View on SEC.govContact:
Michael J. Dee
Chief Financial Officer
(410) 477- 5000
BV FINANCIAL, INC. ANNOUNCES FINANCIAL RESULTS
Baltimore, Maryland, July 24, 2026– BV Financial, Inc. (NASDAQ: BVFL), the holding company for BayVanguard Bank (the “Bank”), today reported net income of $3.5 million, or $0.42 per diluted share, for the quarter ended June 30, 2026 compared to net income of $2.9 million, or $0.29 per diluted share, for the quarter ended June 30, 2025. Net income for the six-month period ended June 30, 2026 was $4.6 million or $0.55 per diluted share compared to net income of $5.0 million or $0.50 per diluted share for the six-month period ended June 30, 2025.
Adjusted net income, a non-GAAP financial metric, was $3.9 million or $0.47 per diluted share and $3.7 or $0.37 per diluted share million for the quarters ended June 30, 2026 and 2025 and $7.1 million or $0.86 per diluted share and $6.7 million or $0.67 per diluted share for the year to date periods ended June 30, 2026 and 2025, respectively. For a reconciliation of net income as reported and Non-GAAP adjusted net income, see the table below.
Additionally, management refers to another non-GAAP metric called Operating Pre-Provision Net Revenue (OPPNR) to monitor the Company’s financial results. This metric excludes the expense, or reversal of the expense for the provision for credit losses as well as changes in the effective tax rate. Since the adoption of ASC 326 (CECL) in January 2023, the provision line item on the income statement has been extremely volatile, making this metric more meaningful. OPPNR was $5.2 million or $0.63 per diluted share for the three months ended June 30, 2026 compared to $5.4 million or $0.54 per diluted share for the three months ended June 30, 2025. OPPNR was $10.1 million or $1.22 per diluted share in the six-months ended June 30, 2026 compared to $9.6 million or $0.97 per diluted share in the six months ended June 30, 2025. For a reconciliation of net income as reported and Non-GAAP OPPNR, see the table below.
Financial Highlights
- Return on average assets and return on average equity for the three months ended June 30, 2026 was 1.54% and 7.56%, respectively.
- Net loans decreased $44.3 million or 5.9% to $711.6 million compared to $754.9 million at December 31, 2025.
- Deposits decreased $0.2 million or -0.03% from $676.1 million at December 31, 2025 to $675.9 million at June 30, 2026.
- All $35.0 million in borrowings from the Federal Home Loan Bank of Atlanta “FHLB” that were outstanding at March 31, 2026 were paid off in the quarter. This pay-off resulted in a gain (decrease in interest expense) of $0.3 million.
- Non-accrual loans increased $1.1 million to $3.4 million at June 30, 2026 from $2.3 million at December 31, 2025.
- The Company recorded reversals in the provisions for credit losses of $216,000 for the three months ended June 30, 2026 and $227,000 for the six months ended June 30, 2026.
- During the quarter ended June 30, 2026, the Company repurchased 230,000 shares of its outstanding common stock at an average price of $20.03.
FINANCIAL CONDITION DISCUSSION
Total Assets. Total assets were $877.9 million at June 30, 2026, a decrease of $34.3 million, or -3.76%, from $912.2 million at December 31, 2025. The decrease was due primarily to the Company utilizing cash resulting from shrinkage of the loan portfolio to repay $35.0 million in borrowings from the FHLB.
Cash and Cash Equivalents. Cash and cash equivalents increased $13.2 million, or 23.7%, to $68.9 million at June 30, 2026 from $55.7 million at December 31, 2025. The increase in cash is primarily a result of loan pay-offs exceeding the pay-off of the FHLB borrowings.
Loans Receivable. Loans receivable decreased $44.3 million, or 5.9%, to $710.6 million at June 30, 2026 from $754.9 million at December 31, 2025. The largest decreases in the portfolio occurred in the construction & land ($12.6 million), commercial investor real estate ($10.6 million) and commercial ($10.4 million).
