OAKLAND, CA -- (Marketwired) -- 10/30/14 -- 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 net income of $632 thousand for the quarter ended September 30, 2014.
2014 Third Quarter Financial Highlights
- Net income after tax for the 2014 Third Quarter totaled $632 thousand, or $0.14 earnings per common share, a 66% increase over the 2013 Third Quarter. Pre-tax operating income totaled $793 thousand, an increase of $474 thousand, or 149 percent, from $318 thousand reported in the 2013 Third Quarter.
- Total assets at September 30, 2014 were $192.0 million compared to $173.3 million at September 30, 2013. Average earning assets for the 2014 Third Quarter reached $180.3 million, an increase of $30.0 million, or 20.0 percent, compared with $150.3 the 2013 Third Quarter.
- Deposits decreased $2.6 million to $166.9 million from the prior quarter, and increased $16.3 million or 10.9 percent from the prior year.
- Loans increased $7.5 million to $152.8 million from the prior quarter, and increased $23.8 million or 18.5 percent from the prior year.
- Non-performing assets, including Other Real Estate Owned decreased $133 thousand to $3.3 million in the Third Quarter compared to Second Quarter, and represent 2.1 percent of total loans.
- Net interest margin increased fifty-three basis points to 4.58 percent, compared with 4.05 percent for the 2014 Second Quarter and decreased twenty-one basis points from 4.79 percent for the 2013 Third Quarter.
- Capital levels remain well above FDIC "Well Capitalized" standards. Third Quarter 2014 Equity of $20.5 million increased 11.7 percent from the prior year and resulted in Tier 1 Leverage of 10.92 percent and Tier 1 Risk-Based and Total Risk-Based Capital Ratios of 12.47 percent and 13.72 percent respectively.
"The year's strong loan growth and robust loan pipeline are contributing to recurring operating earnings and the goal of a record earnings year. Year to date pre tax operating income, excluding the Bank Enterprise Award, has increased 58% from 2013. We are also proud to announce that during the third quarter of 2014, Community Bank of the Bay was awarded a $355 thousand Bank Enterprise Award by the Community Development Financial Institution division of the U.S. Treasury Department. This is the sixth year in a row that Community Bank of the Bay has received the maximum award made available by the Fund, and is a testament to our commitment to our clients and communities," said William S. Keller, President and Chief Executive Officer. "With our continued improvement in profitability, we have been advised by our tax advisors that our bank has now fully utilized its deferred tax benefits relating to its net operating loss carryforwards and will begin incurring a tax obligation. They have recommended that we recast 2014 operating results using an estimated effective tax rate of 20% for the full year. The attached financial statements reflect this tax adjustment."
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 certified depository 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 2013 Year Over
STATEMENT 2014 Three Months Year
Three Months Ended Ended Change
------------------------------------ ------------ ---------
September 30 June 30 March 31 September 30 %
Interest
income $ 2,245 $ 2,006 $ 1,965 $ 1,935 16.0%
Interest
expense 166 185 168 122 36.1%
------------ ---------- ---------- ------------ ---------
Net
interest
income
before
provision 2,079 1,821 1,797 1,813 14.7%
Provision for
Loan Loss
Reserve 100 50 50 219 -54.3%
------------ ---------- ---------- ------------ ---------
Net
interest
income
after
provision 1,979 1,771 1,747 1,594 24.2%
Non-interest
income 564 348 360 433 30.3%
Non-interest
expense 1,750 1,770 1,661 1,709 2.4%
------------ ---------- ---------- ------------ ---------
Income
before
provision
for income
taxes 793 349 446 318 149.4%
Provision for
income taxes 161 71 90 (63) -355.6%
------------ ---------- ---------- ------------ ---------
Net income $ 632 $ 278 $ 356 $ 381 65.9%
============ ========== ========== ============ =========
Less:
preferred
dividends 32 32 32 32 0.0%
------------ ---------- ---------- ------------ ---------
Net income
avaiable
for common
stockholde
rs $ 600 $ 246 $ 324 $ 349 71.9%
============ ========== ========== ============ =========
Basic earnigs
per common
share $ 0.14 $ 0.06 $ 0.08 $ 0.08 70.9%
Weighted
average
common
shares
outstanding 4,196,268 4,196,268 4,172,268 4,172,268
Return on
average
assets 1.31% 0.54% 0.70% 0.85%
Return on
average
common
equity 15.3% 6.4% 8.5% 10.3%
COMMUNITY BANK OF THE BAY
UNAUDITED SUMMARY FINANCIAL STATEMENTS
(In thousands except earnings per share)
BALANCE SHEET 2013 Year Over
2014 Three Months Year
Three Months Ended Ended Change
------------------------------------ ------------ ---------
ASSETS September 30 June 30 March 31 September 30 %
Total cash
and
investments $ 33,540 $ 41,687 $ 58,717 $ 39,989 -16.1%
Loans, net of
unearned
income 152,822 145,338 130,230 128,984 18.5%
---------
Loan loss
reserve (2,562) (2,539) (2,505) (2,544) 0.7%
Other real
estate owned 971 - - -
Other assets 7,246 6,916 6,847 6,897 5.1%
------------ ---------- ---------- ------------ ---------
Total
Assets 192,017 191,402 193,289 173,326 10.8%
LIABILITIES AND
SHAREHOLDERS EQUITY
Non-interest
bearing
deposits 54,317 58,875 60,123 60,140 -9.7%
Intrest
bearing
deposits 112,551 110,559 109,223 90,392 24.5%
------------ ---------- ---------- ------------ ---------
Total
deposits 166,868 169,434 169,346 150,532 10.9%
Total
borrowings
and other
liabilities 4,632 2,082 4,493 4,427 4.6%
------------ ---------- ---------- ------------ ---------
Total
Liabilitie
s $ 171,500 $ 171,516 $ 173,839 $ 154,959 10.7%
============ ========== ========== ============ =========
Shareholders
equity 20,517 19,886 19,449 18,367 11.7%
------------ ---------- ---------- ------------ ---------
Total
Liabilities
and
Shareholders
Equity $ 192,017 $ 191,402 $ 193,288 $ 173,326 10.8%
============ ========== ========== ============ =========
Book value
per common
share $ 3.92 $ 3.77 $ 3.69 $ 3.43 14.4%
Media Contacts:
William S. Keller
President & CEO
510-433-5404
wkeller@BankCBB.com
