Bay Bancorp, Inc. Announces Increase in 4th Quarter Income Along with Full Year 2016 Results


COLUMBIA, Md., Jan. 30, 2017 (GLOBE NEWSWIRE) -- Bay Bancorp, Inc. (“Bay”) (NASDAQ:BYBK), the savings and loan holding company for Bay Bank, FSB (“Bank”), announced today net income of $1.75 million or basic and diluted net income per common share of $0.16 for the year ended December 31, 2016 compared to net income of $1.93 million or basic and diluted net income per common share of $0.17, for the year ended December 31, 2015.  For the fourth quarter of 2016, Bay reported net income of $0.74 million, or basic and diluted net income per common share of $0.07 compared to net income of $0.37 million, or basic and diluted net income per common share of $0.04 and $0.03, respectively, for the third quarter of 2016.  This was after $1.8 million in one-time merger integration expenses and a $1.0 million bargain purchase gain associated with the Bank’s merger with Hopkins Federal Savings Bank (“the Hopkins Merger”), and net income of $0.51 million, or basic and diluted income per common share of $0.05 for the fourth quarter of 2015.  Pre-tax earnings in the fourth quarter of 2016, were up 43% and 52% when compared to the prior quarter and the fourth quarter of 2015, respectively.  With consistent organic growth, along with the Hopkins Merger, the Bank has total assets exceeded $620 million at December 31, 2016, supported by 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, “We are very proud of our team’s accomplishments this year with over $100 million in new loan originations, successful completion of the Hopkins acquisitions, and leadership transition in numerous key banking, credit and operations roles.  The efforts of our team have translated into significantly higher earnings momentum in the fourth quarter of 2016 with pre-tax, pre-provision earnings, increasing 52% compared to the same period in 2015 before consideration of merger-related costs.  When combined with the Bank’s 2016 stock repurchases, the Return on Equity increased a full 60% over the same period in 2015.  We are well positioned with talent and technology to entrepreneurially serve our small business, private real estate and professional clients in the dynamic and robust Baltimore Washington Corridor and sustain and extend this higher level of earnings in 2017 to continue growing our tangible book value from its $6.30 per share level at year-end 2016.”

Highlights from 2016

The Bank resumed organic net growth in the fourth quarter of 2016 after third quarter completion of the Hopkins Merger.  Net loan growth, particularly after the Hopkins Merger, was favorable and targeted core deposit growth was strong.  Planned declines in certificate of deposit balances prior to and in anticipation of the Hopkins Merger led to an attractive 0.39% cost of funds for the fourth quarter of 2016.  Bay has a strong liquidity and capital position along with capacity for future growth with total regulatory capital to risk weighted assets estimated at 12.9% as of December 31, 2016.  The Bank has a record of success in acquisitions and acquired problem asset resolutions and, at December 31, 2016, had $8.2 million in remaining net purchase discounts on acquired loan portfolios.

Specific highlights are listed below:

  • The return on average assets for the three months and year ended December 31, 2016 was 0.53% and 0.36%, respectively, as compared to 0.43% and 0.40%, respectively, for the same periods of 2015.  The return on average equity for the three months and year ended December 31, 2016 was 4.96% and 2.94%, respectively, as compared to 3.10% and 2.94%, respectively, for the same periods in 2015. 
     
  • Total assets were $620 million at December 31, 2016 compared to $606 million at September 30, 2016 and $491 million at December 31, 2015.
     
  • Total loans were $487 million at December 31, 2016, an increase of 1.0% from $482 million at September 30, 2016, and an increase of 23.9% from $393 million at December 31, 2015.
     
  • Total deposits were $526 million at December 31, 2016, a decrease of 0.9% from $531 million at September 30, 2016, and an increase of 43.3% from $366 million at December 31, 2015.
     
  • Net interest income for the three- and twelve-month periods ended December 31, 2016 totaled $5.9 million and $21.2 million, respectively, compared to $5.1 million and $21.4 million, respectively, for the same periods of 2015.  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 assets, primarily loans and investments, increased to $512 million for the year ended December 31, 2016, compared to $455 million for 2015.
     