Securities. Securities available for sale decreased by $1.0 million or 3.0% from December 31, 2025 as paydowns in the mortgage-backed securities were not replaced with new purchases. The held-to-maturity portfolio experienced a slight decrease due to paydowns.
Federal Home Loan Bank Stock Federal Home Loan Bank of Atlanta stock decreased $1.7 million or 71.6% as a result of the advance pay-off reducing the required ownership amount.
Total Liabilities. Total liabilities decreased $33.6 million or -4.6%, to $694.7 million at June 30, 2026 from $728.4 million at December 31, 2025. The decrease was due primarily to the decrease in borrowings.
Deposits. Total deposits decreased $0.2 million, or -0.03% to $675.9 million at June 30, 2026 from $676.1 million at December 31, 2025. Interest-bearing deposits were flat at $138.4 million. Noninterest bearing deposits decreased $0.2 million, or -0.03%, to $537.5 million at June 30, 2026 from $537.7 million at December 31, 2025.
Stockholders’ Equity. Stockholders’ equity decreased $0.6 million, or -0.33%, to $183.2 million at June 30, 2026 from $183.8 million at December 31, 2025 as net income and the impact of earned stock compensation was offset by $6.6 million in stock repurchases during the period.
RESULTS OF OPERATION DISCUSSION
Net Income. Net income was $3.5 million or $0.42 per diluted share for the three months ended June 30, 2026 compared to $2.9 million or $0.29 per diluted share for the three months ended June 30, 2025. Net income was $4.6 million or $0.55 per diluted share for the six months ended June 30, 2026 compared to $5.0 million or $0.50 per diluted share for the six months ended June 30, 2025. The decrease in income for the year to date period is due to the $2.2 million first quarter executive transition expense and the related tax impact.
Net Interest Income. Net interest income was $9.5 million for the three months ended June 30, 2026 compared to $9.2 million for the three months ended June 30, 2025. The net interest margin for the three months ended June 30, 2026 was 4.58% compared to 4.36% for the three months ended June 30, 2025. The increase in net interest income was primarily due to higher yields on interest earning assets and lower interest expense due to the pay-offs of borrowings.
Net interest income was $18.6 million for the six months ended June 30, 2026, compared to $17.8 million in the six months ended June 30, 2025. The net interest margin for the six months ended June 30, 2026 was 4.47% compared to 4.24% for the six months ended June 30, 2025. The increase in net interest income was primarily due to higher yields earned on loans and lower interest expense due to the pay-off of the FHLB borrowings in 2026 and the pay-off of the subordinated debentures in December 2025.
Noninterest Income. For the three months ended June 30, 2026, noninterest income totaled approximately $467,000 compared to $714,000 for the quarter ended June 30, 2025. The decrease is attributable to the $135,000 write-down of a former branch location to estimated sales proceeds and lower miscellaneous fees on loans and deposits.
For the six months ended June 30, 2026 noninterest income totaled $1.0 million compared to $1.2 million for the six months ended and June 30, 2025. The decrease is due to lower miscellaneous loan and deposit fees and the write-down of the former branch location.
Noninterest Expense. For the three months ended June 30, 2026, noninterest expense totaled $5.5 million compared to $5.8 million in the three months ended June 30, 2025. Decreases in compensation and benefits of $506,000 due lower staffing and lower expenses of the 2024 Equity plan offset increases in other categories. Occupancy expense increased by $97,000 primarily due to costs of repairing a branch location after a major water leak. Professional fees increased due to higher legal expenses, data processing expense increased due to new product implementation fees and other expenses increased due to higher loan related expenses.
For the six months ended June 30, 2026, noninterest expense totaled $13.1 million as compared to $11.9 million in the six months ended June 30, 2025. Compensation and benefits expense increased $0.7 million due to the $2.2 million cost of the executive transition in the first quarter somewhat offset by lower staffing and lower costs of the 2024 Equity plan. Occupancy expense increased by $109,000 due to the branch repair costs noted above and higher heating bills in the first quarter. Adjusting for expenses related to the 2024 Equity Plan and executive transition, non-interest expense for the six months ended June 30, 2026 increased 0.8% to $9.68 million, compared with $9.60 million for the six months ended June 30, 2025.
