BALTIMORE, May 17 /PRNewswire-FirstCall/ -- Bay National Corporation (the "Company") BAYN, the bank holding company for Bay National Bank, today reported a first quarter net loss of $2.8 million or ($1.29) per diluted share, as compared to a net loss of $884 thousand or ($0.41) per diluted share reported for the quarter ending March 31, 2009. The current quarter results are attributable to prudent provisions for potential credit losses of $1.8 million and net charge-offs totaling $2.7 million, the majority of which were divided among commercial real estate, commercial construction and commercial and industrial loans.
Hugh W. Mohler, President and CEO, stated, "The Bank's performance in the first quarter 2010 reflects the volatile and uncertain economic challenges facing our customers and our nation. Non-performing loans are the most significant impediment to earnings compounded by the requisite loan loss provisions. A great deal of time this year will be spent continuing to confront the 'Great Recession' and its direct impact on our asset quality."
At March 31, 2010, the Company had total assets of $282.2 million, a decrease of 2.8% from March 31, 2009. In addition, the Company had total deposits of $275.9 million and net loans of $175.1 million, decreases of 2.0% and 5.3%, respectively, over the March 31, 2009 totals.
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, 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.
SELECTED UNAUDITED FINANCIAL DATA AS OF MARCH 31, 2010 and 2009 (dollars in thousands, except per share data) | |||||||
March 31, 2010 | March 31, 2009 | ||||||
Total assets | $ | 282,197 | $ | 297,235 | |||
Cash and due from banks | 76,470 | 17,833 | |||||
Federal funds sold and other overnight investments | 1,036 | 19,962 | |||||
Investment securities available for sale | 16,783 | - | |||||
Other equity securities | 1,151 | 1,192 | |||||
Loans, net | 175,050 | 241,803 | |||||
Deposits | 275,921 | 274,000 | |||||
Subordinated debt | 8,000 | 8,000 | |||||
Stockholders' (deficit) equity | (3,601) | 14,130 | |||||
Common shares outstanding | 2,154,301 | 2,153,101 | |||||
Book value per share | $ | (1.67) | $ | 6.56 | |||
Ratio of interest earning assets to interest bearing liabilities | 120.73 | % | 116.33 | % | |||
Stockholders' (deficit) equity as a percentage of assets | (1.28) | % | 4.75 | % | |||
SELECTED UNAUDITED FINANCIAL RATIOS FOR THE THREE MONTHS ENDED MARCH 31, 2010 and 2009 | ||||||
Weighted average yield/rate on: | YTD 2010 | YTD 2009 | ||||
Loans | 5.31 | % | 5.10 | % | ||
Investments and interest bearing cash balances | .77 | % | .46 | % | ||
Interest bearing liabilities | 2.08 | % | 3.10 | % | ||
Net interest spread | 1.70 | % | 1.74 | % | ||
Net interest margin | 2.05 | % | 2.29 | % | ||
SELECTED UNAUDITED OPERATIONAL DATA FOR THE THREE MONTHS ENDED MARCH 31, 2010 and 2009 (dollars in thousands, except per share data) | |||||||
Three Months Ended March 31 | |||||||
2010 | 2009 | ||||||
Interest income | $ | 2,685 | $ | 3,188 | |||
Interest expense | 1,229 | 1,679 | |||||
Net interest income | 1,456 | 1,509 | |||||
Provision for credit losses | 1,843 | 1,050 | |||||
Net interest (loss) income after provision for credit losses | (387) | 459 | |||||
Non-interest income | 202 | 182 | |||||
Non-interest expenses | 2,588 | 2,109 | |||||
Loss before income taxes | (2,773) | (1,468) | |||||
Income tax benefit | - | (584) | |||||
Net loss | $ | (2,773) | $ | (884) | |||
PER COMMON SHARE | |||||||
Basic net loss per share | $ | (1.29) | $ | (.41) | |||
Diluted net loss per share | $ | (1.29) | $ | (.41) | |||
Average shares outstanding (Basic) | 2,154,301 | 2,153,101 | |||||
Average shares outstanding (Diluted) | 2,154,301 | 2,153,101 | |||||
STOCK PRICE | |||||||
High | $ | 2.24 | $ | 2.63 | |||
Low | $ | 1.10 | $ | .52 | |||
Close | $ | 1.17 | $ | 1.37 | |||
SUPPLEMENTAL INFORMATION: (dollars in thousands) | |||||||
Reconciliation of total deposits to core deposits: | March 31, | March 31, | |||||
Total deposits | $ | 275,921 | $ | 274,000 | |||
National market certificates of deposit | (165,785) | (132,855) | |||||
Variable balance accounts (1 customer as of March 31, 2010 and 2009) | (6,591) | (8,048) | |||||
Portion of variable balance accounts considered to be core | 3,000 | 3,000 | |||||
Core deposits | $ | 106,545 | $ | 136,097 | |||
SOURCE Bay National Corporation
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