- BV Financial (BVFL, Financial) reported a 19% drop in Q1 2025 net income to $2.1 million or $0.21 per diluted share, down from $2.6 million or $0.24 last year.
- Net loans grew by 1.65% to $741.3 million, while deposits increased by 0.98% to $657.9 million.
- The net interest margin improved to 4.12%, up from 3.91% in Q1 2024.
Baltimore, MD – BV Financial, Inc. (NASDAQ: BVFL), the holding company for BayVanguard Bank, has announced its financial results for the first quarter ended March 31, 2025. The company reported a net income of $2.1 million, or $0.21 per diluted share, compared to $2.6 million, or $0.24 per diluted share, for the same period in 2024. This marks a 19% decrease in net income year-over-year.
Despite the drop in earnings, the company demonstrated growth in several areas. Net loans rose by $12.0 million, or 1.65%, reaching $741.3 million. Deposits also grew by $6.4 million, or 0.98%, and totaled $657.9 million at the end of the quarter. The improvement in net interest margin, which increased to 4.12% from 3.91%, underscores effective interest rate management amidst a dynamic economic landscape.
However, noninterest expenses surged by 25.5% to $6.2 million, primarily due to a $1.4 million increase in compensation costs, linked to equity awards under the 2024 Equity Incentive Plan. This resulted in an efficiency ratio deterioration to 67.36%, from 52.75% a year prior.
The company completed its prior stock repurchase program in January 2025, buying back 50,038 shares at an average price of $17.08 per share. BV Financial announced the initiation of a new stock repurchase program on April 4, 2025.
Asset quality metrics reported an increase in non-performing assets to $5.0 million, up from $4.2 million at the end of 2024. The allowance for credit losses stood at 1.18% of total loans.
These results present a mixed picture for BV Financial, with positive trends in loan and deposit growth offset by lowered profitability due to increased expenses.
