Thursday, July 27, 2017 9:56:58 AM
Bay Banks of Virginia, Inc. Reports June 30, 2017 Quarterly Operating Results
RICHMOND, Va., July 26, 2017 /PRNewswire/ -- Bay Banks of Virginia, Inc. (OTCQB: BAYK) (the "Company"), the parent holding company of Virginia Commonwealth Bank (the "Bank"), reports its unaudited second 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. During the second quarter of 2017, the Company reported net earnings of $557 thousand (net of merger related expenses) or $0.06 per diluted share. "Since the merger was finalized, the integration of Virginia Commonwealth Bank and Bank of Lancaster is progressing on schedule and the move of our headquarters to Richmond has been completed, " said Randal R. Greene, President and Chief Executive Officer. He continued, "Our total assets are now $867.4 million and pre-tax/pre-provision operating earnings are strong. We have declared our first dividend in a number of years in the amount of $0.04 per share, with profitability supporting a diverse, well-capitalized balance sheet."
HIGHLIGHTS
Strong Operating Earnings Performance - Net interest income grew by $4.4 million, non-interest income was unchanged at $2.0 million and provision for loan losses increased by $610 thousand primarily due to organic loan portfolio growth. Cumulative non-interest expense over the course of the first and second quarters increased by $4.7 million or 64.8% from the six month period last year, driven by merger-related costs ($985,000) as well as compensation expense related to severance costs and new hires associated with the merger and growth into the Richmond market. As a result, return on average assets ("ROA") for the second quarter decreased to 0.26% from 0.51% for the comparable prior-year period, and return on average equity decreased to 2.65% from 5.74%. Excluding the effect of merger expenses, pre-tax/pre-provision operating earnings amounted to $2.054 million for the second quarter, as compared to $908 thousand for the same period last year.
Consistent and Measured Growth - Total assets immediately post-merger were $834.7 million and increased to $867.4 million as of June 30, 2017, reflective of growth in our deposit base of $38.5 million since the merger date. This funded loan growth of $32.2 million, with the total portfolio standing at $649.6 million at second quarter end.
Diversified Loan Base and Improved Margins -- Benefiting from an effective mix of residential, non-residential, commercial and consumer loans, net interest margin was 3.7% for the 2017 quarter compared to 3.37% for the second quarter of 2016. Asset quality remains good. For the second quarter of 2017, net interest income was $7.4 million compared to $3.5 million during the second quarter of 2016. For the six months ended June 30, 2017, net interest income was $11.3 million compared to $7.0 million for the six months ended June 30, 2016.
Focus on Fee Income - Noninterest income was $1.1 million and $2.0 million respectively for the quarter and year to date period ending June 30, 2017, both comparable to last year. During the quarter, VCB Financial Group, formerly Bay Trust and Wealth Management Group, was established with a focus on growing wealth management and trust services within the Company's market footprint.
Operating Efficiency - Noninterest expense for the second quarter of 2017 was $7.2 million compared to $3.6 million for the second quarter of 2016. For the six months ended June 30, 2017, noninterest expense was $12.1 million compared to $7.3 million for the six months ended June 30, 2016. As a result, the Company's efficiency ratio was 83.94% for the quarter as compared to 79.13% for the same period last year. Excluding merger-related expenses, the Company's efficiency ratio for the second quarter of 2017 was 75.96%.
Income tax expense was $254 thousand and $190 thousand for the second quarter of 2017 and 2016, respectively. For the first half of 2017 and 2016, income tax expense was $133 thousand and $343 thousand, respectively. The effective tax rate for the second quarter of 2017 and 2016 was 31.3% and 24.5%, respectively, and for the six months ended June 30, 2017 and 2016, was 25.9% and 23.6%, respectively.
BALANCE SHEET AND CAPITAL STRENGTH
As of June 30, 2017, loans totaled $649.6 million, of which $212.6 million were acquired in the merger. As of December 31, 2016 and June 30, 2016, loans totaled $385.0 million and $350.9 million, respectively. Investment securities and interest-bearing cash liquidity increased by $26.0 million to $91.2 million at June 30, 2017, from $65.2 million at year-end 2016, with $34.4 million acquired in the merger.
Deposits totaled $689.0 million at June 30, 2017, increasing $307.3 million, or 80.5%, from $381.7 million at December 31, 2016, of which $267.9 million of deposits were acquired in the merger.
Stockholders' equity increased by $42.8 million to $84.5 million at June 30, 2017, from $41.7 million at December 31, 2016, of which $42.3 million related to the merger. The Company's GAAP capital ratio was 9.74% as of June 30, 2017 as compared to 8.80% as of June 30, 2016. The Company continues to be a "well capitalized" institution as defined by the banking regulations.
The tangible equity to assets ratio was 8.55% at June 30, 2017, compared to 8.19% at December 31, 2016. The tangible book value per common share was $7.89 at June 30, 2017, as compared to $8.35 at December 31, 2016.
ASSET QUALITY
Non-performing assets ("NPAs") were $10.7 million at June 30, 2017, or 1.24% of total assets compared to $7.8 million, or 1.67% of total assets, at December 31, 2016. NPAs at June 30, 2017 included $5.4 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 $5.4 million at June 30, 2017 (excludes purchased credit-impaired loans), or 0.83% of total loans, compared to $5.3 million, or 1.39%, at December 31, 2016.
The provision for credit losses in the first half of 2017 was $758 thousand versus $148 thousand for the first half of 2016, the increase being driven by post-merger loan portfolio growth. The allowance for loan losses ("ALL") represented 0.65% of total loans (including those acquired in the merger) at June 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 nineteen 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/regularity 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.
