EX-99.1 2 bvfl-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

Contact:

Michael J. Dee

Chief Financial Officer

(410) 477- 5000

 

BV FINANCIAL, INC. ANNOUNCES FINANCIAL RESULTS

Baltimore, Maryland, July 26, 2023– BV Financial, Inc. (OTCBB: BVFL), the holding company for BayVanguard Bank (the “Bank”), today reported net income of $3.9 million, or $0.52 per diluted share, for the quarter ended June 30, 2023 compared to net income of $2.8 million, or $0.37 per diluted share, for the quarter ended June 30, 2022. Net income for the six-month period ended June 30, 2023 was $7.0 million or $0.94 per diluted share compared to net income of $5.2 million or $0.70 per diluted share for the six-month period ended June 30, 2022.

Financial Highlights

Return on average assets and return on average equity for the three months ended June 30, 2023 were 1.78% and 15.24%, respectively.
Nets loans held to maturity increased $35.7 million or 5.4% compared to December 31, 2022.
Deposits decreased $14.5 million or 2.1% from $684.6 million at December 31, 2022 to $670.1 million at June 30, 2023.
Foreclosed real estate decreased $1.4 million or 72.1% as a commercial property was sold at a gain of $678,000.
Total loan delinquencies at June 30, 2023 decreased by 65.2% to $3.7 million or 0.53% of loans from $10.6 million or 1.59% of total loans at December 31, 2022.
The Company recorded a credit to the provision for credit losses of $150,000. Net recoveries for the quarter exceeded the required increase in the allowance for credit losses (“ACL”)– loans. Additionally, the required ACL for unfunded commitments decreased by $88,000.

Total Assets. Total assets were $920.8 million at June 30, 2023, an increase of $75.9 million, or 8.9%, from $845.0 million at December 31, 2022. The increase was due primarily to a $45.7 million increase in cash, and a $35.7 million increase in gross loans receivable to $702.9 million at June 30, 2023, partially offset by decreases of $1.4 million in repossessed assets and $500,000 in the cash value of life insurance.

 

Cash and Cash Equivalents. Cash and cash equivalents increased $41.6 million, or 60.6%, to $110.3 million at June 30, 2023 from $68.7 million at December 31, 2022 as funds were held by


BayVanguard Bank in conjunction with the stock offering of BV Financial, Inc. The offering is expected to close on July 31, 2023.

 

Net Loans Receivable. Net loans receivable increased $35.7 million, or 5.4%, to $694.8 million at June 30, 2023 from $659.1 million at December 31, 2022. Increases in commercial real estate and construction loans offset decreases in owner and non-owner occupied one- to four-family loans and commercial loans. The increase in construction loans was due primarily to draws on existing lines of credit. The decreases in one- to four-family loans and commercial loans were due primarily to payoffs and paydowns exceeding originations during the six months ended June 30, 2023.

 

Securities. Securities increased $0.9 million, or 2.0%, to $44.4 million at June 30, 2023 from $43.5 million at December 31, 2022. This increase was primarily due to an increase of $4.0 million in agency securities, partially offset by a $2.5 million decrease in available for sale mortgage-backed securities to $28.6 million at June 30, 2023. Purchases exceeded paydowns and maturities of debt securities for the period.

 

Total Liabilities. Total liabilities increased $69.1 million or 9.3%, to $816.4 million at June 30, 2023 from $747.2 million at December 31, 2022. The increase was primarily due to $54.9 million in funds collected by the Company for the capital raise in process as of June 30, 2023, a $25.5 million increase in Federal Home Loan Bank borrowings, partially offset by a decrease in total deposits of $14.5 million.

 

Deposits. Total deposits decreased $14.5 million, or 2.1%, to $670.1 million at June 30, 2023 from $684.6 million at December 31, 2022. Interest-bearing deposits increased $7.0 million, or 1.4%, to $524.3 million at June 30, 2023 from $517.4 million at December 31, 2022. Noninterest bearing deposits decreased $21.5 million, or 12.9%, to $145.7 million at June 30, 2023 from $167.2 million at December 31, 2022.

