BV Financial, Inc. Announces Financial Results

Announces Adoption and Regulatory Non-Objection For Stock Repurchase Program

BALTIMORE, MD / ACCESS Newswire / October 17, 2025 / BV Financial, Inc. (NASDAQ:BVFL), the holding company for BayVanguard Bank (the "Bank"), today reported net income of $3.7 million, or $0.41 per diluted share, for the quarter ended September 30, 2025 compared to net income of $3.8 million, or $0.35 per diluted share, for the quarter ended September 30, 2024. Net income for the nine-month period ended September 30, 2025 was $8.7 million or $0.88 per diluted share compared to net income of $9.8 million or $0.91 per diluted share for the nine-month period ended September 30, 2024.

Adjusted net income, a non-GAAP financial metric, was $4.4 million and $4.1 million for the quarters ended September 30, 2025 and 2024, respectively, and $11.1 million and $10.0 million for the nine months ended September 30, 2025, and 2024, respectively. For a reconciliation of net income as reported and non-GAAP adjusted net income, see the table attached to this press release.

Financial Highlights

Return on average assets and return on average equity for the three months ended September 30, 2025, was 1.65% and 7.77%, respectively. Return on average assets and return on average equity for the nine months ended September 30, 2025 was 1.27% and 5.93%, respectively.

Net loans increased $8.6 million or 1.2% to $737.9 million compared to $729.2 million on December 31, 2024.

Deposits increased $12.3 million or 1.9% from $651.5 million on December 31, 2024 to $663.8 million at September 30, 2025.

Non-accrual loans decreased $500,000 to $3.5 million at September 30, 2025 from $4.0 million at December 31, 2024.

The Company recorded a recovery of provision for credit losses of $1.0 million for the three months ended September 30, 2025 and $539,000 for the nine months ended September 30, 2025.

During the quarter ended September 30, 2025, the Company repurchased 782,324 shares of its outstanding common stock at an average price of $16.14.

FINANCIAL CONDITION DISCUSSION

Total Assets. Total assets were $909.4 million at September 30, 2025, a decrease of $2.4 million, or 0.27%, from $911.8 million at December 31, 2024.

Cash and Cash Equivalents. Cash and cash equivalents decreased $7.0 million, or 9.9%, to $63.5 million at September 30, 2025 from $70.5 million at December 31, 2024. The decrease in cash was primarily a result loan growth and the pay-off of $15 million in FHLB borrowings offset by deposit growth and securities repayments.

Loans Receivable. Loans receivable increased $8.3 million, or 1.1%, to $746.1 million at September 30, 2025 from $737.8 million at December 31, 2024. Increases in in owner occupied 1-4 loans, commercial loans and construction loans offset decreases in investor commercial real estate loans, non-owner occupied 1-4 loans, owner occupied 1-4 junior liens, owner occupied commercial real estate, marine and farm loans.

Securities. Securities available for sale decreased by $2.8 million or 7.5% from December 31, 2024 as paydowns and maturities were not fully replaced with new purchases. The held-to-maturity portfolio experienced a slight decrease due to paydowns.

Total Liabilities. Total liabilities increased $2.8 million or 0.4%, to $719.2 million at September 30, 2025 from $716.3 million at December 31, 2024. The increase was due primarily to the increase in deposits and other liabilities offset by a decrease in borrowings.

Deposits. Total deposits increased $12.3 million, or 1.9% to $663.8 million at September 30, 2025 from $651.5 million at December 31, 2024. Interest-bearing deposits increased $7.3 million, or 1.4%, to $529.0 million at September 30, 2025 from $521.8 million at December 31, 2024. Noninterest bearing deposits increased $5.0 million, or 3.9%, to $134.7 million at September 30, 2025 from $129.7 million at December 31, 2024.

