SAN RAFAEL, Calif.--(BUSINESS WIRE)--Tamalpais Bancorp (the “Company") (NASDAQ: TAMB), the parent company for Tamalpais Bank and Tamalpais Wealth Advisors, today reported record quarterly earnings, robust asset growth, and minimal nonperforming assets. Net income for the quarter ended June 30, 2008 was $1,266,000, an 18.6% increase over net income of $1,067,000 over the same period last year. Quarterly diluted earnings per share of $0.33 increased 22.2% over the comparable period last year.

Net income for six months ended June 30, 2008 was $2,493,000, a 19.6% increase over net income of $2,085,000 for the same period in 2007. 2008 Year-to-date diluted earnings per share of $0.66 increased 26.9% over the comparable period last year.

On a sequential quarter basis, net income increased 3.2% and diluted earnings per share increased 6.2% over the first quarter of 2008. Per share results for 2007 have been restated for the 7% stock dividend paid February 14, 2007 and reflect the repurchase of 4.9% of the outstanding shares in the fourth quarter of 2007.

“The second quarter of 2008 was our best quarter ever for both net income and loan portfolio growth,” said Mark Garwood, President/CEO. “We grew our loan portfolio by a record amount while widening our interest margin at the same time. Our asset quality remains exceptionally strong and we produced record earnings through recurring sources of revenue.”

“Our focus on business and relationship banking in Marin County and throughout the greater Bay Area has enabled us to thrive in an environment that has been very difficult for most other financial institutions.”

The total assets of the Company increased to $649.1 million as of June 30, 2008, up $92.3 million (16.6%) from $556.8 million as of December 31, 2007. For the three and six months ended June 30, 2008:

• net loans increased by $55.8 million (11.2%) and $88.4 million (19.0%), respectively, to $553.1 million;
• deposits increased by $23.1 million (5.8%) and $57.7 million (16.0%), respectively, to $418.9 million;
• checking accounts increased by $1.7 million (5.2%) and $2.9 million (9.9%), respectively, to $33.1 million;
• investments decreased by $3.1 million (5.3%) and increased by $1.3 million (2.4%), respectively, to $56.5 million;
• FHLB Borrowings increased by $21.1 million (14.0%) and $25.7 million (17.5%), respectively, to $172.2 million; and,
• stockholders’ equity increased by $0.8 million (2.2%) and $2.1 million (6.5%), respectively, to $35.1 million.

For the quarter, net interest income before provision for loan losses increased by $1,617,000 (38.4%). The net interest margin widened to 3.92%, up from 3.44% in the second quarter of 2007 and 3.71% from the first quarter of 2008. In the second quarter of 2008 the Company significantly lowered its cost of funds to 3.52%, down from 4.80% in the second quarter of 2007 and 4.05% in the first quarter of 2008. The Company benefited from the ongoing decreases in the Federal funds and discount rates through lower funding costs while asset yields remained relatively high due to the pricing structure of loans with floors, initial fixed rates, and prepayment penalties.

Based on the significant growth in the loan portfolio, the provision for loan losses was $599,000 in the second quarter of 2008 compared to a provision of only $10,000 in the second quarter of 2007, for an increase of $589,000. The allowance for loan losses was 1.05% of loans receivable as of June 30, 2008, unchanged from the prior year.

The Company had four nonperforming loans at June 30, 2008 totaling $555,000, with an unguaranteed balance of $140,000. Included in this amount is a 60 day delinquent $552,000 commercial real estate SBA 7A loan that is 75% guaranteed by the SBA and three small consumer overdraft lines of credit. The Company is working closely with the SBA 7A loan borrower. Nonperforming loans were 0.10% of total loans and the unguaranteed balance of nonperforming loans was 0.02% of total loans at June 30, 2008.

“Our level of nonperforming assets declined in the second quarter from already low levels on both a sequential and year-over-year basis. Maintaining our remarkable asset quality in the current environment is a tribute to our team of banking professionals and to the customers that we serve. Our long history of diligent underwriting while providing flexible lending products tailored to fit our customers’ needs has allowed us to maintain a near pristine credit quality and an attractive loan yield. We have never participated in subprime lending and have low exposure to residential mortgages, construction, and land loans. These categories, in total, comprise just 11.7% of the loan portfolio.”