Asset Quality. Non-performing assets at June 30, 2026 totaled $3.4 million, of which all are nonperforming loans, compared to $2.3 million at December 31, 2025, also all of which are nonperforming loans. At June 30, 2026, the allowance for credit losses on loans was $6.2 million, which represented 0.87% of total loans and 182.1% of non-performing loans compared to $6.4 million at December 31, 2025, which represented 0.85% of total loans and 284.7% of non-performing loans.
Forward-Looking Statements
This press release may contain certain forward-looking statements that are based on management’s current expectations regarding economic, legislative and regulatory issues that may impact the Company’s earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, increased competitive pressures, the effects of inflation, potential recessionary conditions, general economic conditions or conditions within the securities markets, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Department of the Treasury and the Board of Governors of the Federal Reserve Board, the impact of the imposition of tariffs and any retaliatory responses, changes in the quality, size and composition of our loan and securities portfolios, changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio, changes in demand for our products and services, accounting and tax changes, deposit flows, real estate values and competition, changes in accounting principles, policies or guidelines, changes in legislation or regulation and other economic, competitive, governmental, regulatory and technological factors affecting the Company’s operations, pricing, products and services, the current or anticipated impact of military conflict, terrorism or other geopolitical events, a potential government shutdown, a failure in or breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company’s financial condition and results of operations and the business in which the Company and the Bank are engaged and the failure to maintain current technologies, the failure to retain or attract employees.
BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Baltimore, Maryland with twelve branches in the Baltimore metropolitan area and the eastern shore of Maryland. The Bank is a full-service community-oriented financial institution dedicated to serving the financial service needs of consumers and businesses.
| BV FINANCIAL, INC. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Consolidated Financial Ratios | |||||||||
| At or For the Three Months | At or For the Six Months | ||||||||
| Ended June 30, | Ended June 30, | ||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||
| Performance Ratios(1): | |||||||||
| Return on average assets | 1.54% | 1.26% | 1.00% | 1.09% | |||||
| Return on average equity | 7.56% | 5.78% | 4.97% | 5.03% | |||||
| Interest rate spread(2) | 3.95% | 3.60% | 3.81% | 3.48% | |||||
| Net interest margin(3) | 4.58% | 4.36% | 4.47% | 4.24% | |||||
| Yields on earning assets | 5.86% | 5.84% | 5.83% | 5.75% | |||||
| Cost of interest-bearing liabilities | 1.91% | 2.24% | 2.01% | 2.27% | |||||
| Cost of deposits | 2.07% | 2.02% | 2.04% | 2.02% | |||||
| Yield on loans | 6.21% | 6.04% | 6.16% | 5.97% | |||||
