BALTIMORE, MD / ACCESS Newswire / April 17, 2025 / BV Financial, Inc. (NASDAQ:BVFL), (the "Company") the holding company for BayVanguard Bank (the "Bank"), reported net income of $2.1 million or $0.21 per diluted share for the quarter ended March 31, 2025 compared to net income of $2.6 million or $0.24 per diluted share for the quarter ended March 31, 2024.
Adjusted net income, a Non-GAAP financial metric, was $2.9 million for both quarters ended March 31, 2025 and 2024. For a reconciliation of net income as reported and Non-GAAP adjusted net income, see the table below.
Financial Highlights
Return on average assets and return on average equity for the quarter ended March 31, 2025 were 0.92% and 4.28%, respectively. Return on average assets and return on average equity for the three months ended March 31, 2024 were 1.16% and 5.14%, respectively.
Net Loans increased $12.0 million, or 1.65% to $741.3 million at March 31, 2025 compared to $729.2 million at December 31, 2024.
Deposits increased $6.4 million, or 0.98%, from $651.5 million at December 31, 2024 to $657.9 million at March 31, 2025.
In the quarter ended March 31, 2025, the Company recorded a provision for credit losses of $297,000 consisting of a $351,000 provision to the allowance for credit losses (ACL) - loans, a $53,000 recovery to the ACL-unfunded commitments and a $1,000 recovery to the ACL - for held-to-maturity securities. In the quarter ended March 31, 2024, the Company recorded a provision for credit losses of $18,000 consisting of ($133,000) in the ACL - loans, $152,000 in the ACL-unfunded commitments and ($1,000) in the ACL - HTM Securities.
The Company completed the stock repurchase program previously announced on July 30, 2024 with the repurchase of 50,038 shares in January 2025 at an average cost of $17.08. The Company announced the adoption of a second stock repurchase program on April 4, 2025.
Financial Condition
Total Assets. Total assets were $921.9 million at March 31, 2025, an increase of $10.1 million, or 1.11%, from $911.8 million at December 31, 2024. The increase was due primarily to a $12.0 million increase in loans receivable partially offset by a decrease of $2.1 million in securities available for sale. The loan growth in the quarter was funded by an increase in deposits and quarterly net income.
Cash and Cash Equivalents. Cash and cash equivalents increased $320,000 or 0.5%, to $70.8 million at March 31, 2025 from $70.5 million at December 31, 2024.
Net Loans Receivable. Net loans receivable increased $12.0 million, or 1.65%, to $741.3 million at March 31, 2025 from $729.2 million at December 31, 2024. Increases in commercial and industrial loans of $9.9 million, investor commercial real estate loans of $4.3 million and owner occupied one-to four-family loans of $3.0 million offset decreases in non-owner occupied one- to four-family loans.
Securities. Securities available for sale ("AFS") decreased $2.1 million, or 5.6%, to $35.2 million at March 31, 2025 from $37.3 million at December 31, 2024. The decrease was due to new purchases not fully replacing maturities and paydowns in the portfolio. Securities held-to-maturity were relatively unchanged at $5.9 million.
Total Liabilities. Total liabilities increased $7.6 million or 1.1%, to $723.9 million at March 31, 2025 from $716.3 million at December 31, 2024. The increase was primarily due to an increase in total deposits of $6.4 million, and an increase in escrow accounts and other accrued balances.
Deposits. Total deposits increased $6.4 million, or 0.98%, to $657.9 million at March 31, 2025 from $651.5 million at December 31, 2024. Noninterest bearing deposits increased $6.5 million, or 5.0%, to $136.3 million at March 31, 2025 from $129.7 million at December 31, 2024. Interest-bearing deposits were relatively unchanged at $521.6 million.
Federal Home Loan Bank Borrowings. The Company had $15 million in Federal Home Loan Bank borrowings at March 31, 2025 and December 31, 2024.
Stockholders' Equity. Stockholders' equity increased $2.6 million, or 1.3%, to $198.1 million at March 31, 2025, primarily due to net income and somewhat offset by share repurchases.
