Bay Banks of Virginia Inc. announces workforce reduction
Bay Banks of Virginia Inc. announced Friday it is eliminating nine positions.
The holding company for Kilmarnock-based Bank of Lancaster and Bay Trust Co., says lobby traffic has declined substantially during the past several years, largely because of an increase in the use of technology and “the many alternative retail delivery channels available to our customers.”
The company says it offered early retirement packages to employees who are 55 years of age or older with 10 or more years of service. Five employees opted to take the early retirement.
When the workforce reductions go into effect at the end of the year, the company’s ratio of assets per employee will increase from $3.5 million to $3.8 million.
Elimination of the nine positions is expected to save the company $418,000 annually, not including severance costs of $133,000.
Bay Banks. reported earnings of $281,000 for the quarter ended Sept. 30, compared to $512,000 for the same quarter in 2014. For the nine months ended Sept. 30, earnings were $956,000 compared to $1.2 million for the same period in 2014.
Bank of Lancaster was founded in 1930. It has banking branches in the Northern Neck and Richmond plus a residential lending production office in Middlesex County. Bay Trust Co. provides management services for personal and corporate trusts.