Exhibit 99.1
Bay Bancorp, Inc. Announces Third Quarter 2014 Results
Lutherville Maryland—Bay Bancorp, Inc. (“Bay”) (NASDAQ: BYBK), the savings and loan holding company for Bay Bank, FSB (“Bank”), announced today net income of $1.79 million or $0.18 per diluted share for nine months ended September 30, 2014, compared to net income of $2.32 million or $0.29 per diluted share for the first nine months of 2013. For the quarter, Bay reported a net loss of $0.94 million or $0.09 per diluted share, compared to net income of $2.64 million or $0.26 per diluted share for the 2nd quarter of 2014 and net income of $0.92 million or $0.11 per diluted share for the third quarter of 2013. The nine months ended September 30, 2014 include a $511,000 bargain purchase gain compared to a $2.86 million bargain purchase gain for the first nine months of 2013.
“After completing strategic steps in the second quarter of 2014 to reduce core operating expenses and cost of funds, in this quarter the Bank absorbed $1.1 million of previously announced, one-time stock-based compensation expense, and $0.6 million in extraordinary expenses related to the Slavie acquisition and subsequent integration” said Kevin B. Cashen, President and Chief Executive Officer. “The acquisition of Slavie Federal Savings Bank from the FDIC supports the plan to add earning assets at a discount, increase scale and improve profitability going forward.”
Highlights from the First Nine Months of 2014
| · | | The return on average assets for the three and nine months ended September 30, 2014 was -0.77% and 0.54%, respectively, as compared to 0.80% and 0.93%, respectively, for the same periods of 2013. The return on average equity for the three and nine months ended September 30, 2014 was -5.62% and 3.89%, respectively, as compared to 6.74% and 6.70%, respectively, for the same periods of 2013. |
| · | | Total assets decreased to $480 million at September 30, 2014 compared to $487 million at June 30, 2014 and $419 million at December 31, 2013. |
| · | | Total loans decreased to $394 million at September 30, 2014, a decrease of 0.3% from $395 million at June 30, 2014 and an increase of 23% from $321 million at December 31, 2013. |
| · | | Total deposits decreased to $399 million at September 30, 2014, a decrease of 5% from $419 million at June 30, 2014 and an increase of 10% from $361 million at December 31, 2013. |
| · | | Net interest income for the three and nine month periods ended September 30, 2014 totaled $5.5 million and $16.5 million, respectively, compared to $5.8 million and $12.5 million, respectively, for the same periods of 2013. The third quarters were comparable from a leverage basis with variable accretion income credited at a slower pace in third quarter of 2014. Discount recognition will vary due to the timing and nature of resolutions. Third quarter of 2014 recognition trailed the third quarter of 2013 recognition by $0.46 million. Earning asset leverage was a key driver in year-over-year results, as average earning assets increased to $401 million for the nine months ended September 30, 2014, compared to $311 million for the same period of 2013. |
| · | | Net interest margin for the three and nine months ended September 30, 2014 was 4.80% and 5.50%, respectively, compared to 5.44% and 5.37%, respectively, for the same periods of 2013. The 3rd quarter decrease reflects the variable pace of accretion income. For the first nine months of 2014, favorable credit resolutions and a 14 basis point decrease in the average cost of interest bearing liabilities to 0.42% when compared to the same period of 2013 support the 13 basis point improvement. |
| · | | Nonperforming assets increased to $20.67 million at September 30, 2014, up from $18.46 million at June 30, 2014 and $9.60 million at December 31, 2013. The increase resulted from the Bank’s acquisition of assets from Slavie Federal Savings Bank (“Slavie”) in May 2014, which added performing credit impaired loans at June 30, 2014, all with purchase discounts which are expected to be sufficient to resolve any credit impairments. |
| · | | The provision for loan losses in the three and nine months ending September 30, 2014 was $220,000 and $580,000, respectively, compared to $350,000 and $534,000, respectively, for the same periods of 2013. The changes from the 2013 periods were due primarily to charge-offs and specific reserves established for loans acquired in the Bank’s merger with Carrollton Bank in April 2013 (the “Merger”) and loan originations thus far in 2014. As a result, the allowance for loan losses was $1.13 million at September 30, 2014, representing 0.29% of total loans, compared to $0.85 million, or 0.27% of total loans, at December 31, 2013. Management expects both the allowance for loan losses and the related provision for loan losses to increase in the future due to the gradual runoff of the discount on the acquired loan portfolio and an increase in new loan originations. |
| · | | Total Capital increased to $65.2 million at September 30, 2014 from $65.0 million at June 30, 2014 and $54.6 million at December 31, 2013. The book value of Bay’s common stock was $5.92 per share at September 30, 2014, compared to $6.01 per share at June 30, 2014 and $5.82 per share at December 31, 2013. |
Recent Events
On May 30, 2014, the Bank entered into an agreement with Federal Deposit Insurance Corporation (“FDIC”) to acquire certain assets and assumed substantially all deposits and certain other liabilities of Slavie (the “Slavie Acquisition”), which was closed on that date by the Office of the Comptroller of the Currency (“OCC”). In the Slavie Acquisition, the Bank acquired assets with a fair value of $117.1 million, including $82.9 million in loans, while assuming liabilities of $110.8 million. The Bank did not acquire any of Slavie’s other real estate owned.
