PR Newswire
RICHMOND, Va., Oct. 30, 2018
RICHMOND, Va., Oct. 30, 2018 /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 ninth months ended September 30, 2018.
The company reported $1.03 billion of assets as of September 30, 2018 compared to $970.6 million as of December 31, 2017.
The company also reported net income of $1.0 million, or $0.08 per diluted share, for the third quarter of 2018 compared to $946 thousand, or $0.07 per diluted share, for the second quarter of 2018, and $742 thousand, or $0.07 per diluted share, for the third quarter of 2017. For the first nine months of 2018, the company reported net income of $3.1 million, or $0.24 per diluted share, compared to $1.1 million, or $0.14 per diluted share, for the first nine months of 2017. Costs incurred in connection with the company's merger with Virginia BanCorp, Inc. on April 1, 2017 (the "Merger") were $0 and $363 thousand for the three and nine months ended September 30, 2018, respectively, compared to $141 thousand and $1.1 million for the three and nine months ended September 30, 2017, respectively.
Randal R. Greene, President and Chief Executive Officer, commented: "Reaching $1 billion of assets is a major milestone for our company. Just a year and a half ago we merged with Virginia BanCorp creating an $830 million financial institution. We have experienced an asset growth rate of 23% over this period. In reviewing our results of the third quarter, we are beginning to realize the leverage of our larger balance sheet and the savings anticipated from our noninterest expense initiatives that we announced during the quarter. Earnings before both taxes and provision for loan losses improved to $1.7 million in the third quarter of 2018 from $795 thousand in the second quarter of 2018. Net loan growth of $88.3 million in the first nine months of the year was strong, particularly considering the run-off of nearly $50 million of purchased portfolio loans, including those acquired in the Merger."
Operating Results
Third Quarter 2018 compared to Second Quarter 2018
First Nine Months 2018 compared to First Nine Months 2017
Third Quarter 2018 compared to Third Quarter 2017
Balance Sheet
Asset Quality
Outlook
Greene concluded: "I believe at our size, $1 billion of assets, we are able to offer all the products needed by our customers and we are agile enough to respond quickly to and customize solutions for them. Our lending opportunities in the greater Richmond area continue to be strong, and we have a pipeline of opportunities in Hampton Roads as we have built a first-class team in that market. Core deposit generation is a significant focus area for us as it is an imperative to support our future growth. Another focus area is expense management. We are beginning to realize the benefits of our previously-announced noninterest expense initiatives, but we have more work to do in this area. I believe the results of closely managing expenses and our growing balance sheet will continue to deliver improving financial results."
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 production office, located throughout the greater Richmond area, the Northern Neck region, Middlesex County, the Tri-Cities area of Petersburg, Hopewell and Colonial Heights, Suffolk, and Virginia Beach, 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/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 tax and accounting rules, 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.
For further information, contact Randal R. Greene, President and Chief Executive Officer, at 844-404-9668 or [email protected].
1 See discussion of non-GAAP financial measures at the end of the Supplemental Financial Data tables that follow.
BAY BANKS OF VIRGINIA, INC. | |||||
