Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries BV Financial, Inc. Announces Financial Results By: ACCESSWIRE July 18, 2024 at 16:30 PM EDT BALTIMORE, MD / ACCESSWIRE / July 18, 2024 / BV Financial, Inc. (NASDAQ:BVFL), the holding company for BayVanguard Bank (the "Bank"), today reported net income of $3.4 million, or $0.32 per diluted share, for the quarter ended June 30, 2024 compared to net income of $3.9 million, or $0.49 per diluted share, for the quarter ended June 30, 2023. Net income for the six-month period ended June 30, 2024 was $6.0 million or $0.52 per diluted share compared to net income of $7.0 million or $0.88 per diluted share for the six-month period ended June 30, 2023. Financial Highlights Return on average assets and return on average equity for the three months ended June 30, 2024 were 1.52% and 6.68%, respectively. Net loans held to maturity decreased $2.4 million or 0.3% compared to December 31, 2023. Deposits increased $6.2 million or 1.0% from $634.1 million at December 31, 2023 to $640.3 million at June 30, 2024. Cash and cash equivalents increased by $16.9 million or 23.0% compared to December 31, 2023. Non-accrual loans decreased $2.5 million or 22.0% to $8.2 million at June 30, 2024 from $10.6 million at December 31, 2023. The Company recorded a recovery to the provision for credit losses of $111,000 for the three months ended June 30, 2024 and $92,000 for the six months ended June 30, 2024. FINANCIAL CONDITION DISCUSSION Total Assets. Total assets were $897.2 million at June 30, 2024, an increase of $11.9 million, or 1.4%, from $885.3 million at December 31, 2023. The increase was due primarily to a $16.9 million increase in cash, which was primarily offset by decreases in loans and securities. Cash and Cash Equivalents. Cash and cash equivalents increased $16.9 million, or 23.0%, to $90.4 million at June 30, 2024 from $73.5 million at December 31, 2023. The increase in cash is a result of the increase in deposits and the decrease in other earning assets. Loans Receivable. Loans receivable decreased $2.4 million, or 0.3%, to $702.4 million at June 30, 2024 from $704.8 million at December 31, 2023. Decreases in owner occupied commercial real estate, 1-4 family non-owner occupied loans and 1-4 family owner occupied loans offset increases non-owner occupied commercial real estate and commercial non-real estate loans. Securities. Securities available for sale decreased by $1.9 million or 5.5% from December 31, 2023 as paydowns in the mortgage-backed securities were not replaced with new purchases. The held-to-maturity portfolio experienced a slight decrease due to paydowns. Total Liabilities. Total liabilities increased $5.5 million or 0.8%, to $691.7 million at June 30, 2024 from $686.2 million at December 31, 2023. The increase was due primarily to the increase in interest-bearing deposits offsetting a decrease in borrowings as $3.0 million in junior subordinated debt was paid off in the first quarter of 2024. Deposits. Total deposits increased $6.2 million, or 1.0% to $640.3 million at June 30, 2024 from $634.1 million at December 31, 2023. Interest-bearing deposits increased $7.2 million, or 1.5%, to $499.3 million at June 30, 2024 from $492.1 million at December 31, 2023. Noninterest bearing deposits decreased $1.0 million, or 0.7%, to $141.0 million at June 30, 2024 from $142.0 million at December 31, 2023. Stockholders' Equity. Stockholders' equity increased $6.4 million, or 3.2%, to $205.5 million at June 30, 2024 from $199.1 million at December 31, 2023 primarily due to net income during the period. RESULTS OF OPERATION DISCUSSION Net Income. Net income was $3.4 million or $0.32 per diluted share for the three months ended June 30, 2024 compared to $3.9 million or $0.49 per diluted share for the three months ended June 30, 2023. In the three months ended June 30, 2023, the Company recognized a gain on the sale of foreclosed real estate of $678,000. Net income was $6.0 million or $0.52 per diluted share for the six months ended June 30, 2024 compared to $7.0 million or $0.88 per diluted share for the six months ended June 30, 2023. In the six months ended June 30, 2023, the Company recognized a gain on the sale of foreclosed real estate of $678,000 and received $225,000 in life insurance proceeds. Net Interest Income. Net interest income was $8.9 million for the three months ended June 30, 2024 compared to $8.2 million in the three months ended June 30, 2023.The net interest margin for the three months ended June 30, 2024 was 4.33% compared to 4.19% for the three months ended June 30, 2023. The increase in net interest income was due to higher average balances of interest earning assets and higher yields on these assets offsetting the increase in interest expense due to higher rates paid on deposits. Net interest income was $16.9 million for the six months ended June 30, 2024, compared to $16.4 million in the six months ended June 30, 2023. The net interest margin for the six months ended June 30, 2024 was 4.12% compared to 4.26% for the six months ended June 30, 2023. The increase in net interest income was due to higher average balances of interest earning assets and higher yields on these assets offsetting the increase in interest expense due to higher rates paid on deposits. Noninterest Income. For the three months ended June 30, 2024, noninterest income totaled approximately $600,000 compared to $1.4 million for the quarter ended June 30, 2023. For the quarter ended June 30, 2023, the Company recognized a gain of $678,000 on the sale of foreclosed real estate. For the six months ended June 30, 2024, noninterest income totaled $1.2 million as compared to $2.2 million for the six months ended June 30, 2023. In the six-months ended June 30, 2023, the Company recognized a gain of $678,000 on the sale of foreclosed real estate and $225,000 in life insurance proceeds. Noninterest Expense. For the three months ended June 30, 2024, noninterest expense totaled $4.9 million compared to $4.5 million in the three months ended June 30, 2023. Increases in compensation and benefits increased $232,000 or 8.1% due to increases in salary and benefits, occupancy expense increased by $43,000 or 11.7% due to higher rent and maintenance expenses, data processing expense increased by $34,000 or 10.0% due to annual increases and project expenses and professional fees increased due to price increases and the costs of being a public company. For the six months ended June 30, 2024, noninterest