Bay Banks of Virginia, Inc. reported earnings results for the fourth quarter and Year Ended December 31, 2014. For the quarter, the company reported interest income of $3,796,000 compared to $3,357,000 for the same period a year ago. Net interest income was $3,231,000 compared to $2,698,000 for the same period a year ago. This improvement was primarily attributed to a $439,000 increase in interest income driven primarily by loan growth and a reduction in interest expense of $94,000 due primarily to lower interest rates on deposits and Federal Home Loan Bank borrowings. Net interest income after provision was $3,072,000 compared to $2,488,000 for the same period a year ago. Income before income taxes was $780,000 compared to $271,000 for the same period a year ago. Net income was $598,000 or $0.12 per basic and diluted share compared to $230,000 or $0.05 per basic and diluted share for the same period a year ago. Return on average equity was 6.11% compared to 2.49% for the same period a year ago. Return on average assets was 0.64% compared to 0.27% for the same period a year ago. Tangible book value per share was $7.68 as at December 31, 2014 against $7.24 as at December 31, 2013.

For the year, the company reported earnings were $1.8 million compared to $1.2 million for 2013. Earnings for the full year 2014 increased to $0.38 per share compared to $0.25 for 2013. Net interest income for 2014 increased by $1.3 million compared to 2013.  This improvement was driven by a $637,000 reduction in interest expense, a result of lower interest rates on time deposits and FHLB borrowings, plus an increase of $684,000 in interest income, due primarily to loan growth. 

For the quarter, the company reported net charge-offs was $105,000 compared to $262,000 for the same period a year ago.