Bay Bancorp, Inc. Announces Year and Fourth Quarter 2017 Results


COLUMBIA, Md., Jan. 31, 2018 (GLOBE NEWSWIRE) -- Bay Bancorp, Inc. (“Bay”) (NASDAQ:BYBK), the savings and loan holding company for Bay Bank, FSB (“Bank”), announced today net income of $4.8 million, or $0.46 per basic common share and $0.45 per diluted common share, for the year ended December 31, 2017, compared to $2.0 million, or $0.16 per basic common share and diluted common share, for the year ended December 31, 2016.

For the fourth quarter ended December 31, 2017, net income decreased to $0.5 million, or $0.04 per basic common share and $0.04 per diluted common share, over the $0.8 million, or $0.07 per basic common share and $0.07 per diluted common share, reported for the fourth quarter of 2016. Net income results were decreased this quarter due to a $0.7 million increase in income tax expense related to the revaluation of our deferred tax assets and liabilities upon the enactment of the Tax Cuts and Jobs Act signed into law on December 22, 2017 and a $0.3 million increase in expenses related to our proposed merger with Old Line Bank. The adjustment of our deferred tax assets and liabilities represents a reasonable estimate and actual results could differ from those estimates. The enactment of the tax legislation is expected to reflect positively in our future results.

For the year ended December 31, 2017, we grew loans by $55.1 million or 11%. In the fourth quarter of 2017, loans increased by $17.0 million, or 3%, when compared to the quarter ended September 30, 2017. For the year ended December 31, 2017, deposits grew by $46.3 million. For the quarter ended December 31, 2017, deposits grew by $23.4 million primarily a result of a temporary escrow deposit. The Bank now has total assets exceeding $650 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 earnings announcement, Joseph J. Thomas, President and CEO, said, “I am very proud to announce yet another quarter with continued growth in our balance sheet and net interest income. These results were achieved while we have begun planning efforts for our pending merger with Old Line Bank which is expected to close in the second quarter of 2018. For the quarter ended December 31, 2017, the company’s net income before taxes was $1.7 million, an increase of $0.8 million over the $0.9 million recorded for the quarter ended December 31, 2016. We were also able to maintain and improve asset quality during the year through resolutions of acquired loans and our nonperforming assets which were $12.0 million at December 31, 2017, $11.4 million at September 30, 2017 and $15.8 million at December 31, 2016.

Since announcing our proposed merger with Old Line Bank, our discussions with shareholders, employees and clients have been universally positive. We believe that the merger will create the best banking franchise headquartered in the Baltimore Washington corridor with a size of $3.0 billion in assets, customer accessibility with 40 branches, strong client relationships, talented team of associates, diverse loan portfolio, low-cost core deposits and solid fee based revenues.”

Highlights for the Quarter and Year ended December 31, 2017

The Bank continued organic net growth in the fourth quarter of 2017. Loan growth for the quarter was favorable and for the year exceeded $55 million, up 11%. The Bank maintains an attractive 0.45% cost of funds for the fourth quarter of 2017.
The Bank has strong liquidity and capital positions along with capacity for future growth, with total regulatory capital to risk weighted assets of approximately 12.85% at December 31, 2017. The Bank had $6.5 million in remaining net purchase discounts on acquired loan portfolios at December 31, 2017.

Specific highlights are listed below:

  • Return on average assets for the quarter ended December 31, 2017 was 0.28% as compared to 1.35% and 0.53% for the quarter ended September 30, 2017 and December 31, 2016, respectively, and return on average equity for the quarter ended December 31, 2017 was 2.71%, as compared to 13.07% and 5.04% for the quarter ended September 30, 2017 and December 31, 2016, respectively.
     
  • With consistent organic growth, total assets were $659 million at December 31, 2017 compared to $652 million at September 30, 2017 and $620 million at December 31, 2016.
     
  • Total loans were $542 million at December 31, 2017, an increase of 3% from $525 million at September 30, 2017, and an increase of 11% from $487 million at December 31, 2016.
  • Total deposits were $573 million at December 31, 2017, an increase of 4% from $549 million at September 30, 2017, and an increase of 9% from $526 million at December 31, 2016. Non-interest bearing deposits were $135 million at December 31, 2017, an increase of 4% from $130 million at September 30, 2017, and an increase of 21% from $111 million at December 31, 2016.
     
