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North Bay banks report strong quarter

CIRCLE BANK, SUMMIT, TAMALPAIS SAY THEY REMAIN SOLID DESPITE BROADER TURMOIL

NORTH BAY – Three North Bay banks reported improved or record second-quarter earnings that reflect continuing performance of most community financial institutions in the midst of turmoil among many large lenders.

Novato-based Circle Bank, with four branches in Sonoma and Marin counties, reported an 83 percent increase in net income from last year while Summit State Bank and Tamalpais Bancorp were up 46 percent and 19 percent, respectively.

At Circle Bank, total assets were $248 million, up 17 percent from last year at the end of the second quarter.

“Circle Bank is thriving despite the turmoil in the financial services market,” said Kim Kaselionis, president and CEO.

“Being community focused is good for everybody. It may be the rest of the financial market is crumbling, but we want to help you,” she said.

“People can no longer tolerate getting no help from their banks. They need to think outside the box. It is why community banks exist.”

In recognition of its advocacy for work force housing, Circle Bank was awarded the 2008 Key in the Door award by Northbay Family Homes.

At Santa Rosa-based Summit State Bank, earnings increased 46 percent to $584,000 over the same quarter last year.

Thomas Duryea, president and CEO of Summit with $342 million in assets, attributed the bank’s improved performance to careful management of costs and loan quality.

“Our higher earnings were the result of improved net interest margin as we continue to focus on productivity to improve our efficiency ratio,” he said. He said the bank has the “ability to manage effectively in this present weakened economy.”

Meanwhile, San Rafael-based Tamalpais Bancorp reported record earnings.

The parent company of Tamalpais Bank and Tamalpais Wealth Advisors earned $1.27 million, a nearly 19 percent increase over the same period of 2007. The company’s assets stood at $649 million.

Mark Garwood, Tamalpais president and CEO, said the company’s “level of nonperforming assets declined in the second quarter from already low levels on both a sequential and year-over-year basis.”

“We enter the third quarter of 2008 with a well-capitalized balance sheet, an increasing revenue stream … and multiple and diverse sources of liquidity.”