COLUMBIA, Md., July 24, 2017 (GLOBE NEWSWIRE) — Bay Bancorp, Inc. (“Bay”) (NASDAQ:BYBK), the savings and loan holding company for Bay Bank, FSB (“Bank”), announced today net income increased to $1.23 million or $0.12 per basic and $0.11 per diluted common share for the second quarter of 2017 over the $0.96 million or $0.09 per basic and diluted common share recorded for the first quarter of 2017. Net income for the second quarter of 2016 was $0.45 million or $0.04 per basic and diluted common share. Bay reported net income of $2.18 million or $0.21 per basic and $0.20 per diluted common share for the first half of 2017, compared to $0.64 million or $0.06 per basic and diluted common share for the first half of 2016. Net loans increased by $14.4 million or 2.9% when compared to March 31, 2017. The Bank now has total assets exceeding $646 million and 11 branches in the Baltimore-Washington region, and is the fifth largest community bank headquartered in the Baltimore region based upon deposit market share.
Commenting on the announcement, Joseph J. Thomas, President and CEO, said, “I am gratified to see our team sustain and build upon the company’s higher level of growth and profitability in the second quarter of 2017. We grew loans and deposits at a 12% and 10% on an annualized basis, respectively, in the three-month period ending June 30, 2017. Along with the organic growth, our low cost core deposit funding and improved operational efficiencies drove the company’s net income before taxes to $1.97 million, a 28% increase over the $1.54 million recorded for the quarter ended March 31, 2017. We are also able to improve asset quality through resolutions of acquired loans and our nonperforming assets decreased 36% on an annualized basis to $14.6 million at June 30, 2017 from $16.1 million at March 31, 2017. With higher levels of profitability, excess capital and strong asset quality, we are well positioned to execute our ongoing growth plan as the bank built by entrepreneurs for entrepreneurs.”
Highlights from the First Six Months of 2017
The Bank continued organic net growth in the second quarter of 2017. Net loan growth was favorable and targeted core deposit growth was strong. Planned declines in certificate of deposit balances following the successful closing of Bay’s merger with Hopkins Bancorp, Inc. and the related merger of Hopkins Federal Savings Bank into the Bank (collectively, the “Hopkins Merger”) led to an attractive 0.39% cost of funds for the second quarter of 2017. Bay has strong liquidity and capital positions along with capacity for future growth, with total regulatory capital to risk weighted assets of approximately 12.82% at June 30, 2017. The Bank has a record of success in acquisitions and acquired problem asset resolutions and had $7.3 million in remaining net purchase discounts on acquired loan portfolios at June 30, 2017.
Specific highlights are listed below:
- Return on average assets for the three-month period ended June 30, 2017 was 0.78% as compared to 0.63% and 0.38% for the three-month periods ended March 31, 2017 and June 30, 2016, respectively, and return on average equity for the three-month period ended June 30, 2017 was 7.4%, as compared to 5.9% and 2.7% for the three-month periods ended March 31, 2017 and June 30, 2016, respectively.
- With consistent organic growth, total assets were $646 million at June 30, 2017 compared to $633 million at March 31, 2017 and $496 million at June 30, 2016.
- Total loans were $510 million at June 30, 2017, an increase of 2.9% from $495 million at March 31, 2017, an increase of 4.7% from $487 million at December 31, 2016 and an increase of 22.2% from $417 million at June 30, 2016.
- Total deposits were $536 million at June 30, 2017, an increase of 1.9% from $526 million at March 31, 2017, an increase of 1.8% from $526 million at December 31, 2016 and an increase of 47.6% from $363 million at June 30, 2016. Non-interest bearing deposits were $120 million at June 30, 2017, an increase of 25% from $96 million at June 30, 2016.
- Net interest income for the three-month period ended June 30, 2017 totaled $6.3 million, compared to $5.8 million for the first quarter of 2017 and $4.9 million for the same period of 2016. Interest income associated with discount accretion on purchased loans, deferred costs and deferred fees will vary due to the timing and nature of loan principal payments. Earning asset leverage was the primary driver in year-over-year results, as average earning loans and investments increased to $563 million for the three-month period ended June 30, 2017, compared to $432 million for the same period of 2016.
