"Our loan officers were extremely proactive in contacting every borrower by the end of March to understand how they were being affected by declining economic activity, and to offer assistance with interest only and payment deferral options," Keller continued.  "Our early communication allowed us to actively help our small business and non-profit clients navigate the SBA's Paycheck Protection Program, and as of April 29, 2020, we had obtained loan approvals for 321 of our existing clients and potential new clients, totaling over $81 million.  In keeping with our commitment to equal access, 150 of our approved applications were under $100,000, and we obtained approvals for loans as small as $3,051.  As a longtime preferred SBA lender, we not only actively participated in the PPP, but are also well positioned to provide longer term SBA-supported solutions to our clients as warranted."  While the Bank has already added significant low-cost liquidity, it has also been approved to participate in the Federal Reserve's PPP Liquidity Facility which can further augment liquidity if necessary.  PPPLF advances can be used to support the surge in PPP loans and are repaid as the loans are repaid or forgiven.

• Net income increased 13.3% to $886,000 in the first quarter of 2020 compared to $782,000 in the first quarter a year ago.  Earnings per share was $0.10 in both the first quarter of 2020 and the first quarter a year ago.
  
  
• Pre-tax core earnings excluding gains on loan sales, Bank Enterprise Awards and loan loss provisions, increased $179,000 or 13.8% to total $1.47 million in the first quarter, compared to $1.30 million in the first quarter a year ago.
  
  
• Net interest income increased 14.1% to $4.63 million in the first quarter of 2020, compared to $4.06 million in the first quarter a year ago.  The improvement in operating net income in the first quarter of 2020 compared to the same quarter a year ago reflects a $572,000 increase in net interest income and a $300,000 increase in non-interest income, offset by a $350,000 increase in the provision for loan loss reserve and a $375,000 increase in noninterest expenses.
  
  
• Net interest margin for the first quarter totaled 3.95% compared with 4.02% for the prior quarter and 4.18% in the first quarter a year ago.  The reduction in margin from the prior quarter was primarily due to a 12-basis point decrease in the average yield on earning assets as a result of the 150-basis point decrease in the Federal Funds Rate during the quarter.
  
  
• Net loans increased $69.8 million, or 21.1%, to $400.2 million at March 31, 2020, compared to $330.5 million a year ago, and grew modestly compared to $399.7 million three months earlier.  The year over year loan growth was generally distributed among three key loan categories with $29.7 million in commercial real estate loans, $20.9 million in construction loans, and $12.8 million in commercial and industrial loans. 
  
  
• Total deposits increased $75.5 million, or 21.2% to $432.0 million at March 31, 2020, compared to a year ago and increased $32.7 million, or 8.2% compared to $399.2 million three months earlier. Noninterest bearing demand deposit accounts increased 23.9% compared to a year ago and represented 34.2% of total deposits, savings, NOW and money market accounts increased 12.1% compared to a year ago and represented 44.5% of total deposits and CDs increased 40.0% when compared to a year ago and comprised 21.4% of the total deposit portfolio, at March 31, 2020.
  
  
• Assets totaled $527.4 million at March 31, 2020, a $103.5 million increase, or 24.4%, compared to $423.9 million a year earlier, and a $34.0 million increase, compared to $493.4 million three months earlier.  Average earning assets for the quarter totaled $469.8 million, an increase of $76.6 million, or 19.5%, from the first quarter a year ago and an increase of $9.4 million, or 2.0%, compared with the prior quarter end.
  
  
• Asset quality remained excellent with only $141,000 of nonperforming loans at March 31, 2020, representing 0.04% of total loans.  This compares to nonperforming loans at 0.22% of total loans at March 31, 2019, and 0.04% at December 31, 2019.  Nonperforming assets ("NPAs") were 0.03% of total assets at the end of the first quarter and at the end of the preceding quarter. At March 31, 2019, NPAs were 0.17% of total assets.  The year over year improvement in NPAs reflects the stability of the loan portfolio and pay downs in principal balances.
  
  
• Net recoveries were $7,000 in the first quarter of 2020, compared to net recoveries of $74,000 in the first quarter a year ago.
  
  
• Allowance for loan losses, as a percentage of total loans, was 1.15% at March 31, 2020, compared to 1.10%, at March 31, 2019, and 3,283% of non-performing loans at the end of the first quarter of 2020 compared to 492% a year ago.
  
  
• Total equity as of March 31, 2020 of $57.4 million increased $1.4 million, or 2.4%, from the prior quarter end.  The Bank's capital levels are well above FDIC "Well Capitalized" standards as of March 31, 2020, with a Tier 1 leverage ratio of 11.58%. 
  
  
• Book value per common share totaled $6.57 as of March 31, 2020, an increase of 9.4% from a year ago. 
  
  
• In January, the Company relocated its Danville office to a new location at 740 Camino Ramon, providing better client accessibility and a larger infrastructure to accommodate its growing franchise.

Community Bank of the Bay (OTC: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.

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.