Bay Banks of Virginia, Inc., holding company for Virginia Commonwealth Bank and VCB Financial Group, Inc. announced that it has completed a private placement of $25 million in fixed-to-floating rate subordinated notes due 2029 (the "Notes"). The Notes have been structured to qualify as Tier 2 capital under bank regulatory guidelines, and the proceeds from the sale of the Notes will be utilized for general corporate purposes, including the potential repayment of the company's existing subordinated debt (which debt becomes callable in May 2020) and supporting capital levels at Virginia Commonwealth Bank. Sandler O'Neill + Partners, L.P., served as the sole placement agent. The Notes will initially bear interest at 5.625% per annum, beginning October 7, 2019 through October 14, 2024, payable semi-annually in arrears. From October 15, 2024 through October 14, 2029, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 433.5 basis points, payable quarterly in arrears. Beginning on October 15, 2024 through maturity, the Notes may be redeemed, at the Company's option, on any scheduled interest payment date. The Notes will mature on October 15, 2029.