Community Bank of the Bay Announces Third Quarter 2015 Results

OAKLAND, CA -- (Marketwired) -- 11/10/15 -- 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 September 30, 2015.

Third Quarter Financial Highlights

• Pre-tax operating income for the quarter ending September 30, 2015 totaled $765 thousand, a decrease of $28 thousand, or 3.5 percent, from $793 thousand reported in the same period a year ago. Net profit after tax totaled $446 thousand, or $0.10 earnings per common share, compared to $632 thousand reported in 2014.
• YTD pre-tax operating income as of September 30, 2015 totaled $2.1 million, an increase of $517 thousand, or 32.5 percent, from $1.6 million reported in the same period a year ago. Net profit after tax totaled $1.2 million, compared to $1.2 million reported in 2014. The YTD net profit decrease of $20 thousand was entirely due to a $537 thousand increase in estimated income taxes.
• Total assets at September 30, 2015 were $256.0 million, an increase of $64.0 million, or 33.3 percent from $192.0 million at September 30, 2014. Average earning assets for third quarter of 2015 reached $236.7 million, an increase of $56.4 million, or 31.3 percent, compared with $180.3 million in 2014.
• Deposits increased $5.8 million, or 2.6 percent to $232.6 million in the third quarter of 2015 compared to $226.8 million at June 30, 2015. Deposits increased $65.7 million or 39.0 percent from the third quarter of 2014.
• Loans increased $12.2 million, or 6.8 percent to $191.7 million in the third quarter of 2015 compared to $179.5 million at June 30, 2015. Loans increased $38.9 million or 25.5 percent from the third quarter of 2014.
• Non-performing assets increased $1.0 million to $3.4 million compared to the prior quarter, and increased by $1.1 million from $2.3 million from the same quarter a year ago. Non-performing assets now represent 1.77 percent of total loans.
• Net interest margin for the third quarter decreased 0.24 basis point to 4.05 percent, compared with 4.29 percent for the prior quarter and decreased 0.52 basis points from 4.58 percent for the 2014 third quarter.
• Capital levels remain well above FDIC "Well Capitalized" standards. September 30, 2015 Equity of $22.5 million increased 9.5 percent from the prior year and resulted in Tier 1 Leverage of 9.00 percent, and Tier 1 Capital and Total Capital ratios of 10.52 percent and 11.77 percent respectively.

"The Bank continued to show a number of important positive trends in the third quarter. Specifically, this is the fourth consecutive quarter where the Bank reported records in the three key balance sheet metrics of total assets, loans outstanding and deposits. These client driven increases reflect the market's acceptance of our relationship-oriented banking philosophy," said William S. Keller, President and Chief Executive Officer. "As further recognition of our efforts, 2015 marks the sixth consecutive year where we have earned the maximum Bank Enterprise Award granted by the US Treasury's CDFI Fund for the positive community development impacts associated with supplying credit to worthy small and medium sized businesses and non-profit organizations."

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
                      September                         September
                         30        June 30   % Change      30      % Change

Interest income      $    2,617  $    2,664      -1.8% $    2,244      16.6%
Interest expense            199         205      -2.9%        166      19.9%
                     ----------  ----------  --------  ----------  --------
  Net interest income
   before provision       2,418       2,459      -1.7%      2,078      16.4%
Provision for Loan
 Loss Reserve                50         150     -66.7%        100     -50.0%
                     ----------  ----------  --------  ----------  --------
  Net interest income
   after provision        2,368       2,309       2.6%      1,978      19.7%

Non-interest income         436         305      43.0%        565     -22.8%
Non-interest expense      2,039       2,042      -0.1%      1,750      16.5%
                     ----------  ----------  --------  ----------  --------
  Income before
   provision for
   income taxes             765         572      33.7%        793      -3.5%
Provision for income
 taxes                      319         231      38.1%        161      98.1%
                     ----------  ----------  --------  ----------  --------
  Net income         $      446  $      341      30.8% $      632     -29.4%
                     ==========  ==========  ========  ==========  ========

Less: preferred
 dividends                   20          20       0.0%         20       0.0%
                     ----------  ----------  --------  ----------  --------
  Net income
   available for
   common
   stockholders      $      426  $      321      32.7% $      612     -30.4%
                     ==========  ==========  ========  ==========  ========

Basic earnings per
 common share              0.10  $     0.08      32.3% $     0.15     -31.1%
Common shares
 outstanding EP       4,232,435   4,220,795             4,191,443

Return on average
 assets                    1.23%       0.54%                 0.73%
Return on average
 common equity             9.63%       7.38%                 8.83%



                         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
                        September                       September
         ASSETS             30      June 30   % Change      30     % Change

Total cash and
 investments            $  59,523  $  69,240     -14.0% $  33,541      77.5%
Loans, net of unearned
 income                   191,736    179,480       6.8%   152,822      25.5%
  Loan loss reserve        (3,129)    (3,000)      4.3%    (2,562)     22.1%
Other real estate owned         -          -       0.0%         -         -
Other assets                7,836      7,522       4.2%     8,217      -4.6%
                        ---------  ---------  --------  ---------  --------
  Total Assets            255,966    253,242       1.1%   192,018      33.3%

   LIABILITIES AND SHAREHOLDERS
              EQUITY

Non-interest bearing
 deposits                  81,415     81,314       0.1%    54,317      49.9%
Interest bearing
 deposits                 151,225    145,472       4.0%   112,551      34.4%
                        ---------  ---------  --------  ---------  --------
  Total deposits          232,640    226,786       2.6%   166,868      39.4%
Total borrowings and
 other liabilities            860      4,560     -81.1%     4,632     -81.4%
                        ---------  ---------  --------  ---------  --------
  Total Liabilities     $ 233,500  $ 231,346       0.9% $ 171,500      36.2%
                        =========  =========  ========  =========  ========

Shareholders equity        22,466   21,896.0       2.6%    20,517       9.5%
                        ---------  ---------  --------  ---------  --------
Total Liabilities and
 Shareholders Equity    $ 255,966  $ 253,242       1.1% $ 192,017      33.3%
                        =========  =========  ========  =========  ========

Book value per common
 share                  $    4.35  $    4.23       2.9% $    3.85      13.0%

Media Contact:
William Keller
President & CEO
510-433-5404
[email protected]

Source: Community Bank of the Bay

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