BALTIMORE, MD / ACCESSWIRE / February 14, 2019 / BV Financial, Inc. (OTC PINK: BVFL), the holding company for BayVanguard Bank, today reported net income of $240,000, or $0.08 per diluted share, for the quarter ended December 31, 2018 compared to a loss of ($323,000), or ($0.11) per diluted share, for the quarter ended December 31, 2018. Operating results in the three-month period ended December 31, 2017 were significantly impacted by a revaluation of deferred tax assets due to the lower corporate tax rate resulting from the Tax Cuts and Jobs Act. This revaluation and write-down resulted in an effective tax rate of 218% in the quarter ended December 31, 2017. Net income for the six-month period ended December 31, 2018 was $403,000 or $0.13 per diluted share compared to a loss of ($153,000) or ($0.05) per diluted share in the six-month period ended December 31, 2017.
Non-performing assets at December 31, 2018 totaled $1.1 million consisting of $0.7 million in nonperforming loans and $0.4 million on other real estate owned, compared to $1.5 million at June 30, 2018, consisting of $0.8 million in non-performing loans and $0.7 million in other real estate owned. At December 31 2018, the loan loss allowance was $1.8 million, which represented 1.44% of total loans and 237.0% of non-performing loans compared to $1.8 million at June 30, 2018, which represented 1.43% of total loans and 214.8% of non-performing loans. In addition, at December 31, 2018, the Bank had a credit impairment allowance of $440,000 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 $160.4 million at December 31, 2018 compared to $167.2 million at June 30, 2018. Loans decreased by $1.2 million as the Bank experienced significant pay-offs in the quarter. Deposits decreased $7.1 million due primarily to retail customers utilizing these funds to purchase assets and quarter end volatility in transaction account balances.
BayVanguard's Tier 1 leverage capital ratio was 13.04% at December 31, 2018 compared to 12.23% at June 30, 2018. 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.
BV Financial, Inc.
Consolidated Financial Highlights
(In thousands, except per share data)
| 12/31/2018 | 6/30/2018 | |||||||
| (unaudited) | ||||||||
Selected Balance Sheet Data: | ||||||||
Total
Assets | $ | 160,403 | $ | 167,206 | ||||
Investment securities | 17,506 | 19,009 | ||||||
Loans
recievable, net | 123,451 | 124,608 | ||||||
Total
Deposits | 131,543 | 138,685 | ||||||
Borrowings | 3,000 | 3,000 | ||||||
Stockholders' Equity | 22,007 | 21,650 | | |||||
Three Months Ended September 30,
Operating results: | 2018 | 2017 | ||||||
Interest Income | $ | 1,743 | $ | 1,664 | ||||
Interest Expense | 217 | 199 | ||||||
Net Interest income | 1,526 | 1,465 | ||||||
Provision for Loan Losses | 30 | 60 | ||||||
Net Interest Income after provision | 1,496 | 1,405 | ||||||
Non-Interest Income | 100 | 101 | ||||||
Non-Interest expense | 1,302 | 1,233 | ||||||
Income before taxes | 294 | 273 | ||||||
Income taxes | 54 | 596 | ||||||
Net
Income | $ | 240 | $ | (323 | ) | |||
Diluted Income per share | $ | 0.08 | $ | (0.11 | ) | |||
Six Months Ended September 30,
Operating results: | 2018 | 2017 | ||||||
Interest Income | $ | 3,431 | $ | 3,345 | ||||
Interest Expense | 423 | 396 | ||||||
Net Interest income | 3,008 | 2,949 | ||||||
Provision for Loan Losses | 50 | 120 | ||||||
Net Interest Income after provision | 2,958 | 2,829 | ||||||
Non-Interest Income | 223 | 198 | ||||||
Non-Interest expense | 2,676 | 2,495 | ||||||
Income before taxes | 505 | 532 | ||||||
Income taxes | 102 | 685 | ||||||
Net
Income | $ | 403 | $ | (153 | ) | |||
Diluted Income per share | $ | 0.13 | $ | (0.05 | ) | |||
SOURCE: BV Financial, Inc.
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