BV Financial, Inc. Announces Financial Results

BV Financial, Inc. Announces Financial Results BALTIMORE, MD / ACCESS Newswire / July 24, 2026 / BV Financial, Inc. (NASDAQ:BVFL), the holding company for BayVanguard Bank (the "Bank"), today reported net income of $3.5 million, or $0.42 per diluted share, for the quarter ended June 30, 2026 compared to net income of $2.9 million, or $0.29 per diluted share, for the quarter ended June 30, 2025. Net income for the six-month period ended June 30, 2026 was $4.6 million or $0.55 per diluted share compared to net income of $5.0 million or $0.50 per diluted share for the six-month period ended June 30, 2025.

Adjusted net income, a non-GAAP financial metric, was $3.9 million or $0.47 per diluted share and $3.7 or $0.37 per diluted share million for the quarters ended June 30, 2026 and 2025 and $7.1 million or $0.86 per diluted share and $6.7 million or $0.67 per diluted share for the year to date periods ended June 30, 2026 and 2025, respectively. For a reconciliation of net income as reported and Non-GAAP adjusted net income, see the table below.

Additionally, management refers to another non-GAAP metric called Operating Pre-Provision Net revenue (OPPNR) to monitor the Company's financial results. This metric excludes the expense, or reversal of the expense for the provision for credit losses as well as changes in the effective tax rate. Since the adoption of ASC 326 (CECL) in January 2023, the provision line item on the income statement has been extremely volatile, making this metric more meaningful. OPPNR was $5.2 million or $0.63 per diluted share for the three months ended June 30, 2026 compared to $5.4 million or $0.54 per diluted share for the three months ended June 30, 2025. OPPNR was $10.1 million or $1.22 per diluted share in the six-months ended June 30, 2026 compared to $9.6 million or $0.97 per diluted share in the six months ended June 30, 2025. For a reconciliation of net income as reported and Non-GAAP OPPNR, see the table below.

Financial Highlights

Return on average assets and return on average equity for the three months ended June 30, 2026 was 1.54% and 7.56%, respectively.

Net loans decreased $44.3 million or 5.9% to $711.6 million compared to $754.9 million at December 31, 2025.

Deposits decreased $0.2 million or -0.03% from $676.1 million at December 31, 2025 to $675.9 million at June 30, 2026.

All $35.0 million in borrowings from the Federal Home Loan Bank of Atlanta "FHLB" that were outstanding at March 31, 2026 were paid off in the quarter. This pay-off resulted in a gain (decrease in interest expense) of $0.3 million.

Non-accrual loans increased $1.1 million to $3.4 million at June 30, 2026 from $2.3 million at December 31, 2025..

The Company recorded reversals in the provisions for credit losses of $216,000 for the three months ended June 30, 2026 and $227,000 for the six months ended June 30, 2026.

During the quarter ended June 30, 2026, the Company repurchased 230,000 shares of its outstanding common stock at an average price of $20.03.

FINANCIAL CONDITION DISCUSSION

Total Assets. Total assets were $877.9 million at June 30, 2026, a decrease of $34.3 million, or -3.76%, from $912.2 million at December 31, 2025. The decrease was due primarily to the Company utilizing cash resulting from shrinkage of the loan portfolio to repay $35.0 million in borrowings from the FHLB.

Cash and Cash Equivalents. Cash and cash equivalents increased $13.2 million, or 23.7%, to $68.9 million at June 30, 2026 from $55.7 millionat December 31, 2025. The increase in cash is primarily a result of loan pay-offs exceeding the pay-off of the FHLB borrowings.

Loans Receivable. Loans receivable decreased $44.3 million, or 5.9%, to $710.6 million at June 30,2026 from $754.9 million at December 31, 2025. The largest decreases in the portfolio occurred in the construction & land ($12.6 million), commercial investor real estate ($10.6 million) and commercial ($10.4 million).

Securities. Securities available for sale decreased by $1.0 million or 3.0% from December 31, 2025 as paydowns in the mortgage-backed securities were not replaced with new purchases. The held-to-maturity portfolio experienced a slight decrease due to paydowns.

Federal Home Loan Bank Stock Federal Home Loan Bank of Atlanta stock decreased $1.7 million or 71.6% as a result of the advance pay-off reducing the required ownership amount.

Total Liabilities. Total liabilities decreased $33.6 million or -4.6%, to $694.7million at June 30,2026 from $728.4million at December 31, 2025. The decrease was due primarily to the decrease in borrowings.

Deposits. Total deposits decreased $0.2 million, or -0.03% to $675.9 million at June 30, 2026 from $676.1 million at December 31, 2025. Interest-bearing deposits were flat at $138.4 million. Noninterest bearingdeposits decreased $0.2 million, or -0.03%, to $537.5 millionat June 30, 2026 from $537.7 million at December 31, 2025.

Stockholders' Equity. Stockholders' equity decreased $0.6 million, or -0.33%, to $183.2 millionat June 30, 2026 from $183.8 million at December 31, 2025 as net income and the impact of earned stock compensation was offset by $6.6 million in stock repurchases during the period.