An independent valuation specialist was engaged during the third quarter of 2014 to prepare a fair valuation analysis for the Slavie loan portfolio, core deposit intangible asset, and time deposit portfolio. The valuation resulted in a summary before-tax bargain purchase gain of $511,000 compared to an initial pre-tax bargain purchase gain of $697,000 estimate recorded at June 30, 2014. The adjusted valuation was properly recorded as a second quarter 2014 adjustment, resulting in an $113,000 decrease in second quarter after-tax income. Summary valuation as of May 30, 2014 includes an overall loan fair value mark-to-market discount to book value of $7.83 million, a core deposit intangible of $0.48 million and a certificate premium of $0.13 million
Bay anticipates a normal level of additional expenses in the fourth quarter of 2014 related to the Slavie system conversion and other acquisition related costs.
On July 29, 2014, the Board of Directors of Bay granted 212,000 shares of Bay’s common stock to certain directors and officers and granted options to purchase 77,000 shares of Bay’s common stock to certain officers and a consultant. The equity awards were granted to certain directors and officers and a consultant to recognize their efforts in building the Bank since being founded in 2010 by the Financial Services Partners Fund I, LLC (“FSPF”). H Bancorp, LLC was formed on June 30, 2014 as the successor entity and Bay’s new top-tier holding company. The liquidation of FSPF was a condition imposed by the Board of Governors of the Federal Reserve System as part of its approval of the Merger. Bay realized an expense of $1.1 million in the third quarter of 2014 as a result of these equity awards, which will offset a portion of the one-time gains recorded in the second quarter of 2014. Further details can be found in Bay’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 5, 2014.
Over the weekend of October 10, 2014, the Bank completed the core system integration of the Slavie/FISERV platform to the Bay Bank/FIS platform. The Finance/General Ledger consolidation was also completed within this integration. Several Slavie employees filled open positions within the Bank and have relocated to their new locations.
The former headquarters branch for Slavie was closed on October 10, 2014. All deposits were transferred to the Bank’s Hickory branch location. We anticipate no additional costs related to the facility.
Balance Sheet Review
Total assets were $480 million at September 30, 2014, an increase of $60.4 million, or 14%, when compared to December 31, 2013. The increase was due to net increases in loans of $73.4 million, or 23%. The Bank acquired net loans of $82.9 million in the Slavie Acquisition, which was offset by a net loan decline of $9.9 million, a $6.5 million decrease in mortgage loans held for sale and a $10.6 million increase in stockholders’ equity. Excluding $7.0 million of net amortization from the acquired Slavie portfolio, the Bank achieved increased commercial and residential lending volume. Third quarter new loan originations and draws exceeded loan principal repayments by $6.0 million, a 6.1% annualized pace of net loan growth.