 

The decrease in deposits primarily occurred in the month of January 2023 when deposits decreased $14.5 million, primarily from commercial customers making made routine annual post-year end distributions, moved cash to alternative investments and made certain large capital expenditures. The Company has been adjusting interest rates paid on deposits to retain and grow these balances. The turmoil experienced in the banking system in early March 2023 has not led to a measurable increase in customer inquiries or withdrawals.

 

Federal Home Loan Bank Borrowings. The Company had $37.5 million in Federal Home Loan Bank borrowings at June 30, 2023 compared to $12.0 million in Federal Home Loan Bank borrowings at December 31, 2022. The increase was used to fund loan growth and to maintain on balance sheet liquidity.

 

Stockholders’ Equity. Stockholders’ equity increased $6.7 million, or 6.9%, to $104.5 million at June 30, 2023, primarily due to $7.0 million in net income and a $547,000 negative adjustment to retained earnings resulting from the adoption of ASC Topic 326 “Financial Instruments-Credit Losses” during the quarter ended March 31, 2023.

 


Net Interest Income. Net interest income was $8.2 million for the three months ended June 30, 2023 compared to $7.2 million in the three months ended June 30, 2022.The net interest margin for the three months ended June 30, 2023 was 4.19% compared to 3.70% for the three months ended June 30, 2022. The 1.23% increase in the yield on interest-earning assets offset the 1.00% increase in the cost of deposits and borrowed money. The increase in the yield on interest-earning assets was due to higher rates earned on cash balances and loans due to higher market interest rates. The increase in the cost of interest-bearing liabilities was due to an increased reliance on advances from the Federal Home Loan Bank of Atlanta and higher rates paid on deposits and a shift to higher cost certificates of deposits.

Net interest income was $16.4 million for the six months ended June 30, 2023, compared to $13.7 million in the six months ended June 30, 2022.The net interest margin for the six months ended June 30, 2023 was 4.26% compared to 3.60% for the six months ended June 30, 2022. The 1.20% increase in the yield on interest-earning assets offset the 0.72% increase in the cost of deposits and borrowed money. The increase in the yield on interest-earning assets was due to higher rates earned on cash balances and loans due to higher market interest rates. The increase in the cost of interest-bearing liabilities was due to an increased reliance on advances from the Federal Home Loan Bank of Atlanta and higher rates paid on deposits and a shift to higher cost certificates of deposits.

Noninterest Income. For the three months ended June 30, 2023, noninterest income totaled $1.4 million compared to $1.2 million in the quarter ended June 30, 2022. In the quarter ended June 30, 2023, the Company recognized a gain of $678,000 on the sale of foreclosed real estate. In the quarter ended June 30, 2022, the Company recognized a gain of $235,000 on the sale of a former branch building and a $364,000 gain on bargain purchase from the North Arundel Savings Bank acquisition.

For the six months ended June 30, 2023, noninterest income totaled $2.2 million as compared to $2.7 million for the six months ended June 30, 2022. In the six-months ended June 30, 2023, the Company recognized a gain of $678,000 on the sale of foreclosed real estate and $225,000 in excess life insurance proceeds. In the six months ended June 30, 2022, the Company recognized a $694,000 gain on bargain purchase and $620,000 in prepayment penalties on loans.

Noninterest Expense. For the three months ended June 30, 2023, noninterest expense totaled $4.5 million compared to $4.7 million in the three months ended June 30, 2022. Expenses in the quarter ended June 30, 2022 included $727,000 in data processing conversion expenses related the acquisition of North Arundel Savings Bank.

For the six months ended June 30, 2023, noninterest expense totaled $9.2 million as compared to $9.0 million in the six months ended June 30, 2023. Increases in compensation and benefits, professional fees and foreclosed real estate holding costs were partially offset by lower other expenses. Other expenses in the six months ended June 30, 2022 included the above mentioned $727,000 in data processing conversion expenses.

