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Our commitment is to exceed expectations, one customer at a time.  And that's what makes Bay Bank unique - just like the customers we serve.  Read More >>

Business Banking

Our bank was built by entrepreneurs, for entrepreneurs. At Bay Bank, you will receive the responsive, personal service of a local bank combined with the strength and resources of a larger institution.  Read More >>

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What matters to you, matters to us. 

Our commitment is to exceed expectations one customer at a time. At Bay Bank, you'll find a bank where bankers and customers actually know one another. You’ll have access to products, services and resources that provide the ability to achieve your financial goals.

We are proud to be a local bank dedicated to providing the personal service of a community bank combined with a larger institution’s strength of resources. 

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Recent News View All
(Columbia, Maryland) – July 30, 2015 – Bay Bancorp, Inc. (“Bay”) (NASDAQ: BYBK), the savings and loan holding company for Bay Bank, FSB (“Bank”), announced today net income of $0.55 million or $0.05 per basic and diluted share for the second quarter of 2015, compared to net income of $0.34 million or $0.03 per basic and diluted share for the first quarter of 2015, and $2.76 million or $0.27 per basic and diluted share for the second quarter of 2014.  Bay reported net income of $0.89 million or $0.08 per diluted share for the first half of 2015, compared to $2.84 million or $0.29 per diluted share for the first half of 2014, which included a bargain purchase gain from the May 30, 2014 acquisition of Slavie Federal Savings Bank from the FDIC (the “Slavie Acquisition”) and income from the recognition of the remaining interest rate mark-to-market adjustment related to the Bank’s exit from its IRA business, representing a combined $3.1 million of pre-tax income.  Excluding the benefit of the 2014 bargain purchase gain and exit of the IRA business, pre-tax income increased by $0.84 million for the first half of 2015 when compared to the first half of 2014.

 

Commenting on the announcement, Joseph J. Thomas, President and CEO, said, “As we continue to execute our growth strategy, both organically and through strategic acquisitions, we completed a series of steps in the second quarter to enhance franchise growth with the hiring of Rich Ohnmacht as Corridor Market President, reduce non-interest expense with the consolidation of our headquarters location to Columbia and manage our capital levels with the  adoption of a stock repurchase program, all combined as a path to enhance stockholder value.”  Thomas continued, “The Board’s approval of a stock repurchase program reflects continued confidence in the value of our company and our ability to execute the Company’s key strategies as the bank built by entrepreneurs for entrepreneurs.”

 

Highlights from the First Six Months of 2015

The Bank’s relationship management activities resulted in the growth of new loans in the Bank’s originated portfolio by a 21.3% annualized pace in the first six-months of 2015.  Deposit mix changes were favorable, with declines in certificate of deposit balances offset by noninterest-bearing deposit growth, as the Bank recorded annualized growth of over 13% for this deposit type during the period. 
Bay has a very strong capital position and capacity for future growth with total regulatory capital to risk weighted assets of 17.4% as of June 30, 2015.  The Bank has a proven record of success in acquisitions and acquired problem asset resolutions and, at June 30, 2015, had $12.3 million in remaining net purchase discounts on acquired loan portfolios.

 

Specific highlights are listed below:

 

·   The return on average assets for the three- and six-month periods ended June 30, 2015 was 0.46% and 0.37%, respectively, as compared to 2.37% and 1.32%, respectively, for the same periods of 2014.  The return on average equity for the three- and six-month periods ended June 30, 2015 was 3.26% and 2.66%, respectively, as compared to 17.61% and 9.89%, respectively, for the same periods in 2014.

 

·   Total assets were $489 million at June 30, 2015 compared to $487 million at March 31, 2015 and $480 million at December 31, 2014.

 

·   Total loans were $386 million at June 30, 2015, a decrease of 1.5% from $392 million at March 31, 2015, a decrease of 1.9% from $393 million at December 31, 2014 and a decrease of 2.4% from $395 million at June 30, 2014.

·   Total deposits were $384 million at June 30, 2015, a decrease of 4.9% from $404 million at March 31, 2015, a decrease of 0.9% from $388 million at December 31, 2014 and a decrease of 8.3% from $419 million at June 30, 2014.  Non-interest bearing deposits were $97 million at June 30, an increase of 6.5% from $92 million at December 31, 2014.


·  
Net interest income for the three- and six-month periods ended June 30, 2015 totaled $5.5 million and $10.8 million, respectively, compared to $5.8 million and $11.0 million, respectively, for the same periods of 2014.  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 $425 million for the six months ended June 30, 2015, compared to $365 million for the same period of 2014. 

·   Net interest margin for the three- and six-month periods ended June 30, 2015 was 4.88% and 4.81%, respectively, compared to 5.56% and 5.48%, respectively, for the same periods of 2014.  The margin for six-months ended June 30, 2015 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.  For the six-months ended June 30, 2015, the earning asset portfolio yield was influenced by a $1.19 million decline in net discount accretion of purchased loan discounts recognized in interest income and a $0.66 million decrease in the fair value amortization on deposits when compared to the same period of 2014.  The margin declined by 67 basis points during the six months ending June 30, 2015 when compared to a year earlier, with the reduction in loan and deposit accretion accounting for 82 basis points of the fluctuation.

 

·   Nonperforming assets decreased to $13.1 million at June 30, 2015 or 16.1%, from $15.61 million at March 31, 2015, and declined 29.0% from $18.46 million at June 30, 2014.  The second quarter of 2015 decrease resulted from the Bank’s continued resolution of acquired nonperforming loans.

