Bay Banks of Virginia, Inc. Reports September 30, 2017 Quarterly Operating Results

RICHMOND, Va., Oct. 23, 2017 /PRNewswire/ -- Bay Banks of Virginia, Inc. (OTCQB: BAYK) (the "Company"), the parent holding company of Virginia Commonwealth Bank (the "Bank"), reports its unaudited third quarter 2017 results.

The Company completed its merger with Virginia BanCorp, Inc. on April 1, 2017 and the combined bank began operating as Virginia Commonwealth Bank. For the third quarter of 2017, the Company reported net earnings of $742 thousand (net of merger related expenses) or $0.07 per diluted share. "Since the merger was finalized, the integration of Virginia Commonwealth Bank and Bank of Lancaster is progressing on schedule with operational systems conversion to occur mid-November. Our new headquarters in Richmond is complete with our market teams continuing to build strong customer relationships from both a lending and deposit perspective. The value that we bring to the total customer relationship makes the Company one of the premier banking institutions in Central and Eastern Virginia. At the end of August, we announced the completion of a $35 million capital raise offered to certain existing shareholders, institutional investors and other accredited investors raising $32.9 million in common equity net of issuance costs. The Company sold 3,783,784 shares of our common stock at an offering price of $9.25 per share. Our growing franchise is well positioned and the new capital will allow us to continue to pursue growth opportunities in the communities we serve as we strive to create value for our shareholders. Moreover, the addition of premier institutional bank investors to our shareholder base, together with the increase in our market capitalization, should help to promote liquidity for our common shares. This continues to support our strategic focus on the total customer relationship, providing not only the opportunity to have consistent, measured asset growth, but also a source of low cost funding for that growth." said Randal R. Greene, President and Chief Executive Officer. He continued, "Our total assets are now $960 million and pre-tax/pre-provision operating earnings are strong. We have declared our second dividend in the amount of $0.04 per share, with profitability supporting a diverse, well-capitalized balance sheet poised for growth."

HIGHLIGHTS

Consistent Operating Earnings Performance - During the third quarter, income before taxes grew by $204 thousand, driven by a $358 thousand increase in net interest income, a $73 thousand decrease in non-interest income, a $426 thousand decrease in non-interest expense, and a $507 increase in provision for loan losses due primarily to organic loan portfolio growth. As a result, return on average assets ("ROA") for the third quarter increased to 0.32% from 0.26% for the quarter ended June 30, and return on average equity increased to 3.10% from 2.65%. Excluding the effect of merger expenses, pre-tax/pre-provision operating earnings amounted to $2.240 million for the third quarter, as compared to $2.054 million last quarter.

Consistent and Measured Growth - Total assets as of September 30, 2017 were $959.9 million, increasing from $867.4 million as of June 30, 2017, primarily due to ongoing growth in our deposit base of $46.4 million since the beginning of the quarter combined with a successful private placement of common equity raising $32.9 million net of issuance costs. This funded loan growth of $38.5 million, accompanied by an increased liquidity position of cash and securities growing by $51.7 million. In September, loans previously held for sale amounting to $55.6 million at June 30 were reclassified back into the held to maturity portfolio, with the net loan portfolio standing at $739.9 million at September 30 quarter end.

Diversified Loan Base Supporting Net Interest Income - Benefiting from an effective mix of residential, non-residential, commercial and consumer loans, net interest margin was 3.62% for the third quarter compared to 3.80% last quarter, the variance owing primarily to tactical promotional deposit pricing and an increased liquidity position. Asset quality remains good. For the third quarter of 2017, net interest income was $7.8 million compared to $7.4 million last quarter. For the nine months ended September 30, 2017, net interest income was $19.1 million compared to $10.6 million for the nine months ended September 30, 2016.

Focus on Fee Income - Noninterest income, excluding the sale of investment securities, was $1.07 million and $3.07 million respectively for the quarter and year to date period ending September 30, 2017, both comparable to last year. During the quarter, VCB Financial Group, formerly Bay Trust Company, continued to execute its strategy of growing wealth management and trust services within the Company's market footprint.

