been $0.88.

2016 third quarter and year-to-date net income were significantly higher than this year, principally due to a large loan recovery and early payoffs of acquired loans in 2016.

Third quarter net interest income increased $484,000 over second quarter, and the tax-equivalent net interest margin decreased 8 basis points, both due to growth in total earning assets, and a higher allocation of cash, which carries lower yields than other assets.

Third quarter noninterest income of $2.1 million was virtually unchanged from the second quarter. And year-to-date, noninterest income was lower than the first 9 months of 2016 due to higher gains on security sales last year.

Noninterest expense of $13 million was up from $12.6 million in the prior quarter, mostly due to $495,000 of acquisition related costs. While our efficiency ratio of 62.5% was up from 61.9% last quarter, noninterest expense relative to total assets is down.

Credit quality remains strong in the quarter. Nonaccrual loans were 0.09% of our loan portfolio, up only slightly from 0.08% in the prior quarter.

Classified loans totaled $33.5 million and accruing past due loans fell to $205,000 from $393,000 in the prior quarter end.

Our loan loss reserve is 1% of total loans, and 1.05% of legacy Bank of Marin loans.

Finally, our return on average assets was 0.95% for the quarter and return on average equity was 8.4%.

Our total risk based capital ratio was 15.1% at September 30, and tangible common equity to tangible assets was 11%.

Our strong capital levels and low cost deposit base position us very well to pursue organic growth and acquisition opportunities that deliver value to our shareholders.

I'll turn it back over to Russ now for some closing comments.

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [4]

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Thank you, Tani. In the third quarter, we continued to successfully deliver on our balanced growth strategy, as demonstrated by our continued growth in deposits and loans and our pending acquisition of Bank of Napa.

We're excited about this acquisition. Our combined resources and higher lending limits will allow us to better serve existing clients, and enhance our ability to add new ones. The announcement has been positively received by both Bank of Napa customers and the community at large. Since we announced the acquisition, we've had a chance to meet with Bank of Napa's staff. In those meetings, we made it clear that they were a key part of what attracted us to the company.

In addition, Bank of Napa's client relationships help us further deepen our presence in the Napa community. We expect this transaction to be accretive and to position us to deliver a strong year of earnings growth in 2018.

Thank you for your time this morning. And we will now open it up to answer your questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Our first question coming from the line of Jeff Rulis with D.A. Davidson.

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Jeffrey Allen Rulis, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [2]

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Just a question on the payoff activity, looks like down, in a linked quarter, almost in half. And I don't know if we could read in anything into that or it's kind of a one quarter thing. Just trying to get a temperature on payoff activity to get a sense that, that may be slowing versus where it's been pretty steady in past quarters.

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [3]

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Right. Jeff, it's -- obviously, it's down a little bit. We -- what we -- we budget every year. We anticipate about 10% of payoffs. And that is a combination of things. Amortization of loans, early payoffs because of sales. Hopefully, very small activity of refinancing elsewhere. And this quarter was particularly good.

For the year, we're down, in total -- our payoffs were down about $10 million versus last year. And so I'm not sure I'd read too much into that, because we still, like I said, when we budget, we really have to show -- I think, to show 5% growth, we budgeted to show 15% volume growth. And that's the way we worked. We -- obviously, if we can keep those numbers lower than the 10%, all the better and -- but I'm not sure I'd read too much into this slightly down quarter in terms of payoffs, which is a good thing, but anyway.

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Jeffrey Allen Rulis, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [4]

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But to your point, the pipelines certainly have, actually quarter-over-quarter, are in good shape from a origination standpoint? Got it.

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [5]

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Yes. Well, I think that the -- I would have to say that the commercial banking officers are doing a very good job of building pipeline, and which, as we all know, the bigger the pipeline, the more kind of comes through the funnel, and so it's really important to continue to grow that and -- so we have a total pipeline which actually exceeds what we had at this time last year.

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Jeffrey Allen Rulis, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [6]

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Got it. And then maybe one for Tani. On the ex accretion impact, core compression of about 6 basis points. I guess that was due to the cash build it -- kind of timing on that? Or -- and then maybe any comments on the outlook for where do you think core margin is bouncing around?

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Tani Girton, Bank of Marin Bancorp - Executive VP & CFO [7]

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Yes. The bulk of the change in the margin was definitely due to the increase in deposits and thereby, an increase in our cash position. A little bit of that was deployed into the investment securities. You saw net growth of about $11 million over and above maturities and scheduled amortization there. To the extent that we have the opportunity during the quarter to deploy some of those deposits to deposit networks, we do that and that takes some of the drag off of the net interest margin.

