Good morning, and thank you for joining Bancomerein Bancorp's Earnings Call for the Q2 Ended June 30, 2021. I'm Andrea Henderson, Director of Marketing for Bancomerein. Marin. During the presentation, all participants will be in a listen only mode. After the call, we will conduct a question and answer session.
Marin. Marin. This conference call is being recorded on July 19, 2021. Joining us on the call today are Russ Colombo, CEO Tim Myers, President and Chief Operating Officer Tani Guertin, Executive Vice President and Chief Financial Officer and Beth Reisman, Executive Vice President, Chief Credit Officer. Our earnings press release, which we issued this morning, can be found on our Investor Relations page at bankofmarin.com, where this call is also being webcast.
Before we get started, I want to emphasize that the discussion on this call is based on information we know as of Friday, July
March 18, 2021, and may
contain forward looking statements that involve risks and uncertainties. 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 disclosures in our earnings press release as well as our SEC filings. Following our prepared remarks, Russ, Tani, Tim and Beth will be available to answer your questions. And now I'd like to turn the call over to Ross Colombo.
Thank you, Andrea. Good morning, everyone. Bank of Marin continued to generate momentum and strong earnings growth in the Q2. We reported net income of $9,300,000 up from $8,900,000 in the Q1 $7,400,000 in the Q2 of 2020. We continue to prioritize disciplined expense management and underwriting and consistently sound credit quality as we have across our various Marin.
Economic cycles over our 31 year history. Along with our proven relationship banking model, This gives us one of the strongest deposit bases in the country. Importantly, we also have a well designed plan in place to extend our model to Greater Sacramento and Amador County with our acquisition of American River Bank. The acquisition is on track to close in the Q3 as planned. As I have said before, this is a combination of 2 exceptional Marin.
Our teams have diligently worked together to bring the merger toward closing. We've been thrilled with the spirit of partnership, dedication and talent that the American River team brings to the table. We are confident that we will expand our community banking franchise on a regional scale, bringing new products and services to American River customers. We will also benefit greatly from local expertise and proven talent that our new teammates bring to Bank of Marin. Upon closing, Bank of Marin will be a well positioned as a preeminent a business bank serving Northern California with approximately $4,000,000,000 in combined assets.
Gaining scale across the Greater Bay Area, the Greater Sacramento region and Amador County will allow us to develop new revenue opportunities and further increase efficiency, offsetting the challenges of a low interest rate environment. Our 2 organizations Marin. Share a commitment to exceptional customer service and dedication to our local communities that we are all excited to magnify at the regional level. While the pandemic still poses significant risk, I am encouraged because vaccination rates are above the national average in our footprint. And we have begun to reach a new normal.
This sets the stage for a stronger economic activity ahead. Our Bank of Marin team is back in the office actively engaging with customers. Now I'll turn to the key highlights of our 2nd quarter results. We generated diluted earnings per share of $0.71 Total loans decreased to $2,000,000,000 from $2,100,000,000 in the prior quarter, primarily as a result of PPP loan forgiveness. As of June 30, the Small Business Administration had forgiven and paid off $189,000,000 of our total PPP loans.
Our commercial bankers are working to understand and meet the needs of their customers' evolving credit needs. And they are also identifying new opportunities across our markets. We expect these efforts will help us grow our portfolio over time. Credit quality remains strong. Non accrual loans decreased slightly in the 2nd quarter to 9,200,000 or 0.46 percent of total loans.
Classified loans increased by $4,400,000 from the prior quarter to $30,800,000 Total deposits grew $27,000,000 to $2,700,000,000 primarily driven by our customers depositing Marin. PPP funds into their accounts and new account openings. The average cost of deposits was just 7 basis points in the 2nd quarter, reflecting the low rate environment in our relationship banking model. Non interest bearing deposits represented 54% Moran of Total Deposits. Given our strong capital and liquidity, on July 16, the Board of Directors approved a new share repurchase program under which we may repurchase up to $25,000,000 of our outstanding common stock.