expense totaled $9.8 million as compared to $9.2 million in the six months ended June 30, 2023. Increases in compensation and benefits increased $482,000 or 8.4% due to increases in staffing and salaries and benefits, occupancy expense increased by $65,000 or 8.3% due to higher rent and maintenance expenses, data processing expense increased by $62,000 or 9.0% due to annual increases and project expenses. Asset Quality. Non-performing assets at June 30, 2024 totaled $8.4 million consisting of $8.2 million in nonperforming loans and $170,000 in other real estate owned, compared to $10.9 million at December 31, 2023, consisting of $10.7 million in non-performing loans and $170,000 in other real estate owned. During the quarter, our largest loan on non-accrual, a $6.8 million investor commercial real estate loan, was reduced by a $3.0 million cash payment. In July, the remaining $3.8 million balance paid off. At June 30, 2024, the allowance for credit losses on loans was $8.5 million, which represented 1.22% of total loans and 103.9% of non-performing loans compared to $8.5 million at December 31, 2023, which represented 1.21% of total loans and 81.0% of non-performing loans. 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, 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 and 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 and tax 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 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, the failure to retain or attract employees. BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Baltimore, Maryland with fifteen 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. At or For the Three Months At or For the Six Months Ended June 30, Ended June 30, 2024 2023 2024 2023 Performance Ratios(1): Return on average assets 1.52 % 1.78 % 1.34 % 1.62 % Return on average equity 6.68 % 15.24 % 5.92 % 13.90 % Interest rate spread(2) 3.61 % 3.77 % 3.36 % 3.92 % Net interest margin(3) 4.33 % 4.19 % 4.12 % 4.26 % Non-interest expense to average assets 2.19 % 2.07 % 2.21 % 2.14 % Efficiency ratio(4) 51.53 % 46.57 % 54.42 % 49.27 % Average interest-earning assets to average interest-bearing liabilities 154.65 % 135.48 % 154.62 % 135.05 % Average equity to average assets 22.73 % 11.68 % 22.68 % 11.67 % Credit Quality Ratios: Allowance for credit losses as a percentage of total loans 1.22 % 1.16 % 1.22 % 1.16 % Allowance for credit losses as a percentage of non-performing loans 103.88 % 179.14 % 103.88 % 179.14 % Net charge-offs (recoveries) to average outstanding loans during the year -0.01 % -0.01 % -0.02 % -0.02 % Non-performing loans as a percentage of total loans 1.17 % 0.65 % 1.17 % 0.65 % Non-performing loans as a percentage of total assets 0.92 % 0.50 % 0.92 % 0.50 % Total non-performing assets as a percentage of total assets 0.94 % 0.56 % 0.94 % 0.56 % Other: Number of offices 13 15 13 15 Number of full-time equivalent employees 116 117 116 117 (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 June 30, 2024 December 31, 2023 (dollars in thousands, except share amounts) (unaudited) Assets Cash $ 9,334 $ 9,260 Interest-bearing deposits in other banks 81,305 64,482 Cash and cash equivalents 90,639 73,742 Equity Investment 236 256 Securities available for sale 32,868 34,781 Securities held to maturity (fair value of $9,051 and $9,206, ACL of $5 and $6) 10,089 10,209 Loans held to maturity 702,373 704,802 Allowance for Credit Losses (8,547 ) (8,554 ) Net Loans 693,826 696,248 Foreclosed real estate 170 170 Premises and equipment, net 13,503 14,250 Federal Home Loan Bank of Atlanta stock, at cost 654 626 Investment in life insurance 19,856 19,657 Accrued interest receivable 3,344 3,279 Goodwill 14,420 14,420 Intangible assets, net 922 1,012 Deferred tax assets, net 8,810 8,969 Other assets 7,825 7,635 Total assets $ 897,162 $ 885,254 Liabilities and Stockholders' Equity Liabilities Noninterest-bearing deposits $ 141,040 $ 142,030 Interest-bearing deposits 499,260 492,090 Total deposits 640,300 634,120 FHLB borrowings - - Subordinated Debentures 34,806 37,251 Other liabilities 16,584 14,818 Total liabilities 691,690 686,189 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 at June 30, 2024 and December 31, 2023; 11,387,723 shares issued and outstanding as of June 30, 2024 and 11,375,803 shares issued and outstanding as of December 31, 2023 114 114 Paid-in capital 110,694 110,465 Unearned common stock held by employee stock ownership plan (7,244 ) (7,328 ) Retained earnings 103,745 97,772 Accumulated other comprehensive loss (1,837 ) (1,958 ) Total stockholders' equity 205,472 199,065 Total liabilities and stockholders' equity $ 897,162 $ 885,254 BV FINANCIAL, INC.Consolidated Statements of Income (dollars in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, Interest Income 2024 2023 2024 2023 Loans, including fees $ 10,177 $ 9,327 $ 19,959 $ 18,100 Investment securities available for sale 306 277 612 543 Investment securities held to maturity 91 92 183 186 Other interest income 1,043 843 1,867 1,398 Total interest income 11,617 10,539 22,621 20,227 Interest Expense Interest on deposits 2,242 1,266 4,228 1,931 Interest on FHLB borrowings - 495 - 783 Interest on Subordinated debentures 466 541 1,521 1,075 Total interest expense 2,708 2,302 5,749 3,789 Net interest income 8,909 8,237 16,872 16,438 Provision for (recovery of) credit losses (111 ) (150 ) (92 ) (147 ) Net interest income after provision for (recovery of) credit losses 9,020 8,387 16,964 16,585 Noninterest Income Service fees on deposits 97 101 200 195 Fees from debit cards 182 188 354 360 Income from investment in life insurance 112 145 199 464 Gain on sale of foreclosed real estate - 678 - 678 Other income 205 258 421 481 Total noninterest income 596 1,370 1,174 2,178 Noninterest Expense Compensation and related benefits 3,091 2,859 6,220 5,738 Occupancy 409 366 847 782 Data processing 374 340 751 689 Advertising 6 14 11 28 Professional fees 244 176 356 376 Equipment 103 108 205 213 Foreclosed real estate holding costs 11 32 16 159 Amortization of intangible assets 45 46 90 92 FDIC insurance premiums 81 64 164 118 Other expense 533 539 1,160 1,049 Total noninterest expense 4,897 4,544 9,820 9,244 Net income before tax 4,719 5,213 8,318 9,519 Income tax expense 1,320 1,314 2,345 2,505 Net income $ 3,399 $ 3,899 $ 5,973 $ 7,014 Basic earnings per share $ 0.32 $ 0.49 $ 0.52 $ 0.88 Diluted earnings per share $ 0.32 $ 0.49 $ 0.52 $ 0.88 BV FINANCIAL, INC.Average Balance Sheet for the Quarters ended