BV Financial Inc. Announces Financial Results

Rhea-AI Summary

BV Financial, Inc. (OTC PINK:BVFL) reported a net income of $2.4 million, or $0.33 per diluted share, for Q1 2022, down from $2.7 million, or $0.38 per diluted share in Q1 2021. Notable events include $0.6 million in other income from a loan payoff and a $0.3 million gain on a bargain purchase from the NASB merger, offset by $0.3 million in related conversion expenses. Non-performing assets increased to $5.8 million, and the loan loss allowance stood at $2.9 million, or 0.45% of total loans. Total assets rose to $857.1 million, reflecting strong capital ratios exceeding regulatory requirements.

Positive

• Net income of $2.4 million for Q1 2022.
• Acquisition of NASB adds $35.3 million in loans and $40.3 million in deposits.
• Assets increased to $857.1 million.
• Tier 1 leverage capital ratio improved to 12.19%.

Negative

• Net income decreased from $2.7 million in Q1 2021.
• Non-performing assets rose to $5.8 million from $4.4 million.

EDGEMERE, MD / ACCESSWIRE / April 21, 2022 / BV Financial, Inc. (OTC PINK:BVFL), the holding company for BayVanguard Bank, today reported net income of $2.4 million, or $0.33 per diluted share, for the three months ended March 31, 2022 compared to net income of $2.7 million or $0.38 per diluted share, for the three months ended March 31, 2021.

In the quarter ended March 31, 2022, the Company recognized $0.6 million in other income upon the pay-off of a customer's loan relationship, $0.3 million in a gain on bargain purchase related to the merger with North Arundel Savings Bank (NASB) as well as $0.3 million in expenses related to the systems conversion of NASB. In the quarter ended March 31, 2021, the Company recognized $0.3 million in additional insurance proceeds, a $0.2 million reduction in interest on borrowed money from the accretion of the fair market value adjustment on the pay-off of subordinated debt assumed in the 2020 acquisition of Delmarva Bancshares and deferred $0.7 million in compensation expense tied to the second round of SBA PPP funding in the quarter. This deferred compensation is being amortized against interest income as the PPP loan population pays down.

Non-performing assets increased to $5.8 million at March 31, 2022 compared to $4.4 million at December 31, 2021. At March 31, 2022, the loan loss allowance was $2.9 million, which represented 0.45% of total loans and 76.6% of non-performing loans compared to $2.7 million at December 31, 2021, which represented 0.45% of total loans and 111.3% of non-performing loans. In addition, at March 31, 2022 and December 31, 2021, the Bank had credit impairment allowances on acquired loans of $4.6 million and $4.5 million, respectively, that is not included in the loan loss allowance. The credit impairment allowances were established for loans acquired in the mergers with Vigilant Savings Bank in 2013, Kopernik Bank in 2019, MB Bancorp, Inc. and Delmarva Bancshares in 2020 and NASB in 2022. At March 31, 2022, these acquired loans totaled $290.4 million or 45.4 % of the portfolio.

As of March 31, 2022, BV Financial, Inc. had assets of $857.1 million, net loans of $632.7 million, deposits of $709.6 million and total stockholders' equity of $89.4 million compared to $815.1 million, $584.4 million, $680.0 million and $83.4 million at December 31, 2021.

BayVanguard Bank's Tier 1 leverage capital ratio was approximately 12.19% at March 31, 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.

As previously disclosed, in January 2022, BayVanguard Bank acquired NASB. At closing, NASB had approximately $35.3 million in loans and $40.3 million in deposits. As part of this transaction, BV Financial, Inc. issued 251,004 shares of common stock to Bay-vanguard Mutual Holding Company.

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.

About BV Financial, Inc.

BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Edgemere, Maryland with seventeen other 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 within its market area.

Consolidated Statement of Condition
Unaudited

		3/31/22				12/31/21
ASSETS
Cash			12,934				8,484
Interest bearing deposits in other banks			84,292				102,456
			97,226				110,940
Time Deposits in Other Banks			992				250
Investment AFS			39,182				37,793
Investment HTM			7,566				4,059
Equity Securities			244				-
Loans			632,705				584,438
Loans Held For sale			-				-
Repossessed Assets			1,987				1,987
Premises and Equipment			16,175				15,050
FHLB of Atlanta Stock			489				404
Cash Surrender Value of Life Insurance			26,059				25,966
Accrued Interest Receivable			2,769				2,583
Goodwill			14,420				14,420
Other Intangible Assets			1,333				1,293
Deferred Tax Asset			8,433				8,322
Other Assets			7,471				7,625
Total Assets		$	857,051			$	815,130
LIABILITIES
Deposits - non interest bearing			167,171				175,019
Deposits - interest bearing			542,452				505,006
Total Deposits			709,623				680,025
Borrowed Money			36,881				36,828
Official Checks			7,256				2,417
Advanced Payments By Borrowers			4,978				4,514
Other Liabilities			8,932				7,900
Total Liabilities			767,670				731,684
EQUITY
Common Stock at par			74				71
Common Stock in excess of par			9,421				9,383
Retained Earnings			81,005				74,088
Net Unrealized Gain (Loss) on Securities			(1,119	)			(96	)
Total Equity			89,381				83,446
Total Liabilites and Equity		$	857,051			$	815,130

BV Financial & Subsidiaries
Consolidated Statement of Income

		3/31/22				3/31/21
INTEREST INCOME
Loans, including fees		$	7,202			$	7,197
Investment Securities			172				118
Other Interest Income			39				28
Total Interest Income			7,413				7,343
Interest on Deposits			367				580
Interest on Borrowed Money			503				317
Total Interest Expense			870				897
Net Interest Income Before Provision For Loss			6,543				6,446
Provision for Loan Losses			177				90
Net Interest Income			6,366				6,356
Debit Card Income			182				189
Service Fees On Deposits			113				117
Income from Life Insurance			93				348
Gain (loss) on repossessed assets			-				12
Gain on sale of Loans			-				14
Gain on Bargain Purchase			330				-
Other Income			770				79
Total Other Income			1,488				759
Compensation			2,402				1,539
Occupancy			464				392
Data Processing			365				617
Advertising			5				5
Professional fees			175				103
Equipment			112				143
Foreclosed Real Estate Holding Costs			10				6
Amortization of intangible assets			45				45
FDIC insurance premiums			53				36
Other			727				468
Total Non-Interest Expense			4,358				3,354
Net Income Before Tax			3,496				3,761
Provision for Income Tax			1,078				1,078
Net Income		$	2,418			$	2,683
Basic Earnings per share		$	0.33			$	0.38
Diluted earnings per share		$	0.33			$	0.38

CONTACT:
Michael J. Dee
Chief Financial Officer
(410) 477-5000

SOURCE: BV Financial, Inc.

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FAQ

What were BV Financial's earnings for Q1 2022?

BV Financial reported a net income of $2.4 million or $0.33 per diluted share for Q1 2022.

How did BV Financial perform compared to Q1 2021?

BV Financial's net income decreased from $2.7 million in Q1 2021 to $2.4 million in Q1 2022.

What are the recent developments regarding BV Financial's assets?

As of March 31, 2022, BV Financial's total assets increased to $857.1 million.

What is the status of non-performing assets for BV Financial?

Non-performing assets increased to $5.8 million as of March 31, 2022.

What is the Tier 1 leverage capital ratio for BV Financial?

The Tier 1 leverage capital ratio for BV Financial was approximately 12.19% at March 31, 2022.