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Bay Banks Of Virginia Inc (BAYK) SEC Filing 10-K Annual report for the fiscal year ending Sunday, December 31, 2017

Bay Banks Of Virginia Inc

CIK: 1034594 Ticker: BAYK

Exhibit 99.1
 

Bay Banks of Virginia, Inc. Announces
Fourth Quarter and Full Year 2017 Results and Update

Richmond, Va., March 26, 2018; Bay Banks of Virginia, Inc. (the "Company") (OTCQB: BAYK), holding company of Virginia Commonwealth Bank and VCB Financial Group, today reported unaudited financial results for the full year and the fourth quarter ended December 31, 2017.
"Our transformative accomplishments in 2017 provide momentum into 2018 and beyond as advancements with the sales teams in the Richmond and Hampton Roads markets have contributed to strong organic loan growth of 29.3% excluding loans acquired in the merger with Virginia BanCorp Inc. ("Virginia BanCorp").  On April 1, 2017, Virginia Commonwealth Bank and Bank of Lancaster combined in a successful merger, then core systems were converted and the headquarters moved to Richmond, Virginia prior to year-end.  During the fourth quarter, net interest income continued to rise on a linked quarter basis, driving consistent core earnings expansion.  For the year, one-time merger and systems conversion expenses totaled $1.9 million and one-time professional and other expenses related to the succession of our Chief Financial Officer ("CFO") were $457,000.  Management also increased the allowance for loan and lease losses to 1.01% of total loans from 0.65% just after the merger.  Excluding the one-time items, growth in earnings before tax and provision continued.  We believe we have a well-positioned franchise, headquartered in the dynamic Richmond, Virginia market, with sound growth, asset quality and capital levels, a widening net interest margin, a freshly bolstered allowance for loan and lease losses, and an experienced and seasoned executive team.  I am proud of our accomplishments in 2017 as we shift our focus to 2018 and beyond, with the intention of improving efficiency and expanding fee income while maintaining lending momentum coupled with strong risk management practices." said Randal R. Greene, President and Chief Executive Officer.
Greene continued, "In the fourth quarter, the Company updated its April 1, 2017 fair market value of Virginia BanCorp's balance sheet to better reflect the expected value of a pool of consumer loans acquired in the merger.  This portfolio, which totaled $17.4 million at April 1, 2017, has experienced elevated charge offs since the merger which have exceeded the discount previously assigned to the pool of loans, and accordingly, its fair value was adjusted down by $2.2 million.  The decline in fair value of these loans resulted in a $1.4 million increase in goodwill, which translated into a $0.08 per share decrease in tangible book value as of April 1, 2017.  At December 31, 2017, this acquired consumer loan portfolio has paid down to a balance of $11.1 million.  Loans charged-off since the merger date from this acquired portfolio totaled $696,000."
Net Income
The Company reported a net loss of $2.0 million, or $0.16 per diluted common share for the three months ended December 31, 2017 compared to net income of $571,000, or $0.12 per diluted common share for the three months ended December 31, 2016.  Net loss for the full year ended December 31, 2017 totaled $943,000, or $0.10 per common share compared to net income of $2.5 million, or $0.53 per common share for the prior year.  Results for the fourth quarter included merger and systems conversion costs of $850,000, expenses related to the succession of the CFO of $457,000 and provision expense for loan and lease losses of $3.1 million, which included $2.1 million in provision expense in excess of charged off loans that was attributed to growth in the loan portfolio.
Rising Net Interest Income
The Company's primary source of revenue is its net interest income, which is the sum of the Company's interest income on loans and investments less its interest costs associated with customer deposits and other interest-bearing liabilities.  Net interest income continues to rise year over year and on a linked quarter basis. Net interest income totaled $8.6 million for the three months ended December 31, 2017 compared to $7.8 million for the three months ended September 30, 2017 and $3.8 million for the prior year period before the merger.  Accretion income for the three and twelve-months ended December 31, 2017 totaled $1.0 million and $1.9 million, respectively.  The net interest margin for the fourth quarter of 2017 totaled 3.82%, which improved from 3.45% over the same period a year ago, as interest earning asset yields increased faster than the cost of the Company's interest-bearing liabilities in the current rising interest rate environment.
 
