Bay Commercial Bank Reports Third Quarter 2013 Results

Bay Commercial Bank Reports Third Quarter 2013 Results

WALNUT CREEK, Calif., Oct. 18, 2013 (GLOBE NEWSWIRE) -- Bay Commercial Bank
(OTCQB:BCML) (the "Bank") today announced its third quarter 2013 operating
results.

The Bank reported total assets as of September 30, 2013 of $327.2 million
including loans outstanding of $252.7 million compared to September 30, 2012
total assets of $316.5 million and total loans outstanding of $235.5 million.
At September 30, 2013, total deposits were $268.3 million compared to total
deposits of $263.1 million at September 30, 2012. The Bank's net operating
income for the third quarter 2013 was $634,000 or $0.13 per share compared to
net income for the same period in 2012 of $742,000, or $0.15 per share. The
decrease in net operating income for the third quarter 2013 compared to the
same period in 2013 was comprised primarily of higher operating costs.

For the first nine months of 2013, the Bank reported net income of $1,901,000
compared to net income of $1,531,000 for the same period in 2012. For the most
recent nine month period, the net income to shareholders was $0.39 per share,
compared to $0.32 per share for the same period of 2012. The increase in
operating income for the nine month periods ended September 30, 2013 compared
to the same periods in 2012 was primarily the result of lower provisions for
loan losses partially offset by higher operating expenses in 2013 as compared
to 2012.The lower provision is the result of improving credit quality and the
higher operating expenses are related to the cost of certain operational
enhancements implemented in 2013.

George J. Guarini, Chief Executive Officer of the Bank, stated, "2013 has been
a year of change at the Bank.We relocated our headquarter office and main
branch, implemented certain data processing enhancements and enhanced our risk
management process.We continue to be optimistic about the economic
environment and improving credit quality, and I believe we are prepared to
continue expanding our market share."

Mr. Guarini added, "We have regulatory approval of our stock repurchase
program and will begin repurchasing up to 5% of the Bank's outstanding common
stock on Monday, October 21, 2013.This should improve the Bank's book value
and earnings per share." 

Bay Commercial Bank offers a full-range of loan, including SBA 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. Its full service branches in California are located
at 500 Ygnacio Valley Road, Walnut Creek; 155 Grand Avenue, Oakland; 3895 E.
Castro Valley Blvd, Castro Valley; 700 E. El Camino Mountain View; and 960
School Street, Napa. 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                                                  
September 30, 2013                                                       
                                                     
              Quarter    Quarter    Year to    Year to    Year
Balance Sheet Ending     Ending     Date       Date       Ending
              9/30/2012  9/30/2013  9/30/2012  9/30/2013  12/31/2012
(dollars in                                           
thousands)
Total Assets  $316,481 $327,181 $316,481 $327,181 $316,583
Total Loans   235,544   252,743   235,544   252,743   227,492
Total         263,080   268,348   263,080   268,348   261,204
Deposits
Shareholders' 50,049    52,572    50,049    52,572    50,672
Equity
                                                     
Operating                                             
Results
(dollars in                                           
thousands)
Interest      $3,893   $3,758   $11,050   $ 10,899  $14,727
income
Interest      560       508       1,764     1,564     2,354
expense
Net interest 3,333     3,250     9,286     9,335     12,373
income
Provision for 262       112       1,120     258       1,483
loan losses
Non-interest  251       154       549       483       738
income
Non-interest  1,992     2,207     5,821     6,317     7,782
expense
Net Income    1,330     1,085     2,894     3,243     3,846
before tax
Income tax    588       451       1,363     1,342     1,691
Net Income    $742     $634     $1,531   $1,901   $2,155
                                                     
Ratios and                                            
Data
Net interest  4.95%      4.18%      4.56%      4.08%      4.34%
margin
Efficiency    55.6%      64.8%      59.2%      64.3%      59.4%
ratio
                                                     
Leverage      16.6%      16.8%      16.6%      16.8%      15.5%
capital ratio
Income per    $0.15    $0.13    $0.32    $0.39    $0.45
share - basic
Common stock  4,830,457 4,830,457 4,830,457 4,830,457 4,830,457
Income per
share -       $0.15    $0.13    $0.32    $0.39    $0.45
diluted
Common stock  4,830,457 4,830,457 4,830,457 4,830,457 4,839,457
- diluted
Book Value    $10.36   $10.88   $10.36   $10.88   $10.49
per share

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

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