PR Newswire
RICHMOND, Va., April 28, 2017
RICHMOND, Va., April 28, 2017 /PRNewswire/ -- Bay Banks of Virginia, Inc. (OTCQB: BAYK) (the "Company") reported a loss of $177,000 for the quarter ended March 31, 2017 compared to earnings of $524,000 for the same quarter in 2016.
"We are very proud to report that we met our goal of $500 million in total assets during the first quarter. We have also completed our merger with Virginia BanCorp as of April 1, 2017. Our combined banks are now operating as Virginia Commonwealth Bank, which has made us the fifth largest community bank headquartered in Richmond," said Randal R. Greene, President and Chief Executive Officer. He continued, "Customers will receive communications as we prepare for the systems integration. The net loss in the first quarter was anticipated as merger-related expenses were recognized as well as our investment associated with expansion of our Richmond market operations."
HIGHLIGHTS FOR THE QUARTER
FIRST QUARTER NET INCOME
The increase in net interest income for the first quarter of 2017 compared to the first quarter of 2016 was driven by an increase in interest income of $444,000 while interest expense increased by $24,000. The improved interest income was driven by growth in loan balances and improved yields on investment securities, which offset reductions in loan yields.
Non-interest income for the first quarter of 2017 was unchanged as compared to the same period last year and amounted to $857,000. This amount is down as compared to $1.3 million for the fourth quarter of 2016, which was primarily due to reduced net gains from the sale of investment securities and loans combined with losses associated with other real estate owned.
Non-interest expense totaled $4.8 million and $3.7 million for the first quarter of 2017 and 2016, respectively. Merger related expenses during the first quarter totaled approximately $300,000, plus $171,000 in severance costs. Other changes in non-interest expense included a $605,000 increase in salaries and benefits due primarily to $250,000 in performance-related and hiring bonuses, the aforementioned $171,000 of severance expense associated with the merger, $102,000 primarily for new hires in the Richmond market, $69,000 in deferred compensation expense and $42,000 in residential lending commissions as the result of loan growth.
NET INTEREST MARGIN
The improvement in net interest margin is primarily due to increases in yields in the investment portfolio and higher loan fees. On a linked-quarter basis, the increased cost of funds was due to tactical use of FHLB advances to support loan growth, while improvements in yields on earning assets offset the increased cost of funds.
ASSET QUALITY
During the first quarter of 2017, non-performing assets, excluding troubled debt restructures (TDRs), increased by $462,000 to $8.3 million, or 1.6% of total assets. Classified assets increased by $393,000 during the same period to $12.1 million, or 26.9% of tier 1 capital plus the allowance for loan losses. Net loan charge-offs totaled $60,000 during the first quarter of 2017, or 0.06% of average total loans, compared to 0.02% during the first quarter of 2016.
BALANCE SHEET AND CAPITAL
During the first quarter of 2017, total assets increased by $17.5 million. This was due to an increase of $19.9 million in the loan portfolio which was funded mainly by an increase of $25.0 million in FHLB advances.
For additional details on the Company's financial results for the quarter ended March 31, 2017, please refer to the Selected Financial Data attached.
MERGER
On April 1, 2017, the Company and Virginia BanCorp, Inc. ("Virginia BanCorp"), a bank holding company conducting substantially all of its operations through its subsidiary Virginia Commonwealth Bank, completed a merger (the "Company Merger"). The Company is the surviving corporation and shareholders of Virginia BanCorp received 1.178 shares of the Company's common stock for each share of Virginia BanCorp common stock they owned immediately prior to the Company Merger, for a total of 4,586,397 shares of the Company's common stock valued at approximately $40.5 million. As of the closing of the Company Merger, the Company's legacy shareholders owned approximately 51% of the outstanding stock of the Company and former Virginia BanCorp shareholders owned approximately 49% of the outstanding stock of the Company.
Immediately after the Company Merger, Virginia Commonwealth Bank merged with and into the Bank of Lancaster (the "Bank Merger"). Immediately after the Bank Merger, Bank of Lancaster changed its name to Virginia Commonwealth Bank. Banking operations are being consolidated and are expected to be completed during the fourth quarter of 2017.
Combined merger-related costs during the first quarter of 2017 were $808,000, and accumulated combined merger-related costs including the fourth quarter of 2016 were $1.8 million. Annual non-interest cost savings of the combined companies are anticipated to be approximately 14% from 2016 levels.
About Bay Banks of Virginia, Inc.
Bay Banks of Virginia, Inc. is the bank holding company for Virginia Commonwealth Bank and Bay Trust Company. Founded in the 1930's, Virginia Commonwealth Bank and former Bank of Lancaster, are now combined and headquartered in Richmond, Virginia. With 19 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 wide variety of financial services, including retail and commercial banking, investment services, and mortgage banking. Bay Trust Company provides management services for personal and corporate trusts, including estate planning, estate settlement and trust administration.
For further information, contact Randal R. Greene, Chief Executive Officer, at 800-435-1140 or inquiries@baybanks.com.
This report 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.
Selected Financial Data | | | | | |
Quarters ended: | 3/31/2017 | 12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 |
(in thousands except for per share and share amounts) | | | | | |
BALANCE SHEET | | | | | |
Assets | $ 504,207 | $ 486,710 | $ 468,274 | $ 468,339 | $ 447,837 |
Loans receivable | 405,261 | 385,400 | 368,563 | 351,302 | 349,742 |
Deposits | 382,500 | 381,718 | 377,975 | 379,029 | 356,613 |
Loans to deposits | 106.0% | 101.0% | 97.5% | 92.7% | 98.1% |
| | | | | |
CAPITAL | | | | | |
Common equity | $ 41,617 | $ 41,705 | $ 41,948 | $ 41,212 | $ 40,440 |
Regulatory capital | 51,826 | 51,726 | 51,069 | 50,017 | 49,983 |
Total common equity to assets | 8.25% | 8.57% | 8.96% | 8.80% | 9.03% |
Tangible common equity to tangible assets (non-GAAP)* | 7.93% | 8.24% | 8.61% | 8.45% | 8.67% |
Tier 1 Leverage Ratio | 8.41% | 8.67% | 8.60% | 8.74% | 8.80% |
| | | | | |
PROFITABILITY MEASURES | | | | | |
Interest Income | $ 4,798 | $ 4,635 | $ 4,555 | $ 4,392 | $ 4,354 |
Interest Expense | 914 | 865 Werbung Mehr Nachrichten zur Bay Banks Of Virginia Aktie kostenlos abonnieren
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