(MORE TO FOLLOW) Dow Jones Newswires
July 26, 2017 19:21 ET (23:21 GMT)
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 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
December 31, 2016
June 30, 2017 (1) June 30, 2016
------------------ ------------------- ----------------
(Dollars in thousands) (unaudited) (unaudited)
ASSETS
Cash and due from
banks $ 7,454 $ 4,851 $ 5,141
Interest-bearing
deposits and federal
funds sold 33,557 9,851 21,596
Certificates of
deposit 3,224 4,216 5,456
Securities
available-for-sale,
at fair value 54,448 51,173 54,012
Restricted securities 4,662 2,649 2,422
Loans receivable, net
of allowance for loan
losses
of $4,241 and
$3,863 645,701 381,537 347,755
Loans held for sale 55,620 276 2,425
Premises and
equipment, net 17,070 10,844 11,231
Accrued interest
receivable 2,624 1,372 1,270
Other real estate
owned, net 5,360 2,494 2,641
Bank owned life
insurance 18,508 9,869 7,719
Goodwill 8,966 2,808 2,808
Mortgage servicing
rights 989 671 620
Core deposit
intangible 3,436 0 0
Other assets 5,773 4,099 3,243
------------------ ------------------- ----------------
Total assets $ 867,392 $ 486,710 $ 468,339
LIABILITIES
Noninterest-bearing
deposits $ 97,299 $ 74,799 $ 74,157
Savings and
interest-bearing
demand deposits 282,056 178,869 177,075
Time deposits 309,619 128,050 127,797
------------------ ------------------- ----------------
Total deposits 688,974 381,718 379,029
Securities sold under
repurchase
agreements 10,786 18,310 8,182
Federal Home Loan
Bank advances 70,000 35,000 30,000
Subordinated debt,
net of issuance
costs 6,868 6,860 6,852
Other liabilities 6,286 3,117 3,064
------------------ ------------------- ----------------
Total liabilities 782,914 445,005 427,127
------------------ ------------------- ----------------
SHAREHOLDERS' EQUITY
Common stock ($5 par
value; authorized -
30,000,000 shares;
outstanding -
9,399,138 and
4,774,856 shares,
respectively) 46,996 23,874 23,874
Additional paid-in
capital 23,111 2,872 2,828
Unearned employee
stock ownership plan
shares (911) - -
Retained earnings 16,197 16,194 14,769
Accumulated other
comprehensive loss,
net (915) (1,235) (259)
------------------ ------------------- ----------------
Total shareholders'
equity 84,478 41,705 41,212
------------------ ------------------- ----------------
Total liabilities and
shareholders' equity $ 867,392 $ 486,710 $ 468,339
(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 six months ended
(Dollars in thousands
except per share
amounts) June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016
INTEREST INCOME
Loans, including fees $ 8,326 $ 4,013 $ 12,714 $ 7,987
Securities:
Taxable 348 211 617 418
Tax-exempt 114 135 228 271
Interest-bearing
deposit accounts and
federal funds sold 86 13 94 28
Certificates of
deposit 18 20 37 42
---------------- ---------------- ---------------- ----------------
Total interest income 8,892 4,392 13,690 8,746
---------------- ---------------- ---------------- ----------------
INTEREST EXPENSE
Deposits 1,077 641 1,707 1,286
Federal funds
purchased - 1 10 1
Securities sold under
repurchase
agreements 4 4 7 6
Subordinated debt 119 118 236 236
FHLB advances 248 117 402 242
---------------- ---------------- ---------------- ----------------
Total interest expense 1,448 881 2,362 1,771
---------------- ---------------- ---------------- ----------------
Net interest income 7,444 3,511 11,328 6,975
---------------- ---------------- ---------------- ----------------
Provision for loan
losses 568 183 758 148
---------------- ---------------- ---------------- ----------------
Net interest income
after provision for
loan losses 6,876 3,328 10,570 6,827
---------------- ---------------- ---------------- ----------------
NON-INTEREST INCOME
Income from fiduciary
activities 229 236 474 443
Service charges and
fees on deposit
accounts 246 228 458 455
VISA-related fees 49 59 48 105
Non-deposit product
income 115 74 195 180
Other service charges
and fees 184 149 355 297
Secondary market
lending income 86 223 201 300
Increase in cash
surrender value of
life insurance 133 61 208 124
Net (losses) gains on
sale of securities
available for sale 7 104 2 110
Other real estate
gains (losses) 3 (53) (93) (88)
Other income 91 3 152 16
---------------- ---------------- ---------------- ----------------
Total non-interest
income 1,143 1,084 2,000 1,942
---------------- ---------------- ---------------- ----------------
NON-INTEREST EXPENSES
Salaries and employee
benefits 3,321 1,815 6,145 3,870
Occupancy expense 693 451 1,132 899
Software maintenance 394 181 598 342
Bank franchise tax 142 61 218 121
VISA expense 15 22 35 61
Telephone expense 76 35 104 66
FDIC assessments 111 103 196 184
Foreclosure property
expense 59 17 69 29
Consulting expense 97 74 151 129
Advertising and
marketing 54 59 127 101
Directors' fees 209 65 331 144
Audit and accounting
fees 217 56 245 157
Merger expense 685 - 985 -
Intangible
(MORE TO FOLLOW) Dow Jones Newswires
July 26, 2017 19:21 ET (23:21 GMT)
amortization 234 - 234 -
Other expense 901 697 1,487 1,213
---------------- ---------------- ---------------- ----------------
Total non-interest
expenses 7,208 3,636 12,057 7,316
---------------- ---------------- ---------------- ----------------
Net income before
income taxes 811 776 513 1,453
Income tax expense 254 190 133 343
---------------- ---------------- ---------------- ----------------
Net income $ 557 $ 586 $ 380 $ 1,110
Basic Earnings Per
Share
Average basic shares
outstanding 9,233,615 4,774,856 7,017,907 4,774,856
Earnings per share,
basic $ 0.06 $ 0.12 $ 0.05 $ 0.23
Diluted Earnings Per
Share
Average diluted
shares outstanding 9,304,796 4,794,783 7,084,430 4,792,571
Earnings per share,
diluted $ 0.06 $ 0.12 $ 0.05 $ 0.23
Bay Banks of Virginia, Inc.
