Community Bank of the Bay Announces Earnings for 2013 Second Quarter

OAKLAND, CA--(Marketwired - Jul 22, 2013) - Community Bank of the Bay (OTCBB: CBYAA), a San Francisco Bay Area commercial bank with locations in Oakland, Danville and San Jose, reported Net Income of $333 thousand for the quarter ended June 30, 2013, including a deferred tax asset valuation of $89 thousand.

2013 Second Quarter Financial Highlights

• Net Income for the 2013 Second Quarter totaled $333 thousand, or $0.08 earnings per share. Operating Income net of the deferred tax asset totaled $244 thousand, or $0.06 earnings per share, an increase of $27 thousand, or 12 percent, from $217 thousand reported in the 2012 Fourth Quarter.
  
  
• Total assets at June 30, 2013 were $170.5 million compared to $156.2 million at June 30, 2012. Average earning assets for the 2013 first quarter reached $139.5 million, an increase of $21.1 million, or 17.9 percent, compared with the 2012 first quarter.
  
  
• Deposits increased $9.0 million to $148.2 million in the Second Quarter of 2013, and represented a 6.5 percent increase from the prior quarter. Deposits increased $16.0 million or 8.6 percent from the prior year.
  
  
• Loans increased $8.0 million to $119.1 million in the Second Quarter of 2013, and represented a 7.2 percent increase from the prior quarter. Loans increased $20.0 million or 20.2 percent from the prior year.
  
  
• Total Non-performing Assets including Non-Accrual Loans, OREO and Other Assets Owned decreased $881 thousand to $3.1 million in the Second Quarter, and represent 2.63 percent of Total Loans. During the quarter the bank fully disposed of its OREO and Other Asset Owned resulting in a charge of $129 thousand.
  
  
• Net Interest Margin decreased twenty-seven basis points to 4.27 percent, compared with 4.55 percent for the 2013 First Quarter and decreased fifty-one basis points from 4.78 percent for the 2012 Second Quarter.
  
  
• Capital Levels remain well above FDIC "Well Capitalized" standards. Second Quarter 2013 Equity of $17.9 million resulted in Tier 1 Leverage of 11.04 percent and Tier 1 Risk-Based and Total Risk-Based Capital Ratios of 14.93 percent and 16.19 percent respectively.
  
  

"We are pleased with the Bank's second quarter financial results which saw increases in operating profits, deposits and loans outstanding as well as improvement in asset quality. These results reflect both the continued efforts of our team and the improving local economy," stated William S. Keller, President and Chief Executive Officer.

"In addition we successfully undertook a number of other important initiatives that help position the bank for long-term success, including opening our new Oakland banking office at 180 Grand Avenue, adding veteran bankers Jack Hounslow and Jim Mayer to our board of directors, hiring experienced mid-peninsula banker Mark Roach to manage our Silicon Valley Region and the disposition of the bank's OREO and Other Assets Owned.

"In the second half of the year we anticipate accelerating benefits from improved operating efficiencies and a growing earning asset base. Loans outstanding entering the third quarter were $5.4 million higher than average outstandings in the first six months and near term loan demand continues to be strong.

"At a time when some of the largest banks are trying to position themselves as 'community banks' it is important that we continue to focus on our core mission to serve the needs of local businesses. We believe, and our clients agree, that a true community bank can be a valuable partner in the long term success of these businesses."

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 and San Jose, CA. It is also one of only two certified Community Development Financial Institutions ("CDFI") in the San Francisco Bay Area. The bank is recognized for establishing the Bay Area Green Fund to provide financing to sustainable businesses and supports environmentally responsible values. Additional information on the bank is available online at www.communitybankbay.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.