Supplemental Financial Data (Unaudited) | |||||
CONSOLIDATED BALANCE SHEETS | |||||
September 30, 2018 | December 31, 2017 (1) | ||||
(Dollars in thousands, except share data) | (unaudited) | ||||
ASSETS | |||||
Cash and due from banks | $ 6,610 | $ 9,396 | |||
Interest-bearing deposits | 15,906 | 41,971 | |||
Certificates of deposit | 2,976 | 3,224 | |||
Federal funds sold | 197 | 6,961 | |||
Available-for-sale securities, at fair value | 81,215 | 77,153 | |||
Restricted securities | 6,750 | 5,787 | |||
Loans receivable, net of allowance for loan losses | |||||
of $7,287 and $7,770, respectively | 846,993 | 758,726 | |||
Loans held for sale | 0 | 1,651 | |||
Premises and equipment, net | 18,315 | 17,463 | |||
Accrued interest receivable | 3,060 | 3,194 | |||
Other real estate owned, net | 3,663 | 4,284 | |||
Bank owned life insurance | 19,147 | 18,773 | |||
Goodwill | 10,374 | 10,374 | |||
Mortgage servicing rights | 981 | 999 | |||
Core deposit intangible | 2,381 | 2,991 | |||
Other assets | 8,872 | 7,609 | |||
Total assets | $ 1,027,440 | $ 970,556 | |||
LIABILITIES | |||||
Noninterest-bearing deposits | $ 108,602 | $ 103,037 | |||
Savings and interest-bearing demand deposits | 330,690 | 299,820 | |||
Time deposits | 369,836 | 358,989 | |||
Total deposits | 809,128 | 761,846 | |||
Securities sold under repurchase agreements | 6,083 | 9,498 | |||
Federal Home Loan Bank advances | 80,000 | 70,000 | |||
Subordinated notes, net of issuance costs | 6,889 | 6,877 | |||
Other liabilities | 8,793 | 7,781 | |||
Total liabilities | 910,893 | 856,002 | |||
SHAREHOLDERS' EQUITY | |||||
Common stock ($5 par value; authorized - 30,000,000 shares; | |||||
outstanding - 13,238,716 and 13,203,605 shares, respectively) (2) | 66,194 | 66,018 | |||
Additional paid-in capital | 37,276 | 37,142 | |||
Unearned employee stock ownership plan shares | (1,006) | (1,129) | |||
Retained earnings | 16,775 | 13,679 | |||
Accumulated other comprehensive loss, net | (2,692) | (1,156) | |||
Total shareholders' equity | 116,547 | 114,554 | |||
Total liabilities and shareholders' equity | $ 1,027,440 | $ 970,556 | |||
(1) Derived from audited December 31, 2017 Consolidated Financial Statements. | ||||
(2) Preferred stock is authorized; however, none was outstanding as of September 30, 2018 and December 31, 2017. | ||||
BAY BANKS OF VIRGINIA, INC. | |||||
Supplemental Financial Data (Unaudited) - Continued | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
(unaudited) | For the three months ended | ||||
(Dollars in thousands, except per share data) | September 30, 2018 | June 30, 2018 | September 30, 2017 | ||
INTEREST INCOME | |||||
Loans, including fees | $ 10,126 | $ 9,745 | $ 8,874 | ||
Securities: | |||||
Taxable | 498 | 497 | 329 | ||
Tax-exempt | 119 | 117 | 116 | ||
Federal funds sold | 46 | 51 | 43 | ||
Interest-bearing deposit accounts | 64 | 80 | 116 | ||
Certificates of deposit | 17 | 18 | 18 | ||
Total interest income | 10,870 | 10,508 | 9,496 | ||
INTEREST EXPENSE | |||||
Deposits | 2,027 | 1,796 | 1,292 | ||
Securities sold under repurchase agreements | 3 | 4 | 5 | ||
Subordinated notes | 128 | 128 | 118 | ||
Federal Home Loan Bank advances | 441 | 386 | 279 | ||
Total interest expense | 2,599 | 2,314 | 1,694 | ||
Net interest income | 8,271 | 8,194 | 7,802 | ||
Provision for (recovery of) loan losses | 509 | (348) | 1,075 | ||
Net interest income after provision for loan losses | 7,762 | 8,542 | 6,727 | ||
NON-INTEREST INCOME | |||||
Income from fiduciary activities | 151 | 198 | 217 | ||
Service charges and fees on deposit accounts | 250 | 152 | 238 | ||
Non-deposit product income | 144 | 283 | 105 | ||
Interchange fees, net | 106 | 124 | 101 | ||
Other service charges and fees | 31 | 30 | 40 | ||