  • Net interest income for the three-month period ended December 31, 2017 totaled $6.7 million, compared to $6.6 million for the third quarter of 2017 and $5.9 million for the three-month period ended December 31, 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 $619 million for the three-month period ended December 31, 2017, compared to $576 million for the same period of 2016.
     
  • Net interest margin for the quarter and year ended December 31, 2017 were 4.33% and 4.23%, respectively, which were higher than the 4.05% and 4.14%, respectively, recorded for the same periods of 2016. The margin for the year ended December 31, 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 Bank’s merger with Hopkins Federal Savings Bank on July 8, 2016 (the “Hopkins Merger”). Nonperforming assets represented 1.8% of total assets at December 31, 2017 and at September 30, 2017, compared to 2.6% at December 31, 2016.
     
  • Nonperforming assets increased $0.6 million to $12.0 million at December 31, 2017 from $11.4 million at September 30, 2017 and were $15.8 million at December 31, 2016. The increase over the third quarter of 2017 resulted primarily from the addition of nonaccrual loans during the period. The changes since December 31, 2016 were driven by decreases in purchased credit impaired loans partially offset by increases in nonaccrual loans.
     
  • The provision for loan losses for the quarter and year ended December 31, 2017 was $0.4 million and $1.7 million, respectively, compared to $0.4 million and $1.4 million, respectively, for the same periods of 2016. The increase for the year ended December 31, 2017 was primarily the result of increases in loan originations. As a result, the allowance for loan losses was $4.2 million at December 31, 2017, representing 0.77% of total loans, compared to $4.0 million, or 0.77% of total loans, at September 30, 2017, $2.8 million, or 0.58% of total loans, at December 31, 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.
     
  • As part of the Hopkins Merger, the Bank acquired a 51% interest in iReverse Home Loans, LLC (“iReverse”). The Bank’s interest in iReverse qualified as held for sale upon acquisition and was therefore required to be presented as a discontinued operations. Discontinued operations include noninterest income and noninterest expense related to iReverse. On December 15, 2016, the Bank entered into an Ownership Interest Sale Agreement and Assignment with the other owner of iReverse pursuant to which the Bank agreed to sell its 51% interest effective March 31, 2017 for $70,000 which was paid in cash on February 28, 2017. The net income from discontinued operations, net of taxes, for the quarter ended December 31, 2016 was $273,629, with $61,279 attributable to non-controlling interest and $212,350 attributable to common stockholders. The net income from discontinued operations, net of taxes, for the year ended December 31, 2016 was $366,034, with $199,491 attributable to non-controlling interest and $166,543 attributable to common stockholders.

Balance Sheet Review

Total assets were $659 million at December 31, 2017, representing increases of $7 million, or 1%, and $39 million, or 6%, when compared to September 30, 2017, and December 31, 2016, respectively. Investment securities were $58 million at December 31, 2017, representing decreases of $3 million, or 4%, from September 30, 2017 and $5 million, or 8% from December 31, 2016. Loans held for sale were $1.1 million, $0.4 million and $1.6 million at December 31, 2017, September 30, 2017 and December 31, 2016, respectively.

Total deposits were $573 million at December 31, 2017, an increase of $23 million, or 4%, when compared to the $549 million recorded at September 30, 2017 and an increase of $46 million, or 9%, when compared to the $526 million recorded at December 31, 2016. The activity for the fourth quarter was primarily a result of a temporary escrow deposit. The activity for the year included normal cyclical deposit fluctuations and a $23 million increase in non-interest bearing deposits. Short-term borrowings from the Federal Home Loan Bank decreased to $10 million compared to $25 million at September 30, 2017 and $20 million at December 31, 2016.

