OAKLAND, CA--(Marketwired - Nov 10, 2015) - 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 September 30, 2015.

Third Quarter Financial Highlights

• Pre-tax operating income for the quarter ending September 30, 2015 totaled $765 thousand, a decrease of $28 thousand, or 3.5 percent, from $793 thousand reported in the same period a year ago. Net profit after tax totaled $446 thousand, or $0.10 earnings per common share, compared to $632 thousand reported in 2014. 
  
  
• YTD pre-tax operating income as of September 30, 2015 totaled $2.1 million, an increase of $517 thousand, or 32.5 percent, from $1.6 million reported in the same period a year ago. Net profit after tax totaled $1.2 million, compared to $1.2 million reported in 2014. The YTD net profit decrease of $20 thousand was entirely due to a $537 thousand increase in estimated income taxes. 
  
  
• Total assets at September 30, 2015 were $256.0 million, an increase of $64.0 million, or 33.3 percent from $192.0 million at September 30, 2014. Average earning assets for third quarter of 2015 reached $236.7 million, an increase of $56.4 million, or 31.3 percent, compared with $180.3 million in 2014. 
  
  
• Deposits increased $5.8 million, or 2.6 percent to $232.6 million in the third quarter of 2015 compared to $226.8 million at June 30, 2015. Deposits increased $65.7 million or 39.0 percent from the third quarter of 2014. 
  
  
• Loans increased $12.2 million, or 6.8 percent to $191.7 million in the third quarter of 2015 compared to $179.5 million at June 30, 2015. Loans increased $38.9 million or 25.5 percent from the third quarter of 2014. 
  
  
• Non-performing assets increased $1.0 million to $3.4 million compared to the prior quarter, and increased by $1.1 million from $2.3 million from the same quarter a year ago. Non-performing assets now represent 1.77 percent of total loans. 
  
  
• Net interest margin for the third quarter decreased 0.24 basis point to 4.05 percent, compared with 4.29 percent for the prior quarter and decreased 0.52 basis points from 4.58 percent for the 2014 third quarter.
  
  
• Capital levels remain well above FDIC "Well Capitalized" standards. September 30, 2015 Equity of $22.5 million increased 9.5 percent from the prior year and resulted in Tier 1 Leverage of 9.00 percent, and Tier 1 Capital and Total Capital ratios of 10.52 percent and 11.77 percent respectively.
  
  

"The Bank continued to show a number of important positive trends in the third quarter. Specifically, this is the fourth consecutive quarter where the Bank reported records in the three key balance sheet metrics of total assets, loans outstanding and deposits. These client driven increases reflect the market's acceptance of our relationship-oriented banking philosophy," said William S. Keller, President and Chief Executive Officer. "As further recognition of our efforts, 2015 marks the sixth consecutive year where we have earned the maximum Bank Enterprise Award granted by the US Treasury's CDFI Fund for the positive community development impacts associated with supplying credit to worthy small and medium sized businesses and non-profit organizations."

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
		2015				2015				Qtr over Qtr			2014				Year over Year
		September 30				June 30				% Change			September 30				% Change
Interest income		$	2,617			$	2,664			-1.8	%		$	2,244			16.6	%
Interest expense			199				205			-2.9	%			166			19.9	%
	Net interest income before provision		2,418				2,459			-1.7	%			2,078			16.4	%
Provision for Loan Loss Reserve			50				150			-66.7	%			100			-50.0	%
	Net interest income after provision		2,368				2,309			2.6	%			1,978			19.7	%
Non-interest income			436				305			43.0	%			565			-22.8	%
Non-interest expense			2,039				2,042			-0.1	%			1,750			16.5	%
	Income before provision for income taxes		765				572			33.7	%			793			-3.5	%
Provision for income taxes			319				231			38.1	%			161			98.1	%
	Net income	$	446			$	341			30.8	%		$	632			-29.4	%
Less: preferred dividends			20				20			0.0	%			20			0.0	%
	Net income available for common stockholders	$	426			$	321			32.7	%		$	612			-30.4	%
Basic earnings per common share			0.10			$	0.08			32.3	%		$	0.15			-31.1	%
Common shares outstanding EP			4,232,435				4,220,795							4,191,443
Return on average assets			1.23	%			0.54	%						0.73	%
Return on average common equity			9.63	%			7.38	%						8.83	%

COMMUNITY BANK OF THE BAY
UNAUDITED SUMMARY FINANCIAL STATEMENTS
(In thousands except earnings per share)
BALANCE SHEET		Three Months Ended
		2015				2015				Qtr over Qtr			2014				Year over Year
ASSETS		September 30				June 30				% Change			September 30				% Change
Total cash and investments		$	59,523			$	69,240			-14.0	%		$	33,541			77.5	%
Loans, net of unearned income			191,736				179,480			6.8	%			152,822			25.5	%
	Loan loss reserve		(3,129	)			(3,000	)		4.3	%			(2,562	)		22.1	%
Other real estate owned			-				-			0.0	%			-			-
Other assets			7,836				7,522			4.2	%			8,217			-4.6	%
	Total Assets		255,966				253,242			1.1	%			192,018			33.3	%
LIABILITIES AND SHAREHOLDERS EQUITY
Non-interest bearing deposits			81,415				81,314			0.1	%			54,317			49.9	%
Interest bearing deposits			151,225				145,472			4.0	%			112,551			34.4	%
	Total deposits		232,640				226,786			2.6	%			166,868			39.4	%
Total borrowings and other liabilities			860				4,560			-81.1	%			4,632			-81.4	%
	Total Liabilities	$	233,500			$	231,346			0.9	%		$	171,500			36.2	%
Shareholders equity			22,466				21,896.0			2.6	%			20,517			9.5	%
Total Liabilities and Shareholders Equity		$	255,966			$	253,242			1.1	%		$	192,017			33.3	%
Book value per common share		$	4.35			$	4.23			2.9	%		$	3.85			13.0	%