RESULTS OF OPERATION DISCUSSION

Net Income. Net income was $3.5 million or $0.42 per diluted share for the three months ended June 30, 2026 compared to $2.9 million or $0.29 per diluted share for the three months ended June 30, 2025. Net income was $4.6 million or $0.55 per diluted share for the six months ended June 30, 2026 compared to $5.0 million or $0.50 per diluted share for the six months ended June 30, 2025. The decrease in income for the year to date period is due to the $2.2 million first quarter executive transition expense and the related tax impact.

Net Interest Income. Net interest income was $9.5 million for the three months ended June 30, 2026 compared to $9.2 million for the three months ended June 30, 2025.The net interest margin for the three months ended June 30, 2026 was 4.58% compared to 4.36% for the three months ended June 30, 2025. The increase in net interest income was primarily due to higher yields on interest earning assets and lower interest expense due to the pay-offs of borrowings.

Net interest income was $18.6 million for the six months ended June 30, 2026, compared to $17.8 million in the six months ended June 30, 2025. The net interest margin for the six months ended June 30, 2026 was 4.47% compared to 4.24% for the six months ended June 30, 2025. The increase in net interest income was primarily due to higher yields earned on loans and lower interest expense due to the pay-off of the FHLB borrowings in 2026 and the pay-off of the subordinated debentures in December 2025.

Noninterest Income. For the three months ended June 30, 2026, noninterest income totaled approximately $467,000 compared to $714,000 for the quarter ended June 30, 2025. The decrease is attributable to the $135,000 write-down of a former branch location to estimated sales proceeds and lower miscellaneous fees on loans and deposits.

For the six months ended June 30, 2026 noninterest income totaled $1.0 million compared to $1.2 million for the six months ended and June 30, 2025. The decrease is due to lower miscellaneous loan and deposit fees and the write-down of the former branch location.

Noninterest Expense. For the three months ended June 30, 2026, noninterest expense totaled $5.5 million compared to $5.8 million in the three months ended June 30, 2025. Decreases in compensation and benefits of $506,000 due lower staffing and lower expenses of the 2024 Equity plan offset increases in other categories. Occupancy expense increased by $97,000 primarily due to costs of repairing a branch location after a major water leak. Professional fees increased due to higher legal expenses, data processing expense increased due to new product implementation fees and other expenses increased due to higher loan related expenses.

For the six months ended June 30, 2026, noninterest expense totaled $13.1 million as compared to $11.9 million in the six months ended June 30, 2025. Compensation and benefits expense increased $0.7 million due to the $2.2 million cost of the executive transition in the first quarter somewhat offset by lower staffing and lower costs of the 2024 Equity plan. Occupancy expense increased by $109,000 due to the branch repair costs noted above and higher heating bills in the first quarter. Adjusting for expenses related to the 2024 Equity Plan and executive transition, non-interest expense for the six months ended June 30, 2026 increased 0.8% to $9.68 million, compared with $9.60 million for the six months ended June 30, 2025.

Asset Quality. Non-performing assets at June 30, 2026 totaled $3.4 million, of which all are nonperforming loans, compared to $2.3 million at December 31, 2025, also all of which are nonperforming loans. At June 30, 2026, the allowance for credit losses on loans was $6.2 million, which represented 0.87% of total loans and 182.1% of non-performing loans compared to $6.4 million at December 31, 2025, which represented 0.85% of total loans and 284.7% of non-performing loans.

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. Department of the Treasury and the Board of Governors of the Federal Reserve Board, 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, the current or anticipated impact of military conflict, terrorism or other geopolitical events, 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. 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 Six Months

Ended June 30,

2026

2025

2026

2025

1.54

1.26

1.00

1.09

7.56

5.78

4.97

5.03

3.95

3.60

3.81

3.48

4.58

4.36

4.47

4.24

5.86

5.84

5.83

5.75

1.91

2.24

2.01

2.27

2.07

2.02

2.04

2.02

6.21

6.04

6.16

5.97

2.44

2.54

2.89

2.62

54.87

58.30

66.62

62.66

149.24

151.25

148.83

149.86

21.88

20.21

21.62

0.87

1.22

0.87

1.22

182.07

208.61

182.07

208.61

0.00

-0.01

0.48

0.58

0.48

0.58

0.39

0.48

0.39

0.48

0.39

0.50

0.39

0.50

0.43

0.29

0.56

0.50

0.42

0.29

0.55

0.50

21.50

19.19

21.50

19.19

19.74

17.72

19.74

17.72

8,012,679

9,858,540

8,077,169

9,878,319

(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.

(5) Represents total equity less goodwill less other intangible assets divided by common shares outstanding. See non-GAAP reconciliation table.

BV FINANCIAL, INC.

