BV Financial, Inc. Announces Financial Results

BALTIMORE, MD / ACCESS Newswire / January 23, 2026 / BV Financial, Inc. ( NASDAQ:BVFL), (the "Company") the holding company for BayVanguard Bank (the "Bank"), reported net income of $13.5 million, or $1.43 per diluted share, for the year ended December 31, 2025 compared to net income of $11.7 million, or $1.10 per diluted share, for the year ended December 31, 2024. Net income for the quarter ended December 31, 2025 was $4.8 million, or $0.57 per diluted share, compared to net income of $2.0 million, or $0.18 per diluted share, for the quarter ended December 31, 2024.

Adjusted net income, a non-GAAP financial metric, was $16.3 million and $12.9 million for the years ended December 31, 2025 and 2024, respectively. For the quarters ended December 31, 2025 and 2024, adjusted net income was $5.6 million and $2.4 million, respectively. For a reconciliation of Net Income as reported and non-GAAP adjusted net income, see the reconciliation table contained at the end of this press release.

The Company also announced today a transition in executive leadership. Additional information regarding this matter in included in the Company's Form 8-K filed with the Securities and Exchange Commission today.

FinancialHighlights

Return on average assets and return on average equity for the year ended December 31, 2025 were 1.48% and 7.01%, respectively. Return on average assets and return on average equity for the three months ended December 31, 2025 were 2.09% and 10.45%, respectively.

Net loans increased $19.2 million, or 2.6% to $748.5 million at December 31, 2025 compared to $729.2 million at December 31, 2024.

Deposits increased $24.6 million, or 3.8%, from $651.5 million at December 31, 2024 to $676.1 million at December 31, 2025.

During the quarter ended December 31, 2025, the Company paid off the $35.0 million in subordinated debt issued in 2020 concurrently with the acquisition of Delmarva Bancshares. The Company replaced this borrowing with $35.0 million in lower cost advances from the Federal Home Loan Bank of Atlanta.

During the year ended December 31, 2025, the Company repurchased 1,823,997 shares of common stock at an average price of $16.23, including 714,555 shares repurchased during the three months ended December 31, 2025, at an average price of $16.63.

During the quarter ended December 31, 2025, the Company recorded a recovery of the provision for credit losses of $1.9 million consisting of a recovery of the provision of $1.8 million in the allowance for credit losses (ACL) - loans and $108,000 in the ACL-unfunded commitments. During the year ended December 31, 2025, the Company recorded a recovery of the provision for credit losses of $2.4 million.

Financial Condition

Total Assets. Total assets were $912.2 million at December 31, 2025, an increase of $392,000 from $911.8 million at December 31, 2024. The increase was due primarily to a $19.2 million increase in net loans receivable to $748.5 million at December 31, 2025, partially offset by a $14.8 million decrease in cash and cash equivalents and a $4.0 million decrease in securities available for sale.

Cash and Cash Equivalents. Cash and cash equivalents decreased $14.8 million, or 21.0%, to $55.7 million at December 31, 2025 from $70.5 million at December 31, 2024 as excess cash was used to fund loans and repay the subordinated debt.

Net Loans Receivable. Net loans receivable increased $19.2 million, or 2.6%, to $748.5 million at December 31, 2025 from $729.2 million at December 31, 2024. Increases in 1-4 family owner occupied, construction loans and commercial loans offset decreases in owner occupied commercial real estate loans, commercial investor loans, non-owner occupied 1-4 family loans, farm loans, consumer loans and loans guaranteed by the U.S. Government.

Securities. Securities available for sale ("AFS") decreased $4.0 million, or 10.8%, to $33.2 million at December 31, 2025 from $37.3 million at December 31, 2024. Securities held to maturity (HTM) decreased $243,000 or 4.1% to $5.7 million at December 31, 2025. The decreases were due to pay-downs and maturities.

Total Liabilities. Total liabilities increased $12.1 million, or 1.7%, to $728.4 million at December 31, 2025 from $716.3 million at December 31, 2024. The increase was primarily due to an increase in deposits of $24.6 million, partially offset by a decrease in borrowings of $14.9 million.

Deposits. Total deposits increased $24.6 million, or 3.8%, to $676.1 million at December 31, 2025 from $651.5 million at December 31, 2024. Interest-bearing deposits increased $16.0 million, or 3.1%, to $537.7 million at December 31, 2025 from $521.8 million at December 31, 2024. Noninterest bearing deposits increased $8.6 million, or 6.7%, to $138.4 million at December 31, 2025 from $129.7 million at December 31, 2024.

Borrowings. The Company had $35.0 million in Federal Home Loan Bank borrowings at December 31, 2025 compared to $15.0 million in Federal Home Loan Bank borrowings at December 31, 2024. These borrowings from the FHLB replaced the $35.0 million in subordinated debt issued in 2020.

