BV Financial, Inc. Announces Financial Results

BALTIMORE, MD--(Marketwired - Nov 6, 2015) - BV Financial, Inc. (OTC PINK: BVFL), the holding company for Bay-Vanguard Federal Savings Bank, today reported net income of $172,000, or $0.06 per diluted share, for the quarter ended September 30, 2015 compared to $224,000, or $0.09 per diluted share, for the quarter ended September 30, 2015. 

The decrease in net income was attributed to the one-time gain of $177,000 on the sale of a former branch building in the quarter ended September 30, 2014. Net interest income before the provision for loan losses decreased by $98,000 primarily due to lower loan balances. The provision for loan losses was $45,000 lower in the quarter ended September 30, 2015 when compared to the quarter ended September 30, 2014 due primarily to lower levels of problem assets lower balances. Operating expenses were lower by $107,000 in the current quarter due to lower costs associated with foreclosed real estate assets. 

Non-performing assets at September 30, 2015 totaled $3.6 million consisting of $2.7 million in nonperforming loans and $0.9 million on other real estate owned, compared to $3.5 million at June 30, 2015, consisting of $2.5 million in non-performing loans and $1.0 million in other real estate owned. At September 30, 2015, the loan loss allowance was $1.8 million, which represented 1.39% of total loans and 66.4% of non-performing loans compared to $1.8 million at June 30, 2015, which represented 1.4% of total loans and 72.3% of non-performing loans. In addition at September 30, 2015, the Bank had a credit impairment allowance of $669,000 that is not included in the loan loss allowance. The credit impairment allowance was established for loans acquired in the Vigilant merger. 

Total assets decreased to $165.4 million at September 30, 2015 compared to $169.4 million at June 30, 2015. Cash and cash equivalents decreased $4.5 million while loans increased by $1.6 million, and securities held-to-maturity decreased by $0.8 million Deposits decreased $3.1 million primarily due to a decrease in certificates of deposits and money market accounts. Stockholders' equity increased $184,000 as a result of net income and accumulated other comprehensive income.

Bay-Vanguard's Tier 1 capital ratio was 11.62% at September 30, 2015 compared to 11.31% at June 30, 2015. This ratio and the Bank's other capital measurements continue to exceed all regulatory standards for "well-capitalized" financial institutions.

On November 4, 2015 at the annual meeting of BV Financial, Inc., the following Directors were elected to three year terms:
William Streett Baldwin
Michael J. Birmingham III
David M. Flair.

Additionally, Joseph S. Galli was elected to a one year term and the appointment of Rowles & Company, LLC as the Company's independent registered public accounting firm was ratified.

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 Bay-Vanguard Federal Savings Bank. Bay-Vanguard Federal Savings Bank is headquartered in Baltimore, Maryland with four other branches in the Baltimore metropolitan area. 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.