Stockholders' Equity. Stockholders' equity decreased $5.3 million, or 2.7%, to $190.2 million at September 30, 2025 from $195.5 million at December 31, 2024 as net income, the decrease in the accumulative other comprehensive loss and the impact of equity compensation plans was offset by $17.7 million in stock repurchase during the year-to-date period.

RESULTS OF OPERATION DISCUSSION

Net Income. Net income was $3.7 million or $0.41 per diluted share for the three months ended September 30, 2025 compared to $3.8 million or $0.35 per diluted share for the three months ended September 30, 2024. Net income was $8.7 million or $0.88 per diluted share for the nine months ended September 30, 2025 compared to $9.8 million or $0.91 per diluted share for the nine months ended September 30, 2024. The decreases were due to higher compensation expenses and smaller credits to the provision for credit losses offsetting higher net interest and other income.

Net Interest Income. Net interest income was $9.4 million for the three months ended September 30, 2025 compared to $9.3 million for the three months ended September 30, 2024. The net interest margin for the three months ended September 30, 2025 was 4.40% compared to 4.49% for the three months ended September 30, 2024. The increase in net interest income was due to higher average balances of interest earning assets and higher yields on these assets offset by a higher average balance of deposits and higher rates paid on deposits.

Net interest income was $27.1 million for the nine months ended September 30, 2025, compared to $26.2 million in the nine months ended September 30, 2024. The net interest margin for the nine months ended September 30, 2025 was 4.29% compared to 4.25% for the nine months ended September 30, 2024. The increase in net interest income was due to higher average balances of interest earning assets and higher yields on these assets offsetting the increase in interest expense due to a higher volume of deposits and higher rates paid on deposits.

Noninterest Income. For the three months ended September 30, 2025, noninterest income totaled approximately $684,000 compared to $696,000 for the quarter ended September 30, 2024.

For the nine months ended September 30, 2025 and September 30, 2024, noninterest income totaled $1.9 million.

Noninterest Expense. For the three months ended September 30, 2025, noninterest expense totaled $5.9 million compared to $5.5 million in the three months ended September 30, 2024. Compensation and benefits increased $570,000, primarily due to the costs of the 2024 equity incentive plan. For the quarter ended September 30, 2024, the expenses of the 2024 equity incentive plan were only applicable for one month based on the grant dates of the awards. All other expense categories combined decreased by $165,000 in the quarter ended September 30, 2025 when compared to the quarter ended September 30, 2024.

For the nine months ended September 30, 2025, noninterest expense totaled $17.8 million as compared to $15.3 million in the nine months ended September 30, 2024. Compensation and benefits expense increased $2.9 million. For the nine months ended September 30, 2025, the expenses of the 2024 equity incentive plan were applicable for all nine months compared to one month for the nine month period ended September 30, 2024. The increase in plan expenses totaled $2.9 million in the 2025 year-to-date period when compared to the same period in 2024. All other expense categories combined decreased by $374,000 in the quarter ended September 30, 2025 when compared to the quarter ended September 30, 2024.

Asset Quality. Non-performing assets at September 30, 2025 totaled $3.5 million consisting of $3.5 million in nonperforming loans and $0 in other real estate owned, compared to $4.2 million at December 31, 2024, consisting of $4.0 million in non-performing loans and $159,000 in other real estate owned. At September 30, 2025, the allowance for credit losses on loans was $8.2 million, which represented 1.10% of total loans and 233.5% of non-performing loans compared to $8.5 million at December 31, 2024, which represented 1.15% of total loans and 212.5% of non-performing loans.

STOCK REPURCHASE PROGRAM

The Company has adopted, and received the non-objection of the Federal Reserve Bank of Richmond (the "Federal Reserve") to initiate, a stock repurchase program for up to 10% of the Company's outstanding shares of common stock (approximately 9,536,094 shares). This is the Company's third stock repurchase program since completing its mutual-to-stock conversion and related stock offering on July 31, 2023. The second stock repurchase program was completed in September 2025.

