EDGEMERE, MD / ACCESSWIRE / April 21, 2022 / BV Financial, Inc. (OTC PINK:BVFL), the holding company for BayVanguard Bank, today reported net income of $2.4 million, or $0.33 per diluted share, for the three months ended March 31, 2022 compared to net income of $2.7 million or $0.38 per diluted share, for the three months ended March 31, 2021.
In the quarter ended March 31, 2022, the Company recognized $0.6 million in other income upon the pay-off of a customer's loan relationship, $0.3 million in a gain on bargain purchase related to the merger with North Arundel Savings Bank (NASB) as well as $0.3 million in expenses related to the systems conversion of NASB. In the quarter ended March 31, 2021, the Company recognized $0.3 million in additional insurance proceeds, a $0.2 million reduction in interest on borrowed money from the accretion of the fair market value adjustment on the pay-off of subordinated debt assumed in the 2020 acquisition of Delmarva Bancshares and deferred $0.7 million in compensation expense tied to the second round of SBA PPP funding in the quarter. This deferred compensation is being amortized against interest income as the PPP loan population pays down.
Non-performing assets increased to $5.8 million at March 31, 2022 compared to $4.4 million at December 31, 2021. At March 31, 2022, the loan loss allowance was $2.9 million, which represented 0.45% of total loans and 76.6% of non-performing loans compared to $2.7 million at December 31, 2021, which represented 0.45% of total loans and 111.3% of non-performing loans. In addition, at March 31, 2022 and December 31, 2021, the Bank had credit impairment allowances on acquired loans of $4.6 million and $4.5 million, respectively, that is not included in the loan loss allowance. The credit impairment allowances were established for loans acquired in the mergers with Vigilant Savings Bank in 2013, Kopernik Bank in 2019, MB Bancorp, Inc. and Delmarva Bancshares in 2020 and NASB in 2022. At March 31, 2022, these acquired loans totaled $290.4 million or 45.4 % of the portfolio.
As of March 31, 2022, BV Financial, Inc. had assets of $857.1 million, net loans of $632.7 million, deposits of $709.6 million and total stockholders' equity of $89.4 million compared to $815.1 million, $584.4 million, $680.0 million and $83.4 million at December 31, 2021.
BayVanguard Bank's Tier 1 leverage capital ratio was approximately 12.19% at March 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.
As previously disclosed, in January 2022, BayVanguard Bank acquired NASB. At closing, NASB had approximately $35.3 million in loans and $40.3 million in deposits. As part of this transaction, BV Financial, Inc. issued 251,004 shares of common stock to Bay-vanguard Mutual Holding Company.
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.
About BV Financial, Inc.
BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Edgemere, Maryland with seventeen other 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.
Consolidated Statement of Condition
Unaudited
| 3/31/22 | 12/31/21 | |||||||
ASSETS | ||||||||
Cash | 12,934 | 8,484 | ||||||
Interest bearing deposits in other banks | 84,292 | 102,456 | ||||||
| 97,226 | 110,940 | |||||||
Time Deposits in Other Banks | 992 | 250 | ||||||
Investment AFS | 39,182 | 37,793 | ||||||
Investment HTM | 7,566 | 4,059 | ||||||
Equity Securities | 244 | - | ||||||
Loans | 632,705 | 584,438 | ||||||
Loans Held For sale | - | - | ||||||
Repossessed Assets | 1,987 | 1,987 | ||||||
Premises and Equipment | 16,175 | 15,050 | ||||||
FHLB of Atlanta Stock | 489 | 404 | ||||||
Cash Surrender Value of Life Insurance | 26,059 | 25,966 | ||||||
Accrued Interest Receivable | 2,769 | 2,583 | ||||||
Goodwill | 14,420 | 14,420 | ||||||
Other Intangible Assets | 1,333 | 1,293 | ||||||
Deferred Tax Asset | 8,433 | 8,322 | ||||||
Other Assets | 7,471 | 7,625 | ||||||
Total Assets | $ | 857,051 | $ | 815,130 | ||||
LIABILITIES | ||||||||
Deposits - non interest bearing | 167,171 | 175,019 | ||||||
Deposits - interest bearing | 542,452 | 505,006 | ||||||
Total Deposits | 709,623 | 680,025 | ||||||
Borrowed Money | 36,881 | 36,828 | ||||||
Official Checks | 7,256 | 2,417 | ||||||
Advanced Payments By Borrowers | 4,978 | 4,514 | ||||||
Other Liabilities | 8,932 | 7,900 | ||||||
Total Liabilities | 767,670 | 731,684 | ||||||
EQUITY | ||||||||
Common Stock at par | 74 | 71 | ||||||
Common Stock in excess of par | 9,421 | 9,383 | ||||||
Retained Earnings | 81,005 | 74,088 | ||||||
Net Unrealized Gain (Loss) on Securities | (1,119 | ) | (96 | ) | ||||
Total Equity | 89,381 | 83,446 | ||||||
Total Liabilites and Equity | $ | 857,051 | $ | 815,130 | ||||
BV Financial & Subsidiaries
Consolidated Statement of Income
| 3/31/22 | 3/31/21 | |||||||
INTEREST INCOME | ||||||||
Loans, including fees | $ | 7,202 | $ | 7,197 | ||||
Investment Securities | 172 | 118 | ||||||
Other Interest Income | 39 | 28 | ||||||
Total Interest Income | 7,413 | 7,343 | ||||||
Interest on Deposits | 367 | 580 | ||||||
Interest on Borrowed Money | 503 | 317 | ||||||
Total Interest Expense | 870 | 897 | ||||||
Net Interest Income Before Provision For Loss | 6,543 | 6,446 | ||||||
Provision for Loan Losses | 177 | 90 | ||||||
Net Interest Income | 6,366 | 6,356 | ||||||
Debit Card Income | 182 | 189 | ||||||
Service Fees On Deposits | 113 | 117 | ||||||
Income from Life Insurance | 93 | 348 | ||||||
Gain (loss) on repossessed assets | - | 12 | ||||||
Gain on sale of Loans | - | 14 | ||||||
Gain on Bargain Purchase | 330 | - | ||||||
Other Income | 770 | 79 | ||||||
Total Other Income | 1,488 | 759 | ||||||
Compensation | 2,402 | 1,539 | ||||||
Occupancy | 464 | 392 | ||||||
Data Processing | 365 | 617 | ||||||
Advertising | 5 | 5 | ||||||
Professional fees | 175 | 103 | ||||||
Equipment | 112 | 143 | ||||||
Foreclosed Real Estate Holding Costs | 10 | 6 | ||||||
Amortization of intangible assets | 45 | 45 | ||||||
FDIC insurance premiums | 53 | 36 | ||||||
Other | 727 | 468 | ||||||
Total Non-Interest Expense | 4,358 | 3,354 | ||||||
Net Income Before Tax | 3,496 | 3,761 | ||||||
Provision for Income Tax | 1,078 | 1,078 | ||||||
Net Income | $ | 2,418 | $ | 2,683 | ||||
Basic Earnings per share | $ | 0.33 | $ | 0.38 | ||||
Diluted earnings per share | $ | 0.33 | $ | 0.38 | ||||
CONTACT:
Michael J. Dee
Chief Financial Officer
(410) 477-5000
SOURCE: BV Financial, Inc.