Asset Quality. Non-performing assets at June 30, 2023 totaled $5.1 million consisting of $4.6 million in nonperforming loans and $555,000 in other real estate owned, compared to $7.9 million at December 31, 2022, consisting of $5.9 million in non-performing loans and $2.0 million in other


real estate owned. At June 30 2023, the allowance for credit losses on loans was $8.2 million, which represented 1.16% of total loans and 179.1% of non-performing loans compared to $3.8 million at December 31, 2022, which represented 0.57% of total loans and 64.8% of non-performing loans. In addition, at December 31, 2022, the Bank had credit marks of $3.8 million that was not included in the Bank’s allowance for loan loss estimate which is in accordance with U.S. Generally Accepted Accounting Principles. The credit impairment allowances were established for loans acquired previous mergers.

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, 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 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, 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 fifteen 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.

 

 

 

 

 

 

 

 

 

 

 

At or For the Three Months

 

At or For the Six Months

 

 

Ended June 30,

 

Ended June 30,

 

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

Performance Ratios(1):

 

 

 

 

 

 

 

 

Return on average assets

 

1.78

%

 

1.28

%

 

1.62

%

 

1.22

%

Return on average equity

 

15.24

%

 

12.21

%

 

13.90

%

 

11.65

%

Interest rate spread(2)

 

3.77

%

 

3.55

%

 

3.92

%

 

3.44

%

Net interest margin(3)

 

4.19

%

 

3.70

%

 

4.26

%

 

3.59

%

Non-interest expense to average assets

 

2.07

%

 

2.17

%

 

2.14

%

 

2.12

%

Efficiency ratio(4)

 

46.57

%

 

57.74

%

 

49.27

%

 

56.63

%

Average interest-earning assets to average interest-bearing liabilities

 

135.48

%

 

136.03

%

 

135.05

%

 

135.39

%

Average equity to average assets

 

11.68

%

 

10.50

%

 

11.67

%

 

10.47

%

Credit Quality Ratios:(6)

 

 

 

 

 

 

 

 

Allowance for credit losses as a percentage of total loans

 

1.16

%

 

0.49

%

 

1.16

%

 

0.49

%

Allowance for credit losses as a percentage of non-performing loans

 

179.14

%

 

70.75

%

 

179.14

%

 

70.75

%

Net (charge-offs) recoveries to average outstanding loans during the year

 

-0.01

%

 

0.00

%

 

-0.02

%

 

-0.01

%

Non-performing loans as a percentage of total loans

 

0.65

%

 

0.69

%

 

0.65

%

 

0.69

%

Non-performing loans as a percentage of total assets

 

0.50

%

 

0.52

%

 

0.50

%

 

0.52

%

Total non-performing assets as a percentage of total assets

 

0.56

%

 

0.75

%

 

0.56

%

 

0.75

%

 

 

 

 

 

 

 

 

 

Other:

 

 

 

 

 

 

 

 

Number of offices

15

 

17

 

15

 

17

 

Number of full-time equivalent employees

117

 

109

 

117

 

109

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

 

 

 

 

 

(6) The Company adopted ASC 326 on January 1, 2023. Some ratios are not comparable pre and post adoption of this accounting standard.

 

 

 

 

 

 

 

 

 


BV FINANCIAL,INC.

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

June 30, 2023

 

 

December 31, 2022

 

(dollars in thousands, except share amounts)

 

(unaudited)

 

 

derived from audited financial statements

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Cash

 

$

23,934

 

 

$

12,704

 

Interest-bearing deposits in other banks

 

 

86,333

 

 

 

55,948

 

Cash and cash equivalents

 

 

110,267

 

 

 

68,652

 

Equity Investment

 

 

217

 

 

 

221

 

Securities available for sale

 

 

34,067

 

 

 

33,034

 

Securities held to maturity (fair value of $9,175 and $9,660, ACL of $7 and $0)

 

 