Operating Efficiency - For the nine months ended September 30, 2017, non-interest expense was $18.8 million compared to $10.9 million for the nine months ended September 30, 2016, driven by merger-related costs as well as compensation expense related to severance costs and new hires associated with the merger and growth into the Richmond market. Non-interest expense for the third quarter of 2017 was $6.8 million compared to $7.2 million last quarter as merger expense decreased. As a result, the Company's efficiency ratio was 76.4% for the quarter as compared to 83.9% last quarter. Excluding merger-related expenses, the Company's efficiency ratio for the third quarter of 2017 was 74.9%.

Income tax expense was $273 thousand and $326 thousand for the third quarter of 2017 and 2016, respectively. For the first nine months of 2017 and 2016, income tax expense was $406 thousand and $669 thousand, respectively. The effective tax rate for the third quarter of 2017 and 2016 was 26.9% and 27.6%, respectively, and for the nine months ended September 30, 2017 and 2016, was 26.6% and 25.4%, respectively.

BALANCE SHEET AND CAPITAL STRENGTH

As of September 30, 2017, net loans totaled $739.7 million, of which $212.6 million were acquired in the merger. As of December 31, 2016 and September 30, 2016, net loans totaled $381.5 million and $364.8 million, respectively. Investment securities and interest-bearing cash liquidity increased by $51.7 million during the quarter to $147.1 million at September 30, 2017, and from $65.9 million at year-end 2016, with $34.4 million acquired in the merger on April 1, 2017.

Deposits totaled $735.4 million at September 30, 2017, increasing $353.7 million, or 92.7%, from $381.7 million at December 31, 2016, of which $267.9 million of deposits were acquired in the merger.

Stockholders' equity increased by $76.1 million to $117.8 million at September 30, 2017, from $41.7 million at December 31, 2016, of which $42.3 million related to the merger and $32.9 million raised in our common stock private placement conducted in August. The Company's GAAP capital ratio was 12.27% as of September 30, 2017 as compared to 8.96% as of September 30, 2016. The Company continues to be a "well capitalized" institution as defined by the banking regulations. On September 26, 2017, the Board of Directors declared a quarterly cash dividend to shareholders of $0.04 per common share, payable October 24, 2017, to shareholders of record on October 11, 2017.

The tangible equity to assets ratio was 11.22% at September 30, 2017, compared to 8.19% at December 31, 2016. The tangible book value per common share was $8.16 at September 30, 2017, as compared to $8.35 at December 31, 2016.

ASSET QUALITY

Non-performing assets ("NPAs") were $10.0 million at September 30, 2017, or 1.04% of total assets compared to $7.8 million, or 1.67% of total assets, at December 31, 2016. NPAs at September 30, 2017 included $5.16 million of other real estate owned (including $3.1 million acquired in the merger), up from $2.5 million at December 31, 2016. Nonaccrual loans were $4.8 million at September 30, 2017 (excludes purchased credit-impaired loans), or 0.64% of total loans, compared to $5.3 million, or 1.38%, at December 31, 2016.

The provision for credit losses in the first nine months of 2017 was $1.8 million versus $407 thousand for the same period in 2016, the increase being driven by post-merger loan portfolio growth. The allowance for loan losses represented 0.66% of total loans (including those acquired in the merger) at September 30, 2017, compared to 1.00% at December 31, 2016.

About Bay Banks of Virginia

Bay Banks of Virginia, Inc. is the holding company for Virginia Commonwealth Bank and VCB Financial Group. Founded in the 1930's, Virginia Commonwealth Bank and the former Bank of Lancaster are now combined and headquartered in Richmond, Virginia. With eighteen banking offices located throughout the Richmond market area, the Northern Neck region, the Tri-Cities area of Petersburg, Hopewell and Colonial Heights, Middlesex County and Suffolk, the Bank serves businesses, professionals and consumers with a variety of financial services, including retail and commercial banking, investment services, and mortgage banking. VCB Financial Group provides management services for personal and corporate trusts, wealth management services, estate planning, estate settlement and trust administration.

For further information, contact Randal R. Greene, President and Chief Executive Officer, at 800-435-1140 or inquiries@baybanks.com.

