Financial Position - Total assets increased by $75.9 million, or 8.9%, to $920.8 million as of June 30, 2023, compared to $844.9 million at December 31, 2022[212] - Total liabilities increased by $69.1 million, or 9.3%, to $816.4 million at June 30, 2023, primarily due to $54.9 million in funds collected for capital raise and a $25.5 million increase in Federal Home Loan Bank borrowings[216] - Stockholders' equity increased by $6.7 million, or 6.9%, to $104.5 million at June 30, 2023, primarily due to $7.0 million in net income[271] - The Company’s net deferred tax asset totaled $8.9 million as of June 30, 2023[204] - The balance of retained earnings as of June 30, 2023, was $91,079,000, an increase from $84,612,000 as of December 31, 2022[231] Loan and Credit Quality - Net loans receivable rose by $35.7 million, or 5.4%, to $694.8 million at June 30, 2023, driven by increases in commercial real estate and construction loans[213] - The allowance for credit losses increased by $4.4 million as part of the adoption of the new accounting standard, with $3.8 million transferred from acquisition credit marks[214] - The allowance for credit losses was $8.2 million at June 30, 2023, compared to $3.8 million at June 30, 2022, with the ratio to total loans at 1.16%[303] - Provision for credit losses recorded a recovery of ($149,000) for the three months ended June 30, 2023, compared to a provision for loan losses of $224,000 for the same period in 2022[303] Income and Earnings - Net income for the three months ended June 30, 2023, was $3,899,000, an increase of 41% compared to $2,765,000 for the same period in 2022[228] - Total interest income for the six months ended June 30, 2023, was $20,227,000, up 36% from $14,776,000 for the same period in 2022[227] - Net interest income after provision for credit losses for the six months ended June 30, 2023, was $16,585,000, compared to $13,307,000 for the same period in 2022, reflecting a 25% increase[227] - Basic earnings per share for the three months ended June 30, 2023, were $0.52, up from $0.37 for the same period in 2022[227] - Total comprehensive income for the three months ended June 30, 2023, was $3,700,000, compared to $2,193,000 for the same period in 2022, representing a 68% increase[228] Interest and Expense - Total noninterest income for the three months ended June 30, 2023, was $1,370,000, a 16% increase from $1,182,000 for the same period in 2022[227] - Total noninterest expense for the six months ended June 30, 2023, was $9,244,000, compared to $9,047,000 for the same period in 2022, indicating a slight increase of 2%[227] - Noninterest income totaled $1.4 million for the three months ended June 30, 2023, compared to $1.2 million for the same period in 2022, including a gain of $678,000 on the sale of other real estate owned[317] - Noninterest expense totaled $4.5 million for the three months ended June 30, 2023, compared to $4.7 million for the same period in 2022[319] Regulatory and Capital - As of June 30, 2023, the bank exceeded all regulatory capital requirements and was categorized as well capitalized[279] - The company anticipates sufficient funds to meet current funding commitments, with a strategy to retain a significant portion of maturing time deposits[278] Securities and Investments - Securities increased by $900,000, or 2.0%, to $46.5 million at June 30, 2023, mainly due to an increase in agency securities[215] - The company held $2.1 million and $977,000 of Federal Home Loan Bank restricted stock at June 30, 2023, and December 31, 2022, respectively[244] Interest Rates and Margins - The net interest margin for the three months ended June 30, 2023, was 4.19%, compared to 3.70% for the same period in 2022[273] - Interest income rose by $2.5 million, or 31.7%, to $10.5 million for the three months ended June 30, 2023, driven primarily by an increase in interest income on loans[307] - The interest rate spread increased by 22 basis points to 3.77% for the three months ended June 30, 2023, compared to 3.55% for the same period in 2022[300] Cash Flow - Net cash provided by operating activities for the six months ended June 30, 2023, was $60.1 million, while net cash used in investing activities was $34.5 million[277] Stock Offering - The company sold 9,798,980 shares of common stock at $10.00 per share, resulting in gross proceeds of approximately $98.0 million from a public stock offering completed on July 31, 2023[287]
BV Financial(BVFL) - 2023 Q2 - Quarterly Report