Also on July 16, Due to our continued profitability, the Board of Directors declared a cash dividend of $0.24 per share, an increase of $0.01 per share from the prior quarter. This represents a 34% payout ratio and the 65th consecutive quarterly dividend paid by Bank of Marin Bancorp. Now I'd like to recognize an important change to our leadership team. Tim Myers, Chief Operating Officer was promoted from Executive Vice President to President in May. Tim is now responsible for the management of Commercial Banking, Retail Banking, Centralized Operations and Technology, Marin, Wealth Management and Trust and Marketing.
As COO, he proved his ability to lead in an ever changing environment And this new role is a natural progression of that success. Now let me turn it over to Tim to provide more detail on our lending activity and our expansion into the Greater Sacramento region.
Thank you, Russ. Excluding PPP loans, our total portfolio held steady at 1,800,000,000 Marin. New loan originations in the Q2 totaled $44,000,000 with interest rates low and deleveraging trends continuing, however, Loan payoffs of $61,000,000 are influencing that growth. Those payoffs consisted largely of HELOC, Ten in common loans and commercial loans on which underlying assets were sold or paid off with cash. While optimistic about new opportunities, we remain disciplined and patient.
We are focused on prudent durable growth, not growth for growth sake. We remained an active PPP lender until the program's funds were exhausted in early May of this year. And our 2nd round of PPP funding Totaled 10.63 loans for $136,000,000 We did this to support our customers and communities and help ensure a strong recovery for small businesses as we all emerge from the pandemic. PPP loans outstanding were $248,000,000 at June 30 versus $365,000,000 at March 31 and $299,000,000 at June 30 a year ago. We expect the remainder of the portfolio to steadily decline in the second half of this year as loans continue to be forgiven and paid off by the SBA.
As of July 13, a total of 13.95 loans amounting to $202,000,000 have been approved for forgiveness by the SBA. Of the loans remaining, 70% For 10.72 loans totaling $46,000,000 or $150,000 or less and have access to streamlined SBA forgiveness Moran. With respect to the bank's payment relief program, at the close of the second quarter, we had just 6 borrowing relationships with 9 loans totaling $43,000,000 that were benefiting from loan deferrals or similar payment relief tied to the pandemic. We are working with these clients closely and expect the majority to resume payments. As we look ahead, We are optimistic about new growth opportunities across our San Francisco Bay Area footprint in addition to our expansion into Greater Sacramento and Amador.
The Bay Area economy is among the most vibrant and prosperous in the country. Sentiment among our commercial clients is upbeat and steadily improving. The economy here is open and new opportunities are emerging. At the same time, Sacramento is growing in population, Household income and new business formations. There has been more than $6,000,000,000 invested in new projects in the region over the past 5 years and more is underway.
The greater scale and broader footprint positions Bank of Marin as exceptionally well As the economy gains momentum and our clients make plans to expand. I will now turn the call over to Tani to dig deeper into our financial results.
Thank you, Tim. As Russ noted, we reported net income of $9,300,000 in the Q2 of 2021. Diluted earnings per share of $0.71 compares to $0.66 in the prior quarter and $0.55 in the 2nd quarter last year. Net interest income totaled $24,500,000 in the 2nd quarter compared to $22,000,000 in the prior quarter and $24,400,000 a year ago. Notable trends and drivers in net interest income include significantly lower interest rates Year over year interest and fee income from PPP loans and the early subordinated debt Marin.
Redemptions in the Q1 of 2021. Year to date, the bank has recognized $4,300,000 in fees, net of deferred costs Moran on PPP loans. As of June 30, there were $6,500,000 outstanding and yet to be recognized into income. The tax equivalent net interest margin was 3.28% in the 1st 6 months of 2021 compared to 3.7% last year. SBA PPP loans contributed 5 basis points The tax equivalent net interest margin year to date and 12 basis points in the 2nd quarter.