- Net interest margin for the three- and six-month period ended June 30, 2017 was 4.27% and 4.16%, slightly less than the 4.34% and 4.28%, respectively, for the same periods of 2016. The margin for the six-month period ended June 30, 2017 reflects the variable pace of discount accretion recognition within interest income and the impact of fair value amortization on the interest expense of acquired deposits, and the higher level of investments, including interest bearing federal funds acquired in the Hopkins Merger.
- Nonperforming assets decreased to $14.6 million at June 30, 2017 from $16.1 million at March 31, 2017 and was $15.8 million at December 31, 2016, and $9.1 million at June 30, 2016. The first quarter of 2017 decreases resulted primarily from continued resolution of acquired nonperforming loans.
- The provision for loan losses for the three- and six-month period ended June 30, 2017 was $0.52 million and $0.96 million, respectively, compared to $0.36 million and $0.66 million, respectively, for the same periods of 2016. The increases for the 2017 periods were primarily the result of increases in loan originations. As a result, the allowance for loan losses was $3.61 million at June 30, 2017, representing 0.71% of total loans, compared to $3.16 million, or 0.64% of total loans, at March 31, 2017 and $2.29 million, or 0.55% of total loans, at June 30, 2016. Management expects both the allowance for loan losses and the related provision for loan losses to increase in the future periods due to the gradual accretion of the discount on the acquired loan portfolios and an increase in new loan originations.
Balance Sheet Review
Total assets were $646 million at June 30, 2017, increases of $13 million, or 2%, $26 million, or 4%, and $150 million, or 30%, when compared to March 31, 2017, December 31, 2016 and June 30, 2016, respectively. Investment securities increased by $39 million, or 144%, when compared to June 30, 2016, while loans held for sale decreased by $2 million, or 46%, over the same period.
Total deposits were $536 million at June 30, 2017, an increase of $10 million or 2% compared to the $526 million at March 31, 2017, an increase of $10 million or 2% compared to the $526 million at December 31, 2016 and an increase of $173 million or 48% compared to the $363 million at June 30, 2016. Activity included normal cyclical deposit fluctuations and an $8 million increase in non-interest bearing deposits. Short-term borrowings from the Federal Home Loan Bank increased to $35 million compared to $34 million at March 31, 2017.
Stockholders’ equity increased to $69.3 million at June 30, 2017, from $67.3 million at March 31, 2017, $65.9 million at December 31, 2016, and $67.5 million at June 30, 2016. These increases related primarily to corporate earnings, with the increase over the second quarter of 2016 being offset by the $2.4 million decline related to the purchase of 568,436 shares of Bay’s common stock. The combined activity improved the book value of Bay’s common stock to $6.52 per share at June 30, 2017, compared to $6.38 per share at March 31, 2017, $6.29 per share at December 31, 2016 and $6.18 per share at June 30, 2016.
In the third quarter of 2016, the Board of Directors authorized an additional stock purchase program, authorizing Bay to purchase an additional 250,000 shares of its common stock over a 12-month period in open market and/or through privately negotiated transactions, at Bay’s discretion. During the third quarter of 2016, Bay purchased 150,000 shares at an average price of $5.10 per share along with a purchase of 418,436 shares through a privately negotiated transaction at an average price of $5.18 per share. Bay Bancorp has not elected to repurchase additional shares since that time. As of June 30, 2017, Bay has 250,000 shares remaining under the third quarter 2016 purchase authorization. The Board may modify, suspend or discontinue the program at any time.
Nonperforming assets, which consist of nonaccrual loans, troubled debt restructurings, accruing loans past due 90 days or more, and real estate acquired through foreclosure, decreased to $14.6 million at June 30, 2017 from $16.1 million at March 31, 2017, from $15.8 million at December 31, 2016 and from $9.1 million at June 30, 2016. The changes were driven by loans acquired in the Hopkins Merger offset by decreases in purchased credit impaired loans. Nonperforming assets represented 2.26% of total assets at June 30, 2017, compared to 2.54% at March 31, 2017, 2.55% at December 31, 2016 and 1.84% at June 30, 2016.