Total deposits were $399 million at September 30, 2014, an increase of $38 million, or 10%, when compared to December 31, 2013. The increase was primarily driven by $110.8 million in deposits assumed in the Slavie Acquisition, offset by the $24.0 million decrease from the exit of the IRA product line, a net $9.5 million decrease resulting from the three closed Bank branch locations, and deposits acquired in the Slavie Acquisition declining by $43.1 million as part of the Bank’s strategy to reposition the deposit composition. The Bank experienced organic net deposit growth of $3 million over the first nine months of 2014.
Stockholders’ equity was $65.2 million at September 30, 2014, an increase of $10.7 million, or 19%, when compared to December 31, 2013. The increase resulted from the $7.0 million received in the Capital Transaction, $1.4 million of stock based compensation and the retention of corporate earnings.
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 $20.67 million at September 30, 2014 from $18.32 million at June 30, 2014 and $9.60 million at December 31, 2013. This increase was due primarily to the migration of acquired PCI loan balances to nonaccrual status during the third quarter. Nonperforming assets represented 4.31% of total assets at September 30, 2014 compared to 3.79% at June 30, 2014 and 2.29% at December 31, 2013. The ratio of net charge-offs (annualized) to average total loans was 0.19% for the third quarter of 2014 and 0.49% for the third quarter of 2013.
At September 30, 2014, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was 15.84% at September 30, 2014 as compared to 15.70% at June 30, 2014 and 14.42% at December 31, 2013.
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 and nine month periods ended September 30, 2014 was a ($0.94 million loss) and $1.79 million, respectively, compared to net income of $0.92 million and $2.32 million, respectively, for the same periods of 2013. With variations in net income primarily the result of the bargain purchase gains from the Merger and the Slavie acquisition, changes were less comparable between periods.
Net interest income increased by $4.0 million for the nine months ended September 30, 2014 when compared to the nine months ended September 30, 2013. The increase was supported by a $90 million growth in average interest-earning assets added by the Merger and the Slavie Acquisition, a 14 basis point reduction in the average cost of interest bearing liabilities, and a 5 basis point increase in the average rates earned on interest-earning assets. The net interest margin for the third quarter of 2014 decreased to 4.80% from 5.56% for the second quarter of 2014 and 5.44% for the third quarter of 2013. While the average rates on interest earning assets increased, interest income recognition volatility was impacted by favorable loan resolutions and accretion of net discounts on loans of $0.9 million and $4.0 million during the three- and nine-month periods of 2014, respectively, compared to $1.2 million and $3.2 million, respectively, during the same periods of 2013. As of September 30, 2014, the remaining net loan discounts on the Bank’s loan portfolio, including pre-Merger bank loans and loans acquired in the Merger and the Slavie Acquisition totaled $16.60 million.
Noninterest income for the three months ended September 30, 2014 was $1.13 million compared to $1.76 million for the same period in 2013. This decrease was primarily the result of $0.27 million decrease in mortgage banking fees and gains along with a $0.20 million decline in brokerage commissions. Expectations are for increased income in both areas in upcoming quarters.
Noninterest income for the nine months ended September 30, 2014 was $6.63 million compared to $6.77 million for the same period in 2013. This variance was the result of the 2014 remaining interest rate mark-to-market adjustment on IRA deposits of $2.16 million and a $0.51 million bargain purchase gain compared to the $2.86 million bargain purchase gain associated with the Merger that was recognized during the first nine months of 2013. Electronic banking fees increased by $0.63 million during the first nine months of 2014, as the Merger added this business unit to the Bank. Brokerage commissions declined by$.32 million for the first nine months of 2014 as the Bank temporarily exited this business line late in 2013. Mortgage banking fees for the first nine months ended September 30, 2014 declined by $0.79 million when compared to the same period of 2013, while deposit service charges increased by $0.09 million.
Noninterest expense for the three months ended September 30, 2014 was $7.97 million compared to $6.26 million for the prior quarter and $6.72 million for the third quarter of 2013. The primary contributors to the increase when compared to the third quarter of 2013 were increases in Merger-related expenses of $0.39 million and one-time other expenses $0.98 million. This overall increase was also impacted by the Slavie Acquisition, which added an additional $0.20 million in salaries and benefits and $0.10 million in other noninterest expenses in September 2014.
