Bay Area Bancshares Announces Third Quarter 1995 Earnings.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Oct. 11, 1995--Bay Area Bancshares (Bulletin Board BYAR) and its wholly owned subsidiary, Bay Area Bank, today reported net income for the third quarter ended Sept. 30, 1995 of $362,000 or 40 cents per share compared to $217,000 or 26 cents per share for the third quarter of 1994, representing a 67% increase.

Earnings for the first nine months of 1995 totalled $906,000 or 99 cents per share, an improvement of 35% over the $670,000 or 77 cents per share for the same period of 1994.

Assets grew approximately $15.9 million or 21% from $76.7 million at Sept. 30, 1994 to $92.6 million at Sept. 30, 1995. Deposits also increased 21% reaching $84.1 million at Sept. 30, 1995, while loans rose $3.0 million or 6% during the same period. Total gross loans outstanding at Sept. 30, 1995 were $54.0 million. It was also reported that common stock shareholders of record Oct. 6, 1995 will be paid a third quarter cash dividend on Oct. 13 of 7 cents per share. -0-

Third Quarter Financial Highlights

                                      Bay Area Bancshares
Third Quarter                         1995           1994

Net Income                         $362,000         $217,000
Earnings Per Share                 40 cents         26 cents
Total Assets                    $92.6 million    $76.7 million

                                         Bay Area Bank
Third Quarter                        1995           1994

Net Income                         $375,000        $237,000
Earnings Per Share                    n/a             n/a
Total Assets                    $92.6 million    $76.7 million

CONTACT: Bay Area Bancshares

John Brooks/Anthony Gould, 415/367-1600