Supplemental Financial Data (Unaudited) - Con't
Quarter to Date
6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016
----------- ------------ ----------- ----------- -----------
(Dollars in thousands, except per
share amounts)
Consolidated balance
sheet data:
-----------------------
Total assets $ 867,392 $ 504,207 $ 486,710 $ 468,274 $ 468,339
Loans:
Mortgage loans on
real estate 522,458 355,323 338,441 327,978 315,392
Commercial and
industrial 85,939 46,205 43,024 36,596 31,767
Consumer loans 41,229 3,324 3,544 3,615 3,790
Total loans 649,626 404,852 385,009 368,189 350,949
Unamortized deferred
loan costs 316 409 391 374 353
Allowance for loan
losses (4,241) (3,993) (3,863) (3,741) (3,547)
Net loans 645,701 401,268 381,537 364,822 347,755
Loans held for sale 55,620 - 276 481 2,425
Cash, interest-bearing
deposits and fed funds
sold 41,011 11,913 12,352 11,623 25,191
Securities
available-for-sale, at
fair value 54,448 49,826 51,173 52,563 54,012
Restricted securities 4,662 3,756 2,649 2,209 2,422
Premises and equipment,
net 17,070 10,859 10,844 11,021 11,231
Other real estate owned 5,360 2,436 2,494 2,764 2,641
Bank owned life
insurance 18,508 9,944 9,869 9,792 7,719
Goodwill 8,966 2,808 2,808 2,808 2,808
Identifiable intangible
assets 3,436 - - - -
Mortgage servicing
rights 989 692 671 590 620
Deposits:
Noninterest-bearing
deposits $ 97,299 $ 77,369 $ 74,799 $ 74,615 $ 74,157
Savings and
interest-bearing
deposits 282,056 169,027 178,869 175,448 177,075
Time deposits 309,619 136,104 128,050 127,912 127,797
Total deposits 688,974 382,500 381,718 377,975 379,029
Securities sold under
repurchase agreements 10,786 8,489 18,310 12,984 8,182
Federal Home Loan Bank
advances 70,000 60,000 35,000 25,000 30,000
Subordinated debt, net
of issuance costs 6,868 6,864 6,830 6,856 6,852
Stockholders' equity 84,478 41,617 41,705 41,948 41,212
Consolidated earnings
(loss) summary:
-----------------------
Interest income $ 8,892 $ 4,798 $ 4,635 $ 4,555 $ 4,392
Interest expense 1,448 914 865 889 881
Net interest income 7,444 3,884 3,770 3,666 3,511
Provision for loan
losses 568 190 (120) 259 183
Noninterest income 1,143 857 1,330 1,338 1,084
Noninterest expense 7,208 4,849 4,352 3,565 3,636
Income before taxes 811 (298) 868 1,180 776
Income tax expense
(benefit) 254 (121) 297 326 190
Net income (loss) $ 557 $ (177) $ 571 $ 854 $ 586
Per Share Data:
-----------------------
Basic earnings (loss)
per share $ 0.06 $ (0.04) $ 0.12 $ 0.18 $ 0.12
Diluted earnings (loss)
per share 0.06 (0.04) 0.12 0.18 0.12
Dividends per share 0.04 - - - -
Book value per share 8.99 8.69 8.73 8.79 8.63
Shares outstanding 9,399,138 4,787,356 4,774,856 4,774,856 4,774,856
Average basic shares 9,233,615 4,776,800 4,774,856 4,774,856 4,774,856
Average diluted shares 9,304,796 4,776,800 4,816,017 4,797,521 4,794,783
Bay Banks of Virginia, Inc.
Supplemental Financial Data (Unaudited) - Con't
Quarter to Date
6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016
--------- --------- ---------- --------- ---------
(Dollars in thousands, except per
share amounts)
Performance ratios
(tax-equivalent):
----------------------
Yield on average
earning assets 4.53% 4.25% 4.23% 4.22% 4.21%
Cost of funds 0.76% 0.82% 0.80% 0.83% 0.86%
Net interest spread 3.77% 3.43% 3.43% 3.38% 3.35%
Net interest margin 3.80% 3.45% 3.45% 3.40% 3.37%
Average earnings
assets to total
average assets 92.83% 93.44% 88.76% 92.73% 93.06%
Return on average
assets (annualized) 0.26% -0.14% 0.48% 0.72% 0.51%
Return on average
equity (annualized) 2.65% -1.70% 5.46% 8.14% 5.74%
Efficiency ratio(1) 83.94% 102.28% 85.33% 71.24% 79.13%
Merger Expense $685 $300 $575 $0 $0
Efficiency ratio
(ex-merger expense) 75.96% 95.95% 74.06% 71.24% 79.13%
Average assets $851,071 $489,064 $476,034 $472,577 $455,300
Average earning assets $790,072 $456,957 $422,537 $438,202 $423,711
Average equity $84,170 $41,661 $41,827 $41,948 $40,826
Equity/Assets 9.74% 8.25% 8.57% 8.96% 8.80%
(1) Efficiency Ratio equals Non-Interest Expense as a percentage of the sum of
Net Interest Income and Noninterest Income
Bay Banks of Virginia, Inc.