Noninterest expense for the nine months ended September 30, 2014 was $20.57 million compared to $16.16 million for the same period in 2013, an increase of $4.41 million. The increase relates to the inclusion during the first nine months of 2014 of a full nine-months of ongoing expenses related to the Merger and $0.76 million of expenses from the Slavie Acquisition. Categories impacted by this full nine-months of expenses were increases in salaries and employee benefits of $2.12 million, occupancy, furniture and equipment expenses of $1.10 million, foreclosed property expenses of $0.23 million, legal, accounting and other professional fees of $0.13 million and core deposit intangible amortization of $0.22 million. This was offset by a $1.12 million decline in Merger-related expenses. We anticipate a normal level of expenses in the fourth quarter of 2014 related to core expenses and acquisition related costs.
Bay Bancorp, Inc. Information
Bay Bancorp, Inc. is a financial holding company and a savings and loan holding company headquartered in Lutherville, Maryland. Through Bay Bank, FSB, its federal savings bank subsidiary, Bay Bancorp, Inc. serves the community with a network of 10 branches strategically located throughout the Baltimore Metropolitan Statistical Area, particularly Baltimore City and the Maryland counties of Baltimore, Anne Arundel, Howard, Carroll, and Harford. The Bank serves local consumers, 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. The Bank’s subsidiary, Bay Financial Services, Inc., provides investment advisory and brokerage services. 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”.
For investor inquiries contact:
Joseph J. Thomas, Executive Chairman,
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
410-427-3726
Bay Bancorp, Inc.
Consolidated Balance Sheets
| | | | | | | | |
| | | | | | | | |
| September 30, | | June 30, | | |
| 2014 | | 2014 | | December 31, |
| (unaudited) | | (unaudited) | | 2013 |
ASSETS | | | | | | | | |
Cash and due from banks | $ | 7,318,090 | | $ | 9,536,345 | | $ | 7,126,720 |
Interest bearing deposits with banks and federal funds sold | | 9,654,840 | | | 14,890,664 | | | 16,146,340 |
Total Cash and Cash Equivalents | | 16,972,930 | | | 24,427,009 | | | 23,273,060 |
| | | | | | | | |
Time deposits with banks | | 284,849 | | | 500,000 | | | - |
Investment securities available for sale, at fair value | | 34,428,746 | | | 35,829,418 | | | 36,586,669 |
Investment securities held to maturity, at amortized cost | | 1,334,462 | | | - | | | - |
Restricted equity securities, at cost | | 1,367,995 | | | 919,795 | | | 1,009,695 |
Loans held for sale | | 6,317,277 | | | 6,103,088 | | | 12,836,234 |
| | | | | | | | |
Loans, net of deferred fees and costs | | 394,080,772 | | | 395,046,505 | | | 320,680,332 |
Less: Allowance for loan losses | | (1,129,250) | | | (1,099,646) | | | (851,000) |
Loans, net | | 392,951,522 | | | 393,946,859 | | | 319,829,332 |
| | | | | | | | |
Real estate acquired through foreclosure | | 1,642,524 | | | 1,520,609 | | | 1,290,120 |
Premises and equipment, net | | 5,589,176 | | | 5,646,918 | | | 5,998,532 |
Bank owned life insurance | | 5,453,093 | | | 5,420,981 | | | 5,356,575 |
Core deposit intangible | | 3,732,826 | | | 3,722,865 | | | 3,993,679 |
Deferred tax assets, net | | 5,258,484 | | | 5,287,136 | | | 6,564,121 |