| Non-interest expense to average assets | 2.44% | 2.54% | 2.89% | 2.62% | |||||
| Efficiency ratio(4) | 54.87% | 58.30% | 66.62% | 62.66% | |||||
| Average interest-earning assets to average interest-bearing liabilities | 149.24% | 151.25% | 148.83% | 149.86% | |||||
| Average equity to average assets | 21.88% | 21.88% | 20.21% | 21.62% | |||||
| Credit Quality Ratios: | |||||||||
| Allowance for credit losses as a percentage of total loans | 0.87% | 1.22% | 0.87% | 1.22% | |||||
| Allowance for credit losses as a percentage of non-performing loans | 182.07% | 208.61% | 182.07% | 208.61% | |||||
| Net charge-offs (recoveries) to average outstanding loans during the year | 0.00% | 0.00% | 0.00% | -0.01% | |||||
| Non-performing loans as a percentage of total loans | 0.48% | 0.58% | 0.48% | 0.58% | |||||
| Non-performing loans as a percentage of total assets | 0.39% | 0.48% | 0.39% | 0.48% | |||||
| Total non-performing assets as a percentage of total assets | 0.39% | 0.50% | 0.39% | 0.50% | |||||
| Per Share Data | |||||||||
| Earnings per common share, basic | $0.43 | $0.29 | $0.56 | $0.50 | |||||
| Earnings per common share, diluted | $0.42 | $0.29 | $0.55 | $0.50 | |||||
| Book value per common share | $21.50 | $19.19 | $21.50 | $19.19 | |||||
| Tangible book value per common share(5) | $19.74 | $17.72 | $19.74 | $17.72 | |||||
| Weighted average shares outstanding | 8,012,679 | 9,858,540 | 8,077,169 | 9,878,319 | |||||
| (1) Performance ratios are annualized. | |||||||||
| (2) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. | |||||||||
| (3) Represents net interest income as a percentage of average interest-earning assets. | |||||||||
| (4) Represents non-interest expenses divided by the sum of net interest income and non-interest income. | |||||||||
| (5) Represents total equity less goodwill less other intangible assets divided by common shares outstanding. See non-GAAP reconciliation table. |
| Metric | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 |
|---|---|---|---|---|---|---|---|---|
| Cash and Equivalents | — | — | $12.7M | $8.24M | $23.93M | $6.76M | $9.26M | $8.52M |
| Fin Interest Bearing Deposits In Banks | — | — | $55.95M | $56.37M | $86.33M | $107.7M | $64.48M | $70.32M |
| Fin Afs Securities | — | — | $33.03M | $36.1M | $34.07M | $35.62M | $34.78M | $33.75M |
| Fin Htm Securities | — | — | $10.46M | $10.4M | $10.33M | $10.26M | $10.21M | $10.15M |
| Bank Gross Loans | — | — | $659.13M | $672.8M | $694.82M | $698.88M | $696.25M | $700.23M |
| Loans and Lending Commitments | — | — | $659.13M | $672.8M | $694.82M | $698.88M | $696.25M | $700.23M |
| Bank Allowance for Credit Losses | $3.1M | $3.34M | $3.81M | $8.1M | $8.16M | $8.15M | $8.55M | $8.51M |
| Property Plant Equipment Net | — | — | $15.18M | $15.01M | $14.41M | $14.41M | $14.25M | $14.47M |
| Non Current Assets Federal Home Loan Bank of Atlanta Sto B7feaa | — | — | $977K | $2.05M | $2.05M | $2.41M | $626K | $654K |
| Non Current Assets Bank Owned Life Insurance | — | — | $19.98M | $19.34M | $19.48M | $19.57M | $19.66M | $19.74M |
| Accrued Interest | — | — | $2.95M | $2.77M | $3.19M | $3.45M | $3.28M | $3.15M |
| Goodwill | — | — | $14.42M | $14.42M | $14.42M | $14.42M | $14.42M | $14.42M |
