BALTIMORE, MD / ACCESS Newswire / July 17, 2025 / BV Financial, Inc. (NASDAQ:BVFL), the holding company for BayVanguard Bank (the "Bank"), today reported net income of $2.9 million, or $0.29 per diluted share, for the quarter ended June 30, 2025 compared to net income of $3.4 million, or $0.32 per diluted share, for the quarter ended June 30, 2024. Net income for the six-month period ended June 30, 2025 was $5.0 million or $0.50 per diluted share compared to net income of $6.0 million or $0.52 per diluted share for the six-month period ended June 30, 2024.

Adjusted net income, a non-GAAP financial metric, was $3.7 million and $3.4 million for the quarters ended June 30, 2025 and 2024 and $6.7 million and $6.04 million for the year to date periods ended June 30, 2025 and 2024, respectively. For a reconciliation of net income as reported and Non-GAAP adjusted net income, see the table below.

Financial Highlights

Return on average assets and return on average equity for the three months ended June 30, 2025 was 1.26% and 5.78%, respectively.
Net loans increased $13.2 million or 1.8% to $742.4 million compared to $729.2 million at December 31, 2024.
Deposits increased $7.4 million or 1.1% from $651.5 million at December 31, 2024 to $658.9 million at June 30, 2025.
All $15.0 million in borrowings from the Federal Home Loan Bank of Atlanta "FHLB" were paid off in the quarter.
Non-accrual loans increased $400,000 to $4.4 million at June 30, 2025 from $4.0 million at December 31, 2024.
The Company recorded provisions for credit losses of $178,000 for the three months ended June 30, 2025 and $475,000 for the six months ended June 30, 2025.
During the quarter ended June 30, 2025, the Company repurchased 277,000 shares of its outstanding common stock at an average price of $15.29.

FINANCIAL CONDITION DISCUSSION

Total Assets. Total assets were $908.3 million at June 30, 2025, a decrease of $3.5 million, or -0.4%, from $911.8 million at December 31, 2024. The decrease was due primarily to the Company utilizing cash on-hand to repay $15.0 million in borrowings from the FHLB.

Cash and Cash Equivalents. Cash and cash equivalents decreased $14.2 million, or 20.1%, to $56.3 million at June 30, 2025 from $70.5 million at December 31, 2024. The decrease in cash is primarily a result of the pay-off of FHLB borrowings.

Loans Receivable. Loans receivable increased $13.8 million, or 1.9%, to $751.6 million at June 30, 2025 from $737.8 million at December 31, 2024. Increases in in owner occupied 1-4 loans, commercial loans and construction loans offset decreases in non-owner occupied 1-4 loans, owner occupied 1-4 junior liens, owner occupied commercial real estate, marine and investor commercial real estate loans.

Securities. Securities available for sale decreased by $1.9 million or 5.1% from December 31, 2024 as paydowns in the mortgage-backed securities were not replaced with new purchases. The held-to-maturity portfolio experienced a slight decrease due to paydowns.

Total Liabilities. Total liabilities decreased $6.0 million or -0.8%, to $710.3 million at June 30, 2025 from $716.3 million at December 31, 2024. The decrease was due primarily to the decrease in borrowings offsetting increases in deposits.

Deposits. Total deposits increased $7.4 million, or 1.1% to $658.9 million at June 30, 2025 from $651.5 million at December 31, 2024. Interest-bearing deposits increased $2.6 million, or 0.5%, to $524.4 million at June 30, 2025 from $521.8 million at December 31, 2024. Noninterest bearing deposits increased $4.8 million, or 3.7%, to $134.5 million at June 30, 2025 from $129.7 million at December 31, 2024.

Stockholders' Equity. Stockholders' equity increased $2.5 million, or 1.3%, to $198.0 million at June 30, 2025 from $195.5 million at December 31, 2024 as net income and the decrease in the accumulative other comprehensive loss was somewhat offset by $4.3 million in stock repurchase during the period.

