(MENAFNEditorial) iCrowdNewswire - Jul 27, 2017
RICHMOND, Va.—Bay Banks ofVirginia, Inc. (OTCQB: BAYK) (the "Company"), the parent holding company of Virginia Commonwealth Bank (the "Bank"), reports its unaudited second quarter 2017 results.
Bay Banks of Virginia Logo
The Company completed its merger with Virginia BanCorp, Inc. onApril 1, 2017and 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$0.06per diluted share. "Since the merger was finalized, the integration of Virginia Commonwealth Bank and Bank ofLancasteris progressing on schedule and the move of our headquarters toRichmondhas been completed," saidRandal R. Greene, President and Chief Executive Officer. He continued, "Our total assets are now$867.4 millionand pre-tax/pre-provision operating earnings are strong. We have declared our first dividend in a number of years in the amount of$0.04per 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 millionand provision for loan losses increased by$610 thousandprimarily due to organic loan portfolio growth. Cumulative non-interest expense over the course of the first and second quarters increased by$4.7 millionor 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 theRichmondmarket. 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 millionfor the second quarter, as compared to$908 thousandfor the same period last year.
Consistent and Measured Growth- Total assets immediately post-merger were$834.7 millionand increased to$867.4 millionas ofJune 30, 2017, reflective of growth in our deposit base of$38.5 millionsince the merger date. This funded loan growth of$32.2 million, with the total portfolio standing at$649.6 millionat second quarter end.
DiversifiedLoan Baseand 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 millioncompared to$3.5 millionduring the second quarter of 2016. For the six months endedJune 30, 2017, net interest income was$11.3 millioncompared to$7.0 millionfor the six months endedJune 30, 2016.
Focus on Fee Income- Noninterest income was$1.1 millionand$2.0 millionrespectively for the quarter and year to date period endingJune 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 millioncompared to$3.6 millionfor the second quarter of 2016. For the six months endedJune 30, 2017, noninterest expense was$12.1 millioncompared to$7.3 millionfor the six months endedJune 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 thousandand$190 thousandfor the second quarter of 2017 and 2016, respectively. For the first half of 2017 and 2016, income tax expense was$133 thousandand$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 endedJune 30, 2017and 2016, was 25.9% and 23.6%, respectively.
BALANCE SHEET AND CAPITAL STRENGTH
As ofJune 30, 2017, loans totaled$649.6 million, of which$212.6 millionwere acquired in the merger. As ofDecember 31, 2016andJune 30, 2016, loans totaled$385.0 millionand$350.9 million, respectively. Investment securities and interest-bearing cash liquidity increased by$26.0 millionto$91.2 millionatJune 30, 2017, from$65.2 millionat year-end 2016, with$34.4 millionacquired in the merger.
Deposits totaled$689.0 millionatJune 30, 2017, increasing$307.3 million, or 80.5%, from$381.7 millionat December31, 2016, of which$267.9 millionof deposits were acquired in the merger.
Stockholders' equity increased by$42.8 millionto$84.5 millionatJune 30, 2017, from$41.7 millionatDecember 31, 2016, of which$42.3 millionrelated to the merger. The Company's GAAP capital ratio was 9.74% as ofJune 30, 2017as compared to 8.80% as ofJune 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% atJune 30, 2017, compared to 8.19% atDecember 31, 2016. The tangible book value per common share was$7.89atJune 30, 2017, as compared to$8.35atDecember 31, 2016.
ASSET QUALITY
Non-performing assets ("NPAs") were$10.7 millionatJune 30, 2017, or 1.24% of total assets compared to$7.8 million, or 1.67% of total assets, at December31, 2016. NPAs atJune 30, 2017included$5.4 millionof other real estate owned (including$3.1 millionacquired in the merger), up from$2.5 millionat December31, 2016. Nonaccrual loans were$5.4 millionatJune 30, 2017(excludes purchased credit-impaired loans), or 0.83% of total loans, compared to$5.3 million, or 1.39%, at December31, 2016.
The provision for credit losses in the first half of 2017 was$758 thousandversus$148 thousandfor 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) atJune 30, 2017, compared to 1.00% at December31, 2016.
About Bay Banks of Virginia
Bay Banks ofVirginia, 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 ofLancasterare now combined and headquartered inRichmond, Virginia. With nineteen banking offices located throughout theRichmondmarket area, the Northern Neck region, the Tri-Cities area ofPetersburg,HopewellandColonial Heights,Middlesex CountyandSuffolk, 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, contactRandal R. Greene, President and Chief Executive Officer, at 800-435-1140 or.
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.
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") inthe 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
June 30, 2017
December 31, 2016 (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 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 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 Balance
Income/
Expense
Yield/ Cost
Average Balance
Income/
Expense
Yield/ 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
Balance
Income/
Expense
Yield/ Cost
Average
Balance
Income/
Expense
Yield/ 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.
SOURCE Bay Banks ofVirginia, Inc.
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