The early redemption of subordinated debt reduced tax equivalent net interest margin by approximately 18 basis points in the Q1. In the Q2, we recorded a reversal of the provision for credit losses on loans of 920,000 and a reversal of the provision for losses on unfunded commitments of $612,000 Both reversals were due primarily to improvements in Marin. Non interest income totaled $2,000,000 in the Q2 of 2021 compared to $1,800,000 in the prior quarter and Q2 a year ago. The increases were mostly attributable to debit card interchange fees from increased levels of activity And higher wealth management and trust services income from new accounts and favorable market performance. Additionally, the discontinuation of pandemic related fee waivers is supporting noninterest income.
Noninterest expense increased $144,000 from the Q1 to 15,600,000 Increases in charitable contributions and acquisition related costs were mostly offset by lower expenses related to stock based compensation and 401 resets in the Q1. Year to date, non interest expense increased $1,700,000 to $31,000,000 compared to the 1st 6 months of 2020. Salaries and related benefits were higher by 755,000 over half of which was related to fewer deferred SBA PPP loan origination costs. Professional services expense increased year over year due to some pandemic related delays in 2020 activities posted in the Q1 and $335,000 in acquisition related expenses recorded in the 2nd quarter. Total acquisition related expenses in the 2nd quarter year to date were 351,000 The efficiency ratio was 58.6% in the 2nd quarter, down from 64.6% in the prior quarter and up from 53% in the Q2 of 2020.
Efficiency ratios for all prior periods Have been adjusted to reflect the reclassification of provisions for losses on unfunded commitments from non interest expense Moran to a separate line item under net interest income on the income statement. Return on average assets and return on average
Marin.
The end of the quarter was 15.5% compared to 15.7% at March 31 15.8% a year ago, all considerably above well capitalized regulatory requirements. The share repurchase program approved in January 20 Marin. It was completed in May 2021. Through the program, we repurchased 298,000 shares totaling 11,000,000 in the 2nd quarter of 2021, with cumulative repurchases of 692,000 shares totaling 25,000,000 The bank continues to build a sound balance sheet, manage risk and deliver consistent and solid profitability. We are well positioned to respond to different interest rate environments.
The American Bank acquisition, Along with our relationship banking model and capital management initiatives, all serve to reinforce the long term success of Bancor Marin. Now Russ would like to share some closing comments with you.
Thank you, Tony. Bank of Marin produced strong results for our shareholders, growing both net interest income and non interest revenue in the second quarter, while managing expenses closely and maintaining pristine credit quality. We are in an excellent position to close our acquisition of American Riverbank next month. We will waste no time capitalizing on our larger Moran. We have successfully executed 3 previous acquisitions And we are drawing on that expertise and working closely with our American River colleagues to ensure a smooth integration.
As always, I am proud of the discipline and dedication to excellence that have long been the pillars of Bank of Marin's success. Our core values remain firmly in place as we grow and pursue new opportunities. I want to thank you for your time this morning. Now we will open it up to your questions.
Thank
Marin.
Marin. Marin. Marin. Our first question comes from Jeff Aroules Marin. With D.
A. Davidson, please proceed.
Thanks. Good morning. Looking at the margin, If we exclude the PPP impact and adjust for the redemption in the Q1, Looks like core margins under some pressure kind of in the mid-320s. Any thoughts on I guess if we look forward Marin. Excluding further PPP adjustment and I guess American River, Kind of the thoughts on the core margin, kind of led by loans, what are your thoughts on that front?
Well, I'll start and then I'll actually ask Tim and Tanya to jump in. Margins are under pressure as you know, because the Marin. Interest rates are so low and there's not a lot one can do when it comes to interest rate. The interest rates, they are what they are and we compete with our competition and That's why there has been such pressure on rates and you can see I'll ask Tim to kind of focus give you a little bit more Clarity in terms of the most recent opportunities that we've had.
