Tamalpais Bancorp. today announced that for the fourth quarter 2008, net income totaled $850,000, or earnings per share (EPS) of $0.22. In the 2007’s fourth quarter the company reported net income of $1,139,000, or EPS of $0.30. Net income for the full year of 2008 was $4,829,000, or EPS of $1.26, compared to net income of $4,209,000, or EPS of $1.07, in 2007, representing a 14.7% increase in net income and a 17.8% increase in EPS.
According to the press release, the return on average shareholders' equity was 9.18% in the fourth quarter and 13.74% for the full year of 2008, compared to 13.89% in the fourth quarter of 2007 and 12.89% for the full year of 2007. In 2008, book value per share increased by 14.2% to $9.84.
Mark Garwood, President and CEO, stated, “We are continuing to grow our core business in an increasingly difficult economic environment. Loans and deposits both grew at annualized rates of over 10% in the quarter. We were particularly successful in growing noninterest deposits, which increased 10.4% in the fourth quarter and 43.0% for the full year.”
He continued to say, In response to the deterioration of economic conditions over the past several months we have increased our allowance for loan losses. Although our increased provision for loan losses reduced earnings, our increasing revenue allowed us to take a large provision while still remaining profitable. We produced a return on average shareholders' equity of 9.18% in the fourth quarter despite recording a larger loan loss provision, and our full year return on average shareholder's equity was 13.74%.
As of December 31, 2008, the Company had 18 nonperforming loans totaling $16.8 million and one foreclosed property owned with a balance of $417,000. Included in the nonperforming loans are a $3.3 million commercial term loan secured by real estate, a $5.4 commercial term loan secured by real estate, and a $2.1 million land/construction loan.
Although we have seen an increase in nonperforming loans in the quarter, the three largest loans represent 63% of total nonperforming assets. The increase in the loss provision takes into consideration the deterioration in credit quality of these assets, although we have not yet recorded a specific loss on any loan on nonaccrual status, said Garwood. We are working diligently with borrowers to proactively identify and address difficulties as they arise.