Secondary market lending income | 150 | 244 | 157 | ||
Increase in cash surrender value of bank owned life insurance | 123 | 124 | 133 | ||
Net gain on disposition of other assets | 51 | - | - | ||
Other | (12) | 9 | 17 | ||
Total non-interest income | 994 | 1,164 | 1,008 | ||
NON-INTEREST EXPENSE | |||||
Salaries and employee benefits | 4,022 | 4,273 | 3,687 | ||
Occupancy | 962 | 882 | 811 | ||
Data processing | 556 | 837 | 299 | ||
Bank franchise tax | 178 | 178 | 141 | ||
Telecommunications | 132 | 131 | 111 | ||
FDIC assessments | 151 | 187 | 119 | ||
Foreclosed property | 45 | 53 | 45 | ||
Consulting | 228 | 345 | 58 | ||
Advertising and marketing | 126 | 153 | 100 | ||
Directors' fees | 146 | 69 | 135 | ||
Audit and accounting | 236 | 240 | 121 | ||
Legal | 123 | 119 | 9 | ||
Merger related | - | - | 141 | ||
Core deposit intangible amortization | 196 | 203 | 227 | ||
Net other real estate owned (gains) losses | (112) | 84 | 9 | ||
Other | 543 | 809 | 707 | ||
Total non-interest expense | 7,532 | 8,563 | 6,720 | ||
Income before income taxes | 1,224 | 1,143 | 1,015 | ||
Income tax expense | 198 | 197 | 273 | ||
Net income | $ 1,026 | $ 946 | $ 742 | ||
Basic and diluted earnings per share | $ 0.08 | $ 0.07 | $ 0.07 | ||
BAY BANKS OF VIRGINIA, INC. | |||
Supplemental Financial Data (Unaudited) - Continued | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(unaudited) | For the nine months ended | ||
(Dollars in thousands, except per share data) | September 30, 2018 | September 30, 2017 | |
INTEREST INCOME | |||
Loans, including fees | $ 29,853 | $ 21,588 | |
Securities: | |||
Taxable | 1,392 | 946 | |
Tax-exempt | 356 | 344 | |
Federal funds sold | 171 | 77 | |
Interest-bearing deposit accounts | 242 | 176 | |
Certificates of deposit | 54 | 55 | |
Total interest income | 32,068 | 23,186 | |
INTEREST EXPENSE | |||
Deposits | 5,427 | 2,999 | |
Federal funds purchased | - | 10 | |
Securities sold under repurchase agreements | 10 | 12 | |
Subordinated notes | 384 | 354 | |
Federal Home Loan Bank advances | 1,140 | 681 | |
Total interest expense | 6,961 | 4,056 | |
Net interest income | 25,107 | 19,130 | |
Provision for loan losses | 481 | 1,833 | |
Net interest income after provision for loan losses | 24,626 | 17,297 | |
NON-INTEREST INCOME | |||
Income from fiduciary activities | 596 | 691 | |
Service charges and fees on deposit accounts | 538 | 696 | |
Non-deposit product income | 558 | 300 | |
Interchange fees, net | 221 | 314 | |
Other service charges and fees | 91 | 75 | |
Secondary market lending income | 528 | 358 | |
Increase in cash surrender value of bank owned life insurance | 374 | 341 | |
Net gains on sale of available-for-sale securities | - | 2 | |
Net losses on disposition of other assets | (18) | - | |
Gain on curtailment of post-retirement benefit plan | 352 | - | |
Other | 90 | 169 | |
Total non-interest income | 3,330 | 2,946 | |
NON-INTEREST EXPENSE | |||
Salaries and employee benefits | 12,407 | 9,832 | |
Occupancy | 2,639 | 1,943 | |
Data processing | 1,941 | 897 | |
Bank franchise tax | 531 | 359 | |
Telecommunications | 369 | 215 | |
FDIC assessments | 521 | 315 | |
Foreclosed property | 110 | 114 | |
Consulting | 957 | 209 | |
Advertising and marketing | 347 | 227 | |
Directors' fees | 382 | 466 | |
Audit and accounting | 839 | 366 | |
Legal | 380 | 95 | |
Merger related | 363 | 1,126 | |
Core deposit intangible amortization | 610 | 461 | |
Net other real estate owned (gains) losses | (169) | 102 | |
Other | 1,988 | 1,988 | |
Total non-interest expense | 24,215 | 18,715 | |
Income before income taxes | 3,741 | 1,528 | |
Income tax expense | 645 | 406 | |
Net income | $ 3,096 | $ 1,122 | |
Basic and diluted earnings per share | $ 0.24 | $ 0.14 | |
Bay Banks of Virginia, Inc. | ||||||||