At June 30, 2017, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was approximately 12.15% at June 30, 2017 as compared to 12.29% at March 31, 2017, 12.32% at December 31, 2016 and 15.56% at June 30, 2016. Liquidity remained strong due to managed cash and cash equivalents, borrowing lines with the FHLB of Atlanta, the Federal Reserve and correspondent banks, and the size and composition of the investment portfolio.
Review of Financial Results
For the three-month periods ended June 30, 2017 and 2016
Net income for the three-month period ended June 30, 2017 was $1.23 million, compared to net income of $.96 million and $0.45 million for the three-month periods ended March 31, 2017 and June 30, 2016, respectively.
Net interest income for the three-month period ended June 30, 2017 totaled $6.3 million compared to $5.8 million for the previous quarter and $4.9 million for the same period of 2016. Interest income resulted from interest-earning asset growth from expansion of the Bay originated loan portfolio, selective investment purchases and the Hopkins Merger. As of June 30, 2017, the remaining net loan discounts on the Bank’s loan portfolio totaled $7.3 million.
Noninterest income for the three-month period ended June 30, 2017 was $1.4 million, up slightly when compared to the $1.3 million for the three-month period ended June 30, 2016 which included $0.21 million of security sale gains. Changes for the second quarter of 2017 were primary related to a $0.25 million increase in electronic banking fees.
Noninterest expense reduction continues to be a key focus for 2017 net income improvement. Despite 32% growth in average assets, for the three-month period ended June 30, 2017, noninterest expense was $5.2 million, compared to $5.1 million for the same period of 2016. The primary contributors to the change when compared to the second quarter of 2016 was a $0.2 million decrease in occupancy and foreclosed property costs, offset by a $0.3 million increase in salaries, employee benefit, professional and data processing expenses.
For the six-month periods ended June 30, 2017 and 2016
Net income for the six-month period ended June 30, 2017 was $2.18 million, compared to net income of $0.64 million for the six-month period ended June 30, 2016.
Net interest income for the six-month period ended June 30, 2017 totaled $12.18 million compared to $9.62 million for the same period of 2016. Interest income resulted from interest-earning asset growth from expansion of the Bay originated loan portfolio, selective investment purchases and the Hopkins Merger.
Noninterest income for the six-month period ended June 30, 2017 was $2.68 million, up slightly when compared to the $2.52 million for the six-month period ended June 30, 2016 which included $0.49 million of security sale gains. Changes for the second quarter of 2017 were primary related to a $0.36 million increase in electronic banking fees and a $0.33 million increase in other noninterest income related to increase bank owned life insurance earnings.
Noninterest expense was $10.39 million, compared to $10.44 million for the same period of 2016. The primary contributors to the change when compared to the second quarter of 2016 was a $0.39 million decrease in occupancy and foreclosed property costs, offset by a $0.33 million increase in salaries, employee benefit, data processing, core deposit intangible amortization and loan collection expenses.
Bay Bancorp, Inc. Information
Bay is a financial holding company and a savings and loan holding company headquartered in Columbia, Maryland. Through the Bank, Bay serves the community with a network of 11 branches strategically located throughout the Baltimore Metropolitan Statistical Area, particularly Baltimore City and the Maryland counties of Baltimore Washington corridor. The Bank serves small and medium size businesses, professionals and other valued customers by offering a broad suite of financial products and services, including on-line and mobile banking, commercial banking, cash management, mortgage lending and retail banking. The Bank funds a variety of loan types including commercial and residential real estate loans, commercial term loans and lines of credit, consumer loans and letters of credit. Additional information is available at www.baybankmd.com.
Forward-Looking Statements
The statements contained herein that are not historical facts are forward-looking statements (as defined by the Private Securities Litigation Reform Act of 1995) based on management’s current expectations and beliefs concerning future developments and their potential effects on Bay. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Bay. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. These projections involve risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of the periodic reports filed by Bay with the Securities and Exchange Commission entitled “Risk Factors”.
