BALTIMORE--(BUSINESS WIRE)--BV Financial, Inc. (OTCBB: BVFL), the holding company for Bay-Vanguard Federal Savings Bank, today reported net income of $647,000, or $0.22 per diluted share, for the nine months ended March 31, 2015 compared to net income of $581,000, or $0.20 per diluted share, for the nine months ended March 31, 2014. In addition, the Company reported net income of $166,000, or $0.06 per diluted share, for the quarter ended March 31, 2015, compared to net income of $212,000, or $0.07 per diluted share, for the quarter ended March 31, 2014.
The increase in net income for the nine months ended March 31, 2015 was largely attributable to an increase in noninterest income of $347,000 and a decrease in the provision for loan losses of $191,000, offsetting lower net interest income and higher operating expenses. Noninterest income increased due to gains on the sale of a former branch building of $173,000 and the gain on the sale of an REO property of $162,000. This REO gain is in effect a recovery of costs incurred during the nine-month period to bring the property up to saleable condition. The lower provision expense was due to a lower level of charge-offs. For the nine months ended March 31, 2015, net charge-offs totaled $149,000 as compared to $547,000 in the nine months ended March 31, 2014. Net interest income decreased $334,000 primarily due to lower loan balances. Operating expenses increased $230,000 primarily due to increases in other real estate owned holding costs and write-downs of $345,000 and higher professional fees of $113,000 incurred due to loan workout costs. These increases were somewhat offset by lower compensation and other expenses.
The decrease in net income for the three months ended March 31, 2015 was largely attributable to a decrease in net interest income of $108,000, a slightly higher provision for loan losses of $11,000 and higher operating expenses of $55,000. Net interest income decreased due to lower loan balances. Operating expenses increased $55,000 primarily due to increases in other real estate owned holding costs and write-downs of $141,000 and higher professional fees of $38,000 incurred due to loan workout costs. The Company recognized a tax benefit after we reassessed the gain on the sale of the former branch building.
Non-performing assets decreased by $0.9 million or 15.0%, to $5.1 million at March 31, 2015 compared to $6.0 million at June 30, 2014. Non- performing loans increased to $3.9 million on March 31, 2015 from $3.6 million at June 30, 2014. At March 31, 2015 the loan loss allowance was $1.8 million, which represented 1.4% of total loans and 47.4% of non-performing loans compared to $1.6 million at June 30, 2014, which represented 1.2% of total loans and 43.7% of non-performing loans. In addition at March 31, 2015, the Bank had a credit impairment allowance of $741,000 that is not included in the loan loss allowance. The credit impairment allowance was established for loans acquired in the acquisition of Vigilant Federal Savings Bank in May 2013.
As of March 31, 2015, BV Financial, Inc. had assets of $170.7 million, net loans of $127.6 million, deposits of $143.0 million and total stockholders’ equity of $21.0 million compared to $178.4 million, $131.9 million, $150.8 million and $20.3 million at June 30, 2014, the Company’s previous fiscal year end.
Bay-Vanguard’s Tier 1 leverage capital ratio was 10.41% at March 31, 2015 compared to 9.82% at June 30, 2014. 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) | |||||||||||||||||
| 3/31/2015 | 6/30/2014 | ||||||||||||||||
| Selected Balance Sheet Data: | (unaudited) | ||||||||||||||||
| Total assets | $ | 170,730 | $ | 178,417 | |||||||||||||
| Investment securities | 13,508 | 14,391 | |||||||||||||||
| Loans receivable, net | 127,604 | 131,940 | |||||||||||||||
| Total deposits | 142,939 | 150,804 | |||||||||||||||
| Stockholders’ equity | 20,971 | 20,285 | |||||||||||||||
| Three months | Nine months | ||||||||||||||||
| ended March 31, | ended March 31, | ||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| Operating Results: | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Interest income | $ | 1,725 | $ | 1,850 | $ | 5,368 | $ | 5,779 | |||||||||
| Interest expense | 176 | 193 | 542 | 619 | |||||||||||||
| Net interest income | 1,549 | 1,657 | 4,826 | 5,160 | |||||||||||||
| Provision for loan losses | 138 | 127 | 423 | 614 | |||||||||||||
| Net interest income after provision | 1,411 | 1,530 | 4,403 | 4,546 | |||||||||||||
| Non-interest income | 70 | 84 | 578 | 231 | |||||||||||||
| Non-interest expense | 1,329 | 1,274 | 4,050 | 3,820 | |||||||||||||
| Income before income taxes | 152 | 340 | 931 | 957 | |||||||||||||
| Income taxes | (16 | ) | 128 | 284 | 376 | ||||||||||||
| Net income | $ | 166 | $ | 212 | $ | 647 | $ | 581 | |||||||||
| Diluted income per share | $ | 0.06 | $ | 0.07 | $ | 0.22 | $ | 0.20 | |||||||||