| Intangible Assets Net | — | — | $1.2M | $1.15M | $1.1M | $1.06M | $1.01M | $967K |
| Deferred Tax Assets | -$1.66M | $1.7M | $9.11M | $9.22M | $8.89M | $9.05M | $8.97M | $8.7M |
| Other Non Current Assets | — | — | $7.66M | $7.42M | $7.04M | $7.02M | $7.64M | $7.05M |
| Total Assets | — | — | $844.96M | $857.53M | $920.84M | $931.38M | $885.25M | $892.55M |
| Fin Deposits Noninterest Bearing | — | — | $167.2M | $151.67M | $145.69M | $143.2M | $142.03M | $139.11M |
| Non Current Liabilities Interest Bearing Deposit Liabilities | — | — | $517.42M | $515.32M | $524.38M | $503.27M | $492.09M | $500.38M |
| Fin Deposits | — | — | $684.62M | $666.99M | $670.06M | $646.48M | $634.12M | $639.49M |
| Fhlb Borrowings | — | — | $12M | $37.5M | $37.5M | $37.5M | $0 | — |
| Other Non Current Liabilities | — | — | $13.56M | $15.29M | $71.65M | $15.12M | $14.82M | $16.54M |
| Total Liabilities | — | — | $747.21M | $756.87M | $816.36M | $736.3M | $686.19M | $690.79M |
| Common Stock | — | — | $74K | — | — | — | $114K | — |
| Additional Paid In Capital | — | — | $15.41M | $15.47M | $15.6M | $110.36M | $110.47M | $110.53M |
| Equity Additional Paid In Capital Common Stock | — | — | $15.41M | $15.47M | $15.6M | $110.36M | $110.47M | $110.53M |
| Esop Debt Retirement Reserve | — | — | — | — | — | $7.64M | $7.33M | $7.29M |
| Retained Earnings | — | — | $84.61M | $87.18M | $91.08M | $94.76M | $97.77M | $100.35M |
| Aoci | — | — | -$2.34M | -$2.07M | -$2.27M | -$2.52M | -$1.96M | -$1.96M |
| Total Stockholders Equity | $91.93M | $93.97M | $97.75M | $100.65M | $104.48M | $195.08M | $199.07M | $201.75M |
| Total Liabilities and Equity | — | — | $844.96M | $857.53M | $920.84M | $931.38M | $885.25M | $892.55M |
| Metric | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 |
|---|---|---|---|---|---|---|---|---|---|
| Total Interest Income | — | $8M | $8.57M | $9.37M | $9.69M | $10.54M | $11.72M | $11.48M | $11M |
| Interest Income | — | $7.57M | $7.94M | $8.55M | $8.77M | $9.33M | $9.76M | $9.88M | $9.78M |
| Other Interest and Fee Income Loans and Leases | — | $7.57M | $7.94M | $8.55M | $8.77M | $9.33M | $9.76M | $9.88M | $9.78M |
| Other Interest Expense Deposits | — | $321K | $297K | $370K | $665K | $1.27M | $1.76M | $1.92M | $1.99M |
| Other Interest Expense Federal Home Loan Bank and Federa 2854eb | — | $2.75K | $2.75K | $2.75K | $289K | $495K | $530K | $98K | $500 |
| Interest Expense | — | $835K | $816K | $912K | $1.49M | $2.3M | $2.84M | $2.56M | $3.04M |
| Net Interest Income | — | $7.17M | $7.75M | $8.46M | $8.2M | $8.24M | $8.88M | $8.92M | $7.96M |
| Provision for Credit Losses | $177K | $224K | $186K | $451K | $2K | -$150K | -$333K | — | $18K |
| Net Interest Income After Provision | — | $6.94M | $7.57M | $8.01M | $8.2M | $8.39M | $9.21M | $8.48M | $7.95M |
| Total Noninterest Income | — | $1.18M | $681K | $2.32M | $807K | $1.37M | $882K | $697K | $578K |
| Other Bank Owned Life Insurance Income | — | $128K | $89K | $1.18M | $318K | $145K | $85K | $92K | $87K |
| Other Noninterest Income Other | — | $500K | $251K | $863K | $222K | $258K | $317K | $284K | $217K |
| Total Noninterest Expense | — | $4.69M | $4.6M | $6.35M | $4.7M | $4.54M | $5.01M | $5.16M | $4.92M |
| Compensation and Benefits | — | $2.41M | $2.67M | $2.65M | $2.88M | $2.86M | $3.15M | $3.37M | $3.13M |
