BV Financial, Inc. Announces Financial Results

BV Financial, Inc. (OTCBB: BVFL), the holding company for Bay-Vanguard Federal Savings Bank, today reported net income of $73,000, or $0.03 per diluted share, for the quarter ended September 30, 2009, compared to net income of $244,000, or $0.11 per diluted share, for the quarter ended September 30, 2008. The decreased earnings in fiscal 2009 were attributed largely to a decrease in net interest income and increases in non-interest expense, provision for loan losses and income taxes. Net interest income decreased mainly due to a decrease in the average balance of the loan portfolio of approximately $10.2 million and a decrease in the yield of the investment portfolio. Non-interest expense increased mainly due to an increase in compensation expense related to increased accruals for retirement benefits. Non-interest income for the period ended September 30, 2009 increased when compared to September 30, 2008 due to an increase of $34,000 in the value of the Bank’s mutual fund investment. A $56,000 provision for loan losses was recognized during the most recent quarter reflecting continued economic weakness in the Bank’s market area. At September 30, 2009, the loan loss allowance was $911,000, which represented 0.78% of total loans and 51.2% of non-performing loans at September 30, 2009. BV Financial paid a dividend of $0.05 per share during the most recent quarter, unchanged from each of the last three quarters.

The financial results in fiscal 2009 further strengthened Bay-Vanguard’s Tier 1 capital ratio from 6.95% for the fiscal year ended June 30, 2009 to approximately 6.99% for the quarter ended September 30, 2009. 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 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.

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BV Financial, Inc.
Consolidated Financial Highlights
(in thousands)
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				9/30/2009					6/30/2009
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Selected Balance Sheet Data:				(unaudited)
Total assets				$	155,646				$	154,553
Investment securities					13,046					13,792
Loans receivable, net					115,616					119,235
Deposit accounts					139,529					137,616
Borrowings				-					-
Stockholder’s equity					13,718					13,649
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�			Three months
			ended September 30,
			2009		�	�	2008
Operating Results:			(unaudited)				(unaudited)
Interest income			$	1,945			$	2,231
Interest expense			�	827			�	1,083	�
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Net interest income				1,118				1,148
Provision for loan losses			�	56			-		�
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Net interest income after provision				1,062				1,148
Non-interest income				124				96
Non-interest expense			�	1,071			�	1,003	�
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Income before income taxes				115				241
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Income taxes (benefit)			�	42			�	(3	)
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Net income			$	73			$	244	�
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Contacts:

BV Financial, Inc.
Edmund T. Leonard, 410-547-1088
Chairman of the Board and Chief Financial Officer