UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) December 17, 1999
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BAY BANKS OF VIRGINIA, INC.
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(Exact Name of Registrant as Specified in Charter)
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Virginia 0-22955 54-1838100
(State or Other Jurisdiction of (Commission File Number) (IRS Employer Identification No.)
Incorporation)
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100 S. Main Street, Kilmarnock, Virginia 22482
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (804) 435-1171
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N/A
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
On December 17, 1999, the Registrant announced that its Board of
Directors approved on November 30, 1999, a share repurchase program for its
common stock. The Board authorized the Registrant to repurchase up to 25,000
shares of common stock from time to time based on, among other things, market
price and share availability.
A copy of the press release relating to the announcement is attached as
an exhibit hereto.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) FINANCIAL STATEMENTS OF BUSINESSES ACQUIRED.
Not applicable.
(b) PRO FORMA FINANCIAL INFORMATION.
Not applicable.
(c) EXHIBITS.
99.1 Press Release, dated December 17, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BAY BANKS OF VIRGINIA, INC.
By: /s/ Austin L. Roberts, III
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Austin L. Roberts, III
President and CEO
December 17, 1999
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EXHIBIT INDEX
Number Description of Exhibit
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99.1 Press Release, dated December 17, 1999.
BAY BANKS INCREASES DIVIDEND FOR 28th CONSECUTIVE YEAR (unaudited)
The Board of Directors of Bay Banks of Virginia, Inc., Bank of
Lancaster's Holding Company, at its meeting held November 30, 1999 declared a
fourth quarterly cash dividend of 21 cents per share, an increase of two cents
over the dividend paid for the first three quarters in 1999. This dividend will
be paid on December 17, 1999 to Stockholders of record December 10, 1999.
Bay Banks President Austin L. Roberts, III announced that this dividend
reflects an 11.4% increase over the prior quarter's dividend. Roberts stated
that the increase is an indication of the Board's continued confidence in the
future of Bay Banks of Virginia and its subsidiaries, Bank of Lancaster and Bay
Trust Company. Roberts also noted that "this action represents the 28th
consecutive year of increased dividends paid to our Stockholders."
The fourth quarterly dividend will be paid on approximately 1,164,207
shares for a total of $244,483, bringing the total 1999 dividend to $910,588.
This compares to $809,676 paid in 1998 and $723,194 paid in 1997.
The Board of Directors at the November 30th meeting also authorized the
purchase of up to 25,000 shares of the Company's common stock. Management
anticipates such purchases will occur over an extended period of time.
In making these announcements, Roberts stated that "1999 has been a
very good year for our organization. Through the first three quarters of the
year, income levels are up 16% over the same period in 1998. Checking accounts
and Money Market Accounts we feel are our core accounts and they are up 14% and
9% respectively over the similar period for the previous year."
Roberts stated that the Bank has also seen excellent growth in loan
volume, with the best loan production year in its history. He noted, "we are
currently at $125 Million; a year ago this time we were just over $110 Million,
reflecting slightly better than a 10% increase."
He also reported that "the purchase of the Bank's two newest offices,
located in Montross and Warsaw, have proven to be excellent strategic
opportunities for our organization." When these offices were acquired in early
1998, "we purchased through the acquisition less than one-half million dollars
in loans. Our goal for our two new offices was to have approximately $5 Million
in loans by year-end 1999. As of the end of October 1999, we were at $7.5
Million, a 50% increase over where we had hoped to be. Deposits in these two
offices have also seen good increases, all surpassing in October our year-end
objectives."
"Our new Trust Company, Bay Trust, has received all regulatory
approvals that will allow us to begin operations," Roberts reported. "The new
company will continue to operate in the Bank of Lancaster's Main Office for the
immediate future but plans are underway for new Trust Company headquarters,
which we anticipate moving into during the first quarter of 2000."
"The growth we are experiencing, " Roberts stated, "is an indication to
us that we are meeting the needs of our market area, which is our primary
focus."
"The Year 2000 date change," Roberts stated, "continues to be one of
the major topics of discussion today." He reported that "our Y2K Task Force has
been working for over three years, preparing our organization for this event.
While no one can guarantee that there will be no delays or problems, we can
report without hesitation that we are prepared and we will be ready to open for
business on January 3, 2000. Our systems are Y2K compliant and we have
contingency plans in place should there be temporary delays in phone or power
service. Our customers can be assured that they will experience little or no
disruption to their banking transactions."
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"We are excited about the opportunities of the new millennium," Roberts
stated. "From internet banking to the friendly, personal, professional service
that has become our trademark, Bank of Lancaster and Bay Trust are eager to meet
the challenges and the opportunities that the future will bring. We are
committed to being a financial leader with vision, which includes providing to
our customers the latest in technology, creating long-term relationships through
a full array of financial products and services, and quality service that will
make for a strong partnership with the communities we are proud to serve. Yes,
times are changing, and we will change with them; but we will never lose sight
of the reason we are such a successful company ... the patronage of our
customers."