| Occupancy and Equipment | — | $447K | $310K | $440K | $416K | $366K | $397K | $426K | $438K |
| Other Information Technology and Data Processing | — | $367K | $339K | $349K | $349K | $340K | $345K | $339K | $377K |
| Advertising | — | $7K | $5K | $7K | $13K | $14K | $5K | $10K | $5K |
| Other Advertising Expense | — | $7K | $5K | $7K | $13K | $14K | $5K | $10K | $5K |
| Professional Fees | — | $144K | $133K | $155K | $200K | $176K | $220K | $289K | $112K |
| Other Equipment Expense | — | $102K | $197K | $24K | $105K | $108K | $105K | $106K | $102K |
| Other Amortization of Intangible Assets | — | $46K | $46K | $46K | $46K | $46K | $46K | $45K | $45K |
| Other Federal Deposit Insurance Corporation Premium Expense | — | $55K | $57K | $54K | $54K | $64K | $120K | $99K | $83K |
| Other Operating Expenses | — | $1.06M | $511K | $2.05M | $511K | $539K | $608K | $460K | $627K |
| Other Noninterest Expense | — | $4.69M | $4.6M | $6.35M | $4.7M | $4.54M | $5.01M | $5.16M | $4.92M |
| Income Before Tax | — | $3.43M | $3.65M | $3.98M | $4.31M | $5.21M | $5.08M | $4.02M | $3.6M |
| Income Tax Expense | — | $669K | $1.04M | $1.25M | $1.19M | $1.31M | $1.4M | $1.01M | $1.03M |
| Net Income | — | $2.77M | $2.61M | $2.73M | $3.12M | $3.9M | $3.68M | $3.01M | $2.57M |
| Eps Basic | — | $0.37 | $0.33 | $0.34 | $0.39 | $0.49 | $0.35 | $0.26 | $0.24 |
| Eps Diluted | — | $0.37 | $0.33 | $0.34 | $0.39 | $0.49 | $0.35 | $0.27 | $0.24 |
| BV FINANCIAL, INC. | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average Balance Sheet for the Quarters ended June 30, | |||||||||||||
| (Dollars in thousands) | |||||||||||||
| For the Three Months Ended June 30, | |||||||||||||
| 2026 | 2025 | ||||||||||||
| (dollars in thousands) | Average Outstanding Balance | Interest | Average Yield/Rate | Average Outstanding Balance | Interest | Average Yield/Rate | |||||||
| (Unaudited) | |||||||||||||
| Interest-earning assets: | |||||||||||||
| Loans | $721,303 | $11,165 | 6.21% | $752,181 | $11,334 | 6.04% | |||||||
| Securities available-for-sale | 32,614 | 282 | 3.47% | 34,770 | 324 | 3.74% | |||||||
| Securities held-to-maturity | 7,396 | 45 | 2.44% | 6,624 | 46 | 2.79% | |||||||
| Cash, cash equivalents and other interest-earning assets | 73,450 | 713 | 3.92% | 49,450 | 562 | 4.60% | |||||||
| Total interest-earning assets | 834,763 | 12,205 | 5.86% | 843,025 | 12,266 | 5.84% | |||||||
| Noninterest-earning assets | 65,598 | 64,324 | |||||||||||
| Total assets | $900,361 | $907,349 | |||||||||||
| Interest-bearing liabilities: | |||||||||||||
| Interest-bearing demand deposits | $70,143 | 153 | 0.87% | $76,698 | 159 | 0.83% | |||||||
| Savings deposits | 115,314 | 145 | 0.50% | 120,584 | 106 | 0.35% | |||||||
| Money market deposits | 130,067 | 744 | 2.29% | 125,686 | 766 | 2.44% | |||||||
| Certificates of deposit | 221,400 | 1,729 | 3.13% | 197,488 | 1,591 | 3.23% | |||||||
| Total interest-bearing deposits | 536,924 | 2,771 | 2.07% | 520,456 | 2,622 | 2.02% | |||||||
| Federal Home Loan Bank advances | 22,418 | (104) | (1.86 | )% | 1,978 | 23 | 4.66% | ||||||
| Subordinated debentures | — | — | — | 34,945 | 465 | 5.34% | |||||||
