Bay Banks of Virginia, Inc. reported earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, net interest income was $3,770,000 against $3,436,000 a year ago. Profit before taxes was $868,000 against loss before taxes of $979,000 a year ago. Net income was $571,000 or $0.12 per basic and diluted share against net loss of $590,000 or $0.12 per basic and diluted share a year ago. Return on average assets was 0.48% against negative return on average assets of 0.54% a year ago. Return on average equity was 5.46% against negative return on average equity of 5.93% a year ago. Book value as at December 31, 2016 was $8.73 against $8.29 a year ago. Tangible book value as at December 31, 2016 per share was $8.25 against $7.90 a year ago. The increase in net interest income for the fourth quarter of 2016 compared to the fourth quarter of 2015 was driven by an increase in interest income of $322,000 while interest expense decreased by $12,000.  The improved interest income was driven by growth in loan balances and improved yields on investment securities, which offset reductions in loan yields. For the year, the company reported earnings were $0.53 per share against $0.08 a year ago. Annualized return on average assets was 0.55% compared to 0.09% for 2015. Net interest income increased by 9.0%, or $1.2 million, to $14.4 million, for 2016 compared to 2015. The increase in net interest income for 2016 compared 2015 was driven by an increase in interest income of $1.7 million while interest expense increased by $491,000.  The improvement in interest income was driven primarily by growth in loan balances and yields on investment securities, which partially offset the reduced yields on loans.