June 30,(Dollars in thousands) For the Three Months Ended June 30, 2024 2023 (dollars in thousands) Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Unaudited) Interest-earning assets: Loans $ 705,516 $ 10,177 5.79 % $ 679,179 $ 9,327 5.51 % Securities available-for-sale 33,445 306 3.67 % 35,240 277 3.15 % Securities held-to-maturity 10,777 91 3.39 % 12,415 92 2.99 % Cash, cash equivalents and other interest-earning assets 75,031 1,043 5.59 % 61,780 843 5.49 % Total interest-earning assets 824,769 11,617 5.65 % 788,614 10,539 5.36 % Noninterest-earning assets 67,088 87,991 Total assets $ 891,857 $ 876,605 Interest-bearing liabilities: Interest-bearing demand deposits $ 86,892 237 1.09 % $ 87,647 143 0.65 % Savings deposits 139,980 96 0.28 % 159,790 52 0.13 % Money market deposits 93,787 475 2.03 % 91,957 140 0.61 % Certificates of deposit 177,859 1,434 3.23 % 168,064 931 2.22 % Total interest-bearing deposits 498,518 2,242 1.80 % 507,458 1,266 1.00 % Federal Home Loan Bank advances - - - 37,500 495 5.29 % Subordinated debentures 34,789 466 5.36 % 37,122 541 5.85 % Total borrowings 34,789 466 5.37 % 74,622 1,036 5.57 % Total interest-bearingliabilities 533,307 2,708 2.04 % 582,080 2,302 1.59 % Noninterest-bearing demand deposits 139,070 149,444 Other noninterest-bearing liabilities 16,627 42,715 Total liabilities 689,004 774,239 Equity 202,853 102,366 Total liabilities and equity $ 891,857 $ 876,605 Net interest income $ 8,909 $ 8,237 Net interest rate spread 3.61 % 3.77 % Net interest-earning assets $ 291,462 $ 206,534 Net interest margin 4.33 % 4.19 % Average interest-earning assets to interest-bearing liabilities 154.65 % 135.48 % BV FINANCIAL, INC.Average Balance Sheet for the Six Months ended June 30(Dollars in thousands) For the Six Months Ended June 30, 2024 2023 (dollars in thousands) Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Unaudited) Interest-earning assets: Loans $ 706,942 $ 19,959 5.54 % $ 673,564 $ 18,100 5.42 % Securities available-for-sale 33,745 612 3.61 % 35,685 543 3.07 % Securities held-to-maturity 10,796 183 3.41 % 12,166 186 3.08 % Cash, cash equivalents and other interest-earning assets 68,856 1,867 5.28 % 56,362 1,398 5.02 % Total interest-earning assets 820,339 22,621 5.41 % 777,777 20,227 5.24 % Noninterest-earning assets 67,273 87,176 Total assets $ 887,612 $ 864,953 Interest-bearing liabilities: Interest-bearing demand deposits $ 85,721 473 1.12 % $ 89,733 161 0.36 % Savings deposits 143,304 161 0.18 % 162,290 92 0.11 % Money market deposits 90,762 827 1.61 % 95,749 236 0.50 % Certificates of deposit 175,477 2,767 3.09 % 160,207 1,441 1.81 % Total interest-bearing deposits 495,264 4,228 1.62 % 507,979 1,930 0.77 % Federal Home Loan Bank advances - - - 30,862 783 5.12 % Subordinated debentures 35,297 1,521 11.82 % 37,096 1,076 5.85 % Total borrowings 35,297 1,521 11.82 % 67,958 1,859 5.52 % Total interest-bearingliabilities 530,561 5,749 2.31 % 575,937 3,789 1.33 % Noninterest-bearing demand deposits 139,381 154,521 Other noninterest-bearing liabilities 16,384 33,598 Total liabilities 686,326 764,056 Equity 201,286 100,897 Total liabilities and equity $ 887,612 $ 864,953 Net interest income $ 16,872 $ 16,438 Net interest rate spread 3.36 % 3.92 % Net interest-earning assets $ 289,778 $ 201,840 Net interest margin 4.12 % 4.26 % Average interest-earning assets to interest-bearing liabilities 154.62 % 135.05 % ALLOWANCE FOR CREDIT LOSS - LOANS(Dollars in thousands) QTR YTD 6/30/2024 6/30/2024 Beginning Balance $ 8,506 $ 8,554 Provision for credit losses -loans (25 ) (159 ) Net Charge-offs (recoveries): Owner Occupied 1-4 (56 ) (108 ) Non-Owner Occupied 1-4 (11 ) (39 ) Investor Commercial Real Estate - (2 ) OO Commercial Real Estate - (2 ) Construction & Land (1 ) (2 ) Farm Loans - - Marine & Consumer 2 1 Guaranteed by the US Gov't - - Commercial - - Net charge-offs (recoveries) (66 ) (152 ) Ending Balance- ACL for Loans $ 8,547 $ 8,547 Balance Reserve for unfunded loan commitments 275 275 Balance Reserve for HTM Securities 5 5 Total ACL $ 8,827 $ 8,827 Provision expense for Unfunded Commitments (85 ) 68 Provision expense for HTM Securities (1 ) (1 ) Total other provision expense $ (86 ) $ 67 Total provision for (recovery of )credit losses $ (111 ) $ (92 ) Contact: Michael J. DeeChief Financial Officer(410) 477- 5000 SOURCE: BV Financial, Inc. View the original press release on accesswire.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
BV Financial, Inc. Announces Financial Results By: ACCESSWIRE July 18, 2024 at 16:30 PM EDT BALTIMORE, MD / ACCESSWIRE / July 18, 2024 / BV Financial, Inc. (NASDAQ:BVFL), the holding company for BayVanguard Bank (the "Bank"), today reported net income of $3.4 million, or $0.32 per diluted share, for the quarter ended June 30, 2024 compared to net income of $3.9 million, or $0.49 per diluted share, for the quarter ended June 30, 2023. Net income for the six-month period ended June 30, 2024 was $6.0 million or $0.52 per diluted share compared to net income of $7.0 million or $0.88 per diluted share for the six-month period ended June 30, 2023. Financial Highlights Return on average assets and return on average equity for the three months ended June 30, 2024 were 1.52% and 6.68%, respectively. Net loans held to maturity decreased $2.4 million or 0.3% compared to December 31, 2023. Deposits increased $6.2 million or 1.0% from $634.1 million at December 31, 2023 to $640.3 million at June 30, 2024. Cash and cash equivalents increased by $16.9 million or 23.0% compared to December 31, 2023. Non-accrual loans decreased $2.5 million or 22.0% to $8.2 million at June 30, 2024 from $10.6 million at December 31, 2023. The Company recorded a recovery to the provision for credit losses of $111,000 for the three months ended June 30, 2024 and $92,000 for the six months ended June 30, 2024. FINANCIAL CONDITION DISCUSSION Total Assets. Total assets were $897.2 million at June 30, 2024, an increase of $11.9 million, or 1.4%, from $885.3 million at December 31, 2023. The increase was due primarily to a $16.9 million increase in cash, which was primarily offset by decreases in loans and securities. Cash and Cash Equivalents. Cash and cash equivalents increased $16.9 million, or 23.0%, to $90.4 million at June 30, 2024 from $73.5 million at December 31, 2023. The increase in cash is a result of the increase in deposits and the decrease in other earning assets. Loans Receivable. Loans receivable decreased $2.4 million, or 0.3%, to $702.4 million at June 30, 2024 