| Total borrowings | 22,418 | (104) | (1.86 | )% | 36,923 | 488 | 5.30% | ||||||
| Total interest-bearing liabilities | 559,342 | 2,667 | 1.91% | 557,379 | 3,110 | 2.24% | |||||||
| Noninterest-bearing demand deposits | 139,862 | 134,841 | |||||||||||
| Other noninterest-bearing liabilities | 18,063 | 16,930 | |||||||||||
| Total liabilities | 717,267 | 709,150 | |||||||||||
| Equity | 183,094 | 198,199 | |||||||||||
| Total liabilities and equity | $900,361 | $907,349 | |||||||||||
| Net interest income | $9,538 | $9,156 | |||||||||||
| Net interest rate spread | 3.95% | 3.60% | |||||||||||
| Net interest-earning assets | $275,421 | $285,646 | |||||||||||
| Net interest margin | 4.58% | 4.36% | |||||||||||
| Average interest-earning assets to interest-bearing liabilities | 149.24% | 151.25% |
| BV FINANCIAL, INC. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average Balance Sheet for the Six Months ended June 30, | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| For the Six Months Ended June 30, | ||||||||||||
| 2026 | 2025 | |||||||||||
| (dollars in thousands) | Average Outstanding Balance | Interest | Average Yield/Rate | Average Outstanding Balance | Interest | Average Yield/Rate | ||||||
| (Unaudited) | ||||||||||||
| Interest-earning assets: | ||||||||||||
| Loans | $730,542 | $22,308 | 6.16% | $745,958 | $22,075 | 5.97% | ||||||
| Securities available-for-sale | 33,073 | 571 | 3.48% | 35,821 | 674 | 3.79% | ||||||
| Securities held-to-maturity | 7,716 | 90 | 2.35% | 6,971 | 93 | 2.69% | ||||||
| Cash, cash equivalents and other interest-earning assets | 69,357 | 1,318 | 3.85% | 58,091 | 1,305 | 4.55% | ||||||
| Total interest-earning assets | 840,688 | 24,287 | 5.83% | 846,841 | 24,147 | 5.75% | ||||||
| Noninterest-earning assets | 65,489 | 64,667 | ||||||||||
| Total assets | $906,177 | $911,508 | ||||||||||
| Interest-bearing liabilities: | ||||||||||||
| Interest-bearing demand deposits | $72,925 | 320 | 0.88% | $78,414 | 330 | 0.85% | ||||||
| Savings deposits | 115,572 | 292 | 0.51% | 121,516 | 206 | 0.34% | ||||||
| Money market deposits | 127,407 | 1,428 | 2.26% | 125,326 | 1,530 | 2.46% | ||||||
| Certificates of deposit | 220,277 | 3,383 | 3.10% | 196,440 | 3,157 | 3.24% | ||||||
| Total interest-bearing deposits | 536,181 | 5,423 | 2.04% | 521,696 | 5,223 | 2.02% | ||||||
| Federal Home Loan Bank advances | 28,674 | 215 | 1.51% | 8,453 | 194 | 4.63% | ||||||
| Subordinated debentures | — | — | — | 34,925 | 931 | 5.38% | ||||||
| Total borrowings | 28,674 | 215 | 1.51% | 43,378 | 1,125 | 5.23% | ||||||
| Total interest-bearing liabilities | 564,855 | 5,638 | 2.01% | 565,074 | 6,348 | 2.27% | ||||||
| Noninterest-bearing demand deposits | 139,835 | 133,419 | ||||||||||
| Other noninterest-bearing liabilities | 18,353 | 15,940 | ||||||||||
| Total liabilities | 723,043 | 714,433 | ||||||||||
| Equity | 183,134 | 197,075 | ||||||||||
| Total liabilities and equity | $906,177 | $911,508 | ||||||||||
| Net interest income | $18,649 | $17,799 | ||||||||||
| Net interest rate spread | 3.82% | 3.48% | ||||||||||
| Net interest-earning assets | $275,833 | $281,767 | ||||||||||
| Net interest margin | 4.47% | 4.24% | ||||||||||
| Average interest-earning assets to interest-bearing liabilities | 148.83% | 149.86% |
