| Headline: | BV Financial, Inc. Announces Financial Results |
| Location: | US |
| Post Date: | Jan 23, 2026 11:03 AM |
| TAG ID: | awire213679 |
| DocID: | 1130203 |
| Word Count: | approx. 2835 words |
| Full story: | |
| BALTIMORE, MD / ACCESS Newswire / January 23, 2026 / BV Financial, Inc. ( NASDAQ:BVFL), (the "Company") the holding company for BayVanguard Bank (the "Bank"), reported net income of $13.5 million, or $1.43 per diluted share, for the year ended December 31, 2025 compared to net income of $11.7 million, or $1.10 per diluted share, for the year ended December 31, 2024. Net income for the quarter ended December 31, 2025 was $4.8 million, or $0.57 per diluted share, compared to net income of $2.0 million, or $0.18 per diluted share, for the quarter ended December 31, 2024. Adjusted net income, a non-GAAP financial metric, was $16.3 million and $12.9 million for the years ended December 31, 2025 and 2024, respectively. For the quarters ended December 31, 2025 and 2024, adjusted net income was $5.6 million and $2.4 million, respectively. For a reconciliation of Net Income as reported and non-GAAP adjusted net income, see the reconciliation table contained at the end of this press release. The Company also announced today a transition in executive leadership. Additional information regarding this matter in included in the Company's Form 8-K filed with the Securities and Exchange Commission today. FinancialHighlights Return on average assets and return on average equity for the year ended December 31, 2025 were 1.48% and 7.01%, respectively. Return on average assets and return on average equity for the three months ended December 31, 2025 were 2.09% and 10.45%, respectively. Net loans increased $19.2 million, or 2.6% to $748.5 million at December 31, 2025 compared to $729.2 million at December 31, 2024. Deposits increased $24.6 million, or 3.8%, from $651.5 million at December 31, 2024 to $676.1 million at December 31, 2025. During the quarter ended December 31, 2025, the Company paid off the $35.0 million in subordinated debt issued in 2020 concurrently with the acquisition of Delmarva Bancshares. The Company replaced this borrowing with $35.0 million in lower cost advances from the Federal Home Loan Bank of Atlanta. During the year ended December 31, 2025, the Company repurchased 1,823,997 shares of common stock at an average price of $16.23, including 714,555 shares repurchased during the three months ended December 31, 2025, at an average price of $16.63. During the quarter ended December 31, 2025, the Company recorded a recovery of the provision for credit losses of $1.9 million consisting of a recovery of the provision of $1.8 million in the allowance for credit losses (ACL) - loans and $108,000 in the ACL-unfunded commitments. During the year ended December 31, 2025, the Company recorded a recovery of the provision for credit losses of $2.4 million. Financial Condition Total Assets. Total assets were $912.2 million at December 31, 2025, an increase of $392,000 from $911.8 million at December 31, 2024. The increase was due primarily to a $19.2 million increase in net loans receivable to $748.5 million at December 31, 2025, partially offset by a $14.8 million decrease in cash and cash equivalents and a $4.0 million decrease in securities available for sale. Cash and Cash Equivalents. Cash and cash equivalents decreased $14.8 million, or 21.0%, to $55.7 million at December 31, 2025 from $70.5 million at December 31, 2024 as excess cash was used to fund loans and repay the subordinated debt. Net Loans Receivable. Net loans receivable increased $19.2 million, or 2.6%, to $748.5 million at December 31, 2025 from $729.2 million at December 31, 2024. Increases in 1-4 family owner occupied, construction loans and commercial loans offset decreases in owner occupied commercial real estate loans, commercial investor loans, non-owner occupied 1-4 family loans, farm loans, consumer loans and loans guaranteed by the U.S. Government. Securities. Securities available for sale ("AFS") decreased $4.0 million, or 10.8%, to $33.2 million at December 31, 2025 from $37.3 million at December 31, 2024. Securities held to maturity (HTM) decreased $243,000 or 4.1% to $5.7 million at December 31, 2025. The decreases were due to pay-downs and maturities. Total Liabilities . Total liabilities increased $12.1 million, or 1.7%, to $728.4 