BV Financial(BVFL) - 2025 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2025 was $2.9 million, or $0.29 per diluted share, down from $3.4 million, or $0.32 per diluted share in Q2 2024, reflecting a decrease of 14.7%[2] - Noninterest income for Q2 2025 was approximately $714,000, up from $596,000 in Q2 2024, marking a 19.7% increase[16] - Noninterest expense for Q2 2025 totaled $5.8 million, an increase of 18.4% from $4.9 million in Q2 2024, driven by higher compensation and benefits[17] - The return on average assets for Q2 2025 was 1.26%, down from 1.52% in Q2 2024[24] - Net income for the three months ended June 30, 2025, was $2,861 thousand, down from $3,399 thousand in 2024, a decline of 15.9%[29] - Basic earnings per share for the three months ended June 30, 2025, was $0.29, compared to $0.32 in 2024, a decrease of 9.4%[29] - Non-GAAP adjusted net income for the six months ended June 30, 2025, reached $6,688 thousand, up from $5,973 thousand in 2024, indicating a growth of 11.9%[38] Asset and Liability Management - Total assets decreased by $3.5 million, or 0.4%, to $908.3 million as of June 30, 2025, primarily due to the repayment of $15.0 million in borrowings[5] - Total assets decreased slightly to $908,327 thousand as of June 30, 2025, from $911,821 thousand at December 31, 2024, representing a decline of 0.5%[27] - Total liabilities decreased to $710,336 thousand as of June 30, 2025, from $716,322 thousand at December 31, 2024, a reduction of 0.8%[27] - Total liabilities increased to $714,433 thousand in 2025, up from $686,326 thousand in 2024, reflecting a growth of 4.1%[33] Loan and Deposit Activity - Net loans increased by $13.2 million, or 1.8%, to $742.4 million compared to December 31, 2024[6] - Total deposits rose by $7.4 million, or 1.1%, to $658.9 million as of June 30, 2025, with noninterest-bearing deposits increasing by 3.7%[10] - Total deposits increased to $658,891 thousand as of June 30, 2025, from $651,491 thousand at December 31, 2024, an increase of 1.9%[27] - Non-performing loans increased to $4.4 million, representing 0.58% of total loans, compared to 1.17% in the previous year[19] Interest Income and Margin - The net interest margin for Q2 2025 was 4.36%, slightly up from 4.33% in Q2 2024, indicating improved efficiency in earning assets[13] - Total interest income for the three months ended June 30, 2025, was $12,266 thousand, an increase of 5.6% compared to $11,617 thousand for the same period in 2024[29] - Net interest income after provision for credit losses was $8,978 thousand for the three months ended June 30, 2025, slightly down from $9,020 thousand in 2024, a decrease of 0.5%[29] - The net interest margin improved to 4.36% for the three months ended June 30, 2025, compared to 4.33% in 2024[31] - Net interest income for the six months ended June 30, 2025, was $17,799 thousand, compared to $16,872 thousand in the same period of 2024, representing an increase of 5.5%[33] - The net interest margin improved to 4.24% in 2025 from 4.12% in 2024, showing a positive trend in profitability[33] - The net interest rate spread improved to 3.48% in 2025 from 3.10% in 2024, indicating enhanced efficiency in interest income generation[33] Credit Risk Management - The allowance for credit loss on loans increased to $9,159 thousand as of June 30, 2025, compared to $8,888 thousand at the beginning of the period, reflecting a proactive approach to credit risk management[35] - The provision for credit loss on loans for the six months ended June 30, 2025, was $593 thousand, compared to $178 thousand for the same period in 2024, highlighting increased provisions due to credit risk considerations[35]