·   The provision for loan losses for the three and six months ended June 30, 2015 was $297,000 and $572,000, respectively, compared to $141,000 and $360,000, respectively, for the same periods of 2014.  The increases for the 2015 periods were primarily the result of increases in loan originations.  As a result, the allowance for loan losses was $1.43 million at June 30, 2015, representing 0.37% of total loans, compared to $1.35 million, or 0.35% of total loans, at March 31, 2015 and $1.29 million, or 0.33% of total loans, at December 31, 2014.  Management expects both the allowance for loan losses and the related provision for loan losses to increase in the future due to the gradual accretion of the discount on the acquired loan portfolios and an increase in new loan originations. 

 

Stock Repurchase Program

Bay today also announced that the Board of Directors has authorized the repurchase of up to 250,000 shares of its common stock.  Bay plans to repurchase its shares in open market transactions from time to time or through privately negotiated transactions, at Bay’s discretion.  The repurchase program is authorized to continue for the next twelve (12) months.

 

The timing and amount of any share repurchases will depend on a variety of factors, including the trading price of Bay’s common stock, securities laws restrictions, including but not limited to compliance with blackout periods, regulatory requirements, potential alternative uses for capital, and market and economic conditions.  Bay intends to fund any repurchases through its consolidated earnings and borrowings under its holding company credit facility.  Repurchased shares will be cancelled and returned to unissued but authorized status.  The repurchase program does not obligate Bay to acquire any particular amount of shares and the repurchase program may be modified, suspended or discontinued at any time, at Bay’s discretion.

 

Second Quarter Events

On May 27, 2015, Bay announced the election of two new members of its Board of Directors.  Pierre Abushacra is a resident of Montgomery County, Maryland and the founder and CEO of Firehook Bakery, a retail and wholesale bakery with 10 locations in the broader Washington, D.C. market.  Michael Chairamonte is the founder and former President of the Southern Maryland Healthcare System based in Prince George’s County, Maryland before its sale to MedStar.

 

On June 1, 2015, the Bank announced that Richard H. Ohnmacht, a long-time resident of Howard County, joined the Bank as Corridor Market President and Senior Vice President where he will lead efforts to expand the Bank’s reach into the Washington, D.C. corridor.

 

On July 1, 2015, the Bank announced it moved its corporate headquarters to Columbia, Maryland, where it also opened a new full service branch on April 27, 2015.  This is the Bank’s first branch in Howard County, Maryland.  The headquarters and branch are located at 7151 Columbia Gateway Drive.  The headquarters change resulted in 14 associates relocating to Columbia and 13 associates remaining in the Lutherville sales offices.

 

Balance Sheet Review

Total assets were $489 million at June 30, 2015, an increase of $9 million, or 1.79%, when compared to December 31, 2014.  Investment securities increased by $4.4 million or 12.1% for the six-month period, while loans held for sale increased by $9.6 million or 133%.  These increases were partially offset by a $7.4 million or 1.9% decline in loans held for investment.

 

Total deposits were $384 million at June 30, 2015, a decrease of $3.4 million, or 0.9%, when compared to December 31, 2014.  The decrease was primarily due to managed declines in certificates of deposits and seasonal deposit fluctuations, offset by a $6 million or 6.5% increase in non-interest bearing deposits.  The decrease in deposits resulted in an $11 million increase in short-term borrowings over the prior period.

 

Stockholders’ equity increased to $66.1 million at June 30, 2015 compared to $65.7 million at March 31, 2015, $66.6 million at December 31, 2014, and $65.0 million at June 30, 2014.  The second quarter 2015 increase related to corporate earnings partially offset by net market value adjustments on bank owned investment securities.  The decrease over the first six months of 2015 related to an increase in the Bank’s retirement income plan liability due to changes in actuarial assumptions, offset by related deferred taxes.  The book value of Bay’s common stock was $5.98 at June 30, 2015 compared to $5.96 per share at March 31, 2015 and $6.01 per share at June 30, 2014.

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 $13.1 million at June 30, 2015 from $15.61 million at March 31, 2015 and from $14.34 million at December 31, 2014.  The decreases were driven by related decreases in nonaccrual loans of $2.0 million and $0.43 million from March 31, 2015 and December 31, 2014 respectively.  Nonperforming assets represented 2.68% of total assets at June 30, 2015, which was down from 3.22% at March 31, 2015 and from 2.99% at December 31, 2014. 

At June 30, 2015, the Bank remained above all “well-capitalized” regulatory requirement levels.  The Bank’s tier 1 risk-based capital ratio was 17.02% at June 30, 2015 as compared to 16.22% at March 31, 2015, 16.31% at December 31, 2014 and 15.70% at June 30, 2014.  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 six-month periods ended June 30, 2015 was $0.55 million and $0.89 million, respectively, compared to net income of $2.76 million and $2.84 million, respectively,
for the same periods of 2014.  With the changes to net income primarily the result of 2014 bargain purchase gain attributable to the Slavie Acquisition  and the 2014 recognition of the remaining interest rate mark-to-market adjustment of $2.4 million related to the exit of our IRA business, changes were less comparable to prior periods. 