Accrued interest receivable | | 1,277,781 | | | 1,389,888 | | | 1,186,748 |
Defined benefit pension asset | | 540,058 | | | 42,231 | | | - |
Other assets | | 2,367,825 | | | 2,713,245 | | | 1,164,538 |
Total Assets | $ | 479,519,548 | | $ | 487,470,042 | | $ | 419,089,303 |
| | | | | | | | |
LIABILITIES | | | | | | | | |
Noninterest-bearing deposits | $ | 92,902,861 | | $ | 104,021,800 | | $ | 90,077,139 |
Interest-bearing deposits | | 305,693,481 | | | 315,122,594 | | | 270,916,332 |
Total Deposits | | 398,596,342 | | | 419,144,394 | | | 360,993,471 |
| | | | | | | | |
Short-term borrowings | | 12,000,000 | | | - | | | - |
Defined benefit pension liability | | - | | | - | | | 42,492 |
Accrued expenses and other liabilities | | 3,724,242 | | | 3,280,059 | | | 3,499,072 |
Total Liabilities | | 414,320,584 | | | 422,424,453 | | | 364,535,035 |
| | | | | | | | |
STOCKHOLDERS’ EQUITY | | | | | | | | |
Common stock - par value $1.00, authorized 20,000,000 shares, issued and outstanding 11,014,517 and 9,379,753 shares as of September 30, 2014 and December 31, 2013, respectively. | | 11,014,517 | | | 10,818,773 | | | 9,379,753 |
Additional paid-in capital | | 43,143,903 | | | 42,178,489 | | | 36,357,001 |
Retained earnings | | 9,488,743 | | | 10,540,587 | | | 7,703,597 |
Accumulated other comprehensive income | | 1,551,801 | | | 1,507,740 | | | 1,113,917 |
Total Stockholders' Equity | | 65,198,964 | | | 65,045,589 | | | 54,554,268 |
Total Liabilities and Stockholders' Equity | $ | 479,519,548 | | $ | 487,470,042 | | $ | 419,089,303 |
Bay Bancorp, Inc.
Consolidated Statements of Income (Loss)
(Unaudited)
| | | | | | | | | | | |
| | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2014 | | 2013 | | 2014 | | 2013 |
Interest income: | | | | | | | | | | | |
Interest and fees on loans | $ | 5,537,260 | | $ | 5,679,302 | | $ | 16,457,477 | | $ | 12,410,826 |
Interest on loans held for sale | | 64,265 | | | 349,561 | | | 196,274 | | | 590,714 |
Interest and dividends on securities | | 213,862 | | | 154,267 | | | 706,315 | | | 321,486 |
Interest on deposits with banks and federal funds sold | | 7,217 | | | 20,730 | | | 39,245 | | | 58,526 |
Total Interest Income | | 5,822,604 | | | 6,203,860 | | | 17,399,311 | | | 13,381,552 |
| | | | | | | | | | | |
Interest expense: | | | | | | | | | | | |
Interest on deposits | | 286,368 | | | 397,159 | | | 896,596 | | | 898,763 |
Interest on short-term borrowings | | 12,706 | | | - | | | 12,706 | | | 1,692 |
Total Interest Expense | | 299,074 | | | 397,159 | | | 909,302 | | | 900,455 |
Net Interest Income | | 5,523,530 | | | 5,806,701 | | | 16,490,009 | | | 12,481,097 |
| | | | | | | | | | | |
Provision for loan losses | | 220,373 | | | 350,365 | | | 580,217 | | | 533,621 |
Net interest income after provision for loan losses | | 5,303,157 | | | 5,456,336 | | | 15,909,792 | | | 11,947,476 |
| | | | | | | | | | | |
Noninterest income: | | | | | | | | | | | |
Electronic banking fees | | 674,701 | | | 708,300 | | | 1,991,048 | | | 1,359,477 |
Mortgage banking fees and gains | | 259,740 | | | 529,570 | | | 767,803 | | | 1,556,385 |
Net (loss) gain on sale of real estate acquired through foreclosure | | (1,503) | | | 40,998 | | | 27,422 | | | 89,342 |
Brokerage commissions | | - | | | 199,392 | | | - | | | 316,884 |