million at December 31, 2025 from $716.3 million at December 31, 2024. The increase was primarily due to an increase in deposits of $24.6 million, partially offset by a decrease in borrowings of $14.9 million. Deposits. Total deposits increased $24.6 million, or 3.8%, to $676.1 million at December 31, 2025 from $651.5 million at December 31, 2024. Interest-bearing deposits increased $16.0 million, or 3.1%, to $537.7 million at December 31, 2025 from $521.8 million at December 31, 2024. Noninterest bearing deposits increased $8.6 million, or 6.7%, to $138.4 million at December 31, 2025 from $129.7 million at December 31, 2024. Borrowings . The Company had $35.0 million in Federal Home Loan Bank borrowings at December 31, 2025 compared to $15.0 million in Federal Home Loan Bank borrowings at December 31, 2024. These borrowings from the FHLB replaced the $35.0 million in subordinated debt issued in 2020. Stockholders' Equity . Stockholders' equity decreased $11.7 million or 6.0%, to $183.8 million at December 31, 2025 primarily due to $29.8 million in stock repurchases, offset by $13.5 million of net income and $4.6 million in other adjustments, primarily equity compensation. During the year, the Company repurchased 1.8 million shares of common stock at an average cost of $16.23. Asset Quality. Non-performing assets at December 31, 2025 totaled $2.3 million consisting of $2.3 million in nonperforming loans and $0 in other real estate owned, compared to $4.2 million at December 31, 2024, consisting of $4.0 million in non-performing loans and $160,000 in other real estate owned. The decrease in non-performing loans is due to pay-offs received in the quarter. At December 31, 2025, the allowance for credit losses on loans was $6.4 million, which represented 0.85% of total loans and 284.72% of non-performing loans compared to $8.5 million at December 31, 2024, which represented 1.15% of total loans and 212.51% of non-performing loans. Comparison of Operating Results for the Three and Twelve Months Ended December 31, 2025 and 2024 Net Income. Net income for the quarter ended December 31, 2025 was $4.8 million, or $0.56 per diluted share, compared to net income of $2.0 million, or $0.18 per diluted share, for the quarter ended December 31, 2024. TheCompany reported net income of $13.5 million or $1.43 per diluted share, for the year ended December 31, 2025 compared to net income of $11.7 million, or $1.10 per diluted share, for the year ended December 31, 2024. Net Interest Income. Net interest income was $9.8 million for the three months ended December 31, 2025 compared to $9.0 million in the three months ended December 31, 2024. The net interest margin for the three months ended December 31, 2025 was 4.52% compared to 4.34% for the three months ended December 31, 2024. Net interest income was $36.9 million for the year ended December 31, 2025, compared to $35.2 million in the year ended December 31, 2024. The net interest margin for the year ended December 31, 2025 was 4.35% compared to 4.27% for the year ended December 31, 2024. In each case, the increase was primarily due to the yield on interest-earning assets increasing at a greater rate than the cost on interest-bearing liabilities. Provision for Credit Losses During the quarter and year ended December 31, 2025, the Company recorded recoveries in the provision for credit losses of $1.9 million and $2.4 million, respectively. During the fourth quarter, based on a recommendation from a third-party validation report on the CECL model and methodology, the Company expanded the number of independent variables used in the forecast economic adjustment. The Company added the Federal Reserve's forecast of the unemployment rate to the regression analysis that had previously used only the Federal Reserve's forecast of GDP. This change resulted in a decrease in the required ACL-Loans in the fourth quarter of $945,000 when compared to the September 30, 2025 calculation. The remaining decrease in the calculated required ACL-loans was primarily due to formula-driven qualitative factor adjustments for loan segment growth and asset quality. Noninterest Income . For the three months ended December 31, 2025, noninterest income totaled $793,000 compared to $644,000 in the quarter ended December 31, 2024. For the year ended December 31, 2025, noninterest income totaled $2.7 million as compared