Bank of Marin Bancorp (NASDAQ:BMRC) Q3 2019 Earnings Conference Call - Final Transcript

Oct 21, 2019 • 11:30 am ET

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Bank of Marin Bancorp (NASDAQ:BMRC) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Analyst
Operator

[Operator Instructions] Our first question comes from line of Jeff Rulis with DA Davidson. Please proceed.

Analyst
Jeffrey Rulis

Thanks, good morning.

Executive
Russell A. Colombo

Morning Jeff.

Analyst
Jeffrey Rulis

Question on the -- just the expense line. It seems like you've got some moving pieces in there. I guess the first question would be, can we anticipate any further synergies or -- from the systems transition? I would assume also the FDIC reversal normalizes in the next quarter, but any thoughts on expense levels and ability to achieve any further synergies there?

Executive
Tani Girton

So I think we pretty much now gotten to steady state in terms of our conversion on the technology front and our core processing and digital platform. And so the third quarter expenses are indicative of the future on that line, of course, there are a lot of other expenses included in that data processing line besides the core processor and digital platform, but in general, those synergies, have all been recognized. With regards to the FDIC assessment, as long as the fund remains above the the threshold, we will not have to pay those assessments, but we have to wait for them to measure each quarter.

Analyst
Jeffrey Rulis

All right. So a manageable level and modest growth from here is it okay to estimate?

Executive
Tani Girton

I think I heard what -- I think you said that growth just sort of normal growth from this point, is that what you said?

Analyst
Jeffrey Rulis

Right. Yes.

Executive
Tani Girton

Yes, I think that makes sense. I mean we don't typically have a spike in the fourth quarter in expenses for any particular reason.

Executive
Russell A. Colombo

There's no projects or otherwise that would indicate any increased expense levels. No new teams that we're hiring right now that will bump that, so in the fourth quarter, we expect it to be relatively normal in that respect.

Analyst
Jeffrey Rulis

Okay, thanks. And then on the margin, the interest recovery. I was trying to get maybe to a core number if you had, what 404 [Phonetic] reported, but what is the recovery add and then I see the accretion tables have gone, maybe those have just been minimized there, which is a basis point or 2 maybe immaterial, but was there any significant change sequentially on due to accretion.

Executive
Tani Girton

No, accretion actually, we took the accretion table out of the release, because both historically and currently, there are not significant contributions from that. So the comparisons are not meaningful. And you saw, I'm guessing that the amount of the interest recovery was $388,000 in the press release.

Analyst
Jeffrey Rulis

Right. In basis points, I guess we can calculate that, but I just wanted to get confirm the number

Executive
Tani Girton

Let me get back to you offline on that one. Jeff, I have that, but...

Analyst
Jeffrey Rulis

Okay. I'll step back. Thank you.

Executive
Russell A. Colombo

Thanks, Jeff.

Analyst
Operator

The next question comes from line of Jackie Bohlen with KBW. Please proceed.

Analyst
Jacquelynne Bohlen

Hi, good morning everyone.

Executive
Tani Girton

Good morning.

Executive
Russell A. Colombo

Good morning, Jackie.

Analyst
Jacquelynne Bohlen

Just looking to the deposit fluctuates -- debt fluctuations and I know that it can be volatile given the customers that you have