  • Net interest margin for the three- and twelve-month periods ended December 31, 2016 was 4.05% and 4.14%, respectively, compared to 4.49% and 4.70%, respectively, for the same periods of 2015.  The margin decrease from 2015 reflects the variable pace of discount accretion recognition within interest income, the impact of fair value amortization on the interest expense of acquired deposits, and the higher level of investments, including interest bearing federal funds sold acquired in the Hopkins Merger.  For the year ended December 31, 2016, the earning asset portfolio yield was influenced by a $1.1 million decline in net discount accretion of purchased loan discounts recognized in interest income when compared to 2015.
     
  • Nonperforming assets increased to $15.8 million at December 31, 2016 from $15.7 million at September 30, 2016, an increase of $0.1 million or 0.6%, and increased $5.5 million or 53.4%, from $10.3 million at December 31, 2015.  The increase compared to 2015 resulted primarily from the Hopkins Merger offset by continued resolution of acquired impaired loans.  All loans acquired in merger agreements include appropriate fair value adjustments.
     
  • The provision for loan losses for the three- and twelve-month periods ended December 31, 2016 was $0.37 million and $1.39 million, respectively, compared to $0.26 million and $1.14 million, respectively, for the same periods of 2015.  The increases for 2016 were primarily the result of growth in the Bank’s originated portfolio, combined with modest increases in qualitative factors used for calculating the required reserve.  As a result, the allowance for loan losses was $2.82 million at December 31, 2016, representing 0.58% of total loans, compared to $2.45 million or 0.51% of total loans at September 30, 2016, and $1.77 million, or 0.45% of total loans, at December 31, 2015.  The allowance for loan losses at December 31, 2016 represents 1.05% of the Bank’s originated portfolio, with the remaining discount on acquired loans mitigating the need for additional loan loss reserves on these portfolios.  Management expects both the allowance for loan losses and the related provision for loan losses to increase in the future due to the gradual accretion of the discount on the acquired loan portfolios and an increase in new loan originations.

Recent Events

During the most recent quarter, the Bank made a $10 million additional investment in Bank Owned Life Insurance “BOLI”.  The BOLI investment, with favorable tax attributes, should positively add to 2017 non-interest income.  The Bank closed the Northern Parkway branch location in December 2016, incurring $0.08 million in closing related costs, which will reduce 2017 operating expenses.  The Bank sold the Joppa Road building that includes a branch location, reducing the Bank’s premises and equipment by nearly 25%.  The Bank has leased back this key branch space under an equitable agreement.  The gain on this sale lease-back transaction was deferred and will be recognized as a reduction of rent expense over the term of the lease.

Balance Sheet Review
            
Total assets were $620 million at December 31, 2016, an increase of $129 million, or 26.3%, when compared to $491 million at December 31, 2015.  The increase was mainly the result of the Hopkins Merger and organic loan and other asset growth.  Investment securities increased by $26 million or 75.8%, for the year, while loans held for investment increased by $94 million or 23.9%, which was primarily driven by the $58 million of loans acquired in the Hopkins Merger.
            
Total deposits were $526 million at December 31, 2016, an increase of $159 million, or 43.3%, when compared to $367 million at December 31, 2015.  The increase was due to the deposits acquired as part of the Hopkins Merger and an increase in non-interest bearing deposits offset by a managed decline in certificates of deposits.  Following the Hopkins Merger, the Bank repaid $75 million of short-term borrowings from the Federal Home Loan Bank.

Stockholders’ equity increased to $65.5 million at December 31, 2016, from $65.2 million at September 30, 2016, and decreased from $67.7 million at December 31, 2015.  The 2016 increase related to corporate earnings, which were offset by the $3.8 million decline related the 2016 repurchase of shares of Bay’s common stock.  The combined activity improved the book value of Bay’s common stock to $6.30 per share at December 31, 2016 compared to $6.29 per share at September 30, 2016 and $6.13 per share at December 31, 2015.

