BALTIMORE, Nov. 6 /PRNewswire-FirstCall/ -- Bay National
Corporation (the "Company") (NASDAQ:BAYN), the bank holding company
for Bay National Bank, today reported a third quarter net loss of
$1,447,000 or $0.67 per diluted share, as compared to a net loss of
$1,779,000 or $0.83 per diluted share reported for the quarter
ending September 30, 2008. The results for the current quarter
include a provision for credit losses of $1,800,000 and net
charge-offs totaling $2,329,000 while the comparable quarter one
year ago reflected $2,492,000 in provision for credit losses and in
net charge-offs. Net charge-offs for the third quarter of 2009 were
largely in the commercial, commercial construction, commercial real
estate and consumer construction categories. As of September 30,
2009, total assets were $297.5 million, an increase of 8.5% from
September 30, 2008. Net loans decreased by $40.8 million or 17.1%
from the year-ago quarter end while deposits increased by $44.2
million or 18.9%. While we continue with our efforts to raise
additional capital, management deems it prudent to maintain current
capital ratios by limiting loan growth for the short-term and
recognizes that the needs of our existing customers must take
priority over the establishment of new relationships. Hugh W.
Mohler, Chairman and Chief Executive Officer, commented, "Though we
are encouraged by occasional signs of stabilization in the
financial markets, we continue to be adversely affected by the
declines in real estate values, the dramatic decreases in interest
rates, and a prolonged recovery to the worst economic downturn in
80 years. Amidst these crosscurrents, we have determined that our
strategic priorities remain unequivocally focused on improving our
capital ratios and liquidity position. As such, our Board of
Directors and management team continue their steadfast efforts and
determination to preserve capital, manage asset/portfolio risk and
improve our operating efficiencies. We are pleased that in spite of
the credit issues recognized this quarter and the uncertain
economic conditions, the bank remains adequately capitalized with
approximately 8.2% in total risk-based capital. Management
continues to work diligently to raise additional capital in order
to meet the increased regulatory requirements. Once achieved, we
will have available capacity to grow the loan portfolio and thereby
increase the level of earning assets that will further advance our
return to profitability. We remain hopeful that our efforts will be
successful," Mr. Mohler concluded. About Bay National Bank 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. We
believe that Bay National Bank now occupies a unique niche in the
banking industry. We also believe that Bay National Bank is well
positioned between the much larger banks, whose size and
bureaucracy can preclude them from delivering exceptional and
responsive service, and the 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 Bank
has two full-service banking offices, Baltimore and Salisbury,
Maryland, and residential mortgage lending operations in both
Baltimore and the Eastern Shore of Maryland. It offers a complete
range of commercial, private, cash management, retail, and
residential mortgage banking services delivered with a high degree
of respect and integrity. The statements in this press release that
our board and management "continue their steadfast efforts and
determination to preserve capital, manage asset/portfolio risk and
improve our operating efficiencies," with respect to raising
additional capital, growing the loan portfolio and increasing
earnings assets after raising such capital, and with respect to our
future return to profitability are not historical facts and as such
constitute "forward-looking statements" as defined by Federal
Securities laws. Such statements 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, our ability to raise additional capital and the amount
of capital we are able to raise, further deterioration in real
estate values and economic conditions generally, and changes in
interest rates, deposit flows and loan demand, as well as changes
in 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 SEPTEMBER 30, 2009 and 2008 (dollars in thousands,
except per share data) September 30, September 30, 2009 2008
--------- --------- Total assets $297,528 $274,123 Cash and due
from banks 59,931 555 Federal funds sold and other overnight
investments 943 16,603 Investment securities available for sale
20,914 - Other equity securities 1,151 1,240 Loans, net 197,185
237,957 Deposits 277,531 233,344 Short-term borrowings - 15,717
Subordinated debt 8,000 8,000 Stockholders' equity 10,797 16,033
Common shares outstanding 2,154,301 2,153,101 Book value per share
$5.01 $7.45 Ratio of interest earning assets to interest bearing
liabilities 121.41 % 120.84 % Stockholders' equity as a percentage
of assets 3.63 % 5.85 % SELECTED UNAUDITED FINANCIAL RATIOS FOR THE
NINE MONTHS ENDED SEPTEMBER 30, 2009 and 2008 Weighted average
yield/rate on: YTD 2009 YTD 2008 -------- -------- Loans 5.16 %
6.34 % Investments and interest bearing cash balances .81 % 1.52 %
Interest bearing liabilities 2.90 % 3.20 % Net interest spread 1.57
% 2.89 % Net interest margin 2.10 % 3.48 % SELECTED UNAUDITED
OPERATIONAL DATA FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,
2009 and 2008 (dollars in thousands, except per share data) Three
Months Ended Nine Months Ended September 30 September 30 2009 2008
2009 2008 Interest income $3,047 $3,586 $9,291 $11,805 Interest
expense 1,614 1,578 4,919 5,058 Net interest income 1,433 2,008
4,372 6,747 Provision for credit losses 1,800 2,492 5,694 5,517 Net
interest income after provision for credit losses (367) (484)
(1,322) 1,230 Non-interest income 238 203 680 613 Non-interest
expenses 2,275 2,591 6,628 8,266 Loss before income taxes (2,404)
(2,872) (7,270) (6,423) Income tax benefit (957) (1,093) (2,895)
(2,382) Net loss $(1,447) $(1,779) $(4,375) $(4,041) PER COMMON
SHARE Basic net loss per share $(.67) $(.83) $(2.03) $(1.88)
Diluted net loss per share $(.67) $(.83) $(2.03) $(1.88) Average
shares outstanding (Basic) 2,154,301 2,151,825 2,153,778 2,144,519
Average shares outstanding (Diluted) 2,154,301 2,151,825 2,153,778
2,144,519 STOCK PRICE High $3.70 $8.03 $3.70 $11.70 Low $.96 $4.26
$.52 $4.26 Close $1.98 $5.70 $1.98 $5.70 SUPPLEMENTAL INFORMATION:
(dollars in thousands) September 30, September 30, 2009 2008 ----
---- Reconciliation of total deposits to core deposits: Total
deposits $277,531 $233,344 Commercial paper sweep balances - 14,087
National market certificates of deposit (154,910) (72,092) Variable
balance accounts (1 customer as of September 30, 2009 and 2008)
(11,039) (8,373) Portion of variable balance accounts considered to
be core 3,000 3,000 ----- ----- Core deposits $114,582 $169,966
======== ======== DATASOURCE: Bay National Corporation CONTACT:
Hugh W. Mohler, Chairman & CEO, +1-410-427-3707, or David E.
Borowy, Senior Vice President & CFO, +1-410-427-3788, both of
Bay National Corporation
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