FORWARD-LOOKING STATEMENTS

This press release contains statements concerning the Company's expectations, plans, objectives, future financial performance and other statements that are not historical facts. These statements may constitute "forward-looking statements" as defined by federal securities laws. These statements may address issues that involve estimates and assumptions made by management, risks and uncertainties, and actual results could differ materially from historical results or those anticipated by such statements. Factors that could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to, the ability to successfully implement integration plans associated with the Virginia BanCorp merger, which integration may be more difficult, time-consuming or costly than expected, the ability to achieve the cost savings and synergies contemplated by the merger within the expected timeframe, disruptions to customer and employee relationships and business operations caused by the merger, changes in interest rates, general economic conditions, the legislative/regulatory climate, monetary and fiscal policies of the U. S. Government, including policies of the U. S. Treasury and Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company's market area, acquisitions and dispositions, and accounting principles, polices and guidelines. These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and readers are cautioned not to place undue reliance on such statements, which speak only as of the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

NON-GAAP FINANCIAL MEASURES

Important disclosures about and reconciliations of non-GAAP measures to the corresponding GAAP measures, are provided below and attached to this press release.

This press release and the accompanying Supplemental Financial Data contain financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP") in the United States. Management uses these "non-GAAP" measures in their analysis of the Company's performance. Management believes that these non-GAAP financial measures provide a greater understanding to our shareholders of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant gains and charges. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of non-GAAP disclosures are provided within the accompanying tables to this press release.

BAY BANKS OF VIRGINIA, INC.

Supplemental Financial Data (Unaudited)





CONSOLIDATED BALANCE SHEETS





September 30, 2017

December 31, 2016 (1)

September 30, 2016

(Dollars in thousands)

(unaudited)


(unaudited)

ASSETS




   Cash and due from banks

$                    5,806

$                        4,851

$                    5,280

   Interest-bearing deposits

46,060

7,945

6,343

   Certificates of deposit

3,224

4,216

4,464

   Federal funds sold

23,357

1,906

460

   Securities available-for-sale, at fair value

71,893

51,173

52,563

   Restricted securities

6,000

2,649

2,209

   Loans receivable, net of allowance for loan losses




     of $4,920, $3,863 and $3,741, respectively

739,708

381,537

364,822

   Loans held for sale

162

276

481

   Premises and equipment, net

17,472

10,844

11,021

   Accrued interest receivable

2,905

1,372

1,241

   Other real estate owned, net

5,159

2,494

2,764

   Bank owned life insurance

18,641

9,869

9,792

   Goodwill

8,968

2,808

2,808

   Mortgage servicing rights

978

671

590

   Core deposit intangible

3,209

-

-

   Other assets

6,394

4,099

3,436

Total assets

$                959,936

$                    486,710

$                468,274





LIABILITIES




   Noninterest-bearing deposits

$                  99,531

$                      74,799

$                  74,615

   Savings and interest-bearing demand deposits

297,150

178,869

175,448

   Time deposits

338,732

128,050

127,912

     Total deposits

735,413

381,718

377,975





   Securities sold under repurchase agreements

17,091

18,310

12,984

   Federal Home Loan Bank advances

75,000

35,000

25,000

   Subordinated debt, net of issuance costs

6,873

6,860

6,856

   Other liabilities

7,771

3,117

3,511

     Total liabilities

842,148

445,005

426,326





SHAREHOLDERS' EQUITY 




   Common stock ($5 par value; authorized - 30,000,000 shares;




     outstanding - 13,193,983, 4,774,856 and 4,774,856 shares, respectively)

65,970

23,874

23,874

   Additional paid-in capital

37,099

2,872

2,828

   Unearned employee stock ownership plan shares

(817)

-

-

   Retained earnings

16,412

16,194

15,623

   Accumulated other comprehensive loss, net

(876)

(1,235)

(377)

     Total shareholders' equity

117,788

41,705

41,948





Total liabilities and shareholders' equity

$                959,936

$                    486,710

$                468,274


(1) Derived from the audited December 31, 2016 Consolidated Financial Statements

BAY BANKS OF VIRGINIA, INC.

