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Bay Bancorp, Inc. Announces Record Second Quarter 2017 Results

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

Source:Bay Bancorp, Inc.