Supplemental Financial Data (Unaudited) - Con't
Quarter to Date
6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016
----------- ----------- ----------- ----------- -----------
(Dollars in thousands,
except per share amounts)
Asset quality data and
ratios:
--------------------------
Nonaccrual loans $ 5,362 $ 5,820 $ 5,300 $ 4,858 $ 5,147
Loans greater than 90 days
past due and still
accruing - - - 178 216
Other real estate owned 5,360 2,436 2,494 2,764 2,641
Total nonperforming assets 10,722 8,256 7,794 7,800 8,004
Net charge-offs
(recoveries) 320 60 (242) 38 743
Net charge-offs to average
loans (annualized) 0.20% 0.06% -0.26% 0.03% 0.85%
Total nonperforming assets
to total assets 1.24% 1.60% 1.67% 1.71% 1.70%
Total loans to total
assets 74.89% 80.29% 79.10% 78.63% 74.93%
Reconciliation of Non-GAAP
Measures
--------------------------
Pre-tax preprovision
operating earnings
(non-GAAP):
Income (loss) before
taxes (GAAP) $ 811 $ (298) $ 868 $ 1,180 $ 776
Provision for loan losses 568 190 (120) 259 183
Pre-tax preprovision net
income (loss) 1,379 (108) 748 1,439 959
Securities (gains)
losses, net (7) 5 (145) (180) (104)
Other real estate (gains)
losses (3) 96 33 6 53
Merger expense 685 300 575 - -
Pre-tax preprovision
operating earnings
(non-GAAP) 2,054 293 1,211 1,265 908
Total core noninterest
income (non-GAAP):
Noninterest income (GAAP) $ 1,143 $ 857 $ 1,330 $ 1,338 $ 1,084
Securities (gains)
losses, net (7) 5 (145) (180) (104)
OREO (gains) losses, net (3) 96 33 6 53
Total core noninterest
(MORE TO FOLLOW) Dow Jones Newswires
July 26, 2017 19:21 ET (23:21 GMT)
Bay Banks of Virginia, Inc. Reports June 30, 2017 -4-
income (non-GAAP) 1,133 958 1,218 1,164 1,033
Tangible equity
(non-GAAP):
Total equity (GAAP) $ 84,478 $ 41,617 $ 41,705 $ 41,948 $ 41,212
Intangible assets, net of
taxes (a) 10,279 1,853 1,853 1,853 1,853
Tangible equity (non-GAAP) 74,199 39,764 39,852 40,095 39,359
Tangible equity/Assets
(non-GAAP) 8.55% 7.89% 8.19% 8.56% 8.40%
Tangible Book Value Per
Common Share 7.89 8.31 8.35 8.40 8.24
Return on average tangible
common equity (non-GAAP):
Net income (GAAP) $ 557 $ (177) $ 571 $ 854 $ 586
Amortization of
intangibles, net of tax 154 - - - -
Tangible net income
available to
shareholders (non-GAAP) 711 (177) 571 854 586
Average equity 84,170 41,661 41,827 41,948 40,826
Average intangible assets
(a) 10,356 1,853 1,853 1,853 1,853
Average tangible common
equity (non-GAAP) 73,814 39,808 39,974 40,095 38,973
Return on average tangible
common equity (non-GAAP) 3.02% -1.78% 5.71% 8.52% 6.01%
(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 6/30/2017 Three months ended 6/30/2016
------------------------------------ ---------------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Cost Balance Expense Cost
INTEREST EARNING
ASSETS:
-----------------------
Taxable investments $ 44,390 $ 348 3.13% $ 30,240 $ 211 2.79%
Tax-exempt
investments(1) 19,235 173 3.60% 23,728 205 3.46%
Total investments 63,625 521 3.27% 53,968 416 3.08%
Gross loans (2) 684,629 8,326 4.86% 351,765 4,013 4.57%
Interest-bearing
deposits and federal
funds sold 38,393 87 0.90% 12,522 13 0.40%
Certificates of
deposits 3,426 18 2.09% 5,456 20 1.47%
Total Interest Earning
Assets $ 790,072 $ 8,951 4.53% $ 423,711 $ 4,462 4.21%
INTEREST-BEARING
LIABILITIES:
-----------------------
Savings deposits $ 65,835 $ 33 0.20% $ 42,926 $ 22 0.21%
NOW deposits 91,919 40 0.17% 39,988 15 0.15%
Time deposits 288,324 813 1.13% 128,298 441 1.38%
Money market deposit
accounts 128,640 191 0.59% 85,247 163 0.77%
Total Deposits 574,717 1,077 0.75% 296,459 641 0.87%
Federal funds purchased - - 0.00% 609 1 1.11%
Securities sold under
repurchase agreements 9,520 4 0.17% 6,708 4 0.20%
Subordinated debt 6,867 119 6.95% 6,850 118 6.92%
FHLB advances 76,630 248 1.29% 31,056 117 1.51%
Total Interest-Bearing
Liabilities $ 667,733 $ 1,448 0.87% $ 341,682 $ 881 1.03%
Net interest income and
net interest margin $ 7,503 3.80% $ 3,581 3.37%
Non-interest-bearing
deposits $ 95,264 - 0.00% $ 69,951 - 0.00%
Total Cost of funds 0.76% 0.86%
Net interest rate
spread 3.77% 3.35%
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) Six months ended 6/30/2017 Six months ended 6/30/2016
--------------------------------- ---------------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Cost Balance Expense Cost
INTEREST EARNING
ASSETS:
-----------------------
Taxable investments $ 36,096 $ 617 3.42% $ 30,196 $ 418 2.77%
Tax-exempt
investments(1) 19,196 345 3.60% 24,043 411 3.42%
Total investments 55,293 962 3.48% 54,239 829 3.06%
Gross loans(2) 539,156 12,714 4.72% 349,831 7,987 4.57%
Interest-bearing
deposits and federal
funds sold 23,294 95 0.81% 13,143 28 0.42%
Certificates of
deposits 3,744 37 1.96% 5,497 42 1.53%
Total Interest Earning
Assets $ 621,486 $ 13,807 4.44% $ 422,710 $ 8,886 4.20%
INTEREST-BEARING
LIABILITIES:
-----------------------
Savings deposits $ 55,136 $ 58 0.21% $ 42,444 $ 42 0.20%
NOW deposits 68,343 63 0.18% 39,611 30 0.15%
Time deposits 209,401 1,251 1.19% 129,316 892 1.39%
Money market deposit
accounts 109,098 335 0.61% 84,225 322 0.77%
Total Deposits 441,978 1,707 0.77% 295,596 1,286 0.88%
Federal funds purchased 1,339 10 1.54% 304 1 1.11%
Securities sold under
repurchase agreements 8,876 7 0.16% 6,269 6 0.19%
Subordinated debt 6,865 236 6.86% 6,848 236 6.92%
FHLB advances 59,542 402 1.35% 34,465 242 1.41%
Total Interest-Bearing
Liabilities $ 518,599 $ 2,362 0.91% $ 343,482 $ 1,771 1.04%
Net interest income and
net interest margin $ 11,445 3.68% $ 7,115 3.37%
Non-interest-bearing
deposits $ 83,510 - 0.00% $ 66,738 - 0.00%
Total Cost of funds 0.78% 0.87%
Net interest rate
spread 3.66% 3.33%
Notes:
(1) Income and yield assumes a federal tax rate of 34%.
(2) Includes loan fees and nonaccrual loans.
View original content with multimedia:http://www.prnewswire.com/news-releases/bay-banks-of-virginia-inc-reports-june-30-2017-quarterly-operating-results-300494962.html
SOURCE Bay Banks of Virginia, Inc.