 

Net interest income decreased to $10.8 million for the six months ended June 30, 2015 compared to $11.0 million for the same period of 2014.  The decrease was the result of a $51.6 million growth in average interest-earning assets largely due to the Slavie Acquisition, offset by a $1.19 million decline in net discount accretion of purchased loan discounts recognized in interest income and a $0.66 million decrease in the fair value amortization on deposits.  Excluding the impact of the fair value accounting, net interest income increased by $1.74 million when compared to the six months ended June 30, 2014.  The net interest margin for second quarter of 2015 increased to 4.88% from 4.73% for the first quarter of 2015.  The net interest margin for the six months ended June 30, 2015 decreased to 4.81% compared to 5.48% for the same period of 2014 due to the decline in discount accretion on loans and deposits.  As of June 30, 2015, the remaining net loan discounts on the Bank’s loan portfolio, including loans acquired in the Slavie Acquisition, totaled $12.3 million.

Noninterest income for the three months ended June 30, 2015 was $1.6 million compared to $1.2 million for the three months ended March 31, 2015 and $4.3 million for the three months ended June 30, 2014.  The increase over the immediately prior quarter was primarily the result of $0.05 million increase in electronic banking fees and by a $0.21 million increase in mortgage banking fees and gains.  The decrease from the second quarter of 2014 was primarily the result of the above-mentioned 2014 $2.4 million remaining interest rate mark-to-market adjustment on IRA deposits and the $0.70 million bargain purchase gain recognized in 2014, offset by a $0.41 million increase in mortgage banking fees and gains.

Noninterest income for the six months ended June 30, 2015 was $2.8 million compared to $5.7 million for the same period of 2014.  This decrease was primarily the result of the above-mentioned 2014 $2.4 million remaining interest rate mark-to-market adjustment on IRA deposits, the $0.70 million bargain purchase gain recognized in 2014 and a $0.11 million decrease in electronic banking fees, offset by a $0.49 million increase in mortgage banking fees and gains.  Excluding the 2014 benefit of the bargain purchase gain and the benefit of the IRA exit, year-to-date 2015 noninterest income expanded by $0.40 million or 16.7% when compared to the same period of 2014.   Expectations are for mortgage fees and gains to expand during the remainder of 2015.

 

Noninterest expense reduction is a key focus for 2015 net income improvement.  For the three months ended June 30, 2015, noninterest expense was $5.9 million compared to $5.7 million for the prior quarter and $6.3 million for the second quarter of 2014.  The primary contributors to the decrease when compared to the second quarter of 2014 were decreases of $0.13 million in occupancy expense, $0.02 million in foreclosed property expenses, $0.08 million in advertising-related expenses and $0.13 million in merger related expenses.

 

For the six months ended June 30, 2015, noninterest expense was $11.6 million compared to $12.6 million for the same period of 2014.  The primary contributors to the decrease when compared to the first six-months of 2014 were decreases of $0.46 million in salary and employee benefits, $0.16 million in occupancy expense, $0.16 million in foreclosed property expenses and $0.09 million in advertising-related expenses.

 

Bay Bancorp, Inc. Information

Bay Bancorp, Inc. is a financial holding company and a savings and loan holding company headquartered in Columbia, Maryland.  Through Bay Bank, FSB, its federal savings bank subsidiary, Bay Bancorp, Inc. serves the community with a network of 11 branches strategically located throughout the Baltimore Metropolitan Statistical Area, particularly Baltimore City and the Maryland counties of Baltimore Washington corridor.  The Bank serves small and medium size businesses, professionals and other valued customers by offering a broad suite of financial products and services, including on-line and mobile banking, commercial banking, cash management, mortgage lending and retail banking.  The Bank funds a variety of loan types including commercial and residential real estate loans, commercial term loans and lines of credit, consumer loans and letters of credit.  Additional information is available at www.baybankmd.com.

 

Forward-Looking Statements

The statements contained herein that are not historical facts are forward-looking statements (as defined by the Private Securities Litigation Reform Act of 1995) based on management's current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company.  There can be no assurance that future developments affecting the Company will be the same as those anticipated by management.  These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” and similar expressions.  Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true.  These projections involve risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements.  For a discussion of these risks and uncertainties, see the section of the periodic reports filed by Bay Bancorp, Inc. with the Securities and Exchange Commission entitled “Risk Factors”.

 

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

(Columbia, Md.) – July 1, 2015 – Bay Bank announced today that it has moved its corporate headquarters to Columbia, where it also opened a new, full-service branch on April 27. This news is the latest in a collection of recent announcements that reflect a strategic intention to grow the bank’s franchise in the Baltimore Washington Corridor where there is attractive economic growth and a vibrant community of entrepreneurs.

Historically, the bank’s primary geographic footprint has been in the Baltimore metropolitan area; however, a change in strategy has shifted its reach to extend into Howard County and the southern portion of the Baltimore Washington Corridor. Bay Bank recently added two board members who will be partnering with a team of bankers specifically to support the expansion into Prince George’s County and Montgomery County. The Bank also appointed Richard Ohnmacht as corridor market president to focus on growth throughout Anne Arundel, Howard, Montgomery and Prince George’s Counties.

“Howard County has seen tremendous development over the past decade, and moving our corporate headquarters to Columbia is the logical next step for Bay Bank as we continue to seek opportunities for growth,” said Joseph J. Thomas, president and CEO of Bay Bank. “We’ve always been invested in our local communities, and this location in the heart of the Baltimore Washington Corridor will allow us to better serve entrepreneurs throughout the region.”

The headquarter change results in 14 associates relocating to Columbia and 13 associates remaining in the Lutherville sales offices. With this move, Bay Bank now has 61 full-time employees in the new headquarters location, a 20,427-square-foot space. The new corporate headquarters and full-service branch are located at 7151 Columbia Gateway Drive, staffed by a full team of professionals across commercial, consumer and mortgage services.