In the first quarter of 2016, the Board of Directors authorized an additional stock purchase program, authorizing Bay to purchase 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.  No additional shares were purchased during the fourth quarter of 2016 as Bay has 254,508 shares remaining under the 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, increased to $15.8 million at December 31, 2016 from $15.7 million at September 30, 2016 and $10.3 million at December 31, 2015.  The changes were driven by loans acquired in the Hopkins Merger offset by decreases in purchased credit impaired loans.  Nonperforming assets represented 2.55% of total assets at December 31, 2016, compared to 2.60% at September 30, 2016 and 2.10% at December 31, 2015.

At December 31, 2016, the Bank remained above all “well-capitalized” regulatory requirement levels.  The Bank’s tier 1 risk-based capital ratio was estimated at 12.31% at December 31, 2016 as compared to 12.28% at September 30, 2016 and 16.14% at December 31, 2015.  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

Net income for the three-months and year ended December 31, 2016 was $0.74 million and $1.75 million, respectively, compared to net income of $0.51 million and $1.93 million, respectively, for the same periods of 2015.  With the changes to net income for the year primarily the result of the $1.03 million Hopkins Merger bargain purchase gain, offset by $1.76 million in merger related expenses, changes were less comparable to prior periods. 

Net interest income for the three months ended December 31, 2016 totaled $5.9 million compared to $5.1 million for the same period of 2015.  Interest income resulting from interest-earning asset growth from the Hopkins Merger and legacy net loan growth was partially offset by a decrease in discount accretion on purchased loans, deferred costs and deferred fees.

Net interest income decreased to $21.2 million for year ended December 30, 2016, from $21.4 million for the same period of 2015.  The decrease was largely the result of a $1.1 million decline in net discount accretion on purchased loans recognized in interest income offset by the growth of earning assets both organically and from the Hopkins Merger. Excluding the impact of the net discount accretion on purchased loans, net interest income increased when compared to 2015.  The net interest margin for the year ended December 31, 2016 decreased to 4.05%, from 4.70% for 2015, due to the decline in discount accretion on loans and deposits.  As of December 31, 2016, the remaining net loan discounts on the Bank’s loan portfolio totaled $8.6 million.

Noninterest income for the three months ended December 31, 2016 was $2.9 million compared to $3.8 million for the three months ended September 30, 2016 and $1.1 million for the three months ended December 31, 2015.  The decrease from the immediately prior quarter related to $1.0 million bargain purchase gain attributed to the Hopkins Merger and a $0.1 million decrease in mortgage banking fees.  The decline from the immediately prior quarter was partially offset by a $0.1 million increase in electronic banking fees and a $0.19 million increase in gains from the sale of certain securities.  The increase from the fourth quarter of 2015 was primarily the result of $1.7 million in loan fees related to the reverse mortgage operation acquired in the Hopkins Merger, along with a $0.1 million increase in electronic banking fees, a $0.1 million increase in gains from the sale of securities.

Noninterest income for the year ended December 31, 2016 was 9.2 million compared to $5.4 million for 2015.  The increase related to the $1.0 million bargain purchase gain attributed to the Hopkins Merger along with $3.09 million of loan broker fees related to the reverse mortgage operation acquired in the Hopkins Merger.  The remainder of the change was primarily the result of $0.39 million increase in gains from the sale of securities, a $0.12 million increase in electronic banking fees, offset by a $0.88 million decrease in mortgage banking fees and gains.

Noninterest expense reduction was a key focus for 2016 net income improvement.  For the three months ended December 31, 2016, noninterest expense was $7.2 million compared to $8.4 million for the prior quarter and $5.2 million for the fourth quarter of 2015.  The primary contributors to the decrease when compared to the third quarter of 2016 were $1.5 million decrease in merger related expenses, and a $0.04 million decrease in salary and employee benefit expense, offset by a $0.3 million increase in expenses related to the reverse mortgage operation and a $0.03 million increase in core deposit intangible expenses.  The primary contributors to the increase when compared to the fourth quarter of 2015 were $1.7 million of expenses related to the reverse mortgage operation, a $0.1 million increase in professional fees, a $0.1 increase in FDIC insurance costs and a $0.1 increase in other expenses, offset by $0.06 million decreases in both foreclosure related expenses and data processing costs.

