Condensed Financial Information of Parent Company (Tables)

12 Months Ended

Dec. 31, 2016

Condensed Balance Sheets

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

(Dollars in thousands)
Condensed Balance Sheets	December 31, 2016		December 31, 2015
Assets
Cash and due from non-affiliated banks	$	990	$	149
Interest-bearing deposits		168		1,902
Certificates of deposit		1,240		2,480
Investments in subsidiaries		45,510		41,591
Other assets		1,680		1,920
Total assets	$	49,588	$	48,042
Liabilities and Shareholders’ Equity
Liabilities
Subordinated debt	$	6,860	$	6,844
Deferred directors’ compensation		561		477
Other liabilities		462		1,152
Total liabilities		7,883		8,473
Total shareholders’ equity		41,705		39,569
Total liabilities and shareholders’ equity	$	49,588	$	48,042

Condensed Income Statements

(Dollars in thousands)
Condensed Income Statements	Years ended December 31,
	2016			2015
Interest income	$	17		$	6
Interest expense		472			279
Net interest expense		(455	)		(273	)
Non-interest income		678			629
Non-interest expense		1,261			839
Loss before income taxes and equity in undistributed earnings of subsidiaries		(1,038	)		(483	)
Income tax benefit		(194	)		(28	)
Loss before equity in undistributed earnings of subsidiaries		(844	)		(455	)
Equity in undistributed earnings of subsidiaries		3,379			821
Net income	$	2,535		$	366

Condensed Statements of Cash Flows

(Dollars in thousands)
Condensed Statements of Cash Flows	Years ended December 31,
	2016			2015
Cash Flows from Operating Activities:
Net income	$	2,535		$	366
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of debt issuance costs		16			10
Stock-based compensation		60			63
Equity in undistributed earnings of subsidiaries		(3,379	)		(821	)
Decrease (increase) in other assets		240			(187	)
Net change in deferred directors’ compensation		83			63
(Decrease) increase in other liabilities		(688	)		1
Net cash used in operating activities		(1,133	)		(505	)
Cash Flows from Investing Activities:
Maturities (purchases) of certificates of deposit		1,240			(2,480	)
Investment in subsidiaries		(1,000	)		(4,000	)
Net provided by (cash used) in investing activities		240			(6,480	)
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		(893	)		(394	)
Cash and cash equivalents at January 1		2,051			2,445
Cash and cash equivalents at December 31	$	1,158		$	2,051