 

The branch in Columbia, focused on business customers, is approximately 200 square feet. This is part of the bank’s introduction of a new, smaller concierge branch concept in light of changing banking preferences and usage patterns of traditional bank branches by businesses and consumers. The significant reduction in branch size comes at a time when Bay Bank has built out a robust portfolio of technology products that make the bank readily accessible to customers through multiple online channels. 

 

Bay Bank has been known for its focus on commercial and small business clients and respective service offerings since being founded in 2010. With the acquisition of Carrollton Bank in 2013 and Slavie Federal Savings Bank in 2014, the Bank has extended its reach in offering a broad array of core banking services to consumers throughout the Baltimore metropolitan region. Bay Bank now has more than $480 million in assets after the acquisitions.  

About Bay Bank

Bay Bank, FSB is headquartered in Columbia, Maryland and serves the community with a network of 11 branches strategically located throughout the region. Founded in 2010, the bank has quickly developed a strong reputation for its focus on the bank built by entrepreneurs for entrepreneurs. The bank has total assets of around $480 million. The bank’s parent company, Bay Bancorp, Inc., trades on the NASDAQ Capital Market under the ticker symbol “BYBK.”

(Lutherville, Maryland) – June 1, 2015 – Bay Bank announced today that Richard H. Ohnmacht, a long-time resident of Howard County, will be joining the bank as Corridor Market President and Senior Vice President.

Ohnmacht, a veteran of the banking industry, will lead the efforts to expand the bank’s reach into the Washington corridor.   Managing a team of commercial lenders, Ohnmacht will be responsible for developing a market presence and generating commercial loan growth throughout Anne Arundel, Howard, Montgomery, and Prince George’s counties. 

A PNC bank officer since 2007, Ohnmacht has over 24 years of experience in banking and finance in the Baltimore/Washington corridor.  Most recently, he served as Real Estate Banking Relationship Manage, also lending his expertise to customers in the areas of treasury management and wealth management.  Ohnmacht has extensive experience in successfully leading large teams of commercial and real estate lenders.  Prior to joining PNC in 2007, he worked for Citizens National Bank where as Senior Lender he managed a group of 16 lenders with a portfolio of over $500 million in loans covering Howard, Prince Georges and Anne Arundel counties.

 “Rich’s in-depth knowledge of the market coupled with his extensive background in C&I and Commercial Real Estate lending makes him ideally suited for this role,” said Joseph J. Thomas, President & CEO of Bay Bank.  “He is a proven leader with a track record of new business acquisition and customer retention.  We are excited to have him as a part of the Bay Bank team.” 

Bay Bancorp, parent company of Bay Bank, recently elected two new directors to the board with strong ties to Prince Georges and Montgomery counties.  Ohnmacht’s team, along with the two new directors, will work closely together to build a formidable presence in these counties.

“Joining Bay Bank is the perfect opportunity for me to take the experience that I have gained and make a real difference in these markets,” said Ohnmacht.  “It will be refreshing to work for a local business bank focused on building relationships with entrepreneurs.”  

Ohnmacht is also active in local business organizations including the Howard Chamber of Commerce (Legislative Sub-Committee Member), Baltimore Washington Cooridor Chamber (Foundation Board Member) and the Howard County Board to Promote Self-Sufficiency (Board Member), to name a few.  He is also involved with the BWI Partnership and the Baltimore Chapter of NAIOP.

Ohnmacht will be serving these markets from the Bank’s Howard County offices located at 7151 Columbia Gateway Drive in Columbia. 

About Bay Bank

Bay Bank, FSB is headquartered in Lutherville, Maryland and serves the community with a network of 11 branches strategically located throughout the region.  Founded in 2010, the bank has quickly developed a strong reputation for its focus on commercial and small business clients and respective service offerings. The bank has total assets of around $487 million.  The bank’s parent company, Bay Bancorp, Inc., trades on the NASDAQ Capital Market under the ticker symbol “BYBK”. 

(Lutherville, Maryland) – May 27, 2015 – In conjunction with its annual meeting, Bay Bancorp announced today the election of two new members of the company's Board of Directors.

As detailed in the Bay Bancorp proxy, the Board recommended to shareholders who approved the election of two new corporate directors.  Pierre Abushacra is a resident of Montgomery County and the founder and CEO of Firehook Bakery, a retail and wholesale bakery with 10 locations in the broader DC market.  Michael Chairamonte is the founder and former President of the Southern Maryland Healthcare System based in Prince George’s County, before its sale to MedStar. 

“These two gentlemen bring our company exceptional entrepreneurial talent and relationships in the Baltimore/Washington Corridor market,” said Joseph J. Thomas, President and CEO of Bay Bancorp.   “This broadens the skill set of the board, expands the geographic footprint of the bank’s franchise and replaces Kevin Byrnes, one of the company’s founding board members who is retiring,” he continued. 

 Mr. Abushacra is a former banker with experience in Private Banking, and in 1992 he founded Firehook Bakery with 2 partners.  Firehook started as a sourdough bread bakery and café in Old Town Alexandria. Firehook currently operates a wholesale bakery and 10 company owned and operated cafes in the Washington DC metro area. In 2012, Firehook launched a packaged goods line of baked crackers distributed nationally to conventional supermarkets and natural food stores. Mr. Abushacra founded Kapa Capital Limited, as his family real estate investment company, to acquire and renovate commercial property in Washington DC. The properties include office, retail and warehouse property in Washington DC and Northern Virginia. He has placed a high value on community involvement and support for entrepreneurship. He is a member of the Young Presidents Organization US Capital chapter and has been a board member in the DuPont Circle and Cleveland Park Business Associations.  He graduated from George Washington University’s School of Business with a major in Finance.

