Tamalpais Bank reports $5.1 million loss
By Jenna V. Loceff, Business Journal Staff Reporter
SAN RAFAEL — Tamalpais Bancorp, parent company of Tamalpais Bank, reported a net loss of nearly $5.1 million for the third quarter as it set aside $9.4 million in loan loss reserves to combat problem loans.
In the same quarter last year, the bank showed a net income of $1.5 million.
The quarterly diluted loss per share was $1.33 compared with diluted earnings per share of $0.39 in the same period last year.
The net loss for the nine months ending Sept. 30 was $9.4 million compared with net income of $3.9 million for the same period in 2008.
In the quarter, total assets declined $7.5 million, or 1 percent, as gross loans declined $19.8 million, or 3.3 percent, as it sold loans equal to that amount. This was partially offset by a $17.1 million, or 21.9 percent, increase in liquid assets.
Noninterest-bearing deposits increased 6.3 percent to $41.7 million.
“Our targeted core deposit gathering efforts continue to produce positive results, led by Jamie Williams and our business banking team,” said Mark Garwood, president and chief executive officer of the bancorp.” Year-to-date, we increased the bank’s noninterest-bearing deposits by 25.3 percent, which, when added to other core deposits, improves our liquidity and funding sources.”
The loan loss provision was $9.4 million compared with $653,000 in the same quarter last year.
“The company recognizes the importance of reducing exposure to substandard loans and non-performing assets in a timely and efficient manner,” continued Mr. Garwood. “We continue to allocate resources towards troubled asset resolution and have reassigned internal staff as well as engaged external assistance.”
In September, the bank consented to a cease and desist order with the Federal Deposit Insurance Corp. and the California Department of Financial Institutions requiring it to reduce its commercial real estate loan exposure and improve liquidity.
Tamalpais Bank stock was trading at $0.91 at the close of market today. Its 52-week high was $11.25.
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How do you lose $5 million dollars? Did the guy have a big hole in his pocket? I should be so lucky to find it. Maybe I’d get a 10% reward. Thats far better than any bank pays now.
by Ed Circusitch