Condensed Financial Information of Parent Company

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company

Note 23. Condensed Financial Information of Parent Company

Financial information pertaining only to Bay Banks of Virginia, Inc. is as follows:

(Dollars in thousands)
	December 31, 2015		December 31, 2014
Condensed Balance Sheets
Assets
Cash and due from non-affiliated banks	$	149	$	2,445
Interest-bearing deposits		1,902		—
Securities available-for-sale, at fair value		2,480		—
Investments in subsidiaries		41,591		35,625
Other assets		1,920		1,732
Total assets	$	48,042	$	39,802
Liabilities and Shareholders’ Equity
Liabilities
Subordinated debt	$	6,844	$	—
Deferred directors’ compensation		477		414
Other liabilities		1,152		150
Total liabilities		8,473		564
Total shareholders’ equity		39,569		39,238
Total liabilities and shareholders’ equity	$	48,042	$	39,802

(Dollars in thousands)
	Years ended December 31,
	2015			2014
Condensed Income Statements
Interest income	$	6		$	—
Interest expense		279			—
Net interest expense		(273	)		—
Non-interest income		629			641
Non-interest expense		839			622
(Loss) income before income taxes and equity in undistributed earnings of subsidiaries		(483	)		19
Income tax (benefit) expense		(28	)		5
Income (loss) before equity in undistributed earnings of subsidiaries		(455	)		14
Equity in undistributed earnings of subsidiaries		821			1,816
Net income	$	366		$	1,830

(Dollars in thousands)
	Years ended December 31,
	2015			2014
Condensed Statements of Cash Flows
Cash Flows from Operating Activities:
Net income	$	366		$	1,830
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of debt issuance costs		10			—
Stock-based compensation		63			20
Equity in undistributed earnings of subsidiaries		(821	)		(1,816	)
Increase in other assets		(187	)		(467	)
Net change in deferred directors’ compensation		63			77
Increase in other liabilities		1			17
Net cash used in operating activities		(505	)		(339	)
Cash Flows from Investing Activities:
Purchase of securities available-for-sale		(2,480	)		—
Investment in subsidiaries		(4,000	)		(1,100	)
Net cash used in investing activities		(6,480	)		(1,100	)
Cash Flows from Financing Activities:
Proceeds from the issuance of subordinated debt		6,834			—
Repurchase of common stock		(243	)		—
Net cash provided by financing activities		6,591			—
Net decrease in cash and due from banks		(394	)		(1,439	)
Cash and cash equivalents at January 1		2,445			3,884
Cash and cash equivalents at December 31	$	2,051		$	2,445

As of December 31, 2015, the Company had accrued a capital contribution to the Bank of $1.0 million. This accrual was settled on January 4, 2016.