Announces Adoption and Regulatory Non-Objection For Stock Repurchase Program

BALTIMORE, MD / ACCESS Newswire / October 17, 2025 / BV Financial, Inc. (NASDAQ:BVFL), the holding company for BayVanguard Bank (the "Bank"), today reported net income of $3.7 million, or $0.41 per diluted share, for the quarter ended September 30, 2025 compared to net income of $3.8 million, or $0.35 per diluted share, for the quarter ended September 30, 2024. Net income for the nine-month period ended September 30, 2025 was $8.7 million or $0.88 per diluted share compared to net income of $9.8 million or $0.91 per diluted share for the nine-month period ended September 30, 2024.

Adjusted net income, a non-GAAP financial metric, was $4.4 million and $4.1 million for the quarters ended September 30, 2025 and 2024, respectively, and $11.1 million and $10.0 million for the nine months ended September 30, 2025, and 2024, respectively. For a reconciliation of net income as reported and non-GAAP adjusted net income, see the table attached to this press release.

Financial Highlights

Return on average assets and return on average equity for the three months ended September 30, 2025, was 1.65% and 7.77%, respectively. Return on average assets and return on average equity for the nine months ended September 30, 2025 was 1.27% and 5.93%, respectively.
Net loans increased $8.6 million or 1.2% to $737.9 million compared to $729.2 million on December 31, 2024.
Deposits increased $12.3 million or 1.9% from $651.5 million on December 31, 2024 to $663.8 million at September 30, 2025.
Non-accrual loans decreased $500,000 to $3.5 million at September 30, 2025 from $4.0 million at December 31, 2024.
The Company recorded a recovery of provision for credit losses of $1.0 million for the three months ended September 30, 2025 and $539,000 for the nine months ended September 30, 2025.
During the quarter ended September 30, 2025, the Company repurchased 782,324 shares of its outstanding common stock at an average price of $16.14.

FINANCIAL CONDITION DISCUSSION

Total Assets. Total assets were $909.4 million at September 30, 2025, a decrease of $2.4 million, or 0.27%, from $911.8 million at December 31, 2024.

Cash and Cash Equivalents. Cash and cash equivalents decreased $7.0 million, or 9.9%, to $63.5 million at September 30, 2025 from $70.5 million at December 31, 2024. The decrease in cash was primarily a result loan growth and the pay-off of $15 million in FHLB borrowings offset by deposit growth and securities repayments.

Loans Receivable. Loans receivable increased $8.3 million, or 1.1%, to $746.1 million at September 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 investor commercial real estate loans, non-owner occupied 1-4 loans, owner occupied 1-4 junior liens, owner occupied commercial real estate, marine and farm loans.

Securities. Securities available for sale decreased by $2.8 million or 7.5% from December 31, 2024 as paydowns and maturities were not fully replaced with new purchases. The held-to-maturity portfolio experienced a slight decrease due to paydowns.

Total Liabilities. Total liabilities increased $2.8 million or 0.4%, to $719.2 million at September 30, 2025 from $716.3 million at December 31, 2024. The increase was due primarily to the increase in deposits and other liabilities offset by a decrease in borrowings.

Deposits. Total deposits increased $12.3 million, or 1.9% to $663.8 million at September 30, 2025 from $651.5 million at December 31, 2024. Interest-bearing deposits increased $7.3 million, or 1.4%, to $529.0 million at September 30, 2025 from $521.8 million at December 31, 2024. Noninterest bearing deposits increased $5.0 million, or 3.9%, to $134.7 million at September 30, 2025 from $129.7 million at December 31, 2024.

Stockholders' Equity. Stockholders' equity decreased $5.3 million, or 2.7%, to $190.2 million at September 30, 2025 from $195.5 million at December 31, 2024 as net income, the decrease in the accumulative other comprehensive loss and the impact of equity compensation plans was offset by $17.7 million in stock repurchase during the year-to-date period.