For the year ended December 31, 2016, noninterest expense was $26.0 million compared to $22.6 million for 2015.  The primary contributors to the increase when compared to 2015 were $1.8 million in merger related expenses and $3.0 million of expenses related to the reverse mortgage brokerage operation.  Excluding the merger and reverse mortgage related expenses, noninterest expenses declined by $1.2 million or 5.5%.  The 2016 decreases, excluding reverse mortgage related expenses, included $0.37 million in salary and employee benefits, $0.18 million in occupancy expense, $0.27 million in professional fees, $0.24 million in loan collection costs, $0.06 million in core deposit intangible amortization and $0.16 million in data processing expenses.

Bay Bancorp, Inc. Information

Bay Bancorp, Inc. is a financial holding company and a savings and loan holding company headquartered in Columbia, Maryland.  Through Bay Bank, FSB, its federal savings bank subsidiary, Bay Bancorp, Inc. 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 the 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 the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company.  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 Bancorp, Inc. with the Securities and Exchange Commission entitled “Risk Factors”.

 

BAY BANCORP, INC. AND SUBSIDIARY             
CONSOLIDATED BALANCE SHEETS             
              
  December 31, September 30,     
  2016  2016  December 31, December 31, 
  (unaudited) (unaudited) 2015  2014  
              
ASSETS             
Cash and due from banks $  7,591,685  $  6,157,165  $  8,059,888  $  7,062,943  
Interest bearing deposits with banks and federal funds sold     32,435,771     40,109,554     26,353,334     9,829,231  
  Total Cash and Cash Equivalents    40,027,456     46,266,719     34,413,222     16,892,174  
              
Investment securities available for sale, at fair value    60,232,727     52,004,599     33,352,233     35,349,889  
Investment securities held to maturity, at amortized cost    1,158,238     1,179,126     1,573,165     1,315,718  
Restricted equity securities, at cost    1,823,195     973,195     2,969,595     1,862,995  
Loans held for sale    1,613,497     2,836,938     4,864,344     7,233,306  
              
Loans, net of deferred fees and costs    487,103,713     482,423,126     393,240,567     393,051,192  
  Less: Allowance for loan losses    (2,823,153)    (2,447,785)    (1,773,009)    (1,294,976) 
  Loans, net    484,280,560     479,975,341     391,467,558     391,756,216  
              
Real estate acquired through foreclosure    1,224,939     1,638,737     1,459,732     1,480,472  
Premises and equipment, net    3,882,343     5,288,283     5,060,802     5,553,957  
Bank owned life insurance    15,729,302     5,700,245     5,611,352     5,485,377  
Core deposit intangible    3,030,309     3,265,774     2,624,184     3,478,282  
Deferred tax assets, net    3,163,423     2,777,633     2,723,557     3,214,100  
Accrued interest receivable     1,884,945     1,736,342     1,271,871     1,306,111  
Accrued taxes receivable    1,153,102     1,532,266     2,775,237     3,122,885  
Prepaid expenses    931,289     941,458     691,372     925,288  
Other assets    283,912     218,860     303,614     285,547  
  Total Assets $  620,419,237   $  606,335,516   $  491,161,838   $  479,942,985   
              
LIABILITIES              
Noninterest-bearing deposits $  111,378,694  $  100,060,567  $  101,838,210  $  91,676,534  
Interest-bearing deposits    415,079,700     431,026,148     265,577,728     296,153,598  
  Total Deposits    526,458,394     531,086,715     367,415,938     387,830,132  
              
Short-term borrowings    20,000,000     1,975,000     52,300,000     22,150,000  
Defined benefit pension liability    1,268,641     1,298,463     829,237   -  
Accrued expenses and other liabilities    6,943,818     6,753,573     2,934,174     3,319,567  
  Total Liabilities    554,670,853     541,113,751     423,479,349     413,299,699  
              