| BAY BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||
| 2017 | 2017 | December 31, |
2016 | |||||||||||||
| (unaudited) | (unaudited) | 2016 | (unaudited) | |||||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 8,137,129 | $ | 5,981,700 | $ | 7,591,685 | $ | 6,382,734 | ||||||||
| Interest bearing deposits with banks and federal funds sold | 33,529,073 | 36,822,635 | 32,435,771 | 20,734,154 | ||||||||||||
| Total Cash and Cash Equivalents | 41,666,202 | 42,804,335 | 40,027,456 | 27,116,888 | ||||||||||||
| Investment securities available for sale, at fair value | 62,462,092 | 64,455,089 | 60,232,727 | 22,427,009 | ||||||||||||
| Investment securities held to maturity, at amortized cost | 1,116,070 | 1,137,200 | 1,158,238 | 1,199,284 | ||||||||||||
| Restricted equity securities, at cost | 2,364,795 | 2,322,295 | 1,823,195 | 3,285,595 | ||||||||||||
| Loans held for sale | 2,893,943 | 848,975 | 1,613,497 | 5,382,494 | ||||||||||||
| Loans, net of deferred fees and costs | 509,595,599 | 495,236,254 | 487,103,713 | 417,169,593 | ||||||||||||
| Less: Allowance for loan losses | (3,608,484 | ) | (3,159,769 | ) | (2,823,153 | ) | (2,292,950 | ) | ||||||||
| Loans, net | 505,987,115 | 492,076,485 | 484,280,560 | 414,876,643 | ||||||||||||
| Real estate acquired through foreclosure | 1,147,546 | 564,678 | 1,224,939 | 1,467,104 | ||||||||||||
| Premises and equipment, net | 3,717,494 | 3,835,945 | 3,882,343 | 4,710,947 | ||||||||||||
| Bank owned life insurance | 15,963,231 | 15,844,759 | 15,729,302 | 5,670,940 | ||||||||||||
| Core deposit intangible | 2,596,967 | 2,794,844 | 3,030,309 | 2,276,052 | ||||||||||||
| Deferred tax assets, net | 2,715,618 | 2,890,703 | 2,984,718 | 2,789,456 | ||||||||||||
| Accrued interest receivable | 1,870,876 | 1,921,253 | 1,884,945 | 1,334,104 | ||||||||||||
| Accrued taxes receivable | 259,386 | 660,993 | 1,153,102 | 1,845,339 | ||||||||||||
| Prepaid expenses | 842,871 | 972,721 | 1,001,723 | 960,729 | ||||||||||||
| Other assets | 335,360 | 220,863 | 276,540 | 261,923 | ||||||||||||
| Total Assets | $ | 645,939,566 | $ | 633,351,138 | $ | 620,303,594 | $ | 495,604,507 | ||||||||
| LIABILITIES | ||||||||||||||||
| Noninterest-bearing deposits | $ | 120,284,335 | $ | 112,411,694 | $ | 111,378,694 | $ | 95,955,343 | ||||||||
| Interest-bearing deposits | 415,637,347 | 413,390,788 | 415,079,700 | 267,219,013 | ||||||||||||
| Total Deposits | 535,921,682 | 525,802,482 | 526,458,394 | 363,174,356 | ||||||||||||
| Short-term borrowings | 35,000,000 | 34,000,000 | 20,000,000 | 60,575,000 | ||||||||||||
| Defined benefit pension liability | 670,712 | 964,334 | 994,156 | 1,328,285 | ||||||||||||
| Accrued expenses and other liabilities | 5,282,541 | 5,302,656 | 6,923,818 | 3,029,265 | ||||||||||||
| Total Liabilities | 576,874,935 | 566,069,472 | 554,376,368 | 428,106,906 | ||||||||||||
| STOCKHOLDERS’ EQUITY | ||||||||||||||||
| Common stock – par value $1.00, authorized 20,000,000 shares, issued and outstanding 10,626,404, 10,543,862, 10,456,098 and 10,918,228 shares as of June 30, 2017, March 31, 2017, December 30, 2016 and June 30, 2016, respectively. | 10,626,404 | 10,543,862 | 10,456,098 | 10,918,228 | ||||||||||||
| Additional paid-in capital | 41,573,486 | 41,187,024 | 40,814,285 | 42,804,154 | ||||||||||||
