Community Bank of the Bay Earns a Record $4.07 Million for 2019; Loans Grow 27% and Deposits Increase 22% Year-Over-Year

Nachrichtenquelle: globenewswire
03.02.2020, 15:00  |  101   |   |   

OAKLAND, Calif., Feb. 03, 2020 (GLOBE NEWSWIRE) -- Community Bank of the Bay (OTCPink: CBYAA), a San Francisco Bay Area commercial bank with full-service offices in Oakland, Danville and San Mateo, today reported that net income available to common shareholders increased 47.8% to a record $4.07 million for the year 2019, compared to $2.76 million in 2018.  For the fourth quarter of 2019, net income available to common shareholders increased 39.0% to $1.06 million, compared to $764,000 in the fourth quarter a year ago.  Improved asset quality, including a lower loan loss provision, top line revenue growth, and loan and deposit growth contributed to record profitability for the year.  All financial results are unaudited.

“Our 2019 financial results reflect the strength and stability of our banking franchise and the markets we serve.  We are achieving the benchmarks of our growth plan that saw us double the size of the Bank since 2016,” said William S. Keller, President and CEO.  “As a result, we produced record net income for the year, while maintaining excellent asset quality and a healthy net interest margin.  We generated 27% year-over-year loan growth and 22% deposit growth due to the excellent work of our lending and deposit gathering teams.  Our strong balance sheet growth is also reflective of how our unique twenty-two-year history, starting out as California’s first FDIC-insured Certified Development Financial Institution (“CDFI”), resonates with today’s business and non-profit leaders.  As we enter 2020, we are well positioned to deliver service to our clients, support for our communities and return for our shareholders.”

Fourth Quarter 2019 Financial Highlights (at or for the period ended December 31, 2019)

  • Net income increased 39.0% to $1.06 million in the fourth quarter of 2019 compared to $764,000 in the fourth quarter a year ago.  Earnings per share for the quarter improved to $0.12 compared to $0.10 in the fourth quarter a year ago.

  • Pre-tax core earnings excluding gains on SBA loan sales, Bank Enterprise Awards and loan loss provisions, increased $495,000, or 44.6% to totaled $1.61 million in the fourth quarter, compared to $1.11 million in the fourth quarter a year ago.

  • Net interest income increased 20.5% to $4.66 million in the fourth quarter of 2019, compared to $3.87 million in the fourth quarter a year ago.  The strong improvement in operating net income in the fourth quarter of 2019 compared to the same quarter a year ago reflects a $1.16 million increase in net interest income and a $150,000 decrease in the provision for loan loss reserve, offset by a $331,000 increase in noninterest expenses.

  • Net interest margin for the fourth quarter totaled 4.02% compared with 4.36% for the prior quarter and 4.06% in the fourth quarter a year ago.  The reduction in margin from the prior quarter was primarily due to 34 basis point decrease in the average yield on earning assets, while the cost of funds remained steady compared to the prior quarter.   

  • Net loans increased $84.3 million, or 26.7%, to $399.7 million at year-end, compared to $315.4 million a year ago, and grew $4.4 million, or 1.4%, compared to $395.3 million three months earlier.  The last twelve month’s loan growth was generally distributed among four key loan categories with $22.8 million in commercial real estate loans, $22.6 million in construction loans, $14.1 million in commercial and industrial loans and $21.1 million in participations or acquired loans, all of which are fully guaranteed by federal or state agencies. 

  • Total deposits increased $72.9 million, or 22.3% to $399.2 million at December 31, 2019, compared to a year ago. Deposits decreased when compared to $400.8 million three months earlier, primarily due to normal fourth quarter seasonality in DDA accounts, as clients take year-end distributions and prepare for other tax related events. Non-interest bearing deposits increased 28.7% year over year and represent 33.5% of total deposits at year end. 

  • Assets totaled $493.4 million at December 31, 2019, a $102.7 million increase, or 26.3%, compared to $390.7 million a year earlier, and a $1.96 million increase, compared to $491.4 million three months earlier.  Average earning assets for the quarter totaled $460.5 million, an increase of $25.5 million, or 5.8%, compared with the prior quarter end, and an increase of $82.3 million, or 21.7%, from the fourth quarter a year ago.

  • Asset quality remained excellent with only $151,000 of nonperforming loans at December 31, 2019, representing 0.04% of total loans.  This compares to nonperforming loans at 0.14% of total loans at December 31, 2018, and 0.19% at September 30, 2019.  Nonperforming assets (“NPAs”) were 0.03% at the end of the fourth quarter, down from 0.12% a year ago and 0.15% three months earlier.  The improvement in NPAs reflects the stability of the loan portfolio and paydowns in principal balances.

  • Net charge-offs were $1,000 in the fourth quarter of 2019, compared to $118,000 in the fourth quarter a year ago.

  • Allowance for loan losses, as a percentage of total loans, was 1.03% at December 31, 2019, compared to 1.08%, at December 31.

  • Total equity as of December 31, 2019 of $56.1 million increased $1.2 million, or 2.3%, from the prior quarter end.  The Bank’s capital levels are well above FDIC “Well Capitalized” standards as of December 31, 2019, with a total capital ratio of 14.65%, a tier 1 capital ratio of 13.62%, a common equity tier 1 capital ratio of 13.62%, and a tier 1 leverage ratio of 11.57%. 

  • Book value per common share totaled $6.43 as of December 31, 2019, an increase of 10.5% from a year ago. 

