Community Bank of the Bay Announces Record Operating Income for First Quarter 2016
/EINPresswire.com/ -- OAKLAND, CA -- (Marketwired) -- 04/29/16 -- 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
--------------------------------------------------------
Year
Qtr over over
2016 2015 Qtr 2015 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
------------------------------------------------------
Year
Qtr over over
2016 2015 Qtr 2015 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%
Media Contacts:
William S. Keller
President & CEO
510-433-5404
wkeller@BankCBB.com