Supplemental Financial Data (Unaudited) - Con't









CONSOLIDATED STATEMENTS OF INCOME




(unaudited)

















For the three months ended


For the nine months ended

(Dollars in thousands except per share amounts)

September 30, 2017


September 30, 2016


September 30, 2017


September 30, 2016

INTEREST INCOME








Loans, including fees

$                   8,874


$                   4,153


$                 21,588


$                 12,140

Securities:








  Taxable

329


233


946


651

  Tax-exempt

116


123


344


394

Federal Funds Sold

43


1


77


2

Interest-bearing deposit accounts

116


25


176


52

Certificates of deposit

18


20


55


62

Total interest income

9,496


4,555


23,186


13,301









INTEREST EXPENSE








Deposits

1,292


648


2,999


1,934

Federal funds purchased

-


1


10


2

Securities sold under repurchase agreements

5


4


12


10

Subordinated debt

118


118


354


354

FHLB advances 

279


118


681


360

Total interest expense

1,694


889


4,056


2,660









Net interest income

7,802


3,666


19,130


10,641

Provision for loan losses

1,075


259


1,833


407









Net interest income after provision for loan losses

6,727


3,407


17,297


10,234









NON-INTEREST INCOME








Income from fiduciary activities

217


253


691


696

Service charges and fees on deposit accounts

238


212


696


667

VISA-related fees

11


48


59


153

Non-deposit product income

105


83


300


263

Other service charges and fees

201


152


556


449

Secondary market lending income

157


165


358


465

Increase in cash surrender value of life insurance

133


73


341


197

Net (losses) gains on sale of securities available for sale

-


180


2


290

Other real estate gains (losses)

(9)


(6)


(102)


(94)

Other income

17


178


169


194

Total non-interest income

1,070


1,338


3,070


3,280









NON-INTEREST EXPENSES








Salaries and employee benefits

3,687


1,881


9,832


5,751

Occupancy expense

811


445


1,943


1,344

Software maintenance

299


152


897


494

Bank franchise tax

141


82


359


203

VISA expense

-


20


35


81

Telecommunication expense

111


42


215


130

FDIC assessments

119


96


315


280

Foreclosure property expense

45


11


114


40

Consulting expense

58


87


209


216

Advertising and marketing

100


59


227


160

Directors' fees

135


74


466


218

Audit and accounting fees

121


68


366


225

Merger expense

141


-


1,126


-

Intangible amortization

227


-


461


-

Other expense

787


548


2,274


1,739

Total non-interest expenses

6,782


3,565


18,839


10,881









Net income before income taxes

1,015


1,180


1,528


2,633









Income tax expense

273


326


406


669









Net income 

$                      742


$                      854


$                   1,122


$                   1,964









Basic Earnings Per Share








  Average basic shares outstanding

10,488,227


4,774,856


8,175,431


4,774,856

  Earnings per share, basic

$                     0.07


$                     0.18


$                     0.14


$                     0.41









Diluted Earnings Per Share








  Average diluted shares outstanding

10,557,623


4,797,521


8,242,700


4,793,147

  Earnings per share, diluted

$                     0.07


$                     0.18


$                     0.14


$                     0.41

Bay Banks of Virginia, Inc.

Supplemental Financial Data (Unaudited) - Con't


Quarter to Date


9/30/2017

6/30/2017

3/31/2017

12/31/2016

9/30/2016

(Dollars in thousands, except per share amounts)






Consolidated balance sheet data:






Total assets

$    959,936

$  867,392

$  504,207

$  486,710

$  468,274

Loans:






    Mortgage loans on real estate

594,761

522,458

355,323

338,441

327,978

    Commercial and industrial

99,637

85,939

46,205

43,024

36,596

    Consumer loans

48,640

41,229

3,324

3,544

3,615

Total loans

743,038

649,626

404,852

385,009

368,189

Unamortized deferred loan costs

1,590

316

409

391

374

Allowance for loan losses

(4,920)

(4,241)

(3,993)

(3,863)

(3,741)