RESULTS OF OPERATION DISCUSSION

Net Income. Net income was $3.7 million or $0.41 per diluted share for the three months ended September 30, 2025 compared to $3.8 million or $0.35 per diluted share for the three months ended September 30, 2024. Net income was $8.7 million or $0.88 per diluted share for the nine months ended September 30, 2025 compared to $9.8 million or $0.91 per diluted share for the nine months ended September 30, 2024. The decreases were due to higher compensation expenses and smaller credits to the provision for credit losses offsetting higher net interest and other income.

Net Interest Income. Net interest income was $9.4 million for the three months ended September 30, 2025 compared to $9.3 million for the three months ended September 30, 2024. The net interest margin for the three months ended September 30, 2025 was 4.40% compared to 4.49% for the three months ended September 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 $27.1 million for the nine months ended September 30, 2025, compared to $26.2 million in the nine months ended September 30, 2024. The net interest margin for the nine months ended September 30, 2025 was 4.29% compared to 4.25% for the nine months ended September 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 September 30, 2025, noninterest income totaled approximately $684,000 compared to $696,000 for the quarter ended September 30, 2024.

For the nine months ended September 30, 2025 and September 30, 2024, noninterest income totaled $1.9 million.

Noninterest Expense. For the three months ended September 30, 2025, noninterest expense totaled $5.9 million compared to $5.5 million in the three months ended September 30, 2024. Compensation and benefits increased $570,000, primarily due to the costs of the 2024 equity incentive plan. For the quarter ended September 30, 2024, the expenses of the 2024 equity incentive plan were only applicable for one month based on the grant dates of the awards. All other expense categories combined decreased by $165,000 in the quarter ended September 30, 2025 when compared to the quarter ended September 30, 2024.

For the nine months ended September 30, 2025, noninterest expense totaled $17.8 million as compared to $15.3 million in the nine months ended September 30, 2024. Compensation and benefits expense increased $2.9 million. For the nine months ended September 30, 2025, the expenses of the 2024 equity incentive plan were applicable for all nine months compared to one month for the nine month period ended September 30, 2024. The increase in plan expenses totaled $2.9 million in the 2025 year-to-date period when compared to the same period in 2024. All other expense categories combined decreased by $374,000 in the quarter ended September 30, 2025 when compared to the quarter ended September 30, 2024.

Asset Quality. Non-performing assets at September 30, 2025 totaled $3.5 million consisting of $3.5 million in nonperforming loans and $0 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 September 30, 2025, the allowance for credit losses on loans was $8.2 million, which represented 1.10% of total loans and 233.5% 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.

STOCK REPURCHASE PROGRAM

The Company has adopted, and received the non-objection of the Federal Reserve Bank of Richmond (the "Federal Reserve") to initiate, a stock repurchase program for up to 10% of the Company's outstanding shares of common stock (approximately 9,536,094 shares). This is the Company's third stock repurchase program since completing its mutual-to-stock conversion and related stock offering on July 31, 2023. The second stock repurchase program was completed in September 2025.

Repurchases are expected to commence after the date of this press release. Once initiated, shares of the Company's common stock may be repurchased pursuant to the program in open market or private transactions, through block trades, or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. The repurchase program will expire on June 30, 2026, unless extended by the Board of Directors pursuant to further non-objection from the Federal Reserve.

Repurchases will be made at management's discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company's financial performance. Open market purchases will be subject to the limitations set forth in Rule 10b-18 of the Securities and Exchange Commission and other applicable legal requirements.

The timing and amount of share repurchases under this authorization may be suspended, terminated or modified by the Company at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The Company is not obligated to repurchase any particular number of shares or any shares in any specific time period.

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, the impact of the federal government shutdown, 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 twelve 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.