Repurchases are expected to commence after the date of this press release. Once initiated, shares of the Company's common stock may be repurchased pursuant to the program in open market or private transactions, through block trades, or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. The repurchase program will expire on June 30, 2026, unless extended by the Board of Directors pursuant to further non-objection from the Federal Reserve.

Repurchases will be made at management's discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company's financial performance. Open market purchases will be subject to the limitations set forth in Rule 10b-18 of the Securities and Exchange Commission and other applicable legal requirements.

The timing and amount of share repurchases under this authorization may be suspended, terminated or modified by the Company at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The Company is not obligated to repurchase any particular number of shares or any shares in any specific time period.

Forward-Looking Statements

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, increased competitive pressures, the effects of inflation, the imposition of tariffs or other domestic or international governmental policies, potential recessionary conditions, general economic conditions or conditions within the securities markets, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the FRB, the impact of the federal government shutdown, changes in the quality, size and composition of our loan and securities portfolios, changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio, changes in demand for our products and services, accounting and tax changes, 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, a potential government shutdown, a failure in or breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company's financial condition and results of operations and the business in which the Company and the Bank are engaged and the failure to maintain current technologies, our ability to enter into new markets successfully and capitalize on growth opportunities and the failure to retain or attract employees.

BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Baltimore, Maryland with twelve branches in the Baltimore metropolitan area and the eastern shore of Maryland. The Bank is a full-service community-oriented financial institution dedicated to serving the financial service needs of consumers and businesses.

Contact:

Michael J. Dee

Chief Financial Officer

(410) 477- 5000

BV FINANCIAL, INC.

Consolidated Financial Ratios

At or For the Three Months

At or For the Nine Months

Ended September 30,

2025

2024

2025

2024

1.65

1.70

1.27

1.46

7.77

7.32

5.93

6.39

3.65

3.71

3.54

3.48

4.40

4.49

4.29

4.25

2.59

2.46

2.61

2.29

58.58

54.73

61.25

54.53

150.18

156.49

149.97

155.24

21.19

23.29

21.48

22.90

1.10

1.15

1.10

1.15

233.53

201.60

233.53

201.60

0.00

-0.04

0.00

-0.04

0.47

0.57

0.47

0.57

0.39

0.44

0.39

0.44

0.39

0.46

0.39

0.46

105

111

105

111

9,078,667

10,752,069

9,580,446

10,686,024

(1) Performance ratios are annualized.

(2) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(3) Represents net interest income as a percentage of average interest-earning assets.

(4) Represents non-interest expenses divided by the sum of net interest income and non-interest income.

BV FINANCIAL, INC.

Consolidated Balance Sheets

September 30, 2025

December 31, 2024

(unaudited)

6,061

5,842

57,485

64,658

63,546

70,500

405

391

34,482

37,259

5,784

5,979

746,072

737,760

(8,197

)

(8,522

)

737,875

729,238

159

12,686

13,224

656

1,366

20,347

20,058

3,049

3,161

14,420

696

831

9,267

8,899

6,173

6,336

909,386

911,821

134,742

129,724

529,048

521,767

663,790

651,491

15,000

35,000

34,883

20,386

14,948

719,176

716,322

106

80,151

94,679

(7,023

)

(7,160

)

118,185

109,495

(1,198

)

(1,621

)

190,210

195,499

909,386

911,821

BV FINANCIAL, INC.

Consolidated Statements of Income

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

11,519

10,522

33,594

30,481

329

353

1,003

966

139

266

633

1,192

1,938

3,058

12,527

12,150

36,674

34,771

2,712

2,381

7,935

6,610

194

465

466

1,396

1,985

3,177

2,847

9,525

8,595

9,350

9,303

27,149

26,176

(1,014

)

(714

)

(539

)

(806

)

10,364

10,017

27,688

26,982

122

103

337

303

183

175

524

529

289

290

)

273

327

760

747

684

696

1,928

1,869

4,064

3,494

12,606

9,714

415

396

1,238

1,242

372

366

1,164

1,117

239

400

718

757

278

301

)

135

247

246

561

590

1,405

1,751

5,878

5,473

17,810

15,292

5,170

5,240

11,806

13,559

1,440

1,442

3,116

3,788

3,730

3,798

8,690

9,771

0.41

0.35

0.89

0.91

0.41

0.35

0.88

0.91

BV FINANCIAL, INC.

