SOURCE: Community Bank of the Bay

Community Bank of the Bay

April 29, 2016 08:00 ET

Community Bank of the Bay Announces Record Operating Income for First Quarter 2016

OAKLAND, CA--(Marketwired - Apr 29, 2016) - 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, 2016.

2016 First Quarter Financial Highlights

  • Pre-tax operating income for the quarter ending March 31, 2016 totaled $1.02 million, an increase of $257 thousand, or 33.4 percent, from $768 thousand reported in the same period a year ago. Net profit after tax totaled $613 thousand, or $0.14 earnings per common share, compared to $459 thousand reported in 2015

  • Total assets at March 31, 2016 were $247.6 million, an increase of $8.5 million, or 3.6 percent from $239.1 million at March 31, 2015. Average earning assets for the quarter reached $233.6 million, an increase of $17.1 million, or 7.95 percent, compared with $216.4 million in 2015.

  • Deposits totaled $223 million at March 31, 2016 and represented an increase of $5.1 million or 2.5 percent from the prior quarter, and $10.1 million, or a 4.8 percent increase from the prior year.

  • Loans totaled $195 million at March 31, 2016 and represented a decrease of $5 million or 2.5 percent from the prior quarter, and an increase of $18.3 million, or 10.3 percent from the prior year.

  • Non-performing assets decreased $1.1 million, or 28 percent to $2.8 million compared to the prior quarter and now represent 1.4 percent of total loans. Our Allowance for Loan Losses represents 1.69 percent of Total Loans.

  • Net interest margin for the first quarter increased nine basis points to 4.34 percent, compared with 4.26 percent for the prior quarter and decreased six basis points from 4.40 percent in the year ago quarter.

  • Capital levels remain well above FDIC "Well Capitalized" standards. March 31, 2016 equity of $23.5 million increased 9.3 percent from the prior year and resulted in a common equity tier 1 capital ratio of 8.7 percent, and a tier 1 capital and total capital ratio of 10.53 percent and 11.78 percent respectively.

  • Book value per common share increased to $4.52 as of March 31, 2016 from $4.37 at December 31, 2015 and $4.41 at March 31, 2015.

"2016 marks the Bank's 20th anniversary, and we have reached an important milestone, earning our first $1 million operating profit in a quarter. It is exciting that the Bank started the year with such a significant accomplishment. We hope that this quarter's results prove to be a prescient start to a year that appropriately celebrates the many clients, employees and investors who have believed in and supported our Bank throughout the years," said William S. Keller, President and Chief Executive Officer. "Our prior earnings report referenced a troubled credit relationship that negatively impacted our 2015 fourth quarter earnings. While the Bank continues to work through the collection process, we are pleased to report that in the first quarter we collected a significant portion of this credit, and we have now either collected, charged-off or fully reserved for all of the loans associated with this account."

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  
    2016     2015     Qtr over Qtr     2015     Year over Year  
    March 31     December 31     % Change     March 31     % Change  
                               
Interest income   $ 2,719     $ 2,725     -0.2 %   $ 2,536     7.2 %
Interest expense     196       199     -1.5 %     189     3.7 %
  Net interest income before provision     2,523       2,526     -0.1 %     2,347     7.5 %
Provision for Loan Loss Reserve     -       850     -100.0 %     200     -100.0 %
  Net interest income after provision     2,523       1,676     50.5 %     2,147     17.5 %
                                     
Non-interest income     477       591     -19.3 %     555     -14.1 %
Non-interest expense     1,975       2,150     -8.1 %     1,934     2.1 %
  Income before provision for income taxes     1,025       117     776.1 %     768     33.5 %
Provision for income taxes     412       30     1273.3 %     309     33.3 %
  Net income   $ 613     $ 87     604.6 %   $ 459     33.6 %
                                     
Less: preferred dividends     20       20     0.0 %     20     0.0 %
  Net income available for common stockholders   $ 593     $ 67     785.1 %   $ 439     35.1 %
                                     
Basic earnings per common share   $ 0.14     $ 0.02     768.2 %   $ 0.10     31.2 %
Common shares outstanding EP     4,314,858       4,232,435             4,191,443        
                                     
Return on average assets     0.97 %     0.11 %           0.64 %      
Return on average common equity     12.48 %     1.47 %           10.50 %      
                                     
 
COMMUNITY BANK OF THE BAY 
UNAUDITED SUMMARY FINANCIAL STATEMENTS 
(In thousands except earnings per share) 
 
 
BALANCE SHEET   Three Months Ended  
    2016     2015     Qtr over Qtr     2015     Year over Year  
ASSETS   March 31     December 31     % Change     March 31     % Change  
                               
Total cash and investments   $ 47,872     36,407     31.5 %   $ 57,638     -16.9 %
Loans, net of unearned income     195,240     200,271     -2.5 %     176,989     10.3 %
  Loan loss reserve     (3,308 )   (3,488 )   -5.2 %     (2,839 )   16.5 %
Other real estate owned     -     -     0.0 %           -  
Other assets     7,859     8,135     -3.4 %     7,363     6.7 %
  Total Assets     247,663     241,325     2.6 %     239,151     3.6 %
                                   
LIABILITIES AND SHAREHOLDERS EQUITY                                  
                                   
Non-interest bearing deposits     80,236     72,390     10.8 %     68,903     16.4 %
Interest bearing deposits     142,809     145,580     -1.9 %     143,981     -0.8 %
  Total deposits     223,045     217,970     2.3 %     212,884     4.8 %
Total borrowings and other liabilities     1,064     785     35.5 %     4,724     -77.5 %
  Total Liabilities   $ $     218,755     2.4 %   $ 217,608     3.0 %
                                   
Total equity     23,554     22,570     4.4 %     21,543     9.3 %
Total Liabilities and Total Equity   $ $     241,325     2.6 %   $ 239,151     3.6 %
                                   
Book value per common share   $ $     4.37     3.3 %   $ 4.17     8.3 %
                                   

Contact Information