Bay Commercial Bank Reports Third Quarter 2015 Results

WALNUT CREEK, Calif., Oct. 26, 2015 (GLOBE NEWSWIRE) — Bay Commercial Bank (OTCQB:BCML) (the “Bank”) today announced its third quarter 2015 operating results.

The Bank reported total assets as of September 30, 2015 of $630.0 million including loans outstanding of $420.0 million compared to September 30, 2014 total assets of $503.5 million and total loans outstanding of $339.4 million.  At September 30, 2015, total deposits were $545.7 million compared to total deposits of $414.2 million at September 30, 2014.  The Bank’s net income for the third quarter 2015 was $1,195,000 or income per share of $0.21 per share compared to net operating income for the same period in 2014 of $1,556,000, or $0.32 per share.  The Bank’s net income for the first nine months of 2015 was $8,472,000 or income per share of $1.57 per share compared to net operating income for the same period in 2014 of $3,900,000, or $0.81 per share.

Third quarter 2015 net operating income decreased by $361,000 compared to the same period in 2014.  The decrease was comprised primarily of lower bargain purchase gain in 2015.  The Bank recorded a bargain purchase gain of $480,000 in third quarter 2014 compared to none during the same period in 2015.  Net interest margin was higher primarily due to the increase in earning assets in 2015 as compared to the same period in 2014. 

For the first nine months of 2015, the Bank’s net operating income increased by $4.6 million as compared to the same period in 2014 primarily due to the recognition of  a total bargain purchase gain of $7.4 million in 2015 as compared to $2.8 million in 2014.  In addition, net interest income increased by $4.6 million for the nine months of 2015 when compared to the same period in 2014 as a result of an increase in earning assets.  This increase was substantially offset by higher operating expenses in 2015 which included nonrecurring merger related expenses totaling $2.0 million in 2015 compared to $1.6 million in 2014.  

George J. Guarini, Chief Executive Officer of the Bank, stated, “We continue to focus on organic growth while keeping an eye out for merger opportunities.  From a strategic point of view we continue to see significant opportunity on both fronts.  In addition, with regulatory approval, in the near term, we plan to announce the repurchase of some of the Bank’s common stock designed to improve the Bank’s financial metrics and to improve our stock performance.”

Bay Commercial Bank offers a full-range of loans, including SBA, FSA 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.  The Bank has ten full service branches in Northern California. Bay Commercial Bank is a member of FDIC and is an Equal Housing Lender.  It is traded on OTCQB under the symbol BCML.  The Bank can be found on the web at www.baycommercialbank.com

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, 2015                
                   
      Quarter Quarter   Year to Year to   Year
      Ending Ending   Date Date   Ending
Balance Sheet   9/30/2015 9/30/2014   9/30/2015 9/30/2014   12/31/2014
(dollars in thousands)                
Total Assets   $ 630,039   $ 503,549     $ 630,039   $ 503,549     $ 504,391  
Total Loans       420,062     339,386       420,062     339,386       325,699  
Total Deposits     545,722     414,202       545,722     414,202       437,941  
Shareholders’ Equity     76,228     56,573       76,228     56,573       58,174  
                   
Operating Results                
(dollars in thousands)                
Interest income   $ 6,854   $ 5,472     $ 18,951   $ 13,868     $ 19,637  
Interest expense     812     704       2,339     1,868       2,580  
Net interest income     6,042     4,768       16,612     12,000       17,057  
Provision for loan losses   210     169       910     1,038       1,074  
Non-interest income     369     897       8,533     3,526       3,705  
Non-interest expense     4,186     3,186       14,617     9,760       12,793  
Net Income before tax     2,015     2,310       9,618     4,728       6,895  
Income tax       820     754       1,146     828       1,717  
Net Income     $ 1,195   $ 1,556     $ 8,472   $ 3,900     $ 5,178  
                   
Ratios and Data                
Net interest margin     4.09 %   3.96 %     3.95 %   3.87 %     3.91 %
Efficiency ratio     65.3 %   56.2 %     58.1 %   62.9 %     61.6 %
Book value per share period end $ 13.37   $ 11.89     $ 13.37   $ 11.89     $ 11.93  
Common shares outstanding   5,703,004     4,759,991       5,703,004     4,759,991       4,875,787  
Leverage capital ratio     11.5 %   10.7 %     11.5 %   10.7 %     11.1 %
Income per share – basic $ 0.21   $ 0.33     $ 1.57   $ 0.82     $ 1.09  
Common stock – weighted average   5,613,221     4,776,854       5,386,883     4,776,854       4,740,152  
Income per share – diluted $ 0.21   $ 0.32     $ 1.57   $ 0.81     $ 1.08  
Common stock – diluted              
– weighted average     5,627,660     4,794,082       5,401,322     4,794,082       4,780,345  
                   
CONTACT: Contact:
Bay Commercial Bank, Walnut Creek, California
Keary Colwell, 925-476-1800
kcolwell@bcb-ca.com