BALTIMORE, Oct. 26 /PRNewswire-FirstCall/ -- Bay National
Corporation (OTC:BANI) (BULLETIN BOARD: BANI) , the bank holding
company for Bay National Bank (the "Bank"), today reported net
income per common share of $.37 (on a diluted basis) for the
quarter ended September 30, 2005, a 185% increase from $.13 (basic
and diluted) earned in the third quarter of 2004. Net income for
the three months ended September 30, 2005 rose to a record
$750,645, a 207% increase from the $244,372 earned in the third
quarter of 2004. Hugh W. Mohler, Chairman and CEO, commented, "Our
record 2005 year-to-date performance has been driven by excellent
asset quality, solid loan growth, disciplined interest rate
management and successful operating leverage; these achievements
reflect positively on the dedication, ability and hard work of our
professionals. Our successful quarter was also marked by assets
crossing the $200 million threshold, another significant milestone
for the Bank. We continue to be mindful of why we have achieved
success in this very competitive environment -- respect and
integrity toward our customers. These values will continue to be
our priority." At September 30, 2005, assets totaled $202.4
million, up 28% from the third quarter of 2004. Net loans rose 45%
to $184.4 million as of September 30, 2005, as compared to
September 30, 2004. At September 30, 2005 there were no
non-performing loans; similarly there were no charge-offs during
the third quarter of 2005. Deposits increased 26.7% to $180.3
million as of September 30, 2005 as compared to September 30, 2004.
Core deposits rose 27.7% year-over-year to $135.7 million at
September 30, 2005. Core deposits, which management categorizes as
all deposits other than national market certificates of deposit and
all but $5.0 million in deposits from three accounts with highly
variable balances, are closely monitored by management because they
consider them not only a relatively stable source of funding but
also reflective of the growth of commercial and consumer depository
relationships. The Bank's net interest margin and net interest
spread were 4.57% and 3.99%, respectively, for the nine months
ended September 30, 2005 -- both reflecting 32% year-over-year
increases -- the result of interest rate increases enacted by the
Federal Reserve and disciplined asset and liability management. The
book value of our common stock increased 15.1% from the year-ago
quarter and the market price of common shares at the close of the
third quarter 2005 was $19.00, up 69% from the closing price at
September 30, 2004. Bay National Corporation has two full-service
banking offices-Baltimore and Salisbury, Maryland. It focuses on
filling the void created by the persistent and unprecedented bank
merger and acquisition activity. The bank's niche is small to
middle-market businesses, professional service firms, non-profit
entities and successful individuals. It offers a complete range of
commercial, private, cash management, retail and mortgage banking
services delivered with a high degree of respect and integrity. The
statements in this press release that are not historical facts
constitute "forward-looking statements" as defined by Federal
Securities laws. Such statements, regarding Bay National
Corporation's anticipated future results of operations, are subject
to risks and uncertainties that could cause actual results to
differ materially from future results expressed or implied by such
forward-looking statements. Potential risks and uncertainties
include, but are not limited to, changes in interest rates, deposit
flows, loan demand and real estate values; as well as changes in
economic, competitive, governmental, regulatory, technological and
other factors which may affect Bay National Corporation
specifically or the banking industry generally. Forward- looking
statements speak only as of the date they are made. Bay National
Corporation will not update forward-looking statements to reflect
factual assumptions, circumstances or events that have changed
after a forward-looking statement was made. For further
information, please refer to the Bay National Corporation reports
filed with the U.S. Securities and Exchange Commission. SELECTED
UNAUDITED FINANCIAL DATA AS OF SEPTEMBER 30, 2005 and 2004 (dollars
in thousands, except per share data) 2005 2004 Total assets
$202,433 $157,936 Cash and due from banks 1,663 670 Federal funds
sold and other overnight investments 11,848 19,547 Investment
securities available for sale 1,541 1,546 Other equity securities
907 538 Loans, net 184,403 127,214 Deposits 180,353 142,285
Short-term borrowings 3,710 1,550 Note payable 2,100 500
Stockholders' equity 15,088 12,958 Common shares outstanding
1,924,436 1,903,960 Book value per share $7.84 $6.81 Ratio of
interest earning assets to interest bearing liabilities 124.68%
126.29% Stockholders' equity as a percentage of assets 7.45% 8.20%
SELECTED UNAUDITED FINANCIAL RATIOS FOR NINE MONTHS ENDED SEPTEMBER
30, 2005 and 2004 Weighted average yield/rate on: 2005 2004 Loans
7.18% 5.76% Investments and interest bearing cash balances 2.05%
.95% Deposits, short-term borrowings and note payable 2.79% 2.12%
Net interest spread 3.99% 3.02% Net interest margin 4.57% 3.46%
SELECTED UNAUDITED OPERATIONAL DATA FOR THE PERIODS ENDED SEPTEMBER
30, 2005 and 2004 (dollars in thousands, except per share data)
Three Months Ended Nine Months Ended September 30 September 30 2005
2004 2005 2004 Interest income $3,598 $2,001 $8,987 $5,313 Interest
expense 1,182 656 2,927 1,738 Net interest income 2,416 1,345 6,060
3,575 Provision for credit losses 297 136 532 350 Net interest
income after provision for credit losses 2,119 1,209 5,528 3,225
Non-interest income 231 132 540 401 Non-interest expenses 1,599
1,097 4,450 3,147 Income before income taxes 751 244 1,618 479
Income taxes - - - - Net income $751 $244 $1,618 $479 PER COMMON
SHARE Basic net income per share $.39 $.13 $.84 $.26 Diluted net
income per share $.37 $.13 $.81 $.25 Average shares outstanding
(Basic) 1,924,436 1,872,058 1,921,954 1,865,849 Average shares
outstanding (Diluted) 2,004,628 1,932,857 1,997,185 1,926,265 STOCK
PRICE High $21.00 $12.50 $21.00 $14.00 Low $17.25 $10.00 $13.20
$10.00 Close $19.00 $11.25 $19.00 $11.25 SUPPLEMENTAL INFORMATION:
(dollars in thousands) September 30, September 30, 2005 2004
Reconciliation of total deposits to core deposits: Total deposits
$180,353 $142,285 National market certificates of deposit (34,248)
(30,214) Variable balance accounts (3 customers as of September 30,
2005, 2 customers as of September 30, 2004) (15,422) (7,799)
Portion of variable balance accounts considered to be core 5,000
2,000 Core deposits $135,683 $106,272 DATASOURCE: Bay National
Corporation CONTACT: Hugh W. Mohler, Chairman & CEO,
+1-410-427-3707 or Mark A. Semanie, Executive Vice President &
CFO, +1-410-427-3715, both of Bay National Corporation Web site:
http://www.baynational.com/
Copyright