BV Financial Reports Q1 2025 Results with $2.1 Million Net Income

BV Financial, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $2.1 million, or $0.21 per diluted share, a decrease from $2.6 million, or $0.24 per diluted share, in the same period last year. The company's total interest income increased by 8.0% to $11.9 million, driven primarily by a rise in interest income from loans, which grew by 9.8% to $10.7 million. This increase was attributed to a higher average balance of loans and an increase in the average yield on loans, which rose to 5.89% from 5.54% year-over-year.

In terms of financial position, BV Financial's total assets reached $921.9 million as of March 31, 2025, marking a 1.1% increase from $911.8 million at the end of 2024. This growth was largely due to a $12.0 million increase in net loans, which rose to $741.3 million, while securities available for sale decreased by $2.1 million to $35.2 million. The allowance for credit losses also saw a slight increase to $8.9 million, representing 1.18% of total loans, compared to 1.15% at the end of the previous year.

Operationally, total deposits increased by $6.4 million, or 1.0%, to $657.9 million, with noninterest-bearing deposits rising by 5.0% to $136.3 million. The company’s total liabilities increased by 1.1% to $723.9 million, primarily due to the growth in deposits. Stockholders' equity also saw a modest increase of 1.3% to $198.1 million, supported by net income and stock-based compensation, despite share repurchases totaling $981,000 during the quarter.

BV Financial's strategic initiatives included the adoption of a new stock repurchase program, allowing for the repurchase of up to 10% of its outstanding shares. This program follows the completion of a previous repurchase initiative in January 2025. The company continues to focus on maintaining a strong liquidity position, with a line of credit of $165.6 million available from the Federal Home Loan Bank of Atlanta, alongside a commitment to monitor deposit retention and manage interest rates to attract new accounts.

Looking ahead, BV Financial remains optimistic about its growth prospects, although it acknowledges potential challenges from economic conditions, interest rate fluctuations, and competition in the banking sector. The company is committed to leveraging its operational strengths and strategic initiatives to navigate these challenges and enhance shareholder value.