VWF Bancorp Reports $385,893 Net Loss for Quarter, Interest Income Rises 46.3%

VWF Bancorp, Inc. reported its financial results for the three and nine months ended March 31, 2025, revealing a net loss of $385,893 for the quarter, a decrease of 37.6% from a loss of $618,606 in the same period last year. For the nine-month period, the net loss increased to $3.3 million, compared to a loss of $1.4 million in the prior year. The company attributed the increase in the nine-month loss primarily to a $2.4 million loss on the sale of securities, alongside increased operational costs.

Total interest income for the quarter rose to $4.85 million, a 46.3% increase from $3.31 million in the previous year, driven by a significant rise in interest from loans and investment securities. Interest on loans surged by 79.9% to $2.24 million, while interest from investment securities increased by 28.8% to $2.49 million. The average yield on loans also improved, reaching 5.65% compared to 4.85% a year earlier. However, total interest expense also rose sharply, increasing by 48.2% to $2.86 million, reflecting higher costs associated with deposits and borrowings.

In terms of operational metrics, VWF Bancorp's total assets grew by 19.7% to $372.4 million as of March 31, 2025, up from $311.3 million at the end of the previous fiscal year. This growth was primarily fueled by a $44.4 million increase in investment securities and a $40.1 million rise in net loans, which reached $166.5 million. The company reported a 31.8% increase in net loans, reflecting its strategy to expand its loan portfolio, particularly in commercial and residential real estate.

Deposits also saw a significant increase, rising by 44.9% to $303.2 million, with core deposits growing by 32.1% to $165.3 million. The company noted that brokered certificates of deposit increased by 63.9%, indicating a strategic shift to enhance liquidity. Shareholders' equity decreased by 3.7% to $35.2 million, primarily due to the net loss and unrealized losses on securities.

Looking ahead, VWF Bancorp aims to continue its growth trajectory by focusing on increasing its loan portfolio and optimizing its investment strategy. The management has indicated a commitment to enhancing operational efficiency and maintaining a strong liquidity position, while also navigating the challenges posed by market conditions and interest rate fluctuations.