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Jeffrey Allen Rulis, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [8]

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Okay. And then maybe one last one. Just the -- what's the total bank's loan exposure in the Napa and Sonoma counties? And I guess, if you could comment on a pro forma basis with Bank of Napa?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [9]

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In Sonoma -- in Sonoma County, I'll kind of break down a few things. In Sonoma, we have commercial real estate exposure of -- just in excess of about $160 million. In Napa, that's only about $80 million. The wine industry itself were just a little over, in terms of outstandings, a little over $60 million. And so it really has been in home equity lines. Pardon me?

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Jeffrey Allen Rulis, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [10]

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That was both counties? $60 million over Napa, Sonoma?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [11]

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That's both counties. In addition to that, we have just less than $20 million in Sonoma County in equity -- in home equity lines. And only about $5 million in Napa. And that's just Bank of Marin, that does not include Bank of Napa. The good news on all of that, we've been working to assess potential damage to clients. And what we've had -- we've found so far is that we had one mobile home that we had financed that was burned. And that's already been repaid through insurance proceeds. We had one rental property, which was a fourplex, which was burned. And a large buyer, who was not concerned at all about that.

And about winery, is really -- there is only one that had some slight damage to a vineyard, but the other wineries were all fine. And so what we've been doing is going through, again, looking at our clients, looking at ZIP Codes, and matching those against the affected areas throughout the North Bay, to try and assess damage. And so far, we've just found very minimal. Now that being said, the long-term impact to the regions, both Napa and Sonoma, that's something that we can't assess at this point. It's going to be a long road, I suspect, for the communities to rebuild, a couple of years minimum, just to get all the homes back and rebuild. So it's going to be a challenge, and we'll see how it all goes. But obviously, we're going to be monitoring it very closely.

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Operator [12]

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Our next question coming from the line of Tim O'Brien with Sandler O'Neill.

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Andrew Brian Liesch, Sandler O'Neill + Partners, L.P., Research Division - Director, Equity Research [13]

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This is Andrew on for Tim. Just a question on the deposits that you referenced coming in this quarter, any sense of the timing of how these or when these may be distributed out to some of the owners or beneficiaries?

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Tani Girton, Bank of Marin Bancorp - Executive VP & CFO [14]

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So I think that what we're trying to express there is that the increase in deposits is sometimes due to sales of businesses or settlement of the State. Some of that may come in, in bulk and some of it may go out, not necessarily 100% of it, but that's how we account for some of the fluctuations in the deposits. I think if you look at the long trend -- long-term trend of the deposits though, it is going up. And we continue to have a strong component in transaction accounts. And so as our customers grow, the cash flows moving through those accounts also tend to grow.

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [15]

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There's also a -- in our portfolio of deposits, we do have a number of large contracts to do a lot of municipal work. And so when they obtain a contract, they're funded for that. And so the dollars come in. And then as they work the project, the dollars work their way down. But if they have ongoing projects, that could continue to grow. And we have seen consistent growth in those. It's not just one, it's a number of accounts that we have in those types of deposit accounts. So it's pretty hard to predict when that'll go out. But it's not in today and then out tomorrow. It's in today and then it -- over the life of the contract, it works its way out.

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Andrew Brian Liesch, Sandler O'Neill + Partners, L.P., Research Division - Director, Equity Research [16]

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Okay. Very helpful. And then just with the TCE ratio at 11% in Bank of Napa, seems like that's progressing smoothly. What are your thoughts on -- to just talk -- discuss the M&A environment right now in your outlook for more deals going forward?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [17]

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Yes, we are very interested in doing more. There are -- we -- as you all know, we've talked about the fact that we're interested in banks in the Bay Area. And as I said before, banks are sold, they're not bought. It's when a board decides it's time that banks gets sold. And so we're very interested. We're certainly well positioned. Our stock price is -- has stayed -- it's actually been up a bit recently. And so we're in a good position to acquire. And we're actively talking to many different banks and -- but there's nothing -- certainly nothing to report at this point.

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Operator [18]

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Our next question coming from the line of Don Worthington with Raymond James.

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Donald Allen Worthington, Raymond James & Associates, Inc., Research Division - Research Analyst [19]

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Just a question on the -- you mentioned there were some loan purchases of tenant and common loans during the quarter. Just curious what the, kind of, general terms are on those and whether you might do more?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [20]

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Yes, we -- there's -- I can tell you that, that purchase was made from Umpqua Bank, and that was a -- they were -- that was a result of TICs that were made by Circle Bank, which Umpqua acquired a number of years back. And so we ended up buying kind of the remainder of the portfolio. They were not active in the business. And so we acquired about $7 million in TIC loans. Primarily in San Francisco, there was a couple that weren't. But for the most part, it's San Francisco. And the terms of those, we reviewed them. We have a -- we actually have a credit minister working for our bank, who used to be Chief Credit Officer at Circle Bank. And his name is Pat McCarty. And he was involved when those were made, so we knew exactly what thing we were getting. And we have a portfolio, and we manage them quite well. So we -- that's why we bought them.