| Retained earnings | 16,609,137 | 15,383,778 | 14,426,969 | 13,302,573 | ||||||||||||
| Accumulated other comprehensive income | 455,604 | 167,002 | 30,383 | 472,646 | ||||||||||||
| Total controlling interest | 69,264,631 | 67,281,666 | 65,727,735 | 67,497,601 | ||||||||||||
| Non-controlling interest | – | – | 199,491 | – | ||||||||||||
| Total Stockholders’ Equity | 69,264,631 | 67,281,666 | 65,927,226 | 67,497,601 | ||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 646,139,566 | $ | 633,351,138 | $ | 620,303,594 | $ | 495,604,507 | ||||||||
| BAY BANCORP, INC. AND SUBSIDIARY | ||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||
| Interest income: | ||||||||||||
| Interest and fees on loans | $ | 6,429,464 | $ | 4,994,892 | $ | 12,349,608 | $ | 9,839,212 | ||||
| Interest on loans held for sale | 13,026 | 38,786 | 19,908 | 78,452 | ||||||||
| Interest and dividends on securities | 388,434 | 205,639 | 739,319 | 417,023 | ||||||||
| Interest on deposits with banks and federal funds sold | 67,333 | 12,181 | 145,009 | 31,226 | ||||||||
| Total Interest Income | 6,898,257 | 5,251,498 | 13,253,844 | 10,365,913 | ||||||||
| Interest expense: | ||||||||||||
| Interest on deposits | 444,997 | 292,480 | 900,847 | 601,657 | ||||||||
| Interest on Fed Funds Purchased | 89 | 28 | 89 | 28 | ||||||||
| Interest on short-term borrowings | 107,930 | 79,784 | 168,134 | 143,579 | ||||||||
| Total Interest Expense | 553,016 | 372,292 | 1,069,070 | 745,264 | ||||||||
| Net Interest Income | 6,345,241 | 4,879,206 | 12,184,774 | 9,620,649 | ||||||||
| Provision for loan losses | 522,323 | 357,533 | 962,844 | 655,533 | ||||||||
| Net interest income after provision for loan losses | 5,822,918 | 4,521,673 | 11,221,930 | 8,965,116 | ||||||||
| Noninterest income: | ||||||||||||
| Payment sponsorship fees | 844,810 | 591,550 | 1,501,002 | 1,142,559 | ||||||||
| Mortgage banking fees and gains | 199,447 | 262,736 | 382,391 | 421,283 | ||||||||
| Service charges on deposit accounts | 79,637 | 77,013 | 142,269 | 147,627 | ||||||||
| Gain on securities sold | – | 213,571 | 5,521 | 486,534 | ||||||||
| Other noninterest income | 228,776 | 180,133 | 647,849 | 318,077 | ||||||||
| Total Noninterest Income | 1,352,670 | 1,325,003 | 2,679,032 | 2,516,080 | ||||||||
| Noninterest expenses: | ||||||||||||
| Salary and employee benefits | 2,924,598 | 2,784,504 | 5,781,842 | 5,673,960 | ||||||||
| Occupancy and equipment expenses | 667,228 | 809,075 | 1,424,873 | 1,680,270 | ||||||||
| Legal, accounting and other professional fees | 295,494 | 217,453 | 528,450 | 528,014 | ||||||||
| Data processing and item processing services | 304,718 | 252,822 | 632,512 | 534,814 | ||||||||
| FDIC insurance costs | 101,928 | 86,702 | 166,942 | 164,181 | ||||||||
| Advertising and marketing related expenses | 122,849 | 108,211 | 147,169 | 140,739 | ||||||||
| Foreclosed property expenses and OREO sales, net | 21,234 | 96,106 | 38,093 | 170,585 | ||||||||
| Loan collection costs | 36,176 | 13,790 | 70,842 | 34,590 | ||||||||
| Core deposit intangible amortization | 197,876 | 155,325 | 433,341 | 348,133 | ||||||||
| Merger and acquisition related expenses | – | 131,333 | 149,543 | 188,590 | ||||||||
