(Source: PRNewswire-FirstCall)
BALTIMORE, May 7 /PRNewswire-FirstCall/ -- Bay National Corporation (the "Company") , the bank holding company for Bay National Bank, today reported a first quarter net loss of $884 thousand or ($0.41) per diluted share, as compared to a net loss of $1.49 million or ($0.69) per diluted share reported for the quarter ending March 31, 2008. The current quarter results include a provision for credit loss of $1.05 million and net charge-offs totaling $508 thousand, the majority of which were divided among commercial, one to four family residential construction loans and one to four family residential mortgages.
Hugh W. Mohler, Chairman and CEO, stated, "The first quarter results for 2009 when compared to the first quarter results of one year ago, reflect a significant reduction in noninterest expenses that were more than offset by the decrease in interest income due to the extremely low interest rate environment in which we are operating. We strengthened our allowance for credit losses primarily as a result of the increased economic difficulties that many businesses and households are experiencing. After recording a provision for credit losses of $1.05 million and $508 thousand in net charge-offs for the quarter, our allowance for credit losses increased from $5.7 million at December 31, 2008 to $6.2 million at March 31, 2009.
The economy continues to suffer the effects of further declines in the value of real estate, which represents a substantial portion of the collateral for non-performing loans. Management is working vigorously to sell properties, increase collateral for non-performing loans, move collateral into real estate owned, and taking appropriate charge-offs to reflect the gap between collateral values and loan balances."
Mr. Mohler continued, "As of March 31, 2009, total assets were $297.2 million, an increase of 11.3% from March 31, 2008. Total deposits were $274.0 million and net loans were $241.8 million, increases of 18.5% and 1.6%, respectively, over the March 31, 2008 totals.
Our continued focus on conserving capital and managing interest rate risk resulted in maintaining capital levels defined as 'adequately capitalized,' by regulatory capital measures. We will diligently monitor and manage our capital in order to preserve and enhance long-term shareholder value."
About Bay National Bank
Bay National Bank was founded in 2000 in response to banking industry consolidation and the distinct void these mergers created in servicing, in particular, small and mid-size businesses and their owners, business professionals, and high net worth individuals. We believe that Bay National Bank now occupies a unique niche in the banking industry.
