Community Bank of the Bay Announces 2018 Third-Quarter Results

OAKLAND, Calif., Oct. 31, 2018 (GLOBE NEWSWIRE) — Community Bank of the Bay (CBYAA), a San Francisco Bay Area commercial bank with full service offices in Oakland, Danville and San Mateo, reported unaudited financial results for its quarter ending September 30, 2018.

2018 Third-Quarter Financial Highlights

• Net income for the quarter ending September 30, 2018 totaled $525 thousand, a decrease of $473 thousand from the prior quarter, and a decrease of $39 thousand, or 6.9 percent, from the same quarter a year ago.  Earnings per common share totaled $0.08 in the third quarter of 2018, compared to $0.15 in the prior quarter and $.08 in the same quarter a year ago.  Third quarter earnings included a $300 thousand one-time operations loss, while both the prior and year ago quarters included a Bank Enterprise Award of $233 and 227 thousand respectively that is granted annually by the Community Development Fund of the US Treasury. 
• Total assets at September 30, 2018 were $410 million, an increase of $36.7 million, or 9.8 percent, from the prior quarter, and an increase of $121.2 million, or 41.9 percent, from a year ago.  Average earning assets for the quarter reached $340.2 million, an increase of $27 million, or 8.6 percent, compared with the prior quarter, and an increase of $98.3 million, or 40.1 percent, from the same quarter a year ago.
• Deposits totaled $354.5 million at September 30, 2018 and were up $36.3 million, or 11.4 percent, from the prior quarter, and up $104.3 million, or 41.7 percent, from a year ago.  $28 million of third quarter deposit growth was directly attributed to what the Bank considers seasonal, and therefore temporary in nature.
• Loans totaled $303.3 million at September 30, 2018, an increase of $8.1 million, or 2.8 percent, from the prior quarter, and an increase of $87.1 million, or 40.3 percent, compared to the same quarter a year ago.
• Non-performing assets decreased $941 thousand to $1.3 million in the third quarter and now represent 0.43 percent of total loans.  The allowance for loan losses represents 1.10 percent of total loans at quarter end.         
• Net interest margin for the third quarter totaled 4.13 percent compared with 4.24 percent for the prior quarter and 4.37 percent in the same quarter a year ago.  The decrease in margin from both the prior quarter and year primarily relates to an overall increase in deposit costs.
• Total equity as of September 30, 2018 of $39.7 million increased $461 thousand, or 1.2 percent, from the prior quarter.  The Bank’s capital levels are well above FDIC “Well Capitalized” standards as of September 30, 2018, with a total capital ratio of 13.75 percent, a tier 1 capital ratio of 12.66 percent, and a common equity tier 1 capital ratio of 11.37 percent.  Total equity includes $4.1 million of Preferred Stock that the Bank redeemed after the quarter as part of a previously announced $11.5 million capital raise.
• Book value per common share totaled $5.35 as of September 30, 2018, an increase of 5.9 percent from the same quarter one year ago.    

“We are pleased with the bank’s current position,” said William S. Keller, President, and Chief Executive Officer.  “Core pre-tax earnings, excluding the operations loss and Bank Enterprise Awards, increased 57% from the prior year.  We are adding quality clients that are driving growth in both our loan and deposit portfolios, and the Bay Area markets we serve remain strong.  These factors allowed us to raise $11.5 million from institutional investors subsequent to the end of the quarter.  After redeeming our Preferred Stock we recorded a net $7.4 million increase in capital, and we continue to review our organization and personnel to ensure both can support the additional growth that the new capital makes possible.”

About Community Bank of the Bay

Community Bank of the Bay (OTCBB: CBYAA) is headquartered in Oakland and 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, with full service offices in Oakland, Danville and San Mateo.  It is also California’s first FDIC-insured certified Community Development Financial Institution and one of only four now operating in the Northern California market.  The bank is recognized for establishing the Bay Area Green Fund to provide dedicated 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.

Media Contacts: 
William S. Keller
President & CEO
510-433-5404
[email protected]

COMMUNITY BANK OF THE BAY
UNAUDITED SUMMARY FINANCIAL STATEMENTS
(Dollars in thousands, except earnings per share)
	INCOME STATEMENT			Three Months Ended
				2018				2018				Qtr over Qtr			2017				Qtr over Yr Ago Qtr
				September 30				June 30				% Change			September 30				% Change
Interest income				$	4,246			$	3,790			12.0	%		$	2,889			47.0	%
Interest expense					709				483			46.8	%			224			216.5	%
Net interest income before provision					3,537				3,307			7.0	%			2,665			32.7	%
Provision for Loan Losses					–				100							100			-100.0	%
Net interest income after provision					3,537				3,207			10.3	%			2,565			37.9	%
Non-interest income					186				866			-78.5	%			394			-52.8	%
Non-interest expense					2,941				2,609			12.7	%			2,019			45.7	%
Income before provision for income taxes					782				1,464			-46.6	%			940			-16.8	%
Provision for income taxes					257				466			-44.8	%			376			-31.6	%
Net income				$	525			$	998			-47.4	%		$	564			-6.9	%
Less: preferred dividends					20				20			0.0	%			20			0.0	%
Net income available for common stockholders				$	505			$	978			-48.4	%		$	544			-7.2	%
Basic earnings per common share				$	0.08			$	0.15			-48.4	%		$	0.08			-7.4	%
Weighted average common shares outstanding					6,649,040				6,641,261							6,635,179
Return on average assets					0.52	%			1.11	%						0.76	%
Return on average common equity					5.71	%			11.29	%						6.55	%

	COMMUNITY BANK OF THE BAY
	UNAUDITED SUMMARY FINANCIAL STATEMENTS
	(Dollars in thousands, except book value per share)
	BALANCE SHEET			At Period End
					2018				2018			Qtr over Qtr				2017			Year over Year
	ASSETS			September 30				June 30				% Change			September 30				% Change
Total cash and investments				$	100,408			$	72,261			39.0	%		$	67,096			49.6	%
Loans, net of unearned income					303,259				295,128			2.8	%			216,108			40.3	%
Loan loss reserve					(3,331	)			(3,666	)		-9.1	%			(3,403	)		-2.1	%
Other assets					9,848				9,715			1.4	%			9,178			7.3	%
Total Assets					410,184				373,438			9.8	%			288,979			41.9	%
	LIABILITIES AND SHAREHOLDERS EQUITY
Non-interest bearing demand deposits					116,736				128,815			-9.4	%			110,482			5.7	%
Interest bearing deposits					237,738				189,376			25.5	%			139,716			70.2	%
Total deposits					354,474				318,191			11.4	%			250,198			41.7	%
Total borrowings and other liabilities					16,031				16,029			0.0	%			1,175			1264.3	%
Total Liabilities				$	370,505			$	334,220			10.9	%		$	251,373			47.4	%
Total equity					39,679				39,218			1.2	%			37,606			5.5	%
Total Liabilities and Total Equity				$	410,184			$	373,438			9.8	%		$	288,979			41.9	%
Book value per common share				$	5.35			$	5.29			1.1	%		$	5.05			5.9	%