The Company did not sell any loans in the second quarter of 2008 and consequently did not recognize a gain on sale of loans. Noninterest income decreased $269,000 (36.0%) from the second quarter of 2007 to $477,000. The gain on sale of loans was $259,000 in the second quarter of 2007 and $166,000 in the first quarter of 2008. There may be additional periods in the coming quarters where no loan sales occur. In addition, the Company recorded a $48,000 “other than temporary impairment charge” (OTTI) in the second quarter of 2008 related to Municipal Securities insured by MBIA, AMBAC, and XLCA. The OTTI charge equates to a decrease in earnings per share of less than $0.01. The Company does not own any FNMA or FHLMC common or preferred stock.

Total noninterest expense in the second quarter of 2008 was $3,763,000, a $492,000 (15.0%) increase compared to $3,271,000 for the same period in 2007. Salaries and benefits increased $247,000 (13.5%) due primarily to planned increases in staff. The Company continued to expand its staff and management in the second quarter to strengthen its commercial and small business banking operations. Other administrative expenses increased $133,000 (25.3%) due to ongoing growth throughout the Company.

Income tax provision for the second quarter of 2008 amounted to $681,000, an increase of $69,000 (11.3%) over the same period in 2007. The effective tax rate in the second quarter of 2008 was 35.0% compared to 36.4% in the second quarter of 2007. The Company has lowered its effective tax rate through tax benefits associated with Bank Owned Life Insurance, tax credits associated with Affordable Housing Fund investments, municipal securities, and lending in Enterprise Zones.

“We enter the third quarter of 2008 with a ‘well capitalized’ balance sheet, an increasing revenue stream, minimal nonperforming assets, and multiple and diverse sources of liquidity. We are pleased to see that our strategic plan to increase shareholder value by delivering customized financial solutions and exceptional services through our seasoned team of banking professionals is coming to fruition, while at the same time managing our enterprise risk and internal controls.”

About Tamalpais Bancorp

Tamalpais Bancorp, through its wholly owned subsidiaries Tamalpais Bank and Tamalpais Wealth Advisors, offers business and consumer banking through its seven Marin County full service branches and two Northern California loan production offices, and wealth advisory services to high net worth families and institutional clients. The Company had $649 million in assets and $283 million in assets under management as of June 30, 2008. Shares of the Company's common stock are traded on the NASDAQ Capital Market System under the symbol TAMB.

This news release contains forward-looking statements with respect to the financial condition, results of operation and business of Tamalpais Bancorp and its subsidiaries. These include, but are not limited to, statements that relate to or are dependent on estimates or assumptions relating to the prospects of loan growth, credit quality, changes in securities or financial markets, and certain operating efficiencies resulting from the operations of Tamalpais Bank and Tamalpais Wealth Advisors. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressure among financial services companies increases significantly; (2) changes in the interest rate environment reduce interest margins; (3) general economic conditions, internationally, nationally or in the State of California are less favorable than expected; (4) legislation or regulatory requirements or changes adversely affect the businesses in which the consolidated organization is or will be engaged;(5) the ability to satisfy the requirements of the Sarbanes-Oxley Act and other regulations governing internal controls; (6) volatility or significant changes in the equity and bond markets which can affect overall growth and profitability of our wealth management business, and (7) other risks detailed in the Tamalpais Bancorp filings with the Securities and Exchange Commission. When relying on forward-looking statements to make decisions with respect to Tamalpais Bancorp, investors and others are cautioned to consider these and other risks and uncertainties. Tamalpais Bancorp disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

