Banking & Finance: Local banks report mixed first-quarter earnings

Bank of Marin announced first-quarter earnings of $3.2 million, up from $2.8 million in the fourth quarter of last year and down slightly from $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 nonrecurring 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 last December through the Treasury’s Capital Purchase Program created to infuse banks with capital to encourage 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.

Loans totaled $921.6 million on March 31, 19.8 percent more than the first quarter of 2008. In the first quarters 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 on March 31 compared with 1.07 percent a year ago.

Nonaccrual loans totaled $7.4 million, or 0.8 percent, of the bank’s loan portfolio on March 31, compared with $6.7 million, or 0.8 percent, on Dec. 31, 2008. Loans 30 to 89 days past due on March 31 totaled $11.7 million, 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 on March 31, an increase of 13.1 percent from the same time last year. Total assets are more than $1 billion.

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Circle Bank hired Michael Rice, a 26-year veteran in the financial services industry, as senior vice president of business lending and equipment leasing of the bank.

Mr. Rice was most recently senior vice president of business lending, chief lending officer and SBA manager for Tamalpais Bank in San Rafael. “Bringing Mike on board is a major win for our customers,” said Kim Kaselionis, president and chief executive officer of Circle Bank. “He knows the North Bay extremely well. His knowledge of the intricacies of the SBA process for 504 and 7a loans will be very helpful to small- and medium-sized businesses who are seeking financing alternatives for their operations.

“It is also extremely important for job creation in Marin and Sonoma counties that a bank be actively funding SBA loans in the current economy,” she said.

Mr. Rice holds a degree from U.C. Santa Barbara and has held senior management positions with several banks in the region, including Sonoma National Bank.

“While we understand that these are difficult economic times for many, our goal is to work with customers to help find lending and leasing solutions for their individual situations,” said Mr. Rice.

Mr. Rice lives in San Anselmo with his wife, Jennifer, and their two children. He has served on the boards of the San Rafael Chamber of Commerce, the San Rafael Rotary Club and the Area Government Guaranteed Lenders Association.

Circle Bank is headquartered in Novato, with branches in San Rafael, Novato, Petaluma and Santa Rosa. At the end of the fourth quarter 2008, total assets were $252.6 million, up from $227.3 million the year before.

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American River Bankshares, parent company of North Coast Bank in Santa Rosa, announced first-quarter earnings.

Net income was $1.3 million, down from $1.8 million in the first quarter of 2008. Net loans increased $11.9 million to $410.3 million from the same time last year. Total deposits decreased $25 million to $436.9 million from the same period 2008.

Total assets on March 31 were $556 million, down from $563 million last year.

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Charter Oak Bank, headquartered in Napa, announced a first-quarter increase in profit of $39,000 from the same period of 2008, totaling $200,000. Deposits were at $114.5 million, an increase of $24 million from the same time last year. Total loans were $129.5 million, up from $98.7 million at the same time last year. Assets were $147 million on March 31, up $32 million from the previous year.

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Sonoma Valley Bank announced first-quarter total assets of $332 million, up 11.3 percent from the $298 million posted at the same time last year. First-quarter earnings were down 45.7 percent from the same quarter last year at $557,886. In February, Sonoma Valley elected to participate in the Treasury’s Capital Purchase Program and sold $8.6 million in shares.

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Bank of Napa showed deposits of $51 million for the first quarter, an increase of $19.7 million from the same time last year. Loan totals for the first quarter were $51.8 million, up $32.5 million from the same time last year. Total assets of the bank were $68.2 million, up 37.8 percent from the same time last year. The bank, opened in August 2006, reported a first-quarter net loss of $197,000, up 53.5 percent from last year.

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Three North Bay-based banks earned five stars from Bauer Financial, a bank-ratings company that has been analyzing financial institutions since the early 1980s.

Bank of Marin, Summit State Bank and Luther Burbank Savings all took five-star ratings, the highest given to any bank.

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The Findley Reports presented 19 banks with a designation of “super premier” of 85 banks ranked. Four North Bay banks were recognized: American River Bank, parent of North Coast Bank; Bank of Marin; Silicon Valley Bank; and Sonoma Valley Bank.

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Submit items for this column to Jenna V. Loceff at jloceff@busjrnl.com, 707-521-4259 or fax 707-521-5292.