STOCKHOLDERS’ EQUITY             
              
Common stock - par value $1.00, authorized 20,000,000 shares,
issued and outstanding 10,456,098, 10,363,998, 11,062,932 and
11,014,517 shares as of December 30, 2016, September 30, 2016,
December 31, 2015 and September 30, 2015, respectively.
    10,456,098     10,363,998     11,062,932     11,014,517  
Additional paid-in capital     40,814,285     40,526,319     43,378,927     43,228,950  
Retained earnings    14,414,341     13,758,742     12,667,070     10,736,305  
Accumulated other comprehensive income    (135,831)    516,437     573,560     1,663,514  
Total controlling interest    65,548,893     65,165,496     67,682,489     66,643,286  
Non-controlling interest    199,491     56,269   -   -  
Total Stockholders' Equity    65,748,384     65,221,765     67,682,489     66,643,286  
  Total Liabilities and Stockholders' Equity $  620,419,237   $  606,335,516   $  491,161,838   $  479,942,985   
              

 

BAY BANCORP, INC. AND SUBSIDIARY               
CONSOLIDATED STATEMENTS OF INCOME                
(Unaudited) 
                
  Three Months Ended December 31,  Twelve Months Ended December 31,    
   2016   2015  2016  2015   
                
Interest income:               
Interest and fees on loans $  5,983,624  $  5,341,325 $  21,668,074 $  21,907,865   
Interest on loans held for sale    10,727     59,177    120,997    350,833   
Interest and dividends on securities    305,374     102,201    1,034,090    913,511   
Interest on deposits with banks and federal funds sold    81,467     9,174    204,270    37,297   
Total Interest Income    6,381,192     5,511,877    23,027,431    23,209,506   
                
Interest expense:               
Interest on deposits    496,443     379,979    1,658,698    1,761,899   
Interest on Fed Funds Purchased  -   -    28    604   
Interest on short-term borrowings    20,162     25,426    191,408    72,380   
Total Interest Expense    516,605     405,405    1,850,134    1,834,883   
Net Interest Income    5,864,587     5,106,472    21,177,297    21,374,623   
                
Provision for loan losses    374,000     264,326    1,389,533    1,142,522   
Net interest income after provision for loan losses    5,490,587     4,842,146    19,787,764    20,232,101   
                
Noninterest income:               
Electronic banking fees    720,714     575,302    2,524,101    2,402,589   
Mortgage banking fees and gains    158,717     196,037    832,990    1,708,779   
Mortgage brokerage operations    1,679,283   -    3,088,523  -   
Service charges on deposit accounts    49,415     84,591    278,949    313,697   
Bargain purchase gain (adjustment)    (9,386)  -    1,025,070  -   
Gain on securities sold    194,448     92,945    680,982    289,912   
Other income     93,631     146,158    783,447    658,992   
Total Noninterest Income    2,886,822     1,095,033    9,214,062    5,373,969   
                
Noninterest expenses:               
Salary and employee benefits    3,793,641     2,709,041    13,303,229    11,666,515   
Occupancy and equipment expenses    836,932     775,141    3,378,446    3,559,576   
Legal, accounting and other professional fees    304,555     231,693    1,091,703    1,361,907   
Data processing and item processing services    313,020     378,587    1,212,471    1,372,688   
FDIC insurance costs    158,721     101,744    464,616    403,502   
Advertising and marketing related expenses    259,867     97,692    612,245    377,906   
Foreclosed property expenses and OREO sales, net    146,710     207,521    474,652    463,949   
Loan collection costs    65,816     31,605    106,361    343,521   
Core deposit intangible amortization    235,466     197,723    790,876    854,098   
Merger and acquisition related expenses    49,445     22,097    1,758,337    22,097   
Other expenses    1,081,843     439,954    2,842,102    2,114,881   
Total Noninterest Expenses    7,246,016     5,192,798    26,035,038    22,540,640   
Income before income taxes    1,131,393     744,381    2,966,788    3,065,430   
Income tax expense     332,572     232,201    1,020,026    1,134,665   
Net income  798,821   512,180  1,946,762  1,930,765   
                 
Less:  Net income attributable to non-controlling interest    61,279   -    199,491  -   
Net income available to common stockholders $  737,542  $  512,180 $  1,747,271 $  1,930,765   
                
