54% Increase in Earnings Driven by Growth and Margin Improvement and the nomination of Patricia M. Remch to the Bank’s Board
OAKLAND, Calif., April 29, 2019 (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 March 31, 2019, and the appointment of Patricia M. Remch to the Bank’s Board of Directors.
Ms. Remch joins the Bank’s Board after a successful 35-year career at the Federal Home Loan Bank of San Francisco where she served in successive positions of leadership including Senior Economist and Capital Market Specialist and most recently, SVP of Sales, Marketing and Product Development. “Patricia’s deep understanding of not only the Bay Area economy and housing markets, but the products and services that an important housing and multi-family financing partner such as the FHLB can provide, will prove invaluable to the Bank as we continue our growth,” stated William E. Purcell, Chairman of the Board. “As a long time Oakland resident and admirer of the work that Community Bank of the Bay has done with local businesses, real estate development and non-profits, I am excited to contribute to the Bank’s ongoing success and the positive impact it makes on our community,” added Patricia Remch.
2019 First-Quarter Financial Highlights
- Net income for the quarter ending March 31, 2019 totaled $782 thousand, an increase of $18 thousand from the prior quarter when earnings were augmented by a $239 thousand Bank Enterprise Award, and an increase of $274 thousand, or 54 percent, from the same quarter a year ago. Earnings per common share totaled $0.10 in the first quarter of 2019, compared to $0.10, in the prior quarter and $0.08 in the same quarter a year ago. The improvement in net income in the first quarter of 2019 compared to the same quarter a year ago reflects a $1.1 million increase in net interest income offset by a $150 thousand increase in loan loss reserve and $583 thousand increase in noninterest expenses.
- Total assets at March 31, 2019 were $424 million, an increase of $33.2 million, or an 8.5 percent increase from the prior quarter, and an increase of $91.4 million, or 27.5 percent, from a year ago. Average total earning assets for the quarter totaled $390 million, an increase of $15.9 million, compared with the prior quarter, and an increase of $92.1 million, or 30.9 percent, from the same quarter a year ago.
- Deposits totaled $356.5 million at March 31, 2019 and were up $30.1 million, or 9.2 percent, from the prior quarter, and up $73.1 million, or 25.8 percent, from a year ago. Deposit growth from the prior quarter was relatively evenly divided between $15.2 million of non-interest bearing deposits and $15 million of interest bearing, money market and time deposits.
- Loans totaled $330.5 million at March 31, 2019, an increase of $15.1 million, or 4.8 percent, from the prior quarter, and an increase of $70.3 million, or 27.0 percent, compared to the same quarter a year ago. $47.5 million of the last twelve month’s loan growth was in Commercial Real Estate while $17.7 million was in C & I lending.
- Non-performing assets decreased $311 thousand to $685 thousand in the first quarter and now represent 0.21 percent of total loans. The allowance for loan losses represents 1.10 percent of total loans at quarter end.
- Net interest margin for the first quarter totaled 4.22 percent compared with 4.19 percent for the prior quarter and 4.02 percent in the same quarter a year ago. The improved margin from the prior quarter was primarily due to a 6.2 percent growth in average loan balances outstanding, while the improvement from the same quarter a year ago is primarily due to the 30.9 percent increase in total earning assets.
- Total equity as of March 31, 2019 of $50.9 million increased $3.2 million, or 6.7 percent, from the prior quarter as the operating profit was augmented by $2.2 million of proceeds from the first closing of a stock sale announced on February 19, 2019. The Bank’s capital levels are well above FDIC “Well Capitalized” standards as of March 31, 2019, with a total capital ratio of 15.28 percent, a tier 1 capital ratio of 14.24 percent, and a common equity tier 1 capital ratio of 14.24 percent.
- Book value per common share totaled $6.04 as of March 31, 2019, an increase of 17.6 percent from the same quarter one year ago.
“We are pleased with the start to 2019,” said William S. Keller, President and Chief Executive Officer. “Core pre-tax earnings increased 48% from the prior year, and the continued strength of the Bay Area economy has driven solid growth in both loans and deposits. We are also extremely proud of the confidence that many members of our community have shown in us by purchasing stock in our Private Placement that closes on May 14, 2019. Their ongoing commitment to our bank is what makes our success possible.”
