Item 2.02 Results of Operations and Financial Condition.

On July 24, 2008, Bay National Corporation issued a press release announcing its earnings for the quarter ended June 30, 2008.

Among other figures, the press release reports that core deposits totaled $191.6 million at June 30, 2008. Management categorizes core deposits as commercial sweep balances and all deposits other than national market certificates of deposit, deposits purchased through the certificate of deposit account registry service (CDARS) program and all but $3.0 million in deposits from one account with highly variable balances. Although commercial paper sweep balances are reflected as short-term borrowings on the Balance Sheet, management considers them to be core deposits as they represent customer relationships with commercial enterprises. Core deposits are closely monitored by management because they consider them not only a relatively stable source of funding but also reflective of the growth of commercial and consumer depository relationships.

The press release is furnished as Exhibit 99.1 hereto.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press Release dated July 24, 2008.

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