Basic net income per common share  $0.07  $0.05 $0.16 $0.17   
                
Diluted net income per common share $0.07  $0.05 $0.16 $0.17   
                

 

BAY BANCORP, INC. AND SUBSIDIARY          
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY        
For the Twelve Months Ended December 31, 2016 and 2015        
(Unaudited)             
              
              
         Accumulated    
     Additional   Other Non-   
   Common Paid-in Retained Comprehensive controlling  
   Stock Capital Earnings Income (loss) Interest Total
              
Balance December 31, 2014 $  11,014,517 $  43,228,950 $  10,736,305$  1,663,514 $-$  66,643,286 
              
Net income  -  -    1,930,765 -  -   1,930,765 
Other comprehensive income    -  -   (1,089,954) -   (1,089,954)
                 
Issuance of restricted common stock    16,256    (16,256) - -    - 
Stock-based compensation    -     143,712  - -  -   143,712 
Issuance of common stock under stock option plan    202,651    709,603  - -  -   912,254 
Repurchase of common stock    (170,492)   (687,082) - -  -   (857,574)
Balance December 31, 2015 $  11,062,932 $  43,378,927 $  12,667,070$  573,560 $-$  67,682,489 
              
              
         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  -  -    1,747,271 -    199,491   1,946,762 
Other comprehensive income      -   (709,391) -   (709,391)
Stock-based compensation  -    94,607  - -  -   94,607 
                  
Issuance of restricted common stock    26,962    (26,962) - -  - - 
Issuance of common stock under stock option plan    109,640    416,275  - -  -   525,915 
Repurchase of common stock     (743,436)   (3,048,562) - -  -   (3,791,998)
Balance December 31, 2016 $  10,456,098 $  40,814,285 $  14,414,341$  (135,831)$  199,491$  65,748,384 
              


 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 December 31, 2016:                   
 (unaudited)                   
                     
 Total Risk-Based Capital Ratio $  65,870 12.86% $  40,982 8.00% $  51,227 10.00% 
                     
 Tier I Risk-Based Capital Ratio $  63,044 12.31% $  30,736 6.00% $  40,982 8.00% 
                     
 Common Equity Tier I Capital Ratio $  63,044 12.31% $  23,052 4.50% $  33,298 6.50% 
                     
 Leverage Ratio $  63,044 10.45% $  24,135 4.00% $  30,169 5.00% 
                     
 As of September 30, 2016:                   
 (unaudited)                   
                     
 Total Risk-Based Capital Ratio $  68,646 13.62% $  40,326 8.00% $  50,408 10.00% 
                     
 Tier I Risk-Based Capital Ratio $  66,198 13.13% $  30,245 6.00% $  40,326 8.00% 
                     
 Common Equity Tier I Capital Ratio $  66,198 13.13% $  22,683 4.50% $  32,765 6.50% 
                     
 Leverage Ratio $  66,198 10.84% $  24,439 4.00% $  30,548 5.00% 
                     
 As of December 31, 2015:                   
                     
 Total Risk-Based Capital Ratio $  67,238 16.58% $  32,443 8.00% $  40,553 10.00% 
                     
 Tier I Risk-Based Capital Ratio $  65,465 16.14% $  24,332 6.00% $  32,443 8.00% 
                     
 Common Equity Tier I Capital Ratio $  65,465 16.14% $  18,249 4.50% $  26,360 6.50% 
                     
 Leverage Ratio $  65,465 13.75% $  19,041 4.00% $  23,801 5.00% 
                     
 As of September 30, 2015:                   
 (unaudited)                   
                     
 Total Risk-Based Capital Ratio $  65,357 16.51% $  31,676 8.00% $  39,595 10.00% 
                     
 Tier I Risk-Based Capital Ratio $  63,737 16.10% $  23,757 6.00% $  31,676 8.00% 
                     
 Common Equity Tier I Capital Ratio $  63,737 16.10% $  17,818 4.50% $  25,737 6.50% 
                     
 Leverage Ratio $  63,737 13.19% $  19,331 4.00% $  24,164 5.00% 
                     
 As of December 31, 2014:                   
                     