Supplemental Financial Data (Unaudited) - Continued | ||||||||
As of and for the Three Months Ended | As of and for the Nine Months Ended | |||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||
(Dollars in thousands, except per share amounts) | 2018 | 2018 | 2018 | 2017 | 2017 | 2018 | 2017 | |
Select Consolidated Balance Sheet Data | ||||||||
Total assets | $ 1,027,440 | $ 983,216 | $ 994,676 | $ 970,556 | $ 959,936 | |||
Cash, interest-bearing deposits and federal funds sold | 22,713 | 38,526 | 63,696 | 58,328 | 75,223 | |||
Available-for-sale securities, at fair value | 81,215 | 74,322 | 75,434 | 77,153 | 71,893 | |||
Loans: | ||||||||
Mortgage loans on real estate | 682,321 | 644,202 | 624,424 | 609,637 | 594,761 | |||
Commercial and industrial | 144,118 | 124,563 | 129,225 | 114,093 | 99,637 | |||
Consumer loans | 27,920 | 32,767 | 37,011 | 42,566 | 48,640 | |||
Loans receivable | 854,359 | 801,532 | 790,660 | 766,296 | 743,038 | |||
Unamortized net deferred loan (fees) costs | (79) | 24 | 228 | 200 | 1,590 | |||
Allowance for loan losses (ALL) | (7,287) | (7,113) | (7,923) | (7,770) | (4,920) | |||
Net loans | 846,993 | 794,443 | 782,965 | 758,726 | 739,708 | |||
Loans held for sale | - | 669 | 414 | 1,651 | 162 | |||
Other real estate owned, net | 3,663 | 3,501 | 2,593 | 4,284 | 5,159 | |||
Total liabilities | $ 910,893 | $ 867,492 | $ 879,757 | $ 856,002 | $ 842,148 | |||
Deposits: | ||||||||
Noninterest-bearing demand deposits | 108,602 | 108,943 | 124,572 | 103,037 | 99,531 | |||
Savings and interest-bearing deposits | 330,690 | 296,206 | 299,216 | 299,820 | 297,150 | |||
Time deposits | 369,836 | 369,917 | 373,163 | 358,989 | 338,732 | |||
Total deposits | 809,128 | 775,066 | 796,951 | 761,846 | 735,413 | |||
Securities sold under repurchase agreements | 6,083 | 7,008 | 6,551 | 9,498 | 17,091 | |||
Federal Home Loan Bank advances | 80,000 | 70,000 | 60,000 | 70,000 | 75,000 | |||
Subordinated notes, net of issuance costs | 6,889 | 6,885 | 6,881 | 6,877 | 6,873 | |||
Shareholders' equity | 116,547 | 115,724 | 114,919 | 114,554 | 117,788 | |||
Condensed Consolidated Statements of Operations | ||||||||
Interest income | $ 10,870 | $ 10,508 | $ 10,692 | $ 10,514 | $ 9,496 | $ 32,068 | $ 23,186 | |
Interest expense | 2,599 | 2,314 | 2,048 | 1,945 | 1,694 | 6,961 | 4,056 | |
Net interest income | 8,271 | 8,194 | 8,644 | 8,569 | 7,802 | 25,107 | 19,130 | |
Provision for (recovery of) loan losses | 509 | (348) | 320 | 3,101 | 1,075 | 481 | 1,833 | |
Non-interest income | 994 | 1,164 | 1,170 | 733 | 1,008 | 3,330 | 2,946 | |
Non-interest expense | 7,532 | 8,563 | 8,120 | 8,204 | 6,720 | 24,215 | 18,715 | |
Income (loss) before taxes | 1,224 | 1,143 | 1,374 | (2,003) | 1,015 | 3,741 | 1,528 | |
Income tax expense | 198 | 197 | 250 | 391 | 273 | 645 | 406 | |
Net income (loss) | $ 1,026 | $ 946 | $ 1,124 | $ (2,394) | $ 742 | $ 3,096 | $ 1,122 | |
Bay Banks of Virginia, Inc. | |||||||||
Supplemental Financial Data (Unaudited) - Continued | |||||||||
As of and for the Three Months Ended | As of and for the Nine Months Ended | ||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||
(Dollars in thousands, except per share amounts) | 2018 | 2018 | 2018 | 2017 | 2017 | 2018 | 2017 | ||
Per Share Data | |||||||||
Basic earnings (loss) per share | $ 0.08 | $ 0.07 | $ 0.09 | $ (0.18) | $ 0.07 | $ 0.24 | $ 0.14 | ||
Diluted earnings (loss) per share | 0.08 | 0.07 | 0.09 | (0.18) | 0.07 | 0.24 | 0.14 | ||
Dividends per share | - | - | - | 0.04 | 0.04 | - | 0.08 | ||
Book value per share | 8.80 | 8.75 | 8.69 | 8.68 | 8.93 | ||||
Tangible book value per share (1) | 7.88 | 7.81 | 7.74 | 7.71 | 7.98 | ||||
Shares outstanding at end of period | 13,238,716 | 13,226,096 | 13,223,096 | 13,203,605 | 13,193,983 | 13,238,716 | 13,193,983 | ||
