Market Overview

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

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

Primary Logo

View Comments and Join the Discussion!