Mr. Chiaramonte has a 30-year career in hospital administration, health system development, and physician practice operations. He serves as President & CEO of Michael J. Chiaramonte & Associates. This consulting and advisory firm offers support to individuals, corporations, and government in matters ranging from healthcare system operations, healthcare policy, wealth management and hospitality services.  Mr. Chiaramonte also serves as President of two other corporations that he owns; the Colony South Hotel & Conference Center and the Rehabilitation Centers of Southern Maryland.  Mr. Chiaramonte is the former President of MedStar Southern Maryland Hospital Center, and the founder of the Southern Maryland Healthcare System.  As hospital President, he was responsible for all strategic and tactical operations of the hospital, including strategy development and financial planning, patient safety and quality, physical plant operations, and medical staff administration. In addition to hospital services, he was responsible for oversight of a 24-bed sub-acute skilled nursing facility, a 35 physician multi-specialty medical practice, medical real estate, and several home care provider corporations.  Mr. Chiaramonte holds a Master of Business Administration in Finance and Investments from The George Washington University and a Bachelor of Arts in Management and Marketing from James Madison University. He also earned a Graduate Certificate in Implementing Strategy from the University of Pennsylvania's Wharton School of Business.

On or before June 2, 2015, the Company will file a Current Report on Form 8-K with the Securities and Exchange Commission to announce the voting results for all proposals on which the stockholders voted at the annual meeting.

 

About Bay Bank

Bay Bank, FSB is headquartered in Lutherville, Maryland and serves the community with a network of 11 branches strategically located throughout the region.  Founded in 2010, the bank has quickly developed a strong reputation for its focus on commercial and small business clients and respective service offerings. The bank has total assets of around $487 million.  The bank’s parent company, Bay Bancorp, Inc., trades on the NASDAQ Capital Market under the ticker symbol “BYBK”. 

Bay Bancorp, Inc. Announces First Quarter 2015 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 $0.34 million or $0.03 per basic and diluted share for the quarter ended March 31, 2015, compared to net income of $0.08 million or $0.01 per basic and diluted share for the quarter ended March 31, 2014.

According to Joseph J. Thomas, Chairman, President and CEO, “Our management team remains committed to executing a differentiated business strategy articulated as the bank built by entrepreneurs for entrepreneurs in the Baltimore/Washington corridor, and executed by having lead relationships with businesses, real estate owners and professionals via an optimal network of sales offices and technology solutions to provide loans, deposits, e-services, mortgage banking and financial advisory services.” “For the quarter ended March 31, 2015, we continued to progress toward our goal of improved profitability resulting in expanded market capitalization. Our goal is to achieve the improvement through capital utilization with a keen eye on expense efficiency. While seeking growth, we preserved a very high quality balance sheet by reporting a 16.2% tier one risk-based capital to asset ratio, a 46.3% Adversely Classified Asset ratio and a 202.7% Commercial Real Estate loans to Capital ratio,” Thomas continued.

Highlights from the First Three Months of 2015

The Bank’s relationship management activities resulted in the growth of new loans in the Bank’s originated portfolio by a 32.8% annualized pace in the first quarter of 2015. Deposit growth, and particularly noninterest-bearing deposit growth, was strong during the first quarter of 2015, as the Bank recorded annualized growth of over 16%. Bay has a very strong capital position and capacity for future growth with total regulatory capital to risk weighted assets of 16.6% as of March 31, 2015. The Bank has a proven record of success in acquisitions and acquired problem asset resolutions and, at March 31, 2015, had

$13.4 million in remaining net purchase discounts on the acquired loan portfolios. Specific highlights are listed below:

  • The return on average assets for the three months ended March 31, 2015 was 0.29%, as compared to 1.09% for the three months ended December 31, 2014 and 0.08% for the same period of 2014. The return on average equity for the three-months ended March 31, 2015 was 2.08% compared to 7.87% for the three-months ended December 31, 2014 and 0.61%, for the first quarter of 2014.

  • Total assets were $487 million at March 31, 2015 compared to $480 million at December 31, 2014 and increased by $57 million from $430 million at March 31, 2014.

  • Total loans were $392 million at March 31, 2015, a decrease of 0.4% from $393 million at December 31, 2014 and an increase of 26% from $312 million at March 31, 2014.

  • Total deposits were $404 million at March 31, 2015, an increase of 4% from $388 million at December 31, 2014 and an increase of 9% from $372 million at March 31, 2014. Non-interest bearing deposits were $101 million, an increase of 10% from $92 million at December 31, 2014.

  • Net interest income for the three- months ended March 31, 2015 totaled $5.3 million compared to $5.2 million for the same period of 2014. 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 $428 million for the quarter ended March 31, 2015, compared to $354 million for the same period of 2014.

  • Net interest margin for the three-months ended March 31, 2015 was 4.73%, compared to 5.40% for the same period of 2014. The margin for the first quarter of 2015 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. For the quarter ended March 31, 2015, the earning asset portfolio yield was influenced by a $.42 million decline in net discount accretion of purchased loan discounts recognized in interest income and a $.35 million decrease in the fair value amortization on deposits when compared to the same period of 2014. The margin declined by 67 basis points during the quarter compared to a year earlier, nearly all related to loan and deposit accretion fluctuations.