10,325

 

 

 

10,461

 

Loans held for maturity

 

 

702,978

 

 

 

662,944

 

Allowance for Credit Losses

 

 

(8,163

)

 

 

(3,813

)

Net Loans

 

 

694,815

 

 

 

659,131

 

Foreclosed real estate

 

 

555

 

 

 

1,987

 

Premises and equipment, net

 

 

14,413

 

 

 

15,176

 

Federal Home Loan Bank of Atlanta stock, at cost

 

 

2,052

 

 

 

977

 

Investment in life insurance

 

 

19,480

 

 

 

19,983

 

Accrued interest receivable

 

 

3,193

 

 

 

2,952

 

Goodwill

 

 

14,420

 

 

 

14,420

 

Intangible assets, net

 

 

1,102

 

 

 

1,195

 

Deferred tax assets, net

 

 

8,888

 

 

 

9,113

 

Other assets

 

 

7,041

 

 

 

7,661

 

Total assets

 

$

920,835

 

 

$

844,963

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

145,686

 

 

$

167,202

 

Interest-bearing deposits

 

 

524,378

 

 

 

517,416

 

Total deposits

 

 

670,064

 

 

 

684,618

 

 

 

 

 

 

 

 

FHLB borrowings

 

 

37,500

 

 

 

12,000

 

Subordinated Debentures

 

 

37,145

 

 

 

37,039

 

Other liabilities

 

 

71,646

 

 

 

13,555

 

Total liabilities

 

 

816,355

 

 

 

747,212

 

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 2023 and 14,000,000 authorized in 2022; 7,430,095 shares issued and 7,430,095 shares outstanding as of June 30, 2023; 7,418,575 shares issued and 7,418,575 shares outstanding as of December 31, 2022

 

74

 

 

74

 

Paid-in capital

 

 

15,599

 

 

 

15,406

 

Retained earnings

 

 

91,079

 

 

 

84,612

 

Accumulated other comprehensive loss

 

 

(2,272

)

 

 

(2,341

)

Total stockholders' equity

 

 

104,480

 

 

 

97,751

 

Total liabilities and stockholders' equity

 

$

920,835

 

 

$

844,963

 

 

 

 

 

 

 

 

 


BV FINANCIAL,INC.

 

Consolidated Statements of Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands, except per share amounts)

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

Interest Income

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Loans, including fees

 

$

9,327

 

 

$

7,573

 

 

$

18,100

 

 

$

14,776

 

Investment securities available for sale

 

 

277

 

 

 

141

 

 

 

543

 

 

 

277

 

Investment securities held to maturity

 

 

92

 

 

 

54

 

 

 

186

 

 

 

89

 

Other interest income

 

 

843

 

 

 

232

 

 

 

1,398

 

 

 

268

 

Total interest income

 

 

10,539

 

 

 

8,000

 

 

 

20,227

 

 

 

15,410

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

1,266

 

 

 

321

 

 

 

1,931

 

 

 

688

 

Interest on FHLB borrowings

 

 

495

 

 

 

 

 

 

783

 

 

 

 

Interest on Subordinated debentures

 

 

541

 

 

 

509

 

 

 

1,075

 

 

 

1,012

 

Other interest expense

 

 

 

 

 

5

 

 

 

 

 

 

2

 

Total interest expense

 

 

2,302

 

 

 

835

 

 

 

3,789

 

 

 

1,702

 

Net interest income

 

 

8,237

 

 

 

7,165

 

 

 

16,438

 

 

 

13,708

 

Provision for (recovery of) credit losses

 

 

(150

)

 

 

224

 

 

 

(147

)

 

 

401

 

Net interest income after provision for credit losses

 

 

8,387

 

 

 

6,941

 

 

 

16,585

 

 

 

13,307

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

Service fees on deposits

 

 

101

 

 

 

121

 

 

 

195

 

 

 

234

 

Fees from debit cards

 

 

188

 

 

 

198

 

 

 

360

 

 

 