from $704.8 million at December 31, 2023. Decreases in owner occupied commercial real estate, 1-4 family non-owner occupied loans and 1-4 family owner occupied loans offset increases non-owner occupied commercial real estate and commercial non-real estate loans. Securities. Securities available for sale decreased by $1.9 million or 5.5% from December 31, 2023 as paydowns in the mortgage-backed securities were not replaced with new purchases. The held-to-maturity portfolio experienced a slight decrease due to paydowns. Total Liabilities. Total liabilities increased $5.5 million or 0.8%, to $691.7 million at June 30, 2024 from $686.2 million at December 31, 2023. The increase was due primarily to the increase in interest-bearing deposits offsetting a decrease in borrowings as $3.0 million in junior subordinated debt was paid off in the first quarter of 2024. Deposits. Total deposits increased $6.2 million, or 1.0% to $640.3 million at June 30, 2024 from $634.1 million at December 31, 2023. Interest-bearing deposits increased $7.2 million, or 1.5%, to $499.3 million at June 30, 2024 from $492.1 million at December 31, 2023. Noninterest bearing deposits decreased $1.0 million, or 0.7%, to $141.0 million at June 30, 2024 from $142.0 million at December 31, 2023. Stockholders' Equity. Stockholders' equity increased $6.4 million, or 3.2%, to $205.5 million at June 30, 2024 from $199.1 million at December 31, 2023 primarily due to net income during the period. RESULTS OF OPERATION DISCUSSION Net Income. Net income was $3.4 million or $0.32 per diluted share for the three months ended June 30, 2024 compared to $3.9 million or $0.49 per diluted share for the three months ended June 30, 2023. In the three months ended June 30, 2023, the Company recognized a gain on the sale of foreclosed real estate of $678,000. Net income was $6.0 million or $0.52 per diluted share for the six months ended June 30, 2024 compared to $7.0 million or $0.88 per diluted share for the six months ended June 30, 2023. In the six months ended June 30, 2023, the Company recognized a gain on the sale of foreclosed real estate of $678,000 and received $225,000 in life insurance proceeds. Net Interest Income. Net interest income was $8.9 million for the three months ended June 30, 2024 compared to $8.2 million in the three months ended June 30, 2023.The net interest margin for the three months ended June 30, 2024 was 4.33% compared to 4.19% for the three months ended June 30, 2023. The increase in net interest income was due to higher average balances of interest earning assets and higher yields on these assets offsetting the increase in interest expense due to higher rates paid on deposits. Net interest income was $16.9 million for the six months ended June 30, 2024, compared to $16.4 million in the six months ended June 30, 2023. The net interest margin for the six months ended June 30, 2024 was 4.12% compared to 4.26% for the six months ended June 30, 2023. The increase in net interest income was due to higher average balances of interest earning assets and higher yields on these assets offsetting the increase in interest expense due to higher rates paid on deposits. Noninterest Income. For the three months ended June 30, 2024, noninterest income totaled approximately $600,000 compared to $1.4 million for the quarter ended June 30, 2023. For the quarter ended June 30, 2023, the Company recognized a gain of $678,000 on the sale of foreclosed real estate. For the six months ended June 30, 2024, noninterest income totaled $1.2 million as compared to $2.2 million for the six months ended June 30, 2023. In the six-months ended June 30, 2023, the Company recognized a gain of $678,000 on the sale of foreclosed real estate and $225,000 in life insurance proceeds. Noninterest Expense. For the three months ended June 30, 2024, noninterest expense totaled $4.9 million compared to $4.5 million in the three months ended June 30, 2023. Increases in compensation and benefits increased $232,000 or 8.1% due to increases in salary and benefits, occupancy expense increased by $43,000 or 11.7% due to higher rent and maintenance expenses, data processing expense increased by $34,000 or 10.0% due to annual increases and project expenses and professional fees increased due to price increases and the costs of being a public company. For the six months ended June 30, 2024, noninterest expense totaled $9.8 million as compared to $9.2 million in the six months ended June 30, 2023. Increases in compensation and benefits increased $482,000 or 8.4% due to increases in staffing and salaries and benefits, occupancy expense increased by $65,000 or 8.3% due to higher rent and maintenance expenses, data processing expense increased by $62,000 or 9.0% due to annual increases and project expenses. Asset Quality. Non-performing assets at June 30, 2024 totaled $8.4 million consisting of $8.2 million in nonperforming loans and $170,000 in other real estate owned, compared to $10.9 million at December 31, 2023, consisting of $10.7 million in non-performing loans and $170,000 in other real estate owned. During the quarter, our largest loan on non-accrual, a $6.8 million investor commercial real estate loan, was reduced by a $3.0 million cash payment. In July, the remaining $3.8 million balance paid off. At June 30, 2024, the allowance for credit losses on loans was $8.5 million, which represented 1.22% of total loans and 103.9% of non-performing loans compared to $8.5 million at December 31, 2023, which represented 1.21% of total loans and 81.0% of non-performing loans. 