Item
1. Financial
Statements
BAY
NATIONAL CORPORATION
CONSOLIDATED
BALANCE SHEETS
As
of
September 30, 2007 and December 31, 2006
|
September
30,
|
December
31,
|
|||||||
|
ASSETS
|
(Unaudited)
|
|||||||
|
Cash
and due from
banks
|
$ |
15,912,972
|
$ |
2,348,304
|
||||
|
Federal
funds sold and other
overnight investments
|
15,295,649
|
31,549,900
|
||||||
|
Investment
securities available
for sale (AFS) - at fair value
|
399,415
|
697,526
|
||||||
|
Other equity securities
|
1,065,800
|
1,117,100
|
||||||
|
Loans
held for sale
|
5,181,748
|
1,444,303
|
||||||
|
Loans,
net of unearned
fees
|
220,760,600
|
216,571,375
|
||||||
|
Total
loans
|
225,942,348
|
218,015,678
|
||||||
|
Less:
Allowance for credit
losses
|
(3,209,011 | ) | (3,175,000 | ) | ||||
|
Loans,
net
|
222,733,337
|
214,840,678
|
||||||
|
Other real estate owned
|
1,048,012
|
-
|
||||||
|
Premises
and equipment,
net
|
1,128,633
|
1,100,220
|
||||||
|
Accrued
interest receivable and
other assets
|
3,290,860
|
3,151,119
|
||||||
|
Total
Assets
|
$ |
260,874,678
|
$ |
254,804,847
|
||||
|
LIABILITIES
|
||||||||
|
Non-interest-bearing
deposits
|
$ |
29,254,683
|
$ |
34,808,624
|
||||
|
Interest-bearing
deposits
|
195,814,181
|
189,340,328
|
||||||
|
Total
deposits
|
225,068,864
|
224,148,952
|
||||||
|
Short-term
borrowings
|
6,002,903
|
1,545,000
|
||||||
|
Subordinated
debt
|
8,000,000
|
8,000,000
|
||||||
|
Accrued
expenses and other liabilities
|
1,351,247
|
2,268,402
|
||||||
|
Total
Liabilities
|
240,423,014
|
235,962,354
|
||||||
|
STOCKHOLDERS'
EQUITY
|
||||||||
|
Common
stock - $.01 par value,
authorized:
|
||||||||
|
9,000,000
shares authorized,
2,137,633 and 1,935,369 issued
|
||||||||
|
and
outstanding as of September
30, 2007 and December 31, 2006, respectively
|
21,376
|
19,354
|
||||||
|
Additional
paid in
capital
|
17,755,073
|
17,649,678
|
||||||
|
Retained
earnings
|
2,675,215
|
1,173,461
|
||||||
|
Total
Stockholders'
Equity
|
20,451,664
|
18,842,493
|
||||||
|
Total
Liabilities and
Stockholders' Equity
|
$ |
260,874,678
|
$ |
254,804,847
|
||||
See
accompanying notes to consolidated financial statements.
BAY
NATIONAL CORPORATION
CONSOLIDATED
STATEMENTS OF OPERATIONS
For
the
three and nine-month periods ended September 30, 2007 and 2006
|
Three
Months Ended
September
30
|
Nine
Months Ended
September
30
|
|||||||||||||||
|
|
|
|
|
|||||||||||||
|
INTEREST
INCOME:
|
||||||||||||||||
|
Interest
and fees on
loans
|
$ |
4,941,695
|
$ |
5,090,710
|
$ |
15,152,372
|
$ |
14,052,984
|
||||||||
|
Interest
on federal funds sold and other overnight
investments
|
184,057
|
108,350
|
611,271
|
258,813
|
||||||||||||
|
Taxable
interest and dividends
on investment
|
||||||||||||||||
|
securities
|
12,894
|
9,990
|
62,540
|
71,120
|
||||||||||||
|
Total
interest
income
|
5,138,646
|
5,209,050
|
15,826,183
|
14,382,917
|
||||||||||||
|
INTEREST
EXPENSE:
|
||||||||||||||||
|
Interest
on deposits
|
1,978,220
|
1,935,216
|
6,108,747
|
5,075,211
|
||||||||||||
|
Interest
on short-term borrowings
|
88,671
|
16,298
|
149,375
|
69,234
|
||||||||||||
|
Interest
on subordinated debt
|
151,764
|
151,742
|
450,327
|
451,819
|
||||||||||||
|
Total
interest expense
|
2,218,655
|
2,103,256
|
6,708,449
|
5,596,264
|
||||||||||||
|
Net
interest income
|
2,919,991
|
|||||||||||||||