Exhibit 99.1
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NEWS RELEASE
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For Immediate Release
Contact:
Terry L. Robinson
President & CEO
North Bay Bancorp
trobinson@northbaybancorp.com
707-252 5024
NORTH BAY BANCORP ADJUSTS 2003 TAX ACCRUAL RATES
BASED ON RECENT ANNOUNCEMENT BY CALIFORNIA FRANCHISE TAX BOARD
2003 RESULTS REMAIN ON TRACK TO SURPASS 2002 RECORD LEVELS
Napa, CA - January 29, 2004 - North Bay Bancorp (Nasdaq: NBAN), holding company
for The Vintage Bank and Solano Bank, today announced it will increase its
provision for income taxes for 2003 due to a recent announcement by the
California Franchise Tax Board regarding its position on the tax treatment of
certain real estate investment vehicles. As a result, the Company's 2003 net
income will be reduced by approximately $386,000, or $0.17 per share. Net income
for 2003 is still expected to exceed 2002 record levels.
In 2003, the Company's provision for income taxes included a California state
tax benefit for a real estate investment trust (REIT) formed in January of 2003.
Recently, the California Franchise Tax Board made an announcement calling into
question the tax benefits associated with REIT's. North Bay will adjust its tax
accrual rate to 33.3% for 2003, compared to 35.0% in 2002. In the first nine
months of 2003, including the REIT tax benefits, the Company's previously
reported tax provision was 28.2% of pre-tax income compared to 34.8% of pretax
income in the first nine months of 2002. The Company did not record any REIT tax
benefits in 2002.
"In early February, we expect to report record 2003 profits, despite this change
in our tax accrual rates," said Terry Robinson, President & CEO. "Preliminary
analysis of our 2003 results show double digit growth in earnings reflecting
strong loan growth and stellar asset quality."
About North Bay Bancorp
North Bay Bancorp is the parent company of two community banks in the North Bay
Region of Northern California--The Vintage Bank based in Napa County and Solano
Bank based in Solano County. Both subsidiaries are full service commercial banks
offering a wide selection of deposit, loan and investment services to local
consumers and small business customers. Each bank has a separate board of
directors composed of local business and community leaders.
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The Vintage Bank, which opened for business in 1985, currently operates five
banking offices in Napa County, Northern California's number one tourist
destination and the nation's premier wine producing region. The Bank's main
office and two branch offices are located in the City of Napa. Vintage also has
a branch in the City of St. Helena and a branch on Airport Road in the Southern
industrial area of Napa County.
Solano Bank, which opened in July 2000, operates offices in the primary cities
along the I-80 corridor of Solano County. The Bank's main office is located in
Vacaville, with branch offices in Fairfield, Vallejo and Benicia. This region,
projected to be the fastest growing county in Northern California through year
2020, is attracting growth with a quality lifestyle, affordable housing and
business-friendly attitudes.
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This news 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 tax laws and the
interpretation thereof. 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: changes in California and US tax laws and the treatment of tax-favored
investments, and the finalization of the company's year-end results and changes
during the review process; and other risks detailed in the North Bay Bancorp
reports filed with the Securities and Exchange Commission.
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