Adds Two Branches through Acquisition of Charter Oak Bank
NOVATO, Calif.--(BUSINESS WIRE)--
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. This transaction has
been completed under a modified whole-bank purchase and assumption
agreement with the Federal Deposit Insurance Corporation (the “FDIC”)
without loss share. The acquisition follows a decision by the California
Department of Financial Institutions to close Charter Oak Bank and
appoint the FDIC as receiver.
"We are deeply committed to the communities in which we operate. We
share many of the same values as Charter Oak, focusing on personalized
customer service and community involvement," said Bank of Marin
President and Chief Executive Officer, Russell Colombo. “In the
twenty-one years we’ve been in business, we’ve established one of the
healthiest banks in California. We are excited for the opportunity to
leverage our financial strength to expand into Napa.”
Bank of Marin Bancorp recently reported record annual earnings of $13.6
million in 2010 and a total risk-based capital ratio of 13.3% at
December 31, 2010, significantly exceeding the designated capital
guideline of 10% for well-capitalized banks. No capital has been raised
to complete this transaction, as Bank of Marin Bancorp has grown capital
through the retention of earnings in order to take advantage of such
acquisition opportunities.
At December 31, 2010, Charter Oak Bank reported gross loans totaling
$107.0 million and deposits totaling $105.3 million. The purchase price
reflects an asset discount of $19.8 million and no deposit premium.
Fifty-six loans with book values totaling approximately $28.5 million as
of the bid valuation date (October 18, 2010), which represents
approximately 25% of Charter Oak’s loans, were retained by the FDIC. The
excluded loans mainly represent loans delinquent more than sixty days or
more as of the bid valuation date and certain types of land and
construction loans. Balances are subject to change based on activities
between the bid valuation date and the purchase date. The assets
acquired and liabilities assumed are subject to internal adjustment
under generally accepted accounting principles.
Charter Oak Bank has two full-service branches at 600 Trancas Street in
Napa and 1050 Adams Street in St. Helena. These branches will reopen as
Bank of Marin branches on Tuesday, February 22, 2011. Depositors have
automatically become depositors of Bank of Marin. To help customers with
the transition, Bank of Marin representatives, along with the former
Charter Oak staff will be on-site at both branches to address customer
needs. Since deposits will continue to be insured by the FDIC, there is
no need for customers to change their banking relationship to retain
their deposit insurance coverage. Bank of Marin welcomes the customers
of Charter Oak Bank. Customers’ deposits are safe and readily available,
strengthened by the financial stability of Bank of Marin.
Customers can access their money by writing checks, using ATM or debit
cards, or visiting both branches during business hours. Checks drawn on
Charter Oak Bank will continue to be processed, and loan customers
should continue making their payments as usual. Charter Oak customers
should continue to use their existing branch as Bank of Marin integrates
the systems of the two organizations. Charter Oak Bank’s customers and
shareholders who have questions about today’s transaction can call the
FDIC’s customer service center toll-free at 1-877-367-2717. The phone
number will be operational this evening until 9:00 pm Pacific Standard
Time (“PST”); on Saturday from 9:00 am to 6:00 pm PST; on Sunday noon to
6pm PST, and Monday from 8:00 am to 8:00pm PST. Thereafter hours will be
adjusted by the FDIC based on call volume.
About Bank of Marin Bancorp
Bank of Marin Bancorp's assets exceed $1 billion. Bank of Marin, as the
sole subsidiary of Bank of Marin Bancorp, is the largest community bank
in Marin County with eighteen offices in Marin, San Francisco, Sonoma
and Napa counties. The Bank's Administrative offices are located in
Novato, California. Bank of Marin offers business and personal banking,
private banking and wealth management services, with a strong focus on
supporting the local communities it serves. Bank of Marin Bancorp is
included in the Russell 2000 Small-Cap Index, is recognized as a Top 200
Community Bank, ranked number 42 in the U.S. by US Banker Magazine, and
has received the highest five star rating from Bauer Financial for more
than ten years (www.bauerfinancial.com).
Celebrating its 21st anniversary in 2011, Bank of Marin has been
recognized as one of the "Best Places to Work in the Bay Area" and one
of the "Top Corporate Philanthropists" by the San Francisco Business
Times.
Forward Looking Statements
This release may contain certain forward-looking statements that are
based on management’s current expectations regarding economic,
legislative, and regulatory issues that may impact Bancorp’s earnings in
future periods. Forward-looking statements can be identified by the fact
that they do not relate strictly to historical or current facts. They
often include the words “believe,” “expect,” “intend,” “estimate” or
words of similar meaning, or future or conditional verbs such as “will,”
“would,” “should,” “could” or “may.” Factors that could cause future
results to vary materially from current management expectations include,
but are not limited to, general economic conditions, the economic
downturn in the United States and abroad, changes in interest rates,
deposit flows, real estate values, and competition; changes in
accounting principles, policies or guidelines; changes in legislation or
regulation; and other economic, competitive, governmental, regulatory
and technological factors affecting Bancorp’s operations, pricing,
products and services. These and other important factors are detailed in
various securities law filings made periodically by Bancorp, copies of
which are available from Bancorp without charge. Bancorp undertakes no
obligation to release publicly the result of any revisions to these
forward-looking statements that may be made to reflect events or
circumstances after the date of this press release or to reflect the
occurrence of unanticipated events.
Source: Bank of Marin Bancorp
Contact:
Bank of Marin
Malin Clark, 415-686-3864
malinclark@bankofmarin.com