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 full service branches in Danville and San Mateo. It is also California’s first FDIC-insured certified Community Development Financial Institution and one of only three operating in the Bay Area 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 | |||||||||||||||||||||
| (Dollars in thousands, except earnings per share) | |||||||||||||||||||||
| INCOME STATEMENT | Three Months Ended | ||||||||||||||||||||
| 2019 | 2018 | Qtr over Qtr | 2018 | Qtr over Yr Ago Qtr | |||||||||||||||||
| March 31 | December 31 | % Change | March 31 | % Change | |||||||||||||||||
| Interest income | $ | 4,887 | $ | 4,620 | 5.8 | % | $ | 3,253 | 50.2 | % | |||||||||||
| Interest expense | 831 | 749 | 10.9 | % | 298 | 178.9 | % | ||||||||||||||
| Net interest income before provision | 4,056 | 3,871 | 4.8 | % | 2,955 | 37.3 | % | ||||||||||||||
| Provision for Loan Losses | 150 | 200 | -25.0 | % | - | n/m | |||||||||||||||
| Net interest income after provision | 3,906 | 3,671 | 6.4 | % | 2,955 | 32.2 | % | ||||||||||||||
| Non-interest income | 192 | 449 | -57.2 | % | 185 | 3.8 | % | ||||||||||||||
| Non-interest expense | 2,952 | 2,976 | -0.8 | % | 2,369 | 24.6 | % | ||||||||||||||
| Income before provision for income taxes | 1,146 | 1,144 | 0.2 | % | 771 | 48.6 | % | ||||||||||||||
| Provision for income taxes | 364 | 370 | -1.6 | % | 243 | 49.8 | % | ||||||||||||||
| Net income | $ | 782 | $ | 774 | 1.0 | % | $ | 528 | 48.1 | % | |||||||||||
| Less: preferred dividends | - | 11 | -100.0 | % | 20 | -100.0 | % | ||||||||||||||
| Net income available for common stockholders | $ | 782 | $ | 763 | 2.5 | % | $ | 508 | 53.9 | % | |||||||||||
| Basic earnings per common share | $ | 0.10 | $ | 0.10 | 0.9 | % | $ | 0.08 | 25.5 | % | |||||||||||
| Weighted average common shares outstanding | 8,145,160 | 8,017,396 | 6,639,718 | ||||||||||||||||||
| Return on average assets | 0.77 | % | 0.76 | % | 0.67 | % | |||||||||||||||
| Return on average common equity | 6.35 | % | 7.33 | % | 6.06 | % | |||||||||||||||
| COMMUNITY BANK OF THE BAY | |||||||||||||||||||||
| UNAUDITED SUMMARY FINANCIAL STATEMENTS | |||||||||||||||||||||
| (Dollars in thousands, except book value per share) | |||||||||||||||||||||
| BALANCE SHEET | At Period End | ||||||||||||||||||||
| 2019 | 2018 | Qtr over Qtr | 2018 | Year over Year | |||||||||||||||||
| ASSETS | March 31 | December 31 | % Change | March 31 | % Change | ||||||||||||||||
| Total cash and investments | $ | 87,025 | $ | 68,592 | 26.9 | % | $ | 67,086 | 29.7 | % | |||||||||||
| Loans, net of unearned income | 330,530 | 315,414 | 4.8 | % | 260,183 | 27.0 | % | ||||||||||||||
| Loan loss reserve | (3,624 | ) | (3,400 | ) | 6.6 | % | (3,505 | ) | 3.4 | % | |||||||||||
| Other assets | 9,925 | 10,065 | -1.4 | % | 8,685 | 14.3 | % | ||||||||||||||
| Total Assets | $ | 423,856 | $ | 390,671 | 8.5 | % | 332,449 | 27.5 | % | ||||||||||||
| LIABILITIES AND SHAREHOLDERS EQUITY | |||||||||||||||||||||
| Non-interest bearing demand deposits | 119,069 | 103,911 | 14.6 | % | 103,755 | 14.8 | % | ||||||||||||||
| Interest bearing deposits | 237,397 | 222,442 | 6.7 | % | 179,618 | 32.2 | % | ||||||||||||||
| Total deposits | 356,466 | 326,353 | 9.2 | % | 283,373 | 25.8 | % | ||||||||||||||
| Total borrowings and other liabilities | 16,523 | 16,642 | -0.7 | % | 10,900 | 51.6 | % | ||||||||||||||
| Total Liabilities | $ | 372,989 | $ | 342,995 | 8.7 | % | $ | 294,273 | 26.7 | % | |||||||||||
| Total equity | 50,867 | 47,676 | 6.7 | % | 38,176 | 33.2 | % | ||||||||||||||
| Total Liabilities and Total Equity | $ | 423,856 | $ | 390,671 | 8.5 | % | $ | 332,449 | 27.5 | % | |||||||||||
| Book value per common share | $ | 6.04 | $ | 5.82 | 3.8 | % | $ | 5.14 | 17.6 | % | |||||||||||
Media Contacts: William S. Keller, President & CEO, 510-433-5404 wkeller@BankCBB.com