TAMALPAIS BANCORP AND SUBSIDIARIES Consolidated Balance Sheets
		June 30 2008				December 31, 2007				$ Change				% Change
		(unaudited)
Assets
Cash and cash equivalents:
Cash and due from banks		$	4,722,426			$	4,457,959			$	264,467			5.9	%
Federal funds sold			536,909				566,541				(29,632	)		-5.2	%
Total Cash and Cash Equivalents			5,259,335				5,024,500				234,835			4.7	%
Interest-bearing time deposits in other financial institutions			643,308				627,387				15,921			2.5	%
Investment securities
Available-for-sale			43,937,197				40,660,856				3,276,341			8.1	%
Held-to-maturity, at cost			12,555,578				14,514,528				(1,958,950	)		-13.5	%
Federal Home Loan Bank restricted stock, at cost			8,309,000				6,885,900				1,423,100			20.7	%
Pacific Coast Banker's Bank restricted stock, at cost			50,000				50,000				-			0.0	%
Loans receivable			558,920,184				469,613,486				89,306,698			19.0	%
Less: Allowance for loan losses			(5,847,724	)			(4,914,553	)			(933,171	)		19.0	%
			553,072,460				464,698,933				88,373,527			19.0	%
Bank premises and equipment, net			4,274,609				4,653,871				(379,262	)		-8.1	%
Accrued interest receivable			3,678,314				3,221,249				457,065			14.2	%
Cash surrender value of bank-owned life insurance			10,624,439				10,387,374				237,065			2.3	%
Other assets			6,686,618				6,090,187				596,431			9.8	%
Total Assets		$	649,090,858			$	556,814,785			$	92,276,073			16.6	%
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing deposits		$	26,651,226				23,254,723			$	3,396,503			14.6	%
Interest-bearing checking deposits			6,464,363				6,874,465				(410,102	)		-6.0	%
Money market and saving deposits			157,159,446				138,275,392				18,884,054			13.7	%
Certificates of deposit greater than or equal to $100,000			122,416,739				110,587,625				11,829,114			10.7	%
Certificates of deposit less than $100,000			106,162,033				82,182,492				23,979,541			29.2	%
Total Deposits			418,853,807				361,174,697				57,679,110			16.0	%
Federal Home Loan Bank Advances			172,185,000				146,507,500				25,677,500			17.5	%
Long term debt			6,000,000				-				6,000,000			N/A
Junior Subordinated Debentures			13,403,000				13,403,000				-			0.0	%
Accrued interest payable and other liabilities			3,571,800				2,797,051				774,749			27.7	%
Total Liabilities			614,013,607				523,882,248				90,131,358			17.2	%
Commitment and Contingencies			-				-				-			-
Stockholders' Equity
Common stock, no par value; 10,000,000 shares authorized; 3,818,284 shares issued and outstanding June 30, 2008 and December 31, 2007			11,977,473				11,977,473				-			0.0	%
Paid-In-Capital			817,083				663,213				153,870			23.2	%
Retained earnings			22,186,873				20,084,667				2,102,206			10.5	%
Accumulated other comprehensive income/loss			95,822				207,184				(111,362	)		-53.8	%
Total Stockholders' Equity			35,077,251				32,932,537				2,144,714			6.5	%
Total Liabilities and Stockholders' Equity		$	649,090,858			$	556,814,785			$	92,276,073			16.6	%

TAMALPAIS BANCORP AND SUBSIDIARIES Consolidated Statements of Income For the Periods Ended June 30, 2008 and 2007
		Three Months Ended June 30,						Six Months Ended June 30,
		2008			2007			2008			2007
		(Unaudited)						(Unaudited)
Interest Income
Interest and fees on loans		$	9,930,424		$	8,927,108		$	19,365,983		$	17,740,151
Interest on investment securities			660,704			560,828			1,307,631			1,127,687
Interest on Federal funds sold			10,238			67,915			50,956			113,314
Interest on other investments			112,914			56,218			205,950			136,239
Interest on deposits in other financial institutions			8,011			11,514			15,922			22,770
Total Interest Income			10,722,291			9,623,583			20,946,442			19,140,161
Interest Expense
Interest expense on deposits			3,020,744			4,099,814			6,374,566			8,193,321
Interest expense on borrowed funds			1,680,555			1,013,515			3,277,387			1,857,484
Interest expense on long term debt			38,173			-			38,173			-
Interest expense on Junior Subordinated Debentures			150,806			295,493			352,941			584,767
Total Interest Expense			4,890,278			5,408,822			10,043,067			10,635,572
Net Interest Income Before Provision for Loan Losses			5,832,013			4,214,761			10,903,375			8,504,589
Provision for Loan Losses			598,858			10,155			943,957			(76,135	)
Net Interest Income After Provision for Loan Losses			5,233,155			4,204,606			9,959,418			8,580,724
Noninterest Income
Gain on sale of loans, net			-			258,617			166,293			417,055
Loan servicing			48,999			26,612			84,758			76,189
Registered Investment Advisory Services fee income			149,986			145,092			306,833			285,953
Other income			277,897			315,201			582,939			466,082
Total Noninterest Income			476,882			745,522			1,140,823			1,245,279
Noninterest Expenses
Salaries and benefits			2,078,872			1,831,452			4,222,272			3,734,495
Occupancy			389,092			369,793			744,535			718,140
Advertising			69,896			73,671			148,241			210,303
Professional			187,829			158,194			298,176			272,584
Data processing			160,333			93,060			281,260			204,385
Equipment and depreciation			216,393			217,873			437,359			417,143
Other administrative			660,781			527,369			1,267,753			989,245
Total Noninterest Expense			3,763,196			3,271,412			7,399,596			6,546,295
Income Before Income Taxes			1,946,841			1,678,716			3,700,645			3,279,708
Provision for Income Taxes			680,748			611,624			1,207,229			1,194,688
Net Income		$	1,266,093		$	1,067,092		$	2,493,416		$	2,085,020
Earnings Per Share
Basic		$	0.33		$	0.27		$	0.65		$	0.52
Diluted		$	0.33		$	0.27		$	0.65		$	0.52