Service charges on deposit accounts | | 99,451 | | | 100,476 | | | 303,396 | | | 191,690 |
Bargain purchase gain | | - | | | - | | | 510,844 | | | 2,860,199 |
Other income | | 95,003 | | | 184,311 | | | 3,031,629 | | | 397,418 |
Total Noninterest Income | | 1,127,392 | | | 1,763,047 | | | 6,632,142 | | | 6,771,395 |
| | | | | | | | | | | |
Noninterest Expenses: | | | | | | | | | | | |
Salary and employee benefits | | 3,244,553 | | | 3,461,109 | | | 9,769,014 | | | 7,644,886 |
Occupancy expenses | | 722,573 | | | 716,482 | | | 2,256,683 | | | 1,458,086 |
Furniture and equipment expenses | | 280,320 | | | 239,704 | | | 875,274 | | | 526,551 |
Legal, accounting and other professional fees | | 356,226 | | | 344,867 | | | 1,088,451 | | | 961,948 |
Data processing and item processing services | | 371,572 | | | 394,021 | | | 863,909 | | | 832,636 |
FDIC insurance costs | | 84,882 | | | 82,246 | | | 287,568 | | | 194,572 |
Advertising and marketing related expenses | | 105,546 | | | 78,277 | | | 290,511 | | | 220,254 |
Foreclosed property expenses | | 113,903 | | | 104,170 | | | 504,295 | | | 273,084 |
Loan collection costs | | 152,196 | | | 143,021 | | | 305,099 | | | 303,253 |
Core deposit intangible amortization | | 245,673 | | | 336,273 | | | 738,415 | | | 517,203 |
Merger and acquisition related expenses | | 637,272 | | | 143,709 | | | 877,560 | | | 1,998,646 |
Other expenses | | 1,656,933 | | | 674,990 | | | 2,710,245 | | | 1,228,680 |
Total Noninterest Expenses | | 7,971,649 | | | 6,718,869 | | | 20,567,024 | | | 16,159,799 |
(Loss) income before income taxes | | (1,541,100) | | | 500,514 | | | 1,974,910 | | | 2,559,072 |
Income tax (benefit) expense | | (599,585) | | | (422,279) | | | 189,764 | | | 235,811 |
Net (loss) income | $ | (941,515) | | $ | 922,793 | | $ | 1,785,146 | | $ | 2,323,261 |
| | | | | | | | | | | |
Basic net (loss) income per common share | $ | (0.09) | | $ | 0.11 | | $ | 0.18 | | $ | 0.29 |
| | | | | | | | | | | |
Diluted net (loss) income per common share | $ | (0.09) | | $ | 0.11 | | $ | 0.18 | | $ | 0.29 |
Bay Bancorp, Inc.
Consolidated Statements of Stockholders' Equity
For the Nine Months Ended September 30, 2014 and 2013
(Unaudited)
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Accumulated | | | |
| | | | | Additional | | | | | Other | | | |
| | Common | | Paid-in | | Retained | | Comprehensive | | | |
| | Stock | | Capital | | Earnings | | Income | | Total |
Balance December 31, 2013 | | $ | 9,379,753 | | $ | 36,357,001 | | $ | 7,703,597 | | $ | 1,113,917 | | $ | 54,554,268 |
Net income | | | - | | | - | | | 1,785,146 | | | - | | | 1,785,146 |
Other comprehensive income | | | - | | | - | | | - | | | 437,884 | | | 437,884 |
Stock-based compensation | | | 212,000 | | | 1,209,666 | | | - | | | - | | | 1,421,666 |
Issuance of common stock | | | 1,422,764 | | | 5,577,236 | | | - | | | - | | | 7,000,000 |
Balance September 30, 2014 | | | 11,014,517 | | | 43,143,903 | | | 9,488,743 | | | 1,551,801 | - | | 65,198,964 |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Accumulated | | | |
| | | | | Additional | | | | | Other | | | |
| | Common | | Paid-in | | Retained | | Comprehensive | | | |
| | Stock | | Capital | | Earnings | | Income (loss) | | Total |
Balance December 31, 2012 | | $ | 5,831,963 | | $ | 21,269,898 | | $ | 4,462,463 | | $ | 260,092 | | $ | 31,824,416 |