Yes. Thanks, Jeff. Certainly, Marin. We're under competitive pressure like everyone else on the yields on the new loans we're funding. We also have to prevent runoff out the other side.
Marin. That's always going to put some pressure. Every loan that pays off is being replaced by a loan at a lower rate. And that's Marin. The economy right now, that's the rate environment.
We are certainly doing our best. We certainly take advantage of our relationship banking model. We work as hard as we can to get the best yield we can on each loan. But there's no question in aggregate, those trends are putting pressure on the loan yield.
Yes. I don't have anything to add to that. I think you effectively got to the core margin, so.
Okay. Got it. The buyback announcement, Marin. I think that signals some confidence through the even with the American River deal pending. Is that safe to say you'll continue to consider buybacks even up until the close of that transaction?
Yes, we have a lot
of confidence in number 1 in our the bank in total. This is Marin. We have well managed it. Expenses are under control and we have the teams coming back. They've all come back to work now, Interacting directly with clients, that to me is very encouraging and you should see volumes increase because of that.
So, When you put all those things together, we're pretty encouraged. And so far in the American River Acquisition, we've seen nothing but positive things. We're very, very encouraged by the bank, Marin. The loan portfolio, the people that were coming over from American River, this has been and the cultures Which match so well together. And a lot of these things can work or they can't work if the cultures are not a match.
But We've seen nothing but positive things out of the American River staff. So we're very encouraged about what we can do in Sacramento Marin. And as we move forward and bring some of our products, like we don't they don't offer HELOC products at all. We will bring that over to them. Because of our size, we'll be able to up tier a lot of relationships.
In my mind, this acquisition Marin. Perfect timing and it's also a perfect fit, the 2 organizations. And we've done nothing to dissuade us from exactly that Marin as we've gotten into the work.
Thank you. Just one quick last one, Russ. The fires In the state, look like mostly east of your footprint and even east of American Rivers. But just wanted to confirm if you're not At least as of now, are you seeing any impact on those?
I haven't seen any impact at this point. They are Pretty far east of where we are, but obviously, we keep our eye out. This is fire season in California, and it's been the last few years have been pretty rough. So we're keeping our fingers crossed so far, nothing in our footprint.
Okay. Thank
you. Our next question comes from Matthew Clark with Piper Sandler. Please proceed. Hey, good morning.
Marin. Just getting back to the core margin, Can you
give us a sense for where new money yields are coming on for both loans and securities in the latest quarter?
I don't have that new loan yield for the quarter number in front of me, Matthew, but we can get it to.
So I can tell you just the back trends a little bit on the new loans not including PPP We are roughly in the same area where the portfolio stands with the exception of HELOCs because I think we lowered our rates on those. But otherwise, that's pretty stable. The investment side, that's pretty tricky. I mean, you have to go out quite far to get yields Marin. Over 1.25 percent when you're looking at solid credit quality.
So we're just doing our best to purchase opportunistically there. And we did have a couple of opportunities over Moran. And we continue to keep our eyes open for those. But to the extent that we can Extend our duration a little bit, not too much and still achieve more than we can get at the Fed, which is Not much. We are doing that.
Okay. And then just shifting gears to the pipeline, the loan pipeline. Any commentary there as
it relates to growth year over year linked quarter? Yes. We're certainly seeing the pipeline. As Russ mentioned, our bankers are out and calling in Marin. And we are seeing an almost immediate impact of that on the pipeline.
Now the probabilities and the timing of those things moving from stage to Marin. Staging closing is always in question, which is why we're always reluctant to comment on that too heavily, but we are seeing very encouraging trends And that direct customer at client calling activity resulting in opportunities to
look at. Matthew, I'd add one thing. Marin. The way we operate our bank is really this relationship based model. And it's so important to have face to face interaction with our clients and with our with our prospects.
