Exhibit 99.1
NORTH BAY VOICE
NORTH BAY BANCORP NEWSLETTER
FALL 2001
Terry L. Robinson, President's Letter - North Bay Bancorp & The Vintage Bank
As most of you undoubtedly know, I currently have two "titles." One title is
President & CEO of The Vintage Bank, where my responsibilities focus on customer
relations, sales and service delivery and lending. The other title is President
& CEO of North Bay Bancorp, the holding company for The Vintage Bank and Solano
Bank, where my responsibilities focus on strategic planning, operations
management and shareholder relations. In this letter, I have written a section
for each title but, to avoid confusion, I identify the title I am wearing at the
beginning of each section.
Wearing my North Bay title, I want to discuss the stock of North Bay Bancorp. We
now have approximately 1,100 shareholders of record, the majority of whom are
residents of the Napa Valley. As a result of last year's secondary stock issue
that helped capitalize Solano Bank, we now have approximately 200 shareholders
from Solano County. We like the idea of our customers becoming shareholders and
vice-versa. Across our nation, customers investing in local, publicly owned
community banks have enjoyed the benefits of owning a piece of "their" bank.
North Bay Bancorp stock is currently traded on the OTC Bulletin Board under the
symbol NBAN.OB. Shareholders can look up information on stock trades along with
bid and ask quotes using any of the popular quotation services available on the
Internet. The primary market makers for our stock are Hoefer & Arnett and
Wedbush Morgan Securities. These firms typically are in a position to purchase
or sell North Bay Bancorp stock in blocks of 100 to 1,000 shares at any point in
time. They can be contacted directly or you may purchase or sell stock through
these firms using your own broker or investment advisor.
We believe North Bay Bancorp is in a unique position to capitalize on
exceptional opportunities. The Vintage Bank has a solid history of excellent
profits and is now the sole community bank based in the Napa Valley, a market
envied by banks across the country. Solano Bank is the only community bank based
in the Vacaville to Benicia corridor of Interstate 80, and Solano is forecast to
be the fastest growing county in the Bay Area over the next 20 years. Both banks
are ahead of forecasts for growth this year. We believe these factors should
ultimately contribute to the profitability of our Company.
Beginning with this issue of the North Bay Voice, we are going to have a
permanent section of the newsletter devoted to our stock, with information on
recent price and volume activity. Should you have questions or wish to discuss
any aspect of an investment in North Bay Bancorp, please call me directly at
(707) 258-3969.
Now, wearing my Vintage Bank title, I am pleased to report progress regarding
our future office in St. Helena. Our design was approved by the St. Helena
Planning Commission on July 3. As this newsletter goes to press, we have applied
for a building permit and are going through the "plan check" process while we
obtain bids from subcontractors. Once the building permit is issued, we have
scheduled two and one-half months for the construction.
We have received questions and comments regarding the timing of our opening in
St. Helena. While the process appears to be going very slowly, I would like to
assure our customers, shareholders and prospective customers that the parties
involved, including directors, employees, architects, engineers, contractors and
subcontractors have been working diligently; I don't know how we could have
significantly shortened the process to this point. We now have very detailed
plans that should minimize delays and changes during construction. Additionally,
both private and public sectors of the St. Helena community have warmly welcomed
us and have been very supportive. We provide daily courier service to St. Helena
and businesses
are opening accounts with us in anticipation of the office being open. When we
have a firm date for our opening, we will be publicizing it in every way
possible. I anticipate I will be announcing an official opening date in next
quarter's newsletter.
Sincerely,
Terry L. Robinson
President & CEO
This letter contains forward-looking statements with respect to the financial
condition, results of operation and business of North Bay Bancorp and its
subsidiaries. Forward-looking statements include, but are not limited to,
statements that relate to or are dependent on estimates or assumptions with
respect to descriptions of plans or objectives of management for future
operations, products or services and forecasts of future revenues, earnings and
other measures of economic performance. Forward-looking statements, by their
nature, are subject to risks and uncertainties. A number of factors - many of
which are beyond the Company's control - could cause actual conditions to differ
significantly from those described in the forward-looking statements.
Glen C. Terry, President's Letter - Solano Bank
On July 17, 2001 Solano Bank, your bank, celebrated its' one year anniversary
with a combined Birthday Party and our fourth artist reception at the Bank's
Vacaville headquarters. The artist honored and whose art is currently on display
in the Vacaville office is Earl Thollander. Mr. Thollander's nationally known
work is definitely worth a viewing trip prior to the expiration of the exhibit
on September 30, 2001.
