BV Financial, Inc. Announces Financial Results

BALTIMORE, MD / ACCESSWIRE / April 26, 2017 / BV Financial, Inc. (OTC PINK: BVFL), the holding company for Bay-Vanguard Federal Savings Bank, today reported net income of $492,000, or $0.16 per diluted share, for the nine months ended March 31, 2017, compared to net income of $486,000, or $0.16 per diluted share, for the nine months ended March 31, 2016. In addition, the Company reported net income of $179,000, or $0.06 per diluted share, for the quarter ended March 31, 2017, compared to net income of $77,000, or $0.03 per diluted share, for the quarter ended March 31, 2016.

The increase in net income for the nine months ended March 31, 2017 was largely attributable to a decrease in the provision for loan losses of $109,000 to $326,000, and a decrease in operating expenses of $52,000, offsetting lower non-interest income and lower net interest income. The lower provision for loan losses and operating expenses are attributable to improvements in credit quality. Lower non-interest income is due primarily to a $53,000 loss on the sale of a building formerly used for storage. Lower net interest income is due to lower loan balances. The net interest margin was 4.00% for the nine months ended March 31, 2017, as compared to 4.01% for the nine months ended March 31, 2016.

The increase in net income for the three months ended March 31, 2017 was largely attributable to a decrease of $105,000 in the provision for loan losses and a $79,000 decrease in operating expenses offsetting a $24,000 decrease in net interest income.

Non-performing assets decreased 49% to $2.7 million at March 31, 2017, compared to $5.3 million at June 30, 2016. At March 31, 2017, the loan loss allowance was $2.1 million, which represented 1.70% of total loans and 86.8% of non-performing loans, compared to $2.1 million at June 30, 2016, which represented 1.7% of total loans and 46.4% of non-performing loans. In addition, at March 31, 2017, the Bank had a credit impairment allowance of $614,000 that is not included in the loan loss allowance. The credit impairment allowance was established for loans acquired in the merger with Vigilant Savings Bank in 2013.

As of March 31, 2017, BV Financial, Inc. assets of $169.8 million, net loans of $124.1 million, deposits of $141.8 million, and total stockholders' equity of $21.4 million, compared to $169.1 million, $125.5 million, $141.2 million, and $21.0 million at June 30, 2016.

Bay-Vanguard's Tier 1 leverage capital ratio was 11.78% at March 31, 2017, compared to 11.50% at June 30, 2016. 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.

Contact:

Michael J. Dee
Chief Financial Officer
(410) 477-5000

SOURCE: BV Financial, Inc.