/Web site: http://www.baybanks.com
(END) Dow Jones Newswires
July 26, 2017 19:21 ET (23:21 GMT)
RICHMOND, Va., July 26, 2017 /PRNewswire/ -- Bay Banks of Virginia, Inc. (OTCQB: BAYK) (the "Company"), the parent holding company of Virginia Commonwealth Bank (the "Bank"), reports its unaudited second 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. During the second quarter of 2017, the Company reported net earnings of $557 thousand (net of merger related expenses) or $0.06 per diluted share. "Since the merger was finalized, the integration of Virginia Commonwealth Bank and Bank of Lancaster is progressing on schedule and the move of our headquarters to Richmond has been completed, " said Randal R. Greene, President and Chief Executive Officer. He continued, "Our total assets are now $867.4 million and pre-tax/pre-provision operating earnings are strong. We have declared our first dividend in a number of years in the amount of $0.04 per share, with profitability supporting a diverse, well-capitalized balance sheet."
HIGHLIGHTS
Strong Operating Earnings Performance - Net interest income grew by $4.4 million, non-interest income was unchanged at $2.0 million and provision for loan losses increased by $610 thousand primarily due to organic loan portfolio growth. Cumulative non-interest expense over the course of the first and second quarters increased by $4.7 million or 64.8% from the six month period last year, driven by merger-related costs ($985,000) as well as compensation expense related to severance costs and new hires associated with the merger and growth into the Richmond market. As a result, return on average assets ("ROA") for the second quarter decreased to 0.26% from 0.51% for the comparable prior-year period, and return on average equity decreased to 2.65% from 5.74%. Excluding the effect of merger expenses, pre-tax/pre-provision operating earnings amounted to $2.054 million for the second quarter, as compared to $908 thousand for the same period last year.
Consistent and Measured Growth - Total assets immediately post-merger were $834.7 million and increased to $867.4 million as of June 30, 2017, reflective of growth in our deposit base of $38.5 million since the merger date. This funded loan growth of $32.2 million, with the total portfolio standing at $649.6 million at second quarter end.
Diversified Loan Base and Improved Margins -- Benefiting from an effective mix of residential, non-residential, commercial and consumer loans, net interest margin was 3.7% for the 2017 quarter compared to 3.37% for the second quarter of 2016. Asset quality remains good. For the second quarter of 2017, net interest income was $7.4 million compared to $3.5 million during the second quarter of 2016. For the six months ended June 30, 2017, net interest income was $11.3 million compared to $7.0 million for the six months ended June 30, 2016.
Focus on Fee Income - Noninterest income was $1.1 million and $2.0 million respectively for the quarter and year to date period ending June 30, 2017, both comparable to last year. During the quarter, VCB Financial Group, formerly Bay Trust and Wealth Management Group, was established with a focus on growing wealth management and trust services within the Company's market footprint.
Operating Efficiency - Noninterest expense for the second quarter of 2017 was $7.2 million compared to $3.6 million for the second quarter of 2016. For the six months ended June 30, 2017, noninterest expense was $12.1 million compared to $7.3 million for the six months ended June 30, 2016. As a result, the Company's efficiency ratio was 83.94% for the quarter as compared to 79.13% for the same period last year. Excluding merger-related expenses, the Company's efficiency ratio for the second quarter of 2017 was 75.96%.
Income tax expense was $254 thousand and $190 thousand for the second quarter of 2017 and 2016, respectively. For the first half of 2017 and 2016, income tax expense was $133 thousand and $343 thousand, respectively. The effective tax rate for the second quarter of 2017 and 2016 was 31.3% and 24.5%, respectively, and for the six months ended June 30, 2017 and 2016, was 25.9% and 23.6%, respectively.
BALANCE SHEET AND CAPITAL STRENGTH
As of June 30, 2017, loans totaled $649.6 million, of which $212.6 million were acquired in the merger. As of December 31, 2016 and June 30, 2016, loans totaled $385.0 million and $350.9 million, respectively. Investment securities and interest-bearing cash liquidity increased by $26.0 million to $91.2 million at June 30, 2017, from $65.2 million at year-end 2016, with $34.4 million acquired in the merger.
Deposits totaled $689.0 million at June 30, 2017, increasing $307.3 million, or 80.5%, from $381.7 million at December 31, 2016, of which $267.9 million of deposits were acquired in the merger.
Stockholders' equity increased by $42.8 million to $84.5 million at June 30, 2017, from $41.7 million at December 31, 2016, of which $42.3 million related to the merger. The Company's GAAP capital ratio was 9.74% as of June 30, 2017 as compared to 8.80% as of June 30, 2016. The Company continues to be a "well capitalized" institution as defined by the banking regulations.
The tangible equity to assets ratio was 8.55% at June 30, 2017, compared to 8.19% at December 31, 2016. The tangible book value per common share was $7.89 at June 30, 2017, as compared to $8.35 at December 31, 2016.
ASSET QUALITY
Non-performing assets ("NPAs") were $10.7 million at June 30, 2017, or 1.24% of total assets compared to $7.8 million, or 1.67% of total assets, at December 31, 2016. NPAs at June 30, 2017 included $5.4 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 $5.4 million at June 30, 2017 (excludes purchased credit-impaired loans), or 0.83% of total loans, compared to $5.3 million, or 1.39%, at December 31, 2016.
The provision for credit losses in the first half of 2017 was $758 thousand versus $148 thousand for the first half of 2016, the increase being driven by post-merger loan portfolio growth. The allowance for loan losses ("ALL") represented 0.65% of total loans (including those acquired in the merger) at June 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 nineteen 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/regularity 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.