| Other noninterest expenses | 531,495 | 450,654 | 1,011,550 | 972,096 | ||||||||
| Total Noninterest Expenses | 5,203,596 | 5,105,975 | 10,385,157 | 10,435,972 | ||||||||
| Income before income taxes | 1,971,992 | 740,701 | 3,515,805 | 1,045,224 | ||||||||
| Income tax expense | 746,633 | 291,597 | 1,333,638 | 409,721 | ||||||||
| Net income | 1,225,359 | 449,104 | 2,182,167 | 635,503 | ||||||||
| Basic net income per common share | $ | 0.12 | $ | 0.04 | $ | 0.21 | $ | 0.06 | ||||
| Diluted net income per common share | $ | 0.11 | $ | 0.04 | $ | 0.20 | $ | 0.06 | ||||
| BAY BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | ||||||||||||||||||
| For the Six Months Ended June 30, 2017 and 2016 | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Accumulated | ||||||||||||||||||
| Additional | Other | Non- | ||||||||||||||||
| Common | Paid-in | Retained | Comprehensive | controlling | ||||||||||||||
| Stock | Capital | Earnings | Income (loss) | Interest | Total | |||||||||||||
| Balance December 31, 2015 | $ | 11,062,932 | $ | 43,378,927 | $ | 12,667,070 | $ | 573,560 | $ | – | $ | 67,682,489 | ||||||
| Net income | – | – | 635,503 | – | – | 635,503 | ||||||||||||
| Other comprehensive income | – | (100,914 | ) | – | (100,914 | ) | ||||||||||||
| Stock-based compensation | – | 68,773 | – | – | – | 68,773 | ||||||||||||
| Issuance of restricted common stock | 15,296 | (15,296 | ) | – | – | – | ||||||||||||
| Issuance of common stock under stock option plan | 15,000 | 56,250 | – | – | – | 71,250 | ||||||||||||
| Repurchase of common stock | (175,000 | ) | (684,500 | ) | – | – | – | (859,500 | ) | |||||||||
| Balance June 30, 2016 | $ | 10,918,228 | $ | 42,804,154 | $ | 13,302,573 | $ | 472,646 | $ | – | $ | 67,497,601 | ||||||
| Accumulated | ||||||||||||||||||
| Additional | Other | Non- | ||||||||||||||||
| Common | Paid-in | Retained | Comprehensive | controlling | ||||||||||||||
| Stock | Capital | Earnings | Income (loss) | Interest | Total | |||||||||||||
| Balance December 31, 2016 | $ | 10,456,098 | $ | 40,814,285 | $ | 14,426,969 | $ | 30,383 | $ | 199,491 | $ | 65,927,226 | ||||||
| Net income | – | – | 2,182,167 | – | – | 2,182,167 | ||||||||||||
| Sale of iReverse | – | – | 1 | – | (199,491 | ) | (199,490 | ) | ||||||||||
| Other comprehensive income | – | – | – | 425,221 | – | 425,221 | ||||||||||||
| Stock-based compensation | – | 128,079 | – | – | – | 128,079 | ||||||||||||
| Issuance of common stock under stock option plan | 170,306 | 631,122 | – | – | – | 801,428 | ||||||||||||
| Balance June 30, 2017 | $ | 10,626,404 | $ | 41,573,486 | $ | 16,609,137 | $ | 455,604 | $ | – | $ | 69,264,631 | ||||||
| BAY BANK, FSB | ||||||||||||||||||
| CAPITAL RATIOS | ||||||||||||||||||
| To Be Well | ||||||||||||||||||
| Capitalized Under | ||||||||||||||||||
| To Be Considered |
Prompt Corrective | |||||||||||||||||
| Actual | Adequately Capitalized |
Action Provisions | ||||||||||||||||
| Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||
| As of June 30, 2017: | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| Total Risk-Based Capital Ratio | $ | 69,071 | 12.82 | % | $ | 43,094 | 8.00 | % | $ | 53,867 | 10.00 | % | ||||||
| Tier I Risk-Based Capital Ratio | $ | 65,463 | 12.15 | % | $ | 32,320 | 6.00 | % | $ | 43,094 | 8.00 | % | ||||||