Stockholders' Equity. Stockholders' equity decreased $11.7 million or 6.0%, to $183.8 million at December 31, 2025 primarily due to $29.8 million in stock repurchases, offset by $13.5 million of net income and $4.6 million in other adjustments, primarily equity compensation. During the year, the Company repurchased 1.8 million shares of common stock at an average cost of $16.23.

Asset Quality. Non-performing assets at December 31, 2025 totaled $2.3 million consisting of $2.3 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 $160,000 in other real estate owned. The decrease in non-performing loans is due to pay-offs received in the quarter. At December 31, 2025, the allowance for credit losses on loans was $6.4 million, which represented 0.85% of total loans and 284.72% of non-performing loans compared to $8.5 million at December 31, 2024, which represented 1.15% of total loans and 212.51% of non-performing loans.

Comparison of Operating Results for the Three and Twelve Months Ended December 31, 2025 and 2024

Net Income. Net income for the quarter ended December 31, 2025 was $4.8 million, or $0.56 per diluted share, compared to net income of $2.0 million, or $0.18 per diluted share, for the quarter ended December 31, 2024. TheCompany reported net income of $13.5 million or $1.43 per diluted share, for the year ended December 31, 2025 compared to net income of $11.7 million, or $1.10 per diluted share, for the year ended December 31, 2024.

Net Interest Income. Net interest income was $9.8 million for the three months ended December 31, 2025 compared to $9.0 million in the three months ended December 31, 2024. The net interest margin for the three months ended December 31, 2025 was 4.52% compared to 4.34% for the three months ended December 31, 2024.

Net interest income was $36.9 million for the year ended December 31, 2025, compared to $35.2 million in the year ended December 31, 2024. The net interest margin for the year ended December 31, 2025 was 4.35% compared to 4.27% for the year ended December 31, 2024.

In each case, the increase was primarily due to the yield on interest-earning assets increasing at a greater rate than the cost on interest-bearing liabilities.

Provision for Credit Losses

During the quarter and year ended December 31, 2025, the Company recorded recoveries in the provision for credit losses of $1.9 million and $2.4 million, respectively. During the fourth quarter, based on a recommendation from a third-party validation report on the CECL model and methodology, the Company expanded the number of independent variables used in the forecast economic adjustment. The Company added the Federal Reserve's forecast of the unemployment rate to the regression analysis that had previously used only the Federal Reserve's forecast of GDP. This change resulted in a decrease in the required ACL-Loans in the fourth quarter of $945,000 when compared to the September 30, 2025 calculation. The remaining decrease in the calculated required ACL-loans was primarily due to formula-driven qualitative factor adjustments for loan segment growth and asset quality.

Noninterest Income. For the three months ended December 31, 2025, noninterest income totaled $793,000 compared to $644,000 in the quarter ended December 31, 2024.

For the year ended December 31, 2025, noninterest income totaled $2.7 million as compared to $2.5 million for the year ended December 31, 2024.

Noninterest Expense. For the three months ended December 31, 2025 noninterest expense totaled $5.4 million compared to $6.2 million for the three months ended December 31, 2024. Compensation and benefits expenses decreased by 15.4%, primarily due to the reduced cost of the equity awards granted in 2024 after the stockholders approved the 2024 Equity Incentive Plan. These expenses decreased to $601,000 in the quarter ended December 31, 2025 compared to $1.2 million in the quarter ended December 31, 2024.

For the year ended December 31, 2025 noninterest expense totaled $23.2 million compared to $21.5 million in the year ended December 31, 2024. Compensation and benefits increased by 15.9% due to increases the full year of costs of the equity awards granted after the stockholders approved the 2024 Equity Incentive Plan compared to four months of costs of the plan in 2024. During the year ended December 31, 2025 expense related to this plan was $3.9 million as compared to $1.5 million in the year ended December 31, 2024.

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, 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 imposition of tariffs and any retaliatory responses, 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, the failure to retain or attract employees.

BV Financial, Inc.

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.

BV FINANCIAL, INC.

Consolidated Financial Ratios

At or For the Three Months

At or For the Year

Ended December 31,

2025

2024

2025

2024

2.09

0.88

1.48

1.32

10.45

3.83

7.01

5.77

3.81

3.59

3.61

3.50

4.52

4.34

4.35

4.27

2.34

2.79

2.54

2.42

50.99

64.27

58.52

57.02

146.60

154.03

149.10

154.92

19.98

22.91

21.07

22.88

0.85

1.15

0.85

1.15

284.72

212.51

284.72

212.51

0.00

-0.04

0.00

-0.04

0.30

0.57

0.30

0.54

0.25

0.44

0.25

0.44

0.25

0.46

0.25

0.46

102

111

102

111

8,454,700

10,785,370

9,380,039

10,678,729

(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

December 31, 2025

December 31, 2024

(unaudited)

derived from audited financial statements

5,616

5,842

50,089

64,658

55,705

70,500

404

391

33,226

37,259

5,736

5,979

754,921

737,760

(6,437

)

(8,522

)

748,484

729,238

159

12,493

13,224

2,324

1,366

20,441

20,058

3,149

3,161

14,420

651

831

7,563

8,899

7,617

6,336

912,213

911,821

138,360

129,724

537,734

521,767

676,094

651,491

35,000

15,000

34,883

17,315

14,948

728,409

716,322

106

68,834

94,679

(6,978

)

(7,160

)

122,990

109,495

(1,130

)

(1,621

)

183,804

195,499

912,213

911,821

BV FINANCIAL, INC.

