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BAYK: Merged with Blue Ridge Bankshares, Inc. (BRBS); Shareholders of BAYK will receive 0.50 shares of BRBS for each share held.
FINRA deleted symbol:
https://otce.finra.org/otce/dailyList?viewType=Deletions
Bay Banks of Virginia, Inc. Reports Third Quarter and Year-to-date 2019 Results
Company Release - 10/29/2019 4:30 PM ET
RICHMOND, Va., Oct. 29, 2019 /PRNewswire/ -- Bay Banks of Virginia, Inc. (OTCQB: BAYK), holding company of Virginia Commonwealth Bank and VCB Financial Group, Inc., announced financial results for the three and nine months ended September 30, 2019.
The company reported net income of $1.8 million, or $0.14 per diluted share, for the third quarter of 2019 compared to $1.7 million, or $0.13 per diluted share, for the second quarter of 2019 and $1.0 million, or $0.08 per diluted share, for the third quarter of 2018. For the first nine months of 2019, the company reported net income of $5.1 million, or $0.39 per diluted share, compared to $3.1 million, or $0.24 per diluted share, for the first nine months of 2018. Net income in the first nine months of 2018 included $363 thousand ($287 thousand1 after income tax) of merger-related expenses incurred in connection with the company's merger with Virginia BanCorp, Inc. on April 1, 2017 (the "Merger").
Randal R. Greene, President and Chief Executive Officer, commented: "I am again pleased to report improved quarterly results. On a pre-tax, pre-loan loss provision basis, income increased $600 thousand1 when comparing the third quarter to the second quarter of 2019 and $1.1 million1 when comparing the third quarter of 2019 to the third quarter of 2018. In the third quarter of 2019, we continued to realize the benefit of stronger loan yields, though recent index rate declines are resulting in downward pressure on yields.
"As noted last quarter, deposit costs in our markets are stabilizing. We began to lower deposit costs late in the second quarter, and due to this and lower rates on alternative funding sources, I am pleased to report declining funding costs on a sequential quarter basis. In addition, we are experiencing some success in growing noninterest-bearing accounts, though this growth is occurring at a slower pace than we would like. We've had many wins, though it takes time for these accounts to fund."
Operating Results
Third Quarter 2019 compared to Second Quarter 2019
•Income before income taxes for the third quarter of 2019 was $2.3 million compared to $2.1 million for the second quarter of 2019.
•Interest income for the three months ended September 30, 2019 was $12.8 million, on average interest-earning assets of $1.04 billion, compared to $12.3 million, on average interest-earning assets of $1.04 billion, for the three months ended June 30, 2019. Interest income in the third quarter of 2019 included accretion of acquired loan discounts of $357 thousand, while interest income in the second quarter of 2019 included $197 thousand of accretion of acquired loan discounts. Higher accretion in the third quarter of 2019 was primarily attributable to early payoffs of loans acquired in the Merger. Yields on average interest-earning assets were 4.87% and 4.77% for the sequential quarter periods, including the effect of accretion. Of the increase in yield from the second quarter to the third quarter of 2019, 6 basis points were attributable to higher accretion of acquired loan discounts of $160 thousand.
•Interest expense was $3.7 million and $3.8 million for the three months ended September 30, 2019 and June 30, 2019, respectively, and cost of funds was 1.52% and 1.58% for the sequential quarter periods. Average interest-bearing liabilities were $851.4 million and $857.4 million for the third and second quarters of 2019, respectively.
•Net interest margin ("NIM") was 3.45% for the third quarter of 2019 compared to 3.29% for the second quarter of 2019. Of the increase in NIM from the second quarter to the third quarter of 2019, 6 basis points were attributable to higher accretion of acquired loan discounts in the third quarter of 2019.
•Provision for loan losses was $495 thousand in the third quarter of 2019, while provision for loan losses in the second quarter of 2019 was $62 thousand. Higher provision for loan losses in the third quarter of 2019 was primarily attributable to net charge-offs from a select portfolio of purchased consumer loans, a specific reserve for a commercial and industrial loan, and gross loan growth of $14.4 million.
•Noninterest income for the three months ended September 30, 2019 and June 30, 2019 was $1.2 million and $1.3 million, respectively. Lower noninterest income in the third quarter of 2019 compared to the second quarter of 2019 was primarily due to lower wealth management revenue, which decreased $77 thousand on a sequential quarter basis.