RESULTS OF OPERATION DISCUSSION

Net Income. Net income was $2.9 million or $0.29 per diluted share for the three months ended June 30, 2025 compared to $3.4 million or $0.32 per diluted share for the three months ended June 30, 2024. Net income was $5.0 million or $0.50 per diluted share for the six months ended June 30, 2025 compared to $6.0 million or $0.52 per diluted share for the six months ended June 30, 2024. The decreases were due to higher provisions for credit losses and noninterest compensation expenses, offset by higher net interest income.

Net Interest Income. Net interest income was $9.2 million for the three months ended June 30, 2025 compared to $8.9 million for the three months ended June 30, 2024.The net interest margin for the three months ended June 30, 2025 was 4.36% compared to 4.33% for the three months ended June 30, 2024. The increase in net interest income was due to higher average balances of interest earning assets and higher yields on these assets offset by a higher average balance of deposits and higher rates paid on deposits.

Net interest income was $17.8 million for the six months ended June 30, 2025, compared to $16.9 million in the six months ended June 30, 2024. The net interest margin for the six months ended June 30, 2025 was 4.24% compared to 4.12% for the six months ended June 30, 2024. The increase in net interest income was due to higher average balances of interest earning assets and higher yields on these assets offsetting the increase in interest expense due to a higher volume of deposits and higher rates paid on deposits.

Noninterest Income. For the three months ended June 30, 2025, noninterest income totaled approximately $714,000 compared to $596,000 for the quarter ended June 30, 2024. The increase is attributable to the collection of miscellaneous fees on loans and deposits.

For the six months ended June 30, 2025 and June 30; 2024, noninterest income totaled $1.2 million.

Noninterest Expense. For the three months ended June 30, 2025, noninterest expense totaled $5.8 million compared to $4.9 million in the three months ended June 30, 2024. Increases in compensation and benefits of $927,000 due to the $1.1 million cost of the equity awards granted under the 2024 Equity Incentive Plan approved by stockholders. All other expense categories combined decreased by $70,000 in the quarter ended June 30, 2025 when compared to the quarter ended June 30, 2024.

For the six months ended June 30, 2025, noninterest expense totaled $11.9 million as compared to $9.8 million in the six months ended June 30, 2024. Compensation and benefits expense increased $2.3 million due to the $2.3 million cost of the equity awards granted under the 2024 Equity Incentive Plan approved by stockholders. All other expense categories combined decreased by $210,000 in the six-month period ended June 30, 2025 when compared to the six month period ended June 30, 2024.

Asset Quality. Non-performing assets at June 30, 2025 totaled $4.5 million consisting of $4.4 million in nonperforming loans and $157,000 in other real estate owned, compared to $4.2 million at December 31, 2024, consisting of $4.0 million in non-performing loans and $159,000 in other real estate owned. At June 30, 2025, the allowance for credit losses on loans was $9.2 million, which represented 1.22% of total loans and 208.6% of non-performing loans compared to $8.5 million at December 31, 2024, which represented 1.15% of total loans and 212.5% of non-performing loans.

Forward-Looking Statements

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, increased competitive pressures, the effects of inflation, the imposition of tariffs or other domestic or international governmental policies, potential recessionary conditions, general economic conditions or conditions within the securities markets, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the FRB, changes in the quality, size and composition of our loan and securities portfolios, changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio, changes in demand for our products and services, accounting and tax changes, 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, a potential government shutdown, a failure in or breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company's financial condition and results of operations and the business in which the Company and the Bank are engaged and the failure to maintain current technologies, our ability to enter into new markets successfully and capitalize on growth opportunities and the failure to retain or attract employees.

BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Baltimore, Maryland with thirteen 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.