Asset Quality. Non-performing assets at March 31, 2025 totaled $5.0 million consisting of $4.8 million in nonperforming loans and $158,000 in foreclosed real estate, compared to $4.2 million at December 31, 2024, consisting of $4.0 million in non-performing loans and $159,000 in foreclosed real estate. At March 31 2025, the allowance for credit losses on loans was $8.9 million, which represented 1.18% of total loans and 183.9% of non-performing loans compared to $8.5 million at December 31, 2024, which represented 1.15% of total loans and 212.5% of non-performing loans.
Comparison of Operating Results for the Three Ended March 31, 2025 and 2024
Net Interest Income. Net interest income was $8.6 million for the three months ended March 31, 2025 compared to $8.0 million in the three months ended March 31, 2024. The net interest margin for the three months ended March 31, 2025 was 4.12% compared to 3.91% for the three months ended March 31, 2024.
Noninterest Income. For the three months ended March 31, 2025, noninterest income totaled $530,000 compared to $578,000 in the quarter ended March 31, 2024.
Noninterest Expense. For the three months ended March 31, 2025, noninterest expense totaled $6.2 million compared to $4.9 million for the three months ended March 31, 2024. Compensation and benefits expenses increased $1.4 million, or 44.6% due to increases in salaries and the $1.2 million cost of the equity awards granted after the stockholders approved the 2024 Equity Incentive Plan. Professional fees increased $119,000 or 106.3% primarily due to a recovery in 2024 of previously expensed legal fees of $109,000 on the disposition of a problem loan. Other expenses decreased $271,000 or 43.2%.
Income taxes. For the three months ended March 31, 2025, income tax expense was $599,000 for an effective tax rate of 22.2%. In the quarter ended March 31, 2024, income tax expense was $1.0 million for an effective tax rate of 28.5%. The lower rate is due to an accrual adjustment made in the current quarter.
Forward-Looking Statements
This press release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative and regulatory issues that may impact the Company's earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, increased competitive pressures, the effects of inflation, the imposition of tariffs or other domestic or international governmental policies, potential recessionary conditions, general economic conditions or conditions within the securities markets, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the FRB, changes in the quality, size and composition of our loan and securities portfolios, changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio, changes in demand for our products and services, accounting and tax changes, deposit flows, real estate values and competition, changes in accounting principles, policies or guidelines, changes in legislation or regulation and other economic, competitive, governmental, regulatory and technological factors affecting the Company's operations, pricing, products and services, a potential government shutdown, a failure in or breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company's financial condition and results of operations and the business in which the Company and the Bank are engaged and the failure to maintain current technologies, our ability to enter into new markets successfully and capitalize on growth opportunities and the failure to retain or attract employees.
BV Financial, Inc.
BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Baltimore, Maryland with thirteen branches in the Baltimore metropolitan area and the eastern shore of Maryland. The Bank is a full-service community-oriented financial institution dedicated to serving the financial service needs of consumers and businesses.
Contact:
Michael J. Dee
Chief Financial Officer
(410) 477- 5000
BV FINANCIAL, INC.