Net loans

739,708

645,701

401,268

381,537

364,822

Loans held for sale

162

55,620

-

276

481

Cash, interest-bearing deposits and fed funds sold

75,223

41,011

12,249

14,702

12,083

Securities available-for-sale, at fair value

71,893

54,448

49,826

51,173

52,563

Restricted securities

6,000

4,662

3,756

2,649

2,209

Premises and equipment, net

17,472

17,070

10,859

10,844

11,021

Other real estate owned

5,159

5,360

2,436

2,494

2,764

Bank owned life insurance

18,641

18,508

9,944

9,869

9,792

Goodwill

8,968

8,966

2,808

2,808

2,808

Identifiable intangible assets

3,209

3,436

-

-

-

Mortgage servicing rights

978

989

692

671

590

Deposits:






    Noninterest-bearing deposits

$      99,531

$    97,299

$    77,369

$    74,799

$    74,615

    Savings and interest-bearing deposits

297,150

282,056

169,027

178,869

175,448

    Time deposits

338,732

309,619

136,104

128,050

127,912

Total deposits

735,413

688,974

382,500

381,718

377,975

Securities sold under repurchase agreements

17,091

10,786

8,489

18,310

12,984

Federal Home Loan Bank advances

75,000

70,000

60,000

35,000

25,000

Subordinated debt, net of issuance costs

6,873

6,868

6,864

6,860

6,856

Stockholders' equity

117,788

84,478

41,617

41,705

41,948

Consolidated earnings (loss) summary:






Interest income

$        9,496

$      8,892

$      4,798

$      4,635

$      4,555

Interest expense

1,694

1,448

914

865

889

Net interest income

7,802

7,444

3,884

3,770

3,666

Provision for loan losses

1,075

568

190

(120)

259

Noninterest income

1,070

1,143

857

1,330

1,338

Noninterest expense

6,782

7,208

4,849

4,352

3,565

Income before taxes

1,015

811

(298)

868

1,180

Income tax expense (benefit)

273

254

(121)

297

326

Net income (loss)

$           742

$         557

$       (177)

$         571

$         854

Per Share Data:






Basic earnings (loss) per share

$          0.07

$        0.06

$      (0.04)

$        0.12

$        0.18

Diluted earnings (loss) per share

0.07

0.06

(0.04)

0.12

0.18

Dividends per share

0.04

0.04

-

-

-

Book value per share

8.93

8.99

8.69

8.73

8.79

Shares outstanding

13,193,983

9,399,138

4,787,356

4,774,856

4,774,856

Average basic shares

10,488,227

9,233,615

4,776,800

4,774,856

4,774,856

Average diluted shares

10,557,623

9,304,796

4,776,800

4,816,017

4,797,521

Bay Banks of Virginia, Inc.

Supplemental Financial Data (Unaudited) - Con't


Quarter to Date


9/30/2017

6/30/2017

3/31/2017

12/31/2016

9/30/2016

(Dollars in thousands)






Performance ratios (tax-equivalent):






Yield on average earning assets

4.40%

4.53%

4.25%

4.23%

4.22%

Cost of funds

0.83%

0.76%

0.82%

0.80%

0.83%

Net interest spread

3.57%

3.77%

3.43%

3.43%

3.38%

Net interest margin

3.62%

3.80%

3.45%

3.45%

3.40%

Average earnings assets to total average assets

94.99%

92.83%

93.44%

88.76%

92.73%

Return on average assets (annualized)

0.32%

0.26%

-0.14%

0.48%

0.72%

Return on average equity (annualized)

3.10%

2.65%

-1.70%

5.46%

8.14%

Efficiency ratio(1)

76.44%

83.94%

102.28%

85.33%

71.24%

Merger expense

$             141

$             685

$             300

$             575

$                  -

Efficiency ratio (ex-merger expense)

74.85%

75.96%

95.95%

74.06%

71.24%

Average assets

$      913,664

$      851,071

$      489,064

$      476,034

$      472,577

Average earning assets

$      867,853

$      790,072

$      456,957

$      422,537

$      438,202

Average equity

$        95,650

$        84,170

$        41,661

$        41,827

$        41,948

Equity/Assets

12.27%

9.74%

8.25%

8.57%

8.96%


(1) Efficiency Ratio equals Non-Interest Expense as a percentage of the sum of Net Interest Income and Non-interest Income.