•Noninterest expense for the three months ended September 30, 2019 and June 30, 2019 was $7.4 million and $7.6 million, respectively. Noninterest expense for the third quarter of 2019 included the benefit of a small bank assessment credit from the Federal Deposit Insurance Corporation ("FDIC") of $171 thousand and a decrease in salaries and employee benefits expense, partially offset by a net loss on the sale and valuation of other real estate owned of $375 thousand. The company's efficiency ratio for the third quarter of 2019 was 72.8% compared to 77.7% for the second quarter of 2019.
•Income tax expense for the third quarter of 2019 was $448 thousand, reflective of a 19.6% effective income tax rate, while income tax expense for the second quarter of 2019 was $395 thousand, reflective of an 18.7% effective income tax rate.
Nine Months Ended September 30, 2019 compared to Nine Months Ended September 30, 2018
•Income before income taxes for the nine months ended September 30, 2019 was $6.2 million compared to $3.7 million for the first nine months of 2018.
•Interest income for the nine months ended September 30, 2019 was $37.4 million, on average interest-earning assets of $1.04 billion, compared to $32.1 million for the nine months ended September 30, 2018, on average interest-earning assets of $916.2 million. Interest income in the nine months ended September 30, 2019 included accretion of acquired loan discounts of $993 thousand, while interest income in the nine months ended September 30, 2018 included $1.4 million of accretion of acquired loan discounts. Yields on average interest-earning assets were 4.85% and 4.69% for the first nine months of 2019 and 2018, respectively. The higher yield on average interest-earning assets in the 2019 period was primarily due to higher loan yields, partially offset by lower accretion of acquired loan discounts of $407 thousand, which had a negative 5 basis point effect.
•Interest expense was $11.2 million and $7.0 million for the nine months ended September 30, 2019 and 2018, respectively, and cost of funds was of 1.55% and 1.08% for the respective periods. Higher cost of funds in the nine months ended September 30, 2019 was primarily due to competition for deposits in the company's markets, the repricing of maturing time deposits, greater use and cost of Federal Home Loan Bank of Atlanta advances, and higher interest rates in general. Average interest-bearing liabilities were $854.1 million and $752.5 million for the nine months ended September 30, 2019 and 2018, respectively.
•NIM was 3.39% for the nine months ended September 30, 2019 compared to 3.67% for the nine months ended September 30, 2018. Lower NIM in the 2019 period was primarily due to higher cost of funds and lower accretion of acquired loan discounts, partially offset by higher loan yields. Lower accretion of acquired loan discounts had a negative 6 basis point effect on NIM in the 2019 period compared to the 2018 period.
•Provision for loan losses was $871 thousand for the nine months ended September 30, 2019, primarily attributable to net charge-offs and additions to the specific reserve in the third quarter of 2019, noted previously, and gross loan growth of $29.7 million. Provision for loan losses in the nine months ended September 30, 2018 was $481 thousand, which included a $580 thousand benefit to correct for an overstatement in the company's allowance for loan losses as of December 31, 2017, as previously reported.
•Noninterest income for the nine months ended September 30, 2019 and 2018 was $3.6 million and $3.3 million, respectively. The 2018 period included a gain of $352 thousand on the curtailment of the company's post-retirement benefit plan.
•Noninterest expense for the nine months ended September 30, 2019 and 2018 was $22.7 million and $24.2 million, respectively. Expenses associated with the succession of the company's CFO and in the completion of the company's 2017 year-end reporting incurred in the first half of 2018 were approximately $1.2 million. Merger-related expenses were $0 and $363 thousand for the nine months ended September 30, 2019 and 2018, respectively.
•Income tax expense for the nine months ended September 30, 2019 was $1.2 million, reflective of an 18.9% effective income tax rate, while income tax expense for the nine months ended September 30, 2018 was $645 thousand, reflective of a 17.2% effective income tax rate.
Third Quarter 2019 compared to Third Quarter 2018
•Income before income taxes for the third quarter of 2019 was $2.3 million compared to $1.2 million for the third quarter of 2018.
•Interest income for the three months ended September 30, 2019 was $12.8 million, on average interest-earning assets of $1.04 billion, compared to $10.9 million, on average interest-earning assets of $929.1 million, for the three months ended September 30, 2018. Interest income in the third quarter of 2019 and 2018 included accretion of acquired loan discounts of $357 thousand. Yields on average interest-earning assets were 4.87% and 4.66% for the third quarters of 2019 and 2018, respectively. The increase in yield on average interest-earning assets was primarily attributable to higher loan yields in the 2019 period.
