Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows From Operating Activities
Net (loss) income	$ (6,648)	$ 5,056
Adjustments to reconcile net income to net cash provided by operating activities:
Goodwill impairment charge	10,374
Depreciation and amortization	1,075	1,279
Net premium amortization on available-for-sale securities	361	397
Amortization of subordinated notes issuance costs	82	13
Amortization of core deposit intangible	425	517
Accretion of fair value adjustment on acquired time deposits	(59)	(96)
Accretion of fair value adjustments on acquired loans	(381)	(993)
Provision for loan losses	5,673	871
Share-based compensation expense	333	315
Deferred income tax benefit	(590)
Increase in other real estate owned valuation allowance	290	423
(Gains) losses on sale of other real estate owned	(34)	18
Net (gain) loss on the disposition of fixed and other assets	(5)	2
Decrease in value of mortgage servicing rights	90	67
Increase in cash surrender value of bank owned life insurance	(351)	(362)
Net (gains) losses on sales and calls of available-for-sale securities	(29)	1
Originations of loans held for sale (HFS)	(147,289)	(42,847)
Proceeds from HFS loan sales	147,527	43,411
Gain on HFS sold loans	(1,694)	(464)
Increase in other assets and accrued interest receivable	(702)	(2,914)
(Decrease) increase in other liabilities	(117)	4,438
Net cash provided by operating activities	8,331	9,132
Cash Flows From Investing Activities
Proceeds from maturities, calls, and principal paydowns of available-for-sale securities	24,921	8,196
Purchases of available-for-sale securities	(12,227)	(5,000)
Purchases of restricted securities, net	684	916
Maturities of certificates of deposit	1,488	248
Decrease in federal funds sold	1,207	533
Net increase in loans	(130,921)	(30,300)
Proceeds from sale of other real estate owned	1,093	1,324
Net purchases of premises and equipment	(206)	(167)
Net cash used in investing activities	(113,961)	(24,250)
Cash Flows From Financing Activities
Increase in demand, savings, and other interest-bearing demand deposits	94,304	23,552
Net increase in time deposits	22,996	28,040
Stock options exercised, net	88	9
Net (decrease) increase in securities sold under repurchase agreements and other borrowings	(5,431)	164
Shares repurchased pursuant to ESOP	(25)
Decrease in Federal Home Loan Bank advances	(20,000)	(32,000)
Increase in Federal Reserve Bank advances	32,637
Net cash provided by financing activities	124,569	19,765
Net increase in cash and due from banks	18,939	4,647
Cash and cash equivalents (including interest-earning deposits) at beginning of period	40,454	26,666
Cash and cash equivalents (including interest-earning deposits) at end of period	59,393	31,313
Cash paid for:
Interest	9,425	11,264
Income taxes	650
Non-cash investing and financing activities:
Unrealized gain on available-for-sale securities	1,425	2,109
Loans transferred to other real estate owned	546	346
Changes in deferred taxes resulting from other comprehensive income transactions	(301)	(443)
Cumulative effect adjustment of adoption of accounting principle		(45)
Employee stock ownership plan transactions	(199)	(141)
Director and executive stock grant	$ 164	$ 148

BAY BANKS OF VIRGINIA INC 10-Q