381

 

Income from investment in life insurance

 

 

145

 

 

 

128

 

 

 

464

 

 

 

221

 

Gain on sale of repossessed assets

 

 

678

 

 

 

 

 

 

678

 

 

 

 

Gain on sale of fixed assets

 

 

 

 

 

235

 

 

 

 

 

 

235

 

Other income

 

 

258

 

 

 

500

 

 

 

481

 

 

 

1,697

 

Total noninterest income

 

 

1,370

 

 

 

1,182

 

 

 

2,178

 

 

 

2,668

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and related benefits

 

 

2,859

 

 

 

2,413

 

 

 

5,738

 

 

 

4,815

 

Occupancy

 

 

366

 

 

 

447

 

 

 

782

 

 

 

911

 

Data processing

 

 

340

 

 

 

367

 

 

 

689

 

 

 

731

 

Advertising

 

 

14

 

 

 

7

 

 

 

28

 

 

 

11

 

Professional fees

 

 

176

 

 

 

144

 

 

 

376

 

 

 

319

 

Equipment

 

 

108

 

 

 

102

 

 

 

213

 

 

 

214

 

Foreclosed real estate and repossessed assets holding costs

 

 

32

 

 

 

48

 

 

 

159

 

 

 

58

 

Amortization of intangible assets

 

 

46

 

 

 

46

 

 

 

92

 

 

 

91

 

FDIC insurance premiums

 

 

64

 

 

 

55

 

 

 

118

 

 

 

108

 

Other

 

 

539

 

 

 

1,060

 

 

 

1,049

 

 

 

1,789

 

Total noninterest expense

 

 

4,544

 

 

 

4,689

 

 

 

9,244

 

 

 

9,047

 

Net income before tax

 

 

5,213

 

 

 

3,434

 

 

 

9,519

 

 

 

6,928

 

Income tax expense

 

 

1,314

 

 

 

669

 

 

 

2,505

 

 

 

1,746

 

Net income

 

$

3,899

 

 

$

2,765

 

 

$

7,014

 

 

$

5,182

 

Basic earnings per share

 

$

0.52

 

 

$

0.37

 

 

$

0.94

 

 

$

0.70

 

Diluted earnings per share

 

$

0.52

 

 

$

0.37

 

 

$

0.94

 

 

$

0.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


BV FINANCIAL,INC.

 

Average Balance Sheet for the Quarters ended June, 30

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30,

 

 

2023

 

2022

 

(dollars in thousands)

 

Average Outstanding Balance

 

 

Interest

 

 

Average Yield/Rate

 

Average Outstanding Balance

 

 

Interest

 

 

Average Yield/Rate

 

 

(Unaudited)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

679,179

 

 

$

9,327

 

 

5.51%

 

$

627,675

 

 

$

7,573

 

 

 

4.84

%

Securities available-for-sale

 

 

35,240

 

 

 

277

 

 

3.15%

 

 

37,759

 

 

 

141

 

 

 

1.49

%

Securities held-to-maturity

 

 

12,415

 

 

 

92

 

 

2.99%

 

 

7,976

 

 

 

53

 

 

 

2.70

%

Cash, cash equivalents and other interest-earning assets

 

 

61,780

 

 

 

843

 

 

5.49%

 

 

102,406

 

 

 

233

 

 

 

0.14

%

Total interest-earning assets

 

 

788,614

 

 

 

10,539

 

 

5.36%

 

 

775,816

 

 

 

8,000

 

 

 

4.13

%

Noninterest-earning assets

 

 

87,991

 

 

 

 

 

 

 

 

86,772

 

 

 

 

 

 

 

Total assets

 

$

876,605

 

 

 

 

 

 

 

$

862,588

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

87,647

 

 

 

143

 

 

0.65%

 

$

94,061

 

 

 

15

 

 

 

0.06

%

Savings deposits

 

 

159,790

 

 

 

52

 

 

0.13%

 

 

171,425

 

 

 

24

 

 