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, 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 and 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 and tax 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 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, the failure to retain or attract employees. BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Baltimore, Maryland with fifteen 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. At or For the Three Months At or For the Six Months Ended June 30, Ended June 30, 2024 2023 2024 2023 Performance Ratios(1): Return on average assets 1.52 % 1.78 % 1.34 % 1.62 % Return on average equity 6.68 % 15.24 % 5.92 % 13.90 % Interest rate spread(2) 3.61 % 3.77 % 3.36 % 3.92 % Net interest margin(3) 4.33 % 4.19 % 4.12 % 4.26 % Non-interest expense to average assets 2.19 % 2.07 % 2.21 % 2.14 % Efficiency ratio(4) 51.53 % 46.57 % 54.42 % 49.27 % Average interest-earning assets to average interest-bearing liabilities 154.65 % 135.48 % 154.62 % 135.05 % Average equity to average assets 22.73 % 11.68 % 22.68 % 11.67 % Credit Quality Ratios: Allowance for credit losses as a percentage of total loans 1.22 % 1.16 % 1.22 % 1.16 % Allowance for credit losses as a percentage of non-performing loans 103.88 % 179.14 % 103.88 % 179.14 % Net charge-offs (recoveries) to average outstanding loans during the year -0.01 % -0.01 % -0.02 % -0.02 % Non-performing loans as a percentage of total loans 1.17 % 0.65 % 1.17 % 0.65 % Non-performing loans as a percentage of total assets 0.92 % 0.50 % 0.92 % 0.50 % Total non-performing assets as a percentage of total assets 0.94 % 0.56 % 0.94 % 0.56 % Other: Number of offices 13 15 13 15 Number of full-time equivalent employees 116 117 116 117 (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 June 30, 2024 December 31, 2023 (dollars in thousands, except share amounts) (unaudited) Assets Cash $ 9,334 $ 9,260 Interest-bearing deposits in other banks 81,305 64,482 Cash and cash equivalents 90,639 73,742 Equity Investment 236 256 Securities available for sale 32,868 34,781 Securities held to maturity (fair value of $9,051 and $9,206, ACL of $5 and $6) 10,089 10,209 Loans held to maturity 702,373 704,802 Allowance for Credit Losses (8,547 ) (8,554 ) Net Loans 693,826 696,248 Foreclosed real estate 170 170 Premises and equipment, net 13,503 14,250 Federal Home Loan Bank of Atlanta stock, at cost 654 626 Investment in life insurance 19,856 19,657 Accrued interest receivable 3,344 3,279 Goodwill 14,420 14,420 Intangible assets, net 922 1,012 Deferred tax assets, net 8,810 8,969 Other assets 7,825 7,635 Total assets $ 897,162 $ 885,254 Liabilities and Stockholders' Equity Liabilities Noninterest-bearing deposits $ 141,040 $ 142,030 Interest-bearing deposits 499,260 492,090 Total deposits 640,300 634,120 FHLB borrowings - - Subordinated Debentures 34,806 37,251 Other liabilities 16,584 14,818 Total liabilities 691,690 686,189 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 at June 30, 2024 and December 31, 2023; 11,387,723 shares issued and outstanding as of June 30, 2024 and 11,375,803 shares issued and outstanding as of December 31, 2023 114 114 Paid-in capital 110,694 110,465 Unearned common stock held by employee stock ownership plan (7,244 ) (7,328 ) Retained earnings 103,745 97,772 Accumulated other comprehensive loss (1,837 ) (1,958 ) Total stockholders' equity 205,472 199,065 Total liabilities and stockholders' equity $ 897,162 $ 885,254 BV FINANCIAL, INC.Consolidated Statements of Income (dollars in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, Interest Income 2024 2023 2024 2023 Loans, including fees $ 10,177 $ 9,327 $ 19,959 $ 18,100 Investment securities available for sale 306 277 612 543 Investment securities held to maturity 91 92 183 186 Other interest income 1,043 843 1,867 1,398 Total interest income 11,617 10,539 22,621 20,227 Interest Expense Interest on deposits 2,242 1,266 4,228 1,931 Interest on FHLB borrowings - 495 - 783 Interest on Subordinated debentures 466 541 1,521 1,075 Total interest expense 2,708 2,302 5,749 3,789 Net interest income 8,909 8,237 16,872 16,438 Provision for (recovery of) credit losses (111 ) (150 ) (92 ) (147 ) Net interest income after provision for (recovery of) credit losses 9,020 8,387 16,964 16,585 Noninterest Income Service fees on deposits 97 101 200 195 Fees from debit cards 182 188 354 360 Income from investment in life insurance 112 145 199 464 Gain on sale of foreclosed real estate - 678 - 678 Other income 205 258 421 481 Total noninterest income 596 1,370 1,174 2,178 Noninterest Expense Compensation and related benefits 3,091 2,859 6,220 5,738 Occupancy 409 366 847 782 Data processing 374 340 751 689 Advertising 6 14 11 28 Professional fees 244 176 356 376 Equipment 103 108 205 213 Foreclosed real estate holding costs 11 32 16 159 Amortization of intangible assets 45 46 90 92 FDIC insurance premiums 81 64 164 118 Other expense 533 539 1,160 1,049 Total noninterest expense 4,897 4,544 9,820 9,244 Net income before tax 4,719 5,213 8,318 9,519 Income tax expense 1,320 1,314 2,345 2,505 Net income $ 3,399 $ 3,899 $ 5,973 $ 7,014 Basic earnings per share $ 0.32 $ 0.49 $ 0.52 $ 0.88 Diluted earnings per share $ 0.32 $ 0.49 $ 0.52 $ 0.88 BV FINANCIAL, INC.Average Balance Sheet for the Quarters ended June 30,(Dollars in thousands) For the Three Months Ended June 30, 2024 2023 (dollars in thousands) Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Unaudited) Interest-earning assets: Loans $ 705,516 $ 10,177 5.79 % $ 679,179 $ 9,327 5.51 % Securities available-for-sale 33,445 306 3.67 % 35,240 277 3.15 % Securities held-to-maturity 10,777 91 3.39 % 12,415 92 2.99 % Cash, cash equivalents and other interest-earning assets 75,031 1,043 5.59 % 61,780 843 5.49 % Total interest-earning assets 824,769 11,617 5.65 % 788,614 10,539 5.36 % Noninterest-earning assets 67,088 87,991 Total assets $ 891,857 $ 876,605 Interest-bearing liabilities: Interest-bearing demand deposits $ 86,892 237 1.09 % $ 87,647 143 0.65 % Savings deposits 139,980 96 0.28 % 159,790 52 0.13 % Money market deposits 93,787 475 2.03 % 91,957 140 0.61 % Certificates of deposit 177,859 1,434 3.23 % 168,064 931 2.22 % Total interest-bearing deposits 498,518 2,242 1.80 % 507,458 1,266 1.00 % Federal Home Loan Bank advances - - - 37,500 495 5.29 % Subordinated debentures 34,789 466 5.36 % 37,122 541 5.85 % Total borrowings 34,789 466 5.37 % 74,622 1,036 5.57 % Total interest-bearingliabilities 533,307 2,708 2.04 % 582,080 2,302 1.59 % Noninterest-bearing demand deposits 139,070 149,444 Other noninterest-bearing liabilities 16,627 42,715 Total liabilities 689,004 774,239 Equity 202,853 102,366 Total liabilities and equity $ 891,857 $ 876,605 Net interest income $ 8,909 $ 8,237 Net interest rate spread 3.61 % 3.77 % Net interest-earning assets $ 291,462 $ 206,534 Net interest margin 4.33 % 4.19 % Average interest-earning assets to interest-bearing liabilities 154.65 % 135.48 % BV FINANCIAL, INC.Average Balance Sheet for the Six Months ended June 30(Dollars in thousands) For the Six Months Ended June 30, 2024 2023 (dollars in thousands) Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Unaudited) Interest-earning assets: Loans $ 706,942 $ 19,959 5.54 % $ 673,564 $ 18,100 5.42 % Securities available-for-sale 33,745 612 3.61 % 35,685 543 3.07 % Securities held-to-maturity 10,796 183 3.41 % 12,166 186 3.08 % Cash, cash equivalents and other