SAN RAFAEL -- Tamalpais Bancorp, parent company of Tamalpais Bank, received a loan of $500,000 from Larry Rosenberger, a member of the bancorp board of directors.
The loan is intended to be used for corporate expenses, said the bank’s Senior Vice President and Chief Marketing Officer Mark Chapman.
Tamalpais Bank was issued a cease and desist order by the Federal Deposit Insurance Corp. in September requiring it to raise capital and reduce its commercial real estate loan exposure.
Under the terms of the loan agreement, Mr. Rosenberger will make an unsecured loan of $500,000 to Tamalpais Bancorp and will receive a warrant for 12,500 shares of common stock with an exercise price of $6. The warrant expires in five years. The current stock price is $1.86. The 52-week high is $12.50.
The interest is 0.75 percent per year on a three-year note.
Mr. Rosenberger, former president and chief executive officer of Fair Isaac Corp., was elected to the board of directors a year ago.
“I strongly believe in the capability and experience of the management team to lead the company during these challenging times,” said Mr. Rosenberger.
Mark Garwood, the chairman and CEO of the bank, said, “The support of the Board and Larry’s investment are particularly meaningful at this time. We appreciate the support Larry has demonstrated as we work to strengthen our franchise and to continue to serve and be a resource for our community.”