Parent Financial Statements

12 Months Ended

Dec. 31, 2018

Note 23. Parent Financial Statements

The following tables present condensed financial statements of Bay Banks of Virginia, Inc. for the periods stated.

CONDENSED BALANCE SHEETS	December 31, 2018		December 31, 2017
ASSETS
Cash and due from non-affiliated banks	$	15,631	$	24,475
Interest-earning deposits		155		609
Certificates of deposit		770		—
Investments in subsidiaries		109,747		96,539
Other assets		2,225		2,002
Total assets	$	128,528	$	123,625
LIABILITIES AND SHAREHOLDERS' EQUITY
Subordinated notes, net of unamortized issuance costs	$	6,893	$	6,877
Deferred compensation plan		972		901
Other borrowings		1,734		1,129
Other liabilities		1,453		164
Total liabilities		11,052		9,071
Total shareholders’ equity		117,476		114,554
Total liabilities and shareholders’ equity	$	128,528	$	123,625

	Year ended December 31,
CONDENSED STATEMENTS OF OPERATIONS	2018			2017
Interest income	$	—		$	2
Interest expense		512			481
Net interest expense		(512	)		(479	)
Net losses on disposition of other assets		(73	)		—
Other income		529			857
Noninterest income		456			857
Noninterest expense		1,659			1,752
Loss before income taxes and equity in undistributed earnings (losses) of subsidiaries		(1,715	)		(1,374	)
Income tax benefit		(212	)		(340	)
Loss before equity in undistributed earnings of subsidiaries		(1,503	)		(1,034	)
Equity in undistributed earnings (losses) of subsidiaries		5,381			(238	)
Net income (loss)	$	3,878		$	(1,272	)

	Year ended December 31,
CONDENSED STATEMENTS OF CASH FLOWS	2018			2017
Cash Flows from Operating Activities:
Net income (loss)	$	3,878		$	(1,272	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of debt issuance costs		16			17
Share-based compensation expense		102			199
Equity in undistributed (earnings) losses of subsidiaries		(5,381	)		238
Increase in other assets		(223	)		(324	)
Net change in deferred compensation plan		71			340
Increase (decrease) in other liabilities		1,291			(299	)
Net cash used in operating activities		(246	)		(1,101	)
Cash Flows from Investing Activities:
(Purchases) maturities of certificates of deposit		(770	)		1,240
Investment in subsidiaries		(8,000	)		(8,750	)
Net cash used in investing activities		(8,770	)		(7,510	)
Cash Flows from Financing Activities:
Dividends paid		—			(1,431	)
Stock options exercised		149			254
Director stock grant		125			—
(Purchase) issuance of stock, net		(556	)		32,803
ESOP loans acquired from VBC		—			911
Net cash (used in) provided by financing activities		(282	)		32,537
Net (decrease) increase in cash and due from banks (including interest-earning deposits)		(9,298	)		23,926
Cash and cash equivalents (including interest-earning deposits) at beginning of period		25,084			1,158
Cash and cash equivalents (including interest-earning deposits) at end of period	$	15,786		$	25,084