interest-earning assets 68,856 1,867 5.28 % 56,362 1,398 5.02 % Total interest-earning assets 820,339 22,621 5.41 % 777,777 20,227 5.24 % Noninterest-earning assets 67,273 87,176 Total assets $ 887,612 $ 864,953 Interest-bearing liabilities: Interest-bearing demand deposits $ 85,721 473 1.12 % $ 89,733 161 0.36 % Savings deposits 143,304 161 0.18 % 162,290 92 0.11 % Money market deposits 90,762 827 1.61 % 95,749 236 0.50 % Certificates of deposit 175,477 2,767 3.09 % 160,207 1,441 1.81 % Total interest-bearing deposits 495,264 4,228 1.62 % 507,979 1,930 0.77 % Federal Home Loan Bank advances - - - 30,862 783 5.12 % Subordinated debentures 35,297 1,521 11.82 % 37,096 1,076 5.85 % Total borrowings 35,297 1,521 11.82 % 67,958 1,859 5.52 % Total interest-bearingliabilities 530,561 5,749 2.31 % 575,937 3,789 1.33 % Noninterest-bearing demand deposits 139,381 154,521 Other noninterest-bearing liabilities 16,384 33,598 Total liabilities 686,326 764,056 Equity 201,286 100,897 Total liabilities and equity $ 887,612 $ 864,953 Net interest income $ 16,872 $ 16,438 Net interest rate spread 3.36 % 3.92 % Net interest-earning assets $ 289,778 $ 201,840 Net interest margin 4.12 % 4.26 % Average interest-earning assets to interest-bearing liabilities 154.62 % 135.05 % ALLOWANCE FOR CREDIT LOSS - LOANS(Dollars in thousands) QTR YTD 6/30/2024 6/30/2024 Beginning Balance $ 8,506 $ 8,554 Provision for credit losses -loans (25 ) (159 ) Net Charge-offs (recoveries): Owner Occupied 1-4 (56 ) (108 ) Non-Owner Occupied 1-4 (11 ) (39 ) Investor Commercial Real Estate - (2 ) OO Commercial Real Estate - (2 ) Construction & Land (1 ) (2 ) Farm Loans - - Marine & Consumer 2 1 Guaranteed by the US Gov't - - Commercial - - Net charge-offs (recoveries) (66 ) (152 ) Ending Balance- ACL for Loans $ 8,547 $ 8,547 Balance Reserve for unfunded loan commitments 275 275 Balance Reserve for HTM Securities 5 5 Total ACL $ 8,827 $ 8,827 Provision expense for Unfunded Commitments (85 ) 68 Provision expense for HTM Securities (1 ) (1 ) Total other provision expense $ (86 ) $ 67 Total provision for (recovery of )credit losses $ (111 ) $ (92 ) Contact: Michael J. DeeChief Financial Officer(410) 477- 5000 SOURCE: BV Financial, Inc. View the original press release on accesswire.com
BALTIMORE, MD / ACCESSWIRE / July 18, 2024 / BV Financial, Inc. (NASDAQ:BVFL), the holding company for BayVanguard Bank (the "Bank"), today reported net income of $3.4 million, or $0.32 per diluted share, for the quarter ended June 30, 2024 compared to net income of $3.9 million, or $0.49 per diluted share, for the quarter ended June 30, 2023. Net income for the six-month period ended June 30, 2024 was $6.0 million or $0.52 per diluted share compared to net income of $7.0 million or $0.88 per diluted share for the six-month period ended June 30, 2023. Financial Highlights Return on average assets and return on average equity for the three months ended June 30, 2024 were 1.52% and 6.68%, respectively. Net loans held to maturity decreased $2.4 million or 0.3% compared to December 31, 2023. Deposits increased $6.2 million or 1.0% from $634.1 million at December 31, 2023 to $640.3 million at June 30, 2024. Cash and cash equivalents increased by $16.9 million or 23.0% compared to December 31, 2023. Non-accrual loans decreased $2.5 million or 22.0% to $8.2 million at June 30, 2024 from $10.6 million at December 31, 2023. The Company recorded a recovery to the provision for credit losses of $111,000 for the three months ended June 30, 2024 and $92,000 for the six months ended June 30, 2024. FINANCIAL CONDITION DISCUSSION Total Assets. Total assets were $897.2 million at June 30, 2024, an increase of $11.9 million, or 1.4%, from $885.3 million at December 31, 2023. The increase was due primarily to a $16.9 million increase in cash, which was primarily offset by decreases in loans and securities. Cash and Cash Equivalents. Cash and cash equivalents increased $16.9 million, or 23.0%, to $90.4 million at June 30, 2024 from $73.5 million at December 31, 2023. The increase in cash is a result of the increase in deposits and the decrease in other earning assets. Loans Receivable. Loans receivable decreased $2.4 million, or 0.3%, to $702.4 million at June 30, 2024 from $704.8 million at December 31, 2023. Decreases in owner occupied commercial real estate, 1-4 family non-owner occupied loans and 1-4 family owner occupied loans offset increases non-owner occupied commercial real estate and commercial non-real estate loans. Securities. Securities available for sale decreased by $1.9 million or 5.5% from December 31, 2023 as paydowns in the mortgage-backed securities were not replaced with new purchases. The held-to-maturity portfolio experienced a slight decrease due to paydowns. Total Liabilities. Total liabilities increased $5.5 million or 0.8%, to $691.7 million at June 30, 2024 from $686.2 million at December 31, 2023. The increase was due primarily to the increase in interest-bearing deposits offsetting a decrease in borrowings as $3.0 million in junior subordinated debt was paid off in the first quarter of 2024. Deposits. Total deposits increased $6.2 million, or 1.0% to $640.3 million at June 30, 2024 from $634.1 million at December 31, 2023. Interest-bearing deposits increased $7.2 million, or 1.5%, to $499.3 million at June 30, 2024 from $492.1 million at December 31, 2023. Noninterest bearing deposits decreased $1.0 million, or 0.7%, to $141.0 million at June 30, 2024 from $142.0 million at December 31, 2023. Stockholders' Equity. Stockholders' equity increased $6.4 million, or 3.2%, to $205.5 million at June 30, 2024 from $199.1 million at December 31, 2023 primarily due to net income during the period. RESULTS OF OPERATION DISCUSSION Net Income. Net income was $3.4 million or $0.32 per diluted share for the three months ended June 30, 2024 compared to $3.9 million or $0.49 per diluted share for the three months ended June 30, 2023. In the three months ended June 30, 2023, the Company recognized a gain on the sale of foreclosed real estate of $678,000. Net income was $6.0 million or $0.52 per diluted share for the six months ended June 30, 2024 compared to $7.0 million or $0.88 per diluted share for the six months ended June 30, 2023. In the six months ended June 30, 2023, the Company recognized a gain on the sale of foreclosed real estate of $678,000 and received $225,000 in life insurance proceeds. Net Interest Income. Net interest income was $8.9 million for the three months ended June 