BV Financial(BVFL) - 2024 Q4 - Annual Results

Financial Performance - Net income for the year ended December 31, 2024, was $11.7 million, or$ 1.10 per diluted share, a decrease from $13.7 million, or$ 1.47 per diluted share for 2023[1] - Adjusted net income for the year remained stable at $12.9 million for both 2024 and 2023, while for the fourth quarter, it decreased to$ 2.7 million from $3.0 million[2] - Noninterest income for the year fell to$ 2.5 million from $3.8 million in 2023, impacted by the absence of significant gains from asset sales[17] - Noninterest expense for the year increased to$ 21.5 million, up from $19.4 million in 2023, with compensation and benefits rising by 14.3% due to salary increases and equity awards[19] - The company reported a net income (GAAP) of$ 11,723 thousand for the year ended December 31, 2024, down from $13,707 thousand in 2023, a decrease of 14.5%[37] - Non-GAAP adjusted net income for the year ended December 31, 2024, was$ 12,956 thousand, slightly up from $12,897 thousand in 2023, indicating stable operational performance[37] Asset and Liability Management - Total assets increased by$ 26.5 million, or 3.00%, to $911.8 million at December 31, 2024, primarily due to a$ 33.0 million increase in net loans[4] - Total assets as of December 31, 2024, were $890,458 thousand, a marginal increase from$ 887,232 thousand in 2023[32] - The company’s total liabilities decreased to $687,334 thousand in 2024 from$ 749,260 thousand in 2023, showing improved financial leverage[32] Loan and Deposit Growth - Net loans receivable rose by $33.0 million, or 4.74%, to$ 729.2 million at December 31, 2024, driven by increases in various loan categories[6] - Total deposits increased by $17.4 million, or 2.74%, to$ 651.5 million at December 31, 2024, with interest-bearing deposits rising by $36.3 million, or 7.5%[9] - Total deposits increased to$ 651,491 thousand in 2024, up from $634,120 thousand in 2023, an increase of 2.8%[26] Interest Income and Margin - Net interest income for the year was$ 35.2 million, an increase from $34.2 million in 2023, with a net interest margin of 4.27% compared to 4.23%[15] - Total interest income for the year ended December 31, 2024, was$ 46,682 thousand, up 7.2% from $43,419 thousand in 2023[28] - The net interest margin improved to 4.27% in 2024 from 4.23% in 2023, indicating a positive trend in interest income generation[32] - The average yield on loans increased to 5.81% in 2024 from 5.52% in 2023, reflecting better pricing on loan products[32] Credit Quality and Risk Management - Non-performing assets decreased to$ 4.2 million at December 31, 2024, down from $10.7 million a year earlier, reflecting improved asset quality[12] - The allowance for credit losses on loans at the end of 2024 was$ 8,522 thousand, up from $8,001 thousand at the beginning of the year, reflecting a proactive approach to credit risk management[34] - The provision for credit losses was$ 604 thousand for the three months ended December 31, 2024, compared to $435 thousand in 2023, indicating a rise of 38.8%[28] - The total provision for credit losses for the year was$ 604 thousand, compared to a recovery of $203 thousand in 2023, indicating a shift in credit quality outlook[34]