BV Financial, Inc Announces Financial Results

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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. Dee
Chief 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	%