•Interest expense was $3.7 million and $2.6 million for the three months ended September 30, 2019 and 2018, respectively, and cost of funds was 1.52% and 1.19%, for the respective periods. Higher costs of funds in the 2019 period was primarily due to higher cost of deposits of 1.40% in the 2019 period compared to 1.02% in the 2018 period due to the reasons noted above. Average interest-bearing liabilities were $851.4 million and $762.0 million for the third quarters of 2019 and 2018, respectively.
•NIM was 3.45% for the third quarter of 2019 compared to 3.57% for the third quarter of 2018. The decline in NIM was primarily attributable to higher cost of deposits, partially offset by higher loan yields in the 2019 period.
•Provision for loan losses was $495 thousand for the three months ended September 30, 2019, primarily attributable to net charge-offs from a select portfolio of purchased consumer loans, a specific reserve for a commercial and industrial loan, and gross loan growth of $14.4 million in the third quarter of 2019. Provision for loan losses for the three months ended September 30, 2018 was $509 thousand, primarily attributable to gross loan growth of $52.7 million.
•Noninterest income for the three months ended September 30, 2019 and 2018 was $1.2 million and $996 thousand, respectively. The increase of $204 thousand quarter over quarter was primarily attributable to higher secondary market sales and servicing income, as the company sold a greater volume of mortgages originated in the 2019 period.
•Noninterest expense for the three months ended September 30, 2019 and 2018 was $7.4 million and $7.5 million, respectively. In the third quarter of 2019, the company received a small bank assessment credit of $171 thousand from the FDIC, as noted previously. Higher consulting, legal, and audit and accounting fees in the 2018 period were primarily related to projects, such as the implementation of an enterprise risk management platform, legal services related to the company's employment benefit plans, and a Sarbanes-Oxley readiness assessment. Additionally, in the third quarter of 2019, the company reported a $375 thousand net loss on the sale and valuation of other real estate owned, while a net gain of $112 thousand was reported in the 2018 period. The company's efficiency ratio for the third quarter of 2019 was 72.8% compared to 81.3% for the same quarter of 2018.
•Income tax expense for the third quarter of 2019 and 2018 was $448 thousand and $198 thousand, respectively, reflective of a 19.6% and 16.2% effective income tax rate, respectively.
Balance Sheet
•Total assets were $1.11 billion and $1.08 billion at September 30, 2019 and December 31, 2018, respectively.
•Loans, net of allowance for loan losses, were $924.3 million at September 30, 2019 compared to $894.2 million at December 31, 2018, an annualized growth rate of over 4%. Excluding the payoff of approximately $31.8 million in the first nine months of 2019 of purchased portfolio loans, including those acquired in the Merger, loan growth, annualized, was approximately 9% for the first nine months of 2019.
•Deposits were $893.7 million at September 30, 2019 compared to $842.2 million at December 31, 2018. Noninterest-bearing demand accounts comprised 14.0% of total deposits at September 30, 2019, up 40 basis points from 13.6% at December 31, 2018.
•Shareholders' equity was $124.9 million and $117.5 million at September 30, 2019 and December 31, 2018, respectively, an increase of $7.4 million. The increase in shareholders' equity in the first nine months of 2019 was primarily attributable to net income of $5.1 million and $1.7 million of net unrealized gains on the company's available-for-sale securities portfolio. Tangible book value, calculated as shareholders' equity less goodwill and core deposit intangible assets, net of the associated deferred tax liability, divided by common shares outstanding, was $8.491 and $7.981 at September 30, 2019 and December 31, 2018, respectively. Capital ratios for Virginia Commonwealth Bank were above regulatory minimum guidelines for well-capitalized banks as of September 30, 2019 and December 31, 2018.
•Annualized return on average assets for the quarters ended September 30, 2019, June 30, 2019, and September 30, 2018 was 0.66%, 0.62%, and 0.41%, respectively, while annualized return on average equity for the same periods was 5.97%, 5.72%, and 3.55%, respectively.
Asset Quality
•Nonperforming assets were $9.4 million, or 0.84% of total assets, as of September 30, 2019, compared to $7.7 million, or 0.71% of total assets, as of June 30, 2019, and $8.8 million, or 0.81% of total assets, as of December 31, 2018. The increase in nonperforming assets as of September 30, 2019 was primarily attributable to a commercial and industrial loan participation to a professional service firm being classified as substandard and placed on nonaccrual during the third quarter of 2019. During the third quarter of 2019, the borrower announced its plan to liquidate and subsequently filed for Chapter 7 bankruptcy. The outstanding balance of the loan as of September 30, 2019 was $2.7 million. As of June 30, 2019, the outstanding balance of the loan was $5.9 million and was classified as special mention. This increase in nonperforming assets in the third quarter of 2019 was partially offset by a $990 thousand reduction of other real estate owned, net, as the company continues to reduce its foreclosed properties portfolio.