Stockholders’ equity was $72 million at December 31, 2017 and $72 million at September 30, 2017, and increased from $66 million at December 31, 2016. The minor change in the fourth quarter was related primarily to $0.5 million in lower corporate earnings which included the $0.7 million increase in income tax expense related to the revaluation of our deferred tax assets and liabilities upon the enactment of the Tax Cuts and Jobs Act and a $0.3 million increase in expenses related to our proposed merger with Old Line Bank offset by $0.4 million in pension related other comprehensive losses. The increase for the year was primarily related to $4.8 million in corporate earnings and $0.8 million related to the issuance of common stock under the stock compensation plan.  The book value of Bay’s common stock was $6.74 per share at December 31, 2017, compared to $6.73 per share at September 30, 2017, and $6.29 per share at December 31, 2016.

During 2016, Bay purchased a total of 743,436 shares of its common stock at an average price of $5.10 per share. Bay Bancorp has not elected to repurchase additional shares since that time.

At December 31, 2017, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was approximately 12.11% at December 31, 2017 as compared to 12.27% at September 30, 2017, and 12.32% at December 31, 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 December 31, 2017 and 2016

Net income for the three-month period ended December 31, 2017 was $0.5 million, compared to net income of $2.2 million and $0.8 million for the three-month periods ended September 30, 2017 and December 31, 2016, respectively.

Net interest income for the three-month period ended December 31, 2017 totaled $6.7 million compared to $6.6 million for the previous quarter and $5.9 million for the fourth quarter of 2016. The increase in interest income primarily resulted from interest-earning asset growth from expansion of the Bank originated loan portfolio. As of December 31, 2017, the remaining net loan discounts on the Bank’s loan portfolio was $6.5 million.

Noninterest income for the three-month period ended December 31, 2017 was $1.3 million compared to $2.7 million and $1.1 million for the three-month periods ended September 30, 2017 and December 31, 2016, respectively. These results were lower when compared to the three-month period ended September 30, 2017, which included a $1.4 million insurance income gain related to the Hopkins Merger. Adjusted for these merger related changes, Bay recorded a small difference in noninterest income when compared to the third quarter of 2017 and the fourth quarter of 2016.

For the three-month period ended December 31, 2017, noninterest expense was $6.0 million, compared to $5.3 million and $5.7 for the three-month periods ended September 30, 2017 and December 31, 2016, respectively.  After adjusting for the $0.3 million in merger related expenses in the fourth quarter of 2017, the primary contributor to the $0.4 million increase when compared to the third quarter of 2017 was an increase in salaries and employee benefit expense related to higher incentive and health insurance expenses. The primary contributor to the $0.3 million increase when compared to the fourth quarter of 2016 was an increase in salaries and employee benefit expense related to higher incentive and health insurance expenses partially offset by decreases in legal and professional fees, and foreclosed property and FDIC insurance expenses.

For the twelve-month periods ended December 31, 2017 and 2016

Net income for the year ended December 31, 2017 was $4.8 million, compared to net income of $2.0 million for the year ended December 31, 2016.

Net interest income for the year ended December 31, 2017 totaled $25.5 million, compared to $21.2 million for the same period of 2016. The increase in interest income resulted from interest-earning asset growth from expansion of the Bank originated loan portfolio, selective investment purchases and the effects of the Hopkins Merger.

Noninterest income for the year ended December 31, 2017 was $6.6 million, which included a $1.4 million insurance income gain. Noninterest income was $6.0 million recorded for the year ended December 31, 2016, which included a $0.9 million bargain purchase gain related to the Hopkins Merger. After adjusting for these merger related changes, the $0.1 million increase in 2017 compared to 2016 was related to an increase in sponsorship fee income and BOLI earnings partially offset by lower net gains on securities and lower mortgage banking fee income.

For the year ended December 31, 2017, noninterest expense was $21.6 million, compared to $23.2 million for the same period in 2016, or $21.2 million and $21.4 million when adjusting for $0.4 million and $1.8 million in merger expenses for 2017 and 2016, respectively. Adjusted for the merger related expenses, the primary contributors to the $0.2 million decrease in noninterest expenses were decreases in legal and professional fees, and lower occupancy, foreclosed property and FDIC insurance expenses partially offset by an increase in salaries and employee benefit expense related to higher incentive and health insurance 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”.