Net income | | | - | | | - | | | 2,323,261 | | | - | | | 2,323,261 |
Other comprehensive loss | | | | | | | | | - | | | (251,231) | | | (251,231) |
Issuance of common stock to FSPF I, LLC | | | 2,039,958 | | | 8,960,042 | | | - | | | - | | | 11,000,000 |
Carrollton Bancorp shares retained at the date of Merger | | | 1,483,457 | | | 5,800,313 | | | - | | | - | | | 7,283,770 |
Stock-based compensation | | | - | | | 242,022 | | | - | | | - | | | 242,022 |
Issuance of common stock under stock option plan | | | 8,887 | | | 31,103 | | | - | | | - | | | 39,990 |
Balance September 30, 2013 | | $ | 9,364,265 | | $ | 36,303,378 | | $ | 6,785,724 | | $ | 8,861 | | $ | 52,462,228 |
Bay Bank, FSB
Capital Ratios
(Unaudited)
(in thousands)
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | To Be Well |
| | | | | | | | | | | | | | Capitalized Under |
| | | | | | | | To Be Considered | | Prompt Corrective |
| | Actual | | Adequately Capitalized | | Action Provisions |
As of September 30, 2014: | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio |
| | | | | | | | | | | | | | | | | | |
Total Risk-Based Capital Ratio | | $ | 60,376 | | 16.14 | % | | $ | 29,922 | | 8.00 | % | | $ | 37,402 | | 10.00 | % |
| | | | | | | | | | | | | | | | | | |
Tier I Risk-Based Capital Ratio | | $ | 59,247 | | 15.84 | % | | $ | 14,961 | | 4.00 | % | | $ | 22,441 | | 6.00 | % |
| | | | | | | | | | | | | | | | | | |
Leverage Ratio | | $ | 59,247 | | 12.51 | % | | $ | 18,943 | | 4.00 | % | | $ | 23,679 | | 5.00 | % |
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As of June 30, 2014: | | | | | | | | | | | | | | | | | | |
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Total Risk-Based Capital Ratio | | $ | 60,205 | | 15.99 | % | | $ | 30,122 | | 8.00 | % | | $ | 37,653 | | 10.00 | % |
| | | | | | | | | | | | | | | | | | |
Tier I Risk-Based Capital Ratio | | $ | 59,105 | | 15.70 | % | | $ | 15,061 | | 4.00 | % | | $ | 22,592 | | 6.00 | % |
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Leverage Ratio | | $ | 59,105 | | 12.27 | % | | $ | 19,263 | | 4.00 | % | | $ | 24,079 | | 5.00 | % |
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As of March 31, 2014: | | | | | | | | | | | | | | | | | | |
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Total Risk-Based Capital Ratio | | $ | 49,354 | | 15.53 | % | | $ | 25,423 | | 8.00 | % | | $ | 31,778 | | 10.00 | % |
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Tier I Risk-Based Capital Ratio | | $ | 48,412 | | 15.23 | % | | $ | 12,711 | | 4.00 | % | | $ | 19,067 | | 6.00 | % |
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Leverage Ratio | | $ | 48,412 | | 11.44 | % | | $ | 16,927 | | 4.00 | % | | $ | 21,159 | | 5.00 | % |
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As of December 31, 2013: | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total Risk-Based Capital Ratio | | $ | 47,815 | | 14.68 | % | | $ | 26,079 | | 8.00 | % | | $ | 32,562 | | 10.00 | % |
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Tier I Risk-Based Capital Ratio | | $ | 46,964 | | 14.42 | % | | $ | 13,025 | | 4.00 | % | | $ | 19,537 | | 6.00 | % |
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Leverage Ratio | | $ | 46,964 | | 11.41 | % | | $ | 16,461 | | 4.00 | % | | $ | 20,577 | | 5.00 | % |
Bay Bancorp, Inc.