•The ratio of allowance for loan losses to total gross loans was 0.80%, 0.82%, and 0.88% at September 30, 2019, June 30, 2019, and December 31, 2018, respectively. The company's allowance for loan losses does not include discounts recorded on loans acquired in the Merger, which were $2.9 million, $3.3 million, and $3.9 million as of September 30, 2019, June 30, 2019, and December 31, 2018, respectively.
Outlook
Greene concluded: "Our loan pipeline continues to be strong; however, the lower rate environment is resulting in some competitors offering terms with which we will not compete. Additionally, we anticipate accelerated pay-offs in this down-rate environment. We will continue our strategy of funding the highest yielding loans and emphasizing residential loan originations that can be sold in the secondary market. We will continue to walk-down deposit costs, which I expect will provide some support to our net interest margin.
"I continue to believe we are operating in two of Virginia's strongest markets and that these markets will perform well during most market conditions. Our recent $25 million subordinated notes offering provides us with adequate capital to continue our growth strategy, funding to possibly call our existing subordinated notes, and the ability to weather any unforeseen negative market conditions. Finally, our board of directors recently approved a share repurchase program, which we will utilize as market opportunities arise."
About Bay Banks of Virginia, Inc.
Bay Banks of Virginia, Inc. is the bank holding company for Virginia Commonwealth Bank and VCB Financial Group, Inc. Founded in the 1930s, Virginia Commonwealth Bank is headquartered in Richmond, Virginia. With 19 banking offices, including one loan production office, located throughout the greater Richmond region, the Northern Neck region, Middlesex County, and the Hampton Roads region, the bank serves businesses, professionals, and consumers with a wide variety of financial services, including retail and commercial banking, and mortgage banking. VCB Financial Group provides management services for personal and corporate trusts, including estate planning, estate settlement and trust administration, and investment and wealth management services.
Caution About 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: changes in interest rates and 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; implementation of new technologies and the ability to develop and maintain secure and reliable electronic systems; and tax and accounting rules, principles, policies 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.
For further information, contact Randal R. Greene, President and Chief Executive Officer, at 844-404-9668 or Judy C. Gavant, Executive Vice President and Chief Financial Officer, at 804-518-2606 or inquiries@baybanks.com.
1 See discussion of non-GAAP financial measures at the end of the Supplemental Financial Data tables that follow.
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Shareholders want BAYK management to be in the market active here and buy back shares in the low $8’s
Plenty of supply
Patience ;)
Sure takings its merry time.
It's making a push. Patience. Check out today's news.
BAYK - News Out - (Lazarus adding)
Bay Banks of Virginia, Inc. Announces Share Repurchase Program
RICHMOND, Va., Oct. 18, 2019 /PRNewswire/ -- Bay Banks of Virginia, Inc. (the "Company") (OTCQB: BAYK), holding company of Virginia Commonwealth Bank and VCB Financial Group, Inc., today announced that its Board of Directors has authorized the repurchase of up to 400,000 shares or approximately 3% of the Company's currently outstanding common stock through December 31, 2020 (the "Repurchase Program").
article here
___________________
I buy the riskiest of risky and put profits into the safest of the safe.
You do realize that this is trading under Book Value.
I'm confident some smart fund manager will take out that 5k block of shares at $8.25
yep... needs to break through the 200dma and hold for awhile --- if it does we should get a golden cross.
BAYK needs to break through resistance $8.25-$8.30. We have seen some solid volume and nice size BIDS...
good luck
https://stockcharts.com/freecharts/gallery.html?bayk
Looks like a BUY here.
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)
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SOURCE Bay Banks of Virginia, Inc.
http://www.baybanks.com/CorporateProfile.aspx?iid=1137107
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)
BAYK $9.50 new 52week high
Bay Banks Of Virgini (BAYK)
9.5 ? 0.25 (2.70%)
Volume: 11,489 @ 4:25:27 PM ET
BAYK 2016 full year stats
Book Value $8.73
NIM 3.4%
NPAs/Total Assets 1.6
ALLL/NPL 72.9
Followers
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2
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Posters
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Posts (Today)
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0
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Posts (Total)
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15
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Created
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10/19/08
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Type
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Free
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Moderators |
Bay Banks of Virginia, Inc.
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