(MORE TO FOLLOW) Dow Jones Newswires
July 26, 2017 19:21 ET (23:21 GMT)
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 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
December 31, 2016
June 30, 2017 (1) June 30, 2016
------------------ ------------------- ----------------
(Dollars in thousands) (unaudited) (unaudited)
ASSETS
Cash and due from
banks $ 7,454 $ 4,851 $ 5,141
Interest-bearing
deposits and federal
funds sold 33,557 9,851 21,596
Certificates of
deposit 3,224 4,216 5,456
Securities
available-for-sale,
at fair value 54,448 51,173 54,012
Restricted securities 4,662 2,649 2,422
Loans receivable, net
of allowance for loan
losses
of $4,241 and
$3,863 645,701 381,537 347,755
Loans held for sale 55,620 276 2,425
Premises and
equipment, net 17,070 10,844 11,231
Accrued interest
receivable 2,624 1,372 1,270
Other real estate
owned, net 5,360 2,494 2,641
Bank owned life
insurance 18,508 9,869 7,719
Goodwill 8,966 2,808 2,808
Mortgage servicing
rights 989 671 620
Core deposit
intangible 3,436 0 0
Other assets 5,773 4,099 3,243
------------------ ------------------- ----------------
Total assets $ 867,392 $ 486,710 $ 468,339
LIABILITIES
Noninterest-bearing
deposits $ 97,299 $ 74,799 $ 74,157
Savings and
interest-bearing
demand deposits 282,056 178,869 177,075
Time deposits 309,619 128,050 127,797
------------------ ------------------- ----------------
Total deposits 688,974 381,718 379,029
Securities sold under
repurchase
agreements 10,786 18,310 8,182
Federal Home Loan
Bank advances 70,000 35,000 30,000
Subordinated debt,
net of issuance
costs 6,868 6,860 6,852
Other liabilities 6,286 3,117 3,064
------------------ ------------------- ----------------
Total liabilities 782,914 445,005 427,127
------------------ ------------------- ----------------
SHAREHOLDERS' EQUITY
Common stock ($5 par
value; authorized -
30,000,000 shares;
outstanding -
9,399,138 and
4,774,856 shares,
respectively) 46,996 23,874 23,874
Additional paid-in
capital 23,111 2,872 2,828
Unearned employee
stock ownership plan
shares (911) - -
Retained earnings 16,197 16,194 14,769
Accumulated other
comprehensive loss,
net (915) (1,235) (259)
------------------ ------------------- ----------------
Total shareholders'
equity 84,478 41,705 41,212
------------------ ------------------- ----------------
Total liabilities and
shareholders' equity $ 867,392 $ 486,710 $ 468,339
(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 six months ended
(Dollars in thousands
except per share
amounts) June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016
INTEREST INCOME
Loans, including fees $ 8,326 $ 4,013 $ 12,714 $ 7,987
Securities:
Taxable 348 211 617 418
Tax-exempt 114 135 228 271
Interest-bearing
deposit accounts and
federal funds sold 86 13 94 28
Certificates of
deposit 18 20 37 42
---------------- ---------------- ---------------- ----------------
Total interest income 8,892 4,392 13,690 8,746
---------------- ---------------- ---------------- ----------------
INTEREST EXPENSE
Deposits 1,077 641 1,707 1,286
Federal funds
purchased - 1 10 1
Securities sold under
repurchase
agreements 4 4 7 6
Subordinated debt 119 118 236 236
FHLB advances 248 117 402 242
---------------- ---------------- ---------------- ----------------
Total interest expense 1,448 881 2,362 1,771
---------------- ---------------- ---------------- ----------------
Net interest income 7,444 3,511 11,328 6,975
---------------- ---------------- ---------------- ----------------
Provision for loan
losses 568 183 758 148
---------------- ---------------- ---------------- ----------------
Net interest income
after provision for
loan losses 6,876 3,328 10,570 6,827
---------------- ---------------- ---------------- ----------------
NON-INTEREST INCOME
Income from fiduciary
activities 229 236 474 443
Service charges and
fees on deposit
accounts 246 228 458 455
VISA-related fees 49 59 48 105
Non-deposit product
income 115 74 195 180
Other service charges
and fees 184 149 355 297
Secondary market
lending income 86 223 201 300
Increase in cash
surrender value of
life insurance 133 61 208 124
Net (losses) gains on
sale of securities
available for sale 7 104 2 110
Other real estate
gains (losses) 3 (53) (93) (88)
Other income 91 3 152 16
---------------- ---------------- ---------------- ----------------
Total non-interest
income 1,143 1,084 2,000 1,942
---------------- ---------------- ---------------- ----------------
NON-INTEREST EXPENSES
Salaries and employee
benefits 3,321 1,815 6,145 3,870
Occupancy expense 693 451 1,132 899
Software maintenance 394 181 598 342
Bank franchise tax 142 61 218 121
VISA expense 15 22 35 61
Telephone expense 76 35 104 66
FDIC assessments 111 103 196 184
Foreclosure property
expense 59 17 69 29
Consulting expense 97 74 151 129
Advertising and
marketing 54 59 127 101
Directors' fees 209 65 331 144
Audit and accounting
fees 217 56 245 157
Merger expense 685 - 985 -
Intangible
(MORE TO FOLLOW) Dow Jones Newswires
July 26, 2017 19:21 ET (23:21 GMT)
amortization 234 - 234 -
Other expense 901 697 1,487 1,213
---------------- ---------------- ---------------- ----------------
Total non-interest
expenses 7,208 3,636 12,057 7,316
---------------- ---------------- ---------------- ----------------
Net income before
income taxes 811 776 513 1,453
Income tax expense 254 190 133 343
---------------- ---------------- ---------------- ----------------
Net income $ 557 $ 586 $ 380 $ 1,110
Basic Earnings Per
Share
Average basic shares
outstanding 9,233,615 4,774,856 7,017,907 4,774,856
Earnings per share,
basic $ 0.06 $ 0.12 $ 0.05 $ 0.23
Diluted Earnings Per
Share
Average diluted
shares outstanding 9,304,796 4,794,783 7,084,430 4,792,571
Earnings per share,
diluted $ 0.06 $ 0.12 $ 0.05 $ 0.23
Bay Banks of Virginia, Inc.
