BV Financial, Inc. (OTCBB: BVFL), the holding company for Bay-Vanguard Federal Savings Bank, today reported net income of $205,000, or $0.09 per diluted share, for the six months ended December 31, 2012 compared to net income of $366,000, or $0.15 per diluted share, for the six months ended December 31, 2011. In addition, the Company reported net income of $195,000, or $0.08 per diluted share, for the quarter ended December 31, 2012, compared to net income of $163,000, or $0.07 per diluted share, for the quarter ended December 31, 2011.

The decrease in income for the six months ended December 31, 2012 was attributed to a decrease in net interest income and non-interest income and an increase in non-interest expense. The decrease in non-interest income was due to a gain on sale of fixed assets in 2011. The increase in non-interest expense was primarily due to merger-related expenses and an increase in compensation, occupancy and professional fee expense. The provision for loan losses was $362,000 for the six months ended December 31, 2012 compared to $431,000 for the six months ended December 31, 2011. Non-performing loans were $3.2 million at December 31, 2012 compared to $2.6 million at June 30, 2012 mainly due to an increase in non-performing one- to four-family residential loans. At December 31, 2012, the loan loss allowance was $1.3 million, which represented 1.3% of total loans and 41.7% of non-performing loans compared to $1.3 million at June 30, 2012, which represented 1.3% of total loans and 51.3% of non-performing loans.

The loan portfolio increased $3.3 million due primarily to the increase in boat loans, which increased from $1.1 million at June 30, 2012 to $3.0 million at December 31, 2012, and to a lesser extent, an increase in one- to four-family loans. The investment portfolio decreased $5.0 million as those funds were used to fund loan growth and deposit outflows. Deposits decreased $1.5 million for the six months ended December 31, 2012, primarily as maturing certificate of deposit accounts were not reinvested in the Bank.

Bay-Vanguard's Tier 1 capital ratio was 9.48% at December 31, 2012 compared to 9.15% at June 30, 2012. 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)
 
 
  12/31/2012   6/30/2012    
 
Selected Balance Sheet Data: (unaudited)
Total assets $ 143,923 $ 148,657
Investment securities 13,872 18,906
Loans receivable, net 105,336 102,075
Total deposits 127,882 129,380
Stockholders' equity 16,041 15,830
 
 
Three months Six months
ended December 31, ended December 31,
  2012   2011   2012   2011
Operating Results: (unaudited) (unaudited) (unaudited) (unaudited)
Interest income $ 1,529 $ 1,645 $ 3,142 $ 3,328
Interest expense 242 319 511 645

 

 

 

 

Net interest income 1,287 1,326 2,631 2,683
Provision for loan losses 55 212 362 431

 

 

 

 

Net interest income after provision

1,232 1,114 2,269 2,252
Non-interest income 91 65 147 184
Non-interest expense 1,002 868 2,085 1,832

 

 

 

 

Income before income taxes

321 311 331 604
 
Income taxes 125 148 126 238

 

 

 

 

 
Net income $ 196 $ 163 $ 205 $ 366
 
Diluted income per share $ 0.08 $ 0.07 $ 0.09 $ 0.15
 

BV Financial, Inc.
David M. Flair
Chief Financial Officer
410-547-1088