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Headline: Community Bank of the Bay reports year-end earnings
Publication: Press Release
Dateline: February 15, 2007
OAKLAND, Calif., (Feb. 15, 2007) - Community Bank of the Bay (CBYAA-OB) has announced earnings of $428,134 for the year ended Dec. 31, 2006, compared to $404,110 at year-end 2005. This represents an increase of 6 percent from the prior year. Total assets grew 24 percent, from $55.05 million at year-end 2005 to $68.15 million at Dec. 31, 2006.
Chaula Pandya, recently promoted to Chief Financial Officer, was pleased with the deposit growth. “Our deposits also grew by 24 percent to $55.36 million, but the most important aspect of the deposit growth was that the greatest increase was in core deposits.” Checking account growth was the most significant with a 41 percent increase over prior year totals. “Having this type of solid deposit foundation will enable better loan pricing and will support continued loan growth in a very competitive marketplace,” Pandya noted.
Brian Garrett, president and chief executive officer, said, “While we are pleased with our overall performance for 2006, the fourth quarter was negatively impacted by two large real estate loans. Both became severely delinquent causing us to reverse a large portion of accrued interest that would otherwise have been included in income. We also incurred substantial costs related to collection. We have been working very hard to collect all principal, past due interest, and collection costs, and we have every reason to expect full recovery on both properties.”
Garrett added, “We continue to show strong core asset growth, particularly in the Oakland 1st Fund accounts. The Oakland community has embraced this program and we are pleased with the continued dramatic growth.” Garrett noted that the program has produced more than $25 million in deposits since its inception in mid-2004.
Garrett went on to describe the bank’s latest initiative, the Bay Area Green Fund. “Working much like our Oakland 1st Fund, the new fund allows our customers to designate their deposits for loans made exclusively to businesses and individuals who use the funds for sustainable or environmental purposes,” he explained. “As a community bank, it is our mission to raise the economic vitality of our immediate surroundings, but we also have other responsibilities, and the care of our environment is a crucial one. If we can put our resources and expertise to work to achieve both goals, we believe it is a winning combination.”
Community Bank of the Bay is located at 1750 Broadway in Oakland. The office is open from 9:00 a.m. to 4:00 p.m., Monday through Friday. Information on the bank and its services is available online at www.communitybankbay.com.
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This news release contains forward-looking statements with respect to the financial condition, results of operation and business of Community Bank of the Bay. These include, but are not limited to, statements that relate to or are dependent on estimates or assumptions relating to the prospects of loan growth, credit quality and certain operating efficiencies resulting from the operations of the bank. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressure among financial services companies increases significantly; (2) changes in the interest rate environment reduce interest margins; (3) general economic conditions, internationally, nationally or in the State of California are less favorable than expected; (4) legislation or regulatory requirements or changes adversely affect the business in which the combined organization will be engaged; and (5) the ability to recover principal, non-accrued interest, and other expenses associated with non-performing loans.
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