| Common Equity Tier I Capital Ratio | $ | 65,463 | 12.15 | % | $ | 24,240 | 4.50 | % | $ | 35,014 | 6.50 | % | ||||||
| Leverage Ratio | $ | 65,463 | 10.44 | % | $ | 25,086 | 4.00 | % | $ | 31,357 | 5.00 | % | ||||||
| As of March 31, 2017: | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| Total Risk-Based Capital Ratio | $ | 67,183 | 12.90 | % | $ | 41,674 | 8.00 | % | $ | 52,093 | 10.00 | % | ||||||
| Tier I Risk-Based Capital Ratio | $ | 64,023 | 12.29 | % | $ | 31,256 | 6.00 | % | $ | 41,674 | 8.00 | % | ||||||
| Common Equity Tier I Capital Ratio | $ | 64,023 | 12.29 | % | $ | 23,442 | 4.50 | % | $ | 33,860 | 6.50 | % | ||||||
| Leverage Ratio | $ | 64,023 | 10.34 | % | $ | 24,770 | 4.00 | % | $ | 30,963 | 5.00 | % | ||||||
| As of December 31, 2016: | ||||||||||||||||||
| Total Risk-Based Capital Ratio | $ | 65,883 | 12.87 | % | $ | 40,959 | 8.00 | % | $ | 51,199 | 10.00 | % | ||||||
| Tier I Risk-Based Capital Ratio | $ | 63,057 | 12.32 | % | $ | 30,719 | 6.00 | % | $ | 40,959 | 8.00 | % | ||||||
| Common Equity Tier I Capital Ratio | $ | 63,057 | 12.32 | % | $ | 23,039 | 4.50 | % | $ | 33,279 | 6.50 | % | ||||||
| Leverage Ratio | $ | 63,057 | 10.45 | % | $ | 24,133 | 4.00 | % | $ | 30,166 | 5.00 | % | ||||||
| As of June 30, 2016: | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| Total Risk-Based Capital Ratio | $ | 68,459 | 16.10 | % | $ | 34,010 | 8.00 | % | $ | 42,513 | 10.00 | % | ||||||
| Tier I Risk-Based Capital Ratio | $ | 66,166 | 15.56 | % | $ | 25,508 | 6.00 | % | $ | 34,010 | 8.00 | % | ||||||
| Common Equity Tier I Capital Ratio | $ | 66,166 | 15.56 | % | $ | 19,131 | 4.50 | % | $ | 27,634 | 6.50 | % | ||||||
| Leverage Ratio | $ | 66,166 | 13.99 | % | $ | 18,920 | 4.00 | % | $ | 23,650 | 5.00 | % | ||||||
| BAY BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||||||||
| SELECTED FINANCIAL DATA | ||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | Year Ended | ||||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | December 31, | |||||||||||||||||||
| 2017 | 2017 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||
| Financial Data: | ||||||||||||||||||||||||
| Assets | $ | 645,939,566 | $ | 633,351,138 | $ | 495,604,507 | $ | 645,939,566 | $ | 495,604,507 | $ | 620,303,594 | ||||||||||||
| Investment securities | 63,578,162 | 65,592,289 | 23,626,293 | 63,578,162 | 23,626,293 | 61,390,965 | ||||||||||||||||||
| Loans (net of deferred fees and costs) | 509,595,599 | 495,236,254 | 417,169,593 | 509,595,599 | 417,169,593 | 487,103,713 | ||||||||||||||||||
| Allowance for loan losses | (3,608,484 | ) | (3,159,769 | ) | (2,292,950 | ) | (3,608,484 | ) | (2,292,950 | ) | (2,823,153 | ) | ||||||||||||
| Deposits | 535,921,682 | 525,802,482 | 363,174,356 | 535,921,682 | 363,174,356 | 526,458,394 | ||||||||||||||||||
| Borrowings | 35,000,000 | 34,000,000 | 60,575,000 | 35,000,000 | 60,575,000 | 20,000,000 | ||||||||||||||||||
| Equity attributable to non-controlling interest | 199,491 | |||||||||||||||||||||||
| Equity attributable to common shareholders | 69,264,631 | 67,281,664 | 67,497,601 | 69,264,629 | 67,497,601 | 65,727,735 | ||||||||||||||||||
| Net income – Bay Bancorp | 1,225,359 | 956,808 | 449,104 | 2,182,167 | 635,503 | 1,759,899 | ||||||||||||||||||