Selected Financial Data
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended | | Year Ended |
| September 30, | | June 30, | | September 30, | | September 30, | | September 30, | | December 31, |
| 2014 | | 2014 | | 2013 | | 2014 | | 2013 | | 2013 |
Financial Data: | | | | | | | | | | | | | | | | | |
Assets | $ | 479,519,548 | | $ | 487,470,042 | | $ | 439,996,824 | | $ | 479,519,548 | | $ | 439,996,824 | | $ | 419,089,303 |
Investment securites | | 35,763,208 | | | 35,829,418 | | | 31,276,084 | | | 35,763,208 | | | 31,276,084 | | | 36,586,669 |
Loans (net of deferred fees and costs) | | 394,080,772 | | | 395,046,505 | | | 321,907,285 | | | 394,080,772 | | | 321,907,285 | | | 320,680,332 |
Allowance for loan losses | | (1,129,250) | | | (1,099,646) | | | (690,474) | | | (1,129,250) | | | (690,474) | | | (851,000) |
Deposits | | 398,596,342 | | | 419,144,394 | | | 380,844,499 | | | 398,596,342 | | | 380,844,499 | | | 360,933,471 |
Borrowings | | 12,000,000 | | | - | | | - | | | 12,000,000 | | | - | | | - |
Stockholders’ equity | | 65,198,964 | | | 65,045,589 | | | 54,619,330 | | | 65,198,964 | | | 54,619,330 | | | 54,554,268 |
| | | | | | | | | | | | | | | | | |
Net (loss) income | | (941,515) | | | 2,644,926 | | | 922,793 | | | 1,785,146 | | | 2,323,261 | | | 3,241,134 |
| | | | | | | | | | | | | | | | | |
Average Balances: | | | | | | | | | | | | | | | | | |
Assets | | 485,175,007 | | | 448,315,402 | | | 457,966,929 | | | 445,479,782 | | | 333,422,318 | | | 358,397,210 |
Investment securities | | 36,881,377 | | | 36,926,555 | | | 27,953,097 | | | 37,712,361 | | | 20,313,935 | | | 24,427,877 |
Loans (net of deferred fees and costs) | | 397,302,596 | | | 339,716,287 | | | 327,819,042 | | | 322,877,223 | | | 239,513,467 | | | 259,698,504 |
Borrowings | | 15,135,870 | | | - | | | - | | | 18,745,421 | | | 55,678 | | | - |
Deposits | | 400,964,856 | | | 385,002,128 | | | 398,510,708 | | | 363,400,788 | | | 283,476,914 | | | 231,245,789 |
Stockholders' equity | | 66,409,980 | | | 60,238,668 | | | 54,296,315 | | | 61,344,406 | | | 46,338,360 | | | 48,537,003 |
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Performance Ratios: | | | | | | | | | | | | | | | | | |
Return on average assets | | -0.77% | | | 2.37% | | | 0.80% | | | 0.54% | | | 0.93% | | | 0.90% |
Return on average equity | | -5.62% | | | 17.61% | | | 6.74% | | | 3.89% | | | 6.70% | | | 6.68% |
Yield on average interest-earning assets | | 5.06% | | | 5.84% | | | 5.81% | | | 5.81% | | | 5.76% | | | 5.71% |
Rate on average interest-bearing liabilities | | 0.37% | | | 0.42% | | | 0.53% | | | 0.42% | | | 0.56% | | | 0.55% |
Net interest spread | | 4.69% | | | 5.42% | | | 5.28% | | | 5.39% | | | 5.20% | | | 5.16% |
Net interest margin | | 4.80% | | | 5.56% | | | 5.44% | | | 5.50% | | | 5.37% | | | 5.33% |
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Book value per share | $ | 5.92 | | $ | 6.01 | | $ | 5.48 | | $ | 5.92 | | $ | 5.83 | | $ | 5.82 |
Basic net income per share | | (0.09) | | | 0.26 | | | 0.11 | | | 0.18 | | | 0.29 | | | 0.39 |
Diluted net income per share | | (0.09) | | | 0.26 | | | 0.11 | | | 0.18 | | | 0.29 | | | 0.39 |
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| | | | | | | |
| September 30, | | June 30, | | March 31, | | December 31, |
| 2014 | | 2014 | | 2014 | | 2013 |
Asset Quality Ratios: | | | | | | | |
Allowance for loan losses to loans | 0.29% | | 0.28% | | 0.22% | | 0.27% |
Nonperforming loans to total loans | 4.83% | | 4.29% | | 3.34% | | 2.59% |
Nonperforming assets to total assets | 4.31% | | 3.79% | | 2.69% | | 2.29% |
Net charge-offs annualized to avg. loans | 0.19% | | -0.02% | | 0.16% | | 0.25% |
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Capital Ratios (Bay Bank, FSB): | | | | | | | |
Total risk-based capital ratio | 16.14% | | 15.99% | | 15.53% | | 14.68% |
Tier 1 risk-based capital ratio | 15.84% | | 15.70% | | 15.23% | | 14.42% |
Leverage ratio | 12.51% | | 12.27% | | 11.44% | | 11.41% |