30, 2024 compared to $8.2 million in the three months ended June 30, 2023.The net interest margin for the three months ended June 30, 2024 was 4.33% compared to 4.19% for the three months ended June 30, 2023. The increase in net interest income was due to higher average balances of interest earning assets and higher yields on these assets offsetting the increase in interest expense due to higher rates paid on deposits. Net interest income was $16.9 million for the six months ended June 30, 2024, compared to $16.4 million in the six months ended June 30, 2023. The net interest margin for the six months ended June 30, 2024 was 4.12% compared to 4.26% for the six months ended June 30, 2023. The increase in net interest income was due to higher average balances of interest earning assets and higher yields on these assets offsetting the increase in interest expense due to higher rates paid on deposits. Noninterest Income. For the three months ended June 30, 2024, noninterest income totaled approximately $600,000 compared to $1.4 million for the quarter ended June 30, 2023. For the quarter ended June 30, 2023, the Company recognized a gain of $678,000 on the sale of foreclosed real estate. For the six months ended June 30, 2024, noninterest income totaled $1.2 million as compared to $2.2 million for the six months ended June 30, 2023. In the six-months ended June 30, 2023, the Company recognized a gain of $678,000 on the sale of foreclosed real estate and $225,000 in life insurance proceeds. Noninterest Expense. For the three months ended June 30, 2024, noninterest expense totaled $4.9 million compared to $4.5 million in the three months ended June 30, 2023. Increases in compensation and benefits increased $232,000 or 8.1% due to increases in salary and benefits, occupancy expense increased by $43,000 or 11.7% due to higher rent and maintenance expenses, data processing expense increased by $34,000 or 10.0% due to annual increases and project expenses and professional fees increased due to price increases and the costs of being a public company. For the six months ended June 30, 2024, noninterest expense totaled $9.8 million as compared to $9.2 million in the six months ended June 30, 2023. Increases in compensation and benefits increased $482,000 or 8.4% due to increases in staffing and salaries and benefits, occupancy expense increased by $65,000 or 8.3% due to higher rent and maintenance expenses, data processing expense increased by $62,000 or 9.0% due to annual increases and project expenses. Asset Quality. Non-performing assets at June 30, 2024 totaled $8.4 million consisting of $8.2 million in nonperforming loans and $170,000 in other real estate owned, compared to $10.9 million at December 31, 2023, consisting of $10.7 million in non-performing loans and $170,000 in other real estate owned. During the quarter, our largest loan on non-accrual, a $6.8 million investor commercial real estate loan, was reduced by a $3.0 million cash payment. In July, the remaining $3.8 million balance paid off. At June 30, 2024, the allowance for credit losses on loans was $8.5 million, which represented 1.22% of total loans and 103.9% of non-performing loans compared to $8.5 million at December 31, 2023, which represented 1.21% of total loans and 81.0% of non-performing loans. 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, 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 and 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 and tax 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 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, the failure to retain or attract employees. BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Baltimore, Maryland with fifteen 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. At or For the Three Months At or For the Six Months Ended June 30, Ended June 30, 2024 2023 2024 2023 Performance Ratios(1): Return on average assets 1.52 % 1.78 % 1.34 % 1.62 % Return on average equity 6.68 % 15.24 % 5.92 % 13.90 % Interest rate spread(2) 3.61 % 3.77 % 3.36 % 3.92 % Net interest margin(3) 4.33 % 4.19 % 4.12 % 4.26 % Non-interest expense to average assets 2.19 % 2.07 % 2.21 % 2.14 % Efficiency ratio(4) 51.53 % 46.57 % 54.42 % 49.27 % Average interest-earning assets to average interest-bearing liabilities 154.65 % 135.48 % 154.62 % 135.05 % Average equity to average assets 22.73 % 11.68 % 22.68 % 11.67 % Credit Quality Ratios: Allowance for credit losses as a percentage of total loans 1.22 % 1.16 % 1.22 % 1.16 % Allowance for credit losses as a percentage of non-performing loans 103.88 % 179.14 % 103.88 % 179.14 % Net charge-offs (recoveries) to average outstanding loans during the year -0.01 % -0.01 % -0.02 % -0.02 % Non-performing loans as a percentage of total loans 1.17 % 0.65 % 1.17 % 0.65 % Non-performing loans as a percentage of total assets 0.92 % 0.50 % 0.92 % 0.50 % Total non-performing assets as a percentage of total assets 0.94 % 0.56 % 0.94 % 0.56 % Other: Number of offices 13 15 13 15 Number of full-time equivalent employees 116 117 116 117 (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 June 30, 2024 December 31, 2023 (dollars in thousands, except share amounts) (unaudited) Assets Cash $ 9,334 $ 9,260 Interest-bearing deposits in other banks 81,305 64,482 Cash and cash equivalents 90,639 73,742 Equity Investment 236 256 Securities available for sale 32,868 34,781 Securities held to maturity (fair value of $9,051 and $9,206, ACL of $5 and $6) 10,089 10,209 Loans held to maturity 702,373 704,802 Allowance for Credit Losses (8,547 ) (8,554 ) Net Loans 693,826 696,248 Foreclosed real estate 170 170 Premises and equipment, net 13,503 14,250 Federal Home Loan Bank of Atlanta stock, at cost 654 626 Investment in life insurance 19,856 19,657 Accrued interest receivable 3,344 3,279 Goodwill 14,420 14,420 Intangible assets, net 922 1,012 Deferred tax assets, net 8,810 8,969 Other assets 7,825 7,635 Total assets $ 897,162 $ 885,254 Liabilities and Stockholders' Equity Liabilities Noninterest-bearing deposits $ 141,040 $ 142,030 Interest-bearing deposits 499,260 492,090 Total deposits 640,300 634,120 FHLB borrowings - - Subordinated Debentures 34,806 37,251 Other liabilities 16,584 14,818 Total liabilities 691,690 686,189 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 at June 30, 2024 and December 31, 2023; 11,387,723 shares issued and outstanding as of June 30, 2024 and 11,375,803 shares issued and outstanding as of December 31, 2023 114 114 Paid-in capital 110,694 