to $2.5 million for the year ended December 31, 2024. Noninterest Expense. For the three months ended December 31, 2025 noninterest expense totaled $5.4 million compared to $6.2 million for the three months ended December 31, 2024. Compensation and benefits expenses decreased by 15.4%, primarily due to the reduced cost of the equity awards granted in 2024 after the stockholders approved the 2024 Equity Incentive Plan. These expenses decreased to $601,000 in the quarter ended December 31, 2025 compared to $1.2 million in the quarter ended December 31, 2024. For the year ended December 31, 2025 noninterest expense totaled $23.2 million compared to $21.5 million in the year ended December 31, 2024. Compensation and benefits increased by 15.9% due to increases the full year of costs of the equity awards granted after the stockholders approved the 2024 Equity Incentive Plan compared to four months of costs of the plan in 2024. During the year ended December 31, 2025 expense related to this plan was $3.9 million as compared to $1.5 million in the year ended December 31, 2024. Forward-Looking Statements 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, increased competitive pressures, the effects of inflation, potential recessionary conditions, general economic conditions or conditions within the securities markets, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the FRB, the impact of the imposition of tariffs and any retaliatory responses, changes in the quality, size and composition of our loan and securities portfolios, changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio, changes in demand for our products and services, accounting and tax changes, 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, a potential government shutdown, a failure in or breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company's financial condition and results of operations and the business in which the Company and the Bank are engaged and the failure to maintain current technologies, the failure to retain or attract employees. BV Financial, Inc. BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Baltimore, Maryland with twelve 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. BV FINANCIAL, INC. Consolidated Financial Ratios At or For the Three Months At or For the Year Ended December 31, Ended December 31, 2025 2024 2025 2024 Performance Ratios (1) : Return on average assets 2.09 % 0.88 % 1.48 % 1.32 % Return on average equity 10.45 % 3.83 % 7.01 % 5.77 % Interest rate spread (2) 3.81 % 3.59 % 3.61 % 3.50 % Net interest margin (3) 4.52 % 4.34 % 4.35 % 4.27 % Non-interest expense to average assets 2.34 % 2.79 % 2.54 % 2.42 % Efficiency ratio (4) 50.99 % 64.27 % 58.52 % 57.02 % Average interest-earning assets to average interest-bearing liabilities 146.60 % 154.03 % 149.10 % 154.92 % Average equity to average assets 19.98 % 22.91 % 21.07 % 22.88 % Credit Quality Ratios: Allowance for credit losses as a percentage of total loans 0.85 % 1.15 % 0.85 % 1.15 % Allowance for credit losses as a percentage of non-performing loans 284.72 % 212.51 % 284.72 % 212.51 % Net charge-offs (recoveries) to average outstanding loans during the year 0.00 % -0.04 % 0.00 % -0.04 % Non-performing loans as a percentage of total loans 0.30 % 0.57 % 0.30 % 0.54 % Non-performing loans as a percentage of total assets 0.25 % 0.44 % 0.25 % 0.44 % Total non-performing assets as a percentage of total assets 0.25 % 0.46 % 0.25 % 0.46 % Other: Number of offices 12 13 12 13 Number of full-time equivalent employees 102 111 102 111 Weighted average shares outstanding 8,454,700 10,785,370 9,380,039 10,678,729 (1) Performance ratios are annualized. (2) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (3) Represents net interest income as a percentage of average interest-earning assets. (4) Represents non-interest expenses divided by the sum of net interest income and non-interest income. BV FINANCIAL, INC. Consolidated Balance Sheets December 31, 2025 December 31, 2024 (dollars in thousands, except share amounts) (unaudited) derived from audited financial statements Assets Cash $ 5,616 $ 5,842 Interest-bearing deposits in other banks 50,089 64,658 Cash and cash equivalents 55,705 70,500 Equity Investment 404 391 Securities available for sale 33,226 37,259 Securities held to maturity (fair value of $5,101 and $5,171, ACL of $2 and $4) 5,736 5,979 Loans