TAMALPAIS BANCORP AND SUBSIDIARIES Selected Ratios and Other Data Unaudited (Dollars in Thousands Except Per Share Amounts)
		At or For the Three Months Ended June 30,								At or For the Six Months Ended June 30,
		2008				2007				2008				2007
Profitability Ratios:
Return on average assets			0.82	%			0.84	%			0.84	%			0.83	%
Return on average equity			14.73	%			13.07	%			14.51	%			12.99	%
Net Interest Margin			3.92	%			3.44	%			3.82	%			3.51	%
Efficiency ratio			59.6	%			66.0	%			61.4	%			67.1	%
Other Information:
Average total assets		$	621,151			$	510,302			$	596,482			$	504,725
Average interest earning assets		$	598,605			$	491,076			$	573,989			$	488,863
Average equity		$	34,373			$	32,670			$	33,853			$	32,113
Average Basic Shares Outstanding			3,818,284				3,987,981				3,818,284				3,975,848
Average Diluted Shares Outstanding			3,833,558				4,024,650				3,832,071				4,015,945
Basic earnings per share		$	0.33			$	0.27			$	0.65			$	0.52
Diluted earnings per share		$	0.33			$	0.27			$	0.65			$	0.52
		At June 30, 2008				At December 31, 2007
Share Information:
Book value per share		$	9.19			$	8.62
Shares outstanding			3,818,284				3,818,284
Asset Quality Information:
Non-performing loans		$	555			$	466
Other real estate owned			-				-
Allowance for loan losses		$	5,848			$	4,915
Non-performing loans / total loans			0.10	%			0.10	%
Non-performing assets / total assets			0.09	%			0.08	%
Allowance for loan losses / loans outstanding			1.05	%			1.05	%
Allowance for loan losses / non-accrual loans			1053.64	%			1054.63	%
Tamalpais Bank Capital Ratios:
Tier 1 leverage ratio			8.56	%			8.33	%
Tier 1 risk based capital ratio			9.26	%			9.15	%
Total risk based capital ratio			10.28	%			10.15	%

Net Loans Outstanding:
		At June 30, 2008						At December 31, 2007
		AMOUNT			%			AMOUNT			%
		(Dollars in thousands)
One-to-four family residential		$	27,573		4.9	%		$	22,098		4.7	%
Multifamily residential			154,891		27.7				123,077		26.2
Commercial real estate			319,471		57.2				246,257		52.4
Land			10,365		1.9				9,369		2.0
Construction real estate			27,684		5.0				28,988		6.2
Consumer loans			2,131		0.4				2,045		0.4
Commercial, non real estate			14,907		2.7				36,250		7.7
Total gross loans			557,022		99.7				468,084		99.7
Net deferred loan costs			1,898		0.3				1,529		0.3
Total loans receivable, net of deferred loan costs		$	558,920		100.0	%		$	469,613		100.0	%

