Bank of Marin gets approval to return federal TARP funds

NOVATO, March 26, 2009 – Bank of Marin Bancorp (NASDAQ: BMRC), parent company of Bank of Marin, has been approved by regulators to buy back the preferred stock sold to the Treasury under the Troubled Asset Relief Program.

The bank expects to complete the repurchase transaction on March 31, 2009. The repayment will include accrued dividends.

”By participating in this program, we did our part to help stimulate the local economy during a volatile time for the financial markets. Given the operating restrictions we experienced as a participant, we believe this decision is in the best interest of our customers, shareholders and employees,” said Russell Colombo, president and chief executive officer of the bank. “We feel we are well-positioned to continue lending in our community without additional capital support. After the completion of this transaction, Bancorp’s risk-based capital ratio will exceed the standard for a 'well-capitalized' financial institution at approximately 11 percent.”

The bank received $28 million under the program.

TARP funds through the Capital Purchase Program were obtained by the bank in November of last year to boost the lending capabilities of the bank. Banks applied for the funds through the Federal Deposit Insurance Corp. and if the bank was determined to be well-capitalized, the Treasury purchased shares as a means to boost the economy.

At the time of the program launch, the terms were not set in stone, and some banks have deemed the new terms to be less than satisfactory. These include a cap in executive compensation and the ability for the Treasury to put people on the bank’s board of directors if terms are not met.