Consolidated Financial Ratios
| At or For the Three Months | ||||||||
| Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
Performance Ratios(1): | ||||||||
Return on average assets | 0.92 | % | 1.16 | % | ||||
Return on average equity | 4.28 | % | 5.14 | % | ||||
Interest rate spread(2) | 3.37 | % | 3.10 | % | ||||
Net interest margin(3) | 4.12 | % | 3.91 | % | ||||
Non-interest expense to average assets | 2.70 | % | 2.23 | % | ||||
Efficiency ratio(4) | 67.36 | % | 52.75 | % | ||||
Average interest-earning assets to average interest-bearing liabilities | 148.50 | % | 154.58 | % | ||||
Average equity to average assets | 21.40 | % | 22.61 | % | ||||
Credit Quality Ratios: | ||||||||
Allowance for credit losses as a percentage of total loans | 1.18 | % | 1.20 | % | ||||
Allowance for credit losses as a percentage of non-performing loans | 183.87 | % | 79.16 | % | ||||
Net charge-offs (recoveries) to average outstanding loans during the year | 0.00 | % | -0.01 | % | ||||
Non-performing loans as a percentage of total loans | 0.64 | % | 1.52 | % | ||||
Non-performing loans as a percentage of total assets | 0.52 | % | 1.20 | % | ||||
Total non-performing assets as a percentage of total assets | 0.53 | % | 1.22 | % | ||||
Other: | ||||||||
Number of offices | 13 | 13 | ||||||
Number of full-time equivalent employees | 109 | 112 | ||||||
(1) Performance ratios are annualized. | ||||||||
(2) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. | ||||||||
(3) Represents net interest income as a percentage of average interest-earning assets. | ||||||||
(4) Represents non-interest expenses divided by the sum of net interest income and non-interest income. | ||||||||
BV FINANCIAL, INC.
Consolidated Balance Sheets
| March 31, 2025 | December 31, 2024 | |||||||
(dollars in thousands, except share amounts) | (unaudited) | |||||||
Assets | ||||||||
Cash | $ | 8,568 | $ | 5,842 | ||||
Interest-bearing deposits in other banks | 62,252 | 64,658 | ||||||
Cash and cash equivalents | 70,820 | 70,500 | ||||||
Equity Investment | 408 | 391 | ||||||
Securities available for sale | 35,185 | 37,259 | ||||||
Securities held to maturity (fair value of $5,191 and $5,171, ACL of $3 and $4) | 5,909 | 5,979 | ||||||
Loans held for maturity | 750,174 | 737,760 | ||||||
Allowance for Credit Losses | (8,888 | ) | (8,522 | ) | ||||
Net Loans | 741,286 | 729,238 | ||||||
Foreclosed real estate | 158 | 159 | ||||||
Premises and equipment, net | 13,243 | 13,224 | ||||||
Federal Home Loan Bank of Atlanta stock, at cost | 1,385 | 1,366 | ||||||
Investment in life insurance | 20,145 | 20,058 | ||||||
Accrued interest receivable | 3,121 | 3,161 | ||||||
Goodwill | 14,420 | 14,420 | ||||||
Intangible assets, net | 786 | 831 | ||||||
Deferred tax assets, net | 8,989 | 8,899 | ||||||
Other assets | 6,083 | 6,336 | ||||||
Total assets | $ | 921,938 | $ | 911,821 | ||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities | ||||||||
Noninterest-bearing deposits | $ | 136,261 | $ | 129,724 | ||||
Interest-bearing deposits | 521,635 | 521,767 | ||||||
Total deposits | 657,896 | 651,491 | ||||||
FHLB borrowings | 15,000 | 15,000 | ||||||
Subordinated debentures | 34,922 | 34,883 | ||||||
Other liabilities | 16,047 | 14,948 | ||||||
Total liabilities | 723,865 | 716,322 | ||||||
Stockholders' equity | ||||||||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued or outstanding | - | - | ||||||
Common stock, $0.01 par value; 45,000,000 shares authorized in 2025 and 2024; 10,594,044 shares issued and outstanding as of March 31, 2025; 10,645,284 shares issued and outstanding as of December 31, 2024 | 106 | 106 | ||||||
Paid-in capital | 94,915 | 94,679 | ||||||
Unearned common stock held by employee stock ownership plan | (7,115 | ) | (7,160 | ) | ||||
Retained earnings | 111,594 | 109,495 | ||||||
Accumulated other comprehensive loss | (1,427 | ) | (1,621 | ) | ||||
Total stockholders' equity | 198,073 | 195,499 | ||||||
Total liabilities and stockholders' equity | $ | 921,938 | $ | 911,821 | ||||
BV FINANCIAL, INC.
