Tamalpais Bancorp, formerly Epic Bancorp, incorporated on December 20, 1988, is the holding company for Tamalpais Bank (the Bank) and Tamalpais Wealth Advisors (TWA). As of December 31, 2008, the Company was consisted of three entities, Tamalpais Bancorp, the Bank, and TWA. The Bank provides a variety of financial services to small-to-medium sized businesses and individuals, and offers a range of commercial banking services. TWA offers investment advisory services and financial planning to the general community and to clients of the Bank. The Company also has two unconsolidated subsidiaries: San Rafael Capital Trust II and III (the Trusts) used as business trusts in connection with the issuance of trust preferred securities. The Bank operates seven full service branches in Marin County, located north of San Francisco, California. The Bank focused on relationship-based community banking, providing each customer with a number of services. The Bank attracts deposits, loans and lines of credit from small-to-medium sized businesses, not-for-profit organizations, individuals, merchants, and professionals who live and/or work in the communities comprising the Bank’s market areas. It also offers commercial cash management products. The automatic teller machines (ATM’s) facilities are available at United Market in San Anselmo and Woodland Market in Kentfield. The Company’s market area consists of Marin County and the Greater Bay Area, including San Francisco, Alameda, Contra Costa, San Mateo, Santa Clara, Sonoma and Napa counties. Lending Activities The Bank’s lending programs include commercial and retail lending programs, including commercial and industrial real estate loans, commercial loans to businesses, including small business administration (SBA) loans, mortgages for multi-family real estate, revolving lines of credit and term loans, consumer loans, including secured and unsecured lines of credit, land and construction lending for commercial real estate, single family residences and apartment buildings. As of December 31, 2008, the Bank’s loans receivable net totaled $584,450,000. As of December 31, 2008, approximately 90.7% of the Bank’s loans were secured by real estate. Real estate construction loans are primarily interim loans to finance the construction of commercial, multifamily and single family residential property. These loans are typically short-term. Other real estate loans consist primarily of loans made based on the property and/or the borrower’s individual and business cash flows. Maturities on real estate loans other than construction loans are generally restricted to15 years. Commercial and industrial loans and lines of credit are made for the purpose of providing working capital, covering fluctuations in cash flows, financing the purchase of equipment, or for other business purposes. Such loans and lines of credit include loans with maturities ranging from one-to-five years. Consumer loans and lines of credit are made for the purpose of financing various types of consumer goods and other personal purposes. As of December 31, 2008, the Bank’s loan portfolio was primarily consisted of floating and adjustable interest rate loans. Investment Activities The Company purchases mortgage-backed securities and other investments as a source of interest income, credit risk diversification, manage rate sensitivity, and maintain a reserve of readily saleable assets to meet liquidity and loan requirements. Sales of Federal Funds, short-term loans to other banks, are regularly utilized. As of December 31, 2008, the carrying values of securities pledged was $67,190,000 representing the entire investment securities portfolio. As of December 31, 2008, the investment portfolio consisted of agency mortgage-backed securities, United States agency securities, municipal securities and agency collateralized mortgage obligations. At December 31, 2008, $10,774,000 of the securities was classified as held-to-maturity and $56,416,000 of the securities were classified as available-for-sale. Available-for-sale securities are bonds, notes, debentures, and certain equity securities that are not classified as trading securities or as held-to-maturity securities. Held-to-maturity securities consist of bonds, notes and debentures. Sources of Funds The principal source of funds for the Bank are core deposits (non-interest and interest-bearing transaction accounts, money market accounts, savings accounts, and certificates of deposits) from the Bank’s market areas. At December 31, 2008, total deposits were $460,301,000. The Bank established a relationship with Total Bank Solutions. As of December 31, 2008, the deposits were $30 million. The Company has secured advances from the Federal Home Loan Bank at December 31, 2008, amounting to $183.1 million. Included in the FHLB borrowings of $183.1 million, as of December 31, 2008, the Company has borrowings outstanding of $130.1 million with FHLB for Advances for Community Enterprise (ACE) program. The Company also obtains a credit facility from Pacific Coast Bankers Bank. The Bank’s deposit products include checking products for both business and personal accounts, tiered money market accounts offering a variety of access methods, tax qualified deposits accounts, certificates of deposit accounts and certificate of deposit account registry services (CDARS).The Bank also offers DepositNOW Remote Deposit Capture, which is a check clearing tool that allows customers to deposit checks without going to the bank. A courier service is also available to the Bank’s professional and business clients. In addition, the Bank offers its depositors around-the-clock access to their accounts by telephone, and to both consumer and business accounts through its Internet banking products. The Bank’s ATM network is linked to both the STAR and PLUS networks and is also a member of the MoneyPass nationwide network whereby customers have access to more than 11,500 surcharge-free ATMs. November 10th, 2009 04:16pm Tamalpais Bank reports $5.1 million loss SAN RAFAEL — Tamalpais Bancorp, parent company of Tamalpais Bank, reported a net loss of nearly $5.1 million for the third quarter as it set aside $9.4 million in loan loss reserves to combat problem loans. In the same quarter last year, the bank showed a net income of $1.5 million. The quarterly diluted loss per share was $1.33 compared with diluted earnings per share of $0.39 in the same period last year. The net loss for the nine months ending Sept. 30 was $9.4 million compared with net income of $3.9 million for the same period in 2008. In the quarter, total assets declined $7.5 million, or 1 percent, as gross loans declined $19.8 million, or 3.3 percent, as it sold loans equal to that amount. This was partially offset by a $17.1 million, or 21.9 percent, increase in liquid assets. Noninterest-bearing deposits increased 6.3 percent to $41.7 million. “Our targeted core deposit gathering efforts continue to produce positive results, led by Jamie Williams and our business banking team,” said Mark Garwood, president and chief executive officer of the bancorp.” Year-to-date, we increased the bank’s noninterest-bearing deposits by 25.3 percent, which, when added to other core deposits, improves our liquidity and funding sources.” The loan loss provision was $9.4 million compared with $653,000 in the same quarter last year. “The company recognizes the importance of reducing exposure to substandard loans and non-performing assets in a timely and efficient manner,” continued Mr. Garwood. “We continue to allocate resources towards troubled asset resolution and have reassigned internal staff as well as engaged external assistance.” In September, the bank consented to a cease and desist order with the Federal Deposit Insurance Corp. and the California Department of Financial Institutions requiring it to reduce its commercial real estate loan exposure and improve liquidity. Tamalpais Bank stock was trading at $0.91 at the close of market today. Its 52-week high was $11.25.