Weighted average shares outstanding, basic | 13,080,372 | 13,059,604 | 13,038,593 | 13,036,057 | 10,488,227 | 13,059,845 | 8,175,431 | ||
Weighted average shares outstanding, diluted | 13,142,549 | 13,126,419 | 13,106,214 | 13,108,400 | 10,557,623 | 13,128,715 | 8,242,700 | ||
Performance Ratios (tax-equivalent basis): | |||||||||
Yield on average interest-earning assets | 4.66% | 4.61% | 4.74% | 4.69% | 4.40% | 4.69% | 4.50% | ||
Cost of funds | 1.19% | 1.08% | 0.95% | 0.92% | 0.83% | 1.08% | 0.81% | ||
Cost of deposits | 1.03% | 0.93% | 0.83% | 0.81% | 0.72% | 0.93% | 0.68% | ||
Net interest spread | 3.30% | 3.37% | 3.64% | 3.64% | 3.43% | 3.46% | 3.58% | ||
Net interest margin (NIM) | 3.57% | 3.60% | 3.83% | 3.82% | 3.62% | 3.67% | 3.72% | ||
NIM, excluding acquisition accounting adjustments (1) | 3.40% | 3.34% | 3.58% | 3.31% | 3.39% | 3.44% | 3.51% | ||
Average interest-earnings assets to total average assets | 93.45% | 92.37% | 92.10% | 93.30% | 94.99% | 93.40% | 92.17% | ||
Return on average assets (annualized) | 0.41% | 0.38% | 0.46% | -0.99% | 0.32% | 0.42% | 0.20% | ||
Return on average equity (annualized) | 3.55% | 3.28% | 3.92% | -8.24% | 3.10% | 3.61% | 2.03% | ||
Merger related expense | $ - | $ - | $ 363 | $ 850 | $ 141 | $ 363 | $ 1,126 | ||
Efficiency ratio | 81.3% | 91.5% | 82.7% | 88.2% | 76.3% | 85.2% | 84.8% | ||
Average assets | 994,209 | 988,946 | 982,616 | 965,246 | 913,664 | 980,886 | 751,266 | ||
Average interest-earning assets | 929,111 | 913,486 | 904,991 | 900,617 | 867,853 | 916,168 | 692,406 | ||
Average interest-bearing liabilities | 761,986 | 747,227 | 747,813 | 742,043 | 715,878 | 752,518 | 582,731 | ||
Average shareholders' equity | 115,454 | 115,321 | 114,736 | 116,171 | 95,650 | 114,478 | 73,827 | ||
Shareholders' equity to total assets ratio | 11.34% | 11.77% | 11.55% | 11.80% | 12.27% | ||||
Asset Quality Data and Ratios: | |||||||||
Nonaccrual loans | $ 4,204 | $ 3,474 | $ 6,892 | $ 6,496 | $ 4,799 | ||||
Loans past due 90 days or more and still accruing (excludes purchased credit-impaired loans) | - | - | - | 48 | - | ||||
Other real estate owned, net | 3,663 | 3,501 | 2,593 | 4,284 | 5,159 | ||||
Total non-performing assets | 7,867 | 6,975 | 9,485 | 10,828 | 9,958 | ||||
Net charge-offs (recoveries) | 335 | 462 | 167 | 948 | 397 | ||||
Net charge-offs to average loans (quarter-to-date annualized) | 0.17% | 0.23% | 0.09% | 0.50% | 0.22% | ||||
Total non-performing assets to total assets | 0.77% | 0.71% | 0.95% | 1.11% | 1.04% | ||||
Gross loans to total assets | 1.82% | 81.52% | 79.49% | 78.95% | 77.40% | ||||
ALL to gross loans | 0.85% | 0.89% | 1.00% | 0.00% | 0.00% | ||||
ALL plus acquisition accounting adjustments (discounts) on acquired loans to gross loans (1) | 1.35% | 1.46% | 1.65% | 0.00% | 0.00% | ||||
(1) Non-GAAP financial measure. See GAAP to Non-GAAP financial measure reconciliation at the end of the |
Supplemental Financial Data tables that follow. |
Bay Banks of Virginia, Inc. | ||||||||||
Supplemental Financial Data (Unaudited) - Continued | ||||||||||
As of and for the Three Months Ended | As of and for the Nine Months Ended | |||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||
(Dollars in thousands, except per share amounts) | 2018 | 2018 | 2018 | 2017 | 2017 | 2018 | 2017 | |||
Reconciliation of Non-GAAP Financial Measures (1) | ||||||||||
NIM, excluding acquisition accounting adjustments | ||||||||||
Interest income | $ 10,870 | $ 10,508 | $ 10,692 | $ 10,514 | $ 9,496 | $ 32,068 | $ 23,186 | |||
Add: tax-equivalent yield adjustment for tax-exempt securities (b) | 30 | 31 | 32 | 21 | 60 | 95 | 177 | |||
Less: accretion of discounts on acquired loans | 357 | 547 | 503 | 1,047 | 409 | 1,407 | 860 | |||