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Donald Allen Worthington, Raymond James & Associates, Inc., Research Division - Research Analyst [21]

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Okay. All right. And then in terms of deposit betas, have you tracked kind of what those have been so far, given the Fed increases that have happened to date?

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Tani Girton, Bank of Marin Bancorp - Executive VP & CFO [22]

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So the deposit betas that we use for modeling are much higher than what we're actually experiencing. In the market, we're not seeing a lot of pressure across the board to increase rates. We'll gets calls now and then for people who see that, that the Feds are raising rates and want to know whether we're doing the same. But in general, there has not been a lot of movement in the industry, in our market, around deposit rate increases.

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Operator [23]

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Our next question coming from the line of Matthew Clark with Piper Jaffray.

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Nathan James Race, Piper Jaffray Companies, Research Division - VP & Senior Research Analyst [24]

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It's actually Nate Race on for Matthew. Just going back to the deployment of the excess cash that built in the quarter. Assuming you get similar loan growth in the fourth quarter, could you kind of just speak to what optionality and what your thinking is in terms of deployment across the securities portfolio into 4Q and into early 2018?

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Tani Girton, Bank of Marin Bancorp - Executive VP & CFO [25]

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Yes. So exactly as you said, we want to make sure that we maintain plenty of liquidity to support our loan growth. And then when we deploy into the securities portfolio, we keep our duration fairly short. It's under 5 years. And that cash component right now, in a way, represents part of our short-term allocation in the securities portfolio because we can get [1.25] at the fen. That's pretty generous compared to what you can get on short-term government-guaranteed securities. So we keep it very conservative. The portfolio is for liquidity purposes primarily.

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Nathan James Race, Piper Jaffray Companies, Research Division - VP & Senior Research Analyst [26]

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Got it. And then just, Russ, if I heard you correctly, it doesn't sound like you guys are expecting any near-term credit events or related provisions tied to the fires that we saw in the third quarter here. But is it just fair to expect a similar reserve build consistent with the loan growth that you guys had this quarter, into 4Q and into early 2018 as well?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [27]

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I missed the last part of your question. Maybe you can repeat that?

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Nathan James Race, Piper Jaffray Companies, Research Division - VP & Senior Research Analyst [28]

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Yes, just thinking in terms of the reserve built potential into the fourth quarter, and into early 2018, obviously, it doesn't sound like you guys are expecting a whole lot of credit losses, with the fires that have transpired, even though it is still early in that process. So just trying to think about the puts and takes from a reserve basis, near term.

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [29]

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Okay, okay. So and -- as we -- we haven't had to reserve for credit issues. We've only had to reserve -- we've only had to reserve for loan growth. If we do try the same kind of loan growth in the fourth quarter, the expectation is we will start reserving a greater amount. We -- but at this point, there wasn't a need to -- with our AAA model, it didn't require that. So -- and we've got such a clean portfolio right now that there is certainly noncredit issues that we have to reserve for ourself. As we see loan growth, then that would drive reserving for the AAA.

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Operator [30]

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Our next question coming from the line of Tim Coffey with FIG Partners.

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Justin Eun, FIG Partners, LLC, Research Division - Research Associate [31]

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This is Justin calling in for Tim. Yes, my first question is, are there any changes to the pending merger with Bank of Napa, as a result of the North Bay fires?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [32]

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No.

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Justin Eun, FIG Partners, LLC, Research Division - Research Associate [33]

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All right. Does management anticipate the North Bay fires will change the current run rate of modest net recoveries then?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [34]

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Of what recoveries?

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Justin Eun, FIG Partners, LLC, Research Division - Research Associate [35]

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Change the current run rate of modest net recoveries?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [36]

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No, I don't think so that -- like I said, it's pretty hard to predict what will be the long-term impact of those fires. But at the short term, we try to analyze customers that were affected, collateral that was affected. And for the most part, except for the ones, the small number of ones that we saw, that we mentioned, we have had -- we've had pretty, I won't say minimal, but a relatively modest amount of impact to our loan portfolio and to our customer base. We have customers that have properties up there that we didn't necessarily finance that had issues with the fires. But it -- long-term, we don't expect those to be affected too harshly. So...