BV FINANCIAL, INC.
Consolidated Financial Ratios

	At or For the Three Months						At or For the Six Months
	Ended June 30,						Ended June 30,
	2025			2024			2025			2024
Performance Ratios⁽¹⁾:
Return on average assets		1.26	%		1.52	%		1.09	%		1.34	%
Return on average equity		5.78	%		6.68	%		5.03	%		5.92	%
Interest rate spread⁽²⁾		3.60	%		3.61	%		3.48	%		3.10	%
Net interest margin⁽³⁾		4.36	%		4.33	%		4.24	%		4.12	%
Non-interest expense to average assets		2.54	%		2.19	%		2.62	%		2.21	%
Efficiency ratio⁽⁴⁾		58.30	%		51.53	%		62.66	%		54.42	%
Average interest-earning assets to average interest-bearing liabilities		151.25	%		154.65	%		149.86	%		154.62	%
Average equity to average assets		21.88	%		22.73	%		21.62	%		22.68	%
Credit Quality Ratios:
Allowance for credit losses as a percentage of total loans		1.22	%		1.22	%		1.22	%		1.22	%
Allowance for credit losses as a percentage of non-performing loans		208.61	%		103.88	%		208.61	%		103.88	%
Net charge-offs (recoveries) to average outstanding loans during the year		0.00	%		-0.01	%		-0.01	%		-0.02	%
Non-performing loans as a percentage of total loans		0.58	%		1.17	%		0.58	%		1.17	%
Non-performing loans as a percentage of total assets		0.48	%		0.92	%		0.48	%		0.92	%
Total non-performing assets as a percentage of total assets		0.50	%		0.94	%		0.50	%		0.94	%

Other:
Number of offices		13			13			13			13
Number of full-time equivalent employees		109			116			109			116
Weighted average shares outstanding		9,858,540			10,652,315			9,878,319			11,391,350

(1) Performance ratios are annualized.
(2) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(3) Represents net interest income as a percentage of average interest-earning assets.
(4) Represents non-interest expenses divided by the sum of net interest income and non-interest income.

BV FINANCIAL, INC.
Consolidated Balance Sheets

	June 30, 2025			December 31, 2024
(dollars in thousands, except share amounts)	(unaudited)

Assets
Cash	$	4,987		$	5,842
Interest-bearing deposits in other banks		51,336			64,658
Cash and cash equivalents		56,323			70,500
Equity Investment		406			391
Securities available for sale		35,359			37,259
Securities held to maturity (fair value of $5,128 and $5,171, ACL of $3 and $4)		5,832			5,979
Loans held for maturity		751,573			737,760
Allowance for Credit Losses		(9,159	)		(8,522	)
Net Loans		742,414			729,238
Foreclosed real estate		157			159
Premises and equipment, net		13,182			13,224
Federal Home Loan Bank of Atlanta stock, at cost		656			1,366
Investment in life insurance		20,259			20,058
Accrued interest receivable		3,243			3,161
Goodwill		14,420			14,420
Intangible assets, net		741			831
Deferred tax assets, net		9,309			8,899
Other assets		6,026			6,336
Total assets	$	908,327		$	911,821
Liabilities and Stockholders' Equity
Liabilities
Noninterest-bearing deposits	$	134,520		$	129,724
Interest-bearing deposits		524,371			521,767
Total deposits		658,891			651,491

FHLB borrowings		-			15,000
Subordinated debentures		34,961			34,883
Other liabilities		16,484			14,948
Total liabilities		710,336			716,322
Stockholders' equity
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued or outstanding		-			-
Common stock, $0.01 par value; 45,000,000 shares authorized in 2025 and 2024; 10,318,418 shares issued and outstanding as of June 30, 2025; 10,645,284 shares issued and outstanding as of December 31, 2024		103			106
Paid-in capital		91,854			94,679
Unearned common stock held by employee stock ownership plan		(7,069	)		(7,160	)
Retained earnings		114,455			109,495
Accumulated other comprehensive loss		(1,352	)		(1,621	)
Total stockholders' equity		197,991			195,499
Total liabilities and stockholders' equity	$	908,327		$	911,821