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

 

            
 BAY BANCORP, INC. - Consolidated       
 BALANCE SHEETS        
      December 31, 2017 September 30, 2017  December 31, 2016
      (unaudited) (unaudited)   
           
           
            
  ASSETS         
  Cash and due from banks $  9,316,482  $  6,697,379   $  7,591,685 
  Interest bearing deposits with banks and federal funds sold   22,249,796     32,827,575      32,435,771 
  Total cash and cash equivalents   31,566,278     39,524,954      40,027,456 
  Investment securities available for sale, at fair value   55,864,016     58,202,192      60,232,727 
  Investment securities held to maturity, at amortized cost   1,073,107     1,094,740      1,158,238 
  Restricted equity securities, at cost   1,252,495     1,620,800      1,823,195 
  Loans held for sale     1,097,160     401,803      1,613,497 
            
  Loans, net of deferred fees and costs   542,250,292     525,261,491      487,103,713 
  Allowance for loan losses    (4,156,425)    (4,049,647)     (2,823,153)
  Loans, net     538,093,867     521,211,844      484,280,560 
  Real estate acquired through foreclosure   991,615     1,077,687      1,224,939 
  Premises and equipment, net    3,306,025     3,517,788      3,882,343 
  Bank owned life insurance    16,205,352     16,084,188      15,729,302 
  Core deposit intangibles    2,241,127     2,415,056      3,030,309 
  Deferred tax assets, net    1,806,352     2,556,429      2,984,718 
  Accrued interest receivable     2,176,359     2,018,900      1,884,945 
  Accrued taxes receivable    2,469,620     841,299      1,153,102 
  Prepaid expenses     604,381     806,878      1,001,723 
  Other assets     225,170     209,373      276,540 
  Total assets  $  658,972,924  $  651,583,931   $  620,303,594 
            
  LIABILITIES        
  Noninterest-bearing deposits $  134,617,261  $  129,554,117   $  111,378,694 
  Deposits interest bearing    438,137,299     419,801,649      415,079,700 
  Total deposits     572,754,560     549,355,766      526,458,394 
            
  Short-term borrowings    10,000,000     25,000,000      20,000,000 
  Defined benefit pension liability    612,112     319,595      994,156 
  Accrued expenses and other liabilities   3,730,123     5,098,186      6,923,818 
  Total liabilities     587,096,795     579,773,547      554,376,368 
  STOCKHOLDERS' EQUITY       
  Common stock     10,667,227     10,667,227      10,456,098 
  Additional paid-in capital    41,692,751     41,624,354      40,814,285 
  Retained earnings      19,180,657     18,807,973      14,426,969 
  Accumulated other comprehensive income   335,494     710,830      30,383 
  Total controlling interest    71,876,129     71,810,384      65,727,735 
  Non-controlling interest    -     -      199,491 
  Total stockholders' equity    71,876,129     71,810,384      65,927,226 
  Total liabilities and equity $  658,972,924  $  651,583,931   $  620,303,594 

 

             
 BAY BANCORP, INC. - ConsolidatedThree Months Ended  Years Ended
 INCOME STATEMENTS   December 31, 2017 September 30, 2017 December 31, 2016   December 31, 2017 December 31, 2016
      (unaudited)(unaudited)(unaudited)  (unaudited) 
             
  Interest income         
  Interest and fees on loans $6,907,484$6,718,832 $5,983,623   $25,975,924 $21,668,074
  Interest on loans held for sale  11,003 12,447  10,728    43,358  120,997
  Interest and dividends on securities 373,084 379,600  305,374    1,492,003  1,034,090
  Interest on deposits with banks and federal funds sold 101,566 129,160  81,467    375,735  204,270
  Total interest income  7,393,137 7,240,039  6,381,192    27,887,020  23,027,431
             
  Interest expense         
  Interest on deposits   576,999 541,283  496,442    2,019,129  1,658,698
  Interest on federal funds purchased   -   43    -      132    28
  Interest on short-term borrowings   66,812   85,012    20,163      319,959    191,408
         643,811   626,338    516,605      2,339,220    1,850,134
  Net interest income     6,749,326   6,613,701    5,864,587      25,547,800    21,177,297
  Provision for loan losses    380,176   313,963    374,000      1,656,983    1,389,533
  Net interest income after provision   6,369,150   6,299,738    5,490,587      23,890,817    19,787,764
             
