Also: Bank of Marin reports 6.2% rise in earnings for 2010Charter Oak Bank shareholders have approved the bank’s previously announced merger agreement with Bay Commercial Bank. The merger transaction remains subject to regulatory approvals.
Pending these approvals, the merger should take place early this year according to Brian Kelly, the current president and chief executive officer of Charter Oak. He will remain with the bank and be the director of the North Bay region.
“Were it not for Brian staying with the bank, we would not have gone through with the deal,” said George Guarini, president and CEO of Bay Commercial. “Brian was the key.”
Charter Oak Bank last quarter had a capital ratio of 5 percent, half of the 10 percent considered healthy by regulators.
Most of the nonperforming loans were real estate-oriented, Mr. Kelly said.
“We attempted several measures before considering being acquired,” he said. “We feel with this route, we will have better product lines for clients.”
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Long-time North Bay banking veteran Howard Daulton has joined Exchange Bank in a newly created position of senior vice president and manager of corporate business development.
Most recently, Mr. Daulton was the senior vice president and commercial loan officer area manager covering five counties with Wells Fargo Bank for roughly two years.
At Exchange Bank, Mr. Daulton will have a varied role, including strategic planning as well as business development.
“Howard is a proven positive leader in banking and business in the local Sonoma County market,” said Bill Schrader, president and chief executive officer of the bank.
Mr. Daulton assumed the position Jan. 18.
A resident and native of Santa Rosa, Mr. Daulton graduated from Montgomery High School. He resides in Santa Rosa with his wife, Kathy.
Prior to joining Wells Fargo, he was the president and chief executive officer of Bank of Petaluma, which was purchased by Wells in 2007.
Mr. Daulton studied economics at San Jose State University and his first position was with Union Bank as a business development officer.
Bank of Marin Bancorp announced 2010 earnings increased 6.2 percent from the year before.
Earnings for 2010 were $13.6 million, an increase of $787,000 from $12.8 million in 2009.
Fourth-quarter earnings totaled $3.9 million, an increase of $1.1 million or 39.5 percent from $2.8 million at the end of 2009.
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“We are pleased to end the year with record earnings,” said Russell Colombo, bank president and chief executive officer. “Earnings growth reflects a lower level of credit losses, continued focus on cost controls and loan growth in our two newest markets, San Francisco and Santa Rosa.”
Deposits grew $71.7 million, or 7.6 percent, over a year ago. Demand deposits grew $51.6 million or 22.4 percent over a year ago and comprised 27.8 percent of total deposits at Dec. 31, 2010.