ALAMEDA -- Bank of Marin has completed its purchase of Bank of Alameda, giving the larger North Bay bank its first beachhead in the East Bay, and creating a financial company with $1.7 billion in assets and more than $25 million in profits.

The new bank operation has 21 branches in Marin County, Alameda County, San Francisco, Sonoma County and Napa County.

"With the close of the merger successfully behind us, we look forward to working with the Bank of Alameda team and the local community to make a positive impact in the East Bay," said Russ Colombo, Bank of Marin chief executive officer.

As a combined entity, the banks would have produced $25.2 million in profits over the 12 months that ended in September. That was 57 percent higher than the profits of $16.1 million over the 12 months that ended in September 2012.

Under the $34.5 million deal, Kevin Kennedy, longtime Alameda city treasurer, was named to the board of directors of the newly constituted bank. Kennedy said the bank branch in the city of Alameda will retain its Bank of Alameda name, while the other East Bay branches will be renamed Bank of Marin.

"Kevin Kennedy brings with him a deep knowledge about the local Alameda community," said Joel Sklar, bank chairman. "He will keep us focused on the top priorities in that market."

Contact George Avalos at 408-859-5167. Follow him at Twitter.com/georgeavalos.