Bv Financial, Inc.NASDAQ: BVFL

CORRECTION FROM SOURCE: BV Financial, Inc Announces Financial Results

· Issued by Bv Financial, Inc. via ACCESS Newswire

BALTIMORE, MD / ACCESSWIRE/ March 13, 2023 / BV Financial, Inc. ("BV Financial") (OTC PINK:BVFL) today issued a correction to its financial results for the quarter and year ended December 31, 2022, initially reported on January 24, 2023. In connection with its year-end audit and the finalization of the fair value adjustments recorded in connection with BayVanguard Bank's acquisition of North Arundel Savings Bank, the Company lowered its gain on bargain purchase recognized in connection with the merger from $2.3 million to $1.3 million and made a corresponding increase in the equity accounts to reflect the increase in the entity value of North Arundel. The result was an increase in equity received by BV Financial and a decrease in other income, net income, earnings per share, both basic and diluted, return on average assets, return on average equity and efficiency ratio as indicated below. The change had no impact on BV Financial's equity.

For Year Ended December 31, 2022

(Dollars in thousands, except per share data)

Other Income

Net Income

Earnings per common share - basic

Earnings Per Share -diluted

Return on Average Assets

Return on Average Equity

Efficiency Ratio

As Initially Reported

$6,625

$11,484

$1.55

$1.54

1.35%

12.49%

56.31%

As Corrected

$5,665

$10,524

$1.42

$1.41

1.23%

11.40%

57.88%

For Quarter Ended December 31, 2022

(Dollars in thousands, except per share data)

Other Income

Net Income

Earnings per common share - basic

Earnings Per Share -diluted

Return on Average Assets

Return on Average Equity

Efficiency Ratio

As Initially Reported

$3,275

$3,690

$0.50

$0.50

1.75%

15.43%

49.50%

As Corrected

$2,315

$2,730

$0.37

$0.37

1.29%

11.41%61.47%

The full text of the corrected release is a follows:

Baltimore, Maryland, BV Financial, Inc. (OTC PINK: BVFL), the holding company for BayVanguard Bank (the "Bank"), today reported net income of $10.5 million, or $1.41 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 $2.7 million, or $0.37 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 were $1.3 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 $0.6 million in bargain purchase gains, $1.1 million in excess insurance proceeds and $1.6 million in merger expenses.

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 allowance 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. 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 $844.9 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 13.39% 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.

Contact:Michael J. DeeChief Financial Officer (410) 477- 5000

BV Financial & Subsidiaries
Consolidated 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 9,113 8,322
Other Assets 7,661 7,625
Total Assets $844,963 $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
Other Liabilities 13,555 14,831
Total Liabilities 747,212 731,684
EQUITY
Common Stock at par 74 71
Common Stock in excess of par 15,406 9,383
Retained Earnings 84,612 74,088
Net Unrealized Gain (Loss) on Securities (2,341) (96)
Total Equity 97,751 83,446
Total Liabilites and Equity $844,963 $815,130
Total common shares outstanding 7,418,575 7,138,221
BV Financial & Subsidiaries
YTD 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 1,340 -
Other Income 1,371 395
Total Other Income 5,665 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 14,553 12,824
Provision for Income Tax 4,029 3,383
Net Income $10,524 $9,441
Basic Earnings per share $1.42 $1.33
Diluted earnings per share $1.41 $1.32
Return on average assets 1.23% 1.16%
Return on average equity 11.40% 11.98%
Efficiency ratio 57.88% 53.27%
Net Interest margin 3.91% 3.53%
BV Financial & Subsidiaries
QTRLY 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 646 -
Other Income 216 123
Total Other Income 2,315 538
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 3,977 3,325
Provision for Income Tax 1,247 718
Net Income $2,730 $2,607
Basic Earnings per share $0.37 $0.37
Diluted earnings per share $0.37 $0.36
Return on average assets 1.29% 1.28%
Return on average equity 11.41% 12.64%
Efficiency ratio 61.47% 56.72%
Net Interest margin 4.45% 4.01%

SOURCE: BV Financial, Inc.

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