Community Bank of the Bay Announces Second Quarter 2015 Results

OAKLAND, CA -- (Marketwired) -- 08/04/15 -- 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 June 30, 2015.

2015 Second Quarter Financial Highlights

• Pre-tax operating income for the quarter ending June 30, 2015 totaled $571.4 thousand, an increase of $221.8 thousand, or 63.4 percent, from $349.6 thousand reported in the same period a year ago. Net profit after tax totaled $340.2 thousand, or $0.08 earnings per common share, compared to $278.7 thousand, or $0.06 earnings per common share in 2014. This 22.1 percent increase in after tax profit occurred despite a $160.3 thousand increase in tax expenses as the Bank is now estimating its all in tax rate at 40 percent.
• Total assets at June 30, 2015 were $253.2 million, an increase of $61.8 million, or 32.3 percent from $191.4 million at June 30, 2014. Average earning assets for the second quarter of 2015 reached $229.9 million, an increase of $49.2 million, or 27.2 percent, compared with $180.7 million for the same period in 2014.
• Deposits increased $13.9 million, or 6.5 percent to $226.8 million in the second quarter of 2015 compared to $212.9 million at March 31, 2015. Deposits increased $57.4 million or 33.8 percent from the second quarter of 2014.
• Loans increased $2.5 million, or 1.4 percent to $179.5 million in the second quarter of 2015 compared to $177 million at March 31, 2015. Loans increased $34.1 million or 23.5 percent from the second quarter of 2014.
• Non-performing assets increased $212.4 thousand to $2.3 million compared to the prior quarter, and decreased by $1.1 million from $3.4 million from the same quarter a year ago. Non-performing assets now represent 1.3 percent of total loans.
• Net interest margin for the second quarter decreased 11 basis point to 4.29 percent compared with 4.40 percent for the prior quarter and increased 24 basis points from 4.05 percent for the second quarter of 2014.
• Capital levels remain well above FDIC "Well Capitalized" standards. June 30, 2015 Equity of $21.9 million increased 10.1 percent from the prior year and resulted in Tier 1 Leverage of 9.03 percent, and Tier 1 Capital and Total Capital ratios of 10.88 percent and 12.13 percent respectively.

"The Bank continued to report a number of positive trends in the second quarter. Pre-tax income growth of almost 64% from a year ago has allowed us to make a number of important investments in personnel and those have in turn continued to drive growth, especially in core deposits. Year to date deposit growth of 14% included over 40% growth in key non-interest bearing DDA balances. These impressive increases in deposits demonstrate the value of our relationship-oriented banking philosophy, and position the bank nicely for both additional loan growth and a potentially rising interest rate environment," said William S. Keller, President and Chief Executive Officer. "With Assets, Deposits and Loans all at record highs, the bank is looking forward to a strong second half of 2015."

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
                          --------------------------------------------------
                                                                      Year
                                                Qtr over              over
                             2015       2015       Qtr      2014      Year
                            June 30   March 31  % Change   June 30  % Change

Interest income           $    2,664 $    2,536     5.0% $    2,006    32.8%
Interest expense          $      205 $      189     8.5%        185    10.8%
                          ---------- ---------- -------- ---------- --------
  Net interest income
   before provision       $    2,459 $    2,347     4.8%      1,821    35.0%
Provision for Loan Loss
 Reserve                  $      150 $      200   -25.0%         50   200.0%
                          ---------- ---------- -------- ---------- --------
Net interest income after
 provision                $    2,309 $    2,147     7.5%      1,771    30.4%

Non-interest income       $      304 $      555   -45.2%        348   -12.6%
Non-interest expense      $    2,042 $    1,934     5.6%      1,770    15.4%
                          ---------- ---------- -------- ---------- --------
  Income before provision
   for income taxes       $      571 $      768   -25.7%        349    63.6%
Provision for income taxes$      231 $      309   -25.2%         71   225.4%
                          ---------- ---------- -------- ---------- --------
  Net income              $      340 $      459   -25.9% $      278    22.3%
                          ========== ========== ======== ========== ========

Less: preferred dividends $       20 $       20     0.0%         20     0.0%
                          ---------- ---------- -------- ---------- --------
  Net income available for
   common stockholders    $      320 $      439   -27.1% $      258    24.0%
                          ========== ========== ======== ========== ========

Basic earnings per common
 share                          0.08 $     0.10   -27.1% $     0.06    23.2%
Common shares outstanding
 EP                        4,220,795  4,220,795           4,191,443

Return on average assets       0.52%      0.76%               0.54%
Return on average common
 equity                        7.25%     10.19%               6.61%



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


    BALANCE SHEET                         Three Months Ended
                         ---------------------------------------------------
                                                                      Year
                                               Qtr over               over
                            2015       2015       Qtr       2014      Year
    ASSETS                June 30    March 31  % Change   June 30   % Change

Total cash and
 investments             $  69,240  $  57,638     20.1%  $  41,687     66.1%
Loans, net of unearned
 income                    179,480    176,989      1.4%    145,338     23.5%
  Loan loss reserve         (3,000)    (2,839)     5.7%     (2,539)    18.2%
Other real estate owned          -          -      0.0%          -         -
Other assets                 7,522      7,363      2.2%      6,916      8.8%
                         ---------  ---------  --------  ---------  --------
  Total Assets             253,242    239,151      5.9%    191,402     32.3%

    LIABILITIES AND SHAREHOLDERS
     EQUITY

Non-interest bearing
 deposits                   81,314     68,903     18.0%     58,875     38.1%
Interest bearing
 deposits                  145,472    143,981      1.0%    110,559     31.6%
                         ---------  ---------  --------  ---------  --------
  Total deposits           226,786    212,884      6.5%    169,434     33.8%
Total borrowings and
 other liabilities           4,560      4,724     -3.5%      2,082    119.0%
                         ---------  ---------  --------  ---------  --------
  Total Liabilities      $ 231,346  $ 217,608      6.3%  $ 171,516     34.9%
                         =========  =========  ========  =========  ========

Shareholders equity         21,896   21,543.0      1.6%     19,886     10.1%
                         ---------  ---------  --------  ---------  --------
Total Liabilities and
 Shareholders Equity     $ 253,242  $ 239,151      5.9%  $ 191,402     32.3%
                         =========  =========  ========  =========  ========

Book value per common
 share                   $    4.23  $    4.14      2.0%  $    3.78     11.9%

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

Source: Community Bank of the Bay

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