  Noninterest income         
  Payment sponsorship fees    771,209   766,951    690,404      3,039,162    2,524,101
  Mortgage banking fees and gains   62,019   83,537    158,717      527,947    832,990
  Service charges on deposit accounts   97,868   96,874    49,414      337,012    278,949
  Bargain purchase gain    -   -    (141,329)     -    893,127
  (Loss) gain on securities    -   (64,898)   194,448      (59,377)   680,982
  Other noninterest income    322,545   1,775,325    123,942      2,745,720    783,447
  Total operating income    1,253,641   2,657,789    1,075,596      6,590,464    5,993,596
             
  Noninterest expenses         
  Salaries and employee benefits    3,434,189   3,197,133    2,717,398      12,413,164    11,301,774
  Occupancy and equipment expenses   724,716   683,356    813,916      2,832,945    3,341,221
  Data processing fees     376,914   381,032    313,020      1,390,458    1,212,471
  Legal, accounting and other professional fees   104,105   83,804    298,623      716,358    1,082,206
  Advertising and marketing related expenses   127,760   133,217    134,403      408,147    378,924
  FDIC insurance costs    56,113   88,008    158,721      311,063    464,616
  Foreclosed property expenses and OREO sales, net   27,686   134,817    147,254      200,596    475,197
  Loan collection costs     19,965   (12,259)   49,612      78,547    105,816
  Core deposit intangible amortization   173,929   181,912    235,465      789,182    790,876
  Merger related expenses    289,512   -    204,154      439,055    1,758,337
  Other noninterest expenses    618,539   429,610    641,655      2,059,701    2,274,970
  Total operating expenses    5,953,428   5,300,630    5,714,221      21,639,216    23,186,408
  Net income before taxes    1,669,363   3,656,897    851,962      8,842,065    2,594,952
  Income tax expense     1,208,880   1,458,061    314,142      4,000,579    1,001,596
  Net income from continuing operations   460,483   2,198,836    537,820      4,841,486    1,593,356
  Net income from discontinued operations, net of taxes   -   -    273,629      -    366,034
  Net income   460,483 2,198,836  811,449    4,841,486  1,959,390
  Net income from discontinued operations attributable to non-controlling interest - -  61,279    -  199,491
  Net income available to common stockholders 460,483 2,198,836  750,170    4,841,486  1,759,899
             
  Weighted average shares        
  Basic    10,667,227 10,655,098  10,389,681    10,607,217  10,734,748
  Diluted    10,781,805 10,805,791  10,532,600    10,740,982  10,860,152
             
  Earnings per share         
  available to common shareholders       
  Basic   $0.04$0.21 $0.07   $0.46 $0.16
  Diluted   $0.04$0.20 $0.07   $0.45 $0.16
             

 

              
BAY BANCORP, INC. AND SUBSIDIARY             
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY           
For the Year Ended December 31, 2017 and 2016           
                 
                 
         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    -    -    1,759,899    -    199,491    1,959,390    
Other comprehensive income    -    -    -    (543,177)   -    (543,177)   
Stock-based compensation  -  94,607  -  -  -  94,607    
Issuance of common stock for stock compensation plan & 401K match  136,602  389,313  -  -  -  525,915    
Repurchase of common stock  (743,436) (3,048,562) -  -  -  (3,791,998)   
Balance December 31, 2016 $10,456,098 $40,814,285 $14,426,969 $30,383 $199,491 $65,927,226    
                 
                 
          Accumulated        
      Additional     Other   Non-      
    Common   Paid-in   Retained   Comprehensive   controlling      
(unaudited)   Stock   Capital   Earnings   Income   Interest   Total    
                 
Balance December 31, 2016 $  10,456,098  $   40,814,285  $   14,426,969  $   30,383  $   199,491  $   65,927,226    
                 
Net income    -    -    4,841,486    -    -    4,841,486    
Sale of iReverse    -    -    -    -    (199,491)   (199,491)   
Other comprehensive income  -  -  (87,798) 305,111  -  217,313    
Stock-based compensation  -  263,168  -  -  -  263,168    
Issuance of common stock under stock compensation plan  211,129  615,298  -  -  -  826,427    
Balance December 31, 2017 $10,667,227 $41,692,751 $19,180,657 $335,494 $- $71,876,129    
                 


