Business Combination (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Fair Value of Assets Acquired and Liabilities Assumed

The following table details the total consideration paid by the Company on April 1, 2017, in connection with the acquisition of Virginia BanCorp, the fair value of the assets acquired and liabilities assumed, and the resulting goodwill.

			Fair Value
	As Recorded		Adjustments			As Recorded
	by Virginia BanCorp		and Reclassifications			by the Company
Consideration paid:
Bay Banks of Virginia, Inc. common stock						$	42,247
Identifiable assets acquired:
Cash and due from banks	$	2,356	$	—		$	2,356
Interest-bearing deposits		12,342		—			12,342
Securities available-for-sale		22,088		—			22,088
Restricted securities		1,543		—			1,543
Loans receivable		272,479		(62,068	)		210,411
Loans held for sale		—		55,648			55,648
Deferred income taxes		1,325		255			1,580
Premises and equipment		3,333		2,703			6,036
Accrued interest receivable		1,253		(24	)		1,229
Other real estate owned		3,113		—			3,113
Core deposit intangible		—		3,670			3,670
Bank owned life insurance		8,430		—			8,430
Mortgage servicing rights		324		—			324
Other assets		365		—			365
Total identified assets acquired		328,951		184			329,135
Identifiable liabilities assumed:
Noninterest-bearing deposits		21,119		—			21,119
Savings and interest-bearing demand deposits		124,640		—			124,640
Time deposits		121,437		733			122,170
Federal Home Loan Bank advances		25,000		—			25,000
Other liabilities		1,525		—			1,525
Total identifiable liabilities assumed		293,721		733			294,454
Total identifiable assets assumed	$	35,230	$	(549	)	$	34,681
Goodwill resulting from acquisition						$	7,566

Schedule of Unaudited Pro Forma Financial Information

Operational cost savings and other efficiencies expected to be achieved by the Company due to the Merger are also not reflected in the unaudited pro forma amounts.

	For the Six Months Ended June 30, 2017
Net interest income	$	11,845
Net income		1,464

Schedule of Impact of Certain Acquisition Accounting Adjustments

The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments to assets acquired and liabilities assumed from Virginia BanCorp had the following impact on the consolidated statements of operations for the periods presented below.

	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
Loans (1)	$	547		$	1,051
Core deposit intangible (2)		(203	)		(414	)
Time deposits (3)		42			110
Depreciation (4)		(10	)		(20	)
Net impact to income before income taxes	$	376		$	727

(1)	Loan discount accretion is included in loan interest income, including fees, in the consolidated statements of operations.

(2)	CDI amortization is included in other expense in noninterest expense in the consolidated statements of operations.

(3)	Time deposit premium amortization is included in deposits in interest expense in the consolidated statements of operations.

(4)	Depreciation on the fair value adjustment of fixed assets is included in occupancy expense in noninterest expense in the consolidated statements of operations.