BV Financial, Inc. Announces Financial Results

Rhea-AI Summary

BV Financial, Inc. (OTC:BVFL) reported a net income of $2.8 million or $0.37 per diluted share for Q2 2022, an increase from $1.9 million or $0.27 per share in Q2 2021. For the first half of 2022, net income rose to $5.2 million or $0.70 per share from $4.6 million or $0.65 per share in the same period last year. Non-performing assets grew to $6.4 million, while the loan loss allowance increased to $3.1 million. Total assets reached $857.3 million, reflecting robust growth in loans and deposits.

Positive

• Increase in net income to $2.8 million for Q2 2022, up from $1.9 million in Q2 2021.
• Net income for the first half of 2022 increased to $5.2 million compared to $4.6 million in H1 2021.
• Strong Tier 1 leverage capital ratio of 12.29% at June 30, 2022, exceeding regulatory standards.

Negative

• Non-performing assets increased to $6.4 million from $4.4 million as of December 31, 2021.
• Loan loss allowance increased to $3.1 million, indicating higher credit risk.

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	%

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 Q2 2022?

BV Financial reported a net income of $2.8 million or $0.37 per diluted share for Q2 2022.

How did BV Financial perform in the first half of 2022?

In the first half of 2022, BV Financial recorded a net income of $5.2 million or $0.70 per diluted share.

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

As of June 30, 2022, non-performing assets totaled $6.4 million, up from $4.4 million in December 2021.

What is BV Financial's current Tier 1 leverage capital ratio?

BV Financial's Tier 1 leverage capital ratio stood at 12.29% as of June 30, 2022.