| ALLOWANCE FOR CREDIT LOSS - LOANS | ||||
|---|---|---|---|---|
| (Dollars in thousands) | ||||
| QTR | YTD | |||
| 6/30/2026 | 6/30/2026 | |||
| Beginning Balance | $6,399 | $6,437 | ||
| Provision for credit loss -loans | (200) | (256) | ||
| Net Charge-offs (recoveries): | ||||
| Owner Occupied 1-4 | (1) | (2) | ||
| Non-Owner Occupied 1-4 | (14) | (33) | ||
| Investor Commercial Real Estate | — | — | ||
| OO Commercial Real Estate | — | — | ||
| Construction & Land | — | — | ||
| Farm Loans | — | — | ||
| Marine & Consumer | — | 2 | ||
| Guaranteed by the US Gov't | — | — | ||
| Commercial | — | — | ||
| Net charge-offs (recoveries) | (15) | (33) | ||
| Ending Balance- ACL for Loans | $6,214 | $6,214 | ||
| Balance Reserve for unfunded loan commitments | 125 | 125 | ||
| Balance Reserve for HTM Securities | 1 | 1 | ||
| Total ACL | $6,340 | $6,340 | ||
| Provision expense for Unfunded Commitments | (16) | 30 | ||
| Provision expense for HTM Securities | — | (1) | ||
| Total other provision expense | $(16) | $29 | ||
| Total provision for (recovery of ) credit losses | $(216) | $(227) |
| RECONCILIATION TABLE (UNAUDITED) | ||||||
|---|---|---|---|---|---|---|
| NON-GAAP ADJUSTED NET INCOME | ||||||
| Non-GAAP Reconciliation | ||||||
| In addition to results presented in accordance with generally accepted accounting principles utilized in the Unites States ("GAAP"), this earnings release contains a non-GAAP financial measure, Non-GAAP adjusted net income. The Company believes this non-GAAP financial measure is useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time. Non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. | ||||||
| Three Months ended June 30, | Six Months ended June 30, | |||||
| Non-GAAP Adjusted Net Income | 2026 | 2025 | 2026 | |||
| Net Income (GAAP) | $3,462 | $2,861 | $4,553 | |||
| 2024 Equity Plan Expenses | 601 | 1,162 | $1,204 | |||
| Cost of executive transition | - | - | 2,203 | |||
| Tax impact | (159) | (308) | (903) | |||
| Non GAAP adjusted net income | $3,904 | $3,715 | $7,057 | |||
| Adjusted Net Income per Share | $0.48 | $0.38 | $0.88 | |||
| Adjusted Net Income per diluted share | $0.47 | $0.37 | $0.86 | |||
| Non-GAAP Operating Pre-provision Net Revenue (OPPNR) | ||||||
| Net Interest Income before provision | $9,538 | $9,156 | $18,649 | |||
| Plus: Purchase Accounting Amortization | 51 | 44 | 93 | |||
| Plus: Non-interest income | 467 | 714 | 995 | |||
| Less: Non-interest expense | (5,490) | (5,755) | (13,088) | |||
| Plus: CDI amortization | 45 | 45 | 90 | |||
| Plus: 2024 Equity Plan expense | 601 | 1,162 | 1,204 | |||
| Plus: Executive transition expense | - | - | 2,203 | |||
| Operating Pre-Provision Net Revenue | $5,212 | $5,366 | $10,146 | |||
| OPPNR per share | $0.65 | $0.65 | $1.26 | |||
| OPPNR per diluted share | $0.63 | $0.54 | $1.22 | |||
| Non-GAAP Tangible Book Value per Common Share | ||||||
| 2026 | 2025 | |||||
| Total Equity (GAAP) | $183,201 | $197,991 | ||||
| Less Goodwill | 14,420 | 14,420 | ||||
| Less other intangible assets | 561 | 741 | ||||
| Tangible equity | $168,220 | $182,830 | ||||
| Common shares outstanding | 8,520,225 | 10,318,408 | ||||
| Tangible book value per share | $19.74 | $17.72 |