Consolidated Statements of Income

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

12,003

10,522

45,596

41,003

323

354

1,326

1,319

185

314

660

987

2,600

4,046

13,032

11,911

49,707

46,682

2,770

2,432

10,704

9,042

279

426

465

1,823

2,451

3,281

2,899

12,806

11,495

9,751

9,012

36,901

35,187

(1,890

)

604

(2,429

)

(203

)

11,641

8,408

39,330

35,390

125

123

462

426

182

177

706

111

383

400

(24

)

(32

)

416

233

1,175

982

793

644

2,720

2,514

3,631

4,291

16,237

14,005

386

374

1,624

1,616

364

1,528

1,480

215

252

933

1,008

370

396

180

181

330

326

539

697

1,943

2,450

5,377

6,206

23,187

21,498

7,057

2,846

18,863

16,406

2,253

895

5,368

4,683

4,804

1,951

13,495

11,723

0.57

0.18

1.44

1.10

0.56

0.18

1.43

1.10

BV FINANCIAL, INC.

Average Balance Sheet for the Quarters ended December 31,

(Dollars in thousands)

For the Three Months Ended December 31,

2025

2024

Average Outstanding Balance

Interest

Average Yield/Rate

Average Outstanding Balance

Interest

Average Yield/Rate

(Unaudited)

750,689

12,003

6.34

709,668

10,522

5.88

34,338

323

3.73

38,447

354

3.65

6,865

2.66

6,668

2.86

63,344

660

4.16

68,523

987

5.74

855,236

13,032

6.05

823,306

11,911

5.74

65,535

68,633

920,771

891,939

84,993

197

0.92

87,548

196

0.89

115,959

157

0.54

123,838

0.23

123,111

737

2.38

117,039

777

2.63

215,725

1,679

3.09

171,063

1,386

3.21

539,788

2,770

2.04

499,488

2,432

1.93

9,348

3.61

163

4.87

34,239

426

4.94

34,867

465

5.29

43,587

511

4.65

35,030

467

5.29

583,375

3,281

2.23

534,518

2,899

2.15

134,516

134,007

18,890

20,471

736,781

688,996

183,990

202,943

920,771

891,939

9,751

9,012

3.81

3.59

271,861

288,788

4.52

4.34

146.60

154.03

BV FINANCIAL, INC.

Average Balance Sheet for the Years ended December 31,

(Dollars in thousands)

For the Year Ended December 31,

2025

2024

Average Outstanding Balance

Interest

Average Yield/Rate

Average Outstanding Balance

Interest

Average Yield/Rate

(Unaudited)

746,435

45,596

6.11

703,411

41,003

5.81

35,267

1,326

3.76

35,544

1,319

3.70

6,816

185

2.71

9,542

314

3.28

59,338

2,600

4.41

73,096

4,046

5.53

847,856

49,707

5.86

821,593

46,682

5.67

65,793

68,865

913,649

890,458

79,288

679

0.86

84,655

878

1.03

119,083

499

0.42

134,795

323

0.24

125,508

3,055

2.43

101,831

2,274

2.23

203,464

6,471

3.18

173,932

5,567

3.19

527,343

10,704

2.03

495,213

9,042

1.82

6,547

279

4.26

4.86

34,766

1,823

5.24

35,071

2,451

6.97

41,313

2,102

5.09

35,112

2,453

6.97

568,656

12,806

2.25

530,325

11,495

2.16

134,643

137,935

17,838

19,074

721,137

687,334

192,512

203,124

913,649

890,458

36,901

35,187

3.61

3.50

279,200

291,268

4.35

4.27

149.10

154.92

ALLOWANCE FOR CREDIT LOSS - LOANS

(Dollars in thousands)

QTR

YTD

12/31/2025

8,197

8,522

(1,781

)

(2,168

)

(22

)

(24

)

(70

)

(21

)

(83

)

6,437

6,533

(108

)

(259

)

(109

)

(261

)

(1,890

)

(2,429

)

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 December 31,

2025

2024

4,804

1,951

786

442

5,590

2,393

Year ended December 31,

2025

2024

13,495

11,723

2,777

1,133

16,272

12,856

Contact:

Michael J. Dee

Chief Financial Officer

(410) 477- 5000

SOURCE: BV Financial, Inc.