BV Financial Announces Financial Results
01/24/2023 - 05:10 PM
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 & 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
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 & 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
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 & 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
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. Dee Chief Financial Officer (410) 477- 5000
SOURCE: BV Financial, Inc.
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