110,465 Unearned common stock held by employee stock ownership plan (7,244 ) (7,328 ) Retained earnings 103,745 97,772 Accumulated other comprehensive loss (1,837 ) (1,958 ) Total stockholders' equity 205,472 199,065 Total liabilities and stockholders' equity $ 897,162 $ 885,254 BV FINANCIAL, INC.Consolidated Statements of Income (dollars in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, Interest Income 2024 2023 2024 2023 Loans, including fees $ 10,177 $ 9,327 $ 19,959 $ 18,100 Investment securities available for sale 306 277 612 543 Investment securities held to maturity 91 92 183 186 Other interest income 1,043 843 1,867 1,398 Total interest income 11,617 10,539 22,621 20,227 Interest Expense Interest on deposits 2,242 1,266 4,228 1,931 Interest on FHLB borrowings - 495 - 783 Interest on Subordinated debentures 466 541 1,521 1,075 Total interest expense 2,708 2,302 5,749 3,789 Net interest income 8,909 8,237 16,872 16,438 Provision for (recovery of) credit losses (111 ) (150 ) (92 ) (147 ) Net interest income after provision for (recovery of) credit losses 9,020 8,387 16,964 16,585 Noninterest Income Service fees on deposits 97 101 200 195 Fees from debit cards 182 188 354 360 Income from investment in life insurance 112 145 199 464 Gain on sale of foreclosed real estate - 678 - 678 Other income 205 258 421 481 Total noninterest income 596 1,370 1,174 2,178 Noninterest Expense Compensation and related benefits 3,091 2,859 6,220 5,738 Occupancy 409 366 847 782 Data processing 374 340 751 689 Advertising 6 14 11 28 Professional fees 244 176 356 376 Equipment 103 108 205 213 Foreclosed real estate holding costs 11 32 16 159 Amortization of intangible assets 45 46 90 92 FDIC insurance premiums 81 64 164 118 Other expense 533 539 1,160 1,049 Total noninterest expense 4,897 4,544 9,820 9,244 Net income before tax 4,719 5,213 8,318 9,519 Income tax expense 1,320 1,314 2,345 2,505 Net income $ 3,399 $ 3,899 $ 5,973 $ 7,014 Basic earnings per share $ 0.32 $ 0.49 $ 0.52 $ 0.88 Diluted earnings per share $ 0.32 $ 0.49 $ 0.52 $ 0.88 BV FINANCIAL, INC.Average Balance Sheet for the Quarters ended June 30,(Dollars in thousands) For the Three Months Ended June 30, 2024 2023 (dollars in thousands) Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Unaudited) Interest-earning assets: Loans $ 705,516 $ 10,177 5.79 % $ 679,179 $ 9,327 5.51 % Securities available-for-sale 33,445 306 3.67 % 35,240 277 3.15 % Securities held-to-maturity 10,777 91 3.39 % 12,415 92 2.99 % Cash, cash equivalents and other interest-earning assets 75,031 1,043 5.59 % 61,780 843 5.49 % Total interest-earning assets 824,769 11,617 5.65 % 788,614 10,539 5.36 % Noninterest-earning assets 67,088 87,991 Total assets $ 891,857 $ 876,605 Interest-bearing liabilities: Interest-bearing demand deposits $ 86,892 237 1.09 % $ 87,647 143 0.65 % Savings deposits 139,980 96 0.28 % 159,790 52 0.13 % Money market deposits 93,787 475 2.03 % 91,957 140 0.61 % Certificates of deposit 177,859 1,434 3.23 % 168,064 931 2.22 % Total interest-bearing deposits 498,518 2,242 1.80 % 507,458 1,266 1.00 % Federal Home Loan Bank advances - - - 37,500 495 5.29 % Subordinated debentures 34,789 466 5.36 % 37,122 541 5.85 % Total borrowings 34,789 466 5.37 % 74,622 1,036 5.57 % Total interest-bearingliabilities 533,307 2,708 2.04 % 582,080 2,302 1.59 % Noninterest-bearing demand deposits 139,070 149,444 Other noninterest-bearing liabilities 16,627 42,715 Total liabilities 689,004 774,239 Equity 202,853 102,366 Total liabilities and equity $ 891,857 $ 876,605 Net interest income $ 8,909 $ 8,237 Net interest rate spread 3.61 % 3.77 % Net interest-earning assets $ 291,462 $ 206,534 Net interest margin 4.33 % 4.19 % Average interest-earning assets to interest-bearing liabilities 154.65 % 135.48 % BV FINANCIAL, INC.Average Balance Sheet for the Six Months ended June 30(Dollars in thousands) For the Six Months Ended June 30, 2024 2023 (dollars in thousands) Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Unaudited) Interest-earning assets: Loans $ 706,942 $ 19,959 5.54 % $ 673,564 $ 18,100 5.42 % Securities available-for-sale 33,745 612 3.61 % 35,685 543 3.07 % Securities held-to-maturity 10,796 183 3.41 % 12,166 186 3.08 % Cash, cash equivalents and other interest-earning assets 68,856 1,867 5.28 % 56,362 1,398 5.02 % Total interest-earning assets 820,339 22,621 5.41 % 777,777 20,227 5.24 % Noninterest-earning assets 67,273 87,176 Total assets $ 887,612 $ 864,953 Interest-bearing liabilities: Interest-bearing demand deposits $ 85,721 473 1.12 % $ 89,733 161 0.36 % Savings deposits 143,304 161 0.18 % 162,290 92 0.11 % Money market deposits 90,762 827 1.61 % 95,749 236 0.50 % Certificates of deposit 175,477 2,767 3.09 % 160,207 1,441 1.81 % Total interest-bearing deposits 495,264 4,228 1.62 % 507,979 1,930 0.77 % Federal Home Loan Bank advances - - - 30,862 783 5.12 % Subordinated debentures 35,297 1,521 11.82 % 37,096 1,076 5.85 % Total borrowings 35,297 1,521 11.82 % 67,958 1,859 5.52 % Total interest-bearingliabilities 530,561 5,749 2.31 % 575,937 3,789 1.33 % Noninterest-bearing demand deposits 139,381 154,521 Other noninterest-bearing liabilities 16,384 33,598 Total liabilities 686,326 764,056 Equity 201,286 100,897 Total liabilities and equity $ 887,612 $ 864,953 Net interest income $ 16,872 $ 16,438 Net interest rate spread 3.36 % 3.92 % Net interest-earning assets $ 289,778 $ 201,840 Net interest margin 4.12 % 4.26 % Average interest-earning assets to interest-bearing liabilities 154.62 % 135.05 % ALLOWANCE FOR CREDIT LOSS - LOANS(Dollars in thousands) QTR YTD 6/30/2024 6/30/2024 Beginning Balance $ 8,506 $ 8,554 Provision for credit losses -loans (25 ) (159 ) Net Charge-offs (recoveries): Owner Occupied 1-4 (56 ) (108 ) Non-Owner Occupied 1-4 (11 ) (39 ) Investor Commercial Real Estate - (2 ) OO Commercial Real Estate - (2 ) Construction & Land (1 ) (2 ) Farm Loans - - Marine & Consumer 2 1 Guaranteed by the US Gov't - - Commercial - - Net charge-offs (recoveries) (66 ) (152 ) Ending Balance- ACL for Loans $ 8,547 $ 8,547 Balance Reserve for unfunded loan commitments 275 275 Balance Reserve for HTM Securities 5 5 Total ACL $ 8,827 $ 8,827 Provision expense for Unfunded Commitments (85 ) 68 Provision expense for HTM Securities (1 ) (1 ) Total other provision expense $ (86 ) $ 67 Total provision for (recovery of )credit losses $ (111 ) $ (92 ) Contact: Michael J. DeeChief Financial Officer(410) 477- 5000 SOURCE: BV Financial, Inc. View the original press release on accesswire.com
