Community Bank of the Bay Announces First Quarter 2015 Results

OAKLAND, CA -- (Marketwired) -- 05/05/15 -- Community Bank of the Bay (OTCBB: CBYAA), a San Francisco Bay Area commercial bank with full service offices in Oakland and Danville, and two business offices in the Silicon Valley, reported unaudited earnings results for its quarter ending March 31, 2015.

2015 First Quarter Financial Highlights

• Pre-tax operating income for the quarter ending March 31, 2015 totaled $768 thousand, an increase of $323 thousand, or 72.6 percent, from $445 thousand reported in the same period a year ago. Net profit after tax totaled $459 thousand, or $0.10 earnings per common share, compared to $355 thousand reported in 2014. This 29.3 percent increase in after tax profit occurred despite a $219 thousand increase in tax expenses as the Bank is now estimating its all in tax rate at 40 percent.
• Total assets at March 31, 2015 were $239.1 million, an increase of $45.9 million, or 23.7 percent from $193.3 million at March 31, 2014. Average earning assets for first quarter of 2015 reached $216.4 million, an increase of $45 million, or 26.3 percent, compared with $171.3 million in 2014.
• Deposits increased $14.1 million, or 7.1 percent to $212.9 million in the first quarter of 2015 compared to $198.8 million at December 31, 2014. Deposits increased $43.5 million or 25.7 percent from the first quarter of 2014.
• Loans increased $1.9 million, or 1.1 percent to $177 million in the first quarter of 2015 compared to $175.1 million at December 31, 2014. Loans increased $46.8 million or 35.9 percent from the first quarter of 2014.
• Non-performing assets decreased $409 thousand to $2.1 million compared to the prior quarter, and $1.7 million from the same quarter a year ago. During the first quarter the Bank sold its only OREO asset and charged off $150 thousand associated with non-performing assets. Non-performing assets now represent 1.2 percent of total loans.
• Net interest margin for the first quarter decreased one basis point to 4.40 percent, compared with 4.41 percent for the prior quarter and increased fifteen basis points from 4.25 percent for the 2014 first quarter.
• Capital levels remain well above FDIC "Well Capitalized" standards. March 31, 2015 Equity of $21.5 million increased 10.8 percent from the prior year and resulted in Tier 1 Leverage of 9.34 percent, and Tier 1 Capital and Total Capital ratios of 11.36 percent and 12.60 percent respectively.

"After experiencing significant loan growth in the second half of 2014 the Bank saw its loan growth moderate in the first quarter while deposit growth, especially non-interest bearing deposit growth remained strong. As a result the quarter brought record levels of total assets, deposits, loans and pre-tax income" said William S. Keller, President and Chief Executive Officer. "And given our strong pipeline we expect loan growth to resume in the coming quarters."

About Community Bank of the Bay

Community Bank of the Bay (OTCBB: CBYAA) serves the financial needs of closely held businesses and professional service firms, as well as their owner-operators and non-profit organizations throughout the San Francisco Bay Area. Community Bank of the Bay is a member of the FDIC, an SBA Preferred Lender, and a CDARS depository institution, headquartered in Oakland, with offices in Danville, San Mateo and Campbell, CA. It is also California's first FDIC-insured certified Community Development Financial Institution and one of only three operating in the Northern California market. The bank is recognized for establishing the Bay Area Green Fund to provide financing to sustainable businesses and projects and supports environmentally responsible values. Additional information on the bank is available online at www.BankCBB.com.

Forward-Looking Statements This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Bank does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether to reflect new information, future events, or otherwise, except as required by law.

                         COMMUNITY BANK OF THE BAY
                   UNAUDITED SUMMARY FINANCIAL STATEMENTS
                  (In thousands except earnings per share)


INCOME STATEMENT                     Three Months Ended
                 ----------------------------------------------------------
                                           Qtr over               Year over
                    2015         2014         Qtr       2014        Year
                  March 31    December 31  % Change   March 31    % Change

Interest income  $    2,536  $      2,460       3.1% $    1,965        29.1%
Interest expense        189           172       9.9%        136        39.0%
                 ----------  ------------  --------  ----------  ----------
  Net interest
   income before
   provision          2,347         2,286       2.7%      1,796        30.7%
Provision for
 Loan Loss
 Reserve                200           225     -11.1%         50       300.0%
                 ----------  ------------  --------  ----------  ----------
  Net interest
   income after
   provision          2,147         2,061       4.2%      1,746        23.0%

Non-interest
 income                 555           379      46.4%        360        54.2%
Non-interest
 expense              1,934         1,822       6.1%      1,661        16.4%
                 ----------  ------------  --------  ----------  ----------
  Income before
   provision for
   income taxes         768           619      24.1%        445        72.6%
Provision for
 income taxes           309           178      73.6%         90       243.3%
                 ----------  ------------  --------  ----------  ----------
  Net income     $      459  $        441       4.1% $      355        29.3%
                 ==========  ============  ========  ==========  ==========

Less: preferred
 dividends               20            20       0.0%         20         0.0%
                 ----------  ------------  --------  ----------  ----------
  Net income
   available for
   common
   stockholders  $      439  $        421       4.3% $      335        31.0%
                 ==========  ============  ========  ==========  ==========

Basic earnings
 per common
 share           $     0.10  $       0.10       4.3% $     0.08        30.1%
Common shares
 outstanding EP   4,220,795     4,220,795             4,191,443

Return on
 average assets        0.76%         0.81%                 0.73%
Return on
 average common
 equity               10.19%        10.07%                 8.83%



                        COMMUNITY BANK OF THE BAY
                 UNAUDITED SUMMARY FINANCIAL STATEMENTS
                (In thousands except earnings per share)


  BALANCE SHEET                       Three Months Ended
                  ---------------------------------------------------------
                                           Qtr over              Year over
                     2015        2014         Qtr       2014        Year
      ASSETS       March 31   December 31  % Change   March 31    % Change

Total cash and
 investments      $  57,638  $     44,340      30.0% $  58,718         -1.8%
Loans, net of
 unearned income    176,989       175,096       1.1%   130,230         35.9%
                                                                -----------
  Loan loss
   reserve           (2,839)       (2,783)      2.0%    (2,505)        13.3%
Other real estate
 owned                    -           971    -100.0%         -            -
Other assets          7,363         6,947       6.0%     6,846          7.6%
                  ---------  ------------  --------  ---------  -----------
  Total Assets      239,151       224,571       6.5%   193,289         23.7%

LIABILITIES AND
 SHAREHOLDERS EQUITY

Non-interest
 bearing deposits    68,903        57,964      18.9%    60,123         14.6%
Interest bearing
 deposits           143,981       140,857       2.2%   109,223         31.8%
                  ---------  ------------  --------  ---------  -----------
  Total deposits    212,884       198,821       7.1%   169,346         25.7%
Total borrowings
 and other
 liabilities          4,724         4,713       0.2%     4,493          5.1%
                  ---------  ------------  --------  ---------  -----------
  Total
   Liabilities    $ 217,608  $    203,534       6.9% $ 173,839         25.2%
                  =========  ============  ========  =========  ===========

Shareholders
 equity              21,543        21,037       2.4%    19,449         10.8%
                  ---------  ------------  --------  ---------  -----------
Total Liabilities
 and Shareholders
 Equity           $ 239,151  $    224,571       6.5% $ 193,288         23.7%
                  =========  ============  ========  =========  ===========

Book value per
 common share     $    4.14  $       4.02       3.0% $    3.67         12.8%

Media Contacts:
William S. Keller
President & CEO
510-433-5404
[email protected]

Source: Community Bank of the Bay

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