BV Financial, Inc. Announces Financial Results

July 21, 2022 at 09:15 AM EDT

BALTIMORE, MD / ACCESSWIRE / July 21, 2022 / BV Financial, Inc. (OTC:BVFL), the holding company for BayVanguard Bank (the "Bank"), today reported net income of $2.8 million, or $0.37 per diluted share, for the quarter ended June 30, 2022 compared to net income of $1.9 million, or $0.27 per diluted share, for the quarter ended June 30, 2021. Net income for the six-month period ended June 30, 2022 was $5.2 million or $0.70 per diluted share compared to net income of $4.6 million or $0.65 per diluted share in the six-month period ended June 30, 2021.

Non-performing assets at June 30, 2022 totaled $6.4 million consisting of $4.4 million in nonperforming loans and $2.0 million in other real estate owned, compared to $4.4 million at December 31, 2021, consisting of $2.4 million in non-performing loans and $2.0 million in other real estate owned. At June 30 2022, the loan loss allowance was $3.1 million, which represented 0.49% of total loans and 70.7% of non-performing loans compared to $2.6 million at December 31, 2021, which represented 0.45% of total loans and 111.3% of non-performing loans. In addition, at June 30, 2022, the Bank had a credit impairment valuation allowance of $4.3 million that is not included in the Bank's allowance for loan loss estimate which is in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). The credit impairment allowances were established for loans acquired in the Delmarva Bancshares, MB Bancorp, Kopernik, North Arundel and Vigilant mergers.

At June 30, 2022, BV Financial, Inc. had total assets of $857.3 million, net loans of $630.2 million, deposits of $712.6 million and total stockholders' equity of $91.9 million compared to $815.1 million, $584.4 million, $680.0 million and $83.4 million at December 31, 2021, respectively.

BayVanguard's Tier 1 leverage capital ratio was 12.29% at June 30, 2022 compared to 11.79% at December 31, 2021. This ratio and the Bank's other capital measurements continue to exceed all regulatory standards for "well-capitalized" financial institutions.

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, 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.

BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Edgemere, Maryland with ten branches in the Baltimore metropolitan area. The Bank is a full-service community-oriented financial institution dedicated to serving the financial service needs of consumers and businesses within its market area.

BV Financial & Subsidiaries
Consolidated Statement of Condition

	Unaudited
	6/30/2022			12/31/2021
ASSETS
Cash		9,871			8,484
Interest bearing deposits in other banks		94,940			102,456
		104,811			110,940

Time Deposits in Other Banks		496			250
Equity securities at fair value		240			-
Investment AFS		35,886			37,793
Investment HTM		7,389			4,059
Loans		630,249			584,438
Loans Held For sale		-			-
Repossessed Assets		1,987			1,987
Premises and Equipment		15,674			15,050
FHLB of Atlanta Stock		489			404
Cash Surrender Value of Life Insurance		26,187			25,966
Accrued Interest Receivable		2,833			2,583
Goodwill		14,420			14,420
Other Intangible Assets		1,287			1,293
Deferred Tax Asset		8,272			8,322
Other Assets		7,032			7,625

Total Assets	$	857,252		$	815,130

LIABILITIES
Deposits - non interest bearing		176,642			175,019
Deposits - interest bearing		535,968			505,006
Total Deposits		712,610			680,025

Borrowed Money		36,933			36,828
Official Checks		2,615			2,417
Advanced Payments By Borrowers		6,198			4,514
Other Liabilities		6,970			7,900

Total Liabilities		765,326			731,684
EQUITY

Common Stock at par		74			71
Common Stock in excess of par		9,773			9,383
Retained Earnings		83,770			74,088
Net Unrealized Gain (Loss) on Securities		(1,691	)		(96	)

Total Equity		91,926			83,446

Total Liabilites and Equity	$	857,252		$	815,130

BV Financial & Subsidiaries
YTD Consolidated Statement of Income

	6/30/2022			6/30/2021
INTEREST INCOME
Loans, including fees	$	14,776		$	14,125
Investment Securities		366			228
Other Interest Income		268			57
Total Interest Income		15,410			14,410


Interest on Deposits		690			1,076
Interest on Borrowed Money		1,012			833
Total Interest Expense		1,702			1,909


Net Interest Income Before Provision For Loss		13,708			12,501
Provision for Loan Losses		401			180
Net Interest Income		13,307			12,321

Debit Card Income		381			391
Service Fees On Deposits		234			227
Income from Life Insurance		221			487
Gain (loss) on repossessed assets		-			12
Gain on sale of building		235			-
Gain on sale of Loans		1			31
Gain on Bargain Purchase		694			-
Other Income		902			158
Total Other Income		2,668			1,306

Compensation		4,815			3,294
Occupancy		911			817
Data Processing		731			996
Advertising		11			13
Professional fees		319			306
Equipment		214			249
Foreclosed Real Estate Holding Costs		58			49
Amortization of intangible assets		91			91
FDIC insurance premiums		108			88
Other		1,789			1,083
Total Non-Interest Expense		9,047			6,986

Net Income Before Tax		6,928			6,641

Provision for Income Tax		1,746			2,013

Net Income	$	5,182		$	4,628

Basic Earnings per share	$	0.70		$	0.65
Diluted earnings per share	$	0.70		$	0.65

Return on average assets		1.22	%		1.14	%
Return on average equity		11.65	%		12.03	%
Efficiency ratio		56.63	%		51.27	%
Net Interest margin		3.60	%		3.47	%

BV Financial & Subsidiaries
QTRLY Consolidated Statement of Income

	6/30/2022			6/30/2021
INTEREST INCOME
Loans, including fees	$	7,573		$	6,928
Investment Securities		194			110
Other Interest Income		233			29
Total Interest Income		8,000			7,067


Interest on Deposits		321			496
Interest on Borrowed Money		514			517
Total Interest Expense		835			1,013


Net Interest Income Before Provision For Loss		7,165			6,054
Provision for Loan Losses		224			90
Net Interest Income		6,941			5,964

Debit Card Income		198			202
Service Fees On Deposits		121			110
Income from Life Insurance		128			139
Gain (loss) on repossessed assets		-			-
Gain on sale of building		235			-
Gain on sale of Loans		1			17
Gain on Bargain Purchase		364			-
Other Income		135			79
Total Other Income		1,182			547

Compensation		2,413			1,755
Occupancy		447			425
Data Processing		367			379
Advertising		7			8
Professional fees		144			203
Equipment		102			106
Foreclosed Real Estate Holding Costs		48			44
Amortization of intangible assets		46			45
FDIC insurance premiums		55			53
Other		1,060			613
Total Non-Interest Expense		4,689			3,631

Net Income Before Tax		3,434			2,880

Provision for Income Tax		669			935

Net Income	$	2,765		$	1,945

Basic Earnings per share	$	0.37		$	0.27
Diluted earnings per share	$	0.37		$	0.27

Return on average assets		1.28	%		0.96	%
Return on average equity		12.21	%		9.99	%
Efficiency ratio		57.72	%		55.77	%
Net Interest margin		3.92	%		3.30	%