BV Financial, Inc. Reports Earnings Decline in Q1 2024

BV Financial, Inc., the parent company of BayVanguard Bank, revealed a net income of $2.6 million, or $0.24 per diluted share, for the quarter ending March 31, 2024. This represents a decrease from the $3.1 million, or $0.39 per diluted share reported for the same quarter in 2023. A significant factor contributing to the reduced earnings was a $566,000 write-off associated with the pay-off of junior subordinated debt.

The company showcased modest growth in its assets, with total assets amounting to $892.5 million, marking an increase of 0.82% over the prior quarter. This growth was driven by increases in cash and loan receivables. Deposits also saw a rise, increasing by $5.4 million to $639.5 million as of March 31, 2024. The bank replaced $10 million in retail certificates of deposit with brokered deposits during the quarter, which was cost-effective but affected noninterest-bearing deposits, which decreased by $2.9 million.

BV Financial faced challenges in its net interest margin, which decreased to 3.91% from 4.34% year over year, primarily due to increased costs associated with interest-bearing liabilities. Noninterest income declined to $578,000 from $807,000, largely due to lower income from insurance policies. The company posted an income tax expense of $1.0 million, reflecting an effective tax rate of 28.5%.