| Net income – Non-controlling interest | – | – | – | 199,491 | ||||||||||||||||||||
| Average Balances: (unaudited) | ||||||||||||||||||||||||
| Assets | 626,555,440 | 619,122,418 | 473,431,406 | 623,144,639 | 475,089,326 | 536,333,860 | ||||||||||||||||||
| Investment securities | 65,521,366 | 62,405,770 | 28,211,638 | 64,143,553 | 28,839,124 | 40,537,934 | ||||||||||||||||||
| Loans (net of deferred fees and costs) | 496,771,961 | 492,182,265 | 403,746,480 | 493,232,720 | 399,793,073 | 436,793,412 | ||||||||||||||||||
| Borrowings | 39,311,475 | 26,714,286 | 41,074,725 | 32,324,503 | 42,670,330 | 26,493,284 | ||||||||||||||||||
| Deposits | 515,528,700 | 519,350,426 | 361,823,111 | 518,325,526 | 361,716,579 | 443,144,111 | ||||||||||||||||||
| Stockholders’ equity | 66,604,157 | 66,179,866 | 66,826,333 | 66,366,818 | 67,195,502 | 66,146,705 | ||||||||||||||||||
| Performance Ratios: | ||||||||||||||||||||||||
| Annualized return on average assets | 0.78 | % | 0.63 | % | 0.38 | % | 0.71 | % | 0.27 | % | 0.37 | % | ||||||||||||
| Annualized return on average equity | 7.38 | % | 5.86 | % | 2.70 | % | 6.63 | % | 1.91 | % | 2.96 | % | ||||||||||||
| Yield on average interest-earning assets | 4.65 | % | 4.38 | % | 4.67 | % | 4.52 | % | 4.61 | % | 4.50 | % | ||||||||||||
| Rate on average interest-bearing liabilities | 0.50 | % | 0.48 | % | 0.49 | % | 0.49 | % | 0.49 | % | 0.50 | % | ||||||||||||
| Net interest spread | 4.14 | % | 3.90 | % | 4.19 | % | 4.03 | % | 4.12 | % | 4.00 | % | ||||||||||||
| Net interest margin | 4.27 | % | 4.02 | % | 4.34 | % | 4.16 | % | 4.28 | % | 4.14 | % | ||||||||||||
| Book value per share | $ | 6.52 | $ | 6.38 | $ | 6.18 | $ | 6.52 | $ | 6.18 | $ | 6.29 | ||||||||||||
| Basic net income per share | 0.12 | 0.09 | 0.04 | 0.21 | 0.06 | 0.16 | ||||||||||||||||||
| Diluted net income per share | 0.11 | 0.09 | 0.04 | 0.20 | 0.06 | 0.16 | ||||||||||||||||||
| June 30, | March 31, | June 30, | December 31, | |||||||||||||||||||||
| 2017 | 2017 | 2016 | 2016 | |||||||||||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||||
| Allowance for loan losses to loans | 0.71 | % | 0.64 | % | 0.55 | % | 0.58 | % | ||||||||||||||||
| Nonperforming loans to avg. loans | 2.70 | % | 3.17 | % | 1.86 | % | 3.02 | % | ||||||||||||||||
| Nonperforming assets to total assets | 2.26 | % | 2.54 | % | 1.84 | % | 2.55 | % | ||||||||||||||||
| Net charge-offs annualized to avg. loans | 0.06 | % | 0.08 | % | 0.01 | % | 0.00 | % | ||||||||||||||||
| Capital Ratios (Bay Bank, FSB): | ||||||||||||||||||||||||
| Total risk-based capital ratio | 12.82 | % | 12.90 | % | 16.10 | % | 12.87 | % | ||||||||||||||||
| Common equity tier 1 capital ratio | 12.15 | % | 12.29 | % | 15.56 | % | 12.32 | % | ||||||||||||||||
| Tier 1 risk-based capital ratio | 12.15 | % | 12.29 | % | 15.56 | % | 12.32 | % | ||||||||||||||||
| Leverage ratio | 10.44 | % | 10.34 | % | 13.99 | % | 10.45 | % | ||||||||||||||||
CONTACT: For investor inquiries contact: Joseph J. Thomas, President and CEO 410-536-7336 [email protected] 7151 Columbia Gateway Drive, Suite A Columbia, MD 21046 For further information contact: Larry D. Pickett, Chief Financial Officer [email protected] 410-312-5415