held for maturity 754,921 737,760 Allowance for Credit Losses (6,437 ) (8,522 ) Net Loans 748,484 729,238 Foreclosed real estate - 159 Premises and equipment, net 12,493 13,224 Federal Home Loan Bank of Atlanta stock, at cost 2,324 1,366 Investment in life insurance 20,441 20,058 Accrued interest receivable 3,149 3,161 Goodwill 14,420 14,420 Intangible assets, net 651 831 Deferred tax assets, net 7,563 8,899 Other assets 7,617 6,336 Total assets $ 912,213 $ 911,821 Liabilities and Stockholders' Equity Liabilities Noninterest-bearing deposits $ 138,360 $ 129,724 Interest-bearing deposits 537,734 521,767 Total deposits 676,094 651,491 FHLB borrowings 35,000 15,000 Subordinated debentures - 34,883 Other liabilities 17,315 14,948 Total liabilities 728,409 716,322 Stockholders' equity Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued or outstanding - - Common stock, $0.01 par value; 45,000,000 shares authorized in 2025 and 2024; 8,852,813 shares issued and outstanding as of December 31, 2025; 10,645,284 shares issued and outstanding as of December 31, 2024 88 106 Paid-in capital 68,834 94,679 Unearned common stock held by employee stock ownership plan (6,978 ) (7,160 ) Retained earnings 122,990 109,495 Accumulated other comprehensive loss (1,130 ) (1,621 ) Total stockholders' equity 183,804 195,499 Total liabilities and stockholders' equity $ 912,213 $ 911,821 BV FINANCIAL, INC. Consolidated Statements of Income (dollars in thousands, except per share amounts) Three Months Ended December 31, Year Ended December 31, Interest Income 2025 2024 2025 2024 Loans, including fees $ 12,003 $ 10,522 $ 45,596 $ 41,003 Investment securities available for sale 323 354 1,326 1,319 Investment securities held to maturity 46 48 185 314 Other interest income 660 987 2,600 4,046 Total interest income 13,032 11,911 49,707 46,682 Interest Expense Interest on deposits 2,770 2,432 10,704 9,042 Interest on FHLB borrowings 85 2 279 2 Interest on Subordinated debentures 426 465 1,823 2,451 Total interest expense 3,281 2,899 12,806 11,495 Net interest income 9,751 9,012 36,901 35,187 Provision for (recovery of) credit losses (1,890 ) 604 (2,429 ) (203 ) Net interest income after provision for (recovery of) credit losses 11,641 8,408 39,330 35,390 Noninterest Income Service fees on deposits 125 123 462 426 Fees from debit cards 182 177 706 706 Income from investment in life insurance 94 111 383 400 Gain on foreclosed real estate - - 26 - Loss on sale of fixed assets (24 ) - (32 ) - Other income 416 233 1,175 982 Total noninterest income 793 644 2,720 2,514 Noninterest Expense Compensation and related benefits 3,631 4,291 16,237 14,005 Occupancy 386 374 1,624 1,616 Data processing 364 364 1,528 1,480 Advertising 23 7 37 23 Professional fees 215 252 933 1,008 Equipment 92 95 370 396 Foreclosed real estate and repossessed assets holding costs - - 5 13 Amortization of intangible assets 45 45 180 181 FDIC insurance premiums 82 81 330 326 Other expense 539 697 1,943 2,450 Total noninterest expense 5,377 6,206 23,187 21,498 Net income before tax 7,057 2,846 18,863 16,406 Income tax expense 2,253 895 5,368 4,683 Net income $ 4,804 $ 1,951 $ 13,495 $ 11,723 Basic earnings per share $ 0.57 $ 0.18 $ 1.44 $ 1.10 Diluted earnings per share $ 0.56 $ 0.18 $ 1.43 $ 1.10 BV FINANCIAL, INC. Average Balance Sheet for the Quarters ended December 31, (Dollars in thousands) For the Three Months Ended December 31, 2025 2024 (dollars in thousands) Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Unaudited) Interest-earning assets: Loans $ 750,689 $ 12,003 6.34 % $ 709,668 $ 10,522 5.88 % Securities available-for-sale 34,338 323 3.73 % 38,447 354 3.65 % Securities held-to-maturity 6,865 46 2.66 % 6,668 48 2.86 % Cash, cash equivalents and other interest-earning assets 63,344 660 4.16 % 68,523 987 5.74 % Total interest-earning assets 855,236 13,032 6.05 % 823,306 11,911 5.74 % Noninterest-earning assets 65,535 68,633 Total assets $ 920,771 $ 891,939 Interest-bearing liabilities: Interest-bearing demand deposits $ 84,993 197 0.92 % $ 87,548 196 0.89 % Savings deposits 115,959 157 0.54 % 123,838 73 0.23 % Money market deposits 123,111 737 2.38 % 117,039 777 2.63 % Certificates of deposit 215,725 1,679 3.09 % 171,063 1,386 3.21 % Total interest-bearing deposits 539,788 2,770 2.04 % 499,488 2,432 1.93 % Federal Home Loan Bank advances 9,348 85 3.61 % 163 2 4.87 % Subordinated