BV Financial, Inc. Announces Financial Results

Rhea-AI Summary

BV Financial, Inc. (OTC PINK:BVFL) reported a net income of $2.2 million or $0.31 per diluted share for Q3 2021, up from $1.5 million or $0.20 per diluted share in Q3 2020. Year-to-date income stood at $6.8 million or $0.96 per diluted share, compared to $5.9 million or $0.82 in the same period in 2020. Non-performing assets decreased to $8.1 million from $8.4 million at year-end 2020. Total assets amounted to $807.4 million, with a strong Tier 1 leverage capital ratio of 11.54%.

Positive

• Net income increased by $0.7 million QoQ from $1.5 million to $2.2 million.
• Year-to-date income rose to $6.8 million, up from $5.9 million YoY.
• Non-performing assets declined to $8.1 million from $8.4 million.
• Total stockholders' equity increased to $80.9 million from $74.0 million.
• Tier 1 leverage capital ratio remains strong at 11.54%.

Negative

• Total assets decreased from $815.6 million to $807.4 million.
• Loan loss allowance increased, indicating potential concerns with loan performance.

BALTIMORE, MD / ACCESSWIRE / October 21, 2021 / BV Financial, Inc. (OTC PINK:BVFL), the holding company for BayVanguard Bank, today reported net income of $2.2 million, or $0.31 per diluted share, for the quarter ended September 30, 2021 compared to net income of $1.5 million or $0.20 per diluted share, for the quarter ended September 30, 2020. Net income for the nine-month period ended September 30, 2021 was $6.8 million or $0.96 per diluted share compared to net income of $5.9 million or $0.82 per diluted share in the nine-month period ended September 30, 2020. Year to date income in the prior year-to-date period includes a $3.3 million gain on bargain purchase from the acquisition of MB Bancorp. The results in the current quarter and year to date periods reflect the operations of the former Delmarva Bancshares and 1880 Bank that were acquired on October 31, 2020.

Non-performing assets at September 30, 2021 totaled $8.1 million consisting of $6.3 million in nonperforming loans and $1.8 million in other real estate owned, compared to $8.4 million at December 31, 2020, consisting of $5.6 million in non-performing loans and $2.8 million in other real estate owned. At September 30 2021, the loan loss allowance was $2.3 million, which represented 0.39% of total loans and 36.0% of non-performing loans compared to $1.8 million at December 31, 2020, which represented 0.30% of total loans and 32.5% of non-performing loans. In addition, at September 30, 2021, the Bank had credit impairment allowances of $5.6 million that is not included in the loan loss allowance. The credit impairment allowances were established for loans acquired in the Delmarva Bancshares, MB Bancorp, Kopernik and Vigilant mergers. At September 30, 2021, these acquired loans totaled $318.8 million or 55.1% of the loan portfolio.

At September 30, 2021, BV Financial, Inc. had total assets of $807.4 million, net loans of $571.9 million, deposits of $674.2 million and total stockholders' equity of $80.9 million compared to $815.6 million, $607.1 million, $675.1 million and $74.0 million at December 31, 2020, respectively.

BayVanguard's Tier 1 leverage capital ratio was 11.54% at September 30, 2021 compared to 13.05% at December 31, 2020. This ratio and the Bank's other capital measurements continue to exceed all regulatory standards for "well-capitalized" financial institutions.

BV Financial, Inc., in a press release dated August 5, 2021 announced the signing of a definitive merger agreement whereby BayVanguard Bank has agreed to merge with North Arundel Savings Bank. As a merger among mutual institutions, there is no consideration to be paid.

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.

Contact:

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

BV Financial, Inc. Consolidated Financial Highlights (In thousands, except per share data)
	9/30/2021			12/31/2020
Selected Balance Sheet Data:
Total Assets	$	807,356		$	815,565
Investment securities		47,120			39,929
Loans receivable, net		571,901			607,073
Total Deposits		674,181			675,096
Borrowings		36,775			54,655
Stockholders' Equity		80,949			74,021
	Three Months Ended September 30,
Operating results:	2021			2020
Interest Income	$	7,264		$	4,269
Interest Expense		927			610
Net Interest income		6,337			3,659
Provision for Loan Losses		90			60
Net Interest Income after provision		6,247			3,599
Non-Interest Income		511			520
Non-Interest expense		3,901			2,271
Income before taxes		2,857			1,848
Income taxes		652			396
Net Income	$	2,205		$	1,452
Diluted Income per share	$	0.31		$	0.20
	Nine Months Ended September 30,
Operating results:	2021			2020
Interest Income	$	21,674		$	11,800
Interest Expense		2,837			1,832
Net Interest income		18,837			9,968
Provision for Loan Losses		270			293
Net Interest Income after provision		18,567			9,675
Non-Interest Income		1,816			961
Gain on Bargain Purchase		-			3,285
Non-Interest expense		10,885			7,064
Income before taxes		9,498			6,857
Income taxes		2,665			982
Net Income	$	6,833		$	5,875
Diluted Income per share	$	0.96		$	0.82

SOURCE: BV Financial, Inc.

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FAQ

What were BV Financial's earnings for Q3 2021?

BV Financial reported net income of $2.2 million or $0.31 per diluted share for Q3 2021.

How did BV Financial's year-to-date income compare to last year?

Year-to-date income for BV Financial reached $6.8 million, up from $5.9 million in the same period last year.

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

Non-performing assets decreased to $8.1 million as of September 30, 2021, down from $8.4 million at year-end 2020.

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

BV Financial's Tier 1 leverage capital ratio was 11.54% at September 30, 2021.

What is the current loan loss allowance for BV Financial?

The loan loss allowance for BV Financial increased to $2.3 million, representing 0.39% of total loans.