Supplemental Financial Data (Unaudited) - Con't
Quarter to Date
6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016
----------- ------------ ----------- ----------- -----------
(Dollars in thousands, except per
share amounts)
Consolidated balance
sheet data:
-----------------------
Total assets $ 867,392 $ 504,207 $ 486,710 $ 468,274 $ 468,339
Loans:
Mortgage loans on
real estate 522,458 355,323 338,441 327,978 315,392
Commercial and
industrial 85,939 46,205 43,024 36,596 31,767
Consumer loans 41,229 3,324 3,544 3,615 3,790
Total loans 649,626 404,852 385,009 368,189 350,949
Unamortized deferred
loan costs 316 409 391 374 353
Allowance for loan
losses (4,241) (3,993) (3,863) (3,741) (3,547)
Net loans 645,701 401,268 381,537 364,822 347,755
Loans held for sale 55,620 - 276 481 2,425
Cash, interest-bearing
deposits and fed funds
sold 41,011 11,913 12,352 11,623 25,191
Securities
available-for-sale, at
fair value 54,448 49,826 51,173 52,563 54,012
Restricted securities 4,662 3,756 2,649 2,209 2,422
Premises and equipment,
net 17,070 10,859 10,844 11,021 11,231
Other real estate owned 5,360 2,436 2,494 2,764 2,641
Bank owned life
insurance 18,508 9,944 9,869 9,792 7,719
Goodwill 8,966 2,808 2,808 2,808 2,808
Identifiable intangible
assets 3,436 - - - -
Mortgage servicing
rights 989 692 671 590 620
Deposits:
Noninterest-bearing
deposits $ 97,299 $ 77,369 $ 74,799 $ 74,615 $ 74,157
Savings and
interest-bearing
deposits 282,056 169,027 178,869 175,448 177,075
Time deposits 309,619 136,104 128,050 127,912 127,797
Total deposits 688,974 382,500 381,718 377,975 379,029
Securities sold under
repurchase agreements 10,786 8,489 18,310 12,984 8,182
Federal Home Loan Bank
advances 70,000 60,000 35,000 25,000 30,000
Subordinated debt, net
of issuance costs 6,868 6,864 6,830 6,856 6,852
Stockholders' equity 84,478 41,617 41,705 41,948 41,212
Consolidated earnings
(loss) summary:
-----------------------
Interest income $ 8,892 $ 4,798 $ 4,635 $ 4,555 $ 4,392
Interest expense 1,448 914 865 889 881
Net interest income 7,444 3,884 3,770 3,666 3,511
Provision for loan
losses 568 190 (120) 259 183
Noninterest income 1,143 857 1,330 1,338 1,084
Noninterest expense 7,208 4,849 4,352 3,565 3,636
Income before taxes 811 (298) 868 1,180 776
Income tax expense
(benefit) 254 (121) 297 326 190
Net income (loss) $ 557 $ (177) $ 571 $ 854 $ 586
Per Share Data:
-----------------------
Basic earnings (loss)
per share $ 0.06 $ (0.04) $ 0.12 $ 0.18 $ 0.12
Diluted earnings (loss)
per share 0.06 (0.04) 0.12 0.18 0.12
Dividends per share 0.04 - - - -
Book value per share 8.99 8.69 8.73 8.79 8.63
Shares outstanding 9,399,138 4,787,356 4,774,856 4,774,856 4,774,856
Average basic shares 9,233,615 4,776,800 4,774,856 4,774,856 4,774,856
Average diluted shares 9,304,796 4,776,800 4,816,017 4,797,521 4,794,783
Bay Banks of Virginia, Inc.
Supplemental Financial Data (Unaudited) - Con't
Quarter to Date
6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016
--------- --------- ---------- --------- ---------
(Dollars in thousands, except per
share amounts)
Performance ratios
(tax-equivalent):
----------------------
Yield on average
earning assets 4.53% 4.25% 4.23% 4.22% 4.21%
Cost of funds 0.76% 0.82% 0.80% 0.83% 0.86%
Net interest spread 3.77% 3.43% 3.43% 3.38% 3.35%
Net interest margin 3.80% 3.45% 3.45% 3.40% 3.37%
Average earnings
assets to total
average assets 92.83% 93.44% 88.76% 92.73% 93.06%
Return on average
assets (annualized) 0.26% -0.14% 0.48% 0.72% 0.51%
Return on average
equity (annualized) 2.65% -1.70% 5.46% 8.14% 5.74%
Efficiency ratio(1) 83.94% 102.28% 85.33% 71.24% 79.13%
Merger Expense $685 $300 $575 $0 $0
Efficiency ratio
(ex-merger expense) 75.96% 95.95% 74.06% 71.24% 79.13%
Average assets $851,071 $489,064 $476,034 $472,577 $455,300
Average earning assets $790,072 $456,957 $422,537 $438,202 $423,711
Average equity $84,170 $41,661 $41,827 $41,948 $40,826
Equity/Assets 9.74% 8.25% 8.57% 8.96% 8.80%
(1) Efficiency Ratio equals Non-Interest Expense as a percentage of the sum of
Net Interest Income and Noninterest Income
Bay Banks of Virginia, Inc.