Interest income, adjusted | 10,543 | 9,992 | 10,221 | 9,488 | 9,147 | 30,756 | 22,503 | |||
Average interest-earning assets | $ 929,111 | $ 913,486 | $ 904,991 | $ 900,617 | $ 867,853 | $ 916,168 | $ 692,406 | |||
Yield on interest-earning assets, excluding accretion of discounts on acquired loans (annualized) | 4.54% | 4.38% | 4.52% | 4.21% | 4.22% | 4.48% | 4.33% | |||
Interest expense | $ 2,599 | $ 2,314 | $ 2,048 | $ 1,944 | $ 1,694 | $ 6,961 | $ 4,056 | |||
Add: amortization of premium on acquired time deposits | 40 | 42 | 68 | 88 | 103 | 150 | 220 | |||
Interest expense, adjusted | 2,639 | 2,356 | 2,116 | 2,032 | 1,797 | 7,111 | 4,276 | |||
Net interest income, excluding acquisition accounting adjustments | 7,904 | 7,637 | 8,105 | 7,456 | 7,350 | 23,645 | 18,227 | |||
Average interest-bearing liabilities | $ 761,986 | $ 747,227 | $ 747,813 | $ 742,043 | $ 715,878 | $ 752,518 | $ 582,731 | |||
Cost of interest-bearing liabilities, excluding amortization of premium on acquired time deposits (annualized) | 1.39% | 1.26% | 1.13% | 1.10% | 1.00% | 1.26% | 0.98% | |||
NIM, excluding acquisition accounting adjustments | 3.40% | 3.34% | 3.58% | 3.31% | 3.39% | 3.44% | 3.51% | |||
ALL plus discounts on acquired loans to gross loans | ||||||||||
Allowance for loan losses | $ 7,287 | $ 7,113 | $ 7,923 | $ 7,770 | $ 4,920 | |||||
Add: discounts on acquired loans | 4,280 | 4,655 | 5,212 | 5,792 | 5,375 | |||||
ALL plus discounts on acquired loans | 11,567 | 11,768 | 13,135 | 13,562 | 10,295 | |||||
Gross loans + discounts on acquired loans | $ 858,560 | $ 806,211 | $ 796,100 | $ 771,459 | $ 745,083 | |||||
ALL plus discounts on acquired loans to gross loans | 1.35% | 1.46% | 1.65% | 1.76% | 1.38% | |||||
Tangible book value per share | ||||||||||
Total shareholders' equity | $ 116,547 | $ 115,724 | $ 114,919 | $ 114,554 | $ 117,788 | |||||
Less: intangible assets, net of deferred tax liability on core deposit intangible (b) | 12,255 | 12,409 | 12,570 | 12,737 | 12,492 | |||||
Tangible shareholders' equity | $ 104,292 | $ 103,316 | $ 102,350 | $ 101,818 | $ 105,297 | |||||
Shares outstanding at end of period | 13,238,716 | 13,226,096 | 13,223,096 | 13,203,605 | 13,193,983 | |||||
Tangible book value per share | $ 7.88 | $ 7.81 | $ 7.74 | $ 7.71 | $ 7.98 | |||||
(a) Excludes mortgage servicing rights. | |||||||||||
(b) Assumes a federal income tax rate of 21% for the 2018 periods and for the three months-ended December 31, 2017 and a 34% federal income tax rate for the other 2017 periods | |||||||||||
ended presented. | |||||||||||
(1) Set forth above are calculations of each of the non-GAAP (generally accepted accounting principles) financial measures included in the Supplemental Financial Data tables. | |||||||||||
NIM, excluding acquisition accounting adjustments, ALL plus discounts on acquired loans to gross loans, and tangible book value per share are supplemental financial | |||||||||||
measures that are not required nor presented in accordance with GAAP. Management believes ALL plus discounts on acquired loans as a percentage of gross loans and | |||||||||||
tangible book value per share are meaningful because they are measures management uses to assess asset quality and capital levels, respectively. Management believes that NIM, | |||||||||||
excluding acquisition accounting adjustments, is meaningful because management uses it to assess the financial performance of the company. | |||||||||||
Calculations of these non-GAAP financial measures may not be comparable to the calculation of similarly titled measures reported by other companies. |
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SOURCE Bay Banks of Virginia, Inc.
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