Bay Banks of Virginia in Kilmarnock has issued $7 million in subordinated debt.
The $391 million-asset holding company for Bank of Lancaster said the notes were issued to board members, existing investors and members of the local community. Bay Banks plans to use the proceeds to improve its capital and for general corporate purposes.
The fixed rate bonds have an annual interest rate of 6.5% and reach maturity May 28, 2025.
FIG Partners was adviser to Bay Banks and Williams Mullen was its legal adviser.