CORRECTION FROM SOURCE: BV Financial, Inc Announces Financial Results

BALTIMORE, MD / ACCESSWIRE/ March 13, 2023 / BV Financial, Inc. ("BV Financial") (OTC PINK:BVFL) today issued a correction to its financial results for the quarter and year ended December 31, 2022, initially reported on January 24, 2023. In connection with its year-end audit and the finalization of the fair value adjustments recorded in connection with BayVanguard Bank's acquisition of North Arundel Savings Bank, the Company lowered its gain on bargain purchase recognized in connection with the merger from $2.3 million to $1.3 million and made a corresponding increase in the equity accounts to reflect the increase in the entity value of North Arundel. The result was an increase in equity received by BV Financial and a decrease in other income, net income, earnings per share, both basic and diluted, return on average assets, return on average equity and efficiency ratio as indicated below. The change had no impact on BV Financial's equity.

For Year Ended December 31, 2022

For Quarter Ended December 31, 2022

The full text of the corrected release is a follows:

Baltimore, Maryland, BV Financial, Inc. (OTC PINK: BVFL), the holding company for BayVanguard Bank (the "Bank"), today reported net income of $10.5 million, or $1.41 per diluted share, for the year ended December 31, 2022 compared to net income of $9.4 million, or $1.32 per diluted share, for the year ended December 31, 2021. Net income for the quarter ended December 31, 2022 was $2.7 million, or $0.37 per diluted share, compared to net income of $2.6 million, or $0.36 per diluted share in the quarter ended December 31, 2021. Included in the 2022 annual results were $1.3 million in a gain on bargain purchase recognized in the merger with North Arundel Savings Bank, $1.4 million in excess insurance proceeds, as well as $1.8 million in merger expenses and $0.5 million in a lease buyout cost for a branch whose deposits were moved to the North Arundel location. Included in the December 2022 quarterly results are $0.6 million in bargain purchase gains, $1.1 million in excess insurance proceeds and $1.6 million in merger expenses.

Non-performing assets on December 31, 2022 totaled $7.9 million consisting of $5.9 million in nonperforming loans and $2.0 million in other real estate owned, compared to $4.4 million at December 31, 2021, consisting of $2.4 million in non-performing loans and $2.0 million in other real estate owned. On December 31, 2022, the loan loss allowance was $3.8 million, which represented 0.57% of total loans and 64.8% of non-performing loans compared to $2.6 million at December 31, 2021, which represented 0.45% of total loans and 111.3% of non-performing loans. In addition, on December 31, 2022, the Bank had a credit impairment valuation allowance of $3.8 million that is not included in the Bank's allowance for loan loss estimate which is in accordance with U.S. Generally Accepted Accounting Principles. The credit impairment allowances were established for loans acquired in the Delmarva Bancshares, MB Bancorp, Kopernik, North Arundel and Vigilant mergers.

At December 31, 2022, BV Financial, Inc. had total assets of $844.9 million, net loans of $659.1 million, deposits of $684.6 million and total stockholders' equity of $97.8 million compared to $815.1 million, $584.4 million, $680.0 million and $83.4 million at December 31, 2021, respectively.

BayVanguard Bank's Tier 1 leverage capital ratio was 13.39% at December 31, 2022 compared to 11.79% at December 31, 2021. This ratio and the Bank's other capital measurements continue to exceed all regulatory standards for "well-capitalized" financial institutions.

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, 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.

BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Edgemere, Maryland with fifteen 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 within its market area.

Contact:
Michael J. Dee
Chief Financial Officer
(410) 477- 5000

SOURCE: BV Financial, Inc.