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The following information was filed by Bay Banks Of Virginia Inc (BAYK) on Tuesday, March 27, 2018 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Consolidated Balance Sheets
Consolidated Balance Sheets (parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Changes In Shareholders' Equity
Consolidated Statements Of Changes In Shareholders' Equity (parenthetical)
Consolidated Statements Of Comprehensive Income (loss)
Consolidated Statements Of Operations
Accumulated Other Comprehensive Loss, Net
Accumulated Other Comprehensive Loss, Net (tables)
Accumulated Other Comprehensive Loss,net - Balances In Accumulated Other Comprehensive Income (loss) (detail)
Accumulated Other Comprehensive Loss,net - Balances In Accumulated Other Comprehensive Income (loss) (parenthetical) (detail)
Accumulated Other Comprehensive Loss,net - Reclassification For Unrealized Gains And Impairments On Securities And Pension And Postemployment Related Costs (detail)
Allowance For Loan Losses
Allowance For Loan Losses (tables)
Allowance For Loan Losses - Additional Information (detail)
Allowance For Loan Losses - Allowance For Loan Losses By Portfolio Segment (detail)
Allowance For Loan Losses - Changes In Accretable Yield For Pci Loans (detail)
Allowance For Loan Losses - Company's Recorded Investment And Customers' Unpaid Principal Balances For Impaired Loans, With Associated Allowance Amount (detail)
Allowance For Loan Losses - Internal Risk Rating Grades (detail)
Allowance For Loan Losses - Loan Receivables Evaluated For Impairment Individually And Collectively By Segment (detail)
Allowance For Loan Losses - Performing And Non Performing Loans (detail)
Allowance For Loan Losses - Performing And Non Performing Loans (parenthetical) (detail)
Allowance For Loan Losses - Summary Of Troubled Debt Restructurings (detail)
Business Combination
Business Combination (tables)
Business Combination - Additional Information (detail)
Business Combination - Schedule Of Fair Value Of Assets Acquired And Liabilities Assumed (detail)
Business Combination - Schedule Of Pro Forma Financial Information (detail)
Business Combination - Summary Of Impact Of Certain Acquisition Accounting Adjustments (detail)
Business Combination - Summary Of Information About The Pci Loan Portfolio (detail)
Condensed Financial Information Of Parent Company
Condensed Financial Information Of Parent Company (tables)
Condensed Financial Information Of Parent Company - Condensed Balance Sheets (detail)
Condensed Financial Information Of Parent Company - Condensed Statements Of Cash Flows (detail)
Condensed Financial Information Of Parent Company - Condensed Statements Of Operations (detail)
Debt
Debt (tables)
Debt - Additional Information (detail)
Debt - Advances Of Debt (detail)
Deposits
Deposits (tables)
Deposits - Additional Information (detail)
Deposits - Schedule Of Time Deposits Maturities (detail)
Earnings Per Share
Earnings Per Share (tables)
Earnings Per Share - Additional Information (detail)
Earnings Per Share - Weighted Average Number Of Shares Used In Computing Earnings Per Share (detail)
Employee Benefit Plans
Employee Benefit Plans (tables)
Employee Benefit Plans - Additional Information (detail)
Employee Benefit Plans - Amounts Recognized In Accumulated Other Comprehensive Loss (income) (detail)
Employee Benefit Plans - Change In Benefit Obligation (detail)
Employee Benefit Plans - Change In Plan Assets (detail)
Employee Benefit Plans - Components Of Net Periodic Benefit Cost (gain) (detail)
Employee Benefit Plans - Defined Benefit Plan (detail)
Employee Benefit Plans - Estimated Future Benefit Payments For Pension And Postretirement Plans (detail)
Employee Benefit Plans - Other Changes In Plan Assets And Benefit Obligations Recognized In Accumulated Other Comprehensive (income) Loss (detail)
Employee Benefit Plans - Weighted-average Assumptions (detail)
Employee Stock Ownership Plan
Employee Stock Ownership Plan - Additional Information (detail)
Fair Value Measurements
Fair Value Measurements (tables)
Fair Value Measurements - Additional Information (detail)
Fair Value Measurements - Estimated Fair Values Of Financial Instruments (detail)
Fair Value Measurements - Reconciliation Of Items Using Level Three Inputs (detail)
