VWF Bancorp Reports $2.3 Million Net Loss Amid Increased Interest Income and Asset Growth

VWF Bancorp, Inc. reported a net loss of $2.3 million for the three months ended December 31, 2024, a significant increase from a loss of $299,000 in the same period last year. For the six months ended December 31, 2024, the net loss was $3.0 million, compared to a loss of $738,000 for the prior year. The increase in losses was primarily attributed to a $2.4 million loss on the sale of low-yielding fixed-rate securities, alongside increased operational costs. Total interest income rose to $4.6 million for the quarter, up 62.5% from $2.8 million, driven by higher yields on loans and investment securities.

The company's total assets increased by 5.8% to $329.2 million as of December 31, 2024, compared to $311.3 million at June 30, 2024. This growth was fueled by a $22.1 million increase in net loans, which reached $148.5 million, and an $8.6 million rise in investment securities, totaling $151.3 million. The increase in loans was part of VWF's strategy to expand its portfolio, particularly in commercial real estate and owner-occupied residential loans. Deposits also saw a substantial increase of $80.4 million, or 38.4%, reaching $289.7 million, with brokered certificates of deposit rising significantly.

Operationally, VWF Bancorp has focused on enhancing its product offerings and expanding its market presence. The company has made strategic investments in staffing and technology to support its transition to a regional commercial bank. As of December 31, 2024, the company had 1,951,765 shares of common stock issued, with 1,911,413 outstanding. The increase in employee headcount reflects the company's commitment to growth and operational efficiency.

The provision for credit losses increased to $248,000 for the quarter, up from $94,000 in the prior year, reflecting the growth in the loan portfolio. The allowance for credit losses stood at $990,926, indicating a proactive approach to managing potential defaults. The company reported total nonperforming and substandard loans of $573,000, slightly up from $529,000 a year earlier, with total loans past due greater than 30 days amounting to $1.5 million.

Looking ahead, VWF Bancorp aims to continue its growth trajectory by focusing on higher-yielding assets and expanding its loan portfolio. The management remains optimistic about the company's ability to navigate market challenges and capitalize on opportunities in the evolving financial landscape. The company is committed to maintaining a strong liquidity position and has the capacity to borrow from the Federal Home Loan Bank and the Federal Reserve Bank, ensuring it can meet its funding commitments.