BALTIMORE, MD / ACCESSWIRE / January 24, 2023 / BV Financial, Inc. (OTC PINK:BVFL), the holding company for BayVanguard Bank (the "Bank"), today reported net income of $11.5 million, or $1.54 per diluted share, for the year ended December 31, 2022 compared to net income of $9.4 million, or $1.32 per diluted share, for the year ended December 31, 2021. Net income for the quarter ended December 31, 2022 was $3.7 million or $0.50 per diluted share compared to net income of $2.6 million or $0.36 per diluted share in the quarter ended December 31, 2021. Included in the 2022 annual results are $2.3 million in a gain on bargain purchase recognized in the merger with North Arundel Savings Bank, $1.4 million in excess insurance proceeds, as well as $1.8 million in merger expenses and $0.5 million in a lease buyout cost for a branch whose deposits were moved to the North Arundel location. Included in the December 2022 quarterly results are $1.6 in bargain purchase gains, $1.1 million in excess insurance proceeds and $1.6 million in merger expenses. In the December quarter, certain expenses paid by North Arundel prior to the close of the merger were reclassified as an increase in both bargain purchase gains and merger expenses in the Bank's financial statements. These reclassifications had no impact on net income.
Non-performing assets on December 31, 2022 totaled $7.9 million consisting of $5.9 million in nonperforming loans and $2.0 million in other real estate owned, compared to $4.4 million at December 31, 2021, consisting of $2.4 million in non-performing loans and $2.0 million in other real estate owned. On December 31 2022, the loan loss allowance was $3.8 million, which represented 0.57% of total loans and 64.8% of non-performing loans compared to $2.6 million at December 31, 2021, which represented 0.45% of total loans and 111.3% of non-performing loans. In addition, on December 31, 2022, the Bank had a credit impairment valuation allowances of $3.8 million that is not included in the Bank's allowance for loan loss estimate which is in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). The credit impairment allowances were established for loans acquired in the Delmarva Bancshares, MB Bancorp, Kopernik, North Arundel and Vigilant mergers.
At December 31, 2022, BV Financial, Inc. had total assets of $844.1 million, net loans of $659.1 million, deposits of $684.6 million and total stockholders' equity of $97.8 million compared to $815.1 million, $584.4 million, $680.0 million and $83.4 million at December 31, 2021, respectively.
BayVanguard Bank's Tier 1 leverage capital ratio was 13.34% at December 31, 2022 compared to 11.79% at December 31, 2021. This ratio and the Bank's other capital measurements continue to exceed all regulatory standards for "well-capitalized" financial institutions.
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 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 within its market area.
BV Financial & SubsidiariesConsolidated Statement of Condition
| Unaudited | ||||||||
| 12/31/2022 | 12/31/2021 | |||||||
| ASSETS | ||||||||
| Cash | 12,704 | 8,484 | ||||||
| Interest bearing deposits in other banks | 55,452 | 102,456 | ||||||
| 68,156 | 110,940 | |||||||
| Time Deposits in Other Banks | 496 | 250 | ||||||
| Equity securities at fair value | 221 | - | ||||||
| Investment AFS | 33,034 | 37,793 | ||||||
| Investment HTM | 10,461 | 4,059 | ||||||
| Loans | 659,131 | 584,438 | ||||||
| Loans Held For sale | - | - | ||||||
| Repossessed Assets | 1,987 | 1,987 | ||||||
| Premises and Equipment | 15,176 | 15,050 | ||||||
| FHLB of Atlanta Stock | 977 | 404 | ||||||
| Cash Surrender Value of Life Insurance | 19,983 | 25,966 | ||||||
| Accrued Interest Receivable | 2,952 | 2,583 | ||||||
| Goodwill | 14,420 | 14,420 | ||||||
| Other Intangible Assets | 1,195 | 1,293 | ||||||
| Deferred Tax Asset | 8,225 | 8,322 | ||||||
| Other Assets | 7,661 | 7,625 | ||||||
| Total Assets | $ | 844,075 | $ | 815,130 | ||||
| LIABILITIES | ||||||||
| Deposits - non interest bearing | 167,202 | 175,019 | ||||||
| Deposits - interest bearing | 517,416 | 505,006 | ||||||
| Total Deposits | 684,618 | 680,025 | ||||||
| Advances From the FHLB | 12,000 | - | ||||||
| Subordinated debentures | 37,039 | 36,828 | ||||||
| Official Checks | 3,065 | 2,417 | ||||||
| Advanced Payments By Borrowers | 3,157 | 4,514 | ||||||
| Other Liabilities | 6,445 | 7,900 | ||||||
| Total Liabilities | 746,324 | 731,684 | ||||||
| EQUITY | ||||||||
| Common Stock at par | 74 | 71 | ||||||
