BV Financial, Inc. Announces Financial Results

Rhea-AI Summary

BV Financial, Inc. (OTC PINK: BVFL) reported a net income of $9.4 million, or $1.32 per diluted share, for the year ended December 31, 2021, up from $7.6 million, or $1.07 per share for 2020. Total assets stood at $815.1 million, with net loans at $584.4 million and deposits at $680.0 million. Non-performing assets decreased to $4.4 million, improving from $8.5 million in 2020. The Tier 1 leverage capital ratio was 11.79%, indicating continued compliance with regulatory standards. The acquisition of North Arundel Bank was completed on January 1, 2022.

Positive

• Net income increased by $1.8 million year-over-year.
• Non-performing assets decreased significantly from $8.5 million to $4.4 million.
• Strong allowance to non-performing loan ratio of 296.8%.

Negative

• Total assets decreased slightly from $815.6 million to $815.1 million.
• Tier 1 leverage capital ratio declined from 13.05% to 11.79%.

EDGEMERE, MD / ACCESSWIRE / January 20, 2022 / BV Financial, Inc. (OTC PINK:BVFL), the holding company for BayVanguard Bank, today reported net income of $9.4 million or $1.32 per diluted share, for the twelve months ended December 31, 2021 compared to $7.6 million, or $1.07 per diluted share, for the year ended December 31, 2020. The 2020 results include ten months of combined operations of BV Financial, Inc. and the former MB Bancorp, Inc. and its subsidiary, Madison Bank which was acquired as of February 29, 2020, a $3.3 million gain on bargain purchase recognized in the acquisition of MB Bancorp, Inc., and two months of combined operations with the former Delmarva Bancshares and its subsidiary, 1880 Bank that was acquired as of October 31, 2020.

At December 31, 2021, BV Financial, Inc. had total assets of $815.1 million, net loans of $584.4 million, deposits of $680.0 million and total stockholders' equity of $83.4 million compared to $815.6 million, $607.1 million, $675.1 million and $74.0 million at December 31, 2020, respectively.

Non-performing assets at December 31, 2021 totaled $4.4 million consisting of $2.4 million in nonperforming loans and $2.0 million on other real estate owned, compared to $8.5 million at December 31, 2020, consisting of $5.7 million in non-performing loans and $2.8 million in other real estate owned. At December 31, 2021, the loan loss allowance was $2.7 million, which represented 0.45% of total loans and 110.0% of non-performing loans. Additionally, the Company has $4.5 million in credit impairment allowances for the acquired loan portfolios. The acquired loan portfolios total $279.7 million or 47.3% of total loans at December 31, 2021. Adding the credit impairment allowances to the loan loss reserves results in an allowance to loan ratio of 1.22% and an allowance to non-performing loan ratio of 296.8%.

BayVanguard Bank's Tier 1 leverage capital ratio was 11.79% at December 31 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.

As previously announced, effective January 1, 2022, BayVanguard Bank acquired North Arundel Bank. As part of this mutual to mutual transaction, BV Financial Inc., issued 251,004 shares of common stock to Bay-Vanguard M.H.C.

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 sixteen 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.

BV Financial & Subsidiaries
Consolidated Statement of Condition
		Unaudited
		12/31/2021				12/31/2020
ASSETS
Cash			8,484				10,971
Interest bearing deposits in other banks			102,456				80,769
			110,940				91,740
Time Deposits in Other Banks			250				250
Investment AFS			37,793				32,463
Investment HTM			8,379				7,466
Loans			584,438				607,073
Loans Held For sale			-				322
Repossessed Assets			1,987				2,790
Premises and Equipment			15,050				15,482
FHLB of Atlanta Stock			404				1,280
Cash Surrender Value of Life Insurance			25,966				26,195
Accrued Interest Receivable			2,583				2,936
Goodwill			14,420				12,830
Other Intangible Assets			1,293				1,469
Deferred Tax Asset			8,285				8,156
Other Assets			3,305				5,113
Total Assets		$	815,093			$	815,565
LIABILITIES
Deposits - non interest bearing			175,019				151,087
Deposits - interest bearing			505,006				524,009
Total Deposits			680,025				675,096
Borrowed Money			36,828				54,655
Official Checks			2,417				1,657
Advanced Payments By Borrowers			4,514				1,582
Other Liabilities			7,863				8,554
Total Liabilities			731,647				741,544
EQUITY
Common Stock at par			71				73
Common Stock in excess of par			9,559				10,919
Restricted Stock			(176	)			-
Treasury Shares			-				(1,979	)
Retained Earnings			74,088				64,647
Net Unrealized Gain (Loss) on Securities			(96	)			361
Total Equity			83,446				74,021
Total Liabilites and Equity		$	815,093			$	815,565

BV Financial & Subsidiaries
Consolidated Statement of Income
		Unaudited
		12/31/2021				12/31/2020
INTEREST INCOME
Loans, including fees		$	28,728			$	17,764
Investment Securities			540				310
Other Interest Income			139				155
Total Interest Income			29,407				18,229
Interest on Deposits			1,895				2,299
Interest on Borrowed Money			1,837				605
Total Interest Expense			3,732				2,904
Net Interest Income Before Provision For Loss			25,674				15,325
Provision for Loan Losses			575				695
Net Interest Income			25,099				14,630
Debit Card Income			780				231
Service Fees On Deposits			444				228
Income from Life Insurance			683				770
Gain on sale of securities			-				-
Gain (loss) on repossessed assets			12				(17	)
Gain on sale of Loans			57				21
Other Income			366				3,703
Total Other Income			2,342				4,936
Compensation			7,907				6,071
Occupancy			1,685				1,039
Data Processing			1,608				868
Advertising			23				20
Professional fees			587				876
Equipment			453				270
Foreclosed Real Estate Holding Costs			227				111
Write-down of REO			-				-
Amortization of intangible assets			177				155
FDIC insurance premiums			190				39
Other			1,760				1,123
Total Non-Interest Expense			14,617				10,572
Net Income Before Tax			12,824				8,994
Provision for Income Tax			3,383				1,349
Net Income		$	9,441			$	7,645
Basic Earnings per share		$	1.33			$	1.08
Diluted earnings per share		$	1.32			$	1.07

SOURCE: BV Financial, Inc.

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FAQ

What was BV Financial's net income for 2021?

BV Financial reported a net income of $9.4 million for the year ended December 31, 2021.

How did BV Financial's assets change from 2020 to 2021?

Total assets slightly decreased from $815.6 million in 2020 to $815.1 million in 2021.

What was the Tier 1 leverage capital ratio for BV Financial in 2021?

The Tier 1 leverage capital ratio was 11.79% as of December 31, 2021.

How many shares did BV Financial issue for the acquisition of North Arundel Bank?

BV Financial issued 251,004 shares of common stock for the acquisition of North Arundel Bank.

What were the non-performing assets for BV Financial at the end of 2021?

Non-performing assets totaled $4.4 million at December 31, 2021.