Consolidated Balance Sheets

June 30,

2026

December 31,

2025

(unaudited)

derived from

audited financial

statements

8,664

5,616

60,238

50,089

68,902

55,705

405

404

32,218

33,226

5,647

5,736

710,625

754,921

(6,214

)

(6,437

)

704,411

748,484

12,223

12,493

661

2,324

20,642

20,441

3,020

3,149

14,420

561

651

7,558

7,563

7,288

7,617

877,956

912,213

138,384

138,360

537,506

537,734

675,890

676,094

35,000

18,865

17,315

694,755

728,409

63,629

68,834

(6,879

)

(6,978

)

127,543

122,990

(1,177

)

(1,130

)

183,201

183,804

877,956

912,213

BV FINANCIAL, INC.

Consolidated Statements of Income

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

11,165

11,334

22,308

22,075

282

324

571

674

713

562

1,318

1,305

12,205

12,266

24,287

24,147

2,771

2,622

5,423

5,223

(104

)

215

465

1,125

2,667

3,110

5,638

6,348

9,538

9,156

18,649

17,799

(216

)

178

(227

)

475

9,754

8,978

18,876

17,324

105

112

215

216

182

177

346

341

116

114

202

201

(135

)

(135

)

199

311

367

485

467

714

995

1,243

3,512

4,018

9,292

8,542

476

379

932

823

437

395

836

792

315

249

551

479

178

185

)

172

165

510

488

1,009

845

5,490

5,755

13,088

11,932

4,731

3,937

6,783

6,635

1,269

1,076

2,230

1,675

3,462

2,861

4,553

4,960

0.43

0.29

0.56

0.50

0.42

0.29

0.55

0.50

BV FINANCIAL, INC.

Average Balance Sheet for the Quarters ended June 30,

(Dollars in thousands)

For the Three Months Ended June 30,

2026

2025

Average Outstanding Balance

Interest

Average Yield/Rate

Average Outstanding Balance

Interest

Average Yield/Rate

(Unaudited)

721,303

11,165

6.21

752,181

11,334

6.04

32,614

282

3.47

34,770

324

3.74

7,396

2.44

6,624

2.79

73,450

713

3.92

49,450

562

4.60

834,763

12,205

5.86

843,025

12,266

5.84

65,598

64,324

900,361

907,349

70,143

153

0.87

76,698

159

0.83

115,314

145

0.50

120,584

106

0.35

130,067

744

2.29

125,686

766

2.44

221,400

1,729

3.13

197,488

1,591

3.23

536,924

2,771

2.07

520,456

2,622

2.02

22,418

(104

)

(1.86

1,978

4.66

34,945

465

5.34

22,418

(104

)

(1.86

36,923

488

5.30

559,342

2,667

1.91

557,379

3,110

2.24

139,862

134,841

18,063

16,930

717,267

709,150

183,094

198,199

900,361

907,349

9,538

9,156

3.95

3.60

275,421

285,646

4.58

4.36

149.24

151.25

BV FINANCIAL, INC.

Average Balance Sheet for the Six Months ended June 30,

(Dollars in thousands)

For the Six Months Ended June 30,

2026

2025

Average Outstanding Balance

Interest

Average Yield/Rate

Average Outstanding Balance

Interest

Average Yield/Rate

(Unaudited)

730,542

22,308

6.16

745,958

22,075

5.97

33,073

571

3.48

35,821

674

3.79

7,716

2.35

6,971

2.69

69,357

1,318

3.85

58,091

1,305

4.55

840,688

24,287

5.83

846,841

24,147

5.75

65,489

64,667

906,177

911,508

72,925

320

0.88

78,414

330

400.00

115,572

292

0.51

121,516

206

0.34

127,407

1,428

2.26

125,326

1,530

2.46

220,277

3,383

3.10

196,439

3,157

3.24

536,181

5,423

2.04

521,695

5,223

2.02

28,674

215

1.51

8,453

194

4.63

34,925

931

5.38

28,674

215

1.51

43,378

1,125

5.23

564,855

5,638

2.01

565,073

6,348

2.27

139,835

133,419

18,353

15,939

723,043

714,433

183,134

197,075

906,177

911,508

18,649

17,799

3.82

3.48

275,833

281,768

4.47

4.24

148.83

149.86

ALLOWANCE FOR CREDIT LOSS - LOANS

(Dollars in thousands)

QTR

YTD

6/30/2026

6,399

6,437

(200

)

(256

)

(14

)

(33

)

(15

)

(33

)

6,214

125

6,340

(16

)

(16

)

(216

)

(227

)

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 June 30,

Six Months ended June 30,

2026

2025

2026

2025

3,462

2,861

4,553

4,960

601

1,162

1,204

2,332

2,203

(159

)

(308

)

(903

)

(618

)

3,904

3,715

7,057

6,674

0.48

0.38

0.88

0.68

0.47

0.37

0.86

0.67

9,538

9,156

18,649

17,799

467

714

995

1,243

(5,490

)

(5,755

)

(13,088

)

(11,932

)

601

1,162

1,204

2,332

2,203

5,212

5,366

10,146

9,625

0.65

1.26

0.97

0.63

0.54

1.22

0.97

2026

2025

183,201

197,991

14,420

561

741

168,220

182,830

8,520,225

10,318,408

19.74

17.72

SOURCE: BV Financial, Inc.