BAY NATIONAL CORPORATION 
By The economy continues to suffer the effects of further declines in the value of real estate, which represents a substantial portion of the collateral for non-performing loans. Management is working vigorously to sell properties, increase collateral for non-performing loans, move collateral into real estate owned, and taking appropriate charge-offs to reflect the gap between collateral values and loan balances."
Mr. Mohler continued, "As of
Our continued focus on conserving capital and managing interest rate risk resulted in maintaining capital levels defined as 'adequately capitalized,' by regulatory capital measures. We will diligently monitor and manage our capital in order to preserve and enhance long-term shareholder value."
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,
The statements in this press release that "we will diligently monitor and manage our capital in order to preserve and enhance long-term value" 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, 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 MARCH 31, 2009 and 2008
(dollars in thousands, except per share data)
2009 2008
Total assets $297,235 $267,024
Cash and due from banks 17,833 485
Federal funds sold and other overnight
investments 19,662 14,374
Other equity securities 1,192 1,157
Loans, net 241,803 237,935
Deposits 274,000 231,149
Short-term borrowings - 8,312
Subordinated debt 8,000 8,000
Stockholders' equity 14,130 18,481
Common shares outstanding 2,153,101 2,140,933
Book value per share $6.56 $8.63
Ratio of interest earning assets to interest
bearing liabilities 116.33% 126.77%
Stockholders' equity as a percentage of assets 4.75% 6.92%
SELECTED UNAUDITED FINANCIAL RATIOS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 and 2008
Weighted average yield/rate on: 2009 2008
Loans 5.10% 7.26%
Investments and interest bearing cash balances 80% 1.75%
Interest bearing liabilities 3.10% 3.73%
Net interest spread 1.86% 3.24%
Net interest margin 2.35% 3.97%
SELECTED UNAUDITED OPERATIONAL DATA
FOR THE THREE MONTHS ENDED MARCH 31, 2009 and 2008
(dollars in thousands, except per share data)
Three Months Ended
March 31
2009 2008
Interest income $3,188 $4,365
Interest expense 1,679 1,882
Net interest income 1,509 2,483
Provision for credit losses 1,050 2,468
Net interest income after provision for credit
losses 459 15
Non-interest income 182 208
Non-interest expenses 2,109 2,679
Loss before income taxes (1,468) (2,455)
Income tax benefit (584) (969)
Net loss $(884) $(1,486)
PER COMMON SHARE
Basic net loss per share $(.41) $(.69)
Diluted net loss per share $(.41) $(.69)
Average shares outstanding (Basic) 2,153,101 2,139,845
Average shares outstanding (Diluted) 2,153,101 2,139,845
STOCK PRICE
High $2.63 $11.70
Low $.52 $8.12
Close $1.37 $8.55
SUPPLEMENTAL INFORMATION:
(dollars in thousands)
Reconciliation of total deposits to core March 31, March 31,
deposits: 2009 2008
Total deposits $274,000 $231,149
National market certificates of deposit (132,855) (50,889)
Variable balance accounts (1 customer as of
March 31, 2009 and 2008) (8,048) (6,898)
Portion of variable balance accounts
considered to be core 3,000 3,000
Core deposits $136,097 $176,362
SOURCE Bay National Corporation