| Common Stock in excess of par | 9,947 | 9,383 | ||||||
| Retained Earnings | 90,071 | 74,088 | ||||||
| Net Unrealized Gain (Loss) on Securities | (2,341 | ) | (96 | ) | ||||
| Total Equity | 97,751 | 83,446 | ||||||
| Total Liabilites and Equity | $ | 844,075 | $ | 815,130 | ||||
| Total common shares outstanding | 7,418,575 | 7,138,221 | ||||||
BV Financial & SubsidiariesYTD Consolidated Statement of Income
| Unaudited | ||||||||
| 12/31/2022 | 12/31/2021 | |||||||
| INTEREST INCOME | ||||||||
| Loans, including fees | $ | 31,259 | $ | 28,728 | ||||
| Investment Securities | 856 | 511 | ||||||
| Other Interest Income | 1,235 | 139 | ||||||
| Total Interest Income | 33,350 | 29,378 | ||||||
| Interest on Deposits | 1,353 | 1,896 | ||||||
| Interest on Borrowed Money | 2,077 | 1,837 | ||||||
| Total Interest Expense | 3,430 | 3,733 | ||||||
| 2836840.15 | ||||||||
| Net Interest Income Before Provision For Loss | 29,920 | 25,645 | ||||||
| Provision for Loan Losses | 1,038 | 575 | ||||||
| Net Interest Income | 28,882 | 25,070 | ||||||
| Debit Card Income | 755 | 780 | ||||||
| Service Fees On Deposits | 460 | 444 | ||||||
| Income from Life Insurance | 1,492 | 683 | ||||||
| Gain (loss) on repossessed assets | - | 12 | ||||||
| Gain on sale of building\equipment | 246 | - | ||||||
| Gain on sale of Loans held for sale | 1 | 57 | ||||||
| Gain on Bargain Purchase | 2,300 | - | ||||||
| Other Income | 1,371 | 395 | ||||||
| Total Other Income | 6,625 | 2,371 | ||||||
| Compensation | 10,130 | 7,907 | ||||||
| Occupancy | 1,661 | 1,685 | ||||||
| Data Processing | 1,419 | 1,608 | ||||||
| Advertising | 23 | 23 | ||||||
| Professional fees | 607 | 587 | ||||||
| Equipment | 436 | 453 | ||||||
| Foreclosed Real Estate Holding Costs | 965 | 227 | ||||||
| Amortization of intangible assets | 184 | 176 | ||||||
| FDIC insurance premiums | 219 | 190 | ||||||
| Other | 4,350 | 1,761 | ||||||
| Total Non-Interest Expense | 19,994 | 14,617 | ||||||
| Net Income Before Tax | 15,513 | 12,824 | ||||||
| Provision for Income Tax | 4,028 | 3,383 | ||||||
| Net Income | $ | 11,485 | $ | 9,441 | ||||
| Basic Earnings per share | $ | 1.55 | $ | 1.33 | ||||
| Diluted earnings per share | $ | 1.54 | $ | 1.32 | ||||
| Return on average assets | 1.35 | % | 1.16 | % | ||||
| Return on average equity | 12.44 | % | 11.98 | % | ||||
| Efficiency ratio | 56.31 | % | 53.27 | % | ||||
| Net Interest margin | 3.91 | % | 3.53 | % | ||||
BV Financial & SubsidiariesQTRLY Consolidated Statement of Income
| Unaudited | ||||||||
| 12/31/2022 | 12/31/2021 | |||||||
| INTEREST INCOME | ||||||||
| Loans, including fees | $ | 8,547 | $ | 7,525 | ||||
| Investment Securities | 313 | 150 | ||||||
| Other Interest Income | 509 | 45 | ||||||
| Total Interest Income | 9,369 | 7,720 | ||||||
| Interest on Deposits | 369 | 395 | ||||||
| Interest on Borrowed Money | 543 | 502 | ||||||
| Total Interest Expense | 912 | 897 | ||||||
| Net Interest Income Before Provision For Loss | 8,457 | 6,823 | ||||||
| Provision for Loan Losses | 451 | 305 | ||||||
| Net Interest Income | 8,006 | 6,518 | ||||||
| Debit Card Income | 188 | 197 | ||||||
| Service Fees On Deposits | 116 | 107 | ||||||
| Income from Life Insurance | 1,182 | 98 | ||||||
| Gain (loss) on repossessed assets | - | - | ||||||
| Gain on sale of building\Equipment | (33 | ) | - | |||||
| Gain on sale of Loans | - | 13 | ||||||
| Gain on Bargain Purchase | 1,606 | - | ||||||
| Other Income | 216 | 123 | ||||||
| Total Other Income | 3,275 | 538 | ||||||
| Compensation | 2,649 | 2,182 | ||||||
| Occupancy | 440 | 431 | ||||||
| Data Processing | 349 | 336 | ||||||
| Advertising | 6 | 6 | ||||||
| Professional fees | 155 | 150 | ||||||
| Equipment | 24 | 110 | ||||||
| Foreclosed Real Estate Holding Costs | 568 | 155 | ||||||
| Amortization of intangible assets | 46 | 44 | ||||||
| FDIC insurance premiums | 55 | 51 | ||||||
| Other | 2,052 | 266 | ||||||
| Total Non-Interest Expense | 6,344 | 3,731 | ||||||
| Net Income Before Tax | 4,937 | 3,325 | ||||||
| Provision for Income Tax | 1,247 | 718 | ||||||
| Net Income | $ | 3,690 | $ | 2,607 | ||||
| Basic Earnings per share | $ | 0.50 | $ | 0.37 | ||||
| Diluted earnings per share | $ | 0.50 | $ | 0.36 | ||||
| Return on average assets | 1.75 | % | 1.28 | % | ||||
| Return on average equity | 15.43 | % | 12.64 | % | ||||
| Efficiency ratio | 49.50 | % | 56.72 | % | ||||
| Net Interest margin | 4.45 | % | 4.01 | % | ||||
CONTACT:Michael J. DeeChief Financial Officer(410) 477- 5000
SOURCE: BV Financial, Inc.
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