Market Overview

Bay Bancorp, Inc. Announces Record Second Quarter 2017 Results

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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 %            
                                     

For investor inquiries contact: 

Joseph J. Thomas, President and CEO
410-536-7336
jthomas@baybankmd.com
7151 Columbia Gateway Drive,
Suite A
Columbia, MD 21046

For further information contact: 

Larry D. Pickett, Chief Financial Officer
lpickett@baybankmd.com
410-312-5415

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