SAN RAFAEL -- Tamalpais Bancorp, parent company for Tamalpais Bank, today reported a net loss for the fourth quarter of 2009 of $28.2 million. The net loss for the year was $37.6 million, compared with net income of $4.8 million reported in 2008. Total assets were reported at $629.7 million, down form $703.7 million at the end of 2008.
Deposits totaled $487.2 million, an increase of $26.9 million from the year before. The bank’s loans decreased in 2009 by $88.8 million from the prior year to $495.6 million. Loan loss provision was $50.8 million, a 1,493.4 percent increase from $3.2 million the year before.
“In the fourth quarter, we increased our allowance for loan losses to resolve non-performing loans and to acknowledge the decline in commercial real estate values,” said Mark Garwood, president, chief executive officer and chairman. “The results of this action and plans for loan sales in the first quarter 2010 show our continuing and determined work to improve our credit quality.”
Tamalpais Bancorp is currently working out an agreement with the Federal Reserve Bank of San Francisco to help ensure compliance with a recent cease-and-desist order. Tamalpais Bank consented to the order in September with the Federal Deposit Insurance Corp. and the California Department of Financial Institutions.
The order required the bank to reduce its commercial real estate loan exposure and improve liquidity. The order, which stemmed from the bank’s regular FDIC examination in May of last year, also required the bank to develop a plan to reduce the number of commercial real estate loans, develop and implement a written liquidity funds management policy and for the bank to not pay cash dividends without the prior written consent of the FDIC and the DFI.
Tamalpais Bancorp’s wealth management unit is merging into San Francisco-based CSI Capital Management Inc. Under the terms of the agreement, Tamalpais Bancorp will share revenues from clients referred to CSI for a period of five years.