And Marin. The pandemic, we all made it through based on a lot of people working from home, a lot of remote working. But Now that we're back in the offices and actually able to go out and visit clients, I expect it to be Marin. A real impact on results going forward. It's encouraging to see what we're seeing from our lenders out in the commercial banking office.
Okay. And then as it relates to the reserve, what are your updated thoughts on where that Ratio could start to stabilize. I mean, are you in the camp that believes you'll kind of stabilize around pre pandemic levels? Or do you feel You could dip below that based on better macro factors under CECL?
So I think that things the forecast I think that the reduction in the forecast or the improvement in the forecast This quarter was not as dramatic as last quarter. We it is The model is very much based on the quantitative results and the forecast. So it's really difficult
To predict
what the levels will be going forward, But I think based on where the forecasts stand right now, we That's what the current reversals reflect. And like I said, I'm not I don't have a lot of confidence in projecting where those forecasts are going to go, but they probably won't go down as much as they did Marin. Won't improve as much as they did this quarter versus last quarter.
Okay. And then just last one for me on expenses. If you adjust for the merger charges, that's about a $15,200,000 run rate. It looked like you were a little Heavy in terms of charitable contributions this quarter, how do you think about that kind of stand alone run rate for the back half of the year excluding
Moran. Yes, the charitable contributions what we did was we spent them all in the Q1 for the year. And so that's going to be those dollars are going to be distributed out over the years. So that's why they're heavy in the first quarter Marin. 2 quarters, 1st 2 quarters, sorry.
Got it. And then just the overall run rates, Tani?
Yes. I think the overall run rate is pretty stable, but of course, we've got the acquisition in there and we're just starting to see the acquisition costs. So That's going to have a big impact on expenses over the next couple of quarters here.
Okay. Thank you.
Our next question comes from Jackie Bohlen with KBW. Please proceed.
Hi, good morning everyone. Marin. Where do you stand today versus full employment? I'm just curious if you have any open positions presently?
Marin. We do have open positions. I think we're about 9% below full employment at the bank right now. So, there are positions open. And certainly, the pandemic had something to do with that during that time, Marin.
Tough to hire during that time, but I'd say the majority of the positions are not in leadership roles. They're Primarily lower level of the bank.
Okay. So while it's 9% To full employment, it's not 9% to overall compensation?
No, that's correct. It's going to be lower cost. Marin. Honestly, we never run full employment. We always have a certain number of positions open.
Marin. You can't kind of interpret there to get to that number very easily.
Okay. And I know in the past, Russ, you've talked about Marin. The potential of work from home as opening up new recruiting doors for you. And now that we're starting to get back Marin. Just wondering what your updated thoughts are on that?
We're still looking at that. We tried to separate pandemic Marin. Working from home in the future, because we did the work from home and work remote During the pandemic out of a necessity as opposed to what jobs could be specifically run outside of Marin. But we have a strategy in place. We're looking at that and we anticipate we'll have a number of positions that we'll have Marin.
Either full or part time away from the bank or in remote locations because there are some jobs that don't necessarily need to be here. That being said, Again, our primary focus is really as the relationship bank is really in person, Not only in person because of clients, but in person because of the interaction with others. There's a lot of There's a lot that can be gained from just the discussions that happened with people who are working together, sitting next to each other and questions that come up and Being able to interact and that it's hard to measure the value, but it's very valuable in my mind.
Okay. Yes, I would agree with that on collaboration. And then do you have either an estimate or an update on when you might look To do the conversion, given that the transaction sounds like you're looking to close that next month?
Marin. Yes, we're looking to close next month, but the conversion doesn't happen until the spring. And the reason for that is really because I say spring actually late winter, because we have been given a date by our core processor FIS And that's the date. So, we probably and then the problem is that because this occurred and With close, it's going to occur in August. There's kind of a blackout period by FIS for about 3 months, November, December, January.
