Financial Position - Total assets increased by $7.2 million, or 0.82%, to $892.5 million at March 31, 2024, from $885.3 million at December 31, 2023[222] - Total liabilities increased by $4.6 million, or 0.7%, to $690.8 million at March 31, 2024, primarily due to an increase in total deposits[227] - Total deposits rose by $5.4 million, or 0.85%, to $639.5 million at March 31, 2024, with interest-bearing deposits increasing by $8.3 million, or 1.7%[228] - Stockholders' equity increased by $2.7 million, or 1.3%, to $201.8 million at March 31, 2024, primarily due to net income[229] - The company's uninsured deposits totaled $190.1 million, representing 27.9% of total deposits[251] - At March 31, 2024, the bank exceeded all regulatory capital requirements and was categorized as well capitalized[252] Loan and Credit Quality - Net loans receivable increased by $3.9 million, or 0.56%, to $708.7 million at March 31, 2024, driven by increases in commercial and industrial loans and investor commercial real estate loans[224] - The allowance for credit losses on loans was $8.5 million at March 31, 2024, slightly down from $8.55 million at December 31, 2023, with a ratio of 1.20% to total loans[225] - The allowance for credit losses to non-performing loans was 79.2% at March 31, 2024, compared to 176.5% at March 31, 2023[225] - Provision for credit losses was $18,000 for the three months ended March 31, 2024, compared to $2,000 for the same period in 2023[245] Income and Expenses - Net income decreased by $541,000, or 17.4%, to $2.6 million for the three months ended March 31, 2024, compared to $3.1 million for the same period in 2023[237] - Interest income increased by $1.3 million, or 13.6%, to $11.0 million for the three months ended March 31, 2024, driven by a $1.0 million increase in interest income on loans[238] - Interest expense increased by $1.5 million, or 104.4%, to $3.0 million for the three months ended March 31, 2024, primarily due to a $1.3 million increase in interest expense on deposits[239] - Net interest income was $8.0 million for the three months ended March 31, 2024, compared to $8.2 million for the same period in 2023[243] - The net interest margin decreased to 3.91% for the three months ended March 31, 2024, down from 4.34% for the same period in 2023[243] - Non-interest income totaled $578,000 for the three months ended March 31, 2024, down from $807,000 in the same period in 2023[246] - For the three months ended March 31, 2024, non-interest expense totaled $4.9 million, an increase of 4.3% from $4.7 million in the same period of 2023[247] Operational Changes - The company replaced $10.0 million in retail certificates of deposits with brokered deposits at a lower cost during the first quarter of 2024[228] - The company had $10 million in brokered deposits as of March 31, 2024, compared to $0 in the same period of 2023[251] - Compensation and benefits expenses rose by 8.7% due to increased staffing and salary levels[247] - Professional fees decreased by 44.0% due to the recovery of previously expensed legal fees[247] - Foreclosed real estate expenses decreased by 96.1% due to the sale of large foreclosed properties in 2023[247] Tax and Liquidity - Income tax expense for the quarter was $1.0 million, with an effective tax rate of 28.5%, compared to $1.2 million and 27.65% in the prior year[248] - As of March 31, 2024, the company had $169.1 million available under a line of credit with the FHLB of Atlanta, with additional borrowing availability of $144.1 million[249] - The company monitors its liquidity position daily and anticipates sufficient funds to meet current funding commitments[251]
BV Financial(BVFL) - 2024 Q1 - Quarterly Report