Consolidated Statements of Income
(dollars in thousands, except per share amounts) | Three Months Ended March 31, | |||||||
Interest Income | 2025 | 2024 | ||||||
Loans, including fees | $ | 10,741 | $ | 9,782 | ||||
Investment securities available for sale | 350 | 306 | ||||||
Investment securities held to maturity | 47 | 92 | ||||||
Other interest income | 743 | 824 | ||||||
Total interest income | 11,881 | 11,004 | ||||||
Interest Expense | ||||||||
Interest on deposits | 2,601 | 1,986 | ||||||
Interest on FHLB borrowings | 171 | - | ||||||
Interest on Subordinated debentures | 466 | 1,055 | ||||||
Total interest expense | 3,238 | 3,041 | ||||||
Net interest income | 8,643 | 7,963 | ||||||
Provision for (recovery of) credit losses | 297 | 18 | ||||||
Net interest income after provision for (recovery of) credit losses | 8,346 | 7,945 | ||||||
Noninterest Income | ||||||||
Service fees on deposits | 103 | 103 | ||||||
Fees from debit cards | 164 | 171 | ||||||
Income from investment in life insurance | 87 | 87 | ||||||
Other income | 176 | 217 | ||||||
Total noninterest income | 530 | 578 | ||||||
Noninterest Expense | ||||||||
Compensation and related benefits | 4,524 | 3,129 | ||||||
Occupancy | 444 | 438 | ||||||
Data processing | 397 | 377 | ||||||
Advertising | 6 | 5 | ||||||
Professional fees | 231 | 112 | ||||||
Equipment | 91 | 102 | ||||||
Foreclosed real estate and repossessed assets holding costs | 3 | 5 | ||||||
Amortization of intangible assets | 45 | 45 | ||||||
FDIC insurance premiums | 81 | 83 | ||||||
Other expense | 356 | 627 | ||||||
Total noninterest expense | 6,178 | 4,923 | ||||||
Net income before tax | 2,698 | 3,600 | ||||||
Income tax expense | 599 | 1,026 | ||||||
Net income | $ | 2,099 | $ | 2,574 | ||||
Basic earnings per share | $ | 0.21 | $ | 0.24 | ||||
Diluted earnings per share | $ | 0.21 | $ | 0.24 | ||||
BV FINANCIAL, INC.
Average Balance Sheet for the Quarters ended March 31,
'(Dollars in thousands)
| For the Three Months Ended March 31, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
(dollars in thousands) | Average Outstanding Balance | Interest | Average Yield/Rate | Average Outstanding Balance | Interest | Average Yield/Rate | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans | $ | 739,666 | $ | 10,741 | 5.89 | % | $ | 708,367 | $ | 9,782 | 5.54 | % | ||||||||||||
Securities available-for-sale | 36,884 | 350 | 3.85 | % | 34,045 | 306 | 3.61 | % | ||||||||||||||||
Securities held-to-maturity | 7,323 | 47 | 2.60 | % | 10,815 | 92 | 3.41 | % | ||||||||||||||||
Cash, cash equivalents and other interest-earning assets | 66,832 | 743 | 4.51 | % | 62,681 | 824 | 5.28 | % | ||||||||||||||||
Total interest-earning assets | 850,705 | 11,881 | 5.66 | % | 815,908 | 11,004 | 5.41 | % | ||||||||||||||||
Noninterest-earning assets | 65,008 | 67,460 | ||||||||||||||||||||||
Total assets | $ | 915,713 | $ | 883,368 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 80,149 | 171 | 0.87 | % | $ | 84,550 | 236 | 1.12 | % | ||||||||||||||
Savings deposits | 122,458 | 99 | 0.33 | % | 146,629 | 65 | 0.18 | % | ||||||||||||||||
Money market deposits | 124,962 | 764 | 2.48 | % | 87,738 | 352 | 1.61 | % | ||||||||||||||||
Certificates of deposit | 195,379 | 1,567 | 3.52 | % | 173,093 | 1,333 | 3.09 | % | ||||||||||||||||