Marin. They wouldn't allow integrations to happen during that time. So they get everything got pushed back until we're back in March. So that's when it's going to happen, but Marin. We're working towards that date.
Okay. Okay, great. Thank you for taking my questions.
Sure. Thank you, Jackie.
Our next question comes from Tim Coffey with Janney. Marin.
Great. Thank you. Good morning, everybody.
Good morning.
Good morning,
Tim. Yes, origination activity
on the loan side was really Marin. And I'm wondering if
you can provide a little
bit more color on where you're seeing the best win rate?
Yes, thank you. It's actually fairly dispersed. I mean, as historically been the case, we are getting most of our new volume out of our Marin market. They're the Marin. Markets with the most relationships, the largest portfolios to build on.
The biggest increase was on the commercial side as opposed Moran. To HELOC are tenant common loans on and that's this is a year to date these are year to date numbers I've given you, but The biggest increase was on the commercial side, which includes our construction lending group, which has also been very positive. Certainly, our Payoffs on the retail consumer loan side have been down and that activity just as Russ was talking about being out meeting with our relationship banking clients That does tend to be more commercial and construction oriented and that is by loan type where we saw the biggest jump year to date.
Okay. And then in terms of from the perspective of legacy Bank of Marin, what are you seeing on deposit growth? Do you Still expect that to be strong going into the back half of this year?
I would say, yes. Marin. There's an awful lot of liquidity on the market and we have banks in general benefit from it. We certainly do. These are relationship deposits that we have.
But I think that will continue through the year. But beyond that, it's hard to judge As projects and reinvestment in businesses start, you'll start to see those deposits run off. And it's hard to judge exactly when that happens. But Through the end of this year, beginning next year is really I think I'd look more towards 2022 as a time when you'll smart see might see some of those deposits start to Not grow as quickly, put it that way.
Okay. That's very helpful. Thank you. Those are my questions. Appreciate your time.
Thank you, Tim.
Our next question comes from David Feaster with Raymond James. Please proceed.
Hey, good morning, everybody.
Good morning. David, I just wanted
to kind of follow-up on that question and Marin. And touched on liquidity, I mean, you guys have been done a great job deploying liquidity, moving some off balance sheet, investment securities. Just curious what your plans are for that $257,000,000 in cash? Is some of that just built up ahead of the deal and to help improve the AMR Deposit base maybe run off some of the non core stuff. I mean, you touched on some opportunistic securities Marin.
Just curious your thoughts on deploying that liquidity. Is there even any opportunity to move some more off balance sheet or is that even of interest? Just Curious on that front.
Well, one question, I'll answer briefly and I'll turn it over to Tiny, but Marin. Not a lot is non core. I mean, our deposits are almost entirely relationship based And we don't have CD specials and things like that. So, all of the money sitting in our bank is really customer Relationship based deposits. So and we're at 7 basis points.
I'm not sure how much you can unless we start charging people to keep their money, I'm not sure how much we can run off at this point, but maybe Tanya has some thoughts about the liquidity side.
So in terms of deploying off Moran. A lot of the deposit networks, because there has been so much liquidity in the system, have actually frozen their ability to take Marin. More off balance sheet deposits. So we were in really good shape because we got ours sold early and Marin. We haven't brought those back yet, and we continue to try to redeploy what we have on the balance sheet, which is the Marin.
$250,000,000 plus that you mentioned, David. And again, on that, we are really working to Deploy that in investments when we have the opportunities and trying to balance moving it out of cash With not stressing the portfolio yields too much, but also Between those two balances, the on balance sheet and the off balance sheet, cash we have available, making sure that we're ready when the loan volumes pick up
Marin. Got it. And then, I just wanted
to touch on the fee waivers. Just curious if you had an Marin. How much foregone fees you maybe had? And then just maybe how much incremental fees you might expect now that those are reinstated?
