BV Financial(BVFL) - 2024 Q2 - Quarterly Report

Financial Position - Total assets increased by $11.9 million, or 1.4$897.2 million at June 30, 2024, from $885.3 million at December 31, 2023[148] - Total liabilities increased by$5.5 million, or 0.8%, to $691.7 million at June 30, 2024, primarily due to a$6.2 million increase in deposits[151] - Stockholders' equity increased by $6.4 million, or 3.2$205.5 million at June 30, 2024, primarily due to net income of $7.0 million[152] - Total assets rose to$891,857 thousand in 2024, up from $876,605 thousand in 2023, marking a growth of 1.4$202,853 thousand in 2024, compared to $102,366 thousand in 2023, indicating significant growth in shareholder value[154] Cash and Deposits - Cash and cash equivalents rose by$16.9 million, or 22.9%, to $90.6 million at June 30, 2024, primarily due to increased deposits and lower loan originations[148] - Total deposits increased by$6.2 million, or 1.0%, to $640.3 million at June 30, 2024, with interest-bearing deposits rising by$7.2 million, or 1.5%[152] - The company replaced $10.0 million in retail certificates of deposit with brokered deposits at a lower cost during the first quarter of 2024[152] - The company had$10.0 million in brokered deposits at June 30, 2024, compared to none at June 30, 2023[178] - The company had $57.4 million in municipal deposits at June 30, 2024, representing 9.0$198.3 million, or 29.0% of total deposits, with $50.6 million secured using pledged collateral or letters of credit issued by FHLB[178] Loans and Credit Quality - Loans receivable decreased by$2.4 million, or 0.34%, to $702.4 million at June 30, 2024, with significant decreases in one- to four-family real estate loans and owner-occupied commercial real estate loans[149] - The allowance for credit losses remained relatively unchanged at$8.5 million, with a ratio of allowance for credit losses to total loans at 1.22% at June 30, 2024, compared to 1.16% at June 30, 2023[150] - Non-performing assets decreased to $8.4 million at June 30, 2024, down from$10.9 million at December 31, 2023, reflecting improved asset quality[175] Income and Expenses - Net income for the three months ended June 30, 2024 was $3.4 million, or$0.32 per diluted share, a decrease from $3.9 million, or$0.49 per diluted share, for the same period in 2023[162] - Interest income increased by $1.1 million, or 10.2$11.6 million for the three months ended June 30, 2024, primarily due to increases in interest income on loans and cash equivalents[163] - Interest income on loans rose by $850,000, or 9.1$10.2 million for the three months ended June 30, 2024, driven by a 3.9% increase in the average balance of loans[163] - Interest expense increased by $406,000, or 17.7$2.7 million for the three months ended June 30, 2024, mainly due to a $976,000 increase in interest expense on deposits[165] - Non-interest income totaled$596,000 for the three months ended June 30, 2024, a significant decrease from $1.4 million for the same period in 2023 due to the absence of gains from the sale of foreclosed real estate[170] - Non-interest expense increased to$4.9 million for the three months ended June 30, 2024, up from $4.5 million in the same period in 2023, driven by higher compensation and benefits[171] Interest and Margins - Net interest income for the three months ended June 30, 2024, was$8,909 thousand, compared to $8,237 thousand for the same period in 2023, representing an increase of 8.2$162.5 million available under a line of credit with the FHLB of Atlanta, with an additional borrowing availability of $137.5 million[176] Securities - Securities available for sale decreased by$1.9 million, or 5.5%, to $32.9 million at June 30, 2024, due to new purchases not fully replacing maturities[150]