Community Bank of the Bay Announces 2012 Third Quarter Earnings and the Sale of Its Oakland Headquarters Building

OAKLAND, CA--(Marketwire - Oct 30, 2012) - Community Bank of the Bay (OTCBB: CBYAA), a San Francisco Bay Area bank with locations in Oakland, Danville and San Jose, announced operating results for its third quarter ending September 30, 2012.

2012 Third Quarter Earnings Highlights

• Net Income for the 2012 Third Quarter totaled $104 thousand, or $0.02 earnings per share. Year-to-date net income totaled $598 thousand, or $0.14 earnings per share.
• Deposits decreased $924 thousand to $124.6 million in the Third Quarter of 2012, excluding a special temporary deposit of $6.6 million that was held at June 30, 2012.
• Loans increased $329 thousand to $99.5 million in the Third Quarter of 2012.
• Non-Accrual Loans decreased $751 thousand to $3.4 million, and represent 3.40 percent of Total Loans.
• Net Interest Margin decreased thirty-three basis points to 4.45 percent, compared with 4.78 percent for the 2012 Second Quarter and increased eleven basis points from 4.34 percent for the 2011 Third Quarter.
• Capital Levels remain well above FDIC "Well Capitalized" standards. Third Quarter 2012 Equity of $15.8 million resulted in Tier 1 Leverage of 10.88 percent and Tier 1 Risk-Based and Total Risk-Based Capital Ratios of 14.75 percent and 16.02 percent respectively.

Net income for the 2012 third quarter totaled $104 thousand, or $0.02 earnings per share, versus a loss of $206 thousand, or $0.05 per share, for the 2011 third quarter. The increase in net income for the 2012 third quarter, versus the comparable quarter last year, is primarily due to a $182 thousand increase in gain on sale of securities and $121 thousand decrease in non-interest expenses.

Total assets at September 30, 2012 were $148.6 million compared to $132.9 million at September 30, 2011. Average earning assets for the 2012 third quarter reached $131.2 million, an increase of $10.2 million, or 8.4 percent, compared with the 2011 second quarter.

Deposits decreased by $924 thousand to $132.7 million during the quarter ending September 30, 2012. When compared with deposits at September 30, 2011, deposit growth for the last twelve months was $14.8 million, or 13.5 percent.

Loans increased a modest $329 thousand to $99.5 million during the quarter ending September 30, 2012. When compared with September 30, 2011, loan growth over the last twelve months was $10.5 million, or 11.7 percent.

"While profitability is down from the first half of the year, a good portion is due to our continued investments in staffing, asset quality and other initiatives that are necessary if we are to recognize our long term strategic plan. We are committed to providing our clients with a great banking experience and in the third quarter we began construction on a new Danville office that will allow us to better serve our clients in the 680-corridor. This new location at 390 Railroad is a significantly larger, full service banking office that sets the stage for our continued growth in this important market. In addition, we are extremely happy to announce that we have closed on the sale of our Oakland headquarters building. As the Bank has grown both the Board and management have determined that the operation, management, and ownership of the building distracted us from our core mission of relationship banking. We are considering a number of options within Oakland and expect to announce a new headquarters location shortly," stated William S. Keller, President and Chief Executive Officer.

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 San Jose, and Danville, CA. The bank is recognized for establishing the Bay Area Green Fund to provide financing to sustainable businesses and supports environmentally responsible values. Additional information on the bank is available online at www.communitybankbay.com.