Bank of Marin first-quarter earnings rise over end of 2008, announces dividend

NOVATO, April 20, 2009 – Bank of Marin announced first quarter earnings of $3.2 million, up from $2.8 million from the fourth quarter of last year and down slightly from the $3.3 million earned in the first quarter of 2008.

The bank also announced a dividend of $0.14 per share. The cash dividend is payable on May 15 to shareholders of record at the close of business on May 1.

“The bank continues to produce strong results despite the challenging economic climate,” said President and Chief Executive Officer Russell Colombo. “Excluding non-recurring items, earnings are up and both loans and deposits experienced healthy growth. The success of community banks like Bank of Marin contributes to the recovery of our local economy and is vital to the overall health of our financial system.”

The earnings came at the same time the bank repurchased 28,000 shares of preferred stock from the Treasury. This was stock issued in December of last year through the Treasury’s Capital Purchase Program created to infuse banks with capital in order for them to be able to continue lending.

Bank of Marin elected to participate in the voluntary program but later decided it was in the best interest of the bank, the customers and shareholders to opt out, said Mr. Colombo.

“We are happy that we remain independent,” he said.

“The good news for us is this county is, certainly in California, if not the whole country, one of the healthiest. We are cautious and are looking closely at the things related to retail, but we feel still fairly encouraged by what is going on in the local economy.”

Loans totaled $921.6 million at March 31, 2009, 19.8 percent more than the first quarter of 2008. In the first quarter of 2009 and 2008, the bank’s loan loss provision totaled $1.2 million and $600,000 million, respectively. The allowance for loan losses as a percentage of loans totaled 1.12 percent at March 31 compared with 1.07 percent a year ago.

Non-accrual loans totaled $7.4 million, or 0.8 percent, of the bank’s loan portfolio at March 31, compared with $6.7 million, or 0.8 percent, at Dec. 31, 2008. Loans past due 30 to 89 days totaled $11.7 million at March 31, 2009, 84 percent of which are less than 60 days past due. “We do not deem most of these loans to be potential problem credits,” said Mr. Colombo. “We expect renewals or extensions in the normal course of business to return over 90 percent of the 30-to-89-day past-due loans to current status.”

Deposits totaled $859.4 million at March 31, 2009, an increase of 13.1 percent from the same time last year.

“We are pleased with the growth in deposits because it reflects the confidence our customers place in us,” said Mr. Colombo, “and we will continue to operate in a manner that positions Bank of Marin as a strong and stable institution in any economic climate.”

Total assets are more than $1 billion.