Bay Banks of Virginia, Inc.

Supplemental Financial Data (Unaudited) - Con't










Quarter to Date



9/30/2017

6/30/2017

3/31/2017

12/31/2016

9/30/2016

(Dollars in thousands, except per share amounts)




















Asset quality data and ratios:






Nonaccrual loans

$     4,799

$   5,362

$   5,820

$     5,300

$   4,858

Loans greater than 90 days past due and still accruing

-

-

-

-

178

Other real estate owned

5,159

5,360

2,436

2,494

2,764

Total nonperforming assets

9,958

10,722

8,256

7,794

7,800

Net charge-offs (recoveries)

397

320

60

(242)

38

Net charge-offs to average loans (annualized)

0.22%

0.20%

0.06%

-0.26%

0.03%

Total nonperforming assets to total assets

1.04%

1.24%

1.60%

1.67%

1.71%

Total loans to total assets

77.40%

74.89%

80.29%

79.10%

78.63%








Reconciliation of Non-GAAP Measures






Pre-tax preprovision operating earnings (non-GAAP):







Income (loss) before taxes (GAAP)

$     1,015

$      811

$     (298)

$        868

$   1,180


Provision for loan losses

1,075

568

190

(120)

259


Pre-tax preprovision net income (loss)

2,090

1,379

(108)

748

1,439


Securities (gains) losses, net

-

(7)

5

(145)

(180)


Other real estate (gains) losses

9

(3)

96

33

6


Merger expense

141

685

300

575

-

Pre-tax preprovision operating earnings (non-GAAP)

2,240

2,054

293

1,211

1,265








Total core noninterest income (non-GAAP):







Noninterest income (GAAP)

$     1,070

$   1,143

$      857

$     1,330

$   1,338


Securities (gains) losses, net

-

(7)

5

(145)

(180)


OREO (gains) losses, net

9

(3)

96

33

6

Total core noninterest income (non-GAAP)

1,079

1,133

958

1,218

1,164








Tangible equity (non-GAAP):







Total equity (GAAP)

$ 117,788

$ 84,478

$ 41,617

$   41,705

$ 41,948


Intangible assets, net of taxes (a)

10,131

10,279

1,853

1,853

1,853

Tangible equity (non-GAAP)

107,657

74,199

39,764

39,852

40,095

Tangible equity/Assets (non-GAAP)

11.22%

8.55%

7.89%

8.19%

8.56%

Tangible Book Value Per Common Share

8.16

7.89

8.31

8.35

8.40








Return on average tangible common equity (non-GAAP):







Net income (GAAP)

$        742

$      557

$     (177)

$        571

$      854


Amortization of intangibles, net of tax

150

154

-

-

-


Tangible net income available to shareholders (non-GAAP)

892

711

(177)

571

854


Average equity

95,650

84,170

41,661

41,827

41,948


Average intangible assets (a)

10,206

10,356

1,853

1,853

1,853


Average tangible common equity (non-GAAP)

85,444

73,814

39,808

39,974

40,095

Return on average tangible common equity (non-GAAP)

3.47%

3.02%

-1.78%

5.71%

8.52%


(a) Excludes mortgage servicing rights

Net Interest Income Analysis 

Average Balances, Income and Expense, Yields and Rates

(Fully taxable equivalent basis)







(Dollars in thousands)

Three months ended 9/30/2017

Three months ended 9/30/2016


Average
Balance

Income/
Expense

Yield/ Cost

Average
Balance

Income/
Expense

Yield/ Cost

INTEREST EARNING ASSETS:







Taxable investments

$            58,839

$    329

2.24%

$   33,149

$    233

2.81%

Tax-exempt investments(1)

19,285

176

3.64%

20,987

186

3.55%

  Total investments

78,123

504

2.58%

54,136

419

3.10%








Gross loans (2)