Contact:

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

BV FINANCIAL, INC.
Consolidated Financial Ratios

	At or For the Three Months						At or For the Nine Months
	Ended September 30,						Ended September 30,
	2025			2024			2025			2024
Performance Ratios⁽¹⁾:
Return on average assets		1.65	%		1.70	%		1.27	%		1.46	%
Return on average equity		7.77	%		7.32	%		5.93	%		6.39	%
Interest rate spread⁽²⁾		3.65	%		3.71	%		3.54	%		3.48	%
Net interest margin⁽³⁾		4.40	%		4.49	%		4.29	%		4.25	%
Non-interest expense to average assets		2.59	%		2.46	%		2.61	%		2.29	%
Efficiency ratio⁽⁴⁾		58.58	%		54.73	%		61.25	%		54.53	%
Average interest-earning assets to average interest-bearing liabilities		150.18	%		156.49	%		149.97	%		155.24	%
Average equity to average assets		21.19	%		23.29	%		21.48	%		22.90	%
Credit Quality Ratios:
Allowance for credit losses as a percentage of total loans		1.10	%		1.15	%		1.10	%		1.15	%
Allowance for credit losses as a percentage of non-performing loans		233.53	%		201.60	%		233.53	%		201.60	%
Net charge-offs (recoveries) to average outstanding loans during the year		0.00	%		-0.04	%		0.00	%		-0.04	%
Non-performing loans as a percentage of total loans		0.47	%		0.57	%		0.47	%		0.57	%
Non-performing loans as a percentage of total assets		0.39	%		0.44	%		0.39	%		0.44	%
Total non-performing assets as a percentage of total assets		0.39	%		0.46	%		0.39	%		0.46	%

Other:
Number of offices		12			13			12			13
Number of full-time equivalent employees		105			111			105			111
Weighted average shares outstanding		9,078,667			10,752,069			9,580,446			10,686,024

(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

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

Assets
Cash	$	6,061		$	5,842
Interest-bearing deposits in other banks		57,485			64,658
Cash and cash equivalents		63,546			70,500
Equity Investment		405			391
Securities available for sale		34,482			37,259
Securities held to maturity (fair value of $5,131 and $5,171, ACL of $2 and $4)		5,784			5,979
Loans held for maturity		746,072			737,760
Allowance for Credit Losses		(8,197	)		(8,522	)
Net Loans		737,875			729,238
Foreclosed real estate		-			159
Premises and equipment, net		12,686			13,224
Federal Home Loan Bank of Atlanta stock, at cost		656			1,366
Investment in life insurance		20,347			20,058
Accrued interest receivable		3,049			3,161
Goodwill		14,420			14,420
Intangible assets, net		696			831
Deferred tax assets, net		9,267			8,899
Other assets		6,173			6,336
Total assets	$	909,386		$	911,821
Liabilities and Stockholders' Equity
Liabilities
Noninterest-bearing deposits	$	134,742		$	129,724
Interest-bearing deposits		529,048			521,767
Total deposits		663,790			651,491

FHLB borrowings		-			15,000
Subordinated debentures		35,000			34,883
Other liabilities		20,386			14,948
Total liabilities		719,176			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; 9,536,094 shares issued and outstanding as of September 30, 2025; 10,645,284 shares issued and outstanding as of December 31, 2024		95			106
Paid-in capital		80,151			94,679
Unearned common stock held by employee stock ownership plan		(7,023	)		(7,160	)
Retained earnings		118,185			109,495
Accumulated other comprehensive loss		(1,198	)		(1,621	)
Total stockholders' equity		190,210			195,499
Total liabilities and stockholders' equity	$	909,386		$	911,821

