WALNUT CREEK, Calif., Oct. 27, 2014 (GLOBE NEWSWIRE) -- Bay Commercial Bank (OTCQB:BCML) (the "Bank") today announced its third quarter 2014 operating results.
The Bank reported total assets as of September 30, 2014 of $503.5 million including loans outstanding of $339.4 million compared to September 30, 2013 total assets of $327.2 million and total loans outstanding of $252.7 million. At September 30, 2014, total deposits were $414.2 million compared to total deposits of $268.3 million at September 30, 2013. The Bank's net operating income for the third quarter 2014 was $1,556,000 or $0.33 per share compared to net income for the same period in 2013 of $634,000, or $0.13 per share. The increase in net operating income for the third quarter 2014 compared to the same period in 2013 was related to higher net interest income partially offset by higher operating costs, and higher non-interest revenue as a result of the recognition of additional bargain purchase gain related to the merger that closed in the second quarter 2014.
For the first nine months of 2014, the Bank reported net income of $3,900,000 compared to net income of $1,901,000 for the same period in 2013. For the most recent nine month period, the net income to shareholders was $0.82 per share, compared to $0.39 per share for the same period of 2013. The increase in operating income for the nine month periods ended September 30, 2014 compared to the same period in 2013 was primarily the result of higher net interest income partially offset by higher operating expenses, higher non-interest revenue as a result of the recognition of the bargain purchase gain, and higher loss provisions in 2014 to cover higher charge-offs as compared to 2013.
George J. Guarini, Chief Executive Officer of the Bank, stated, "While we are very pleased with our operating results, we place great emphasis on achieving economies of scale. To that end, we continue to see organic and strategic growth opportunities ahead. We are confident we are well positioned to take advantage of those opportunities. Having fully integrated our third acquisition, we believe in the combination of organic and strategic emphasis, while maintaining a vigilant eye toward asset quality."
Bay Commercial Bank offers a full-range of loan, including SBA and USDA guaranteed loans, and deposit products and services to businesses and their affiliates throughout the Greater Bay Area. Bay Commercial Bank also offers business escrow services and facilitates tax free exchanges through its Bankers Exchange Division. Its full service branches in California are located at 500 Ygnacio Valley Road, Walnut Creek; 155 Grand Avenue, Oakland; 3895 E. Castro Valley Blvd, Castro Valley; 700 E. El Camino Real, Mountain View; 960 School Street, Napa; 22 W. Yokuts Ave, Stockton; and 4426 E. State Highway 88 on Waterloo Road, Stockton.
The Bank has made forward-looking statements in this Press Release that are subject to risks and uncertainties. Forward-looking statements include information concerning the Bank's possible or assumed future results of operations. Also, when the Bank uses such words as "believe," "expect," "anticipate," "plan," "could," "intend," or similar expressions, it is making forward-looking statements. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Bank's actual results could differ materially from those expressed in any forward-looking statements as a result of certain factors, including (1) changes in interest rates, (2) significant changes in banking laws or regulations, (3) increased competition in the markets served by the entities, (4) other-than-expected credit losses due to adverse changes in the economy, (5) earthquake or other natural disasters impacting the condition of real estate collateral, (6) unexpected difficulties in the post-merger integration, and (7) legal, tax and accounting changes. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
| Selected Financial Data | |||||
| September 30, 2014 | |||||
| Quarter | Quarter | Year to | Year to | Year | |
| Ending | Ending | Date | Date | Ending | |
| Balance Sheet | 9/30/2014 | 9/30/2013 | 9/30/2014 | 9/30/2013 | 12/31/2013 |
| (dollars in thousands) | |||||
| Total Assets | $ 503,549 | $ 327,181 | $ 503,549 | $ 327,181 | $ 342,304 |
| Total Loans | 339,386 | 252,743 | 339,386 | 252,743 | 254,178 |
| Total Deposits | 414,202 | 268,348 | 414,202 | 268,348 | 286,464 |
| Shareholders' Equity | 56,573 | 52,572 | 56,573 | 52,572 | 52,322 |
| Operating Results | |||||
| (dollars in thousands) | |||||
| Interest income | $ 5,472 | $ 3,758 | 13,868 | 10,899 | $ 14,915 |
| Interest expense | 704 | 508 | 1,868 | 1,564 | 2,080 |
| Net interest income | 4,768 | 3,250 | 12,000 | 9,335 | 12,835 |
| Provision for loan losses | 169 | 112 | 1,038 | 258 | 348 |
| Non-interest income | 897 | 154 | 3,526 | 483 | 628 |
| Non-interest expense | 3,186 | 2,207 | 9,760 | 6,317 | 8,526 |
| Net Income before tax | 2,310 | 1,085 | 4,728 | 3,243 | 4,589 |
| Income tax | 754 | 451 | 828 | 1,342 | 1,899 |
| Net Income | $ 1,556 | $ 634 | $ 3,900 | $ 1,901 | $ 2,690 |
| Ratios and Data | |||||
| Net interest margin | 3.96% | 4.18% | 3.87% | 4.08% | 4.07% |
| Efficiency ratio | 56.2% | 64.8% | 62.9% | 64.3% | 63.3% |
| Leverage capital ratio | 10.7% | 16.8% | 10.7% | 16.8% | 15.7% |
| Income per share - basic | $ 0.33 | $ 0.13 | $ 0.82 | $ 0.39 | $ 0.56 |
| Common stock | 4,759,991 | 4,830,457 | 4,759,991 | 4,830,457 | 4,811,512 |
| Income per share - diluted | $ 0.33 | $ 0.13 | $ 0.82 | $ 0.39 | $ 0.54 |
| Common stock - diluted | 4,776,854 | 4,830,457 | 4,776,854 | 4,830,457 | 4,971,213 |
| Book value per share | $ 11.89 | $ 10.88 | $ 11.89 | $ 10.88 | $ 10.87 |