Consolidated Statements of Income

(dollars in thousands, except per share amounts)	Three Months Ended June 30,					Six Months Ended June 30,
Interest Income	2025		2024			2025		2024
Loans, including fees	$	11,334	$	10,177		$	22,075	$	19,959
Investment securities available for sale		324		306			674		612
Investment securities held to maturity		46		91			93		183
Other interest income		562		1,043			1,305		1,867
Total interest income		12,266		11,617			24,147		22,621
Interest Expense
Interest on deposits		2,622		2,242			5,223		4,228
Interest on FHLB borrowings		23		-			-		-
Interest on Subordinated debentures		465		466			1,125		1,521
Total interest expense		3,110		2,708			6,348		5,749
Net interest income		9,156		8,909			17,799		16,872
Provision for (recovery of) credit losses		178		(111	)		475		(92	)
Net interest income after provision for (recovery of) credit losses		8,978		9,020			17,324		16,964
Noninterest Income
Service fees on deposits		112		97			216		200
Fees from debit cards		177		182			341		354
Income from investment in life insurance		114		112			201		199
Other income		311		205			485		421
Total noninterest income		714		596			1,243		1,174
Noninterest Expense
Compensation and related benefits		4,018		3,091			8,542		6,220
Occupancy		379		409			823		847
Data processing		395		374			792		751
Advertising		3		6			9		11
Professional fees		249		244			479		356
Equipment		94		103			185		205
Foreclosed real estate and repossessed assets holding costs		0		11			2		16
Amortization of intangible assets		45		45			90		90
FDIC insurance premiums		84		81			165		164
Other expense		488		533			845		1,160
Total noninterest expense		5,755		4,897			11,932		9,820
Net income before tax		3,937		4,719			6,635		8,318
Income tax expense		1,076		1,320			1,675		2,345
Net income	$	2,861	$	3,399		$	4,960	$	5,973
Basic earnings per share	$	0.29	$	0.32		$	0.50	$	0.52
Diluted earnings per share	$	0.29	$	0.32		$	0.50	$	0.52

BV FINANCIAL, INC.
Average Balance Sheet for the Quarters ended June 30,
'(Dollars in thousands)

	For the Three Months Ended June 30,
	2025								2024
(dollars in thousands)	Average Outstanding Balance			Interest		Average Yield/Rate			Average Outstanding Balance			Interest		Average Yield/Rate
	(Unaudited)
Interest-earning assets:
Loans	$	752,181		$	11,334		6.04	%	$	705,516		$	10,177		5.79	%
Securities available-for-sale		34,770			324		3.74	%		33,445			306		3.67	%
Securities held-to-maturity		6,624			46		2.79	%		10,777			91		3.39	%
Cash, cash equivalents and other interest-earning assets		49,450			562		4.60	%		75,031			1,043		5.59	%
Total interest-earning assets		843,025			12,266		5.84	%		824,769			11,617		5.65	%
Noninterest-earning assets		64,324								67,088
Total assets	$	907,349							$	891,857

Interest-bearing liabilities:
Interest-bearing demand deposits	$	76,698			159		0.83	%	$	86,892			237		1.09	%
Savings deposits		120,584			106		0.35	%		139,980			96		0.28	%
Money market deposits		125,686			766		2.44	%		93,787			475		2.03	%
Certificates of deposit		197,488			1,591		3.23	%		177,859			1,434		3.23	%
Total interest-bearing deposits		520,456			2,622		2.02	%		498,518			2,242		1.80	%
Federal Home Loan Bank advances		1,978			23		4.66	%		-			-		-
Subordinated debentures		34,945			465		5.34	%		34,789			466		5.36	%
Total borrowings		36,923			488		5.30	%		34,789			466		5.37	%
Total interest-bearing liabilities		557,379			3,110		2.24	%		533,307			2,708		2.04	%
Noninterest-bearing demand deposits		134,841								139,070
Other noninterest-bearing liabilities		16,930								16,627
Total liabilities		709,150								689,004
Equity		198,199								202,853
Total liabilities and equity	$	907,349							$	891,857
Net interest income				$	9,156							$	8,909
Net interest rate spread							3.60	%							3.61	%
Net interest-earning assets	$	285,646							$	291,462
Net interest margin							4.36	%							4.33	%
Average interest-earning assets to interest-bearing liabilities		151.25	%							154.65	%

BV FINANCIAL, INC.
Average Balance Sheet for the Six Months ended June 30,
'(Dollars in thousands)