BV FINANCIAL, INC.
Consolidated Statements of Income

(dollars in thousands, except per share amounts)	Three Months Ended September 30,						Nine Months Ended September 30,
Interest Income	2025			2024			2025			2024
Loans, including fees	$	11,519		$	10,522		$	33,594		$	30,481
Investment securities available for sale		329			353			1,003			966
Investment securities held to maturity		46			83			139			266
Other interest income		633			1,192			1,938			3,058
Total interest income		12,527			12,150			36,674			34,771
Interest Expense
Interest on deposits		2,712			2,381			7,935			6,610
Interest on FHLB borrowings		-			-			194			-
Interest on Subordinated debentures		465			466			1,396			1,985
Total interest expense		3,177			2,847			9,525			8,595
Net interest income		9,350			9,303			27,149			26,176
Provision for (recovery of) credit losses		(1,014	)		(714	)		(539	)		(806	)
Net interest income after provision for (recovery of) credit losses		10,364			10,017			27,688			26,982
Noninterest Income
Service fees on deposits		122			103			337			303
Fees from debit cards		183			175			524			529
Income from investment in life insurance		88			91			289			290
Gain on foreclosed real estate		26			-			26			-
(Loss) on sale of fixed assets		(8	)		-			(8	)		-
Other income		273			327			760			747
Total noninterest income		684			696			1,928			1,869
Noninterest Expense
Compensation and related benefits		4,064			3,494			12,606			9,714
Occupancy		415			396			1,238			1,242
Data processing		372			366			1,164			1,117
Advertising		5			6			14			16
Professional fees		239			400			718			757
Equipment		92			97			278			301
Foreclosed real estate and repossessed assets holding costs		2			(3	)		5			13
Amortization of intangible assets		45			45			135			135
FDIC insurance premiums		83			82			247			246
Other expense		561			590			1,405			1,751
Total noninterest expense		5,878			5,473			17,810			15,292
Net income before tax		5,170			5,240			11,806			13,559
Income tax expense		1,440			1,442			3,116			3,788
Net income	$	3,730		$	3,798		$	8,690		$	9,771
Basic earnings per share	$	0.41		$	0.35		$	0.89		$	0.91
Diluted earnings per share	$	0.41		$	0.35		$	0.88		$	0.91

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

	For the Three Months Ended September 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	$	743,119		$	11,519		6.15	%	$	690,170		$	10,522		6.05	%
Securities available-for-sale		35,107			329		3.72	%		36,201			353		3.87	%
Securities held-to-maturity		6,465			46		2.82	%		9,937			83		3.31	%
Cash, cash equivalents and other interest-earning assets		57,784			633		4.38	%		86,322			1,192		5.48	%
Total interest-earning assets		842,475			12,527		5.90	%		822,630			12,150		5.86	%
Noninterest-earning assets		63,948								68,767
Total assets	$	906,423							$	891,397

Interest-bearing liabilities:
Interest-bearing demand deposits	$	75,302			151		0.80	%	$	79,652			207		1.03	%
Savings deposits		117,422			136		0.46	%		128,918			89		0.27	%
Money market deposits		128,265			787		2.43	%		108,518			669		2.45	%
Certificates of deposit		205,022			1,638		3.17	%		173,751			1,416		3.23	%
Total interest-bearing deposits		526,011			2,712		2.05	%		490,839			2,381		1.92	%
Subordinated debentures		34,983			465		5.27	%		34,827			466		5.30	%
Total borrowings		34,983			465		5.27	%		34,827			466		5.30	%
Total interest-bearing liabilities		560,994			3,177		2.25	%		525,666			2,847		2.15	%
Noninterest-bearing demand deposits		137,179								140,039
Other noninterest-bearing liabilities		16,191								18,101
Total liabilities		714,364								683,806
Equity		192,059								207,591
Total liabilities and equity	$	906,423							$	891,397
Net interest income				$	9,350							$	9,303
Net interest rate spread							3.65	%							3.71	%
Net interest-earning assets	$	281,481							$	296,964
Net interest margin							4.40	%							4.49	%
Average interest-earning assets to interest-bearing liabilities		150.18	%							156.49	%

BV FINANCIAL, INC.
Average Balance Sheet for the Nine Months ended September 30,
(Dollars in thousands)

	For the Nine Months Ended September 30,
	2025								2024
(dollars in thousands)	Average Outstanding Balance			Interest		Average Yield/Rate			Average Outstanding Balance			Interest		Average Yield/Rate