  • Nonperforming assets increased to $15.61 million at March 31, 2015, from $14.34 million at December 31, 2014. The first quarter of 2015 increase resulted from the Bank’s delayed resolution of several acquired nonperforming loans from previous

    acquisitions.

  • The provision for loan losses for the three- months ended March 31, 2015 was $275,000, compared to $219,000 for the same period of 2014. The increase for the 2015 period was primarily the result of an increase in loan originations. As a result, the allowance for loan losses was $1.35 million at March 31, 2015, representing 0.35% of total loans, compared to $1.29 million, or 0.33% of total loans, at December 31, 2014. Management expects both the allowance for loan losses and the related provision for loan losses to increase in the future due to the gradual accretion of the discount on the acquired loan portfolios and an increase in new loan originations.

Balance Sheet Review

Total assets were $487 million at March 31, 2015, an increase of $7 million, or 1.48%, when compared to December 31, 2014. Loans held for sale increased by $5.3 million or 73% during the quarter and were offset by a $1.5 million or 0.39% decline in loans held for investment and a $2.5 million or 6.96% decline in investments available for sale.

Total deposits were $404 million at March 31, 2015, an increase of $16 million, or 4.25%, when compared to December 31, 2014. The increase was primarily assisted by a $9.5 million or 10.38% increase in non-interest bearing accounts. The increase in deposits resulted in a $10 million decrease in short-term borrowings over the quarter.

Stockholders’ equity decreased to $65.7 million at March 31, 2015 from $66.6 million at December 31, 2014 and increased from $54.9 million at March 31, 2014. The decrease over the first quarter of 2015 related to an increase in the Bay Bank retirement income plan liability due to changes in actuarial assumptions, offset by related deferred taxes. The book value of Bay’s common stock was $5.96 per share at March 31, 2015, compared to $6.05 per share at December 31, 2014.

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 slightly to $15.61 million at March 31, 2015 from $14.34 million at December 31, 2014. The increase related to a $.8 million reclassification of troubled debt restructurings to impaired loans offset by a decrease in nonaccrual loans. Nonperforming assets represented 3.22% of total assets at March 31, 2015, which was slightly elevated from the 2.99% recorded at December 31, 2014.

At March 31, 2015, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk- based capital ratio was 16.22% at March 31, 2015 as compared to 16.31% at December 31, 2014 and 15.23% at March 31, 2014. Liquidity remained strong due to managed cash and cash equivalents, borrowing lines with the FHLB of Atlanta, the Federal Reserve and correspondent banks, and the size and composition of the investment portfolio.

Review of Financial Results

Net income for the three-months ended March 31, 2015 was $0.34 million compared to net income of $0.08 million for the same period of 2014. Individual categories reflect variability between years.

Net interest income increased by $0.2 million for the quarter ended March 31, 2015 when compared to the same period of 2014. The increase was supported by a $69 million growth in average interest-earning assets largely due to the Slavie Bank Acquisition (“the Slavie Acquisition”) in May 30, 2014, offset by a $.42 million decline in net discount accretion of purchased loan discounts recognized in interest income and a $.35 million decrease in the fair value amortization on deposits. Excluding the impact of the fair value accounting, net interest income increased by $.93 million from the quarter ended March 31, 2014. The net interest margin for the first quarter of 2015 decreased to 4.73% from 5.40% for the first quarter of 2014 due to the decline in discount accretion on loans and deposits. As of March 31, 2015, the remaining net loan discounts on the Bank’s loan portfolio, including loans acquired in “the Slavie Acquisition”, totaled $13.4 million.

Noninterest income for the three -months ended March 31, 2015 was $1.2 million compared to $1.3 million for the same quarter of 2014. This decrease was primarily the result of $.06 million decrease in electronic banking fees and a $.09 million decrease in other income partially offset by a $.08 million increase in mortgage banking fees and gains. Expectations are for increased mortgage fees and gains to expand in 2015.

Noninterest expense reduction is a key focus for 2015 net income improvement. For the three -months ended March 31, 2015 noninterest expense was $5.7 million compared to $6.3 million for the first quarter of 2014. The primary contributors

to the decrease when compared to the first quarter of 2014 decreases of $.45 million in salary and employee benefits, $.14 million in foreclosed property expenses and a decrease of $.11 million in Merger-related expenses.

In the fourth quarter of 2014, Bay filed amended 2011 and 2012 Federal and Maryland tax returns for the former Carrollton Bancorp, resulting in the accrual of $.6 million in tax refunds. Combined with a reversal of a deferred tax valuation allowance, the Bank recognized $1.2 million in favorable tax benefits in the fourth quarter of 2014.

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, Chairman, 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

410-427-3726

Bay Bancorp, Inc.