TAMALPAIS BANCORP AND SUBSIDIARIES Average Balance Sheets (Unaudited)
		For the Three Months Ended
(dollars in thousands)		6/30/08						6/30/07
		Average Balance		Interest Income/ Expense		Yields Earned/ Paid		Average Balance		Interest Income/ Expense		Yields Earned/ Paid
Assets
Investment securities - Muni's (1,2)		$ 7,103		$ 70		5.58%		$ 2,367		$ 24		5.74%
Investment securities - taxable (2)		51,032		591		4.66%		47,457		$ 537		4.54%
Other investments		7,853		113		5.79%		4,885		56		4.60%
Interest bearing deposits in other financial institutions		698		8		4.61%		1,108		12		4.34%
Federal funds sold		2,024		10		1.99%		5,065		68		5.38%
Loans (3)		529,895		9,930		7.54%		430,194		8,927		8.32%
Total Interest Earning Assets		598,605		10,722		7.20%		491,076		9,624		7.86%
Allowance for loan losses		(5,460)						(4,612)
Cash and due from banks		4,541						4,200
Net premises, furniture and equipment		4,407						4,957
Other assets		19,058						14,681
Total Assets		$ 621,151						$510,302
Liabilities and Shareholders' Equity
Interest bearing checking		$ 6,943		10		0.58%		$ 7,710		12		0.62%
Savings deposits (4)		154,795		1,019		2.65%		157,971		1,775		4.51%
Time deposits		215,424		1,991		3.72%		179,728		2,313		5.16%
Other borrowings		164,888		1,681		4.10%		93,077		1,014		4.37%
Long Term Debt		3,500		38		4.37%		-		-		N/A
Junior Subordinated Debentures		13,403		151		4.53%		13,403		295		8.83%
Total Interest Bearing Liabilities		558,953		4,890		3.52%		451,889		5,409		4.80%
Noninterest deposits		24,518						22,398
Other liabilities		3,307						3,345
Total Liabilities		586,778						477,632
Shareholders' Equity		34,373						32,670
Total Liabilities and Shareholders' Equity		$ 621,151						$510,302
Net interest income				$ 5,832						$ 4,215
Net interest spread (5)						3.69%						3.06%
Net interest margin (6)						3.92%						3.44%
(1) Yields on securities and certain loans have been adjusted upward to a "fully taxable equivalent" ("FTE") basis in order to reflect the effect of  income which is exempt from federal income taxation at the current statutory tax rate.
(2) The yields for securities were computed using the average amortized cost and therefore do not give effect for changes in fair value.
(3) Loans, net of unearned income, include non-accrual loans but do not reflect average reserves for possible loan losses.
(4) Savings deposits include Money Market accounts.
(5) Net interest spread is the interest differential between total interest earning assets and total interest-bearing liabilities.
(6) Net interest margin is the net yield on average interest earning assets.

TAMALPAIS BANCORP AND SUBSIDIARIES Average Balance Sheets (Unaudited)
		For the Six Months Ended
(dollars in thousands)		6/30/08						6/30/07
		Average Balance		Interest Income/ Expense		Yields Earned/ Paid		Average Balance		Interest Income/ Expense		Yields Earned/ Paid
Assets
Investment securities - Muni's (1,2)		$ 6,638		$ 131		5.59%		$ 1,424		$ 28		5.57%
Investment securities - taxable (2)		49,633		$ 1,177		4.77%		$ 48,435		$ 1,100		4.58%
Other investments		7,625		206		5.43%		5,078		136		5.40%
Interest bearing deposits in other financial institutions		667		16		4.82%		1,067		23		4.35%
Federal funds sold		3,627		51		2.83%		4,318		113		5.28%
Loans (3)		505,799		19,365		7.70%		428,541		17,740		8.35%
Total Interest Earning Assets		573,989		20,946		7.34%		488,863		19,140		7.90%
Allowance for loan losses		(5,223)						(4,647)
Cash and due from banks		4,414						4,573
Net premises, furniture and equipment		4,500						5,027
Other assets		18,802						10,909
Total Assets		$ 596,482						$504,725
Liabilities and Shareholders' Equity
Interest bearing checking		$ 6,848		21		0.62%		$ 7,814		24		0.62%
Savings deposits (4)		147,506		1,936		2.64%		154,856		3,466		4.51%
Time deposits		208,630		4,418		4.26%		184,014		4,703		5.15%
Other borrowings		157,408		3,277		4.19%		88,613		1,857		4.23%
Long Term Debt		2,000		38		3.82%		-		-		N/A
Junior Subordinated Debentures		13,403		353		5.30%		13,403		585		8.80%
Total Interest Bearing Liabilities		535,795		10,043		3.77%		448,700		10,635		4.78%
Noninterest deposits		23,737						20,259
Other liabilities		3,097						3,653
Total Liabilities		562,629						472,612
Shareholders' Equity		33,853						32,113
Total Liabilities and Shareholders' Equity		$ 596,482						$504,725
Net interest income				$10,903						$ 8,505
Net interest spread (5)						3.57%						3.12%
Net interest margin (6)						3.82%						3.51%
(1) Yields on securities and certain loans have been adjusted upward to a "fully taxable equivalent" ("FTE") basis in order to reflect the effect of  income which is exempt from federal income taxation at the current statutory tax rate.
(2) The yields for securities were computed using the average amortized cost and therefore do not give effect for changes in fair value.
(3) Loans, net of unearned income, include non-accrual loans but do not reflect average reserves for possible loan losses.
(4) Savings deposits include Money Market accounts.
(5) Net interest spread is the interest differential between total interest earning assets and total interest-bearing liabilities.
(6) Net interest margin is the net yield on average interest earning assets.

Tamalpais Bancorp
Mark Garwood, 415-526-6400
President / CEO