Total interest-bearing deposits | 522,948 | 2,601 | 2.02 | % | 492,010 | 1,986 | 1.62 | % | ||||||||||||||||
Federal Home Loan Bank advances | 15,000 | 171 | 4.62 | % | - | - | - | |||||||||||||||||
Subordinated debentures | 34,905 | 466 | 5.41 | % | 35,805 | 1,055 | 11.82 | % | ||||||||||||||||
Total borrowings | 49,905 | 637 | 5.18 | % | 35,805 | 1,055 | 11.82 | % | ||||||||||||||||
Total interest-bearing liabilities | 572,853 | 3,238 | 2.29 | % | 527,815 | 3,041 | 2.31 | % | ||||||||||||||||
Noninterest-bearing demand deposits | 131,981 | 139,691 | ||||||||||||||||||||||
Other noninterest-bearing liabilities | 14,941 | 16,142 | ||||||||||||||||||||||
Total liabilities | 719,775 | 683,648 | ||||||||||||||||||||||
Equity | 195,938 | 199,720 | ||||||||||||||||||||||
Total liabilities and equity | $ | 915,713 | $ | 883,368 | ||||||||||||||||||||
Net interest income | $ | 8,643 | $ | 7,963 | ||||||||||||||||||||
Net interest rate spread | 3.37 | % | 3.10 | % | ||||||||||||||||||||
Net interest-earning assets | $ | 277,852 | $ | 288,093 | ||||||||||||||||||||
Net interest margin | 4.12 | % | 3.91 | % | ||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 148.50 | % | 154.58 | % | ||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSS - LOANS
'(Dollars in thousands)
| QTR | QTR | |||||||
| 3/31/2025 | 3/31/2024 | |||||||
Beginning Balance | $ | 8,522 | $ | 8,554 | ||||
Provision for credit loss -loans | 351 | (133 | ) | |||||
Net Charge-offs (recoveries): | ||||||||
Owner Occupied 1-4 | (3 | ) | (52 | ) | ||||
Non-Owner Occupied 1-4 | (16 | ) | (29 | ) | ||||
Investor Commercial Real Estate | - | - | ||||||
OO Commercial Real Estate | - | (2 | ) | |||||
Construction & Land | (1 | ) | (1 | ) | ||||
Farm Loans | - | - | ||||||
Marine & Consumer | 5 | (1 | ) | |||||
Guaranteed by the US Gov't | - | - | ||||||
Commercial | - | - | ||||||
Net charge-offs (recoveries) | (15 | ) | (85 | ) | ||||
Ending Balance- ACL for Loans | $ | 8,888 | $ | 8,506 | ||||
Balance Reserve for unfunded loan commitments | 299 | 360 | ||||||
Balance Reserve for HTM Securities | 3 | 5 | ||||||
Total ACL | $ | 9,190 | $ | 8,871 | ||||
Provision expense for Unfunded Commitments | (53 | ) | 152 | |||||
Provision expense for HTM Securities | (1 | ) | (1 | ) | ||||
Total other provision expense | $ | (54 | ) | $ | 151 | |||
Total provision for (recovery of ) credit losses | $ | 297 | $ | 18 | ||||
RECONCILIATION TABLE (UNAUDITED)
NON-GAAP ADJUSTED NET INCOME
Non-GAAP Reconciliation
In addition to results presented in accordance with generally accepted accounting principles utilized in the Unites States ("GAAP"), this earnings release contains a non-GAAP financial measure, Non-GAAP adjusted net income. The Company believes this non-GAAP financial measure is useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time. Non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
| Three Months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
Net Income (GAAP) | $ | 2,099 | $ | 2,574 | ||||
Plus(minus) tax adjusted items: | ||||||||
Write-off of FMV adjustment on pay-off of acquired junior subordinated debt - tax adjusted | - | 404 | ||||||
2024 Equity Plan Expenses - tax adjusted | 857 | - | ||||||
Non GAAP adjusted net income | $ | 2,956 | $ | 2,978 | ||||
SOURCE: BV Financial, Inc.
View the original press release on ACCESS Newswire
