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Bay Commercial Bank Reports Second Quarter 2015 Results

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WALNUT CREEK, Calif., July 30, 2015 (GLOBE NEWSWIRE) -- Bay Commercial Bank (OTCQB: BCML) (the "Bank") today announced its second quarter 2015 operating results.

The Bank reported total assets as of June 30, 2015 of $606.0 million including loans outstanding of $400.2 million compared to June 30, 2014 total assets of $509.5 million and total loans outstanding of $338.9 million.  At June 30, 2015, total deposits were $524.3 million compared to total deposits of $447.2 million at June 30, 2014.  The Bank's net income for the second quarter 2015 was $1,888,000 or income per share of $0.33 per share compared to net operating income for the same period in 2014 of $1,820,000, or $0.38 per share.  The Bank's net income for the first six months of 2015 was $7,277,000 or income per share of $1.31 per share compared to net operating income for the same period in 2014 of $2,344,000, or $0.49 per share.

Second quarter 2015 net operating income increased by $68,000 compared to the same period in 2014.  The increase was comprised primarily of higher net interest margin partially offset by a lower bargain purchase gain.  The bargain purchase gain recorded in second quarter 2014 totaled $2.3 million compared to $1.2 million in 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 six months of 2015, the Bank's net operating income increased by $4.9 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 $2.3 million in 2014.  In addition, net interest income increased by $3.3 million for the six 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.  

George J. Guarini, Chief Executive Officer of the Bank, stated, "We recently added resources to our newly created C&I team and we are pleased with the opportunities they present. From a strategic point of view we continue to see significant opportunity. As we approach $1billion in assets we look forward to creating a currency which will only add to that opportunity. Having fully integrated our fourth acquisition, we believe in the combination of organic and strategic emphasis, while maintaining a vigilant eye toward asset quality."

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.  Bay Commercial Bank is a member of FDIC and is an Equal Housing Lender.  It is traded on the Over the Counter Bulletin Board 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         
June 30, 2015          
            
   QuarterQuarter Year toYear to Year  
   EndingEnding Date EndingDate Ending Ending  
Balance Sheet 6/30/20156/30/2014 6/30/20156/30/2014 12/31/2014  
   (dollars in thousands)          
Total Assets $  606,021 $  509,486  $  606,021 $  509,486  $  504,391   
Total Loans     400,223    338,902     400,223    338,902     325,699   
Total Deposits    524,283    447,206     524,283    447,206     437,941   
Shareholders' Equity    74,034    54,613     74,034    54,613     58,174   
            
Operating Results          
  (dollars in thousands)          
Interest income $  6,418 $  4,647  $  12,097    8,396  $  19,637   
Interest expense    803    637     1,527    1,164     2,580   
  Net interest income    5,615    4,010     10,570    7,232     17,057   
Provision for loan losses   278    645     700    869     1,074   
Non-interest income    1,626    2,465     8,164    2,629     3,705   
Non-interest expense    4,654    4,306     10,431    6,574     12,793   
Net Income before tax    2,309    1,524     7,603    2,418     6,895   
 Income tax     421    (296)    326    74     1,717   
Net Income  $  1,888 $  1,820  $  7,277 $  2,344  $  5,178   
                      
Ratios and Data          
Net interest margin  3.93% 3.66%  3.84% 4.65%  3.91%  
Efficiency ratio  64.3% 66.5%  55.7% 66.7%  61.6%  
Book value per share period end$  13.23 $  11.55  $  13.23 $  11.55  $  11.93   
Common shares outstanding   5,594,187    4,727,457     5,594,187    4,727,457     4,875,787   
Leverage capital ratio  11.3% 10.3%  11.3% 10.3%  11.1%  
Income per share - basic$  0.34 $  0.38  $  1.30 $  0.50  $  1.09   
Common stock - weighted average   5,507,508    4,727,457     5,394,504    4,727,457     4,740,152   
Income per share - diluted$  0.33 $  0.38  $  1.31 $  0.49  $  1.08   
Common stock - diluted         
  - weighted average    5,709,526    4,782,445     5,536,000    4,742,907     4,780,345   
            


Contact: Bay Commercial Bank, Walnut Creek, California Keary Colwell, 925-476-1800 kcolwell@bcb-ca.com

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