737,742

8,874

4.81%

358,087

4,153

4.63%

Interest-bearing deposits and federal funds sold

48,764

159

1.30%

20,896

26

0.50%

Certificates of deposits

3,224

18

2.20%

5,083

20

1.57%

  Total Interest Earning Assets

$          867,853

$ 9,554

4.40%

$ 438,202

$ 4,618

4.22%








INTEREST-BEARING LIABILITIES:







Savings deposits

$            64,115

$      32

0.20%

$   43,588

$      24

0.22%

NOW deposits

93,809

40

0.17%

43,122

21

0.20%

Time deposits

330,496

999

1.21%

127,855

443

1.37%

Money market deposit accounts

134,148

220

0.66%

89,727

160

0.71%

  Total Deposits

622,568

1,292

0.83%

304,292

648

0.84%








Federal funds purchased

-

-

0.00%

154

1

0.87%

Securities sold under repurchase agreements

13,939

5

0.13%

9,545

4

0.17%

Subordinated debt

6,871

118

6.86%

6,854

118

6.84%

FHLB advances

72,500

279

1.54%

29,334

118

1.60%

  Total Interest-Bearing Liabilities

$          715,878

$ 1,694

0.95%

$ 350,179

$    889

1.01%








Net interest income and net interest margin


$ 7,861

3.62%


$ 3,729

3.40%















Non-interest-bearing deposits

$            96,644

-

0.00%

$   76,810

-

0.00%

Total Cost of funds



0.83%



0.83%

Net interest rate spread



3.57%



3.38%


Notes:

(1) Income and yield assumes a federal tax rate of 34%.

(2) Includes loan fees and nonaccrual loans.

Net Interest Income Analysis 

Average Balances, Income and Expense, Yields and Rates

(Fully taxable equivalent basis)







(Dollars in thousands)

Nine months ended 9/30/2017

Nine months ended 9/30/2016


Average
Balance

Income/
Expense

Yield/ Cost

Average
Balance

Income/
Expense

Yield/ Cost

INTEREST EARNING ASSETS:







Taxable investments

$            40,765

$      946

3.10%

$   31,181

$      651

2.78%

Tax-exempt investments(1)

19,233

521

3.61%

23,024

597

3.46%

  Total investments

59,999

1,467

3.26%

54,205

1,248

3.07%








Gross loans (2)

601,278

21,588

4.79%

351,805

12,140

4.60%

Interest-bearing deposits and federal funds sold

27,566

253

1.23%

15,742

54

0.46%

Certificates of deposits

3,564

55

2.05%

5,343

62

1.57%

  Total Interest Earning Assets

$          692,408

$ 23,364

4.50%

$ 427,095

$ 13,504

4.22%








INTEREST-BEARING LIABILITIES:







Savings deposits

$            58,563

$        91

0.21%

$   42,826

$        66

0.21%

NOW deposits

76,558

103

0.18%

40,781

52

0.17%

Time deposits

247,839

2,248

1.21%

128,829

1,334

1.38%

Money market deposit accounts

116,419

557

0.64%

86,059

482

0.75%

  Total Deposits

499,379

2,999

0.80%

298,495

1,934

0.87%








Federal funds purchased

1,999

10

0.69%

254

2

1.06%

Securities sold under repurchase agreements

9,827

12

0.16%

7,361

10

0.18%

Subordinated debt

6,867

354

6.87%

6,850

354

6.90%

FHLB advances

64,659

681

1.41%

32,754

360

1.47%

  Total Interest-Bearing Liabilities

$          582,731

$   4,056

0.93%

$ 345,714

$   2,660

1.03%








Net interest income and net interest margin


$ 19,308

3.72%


$ 10,844

3.39%















Non-interest-bearing deposits

$            87,776

-

0.00%

$   70,096

-

0.00%

Total Cost of funds



0.81%



0.85%

Net interest rate spread



3.69%



3.36%


Notes:

(1) Income and yield assumes a federal tax rate of 34%.

(2) Includes loan fees and nonaccrual loans.




The following information was filed by Bay Banks Of Virginia Inc (BAYK) on Tuesday, October 24, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Bay Banks Of Virginia Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Bay Banks Of Virginia Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account