Consolidated Balance Sheets

March 31,

March 31,

2015

December 31,

2014

December 31,

(unaudited)

2014

(unaudited)

2013

ASSETS

Cash and due from banks

$

6,335,049

$

7,062,943

$

7,706,885

$

7,126,720

Interest bearing deposits with banks and federal funds sold

17,250,151

9,794,382

43,371,284

16,146,340

Total Cash and Cash Equivalents

23,585,200

16,857,325

51,078,169

23,273,060

Time deposits with banks

-

34,849

-

-

Investment securities available for sale, at fair value

32,890,719

35,349,889

36,040,327

36,586,669

Investment securities held to maturity, at amortized cost

1,296,793

1,315,718

-

-

Restricted equity securities, at cost

1,291,095

1,862,995

791,195

1,009,695

Loans held for sale

12,494,787

7,233,306

4,983,638

12,836,234

Loans, net of deferred fees and costs

391,537,271

393,051,192

311,969,640

320,680,332

Less: Allowance for loan losses

(1,353,849)

(1,294,976)

(941,715)

(851,000)

Loans, net

390,183,422

391,756,216

311,027,925

319,829,332

Real estate acquired through foreclosure

1,501,135

1,480,472

1,529,334

1,290,120

Premises and equipment, net

5,398,901

5,553,957

5,771,667

5,998,532

Bank owned life insurance

5,516,549

5,485,377

5,388,898

5,356,575

Core deposit intangible

3,223,737

3,478,282

3,719,384

3,993,679

Deferred tax assets, net

4,117,563

3,214,100

5,364,441

6,564,121

Accrued interest receivable

1,300,297

1,306,111

1,045,383

1,186,748

Accrued taxes receivable

2,819,468

3,122,885

539,781

-

Defined benefit pension asset

-

680,668

-

-

Other assets

1,410,994

1,210,835

2,312,855

1,164,538

Total Assets

$

487,030,660

$

479,942,985

$

429,592,997

$

419,089,303

LIABILITIES

Noninterest-bearing deposits

$

101,629,926

$

91,676,534

$

95,090,887

$

90,077,139

Interest-bearing deposits

302,674,673

296,153,598

276,846,536

270,916,332

Total Deposits

404,304,599

387,830,132

371,937,423

360,993,471

Short-term borrowings

12,150,000

22,150,000

-

-

Defined benefit pension liability

1,731,102

-

131

42,492

Accrued expenses and other liabilities

3,194,319

3,319,567

2,707,149

3,499,072

Total Liabilities

421,380,020

413,299,699

374,644,703

364,535,035

STOCKHOLDERS’ EQUITY

Common stock - par value $1.00, authorized 20,000,000 shares, issued and outstanding 11,014517, 11,014,517, 9,379,753 and

9,379,753 shares as of March 31, 2015, December 31, 2014,

March 31, 2014 and December 31, 2013, respectively.

11,014,517

11,014,517

9,379,753

9,379,753

Additional paid-in capital

43,372,280

43,228,950

36,497,449

36,357,001

Retained earnings

11,079,558

10,736,305

7,785,332

7,703,597

Accumulated other comprehensive income

184,285

1,663,514

1,285,760

1,113,917

Total Stockholders' Equity

65,650,640

66,643,286

54,948,294

54,554,268

Total Liabilities and Stockholders' Equity

$

487,030,660

$

479,942,985

$

429,592,997

$

419,089,303

Bay Bancorp, Inc.

Consolidated Statements of Income (Loss)

(Unaudited)

Three Months Ended March 31,

2015

2014

Interest income:

Interest and fees on loans

$

5,507,767

$

5,140,386

Interest on loans held for sale

61,511

85,801

Interest and dividends on securities

257,436

247,349

Interest on deposits with banks and federal funds sold

10,612

13,368

Total Interest Income

5,837,326

5,486,904

Interest expense:

Interest on deposits

484,401

309,059

Interest on short-term borrowings

13,776

-

Total Interest Expense

498,177

309,059

Net Interest Income

5,339,149

5,177,845

Provision for loan losses

275,109

219,165

Net interest income after provision for loan losses

5,064,040

4,958,680

Noninterest income:

Electronic banking fees

576,190

639,994

Mortgage banking fees and gains

393,642

312,675

(Loss) gain on sale of real estate acquired through foreclosure

(628)

1,829

Service charges on deposit accounts

79,017

92,513

Gain on securities sold

77,490

-

Other income

111,509

206,361

Total Noninterest Income

1,237,220

1,253,372

Noninterest Expenses:

Salary and employee benefits

2,919,119

3,365,432

Occupancy expenses

719,832

749,279

Furniture and equipment expenses

275,401

312,129

Legal, accounting and other professional fees

368,028

394,120

Data processing and item processing services

342,673

275,150

FDIC insurance costs

106,311

67,709

Advertising and marketing related expenses

28,749

39,405

Foreclosed property expenses

60,363

199,363

Loan collection costs

87,510

47,179

Core deposit intangible amortization

254,546

274,295

Merger and acquisition related expenses

-

111,323

Other expenses

537,352

504,289

Total Noninterest Expenses

5,699,884

6,339,673

Income (loss) before income taxes

601,376

(127,621)

Income tax (benefit) expense

258,123

(209,356)

Net income

$

343,253

$

81,735

Basic net (loss) income per common share

$

0.03

$

0.01

Diluted net (loss) income per common share

$

0.03

$

0.01

Bay Bancorp, Inc.

Consolidated Statements of Stockholders' Equity

For the Three Months Ended March 31, 2015 and 2014

(Unaudited)

Accumulated

Additional

Other

Common

Paid-in

Retained

Comprehensive

Stock

Capital

Earnings

Income (loss)

Total

Balance December 31, 2013

$

9,379,753

$

36,357,001

$

7,703,597

$

1,113,917

$

54,554,268

Net income

-

-

81,735

-

81,735

Other comprehensive income

-

171,843

171,843

Stock-based compensation

-

140,448

-

-

140,448

Balance March 31, 2014

$

9,379,753

$

36,497,449

$

7,785,332

$

1,285,760

$

54,948,294

Accumulated

Additional

Other

Common

Paid-in

Retained

Comprehensive

Stock

Capital

Earnings

Income (loss)

