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Bay Commercial Bank Reports Fourth Quarter 2013 Results

Bay Commercial Bank Reports Fourth Quarter 2013 Results

WALNUT CREEK, Calif., Jan. 31, 2014 (GLOBE NEWSWIRE) -- Bay Commercial Bank
(OTCQB:BCML) (the "Bank") today announced its fourth quarter and full year
2013 operating results.

The Bank reported total assets as of December 31, 2013 of $342.3 million
including loans outstanding of $254.2 million compared to December 31, 2012
total assets of $316.6 million and total loans outstanding of $227.5 million.
At December 31, 2013, total deposits were $286.5 million compared to total
deposits of $261.2 million at December 31, 2012. The Bank's net operating
income for the fourth quarter 2013 was $789,000 or $0.17 per share compared to
net income for the same period in 2012 of $624,000, or $0.13 per share. The
increase in net operating income for the fourth quarter 2013 compared to the
same period in 2013 was comprised primarily of higher net interest margin and
lower loan loss provisions partially offset by higher operating costs. In
addition, during the fourth quarter 2013, the Bank's repurchase of 103,000
shares of common stock was accretive to earnings per share.

For the year ended 2013, the Bank reported net income of $2,690,000, or $0.54
per share, compared to net income of $2,155,000, or $0.45 per share, for 2012.
The increase in operating income for 2013 compared to 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, "Our 2013
operating results are due to our continued commitment to ensuring asset
quality, improving our operating processes, and keeping operating costs in
check.We continue to be optimistic about the economic environment and
improving credit quality.I believe we are prepared to continue expanding our
market share as demonstrated by our announcement earlier this month to acquire
Community Bank of San Joaquin. This will be our third acquisition."

Mr. Guarini added, "The financial metrics of the pending acquisition are
projected to be immediately accretive due to a substantial bargain purchase
gain partially offset by the related expense.In addition, we project
immediate earnings accretion. The improvement in capital utilization should
benefit the market value of our stock and give us more market capital to
continue our strategic growth through both organic and external means." 

Bay Commercial Bank offers a full-range of loans, 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                                                   
December 31, 2013                                                         
                                                        
                           Quarter    Quarter    Year       Year
Balance Sheet              Ending     Ending     Ending     Ending
                           12/31/2013 12/31/2012 12/31/2013 12/31/2012
(dollars in thousands)                                   
Total Assets               $342,304 $316,583 $342,304 $316,583
Total Loans                254,178   227,492   254,178   227,492
Total Deposits             286,464   261,204   286,464   261,204
Shareholders' Equity       52,322    50,672    52,322    50,672
                                                        
Operating Results                                        
(dollars in thousands)                                   
Interest income            $4,016   $3,677   $14,915  $14,727
Interest expense           516       590       2,080     2,354
Net interest income        3,500     3,087     12,835    12,373
Provision for loan losses  90        363       348       1,483
Non-interest income        145       189       628       738
Non-interest expense       2,209     1,961     8,526     7,782
Net Income before tax      1,346     952       4,589     3,846
Income tax                 557       328       1,899     1,691
expense(benefit)
Net Income                 $789     $624     $2,690   $2,155
                                                        
Ratios and Data                                          
Net interest margin        4.29%      3.92%      4.07%      4.34%
Efficiency ratio           60.6%      59.9%      63.3%      59.4%
Book value per shares      $11.07   $10.49   $11.07   $10.49
outstanding
Leverage capital ratio     15.7%      15.5%      15.7%      15.5%
Income per share - basic   $0.17    $0.13    $0.56    $0.45
Common stock - weighted    4,755,294 4,830,457 4,811,512 4,830,457
average
Income per share - diluted $0.16    $0.13    $0.54    $0.45
Common stock - diluted     4,914,996 4,839,157 4,971,213 4,839,157
weighted average

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

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