North Bay Business Journal

While many businesses, homebuyers and individuals have benefited from the Federal Reserve’s continuing effort to keep interest rates low, that same economic policy — along with heightened pressure from regulators and tepid demand for new loans — has added up to a time of historic challenge for community lenders in the North Bay and beyond.

Executives at North Bay financial institutions said they saw no clear end for the current conditions.

SONOMA — The Federal Deposit Insurance Corp. has issued orders barring two officers of the failed Sonoma Valley Bank from working in the industry, levying civil money penalties against both men for what the regulator called “a pattern of misconduct” involving “violations, reckless unsafe or unsound banking practices, and breaches of fiduciary duty,” according to an announcement by the FDIC.

NOVATO — A senior officer at Circle Bank is one of 10 people alleged to have hidden the “deteriorating condition” of the former United Commercial Bank in San Francisco before it went into receivership in late 2009, according to an enforcement action filed Tuesday from the Federal Deposit Insurance Corp.

SANTA ROSA — The high cost of complying with burgeoning regulation will be the cause of even more bank consolidation than has occurred as a result of the recession, experts say.

NOVATO — Bank of Marin Bancorp reported first-quarter earnings increased 53 percent from a year before and 15 percent from the end of 2010. The acquisition of Charter Oak Bank of Napa in February played a significant part in the boost, according to the bank.

NAPA – Bank of Marin is consolidating its Napa Valley offices, closing the St. Helena branch April 29.

NOVATO, NAPA — Bank of Marin Bancorp (NASDAQ: BMRC) announced today that through its subsidiary, Bank of Marin, it has acquired certain assets and assumed certain liabilities of Napa-based Charter Oak Bank.

SPOKANE, Wash. — Sterling Financial Corporation, parent company of Sonoma Bank, today announced that the Federal Deposit Insurance Corporation and Washington Department of Financial Institutions lifted a cease and desist order put in place in October 2009 with Sterling Savings Bank.

‘David suffering for Goliath’s sins;’ also, 2 in top Bauer rank There are two fewer locally based banks in the North Bay than there were at this time last year. Tamalpais Bank was shut down by the Federal Deposit Insurance Corp. and purchased by Union Bank. Napa Community Bank, previously under the parent company of Capitol Bancorp [...]

SAN RAFAEL — The California Department of Financial Institutions closed Tamalpais Bank after business hours today and appointed the Federal Deposit Insurance Corp. as receiver. It’s the first closure of a locally based bank since the current economic recession began. The seven branches of Tamalpais Bank will reopen on Monday as branches of Union Bank.

SAN RAFAEL — Tamalpais Bancorp, parent company for Tamalpais Bank, reported more than $50 million in its loan loss provision for 2009 compared with just more than $3 million for the year before, according to its 10-K annual report.

SAN RAFAEL — Tamalpais Bank completed the sale of $28.3 million in “substandard-performing and nonperforming loans” to an undisclosed third-party investor for $15.4 million, or a discount of 45.6 percent, according to a regulator filing today by the bank holding company, Tamalpais Bancorp.

SPOKANE, WASH. — Sterling Financial Corp., owner of Sonoma Bank in Santa Rosa, today said it is in active negotiations with several private equity investors, its major creditors and its regulators about various strategic alternatives designed to put Sterling on a sound financial footing and to allow it to recapitalize and grow its business.

SAN RAFAEL — The Federal Deposit Insurance Corp. issued Tamalpais Bank a directive on Feb. 19 requiring that within 30 days the bank either sell enough stock to be “adequately capitalized,” or accept an offer to be acquired by or combined with another institution.

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.

SAN RAFAEL — Tamalpais Bancorp said today that its wealth management unit will be merged into San Francisco-based CSI Capital Management Inc.

“The transaction is another step in our strategy to focus on core banking activities,” said Mark Garwood, chief executive officer and president of Tamalpais Bancorp, the holding company for Tamalpais Bank and Tamalpais Wealth Advisors.

SAN RAFAEL — Tamalpais Bancorp, parent company of Tamalpais Bank, is working out an agreement with the Federal Reserve Bank of San Francisco to help ensure compliance with a recent cease-and-desist order from the Federal Deposit Insurance Corp.

SAN RAFAEL — Tamalpais Bank has sold $37.4 million in nonperforming loans to an anonymous third party investor.

Also: Ex-Prudential executive joining Redwood Trust Inc.

Presidio Bank has expanded its North Bay offerings. Once only a loan production office, now the branch is fully equipped to take deposits and serve its corporate clients.