Community Bank of the Bay Announces Second Quarter 2015 Results

OAKLAND, CA--(Marketwired - Aug 4, 2015) - 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
		2015			2015			Qtr over Qtr		2014			Year over 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
				2015				2015				Qtr over Qtr		2014				Year over 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%