“We continue to take advantage of the bank consolidation in our markets by executing on our strategy to hire key talent who are attracted to our unique organization,” said Keller.  “The relocation of our Danville office, now located at 740 Camino Ramon, opened on schedule earlier this month.  This new location will continue to provide us with excellent client accessibility, while adding much needed space to accommodate the staffing needs required for our growing organization.”

About Community Bank of the Bay

Community Bank of the Bay (OTCPink: 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.  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.

Contacts: William S. Keller, President & CEO,
  510-433-5404
  wkeller@BankCBB.com

FINANCIAL TABLES TO FOLLOW:

COMMUNITY BANK OF THE BAY  
UNAUDITED SUMMARY FINANCIAL STATEMENTS  
(Dollars in thousands, except earnings per share)  
                                     
  INCOME STATEMENT     Three Months Ended  
        2019     2019     Qtr over Qtr     2018     Qtr over Yr Ago Qtr    
        December 31     September 30     % Change     December 31     % Change    
                                     
Interest income      $   5,778     $   5,828     -0.9 %   $   4,620     25.1 %  
Interest expense       1,113       1,054     5.6 %     749     48.6 %  
Net interest income before provision    4,665       4,774     -2.3 %     3,871     20.5 %  
Provision for Loan Losses     50       200     -75.0 %     200          
Net interest income after provision   4,615       4,574     0.9 %     3,671     25.7 %  
                                     
Non-interest income     248       430     -42.3 %     449     -44.8 %  
Non-interest expense     3,307       3,117     6.1 %     2,976     11.1 %  
Income before provision for income taxes   1,556       1,887     -17.5 %     1,144     36.0 %  
Provision for income taxes     494       588     -16.0 %     370     33.5 %  
Net income     $   1,062     $   1,299     -18.2 %   $   774     37.2 %  
                                     
Less: preferred dividends     -        -      0.0 %     10     -100.0 %  
Net income available for common stockholders $   1,062     $   1,299     -18.2 %   $   764     39.0 %  
                                     
Basic earnings per common share  $   0.12     $   0.15     -18.3 %   $   0.10     25.7 %  
Weighted average common shares outstanding    8,696,448       8,690,355             7,864,255          
                                     
Return on average assets     0.88 %     1.13 %           0.77 %        
Return on average common equity   7.58 %     9.50 %           6.61 %        
                                     


COMMUNITY BANK OF THE BAY
UNAUDITED SUMMARY FINANCIAL STATEMENTS
(Dollars in thousands, except book value per share)
 
  BALANCE SHEET   At Period End
        2019   2019   Qtr over Qtr     2018   Year over Year  
  ASSETS     December 31   September 30   % Change     December 31   % Change  
                             
Total cash and investments   $   81,737   $   85,070   -3.9 %   $   68,592   19.2 %
Loans, net of unearned income   399,687     395,275   1.1 %     315,367   26.7 %
Loan loss reserve      (4,106)     (4,057)   1.2 %     (3,400)   20.8 %
Other assets       16,055     15,100   6.3 %     10,112   58.8 %
  Total Assets     $   493,373   $   491,388   0.4 %   $   390,671   26.3 %
                             
  LIABILITIES AND SHAREHOLDERS EQUITY                    
                             
Non-interest bearing demand deposits   133,744     153,541   -12.9 %     103,911   28.7 %
Interest bearing deposits     265,503     247,205   7.4 %     222,442   19.4 %
Total deposits       399,247     400,746   -0.4 %     326,353   22.3 %
Total borrowings and other liabilities   38,059     35,814   6.3 %     16,642   128.7 %
Total Liabilities     $   437,306   $   436,560   0.2 %   $   342,995   27.5 %
                             
Total equity       56,067     54,828   2.3 %     47,676   17.6 %
Total Liabilities and Total Equity $   493,373   $   491,388   0.4 %   $   390,671   26.3 %
                             
Book value per common share $   6.43   $   6.31   2.0 %   $   5.82   10.5 %
                             
                             
Period End Shares Outstanding   8,714,438     8,690,355           8,187,766      
                             


SELECTED FINANCIAL DATA  
(In thousands of dollars, except for ratios and per share amounts)  
Unaudited  
    At or for the Three Months Ended  
    2019     2019     2018  
    December 31     September 30     December 31  
ASSET QUALITY RATIOS                  
Net (charge-offs) recoveries     (1)     33     (118)
Net (charge-offs) recoveries to average loans   -0.0003 %   0.0087 %   -0.0388 %
Non-performing loans as a % of loans   0.04 %   0.19 %   0.14 %
Non-performing assets as a % of assets   0.03 %   0.15 %   0.12 %
Allowance for loan losses as a % of total loans   1.03 %   1.03 %   1.08 %
Allowance for loan losses as a % of non-performing loans   2721 %   550 %   749 %
                   
AVERAGE BALANCE SHEET DATA                  
Average assets     481,388     455,086     393,671
Average total loans     396,615     380,819     304,889
Average total deposits     389,270     364,641     331,385
Average shareholders' equity     55,615     54,239     45,844
                   
FINANCIAL RATIOS\STATISTICS                  
Return on average equity   0.88 %   1.13 %   0.77 %
Return on average assets   7.58 %   9.50 %   6.61 %
Net interest margin   4.02 %   4.36 %   4.29 %
Efficiency ratio   67.31 %   59.90 %   68.88 %
                   
Efficiency ratio (excl BEA Award)   67.31 %   62.87 %   72.81 %
                   
NPL / NPA   150.9   737.773   453.695
                   
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