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AltaPacific, Sonoma Valley, Charter Oak, Summit, Bank of Marin, Exchange

NORTH BAY – Many North Bay banks are maintaining strength in their income statements even in the down economy that executives said is extremely challenging.

That strength comes despite an additional assessment on banks in the third quarter for Federal Deposit Insurance Corp. insurance.

The results are:

AltaPacific Bank

AltaPacific Bank, formerly Atlantic Pacific, reported an increase in net income in its fifth consecutive profitable quarter. The bank reported net income for the quarter totaling $114,000.

Assets totaled $77.1 million at the end of the third quarter, an increase of 55 percent over the same time last year.

Net loans totaled $54.7 million, a 69 percent increase from the same time next year.

Deposits totaled $51.5 million at Sept. 30, representing a 111 percent increase over Sept. 30, 2008.

At Sept. 30, the bank’s allowance for loan and lease losses totaled $1.17 million and represented 2.09 percent of gross loans.

The bank’s total risk-based capital ratio totaled 38.8 percent at Sept. 30, exceeding the 10 percent minimum ratio for a well-capitalized institution.

Charles Hall, the bank's president and chief executive officer said, “We are very pleased that our bank has continued to succeed during these difficult economic times. Our disciplined approach has truly benefited our customers and shareholders.”

Sonoma Valley Bancorp

Sonoma Valley Bancorp, the holding company for Sonoma Valley Bank, showed a net loss of $358,245 for the third quarter.

Sean Cutting, Sonoma Valley Bank president and chief executive officer, reported that prior to the loan loss provision and payment of taxes, the company showed net income of $1.757 million in the third quarter compared with $1.675 million during the same period last year.

“We continued to add to the loan loss reserve account during the quarter, with an allocation of $2.55 million versus $300,000 during the same period last year," he said.

"The increased allocation was responsible and necessary in light of the current challenges in the banking and real estate environments. While the increase in the reserve allocation negatively impacts the profit and loss statement, the bank has strong liquidity and is well-capitalized by regulatory standards.”

The bank posted record total assets of $354 million at Sept. 30. That is an increase of 11.6 percent from the same quarter last year.

Total risk-based capital ratio is 12.8 percent, up from 11.5 percent one year ago.

Mr. Cutting further noted, “The reduction in the level of non-performing assets during the quarter was due to the charge off of several non-performing loans. The bank, however, continues its aggressive collection efforts on these loans.”

Charter Oak BankCharter Oak reported a third quarter net income before tax of $185,000, compared with net income before tax of $186,000 in the third quarter of 2008.

The nine-month net income before tax was $52,000, including a $1.13 million increase in the loan loss provision. In comparison, the 2008 year-to-date net income before tax was $542,000, including a $442,000 loan loss provision. The difference in the loan loss provisions from 2008 to 2009 was $689,000.

"By employing our safe and sound business strategy, we have managed to remain profitable, even in the current economy," President and Chief Executive Officer Brian Kelly said. "When bank closures are in the news, Charter Oak Bank remains a safe and sound community bank that you can trust.”

Loans were reported at $132.7 million at the end of the third quarter, an increase of $16 million, or 13.7 percent, from the same period last year. Deposits were $123.2 million, an increase of $19.4 million, or 18.7 percent, from last year. Total assets were $154.2 million, an increase of $22.9 million in the past twelve months. Shareholder book value at quarter-end was $9.53 per share.

Summit State BankSummit State reported net income for the third quarter was $166,000 and $1.7 million for the nine months ended Sept. 30.

Total assets were $347 million, down from $349 million the year before.

Deposits were $262 million, up from $257 million last year at the same time.

On Oct. 26, the board of directors declared a quarterly cash dividend of $0.09 per share on the company's common stock. The dividend is payable Nov. 20 to shareholders of record as of the close of business on Nov. 11. Additionally, a dividend on the preferred stock of $106,250 was declared payable on Nov. 15.

Bank of Marin BancorpBank of Marin Bancorp, parent company of Bank of Marin, announced record third-quarter earnings of $3.6 million, up $906,000, or 33.6 percent, from the same period last year and up $468,000, or 14.9 percent, from the second quarter of 2009.

Diluted earnings per share were $0.68 in the third quarter, up $0.16, or 30.8 percent, from the same quarter last year and up $0.08, or 13.3 percent, from the second quarter of this year.

“We are pleased to achieve the highest quarterly earnings in our history this quarter,” said Russell Colombo, president and chief executive officer of the bank. “Our business success is based on our consistent execution on the fundamentals of responsible, solid banking, which has been particularly important in this challenging economic environment.”

The bancorp’s total risk-based capital ratio grew to 12.1 percent at Sept. 30, up 50 basis points from a year ago.

Total loans reached $919.8 million at the end of the third quarter, representing growth of $80.8 million, or a 9.6 percent increase, from the same time last year. Non-performing loans totaled $6.0 million, or 0.7 percent, of the bancorp’s loan portfolio at Sept. 30, compared with $5.9 million, or 0.6 percent, at June 30 and $823,000 a year ago.

Total deposits grew $100.1 million, or 11.8 percent, over a year ago to $943.3 million at Sept. 30.

Earnings for the nine-month period ended Sept. 30 totaled $10.0 million, an increase of $606,000, or 6.5 percent, over the same period a year ago.

The bank’s board of directors declared an increased quarterly cash dividend of $0.15 per share, up from $0.14 in the second quarter.

“Bank of Marin Bancorp is pleased to reward our shareholders with an increased cash dividend and continue our track record of offering a dividend for 18 consecutive quarters,” said Mr. Colombo. “We continue to focus on the fundamentals of conservative, prudent banking and are proud to deliver on the promises we make to our shareholders, our customers and the communities we serve.”

Exchange BankExchange Bank announced a profit of $816,000 for the third quarter, the second consecutive profitable period since its loss of $11.5 million in the third quarter last year.

When combined with earnings of $2.4 million in the second quarter, the bank’s year-to-date loss totals $7.1 million. That includes a charge of $20 million taken as an additional provision for loan losses in the first quarter of this year.

”We are pleased to report a modest profit this quarter as the challenging work of recovery continues,” said Chairman and Chief Executive Officer C. William Reinking. “Encouraging signs in the broad economy, the dedication, resiliency and hard work of the Exchange Bank team, and the unwavering support of our community are combining to form the foundation of an early recovery. Much is left to do, and the economic recovery remains fragile, but we believe the worst is, indeed, behind us.”

Total deposits were reported at $1.3 billion, down $39 million from the third quarter of last year and up $34 million from year end.

Total loans were $1.1 billion.

“Much has been said about the dramatic and severe challenges facing our industry and our community this past year,” said President William Schrader. “We, like many, have been confronted with some of the most difficult conditions seen in our lifetimes. While it would be premature to declare victory, we are proud of our progress, and it serves to encourage us as we move forward along a difficult road. As we look toward the final quarter of a trying year, we are also genuinely grateful for the support and encouragement of our community, the dedication and commitment of our employees and the confidence and trust of our customers. The hard work of recovery continues, and we will be unwavering in our resolve to restore increased and sustained profitability.”

Exchange Bank is the North Bay’s third-largest independent financial institution.