BAY NATIONAL CORPORATION 
By
Our net interest income was negatively impacted by the Federal Reserve's
initiative to stimulate our nation's economy with a reduction of 300 basis
points in the Fed Funds rate over the past six months. Absent these items, and
our strategic decisions to open a commercial banking office in the BWI
Corridor and add experienced lenders to our
Mr. Mohler continued, "The Company's total assets, net loans and deposits
increased by 6.72%, 6.26% and 5.90%, respectively from the year-ago quarter
ending
We have also hired new leadership in our residential mortgage lending
operation in
Other great additions to our professional banking team are lifelong
Mercantile veteran,
Our continued focus on conserving capital and managing interest rate risk resulted in maintaining capital levels defined as 'well capitalized,' the highest rating by regulatory capital measures. We will diligently monitor and manage our capital in order to preserve and enhance long-term shareholder value.
As noted in our fourth quarter 2007 earnings release, the Company has had minimal charge-offs since its inception in 2000 prior to the real estate conundrum; however, earnings are not at an acceptable level, and we are maintaining a clear focus on restoring our profitability to a level consistent with a high performing bank.
In conclusion, I commend our dedicated team of associates in both
Bay National Bank was founded in 2000 in response to banking industry consolidation and the distinct void these mergers created in servicing, in particular, small and mid-size businesses and their owners, business professionals, and high net worth individuals. Bay National Bank believes that it now occupies a unique niche in the banking industry. It also believes that it has positioned itself between the much larger banks, whose size and bureaucracy can preclude them from delivering exceptional and responsive service, and between much smaller banks, which may not be able to deliver the full range of products and services sought by growing businesses and sophisticated customers.
Bay National Corporation has two full-service banking offices,
The statements in this press release that are not historical facts constitute "forward-looking statements" as defined by Federal Securities laws. Forward-looking statements can generally be identified by the use of forward- looking terminology such as "believes," "expects," "intends," "may," "will," "should," "anticipates" or similar terminology. Such statements, specifically regarding Bay National Corporation's intentions regarding shareholder value, expansion of our residential mortgage lending presence and future performance, are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by such forward- looking statements. Potential risks and uncertainties include, but are not limited to, changes in interest rates, deposit flows, loan demand and real estate values, as well as changes in economic, competitive, governmental, regulatory, technological and other factors which may affect Bay National Corporation specifically or the banking industry generally. Forward-looking statements speak only as of the date they are made. Bay National Corporation will not update forward-looking statements to reflect factual assumptions, circumstances or events that have changed after a forward-looking statement was made. For further information, please refer to the Bay National Corporation reports filed with the U.S. Securities and Exchange Commission.
SELECTED UNAUDITED FINANCIAL DATA
AS OF MARCH 31, 2008 and 2007
(dollars in thousands, except per share data)
2008 2007
Total assets $267,024 $250,217
Cash and due from banks 485 2,159
Federal funds sold and other
overnight investments 14,374 18,005
Investment securities available for sale - 697
Other equity securities 1,157 1,156
Loans, net 237,935 223,924
Deposits 231,149 218,262
Short-term borrowings 8,312 2,681
Subordinated debt 8,000 8,000
Stockholders' equity 18,481 19,478
Common shares outstanding 2,140,933 2,128,876
Book value per share $8.63 $9.15
Ratio of interest earning assets
to interest bearing liabilities 126.77% 125.15%
Stockholders' equity as a
percentage of assets 6.92% 7.78%
SELECTED UNAUDITED FINANCIAL RATIOS
FOR THE THREE MONTHS ENDED MARCH 31, 2008 and 2007
Weighted average yield/rate on: 2008 2007
Loans 7.27% 9.28%
Investments and interest bearing
cash balances 1.75% 4.25%
Interest bearing liabilities 3.73% 4.54%
Net interest spread 3.25% 4.23%
Net interest margin 3.97% 5.16%
SELECTED UNAUDITED OPERATIONAL DATA
FOR THE THREE MONTHS ENDED MARCH 31, 2008 and 2007
(dollars in thousands, except per share data)
Three Months Ended
March 31
2008 2007
Interest income $4,369 $5,343
Interest expense 1,882 2,199
Net interest income 2,487 3,144
Provision for credit losses 2,468 -
Net interest income after
provision for credit losses 19 3,144
Non-interest income 208 192
Non-interest expenses 2,682 2,295
Income (loss) before income taxes (2,455) 1,041
Income tax (benefit) expense (969) 422
Net (loss) income $(1,486) $619
PER COMMON SHARE
Basic net (loss) income per share* $(.69) $.29
Diluted net (loss) income per share* $(.69) $.28
Average shares outstanding (Basic)* 2,139,845 2,128,876
Average shares outstanding (Diluted)* 2,139,845 2,211,076
STOCK PRICE
High* $11.70 $17.55
Low* $8.12 $15.50
Close* $8.55 $17.04
* All periods have been adjusted to reflect a 1.1 to 1 stock split in the
form of a 10% stock dividend recorded on June 29, 2007
SUPPLEMENTAL INFORMATION:
(dollars in thousands)
Reconciliation of total deposits March 31, March 31,
to core deposits: 2008 2007
Total deposits $231,149 $218,262
National market certificates of deposit (50,889) (26,518)
Variable balance accounts (1 customer
as of March 31, 2008 and 2007) (6,898) (10,222)
Portion of variable balance accounts
considered to be core 3,000 3,000
Core deposits $176,362 $184,522
SOURCE Bay National Corporation
