OAKLAND, CA -- (Marketwired) -- 10/30/14

Community Bank of the Bay (OTCBB: CBYAA), a San Francisco Bay Area commercial bank with full service offices in Oakland and Danville, and two business offices in the Silicon Valley, reported net income of $632 thousand for the quarter ended September 30, 2014.

2014 Third Quarter Financial Highlights

• Net income after tax for the 2014 Third Quarter totaled $632 thousand, or $0.14 earnings per common share, a 66% increase over the 2013 Third Quarter. Pre-tax operating income totaled $793 thousand, an increase of $474 thousand, or 149 percent, from $318 thousand reported in the 2013 Third Quarter.
• Total assets at September 30, 2014 were $192.0 million compared to $173.3 million at September 30, 2013. Average earning assets for the 2014 Third Quarter reached $180.3 million, an increase of $30.0 million, or 20.0 percent, compared with $150.3 the 2013 Third Quarter.
• Deposits decreased $2.6 million to $166.9 million from the prior quarter, and increased $16.3 million or 10.9 percent from the prior year.
• Loans increased $7.5 million to $152.8 million from the prior quarter, and increased $23.8 million or 18.5 percent from the prior year.
• Non-performing assets, including Other Real Estate Owned decreased $133 thousand to $3.3 million in the Third Quarter compared to Second Quarter, and represent 2.1 percent of total loans.
• Net interest margin increased fifty-three basis points to 4.58 percent, compared with 4.05 percent for the 2014 Second Quarter and decreased twenty-one basis points from 4.79 percent for the 2013 Third Quarter.
• Capital levels remain well above FDIC "Well Capitalized" standards. Third Quarter 2014 Equity of $20.5 million increased 11.7 percent from the prior year and resulted in Tier 1 Leverage of 10.92 percent and Tier 1 Risk-Based and Total Risk-Based Capital Ratios of 12.47 percent and 13.72 percent respectively.

"The year's strong loan growth and robust loan pipeline are contributing to recurring operating earnings and the goal of a record earnings year. Year to date pre tax operating income, excluding the Bank Enterprise Award, has increased 58% from 2013. We are also proud to announce that during the third quarter of 2014, Community Bank of the Bay was awarded a $355 thousand Bank Enterprise Award by the Community Development Financial Institution division of the U.S. Treasury Department. This is the sixth year in a row that Community Bank of the Bay has received the maximum award made available by the Fund, and is a testament to our commitment to our clients and communities," said William S. Keller, President and Chief Executive Officer. "With our continued improvement in profitability, we have been advised by our tax advisors that our bank has now fully utilized its deferred tax benefits relating to its net operating loss carryforwards and will begin incurring a tax obligation. They have recommended that we recast 2014 operating results using an estimated effective tax rate of 20% for the full year. The attached financial statements reflect this tax adjustment."

About Community Bank of the Bay

Community Bank of the Bay (OTCBB: 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 offices in Danville, San Mateo and Campbell, CA. It is also California's first certified depository Community Development Financial Institution and one of only three operating in the Northern California market. 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.

Forward-Looking Statements
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.

                         COMMUNITY BANK OF THE BAY
                   UNAUDITED SUMMARY FINANCIAL STATEMENTS
                  (In thousands except earnings per share)


    INCOME                                              2013      Year Over
   STATEMENT                  2014                  Three Months     Year
                       Three Months Ended               Ended       Change
              ------------------------------------  ------------  ---------
              September 30    June 30    March 31   September 30      %

Interest
 income       $      2,245  $    2,006  $    1,965  $      1,935       16.0%
Interest
 expense               166         185         168           122       36.1%
              ------------  ----------  ----------  ------------  ---------
  Net
   interest
   income
   before
   provision         2,079       1,821       1,797         1,813       14.7%
Provision for
 Loan Loss
 Reserve               100          50          50           219      -54.3%
              ------------  ----------  ----------  ------------  ---------
  Net
   interest
   income
   after
   provision         1,979       1,771       1,747         1,594       24.2%

Non-interest
 income                564         348         360           433       30.3%
Non-interest
 expense             1,750       1,770       1,661         1,709        2.4%
              ------------  ----------  ----------  ------------  ---------
  Income
   before
   provision
   for income
   taxes               793         349         446           318      149.4%
Provision for
 income taxes          161          71          90           (63)    -355.6%
              ------------  ----------  ----------  ------------  ---------
  Net income  $        632  $      278  $      356  $        381       65.9%
              ============  ==========  ==========  ============  =========

Less:
 preferred
 dividends              32          32          32            32        0.0%
              ------------  ----------  ----------  ------------  ---------
  Net income
   avaiable
   for common
   stockholde
   rs         $        600  $      246  $      324  $        349       71.9%
              ============  ==========  ==========  ============  =========

Basic earnigs
 per common
 share        $       0.14  $     0.06  $     0.08  $       0.08       70.9%
Weighted
 average
 common
 shares
 outstanding     4,196,268   4,196,268   4,172,268     4,172,268

Return on
 average
 assets               1.31%       0.54%       0.70%         0.85%
Return on
 average
 common
 equity               15.3%        6.4%        8.5%         10.3%




                          COMMUNITY BANK OF THE BAY
                   UNAUDITED SUMMARY FINANCIAL STATEMENTS
                  (In thousands except earnings per share)


BALANCE SHEET                                           2013      Year Over
                              2014                  Three Months     Year
                       Three Months Ended               Ended       Change
              ------------------------------------  ------------  ---------
    ASSETS    September 30    June 30    March 31   September 30      %

Total cash
 and
 investments  $     33,540  $   41,687  $   58,717  $     39,989      -16.1%
Loans, net of
 unearned
 income            152,822     145,338     130,230       128,984       18.5%
                                                                  ---------
  Loan loss
   reserve          (2,562)     (2,539)     (2,505)       (2,544)       0.7%
Other real
 estate owned          971           -           -             -
Other assets         7,246       6,916       6,847         6,897        5.1%
              ------------  ----------  ----------  ------------  ---------
  Total
   Assets          192,017     191,402     193,289       173,326       10.8%

LIABILITIES AND
 SHAREHOLDERS EQUITY

Non-interest
 bearing
 deposits           54,317      58,875      60,123        60,140       -9.7%
Intrest
 bearing
 deposits          112,551     110,559     109,223        90,392       24.5%
              ------------  ----------  ----------  ------------  ---------
  Total
   deposits        166,868     169,434     169,346       150,532       10.9%
Total
 borrowings
 and other
 liabilities         4,632       2,082       4,493         4,427        4.6%
              ------------  ----------  ----------  ------------  ---------
  Total
   Liabilitie
   s          $    171,500  $  171,516  $  173,839  $    154,959       10.7%
              ============  ==========  ==========  ============  =========

Shareholders
 equity             20,517      19,886      19,449        18,367       11.7%
              ------------  ----------  ----------  ------------  ---------
Total
 Liabilities
 and
 Shareholders
 Equity       $    192,017  $  191,402  $  193,288  $    173,326       10.8%
              ============  ==========  ==========  ============  =========

Book value
 per common
 share        $       3.92  $     3.77  $     3.69  $       3.43       14.4%

Media Contacts:
William S. Keller
President & CEO
510-433-5404
wkeller@BankCBB.com