debentures 34,239 426 4.94 % 34,867 465 5.29 % Total borrowings 43,587 511 4.65 % 35,030 467 5.29 % Total interest-bearing liabilities 583,375 3,281 2.23 % 534,518 2,899 2.15 % Noninterest-bearing demand deposits 134,516 134,007 Other noninterest-bearing liabilities 18,890 20,471 Total liabilities 736,781 688,996 Equity 183,990 202,943 Total liabilities and equity $ 920,771 $ 891,939 Net interest income $ 9,751 $ 9,012 Net interest rate spread 3.81 % 3.59 % Net interest-earning assets $ 271,861 $ 288,788 Net interest margin 4.52 % 4.34 % Average interest-earning assets to interest-bearing liabilities 146.60 % 154.03 % BV FINANCIAL, INC. Average Balance Sheet for the Years ended December 31, (Dollars in thousands) For the Year Ended December 31, 2025 2024 (dollars in thousands) Average Outstanding Balance Interest Average Yield/Rate Average Outstanding Balance Interest Average Yield/Rate (Unaudited) Interest-earning assets: Loans $ 746,435 $ 45,596 6.11 % $ 703,411 $ 41,003 5.81 % Securities available-for-sale 35,267 1,326 3.76 % 35,544 1,319 3.70 % Securities held-to-maturity 6,816 185 2.71 % 9,542 314 3.28 % Cash, cash equivalents and other interest-earning assets 59,338 2,600 4.41 % 73,096 4,046 5.53 % Total interest-earning assets 847,856 49,707 5.86 % 821,593 46,682 5.67 % Noninterest-earning assets 65,793 68,865 Total assets $ 913,649 $ 890,458 Interest-bearing liabilities: Interest-bearing demand deposits $ 79,288 679 0.86 % $ 84,655 878 1.03 % Savings deposits 119,083 499 0.42 % 134,795 323 0.24 % Money market deposits 125,508 3,055 2.43 % 101,831 2,274 2.23 % Certificates of deposit 203,464 6,471 3.18 % 173,932 5,567 3.19 % Total interest-bearing deposits 527,343 10,704 2.03 % 495,213 9,042 1.82 % Federal Home Loan Bank advances 6,547 279 4.26 % 41 2 4.86 % Subordinated debentures 34,766 1,823 5.24 % 35,071 2,451 6.97 % Total borrowings 41,313 2,102 5.09 % 35,112 2,453 6.97 % Total interest-bearing liabilities 568,656 12,806 2.25 % 530,325 11,495 2.16 % Noninterest-bearing demand deposits 134,643 137,935 Other noninterest-bearing liabilities 17,838 19,074 Total liabilities 721,137 687,334 Equity 192,512 203,124 Total liabilities and equity $ 913,649 $ 890,458 Net interest income $ 36,901 $ 35,187 Net interest rate spread 3.61 % 3.50 % Net interest-earning assets $ 279,200 $ 291,268 Net interest margin 4.35 % 4.27 % Average interest-earning assets to interest-bearing liabilities 149.10 % 154.92 % ALLOWANCE FOR CREDIT LOSS - LOANS (Dollars in thousands) QTR YTD 12/31/2025 12/31/2025 Beginning Balance $ 8,197 $ 8,522 Provision for credit loss -loans (1,781 ) (2,168 ) Net Charge-offs (recoveries): Owner Occupied 1-4 (3 ) (22 ) Non-Owner Occupied 1-4 (24 ) (70 ) Investor Commercial Real Estate - - OO Commercial Real Estate - - Construction & Land - (3 ) Farm Loans - - Marine & Consumer 6 12 Guaranteed by the US Gov't - - Commercial - - Net charge-offs (recoveries) (21 ) (83 ) Ending Balance- ACL for Loans $ 6,437 $ 6,437 Balance Reserve for unfunded loan commitments 94 94 Balance Reserve for HTM Securities 2 2 Total ACL $ 6,533 $ 6,533 Provision expense for Unfunded Commitments (108 ) (259 ) Provision expense for HTM Securities (1 ) (2 ) Total other provision expense $ (109 ) $ (261 ) Total provision for (recovery of) credit losses $ (1,890 ) $ (2,429 ) RECONCILIATION TABLE (UNAUDITED) NON-GAAP ADJUSTED NET INCOME Non-GAAP Reconciliation In addition to results presented in accordance with generally accepted accounting principles utilized in the Unites States ("GAAP"), this earnings release contains a non-GAAP financial measure, Non-GAAP adjusted net income. The Company believes this non-GAAP financial measure is useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time. Non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Three Months ended December 31, 2025 2024 Net Income (GAAP) $ 4,804 $ 1,951 Plus(minus) tax adjusted items: 2024 Equity Plan Expenses - tax adjusted 786 442 Non GAAP adjusted net income $ 5,590 $ 2,393 Year ended December 31, 2025 2024 Net Income (GAAP) $ 13,495 $ 11,723 Plus (minus) tax adjusted items: 2024 Equity Plan Expenses - tax adjusted 2,777 1,133 Non GAAP adjusted net income $ 16,272 $ 12,856 Contact: Michael J. Dee Chief Financial Officer (410) 477- 5000 SOURCE: BV Financial, Inc. View the original press release on ACCESS Newswire |
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