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Justin Eun, FIG Partners, LLC, Research Division - Research Associate [37]

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That's good to hear. In that case, would you say $13 million per quarter is a good run rate for expenses at legacy BMRC?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [38]

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We don't give guidance on expenses. So you can predict yourself.

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Tani Girton, Bank of Marin Bancorp - Executive VP & CFO [39]

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So I do think a couple of factors you can take into account is, there is -- there are going to be more expenses next quarter as we close the acquisition. And you did see -- you can see that we had 8 FTE growth in the quarter. Some of those came a little bit later in the quarter. So there will be some expenses associated with those. But I think those are the main factors that could drive some change.

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Justin Eun, FIG Partners, LLC, Research Division - Research Associate [40]

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Great. Last question, the OREO last quarter was $238,000. What was it for the third quarter of '17?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [41]

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Bank -- going back to the Bank of Alameda, we had 1 OREO, that's just -- that's a legacy from Bank of Alameda, that goes back to when we acquired that bank in -- to the end of 2013. There's been nothing else. That's it.

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Operator [42]

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(Operator Instructions) Our next question coming from the line of Jackie Bohlen with KBW.

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Jacquelynne Chimera Bohlen, Keefe, Bruyette, & Woods, Inc., Research Division - MD, Equity Research [43]

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Russ, I know it's obviously very preliminary to kind of answer some of this stuff. And also, thank you for all the color on the fires, and it's great to hear that there's been so -- such little impact to a lot of the customers of Bank of Marin, just given the scope of everything. Have you noticed, over the last 2 weeks, any change or shift in kind of business operations? And how loan demand and -- are people starting to get back to normal a little bit?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [44]

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It's pretty hard -- it's still pretty hard to judge what the impact is going to be and what the loan demand in, particularly in Sonoma County and Napa. The rest of our operations throughout, whether it's in San Francisco or in Marin County or in East Bay, really that's, it's not really impacted much at all. And so it's clearly difficult. I think, this -- the impact in Napa relative to Sonoma, is much less. Sonoma County, I don't remember -- I think the number keeps changing, but there was over 5,000 homes that were lost there and many more commercial properties and so it's really going to be difficult to judge how that's going to impact the business operations, the businesses in the area. So it's daunting to think of how you're going to rebuild that many homes very quickly. And so I certainly hope the community is going to pull together and they're able to work together to get that done as quickly as possible to get these people back in their homes. It's just that this place (inaudible) people -- we were very fortunate and as I mentioned, we did have 1 employee who lost her home and it's fortunate, their -- her and her husband and 2 kids were -- are safe, but their home is in the Coffee Park area and they lost their home. And so it's going to be so hard to get to from now to kind of get back to the task of rebuilding, planning all those things for all those people that lost homes. So how that's going to impact the business environment in Sonoma County is hard to judge right now, but I have great confidence in our region, in the North Bay, and I'm sure that we will get this -- that we will get it all together very quickly and then get back to normal business operations in Sonoma County.

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Jacquelynne Chimera Bohlen, Keefe, Bruyette, & Woods, Inc., Research Division - MD, Equity Research [45]

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Okay, that's helpful. And I completely understand that, obviously, it's all very preliminary and there is a lot going on. And then given that the Bank of Napa merger is scheduled to close next month, do you have a tentative date for the conversion set?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [46]

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Yes, we're -- in April -- yes, with our conversion, it would be -- the anticipated close date is November -- yes, November 20. And the conversion date is April 25, I believe, is the date, which is 20, 21, which is conversion from (inaudible) with FIS in June, converting them into FIS. So that's the preliminary date, unless for some reason FIS moves it up, which probably is unlikely. We would like it to happen faster but we're kind of a -- we respect with their schedule, so to speak.

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Jacquelynne Chimera Bohlen, Keefe, Bruyette, & Woods, Inc., Research Division - MD, Equity Research [47]

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Okay, so assuming that April 25 is the conversion date, is it fair to say that we'd start off 3Q with a clean run rate on expenses then?

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [48]

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I think there will still be some lingering costs in the third quarter -- certainly in the second quarter and possibly in the third quarter, but pretty clean third quarter, certainly fourth quarter for sure.

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Operator [49]

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There are no further questions at this time. I will turn the call back to you. Please continue with your presentation or closing remarks.

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Russell A. Colombo, Bank of Marin Bancorp - President, CEO & Director [50]

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I want to thank everyone for joining us this morning, and we look forward to talking to you again next quarter. And at that point, we'll have merged Bank of Napa into Bank of Marin and we're very much looking forward to that. So thank you again for your attendance this morning.

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Operator [51]

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Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation, and ask that you please disconnect your lines. Have a great day.