Interest-earning assets:
Loans	$	745,001		$	33,594		6.03	%	$	701,310		$	30,481		5.79	%
Securities available-for-sale		35,580			1,003		3.77	%		34,569			966		3.72	%
Securities held-to-maturity		6,801			139		2.73	%		10,507			266		3.37	%
Cash, cash equivalents and other interest-earning assets		57,988			1,938		4.49	%		74,720			3,058		5.46	%
Total interest-earning assets		845,370			36,674		5.80	%		821,106			34,771		5.64	%
Noninterest-earning assets		64,424								68,985
Total assets	$	909,794							$	890,091

Interest-bearing liabilities:
Interest-bearing demand deposits	$	77,365			482		0.83	%	$	83,683			681		1.08	%
Savings deposits		120,136			342		0.38	%		138,474			250		0.24	%
Money market deposits		126,316			2,318		2.45	%		96,724			1,496		2.06	%
Certificates of deposit		199,332			4,793		3.21	%		174,896			4,183		3.19	%
Total interest-bearing deposits		523,149			7,935		2.03	%		493,777			6,610		1.78	%
Federal Home Loan Bank advances		5,604			194		4.63	%		-			-		-
Subordinated debentures		34,944			1,396		5.34	%		35,139			1,985		7.53	%
Total borrowings		40,548			1,590		5.24	%		35,139			1,985		7.53	%
Total interest-bearing liabilities		563,697			9,525		2.26	%		528,916			8,595		2.16	%
Noninterest-bearing demand deposits		134,686								139,642
Other noninterest-bearing liabilities		16,027								17,676
Total liabilities		714,410								686,234
Equity		195,384								203,857
Total liabilities and equity	$	909,794							$	890,091
Net interest income				$	27,149							$	26,176
Net interest rate spread							3.54	%							3.48	%
Net interest-earning assets	$	281,673							$	292,190
Net interest margin							4.29	%							4.25	%
Average interest-earning assets to interest-bearing liabilities		149.97	%							155.24	%

ALLOWANCE FOR CREDIT LOSS - LOANS
(Dollars in thousands)

	QTR			YTD
	9/30/2025			9/30/2025

Beginning Balance	$	9,159		$	8,522

Provision for credit loss -loans		(980	)		(387	)

Net Charge-offs (recoveries):
Owner Occupied 1-4		(3	)		(19	)
Non-Owner Occupied 1-4		(16	)		(47	)
Investor Commercial Real Estate		-			-
OO Commercial Real Estate		-			-
Construction & Land		(1	)		(2	)
Farm Loans		-			-
Marine & Consumer		2			6
Guaranteed by the US Gov't		-			-
Commercial		-			-
Net charge-offs (recoveries)		(18	)		(62	)

Ending Balance- ACL for Loans	$	8,197		$	8,197

Balance Reserve for unfunded loan commitments		203			203
Balance Reserve for HTM Securities		2			2
Total ACL	$	8,402		$	8,402

Provision expense for Unfunded Commitments		(33	)		(151	)
Provision expense for HTM Securities		(1	)		(1	)
Total other provision expense	$	(34	)	$	(152	)
Total provision for (recovery of ) credit losses	$	(1,014	)	$	(539	)

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 September 30,
	2025		2024

Net Income (GAAP)	$	3,730	$	3,798
Plus(minus) tax adjusted items:
2024 Equity Plan Expenses - tax adjusted		701		279
Non GAAP adjusted net income	$	4,431	$	4,077

	Nine Months ended September 30,
	2025		2024

Net Income (GAAP)	$	8,690	$	9,771
Plus(minus) tax adjusted items:
2024 Equity Plan Expenses - tax adjusted		2,415		279
Non GAAP adjusted net income	$	11,105	$	10,050

SOURCE: BV Financial, Inc.

View the original press release on ACCESS Newswire

BV Financial, Inc. Announces Financial Results