At the date of our one-year anniversary, your Bank had reached nearly $45
million in total assets, including total loans of over $13 million. Solano Bank
also maintained customer deposits of more than $36 million and continues to
perform better than projected in nearly all financial categories
Solano Bank's strong growth is attributable to the continuing support from
shareholders who have opened their personal and business accounts with the Bank
and who have encouraged their friends, relatives, and associates to experience
quality personalized banking at Solano Bank. If you have opened your accounts
already, thank you. If you have not, please stop by any one of the Bank's
offices and see how friendly your Bank is. We also welcome referrals of your
friends and neighbors and will show them the same warm hospitality that you have
come to enjoy.
We are eagerly anticipating the opening of our new Vallejo office in the Target
Plaza, across from the new Starbucks Coffee shop. Upon receipt of regulatory
approval and following completion of the tenant improvements, we plan to open
the office in November of 2001. Many potential customers in the Vallejo market
have shared their excitement over our plans and intend to open accounts as soon
as the office is opened.
In connection with the Vallejo market, the Board of Directors of Solano Bank has
invited long time Vallejo businessman Jack Anthony III to join the Bank's Board.
Our parent company's Board has appointed Jack to Solano Bank's board, subject to
pending regulatory approval. Jacks' extensive business and personal contacts in
the Vallejo and southern Solano County market coupled with his excellent
business background make him an ideal and very desirable addition to Solano
Bank's Board. Please join your Board of Directors in welcoming Jack as a new
Director of Solano Bank.
As we look forward following just over a year of growth and success, we see a
bright and shining future for Solano Bank. We continue to earn the reputation as
Solano County's pre-eminent community Bank who, thanks to the resources of our
holding company, North Bay Bancorp, also competes effectively against our large
bank competitors. We continue to see growth opportunities in Solano County, but
will focus during the remainder of 2001 and the early part of 2002 on growing
our loan, deposit, and customer base rather than branch expansions other than
that in Vallejo. As I have stated above, you can support this growth strategy by
opening your accounts and referring your friends and associates to the Bank.
Once again, I want to personally thank you, our customers and shareholders, on
behalf of the staff of Solano Bank for your confidence, trust, and support. Your
trust has allowed us to grow Solano Bank in Solano County and at the same time
given each of us an opportunity for the most rewarding professional experience
of our lives. We thank you.
Sincerely,
Glen C. Terry
President & CEO
Second Quarter Earnings Release
North Bay Bancorp, holding company for The Vintage Bank and Solano Bank,
announced earnings of $621,975, or $.31 per share, for the three months ended
June 30, 2001. This compares with earnings of $554,042, or $.28 per share, for
the first quarter of 2001, representing a 12% increase. Year-to-date earnings
for the six months ended June 30, 2001 were $1,176,017, or $.60 per share,
compared to $1,460,226, or $.83 per share, for the first six months of 2000.
Consolidated assets were $311,160,688 as of June 30, 2001, representing a 42%
increase from a year earlier. Deposits increased 44% from a year earlier, while
loans outstanding increased 22%.
President and CEO Terry Robinson expressed pleasure with the Company's growth
and noted that the decline in earnings from the prior year was consistent with
the Company's long-term business plan. "Solano Bank opened July 17, 2000. A new
bank typically generates losses for one to three years following opening. The
losses recorded by Solano Bank are declining and we continue to anticipate that
Solano Bank will achieve break-even operations near the end of the first quarter
of 2002. We are most pleased with the Company's strong growth while maintaining
very high asset quality. Both The Vintage Bank and Solano Bank have
significantly exceeded growth expectations for this point in the year."
Stock of North Bay Bancorp is quoted on the Over-The-Counter (OTC) Bulletin
Board, Symbol NBAN.OB.
This press release contains forward-looking statements with respect to the
financial condition, results of operation and business of North Bay Bancorp and
its subsidiaries. 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 Vintage Bank and Solano 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) other risks detailed in the North
Bay Bancorp reports filed with the Securities and Exchange Commission.
Questions regarding this press release should be directed to Terry L. Robinson
(707) 258-3969.
Stock Talk
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Company: North Bay Bancorp
Symbol: NBAN
Market: NASDAQ OTCBB
52-Week High: $20.9524
52 Week Low: $19.00
Current
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Bid (sell): $19.10
Ask (buy): $19.60
Source: Yahoo Finance 8/28/01
Employee of the Quarter
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Please join us in congratulating these North Bay Bancorp Employee of the Quarter
award winners.
Vintage Bank
2nd Quarter `01
Kristy Breiten
Loan Administrative Assistant
Solano Bank
2nd Quarter `01
Marsha Gaston
Administrative Assistant
To be an EOQ, an employee must exhibit the following characteristics:
o Be a Team Player
o Have a Positive Attitude
o Better the working environment and/or community
o Be Organized
o Support the Bank statement of values