 

0.06

%

Money market deposits

 

 

91,957

 

 

 

140

 

 

0.61%

 

 

108,593

 

 

 

48

 

 

 

0.18

%

Certificates of deposit

 

 

168,064

 

 

 

931

 

 

2.22%

 

 

159,327

 

 

 

234

 

 

 

0.59

%

Total interest-bearing deposits

 

 

507,458

 

 

 

1,266

 

 

1.00%

 

 

533,406

 

 

 

321

 

 

 

0.24

%

Federal Home Loan Bank advances

 

 

37,500

 

 

 

495

 

 

5.29%

 

 

 

 

 

 

 

—%

 

Subordinated debentures

 

 

37,122

 

 

 

541

 

 

5.85%

 

 

36,911

 

 

 

514

 

 

 

5.53

%

Total borrowings

 

 

74,622

 

 

 

1,036

 

 

5.57%

 

 

36,911

 

 

 

514

 

 

 

5.53

%

Total interest-bearing
liabilities

 

 

582,080

 

 

 

2,302

 

 

1.59%

 

 

570,317

 

 

 

835

 

 

 

0.58

%

Noninterest-bearing demand deposits

 

 

149,444

 

 

 

 

 

 

 

 

175,619

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

42,715

 

 

 

 

 

 

 

 

26,066

 

 

 

 

 

 

 

Total liabilities

 

 

774,239

 

 

 

 

 

 

 

 

772,002

 

 

 

 

 

 

 

Equity

 

 

102,366

 

 

 

 

 

 

 

 

90,586

 

 

 

 

 

 

 

Total liabilities and equity

 

$

876,605

 

 

 

 

 

 

 

$

862,588

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

8,237

 

 

 

 

 

 

 

$

7,165

 

 

 

 

Net interest rate spread

 

 

 

 

 

 

 

3.77%

 

 

 

 

 

 

 

 

3.55

%

Net interest-earning assets

 

$

206,534

 

 

 

 

 

 

 

$

205,499

 

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

4.19%

 

 

 

 

 

 

 

 

3.70

%

Average interest-earning assets to interest-bearing liabilities

 

 

135.48

%

 

 

 

 

 

 

 

136.03

%

 

 

 

 

 

 

 


BV FINANCIAL,INC.

 

Average Balance Sheet for the Six Months ended June, 30

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

2022

 

(dollars in thousands)

 

Average Outstanding Balance

 

 

Interest

 

 

Average Yield/Rate

 

Average Outstanding Balance

 

 

Interest

 

 

Average Yield/Rate

 

 

(Unaudited)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

673,564

 

 

$

18,100

 

 

5.42%

 

$

621,696

 

 

$

14,776

 

 

 

4.79

%

Securities available-for-sale

 

 

35,685

 

 

 

543

 

 

3.07%

 

 

38,370

 

 

 

277

 

 

 

1.45

%

Securities held-to-maturity

 

 

12,166

 

 

 

186

 

 

3.08%

 

 

6,843

 

 

 

89

 

 

 

2.63

%

Cash, cash equivalents and other interest-earning assets

 

 

56,362

 

 

 

1,398

 

 

5.02%

 

 

101,660

 

 

 

268

 

 

 

0.53

%

Total interest-earning assets

 

 

777,777

 

 

 

20,227

 

 

5.24%

 

 

768,569

 

 

 

15,410

 

 

 

4.04

%

Noninterest-earning assets

 

 

87,176

 

 

 

 

 

 

 

 

83,219

 

 

 

 

 

 

 

Total assets

 

$

864,953

 

 

 

 

 

 

 

$

851,788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

89,733

 

 

 

161

 

 

0.36%

 

$

94,054

 

 

 

29

 

 

 

0.06

%

Savings deposits

 

 

162,290

 

 

 

92

 

 

0.11%

 

 

169,619

 

 

 

47

 

 

 

0.06

%

Money market deposits

 

 

95,749

 

 

 

236

 

 

0.50%

 

