Baylake Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, total interest income was $11,828,000 against $13,947,000 a year ago. Net interest income before provision for loan losses was $7,418,000 against $7,319,000 a year ago. Net Interest income after provision for loan losses was $6,218,000 against $4,119,000 a year ago. Income before income taxes was $879,000 against loss before income taxes of $2,491,000 a year ago. Net income was $835,000 or $0.11 per basic and diluted share against net loss of $1,174,000 or $0.15 per basic and diluted share a year ago. The improved operating results for the third quarter of 2009 were impacted by a $2.0 million reduction in the provision for loan losses from $3.2 million for the quarter ended September 30, 2008 to $1.2 million for the quarter ended September 30, 2009. As of September 30, 2009, book value per share was $9.47 against $9.54 a year ago. Return on average total assets was 0.31% against negative return on average total assets of 0.43% a year ago. Return on average total shareholders' equity was 4.61% against negative return on average total shareholders' equity of 6.37% a year ago. For the nine months, total interest income was $35,922,000 against $43,855,000 a year ago. Net interest income before provision for loan losses was $21,622,000 against $21,708,000 a year ago. Net Interest income after provision for loan losses was $18,022,000 against $17,347,000 a year ago. Income before income taxes was $4,570,000 against loss before income taxes of $1,605,000 a year ago. Net income was $3,651,000 or $0.46 per basic and diluted share against net loss of $85,000 or $0.01 per basic and diluted share a year ago. As of September 30, 2009, return on average total assets was $0.46% against negative return on average total assets of 0.01% a year ago. Return on average total shareholders' equity was 6.87% against negative return on average total shareholders' equity of 0.14% a year ago.

Baylake Corp. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported net income of $0.5 million, or $0.07 basic and diluted earnings per share as compared to net income of $0.1 million or $0.01 basic and diluted earnings per share for the second quarter of 2008, an increase of $0.4 million in the quarter. Return on assets (ROA) and return on equity (ROE) for the quarter ended June 30, 2009 increased to 0.21% and 3.06%, respectively, compared to 0.04% and 0.47%, respectively, for the same period in 2008. Total interest income was $11.6 million compared to $14.3 million for the same period last year. Net interest income after provision for loan losses was $5.6 million compared to $6.3 million for the same period last year. Income before income taxes was $0.3 million compared to loss before income taxes of $0.5 million for the same period last year. The improved operating results for the second quarter ended June 30, 2009 were impacted by a $1.2 million (13.3%) reduction in non-interest expenses from $9.0 million for the quarter ended June 30, 2008 to $7.8 million for the quarter ending June 30, 2009. The impact of this expense reduction was partially offset by a $0.4 million reduction in net interest income from $7.2 million to $6.8 million for the quarters ended June 30, 2008 and 2009, respectively. The comparative results for the second quarter ended June 30, 2009 included net reductions of $0.3 million in employee salaries and benefits, and $1.1 million in the operation of foreclosed properties, offset by an increase of $0.3 million in other operating expenses. For the six months, the company reported total interest income of $24.1 million compared to $30.0 million for the same period last year. Net interest income before provision for loan losses was $14.2 million compared to $14.4 million for the same period last year. Net Interest income after provision for loan losses was $11.8 million compared to $13.2 million for the same period last year. Income before income taxes was $3.7 million compared to $0.9 million for the same period last year. Net income was $2.8 million or $0.36 basic and diluted per share compared to $1.3 million or $0.16 basic and diluted per share for the same period last year. Book value per share as of June 30, 2009 was $8.90 per share compared to $9.95 per share as of June 30, 2008. Return on average total assets was $0.54% compared to $0.24% for the same period last year. Return on average total shareholders' equity was 8.03% compared to 3.10% for the same period last year. Net charge-offs for the quarter ended June 30, 2009 were $2.9 million, or 1.61% on an annualized basis of total average loans compared to $0.5 million, or 0.30% on an annualized basis of total average loans for the quarter ended June 30, 2008.

Baylake Corp. announced that Thomas L. Herlache will retire as Chairman of the Board on June 30, 2009, upon completion of his two-year agreement with the company to serve as its non-executive Chairman. Mr. Herlache will continue to serve as a director of Baylake Corp. The company has also announced that Robert W. Agnew and Richard A. Braun will serve as Co-Chairmen to replace Mr. Herlache. Agnew, who is President and CEO of Peterson Industries, L.L.C., was elected to the Baylake Corp. Board of Directors in 2001. Braun has served as Vice-Chairman of the Board of Directors of Baylake Corp. since the merger of Baylake Corp. and Kewaunee County Banc-Shares Inc. in 1994.