OAKLAND, CA – 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 September 30, 2019.
2019 Third-Quarter Financial Highlights
- Net income available to shareholders for the quarter ending September 30, 2019 totaled $1,298 thousand, an increase of $368 thousand from the prior quarter, and an increase of $793 thousand from the same quarter a year ago.
- 2019 third quarter earnings were augmented by a Bank Enterprise Award of $245 thousand. This marks the fourteenth consecutive year in which the Bank has been recognized for its work in building economically sustainable communities by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund.
- Pre-tax Earnings excluding CDFI Awards, gains on SBA loan sales and Loan Loss Provisions totaled $1,841 thousand for the quarter ending September 30, 2019, an increase of $1,059 thousand, or 135 percent from the same quarter a year ago.
- Earnings per common share totaled $0.15 in the third quarter of 2019, compared to $0.11, in the prior quarter and $0.08 in the same quarter a year ago.
- The strong improvement in operating net income in the third quarter of 2019 compared to the same quarter a year ago reflects a $1.2 million increase in net interest income offset by a $176 thousand increase in noninterest expenses and a $200 thousand increase in the provision for loan loss reserve.
- Total assets at September 30, 2019 were $491.5 million, an increase of $37.2 million, or an 8.2 percent increase from the prior quarter, and an increase of $81.2 million, or 19.8 percent from a year ago. Average total earning assets for the quarter totaled $434.9 million, an increase of $17.3 million, or 4.1 percent, compared with the prior quarter, and an increase of $62.1 million, or 16.7 percent, from the same quarter a year ago.
- Loans totaled $395.3 million at September 30, 2019, an increase of $35.2 million, or 9.6 percent, from the prior quarter, and an increase of $92.1 million, or 30.4 percent, compared to the same quarter a year ago. The last twelve month’s loan growth was generally distributed among four key categories with $26.3 million in Commercial Real Estate, $26.9 million in Construction, $18.7 million in Commercial & Industrial and $22.2 million in participations or acquired loans, all of which are fully guaranteed by federal or state agencies.
- Non-performing assets totaled $738 thousand at September 30, 2019 and now represent 0.19 percent of total loans. The allowance for loan losses represents 1.03 percent of total loans at quarter end and 1.12 percent of loans not guaranteed by federal or state agencies.
- Deposits totaled $400.7 million at September 30, 2019 and were up $35.2 million, or 9.6 percent from the prior quarter, and up $46.3 million, or 13.1 percent from a year ago. Deposit growth from the prior quarter was highlighted by an $18.5 million increase in non-interest bearing deposits, an $8.4 million increase in money market deposits, and an $8.3 million increase in time deposits.
- Net interest margin for the third quarter totaled 4.36 percent compared with 4.17 percent for the prior quarter and 3.77 percent in the same quarter a year ago. The improvement in margin from the prior year was
primarily due to 53 basis increase in the average yield on loans versus a 23 basis point increase in the overall Cost of Funds.
- Total equity as of September 30, 2019 of $54.8 million increased $1.4 million, or 2.6 percent, from the prior quarter. The Bank’s capital levels are well above FDIC “Well Capitalized” standards as of September 30, 2019, with a total capital ratio of 13.49 percent, a tier 1 capital ratio of 12.54 percent, and a common equity tier 1 capital ratio of 12.54 percent.
- Book value per common share totaled $6.31 as of September 30, 2019, an increase of 17.9 percent from the same quarter one year ago.
“We are very pleased with the bank’s improving performance, said William S. Keller, President and Chief Executive Officer. “We are starting to realize the profitability that we hoped for when we embarked on a growth plan that has almost doubled the size of the Bank since 2016. While the third quarter often represents a seasonal high for a number of our clients, our improved operating efficiency combined with the continued economic strength of the markets we serve position us well for the remainder of 2019.
We are also excited about the planned relocation of our Danville office pending regulatory approval. We believe our new office at 740 Camino Ramon will continue to provide us with excellent client accessibility and general visibility while offering better cost efficiencies and the ability to accommodate the increased staffing that our growing bank requires.”
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 California. 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.
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.
Media Contacts: William S. Keller, President & CEO, 510-433-5404 wkeller@BankCBB.com