	For the Six Months Ended June 30,
	2025								2024
(dollars in thousands)	Average Outstanding Balance			Interest		Average Yield/Rate			Average Outstanding Balance			Interest		Average Yield/Rate
	(Unaudited)
Interest-earning assets:
Loans	$	745,958		$	22,075		5.97	%	$	706,942		$	19,959		5.54	%
Securities available-for-sale		35,821			674		3.79	%		33,745			612		3.61	%
Securities held-to-maturity		6,971			93		2.69	%		10,796			183		3.41	%
Cash, cash equivalents and other interest-earning assets		58,091			1,305		4.55	%		68,856			1,867		5.28	%
Total interest-earning assets		846,841			24,147		5.75	%		820,339			22,621		5.41	%
Noninterest-earning assets		64,667								67,273
Total assets	$	911,508							$	887,612

Interest-bearing liabilities:
Interest-bearing demand deposits	$	78,414			330		0.85	%	$	85,721			473		1.12	%
Savings deposits		121,516			206		0.34	%		143,304			161		0.18	%
Money market deposits		125,326			1,530		2.46	%		90,762			827		1.61	%
Certificates of deposit		196,439			3,157		3.24	%		175,477			2,767		3.09	%
Total interest-bearing deposits		521,695			5,223		2.02	%		495,264			4,228		1.62	%
Federal Home Loan Bank advances		8,453			194		4.63	%		-			-		-
Subordinated debentures		34,925			931		5.38	%		35,297			1,521		8.64	%
Total borrowings		43,378			1,125		5.23	%		35,297			1,521		8.64	%
Total interest-bearing liabilities		565,073			6,348		2.27	%		530,561			5,749		2.31	%
Noninterest-bearing demand deposits		133,419								139,381
Other noninterest-bearing liabilities		15,939								16,384
Total liabilities		714,433								686,326
Equity		197,075								201,286
Total liabilities and equity	$	911,508							$	887,612
Net interest income				$	17,799							$	16,872
Net interest rate spread							3.48	%							3.10	%
Net interest-earning assets	$	281,768							$	289,778
Net interest margin							4.24	%							4.12	%
Average interest-earning assets to interest-bearing liabilities		149.86	%							154.62	%

ALLOWANCE FOR CREDIT LOSS - LOANS
'(Dollars in thousands)

	QTR			YTD
	6/30/2025			6/30/2025

Beginning Balance	$	8,888		$	8,522

Provision for credit loss -loans		242			593

Net Charge-offs (recoveries):
Owner Occupied 1-4		(13	)		(16	)
Non-Owner Occupied 1-4		(14	)		(30	)
Investor Commercial Real Estate		-			-
OO Commercial Real Estate		-			-
Construction & Land		(1	)		(2	)
Farm Loans		-			-
Marine & Consumer		(1	)		4
Guaranteed by the US Gov't		-			-
Commercial		-			-
Net charge-offs (recoveries)		(29	)		(44	)

Ending Balance- ACL for Loans	$	9,159		$	9,159

Balance Reserve for unfunded loan commitments		237			237
Balance Reserve for HTM Securities		3			3
Total ACL	$	9,399		$	9,399

Provision expense for Unfunded Commitments		(63	)		(117	)
Provision expense for HTM Securities		(1	)		(1	)
Total other provision expense	$	(64	)	$	(118	)
Total provision for (recovery of ) credit losses	$	178		$	475

RECONCILIATION TABLE (UNAUDITED)
NON-GAAP ADJUSTED NET INCOME

Non-GAAP Reconciliation

In addition to results presented in accordance with generally accepted accounting principles utilized in the Unites States ("GAAP"), this earnings release contains a non-GAAP financial measure, Non-GAAP adjusted net income. The Company believes this non-GAAP financial measure is useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time. Non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

	Three Months ended June 30,
	2025		2024

Net Income (GAAP)	$	2,861	$	3,399
Plus(minus) tax adjusted items:
2024 Equity Plan Expenses - tax adjusted		839		-
Non GAAP adjusted net income	$	3,700	$	3,399

	Six Months ended June 30,
	2025		2024

Net Income (GAAP)	$	4,960	$	5,973
Plus(minus) tax adjusted items:
2024 Equity Plan Expenses - tax adjusted		1,728		-
Non GAAP adjusted net income	$	6,688	$	5,973

Contact:

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

SOURCE: BV Financial, Inc.

View the original press release on ACCESS Newswire

BV Financial, Inc. Announces Financial Results