                    
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 
At December 31, 2017:                  
Total Risk-Based Capital Ratio$  72,735 12.85% $  45,291 8.00% $  56,613 10.00% 
Tier I Risk-Based Capital Ratio$  68,579 12.11% $  33,968 6.00% $  45,291 8.00% 
Common Equity Tier I Capital Ratio$  68,579 12.11% $  25,476 4.50% $  36,799 6.50% 
Leverage Ratio$  68,579 10.54% $  26,036 4.00% $  32,546 5.00% 
                    
At September 30, 2017:                  
(unaudited)                  
Total Risk-Based Capital Ratio$  71,847 13.01% $  44,194 8.00% $  55,243 10.00% 
Tier I Risk-Based Capital Ratio$  67,797 12.27% $  33,146 6.00% $  44,194 8.00% 
Common Equity Tier I Capital Ratio$  67,797 12.27% $  24,859 4.50% $  35,908 6.50% 
Leverage Ratio$  67,797 10.53% $  25,751 4.00% $  32,189 5.00% 
                    
At 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% 


                
BAY BANCORP, INC. AND SUBSIDIARY               
SELECTED FINANCIAL DATA                
                  
                  
  Three Months Ended  Year Ended 
    December 31,  September 30, December 31, December 31, 
    2017   2017  2016  2017  2016  
    (unaudited)  (unaudited) (unaudited)  (unaudited)    
                  
Financial Data:                
Assets  $658,972,924  $651,583,932  $620,303,594  $658,972,924  $620,303,594  
Investment securities  58,189,618   60,917,732   63,214,160   58,189,618   63,214,160  
Loans (net of deferred fees and costs)  542,250,292   525,261,491   487,103,713   542,250,292   487,103,713  
Allowance for loan losses  (4,156,425)  (4,049,647)  (2,823,153)  (4,156,425)  (2,823,153) 
Deposits   572,754,560   549,355,767   526,458,394   572,754,560   526,458,394  
Borrowings  10,000,000   25,000,000   20,000,000   10,000,000   20,000,000  
Equity attributable to non-controlling interest  -   -   199,491   -   199,491  
Equity attributable to common shareholders    71,876,129     71,810,384     65,727,735     71,876,129     65,727,735  
                  
Net income from continuing operations    460,483     2,198,836     537,820     4,841,486     1,593,356  
Net income from discontinued operations, net of taxes   -     -     273,629     -     366,034  
Net income    460,483     2,198,836     811,449     4,841,486     1,959,390  
                  
Net income available to common stockholders    460,483     2,198,836     750,170     4,841,486     1,759,899  
Net income from discontinued operations attributable to non-controlling interest  -   -   61,279   -   199,491  
                  
Average Balances: (unaudited)                
Assets   642,531,387   644,213,523   603,746,545   632,726,301   536,333,860  
Investment securities  60,211,519   64,252,312   54,013,150   64,331,571   42,154,769  
Loans (net of deferred fees and costs)  528,707,904   517,470,469   483,690,335   507,166,275   436,793,412  
Borrowings  22,206,557   26,430,645   1,975,000   29,728,293   26,493,284  
Deposits   549,819,040   546,060,168   529,537,517   531,075,110   443,144,111  
Stockholders' equity  67,396,179   66,757,244   64,084,518   66,781,799   66,146,705  
                  
Performance Ratios:                
Annualized return on average assets  0.28%  1.35%  0.53%  0.77%  0.37% 
Annualized return on average equity  2.71%  13.07%  5.04%  7.25%  2.96% 
Yield on average interest-earning assets  4.74%  4.66%  4.41%  4.62%  4.50% 
Rate on average interest-bearing liabilities  0.57%  0.55%  0.48%  0.53%  0.50% 
Net interest spread  4.17%  4.11%  3.93%  4.09%  4.00% 
Net interest margin  4.33%  4.23%  4.05%  4.23%  4.14% 
                  
Book value per share $6.74  $6.73  $6.29  $6.74  $6.29  
Basic net income per share  0.04   0.21   0.07   0.46   0.16  
Diluted net income per share  0.04   0.20   0.07   0.45   0.16