NOVATO -- Earnings for Bank of Marin Bancorp rose in the fourth quarter and for all of 2009 despite the sour economy.

Net income for the quarter was reported at $2.8 million, up 0.3 percent from the same time last year. Earnings for the entire year were $12.8 million, up 5.1 percent from 2008.

“I think that what we can take from 2009 is that the fourth quarter was a pretty good end to a pretty good year for us,” said Russell Colombo, Bank of Marin’s president and chief executive officer.

Deposits for the year totaled $944.1 million, up 10.8 percent from $852.3 million from the year before. Loans were reported at $917.7 million for the year, up 3.1 percent from $890.5 a year earlier. Non-performing loans were $11.6 million, 1.26 percent of the total loan portfolio.

“Having $11 million in non-performing loans is reasonable compared with our peers,” said Mr. Colombo. “And there is just $835,000 in the 30- to 90-day past due, so that is very little in the feeder to non-performing loans.”

Provision for loan losses was $5.5 million in 2009, compared with $5.0 million set aside in 2008. Fifty-four percent of the loan portfolio is in commercial real estate, 17 percent of which is owner-occupied. About 10 percent of loans are in construction, a drop from 13 percent.

“About 37 percent of the portfolio is in investor commercial real estate, and that is an area we are monitoring closely,” Mr. Colombo said. “Any loans in construction are an area of concern, and we are paying very close attention to that.”

Looking at the opportunities moving forward, he said the bank saw growth in 2009 in commercial and industrial, and this is an area the bank will focus on in 2010 as well. The bank opened a new branch in Greenbrae last September.

“It is going well beyond our expectations,” said Chief Financial Officer Christina Cook.

The total risk-based capital ratio is 12.3 percent. Industry standards for a well-capitalized institution is 10.0 percent. Fourth quarter dividends were $0.15 per share, up from $0.14 in the previous quarter. Total assets are $1.21 billion, up 6.9 percent from $1.05 billion a year ago.

Bank of Marin stock is trading at $31.62. Its 52-week range is $17.01 to $35.75.