 Total Risk-Based Capital Ratio $  62,743 16.66% $  30,132 8.00% $  37,665 10.00% 
                     
 Tier I Risk-Based Capital Ratio $  61,448 16.31% $  15,066 4.00% $  22,599 6.00% 
                     
 Leverage Ratio $  61,448 12.94% $  18,988 4.00% $  23,735 5.00% 
                     


BAY BANCORP, INC. AND SUBSIDIARY             
SELECTED FINANCIAL DATA                
                 
                 
 Three Months Ended Year Ended  
 December 31, September 30, December 31, December 31, December 31, 
 2016  2016  2015  2016  2015   
 (unaudited) (unaudited) (unaudited) (unaudited)    
Financial Data:                
Assets$  620,419,237  $  606,335,516  $  491,161,838  $  620,419,237  $  491,161,838   
Investment securities   61,390,965     53,183,725     34,925,398     61,390,965     34,925,398   
Loans (net of deferred fees and costs)   487,103,713     482,423,126     393,240,567     487,103,713     393,240,567   
Allowance for loan losses   (2,823,153)    (2,447,785)    (1,773,009)    (2,823,153)    (1,773,009)  
Deposits   526,458,394     531,086,715     367,415,938     526,458,394     367,415,938   
Borrowings   20,000,000     1,975,000     52,300,000     20,000,000     52,300,000   
Stockholders’ equity   65,748,384     65,221,765     67,682,489     65,748,384     67,682,489   
                 
Net income - Bay Bancorp   737,542     374,226     512,180     1,747,271     1,930,765   
Net income - Non-controlling interest   61,279     138,212     -     199,491     -   
                 
Average Balances: (unaudited)                
Assets   603,746,545     611,049,691     475,843,083     536,333,860     481,145,938   
Investment securities   53,358,950     55,180,341     35,141,189     40,537,934     36,649,655   
Loans (net of deferred fees and costs)   483,690,335     478,895,035     391,709,601     436,793,412     389,684,221   
Borrowings   1,975,000     9,003,261     30,558,696     26,493,284     23,188,219   
Deposits   529,537,517     530,940,262     375,606,120     443,144,111     388,245,405   
Stockholders' equity    64,084,518     65,439,231     65,565,103     66,146,705     65,747,418   
                 
Performance Ratios:                
Annualized return on average assets  0.53%  0.33%  0.43%  0.36%  0.40%  
Annualized return on average equity 4.96%  3.12%  3.10%  2.94%  2.94%  
Yield on average interest-earning assets 4.41%  4.26%  4.85%  4.50%  5.10%  
Rate on average interest-bearing liabilities 0.48%  0.52%  0.52%  0.50%  0.58%  
Net interest spread 3.93%  3.74%  4.33%  4.00%  4.51%  
Net interest margin 4.05%  3.86%  4.49%  4.14%  4.70%  
                 
Book value per share$  6.30  $  6.29  $  6.13  $  6.30  $  6.13   
Basic net income per share   0.07     0.04     0.05     0.16     0.17   
Diluted net income per share   0.07     0.03     0.05     0.16     0.17   
                 
                 
  December 31, September 30, June 30,
 December 31,    
  2016 2016 2016 
 2015
    
Asset Quality Ratios:                
Allowance for loan losses to loans 0.58%  0.51%  0.55%  0.45%     
Nonperforming loans to avg. loans 3.02%  2.95%  1.86%  2.26%     
Nonperforming assets to total assets 2.55%  2.60%  1.84%  2.10%     
Net charge-offs annualized to avg. loans 0.00%  0.17%  0.01%  0.03%     
                 
Capital Ratios (Bay Bank, FSB):     (Estimated)           
Total risk-based capital ratio 12.86%  12.76%  16.10%  16.58%     
Common equity tier 1 capital ratio 12.31%  12.28%  15.56%  16.14%     
Tier 1 risk-based capital ratio 12.31%  12.28%  15.56%  16.14%     
Leverage ratio 10.45%  10.13%  13.99%  13.75%     
                 

 

 


            

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