 

107,588

 

 

 

94

 

 

 

0.18

%

Certificates of deposit

 

 

160,207

 

 

 

1,441

 

 

1.81%

 

 

159,537

 

 

 

520

 

 

 

0.66

%

Total interest-bearing deposits

 

 

507,979

 

 

 

1,930

 

 

0.77%

 

 

530,798

 

 

 

690

 

 

 

0.26

%

Federal Home Loan Bank advances

 

 

30,862

 

 

 

783

 

 

5.12%

 

 

 

 

 

 

 

 

 

Subordinated debentures

 

 

37,096

 

 

 

1,076

 

 

5.85%

 

 

36,884

 

 

 

1,012

 

 

 

5.53

%

Total borrowings

 

 

67,958

 

 

 

1,859

 

 

5.52%

 

 

36,884

 

 

 

1,012

 

 

 

5.53

%

Total interest-bearing
liabilities

 

 

575,937

 

 

 

3,789

 

 

1.33%

 

 

567,682

 

 

 

1,702

 

 

 

0.60

%

Noninterest-bearing demand deposits

 

 

154,521

 

 

 

 

 

 

 

 

171,899

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

33,598

 

 

 

 

 

 

 

 

23,215

 

 

 

 

 

 

 

Total liabilities

 

 

764,056

 

 

 

 

 

 

 

 

762,796

 

 

 

 

 

 

 

Equity

 

 

100,897

 

 

 

 

 

 

 

 

88,992

 

 

 

 

 

 

 

Total liabilities and equity

 

$

864,953

 

 

 

 

 

 

 

$

851,788

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

16,438

 

 

 

 

 

 

 

$

13,708

 

 

 

 

Net interest rate spread

 

 

 

 

 

 

 

3.92%

 

 

 

 

 

 

 

 

3.44

%

Net interest-earning assets

 

$

201,840

 

 

 

 

 

 

 

$

200,887

 

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

4.26%

 

 

 

 

 

 

 

 

3.60

%

Average interest-earning assets to interest-bearing liabilities

 

 

135.05

%

 

 

 

 

 

 

 

135.39

%

 

 

 

 

 

 

 


ALLOWANCE FOR CREDIT LOSS - LOANS

 

(Dollars in 000's)

 

 

 

 

 

 

 

QTR

 

YTD

 

 

 

 

 

 

Beginning Balance

$

8,095

 

$

3,813

 

 

 

 

 

 

Provision for credit loss -loans

 

(61

)

 

(48

)

CECL Transition - Gross up of PCD loans

 

-

 

 

3,778

 

CECL Transition - Cumulative effect adjustment related to adoption

 

-

 

 

454

 

 

 

 

 

 

  Net Charge-offs (recoveries):

 

 

 

 

Owner Occupied 1-4

 

(17

)

 

(26

)

Non-Owner Occupied 1-4

 

(11

)

 

(31

)

Investor Commercial Real Estate

 

-

 

 

-

 

OO Commercial Real Estate

 

-

 

 

-

 

Construction & Land

 

(148

)

 

(153

)

Farm Loans

 

-

 

 

-

 

Marine & Consumer

 

49

 

 

46

 

Guaranteed by the US Gov't

 

-

 

 

-

 

Commercial

 

(2

)

 

(2

)

Net charge-offs (recoveries)

 

(129

)

 

(166

)

 

 

 

 

 

Ending Balance- ACL for Loans

$

8,163

 

$

8,163

 

 

 

 

 

 

Balance Reserve for unfunded loan commitments

 

194

 

 

194

 

Balance Reserve for HTM Securities

 

7

 

 

7

 

Total ACL

$

8,364

 

$

8,364

 

 

 

 

 

 

Provision expense for Unfunded Commitments

 

(88

)

 

(95

)

Provision expense for HTM Securities

 

(1

)

 

(4

)

Total other provision expense

$

(89

)

$

(99

)

Total provision for credit losses

$

(150

)

$

(147

)