Average Balance Sheet for the Quarters ended September 30,

(Dollars in thousands)

For the Three Months Ended September 30,

2025

2024

Average Outstanding Balance

Interest

Average Yield/Rate

Average Outstanding Balance

Interest

Average Yield/Rate

(Unaudited)

743,119

11,519

6.15

690,170

10,522

6.05

35,107

329

3.72

36,201

353

3.87

6,465

2.82

9,937

3.31

57,784

633

4.38

86,322

1,192

5.48

842,475

12,527

5.90

822,630

12,150

5.86

63,948

68,767

906,423

891,397

75,302

151

0.80

79,652

207

1.03

117,422

136

0.46

128,918

0.27

128,265

787

2.43

108,518

669

2.45

205,022

1,638

3.17

173,751

1,416

3.23

526,011

2,712

2.05

490,839

2,381

1.92

34,983

465

5.27

34,827

466

5.30

34,983

465

5.27

34,827

466

5.30

560,994

3,177

2.25

525,666

2,847

2.15

137,179

140,039

16,191

18,101

714,364

683,806

192,059

207,591

906,423

891,397

9,350

9,303

3.65

3.71

281,481

296,964

4.40

4.49

150.18

156.49

BV FINANCIAL, INC.

Average Balance Sheet for the Nine Months ended September 30,

(Dollars in thousands)

For the Nine Months Ended September 30,

2025

2024

Average Outstanding Balance

Interest

Average Yield/Rate

Average Outstanding Balance

Interest

Average Yield/Rate

745,001

33,594

6.03

701,310

30,481

5.79

35,580

1,003

3.77

34,569

966

3.72

6,801

139

2.73

10,507

266

3.37

57,988

1,938

4.49

74,720

3,058

5.46

845,370

36,674

5.80

821,106

34,771

5.64

64,424

68,985

909,794

890,091

77,365

482

0.83

83,683

681

1.08

120,136

342

0.38

138,474

250

0.24

126,316

2,318

2.45

96,724

1,496

2.06

199,332

4,793

3.21

174,896

4,183

3.19

523,149

7,935

2.03

493,777

6,610

1.78

5,604

194

4.63

34,944

1,396

5.34

35,139

1,985

7.53

40,548

1,590

5.24

35,139

1,985

7.53

563,697

9,525

2.26

528,916

8,595

2.16

134,686

139,642

16,027

17,676

714,410

686,234

195,384

203,857

909,794

890,091

27,149

26,176

3.54

3.48

281,673

292,190

4.29

4.25

149.97

155.24

ALLOWANCE FOR CREDIT LOSS - LOANS

(Dollars in thousands)

QTR

YTD

9/30/2025

9,159

8,522

(980

)

(387

)

(19

)

(16

)

(47

)

(18

)

(62

)

8,197

203

8,402

(33

)

(151

)

(34

)

(152

)

(1,014

)

(539

)

RECONCILIATION TABLE (UNAUDITED)

NON-GAAP ADJUSTED NET INCOME

Non-GAAP Reconciliation

In addition to results presented in accordance with generally accepted accounting principles utilized in the Unites States ("GAAP"), this earnings release contains a non-GAAP financial measure, Non-GAAP adjusted net income. The Company believes this non-GAAP financial measure is useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time. Non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Three Months ended September 30,

2025

2024

3,730

3,798

701

279

4,431

4,077

Nine Months ended September 30,

2025

2024

8,690

9,771

2,415

279

11,105

10,050

SOURCE: BV Financial, Inc.