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BV Financial, Inc. Announces Financial Results

February 5, 2014

BALTIMORE --(BUSINESS WIRE)-- BV Financial, Inc. (OTCBB: BVFL), the holding company for Bay-Vanguard Federal Savings Bank , today reported net income of $369,000 , or $0.16 per diluted share, for the six months ended December 31, 2013 compared to net income of $205,000 , or $0.09 per diluted share, for the six months ended December 31, 2012 . In addition, the Company reported net income of $263,000 , or $0.09 per diluted share, for the quarter ended December 31, 2013 , compared to net income of $196,000 , or $0.08 per diluted share, for the quarter ended December 31, 2012 . The increase in net income for the six months ended December 31, 2013 was largely attributable to an increase in net interest income of $471,000 , offset by increases in the provision for loan losses of $79,000 and non-interest expense of $263,000 . The increase in net interest income was the result of an increase in interest-earning assets primarily due to the Bank’s acquisition of Vigilant Federal Savings Bank in May 2013 . The increase in the provision for loan losses is reflective of the continued difficult economic environment and the Company’s efforts to reduce problem loans and due to increased charge-offs, offset by a decrease in non-performing loans. Charge-offs were $184,000 for the three months ended December 31, 2013 as compared to $39,000 for the three-month period ended December 31, 2012 . The charge-offs for the three months ended December 31, 2013 were primarily due to the write-downs of two one-to-four family non-owner-occupied loans. Non-performing loans decreased to $4.8 million at December 31, 2013 compared to $5.2 million at June 30, 2013 . At December 31, 2013 , the loan loss allowance was $1.4 million , which represented 1.01% of total loans and 29.2% of non-performing loans compared to $1.4 million at June 30, 2013 , which represented 1.01% of total loans and 26.4% of non-performing loans. In addition at December 31, 2013 , the Bank had a credit impairment allowance of $907,000 that is not included in the loan loss allowance. The credit impairment allowance was established for loans acquired in the Vigilant merger. Non-interest expense increased primarily due to an increase in costs associated with an additional branch and personnel acquired in the Vigilant acquisition. Total assets decreased to $179.7 million at December 31, 2013 compared to $185.2 million at June 30, 2013 . Cash and cash equivalents decreased $3.1 million , due primarily to deposit outflows, while loans receivable increased $600,000 . Deposits decreased $5.7 million primarily due to a decrease in certificates of deposits and checking accounts. Stockholders equity increased $407,000 as a result of net income and an increase in accumulated other comprehensive income. Bay-Vanguard’s Tier 1 capital ratio was 9.56% at December 31, 2013 compared to 8.89% at June 30, 2013 . 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 three 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) 12/31/2013 6/30/2013 Selected Balance Sheet Data: (unaudited) Total assets $ 179,709 $ 185,695 Investment securities 15,632 16,979 Loans receivable, net 136,311 135,716 Total deposits 152,285 157,996 Borrowings 4,241 3,267 Stockholders’ equity 19,919 19,512 Three months Six months ended December 31 , ended December 31 , 2013 2012 2013 2012 Operating Results: (unaudited) (unaudited) (unaudited) (unaudited) Interest income $ 1,964 $ 1,529 $ 3,929 $ 3,142 Interest expense 206 242 426 511 Net interest income 1,758 1,287 3,503 2,631 Provision for loan losses 134 55 487 362 Net interest income after provision 1,624 1,232 3,016 2,269 Non-interest income 67 91 146 147 Non-interest expense 1,265 1,002 2,545 2,085 Income before income taxes 426 321 617 331 Income taxes 163 125 248 126 Net income $ 263 $ 196 $ 369 $ 205 Diluted income per share $ 0.09 $ 0.08 $ 0.16 $ 0.09 BV Financial, Inc. David M. Flair Chief Executive Officer 410-477-5000 Source: BV Financial, Inc.


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