Supplemental Financial Data (Unaudited) - Con't
Quarter to Date
6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016
----------- ----------- ----------- ----------- -----------
(Dollars in thousands,
except per share amounts)
Asset quality data and
ratios:
--------------------------
Nonaccrual loans $ 5,362 $ 5,820 $ 5,300 $ 4,858 $ 5,147
Loans greater than 90 days
past due and still
accruing - - - 178 216
Other real estate owned 5,360 2,436 2,494 2,764 2,641
Total nonperforming assets 10,722 8,256 7,794 7,800 8,004
Net charge-offs
(recoveries) 320 60 (242) 38 743
Net charge-offs to average
loans (annualized) 0.20% 0.06% -0.26% 0.03% 0.85%
Total nonperforming assets
to total assets 1.24% 1.60% 1.67% 1.71% 1.70%
Total loans to total
assets 74.89% 80.29% 79.10% 78.63% 74.93%
Reconciliation of Non-GAAP
Measures
--------------------------
Pre-tax preprovision
operating earnings
(non-GAAP):
Income (loss) before
taxes (GAAP) $ 811 $ (298) $ 868 $ 1,180 $ 776
Provision for loan losses 568 190 (120) 259 183
Pre-tax preprovision net
income (loss) 1,379 (108) 748 1,439 959
Securities (gains)
losses, net (7) 5 (145) (180) (104)
Other real estate (gains)
losses (3) 96 33 6 53
Merger expense 685 300 575 - -
Pre-tax preprovision
operating earnings
(non-GAAP) 2,054 293 1,211 1,265 908
Total core noninterest
income (non-GAAP):
Noninterest income (GAAP) $ 1,143 $ 857 $ 1,330 $ 1,338 $ 1,084
Securities (gains)
losses, net (7) 5 (145) (180) (104)
OREO (gains) losses, net (3) 96 33 6 53
Total core noninterest
(MORE TO FOLLOW) Dow Jones Newswires
July 26, 2017 19:21 ET (23:21 GMT)
Bay Banks of Virginia, Inc. Reports June 30, 2017 -4-
income (non-GAAP) 1,133 958 1,218 1,164 1,033
Tangible equity
(non-GAAP):
Total equity (GAAP) $ 84,478 $ 41,617 $ 41,705 $ 41,948 $ 41,212
Intangible assets, net of
taxes (a) 10,279 1,853 1,853 1,853 1,853
Tangible equity (non-GAAP) 74,199 39,764 39,852 40,095 39,359
Tangible equity/Assets
(non-GAAP) 8.55% 7.89% 8.19% 8.56% 8.40%
Tangible Book Value Per
Common Share 7.89 8.31 8.35 8.40 8.24
Return on average tangible
common equity (non-GAAP):
Net income (GAAP) $ 557 $ (177) $ 571 $ 854 $ 586
Amortization of
intangibles, net of tax 154 - - - -
Tangible net income
available to
shareholders (non-GAAP) 711 (177) 571 854 586
Average equity 84,170 41,661 41,827 41,948 40,826
Average intangible assets
(a) 10,356 1,853 1,853 1,853 1,853
Average tangible common
equity (non-GAAP) 73,814 39,808 39,974 40,095 38,973
Return on average tangible
common equity (non-GAAP) 3.02% -1.78% 5.71% 8.52% 6.01%
(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 6/30/2017 Three months ended 6/30/2016
------------------------------------ ---------------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Cost Balance Expense Cost
INTEREST EARNING
ASSETS:
-----------------------
Taxable investments $ 44,390 $ 348 3.13% $ 30,240 $ 211 2.79%
Tax-exempt
investments(1) 19,235 173 3.60% 23,728 205 3.46%
Total investments 63,625 521 3.27% 53,968 416 3.08%
Gross loans (2) 684,629 8,326 4.86% 351,765 4,013 4.57%
Interest-bearing
deposits and federal
funds sold 38,393 87 0.90% 12,522 13 0.40%
Certificates of
deposits 3,426 18 2.09% 5,456 20 1.47%
Total Interest Earning
Assets $ 790,072 $ 8,951 4.53% $ 423,711 $ 4,462 4.21%
INTEREST-BEARING
LIABILITIES:
-----------------------
Savings deposits $ 65,835 $ 33 0.20% $ 42,926 $ 22 0.21%
NOW deposits 91,919 40 0.17% 39,988 15 0.15%
Time deposits 288,324 813 1.13% 128,298 441 1.38%
Money market deposit
accounts 128,640 191 0.59% 85,247 163 0.77%
Total Deposits 574,717 1,077 0.75% 296,459 641 0.87%
Federal funds purchased - - 0.00% 609 1 1.11%
Securities sold under
repurchase agreements 9,520 4 0.17% 6,708 4 0.20%
Subordinated debt 6,867 119 6.95% 6,850 118 6.92%
FHLB advances 76,630 248 1.29% 31,056 117 1.51%
Total Interest-Bearing
Liabilities $ 667,733 $ 1,448 0.87% $ 341,682 $ 881 1.03%
Net interest income and
net interest margin $ 7,503 3.80% $ 3,581 3.37%
Non-interest-bearing
deposits $ 95,264 - 0.00% $ 69,951 - 0.00%
Total Cost of funds 0.76% 0.86%
Net interest rate
spread 3.77% 3.35%
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) Six months ended 6/30/2017 Six months ended 6/30/2016
--------------------------------- ---------------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Cost Balance Expense Cost
INTEREST EARNING
ASSETS:
-----------------------
Taxable investments $ 36,096 $ 617 3.42% $ 30,196 $ 418 2.77%
Tax-exempt
investments(1) 19,196 345 3.60% 24,043 411 3.42%
Total investments 55,293 962 3.48% 54,239 829 3.06%
Gross loans(2) 539,156 12,714 4.72% 349,831 7,987 4.57%
Interest-bearing
deposits and federal
funds sold 23,294 95 0.81% 13,143 28 0.42%
Certificates of
deposits 3,744 37 1.96% 5,497 42 1.53%
Total Interest Earning
Assets $ 621,486 $ 13,807 4.44% $ 422,710 $ 8,886 4.20%
INTEREST-BEARING
LIABILITIES:
-----------------------
Savings deposits $ 55,136 $ 58 0.21% $ 42,444 $ 42 0.20%
NOW deposits 68,343 63 0.18% 39,611 30 0.15%
Time deposits 209,401 1,251 1.19% 129,316 892 1.39%
Money market deposit
accounts 109,098 335 0.61% 84,225 322 0.77%
Total Deposits 441,978 1,707 0.77% 295,596 1,286 0.88%
Federal funds purchased 1,339 10 1.54% 304 1 1.11%
Securities sold under
repurchase agreements 8,876 7 0.16% 6,269 6 0.19%
Subordinated debt 6,865 236 6.86% 6,848 236 6.92%
FHLB advances 59,542 402 1.35% 34,465 242 1.41%
Total Interest-Bearing
Liabilities $ 518,599 $ 2,362 0.91% $ 343,482 $ 1,771 1.04%
Net interest income and
net interest margin $ 11,445 3.68% $ 7,115 3.37%
Non-interest-bearing
deposits $ 83,510 - 0.00% $ 66,738 - 0.00%
Total Cost of funds 0.78% 0.87%
Net interest rate
spread 3.66% 3.33%
Notes:
(1) Income and yield assumes a federal tax rate of 34%.
(2) Includes loan fees and nonaccrual loans.
View original content with multimedia:http://www.prnewswire.com/news-releases/bay-banks-of-virginia-inc-reports-june-30-2017-quarterly-operating-results-300494962.html
SOURCE Bay Banks of Virginia, Inc.
/Web site: http://www.baybanks.com
(END) Dow Jones Newswires
July 26, 2017 19:21 ET (23:21 GMT)
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