Fair Value Measurements - Schedule Of Balances Of Financial Assets And Liabilities Measured At Fair Value On Recurring Basis (detail)
Fair Value Measurements - Summary Of Assets Measured At Fair Value On Nonrecurring Basis (detail)
Fair Value Measurements - Summary Of Quantitative Fair Value Measurements For Level 3 (detail)
Financial Instruments With Off-balance Sheet Risk
Financial Instruments With Off-balance Sheet Risk - Additional Information (detail)
Future Minimum Lease Payments For Long-term Non-cancelable Lease Agreements (detail)
Income Taxes
Income Taxes (tables)
Income Taxes - Additional Information (detail)
Income Taxes - Components Of Net Deferred Tax Assets And Liabilities (detail)
Income Taxes - Expense (benefit) For Income Taxes (detail)
Income Taxes - Summary Of Reasons For Differences Between Statutory Federal Income Tax Rates And Effective Tax Rates (detail)
Intangible Assets
Intangible Assets (tables)
Intangible Assets - Additional Information (detail)
Intangible Assets - Estimated Remaining Amortization Expense (detail)
Intangible Assets - Information Concerning Intangible Assets With A Finite Life (detail)
Investment Securities
Investment Securities (tables)
Investment Securities - Additional Information (detail)
Investment Securities - Aggregate Amortized Cost And Fair Values Of Available-for-sale Securities Portfolio (detail)
Investment Securities - Aggregate Amortized Cost And Market Values Of Investment Securities Portfolio By Contractual Maturity (detail)
Investment Securities - Gross Realized Gains And Gross Realized Losses On Sales Of Securities (detail)
Investment Securities - Unrealized Loss Positions (detail)
Leases
Leases (tables)
Leases - Additional Information (detail)
Loans
Loans (tables)
Loans - Additional Information (detail)
Loans - Recorded Investment In Past Due And Non-accruing Loans (detail)
Loans - Summary Of Balances Of Loans (detail)
Loans - Summary Of Recorded Investment Of Purchased Impaired Loans (detail)
Organization And Presentation
Organization And Presentation - Additional Information (detail)
Other Borrowings
Other Borrowings (tables)
Other Borrowings - Additional Information (detail)
Other Borrowings - Short-term Borrowings (detail)
Other Real Estate Owned Net - Components Of Expenses Applicable To Foreclosed Assets (detail)
Other Real Estate Owned Net - Net Of Valuation Allowances For Losses On Foreclosed Assets (detail) (detail)
Other Real Estate Owned Net - Summary Of Properties Included In Other Real Estate Owned (oreo) (detail)
Other Real Estate Owned, Net
Other Real Estate Owned, Net (tables)
Other Real Estate Owned, Net - Additional Information (detail)
Premises And Equipment Net - Additional Information (detail)
Premises And Equipment Net - Components Of Premises And Equipment Included In Balance Sheets (detail)
Premises And Equipment, Net
Premises And Equipment, Net (tables)
Regulatory Requirements And Restrictions
Regulatory Requirements And Restrictions (tables)
Regulatory Requirements And Restrictions - Additional Information (detail)
Regulatory Requirements And Restrictions - Schedule Of Bank's Actual Capital Amounts And Ratios (detail)
Related Parties
Related Parties (tables)
Related Parties - Additional Information (detail)
Related Parties - Related Parties (detail)
Restrictions On Cash And Due From Banks
Restrictions On Cash Due From Banks - Additional Information (detail)
Significant Accounting Policies
Significant Accounting Policies (policies)
Significant Accounting Policies - Additional Information (detail)
Stock-based Compensation Plans
Stock-based Compensation Plans (tables)
Stock-based Compensation Plans - Additional Information (detail)
Stock-based Compensation Plans - Fair Value Of Options (detail)
Stock-based Compensation Plans - Fair Value Of Options (parenthetical) (detail)
Stock-based Compensation Plans - Summary Of Stock Option Activity (detail)
Subordinated Debt (detail)
Subordinated Debt (parenthetical) (detail)
Ticker: BAYK
CIK: 1034594
Form Type: 10-K Annual Report
Accession Number: 0001193125-18-110334
Submitted to the SEC: Fri Apr 06 2018 7:34:41 PM EST
Accepted by the SEC: Mon Apr 09 2018
Period: Sunday, December 31, 2017
Industry: State Commercial Banks

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