Marin. Boy, that is a really difficult number to put our fingers on because it's So much of it is transaction oriented and balance oriented put together because some of our accounts are analyzed and so they're offset to fees based on the balances that they hold. And not only that, but because behavior has Moran. Changed over the course of the pandemic, it's really difficult to pinpoint how much Marin. But that said, we are starting to see some lift, But we only saw that for half of May and June.
So we don't even have a full quarter of activity to base any analysis off of yet.
Okay. That's fair. And then just curious on the wine lending front and the expansion into Sonoma, I believe you guys hired Marin. Last year, have you continued to add to that team? And then just curious how growth has been in that business and what you're hearing from clients and Just trends in the wine industry.
Yes. Thank you. This is Tim. We So the individual that we put in charge of the commercial banking office in Santa Rosa was one of our wine lending experts. So that office in Sonoma County wasn't new, But he did make a hire of someone with wine industry background that in part was part of the team covering the Central Coast wine industry calling activity.
And so what we're trying to do is bring the expertise we had in Napa to both Sonoma County and the Central Coast. They've been very active certainly with Marin. With the world opening up with pandemic restrictions being relaxed, that activity is really picking up. So that is going to take some time as well to build that Marin. But they've been very active and we've been very excited about some of the opportunities that we've had the chance to look at as we've been able to get out with our customers and prospects.
Thanks everybody. Thank you, David.
We have a follow-up question from Jackie Bohlen with KBW. Please proceed.
Hi, thank you. Just one last one for you, Russ. We're kind of approaching the 2 year anniversary of when you originally announced that you were looking to retire and then the pandemic Marin. And you obviously put that on hold, guided the bank successfully through. So I just wanted to see if you had any updated thoughts to share on that front?
Has it been 2 years, Jackie?
It's been
almost 2 years.
It's been almost
2 years. Well, circumstances Marin. Dictated what happened. Obviously, we started search and then the pandemic hit and I committed to stay through the pandemic Marin. And we're coming out of the pandemic, but we have and along that time, we've been able to Increased the responsibility for Tim and now promoted to President.
So he's taken a lot more responsibility, which is great. And We don't have a definitive timeline at this point, but we're making progress. So that's a really good way of saying I don't I'm not having an answer for you. Marin. We're making progress.
We're taking breaks. It's just been nothing to report at this point.
Okay. Marin. That's all I was looking for. No update is still an update. So thank you very much for that.
Okay.
There are no further questions on the phone at this time.
We do have one question, which was which came from a shareholder. And the question was this, since completing the acquisition of AMRB in April, the Bank of Marin share price has fallen 20%. This represents $100,000,000 reduction in market value of BMRC from $500,000,000 to $400,000,000 Are you still confident the deal is good for shareholders? I am actually way more confident today than I was the day we announced the deal. This as we've gotten into this project, we found Incredible cooperation from the people and talent.
And to me, Marin. Bank is only as good as the talent that you have and the Bank of I mean the American River people are so cooperative and so eager to help Marin. And to make this work that it's made our decision to acquire them even I am more confident today than it was Marin. As we were bidding at this and I will say that the market has also dropped, so not all 20% is a result of this. One of the other things that we heard was, oh, you're going in Sacramento, you have reservations about that.
Well, if you go into Sacramento as a de novo, You don't know the market, then there's some issues. We're going in and we're getting a bank that's been there for many years with a lot of talent and a lot of knowledge and a lot of good customer great customer relationship. Marin. What we projected in our presentation when we first did the deal was a 14% accretion the 1st full year and I'm very confident that we will easily achieve that number. This acquisition is going to be extremely successful.
Marin. And so I am not only confident, but extremely confident of our success going forward on this. Marin. I don't think there are any other questions. I want to thank everyone for listening today and for asking your questions.
I look forward to speaking with all we all look forward to speaking with you again next quarter. If you have any follow ups, please feel free to call us. Thank you for your time this morning.