Total

Balance December 31, 2014

$

11,014,517

$

43,228,950

$

10,736,305

$

1,663,514

$

66,643,286

Net income

-

-

343,253

-

343,253

Other comprehensive income

-

(1,479,229)

(1,479,229)

Stock-based compensation

-

143,330

-

-

143,330

Balance March 31, 2015

$

11,014,517

$

43,372,280

$

11,079,558

$

184,285

$

65,650,640

Bay Bank, FSB Capital Ratios (Unaudited)

To Be Well Capitalized Under

To Be Considered Prompt Corrective

Actual Adequately Capitalized Action Provisions

Amount

Ratio

Amount

Ratio

Amount

Ratio

As of March 31, 2015:

Total Risk-Based Capital Ratio

$ 64,172

16.57 %

$ 30,982

8.00 %

$ 38,728

10.00 %

Tier I Risk-Based Capital Ratio

$ 62,818

16.22 %

$ 15,491

4.00 %

$ 23,237

6.00 %

Leverage Ratio

As of December 31, 2014:

$ 62,818

13.01 %

$ 19,314

4.00 %

$ 24,142

5.00 %

Total Risk-Based Capital Ratio

$ 62,743

16.66 %

$ 30,129

8.00 %

$ 37,661

10.00 %

Tier I Risk-Based Capital Ratio

$ 61,448

16.31 %

$ 15,070

4.00 %

$ 22,605

6.00 %

Leverage Ratio

$ 61,448

12.94 %

$ 18,995

4.00 %

$ 23,743

5.00 %

As of September 30, 2014:

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 %

As of June 30, 2014:

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 %

Leverage Ratio

$ 59,105

12.27 %

$ 19,263

4.00 %

$ 24,079

5.00 %

As of March 31, 2014:

Total Risk-Based Capital Ratio

$ 49,354

15.53 %

$ 25,423

8.00 %

$ 31,778

10.00 %

Tier I Risk-Based Capital Ratio

$ 48,412

15.23 %

$ 12,711

4.00 %

$ 19,067

6.00 %

Leverage Ratio

$ 48,412

11.44 %

$ 16,927

4.00 %

$ 21,159

5.00 %

As of December 31, 2013:

Total Risk-Based Capital Ratio

$ 47,815

14.68 %

$ 26,079

8.00 %

$ 32,562

10.00 %

Tier I Risk-Based Capital Ratio

$ 46,964

14.42 %

$ 13,025

4.00 %

$ 19,537

6.00 %

Leverage Ratio

$ 46,964

11.41 %

$ 16,461

4.00 %

$ 20,577

5.00 %

Bay Bancorp, Inc.

Selected Financial Data

(Unaudited)

Three Months Ended

Twelve Months Ended

March 31, 2015

March 31, 2014

December 31,

2014

December 31, 2014

December 31,

2013

Financial Data:

Assets

$

487,030,660 $

429,592,997

$

479,942,985

$

479,942,985

$

419,089,303

Investment securites

34,187,512

36,040,327

36,665,607

36,665,607

36,586,669

Loans (net of deferred fees and costs)

391,537,271

311,969,640

393,051,192

393,051,192

320,680,332

Allowance for loan losses

1,353,849

941,715

1,294,976

1,294,976

851,000

Deposits

404,304,599

371,937,423

387,830,132

387,830,132

360,933,471

Borrowings

12,150,000

-

22,150,000

22,150,000

-

Stockholders’ equity

65,650,640

54,948,294

66,643,286

66,643,286

54,554,268

Net income (loss)

343,253

81,735

1,310,327

3,032,708

3,241,134

Average Balances:

Assets

485,027,802

417,018,727

476,700,436

459,782,360

358,397,210

Investment securities

35,318,852

36,434,000

35,827,735

36,561,271

24,427,877

Loans (net of deferred fees and costs)

392,780,700

317,227,783

392,275,709

364,511,290

259,698,504

Borrowings

16,155,556

-

18,500,000

9,269,231

92,328

Deposits

399,249,747

359,929,587

391,419,769

385,700,292

306,040,717

Stockholders' equity

66,785,682

54,751,281

66,079,174

61,530,969

48,537,003

Performance Ratios:

Return on average assets

0.29%

0.08%

1.09%

0.66%

0.90%

Return on average equity

2.08%

0.61%

7.87%

4.93%

6.68%

Yield on average interest-earning assets

5.17%

5.72%

5.90%

5.60%

5.71%

Rate on average interest-bearing liabilities

0.63%

0.46%

0.43%

0.42%

0.55%

Net interest spread

4.54%

5.26%

5.47%

5.18%

5.16%

Net interest margin

4.73%

5.40%

5.59%

5.31%

5.33%

Book value per share

$

5.96

$

4.99

$

6.05

$

6.05

$

5.83

Basic net income per share

0.03

0.01

0.12

0.29

0.39

Diluted net income per share

0.03

0.01

0.12

0.29

0.39

March 31, 2015

March 31, 2014

December 31,

2014

Asset Quality Ratios:

Allowance for loan losses to loans

0.35%

0.30%

0.33%

Nonperforming loans to total loans

3.59%

3.34%

3.27%

Nonperforming assets to total assets

3.22%

2.69%

2.99%

Net charge-offs annualized to avg. loans

0.06%

0.17%

0.06%

Capital Ratios (Bay Bank, FSB):

Total risk-based capital ratio

16.57%

15.53%

16.66%

Tier 1 risk-based capital ratio

16.22%

15.23%

16.31%

Leverage ratio

13.01%

11.44%

12.94%