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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
QuarterQuarter Year toYear to Year
EndingEnding DateDate Ending
Balance Sheet 9/30/20159/30/2014 9/30/20159/30/2014 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: Bay Commercial Bank, Walnut Creek, California Keary Colwell, 925-476-1800 kcolwell@bcb-ca.com

Source:Bay Commercial Bank