BV Financial, Inc. (NASDAQ:BVFL), the parent company of BayVanguard Bank, reported net income of $3.4 million, or $0.42 per diluted share, for the quarter ended September 30, 2026. The company also reported lower total assets, net loans and deposits compared with December 31, 2025, while non-performing assets increased.
#Quarterly and nine-month earnings
Quarterly net income was $3.4 million, or $0.42 per diluted share, compared with $3.7 million, or $0.41 per diluted share, for the quarter ended September 30, 2025.
For the nine-month period ended September 30, 2026, net income was $8.0 million, or $0.97 per diluted share. That compared with $8.7 million, or $0.88 per diluted share, for the same period in 2025. BV Financial attributed the year-to-date decrease to a $2.2 million executive transition expense in the first quarter, the related tax impact and changes in the provision for credit losses.
Operating pre-provision net revenue, or OPPNR, was $5.3 million, or $0.65 per diluted share, for the quarter, compared with $5.2 million, or $0.57 per diluted share, a year earlier. For the nine-month period, OPPNR was $15.4 million, or $1.87 per diluted share, compared with $14.8 million, or $1.50 per diluted share, in 2025.
OPPNR is a non-GAAP measure used by management to assess results before credit costs and certain other items. The company said the measure is not audited, has inherent limitations, may not be applied uniformly and should not be viewed as a substitute for GAAP operating results or total stockholders’ equity.
#Net interest income and operating expenses
Net interest income was $9.1 million for the quarter ended September 30, 2026, compared with $9.4 million in the year-earlier period. Net interest margin increased to 4.46% from 4.40%. The company said the quarterly decline in net interest income primarily reflected a lower average balance of loans outstanding.
For the first nine months, net interest income was $27.7 million, compared with $27.1 million in 2025. Net interest margin was 4.47%, compared with 4.29%. BV Financial attributed the increase primarily to lower borrowing costs after the pay-off of subordinated debentures in December 2025.
Quarterly noninterest income was $0.68 million, unchanged from the same period in 2025. Noninterest expense fell to $5.1 million from $5.9 million, mainly because of lower compensation and benefits, lower costs related to the 2024 Equity Plan and lower other expenses, including fraud losses.
Nine-month noninterest income was $1.7 million, compared with $1.9 million in 2025, with the company citing the write-down of a former branch location before its sale. Nine-month noninterest expense was $18.1 million, compared with $17.8 million. The company said the period included the $2.2 million executive transition cost, partly offset by lower staffing levels and lower 2024 Equity Plan costs. Data processing expense increased $81,000 because of new product implementation.
#Balance sheet and funding
Total assets stood at $877.9 million on September 30, 2026, down from $912.2 million at December 31, 2025. The decrease was primarily due to the company using cash generated by the reduction in its loan portfolio to repay $30.0 million of borrowings from the Federal Home Loan Bank of Atlanta.
Net loans were $726.34 million, down $22.1 million, or 2.96%, from $748.48 million at December 31, 2025. Loans receivable were $732.7 million, compared with $754.9 million at year-end. The largest portfolio reductions were in commercial loans, construction and land loans, and one-to-four family non-owner-occupied loans.
Deposits decreased to $674.0 million from $676.1 million, a change of $2.1 million, or 0.32%. Noninterest-bearing deposits increased to $139.5 million, while interest-bearing deposits declined to $534.5 million.
FHLB borrowings decreased by $30.0 million, or 85.7%. Cash and cash equivalents declined to $50.0 million from $55.7 million. Stockholders’ equity increased to $184.2 million from $183.8 million, as net income and earned stock compensation offset $9.3 million in stock repurchases during the period.
#Credit quality and securities
Non-performing assets were $3.2 million at September 30, 2026, compared with $2.3 million at December 31, 2025. All non-performing assets were non-performing loans.
The allowance for credit losses on loans was $6.3 million, equal to 0.86% of total loans and 197.1% of non-performing loans. At December 31, 2025, the allowance was $6.4 million, or 0.85% of total loans and 284.7% of non-performing loans.
BV Financial recorded a $0.2 million provision for credit losses for the quarter. For the nine-month period, it recorded a reversal in provisions for credit losses of $14,000.
Securities available for sale decreased by $2.3 million, or 7.0%, as paydowns and maturities were not fully replaced with new purchases. The held-to-maturity portfolio also declined following the pay-off of two subordinated debenture holdings. Federal Home Loan Bank of Atlanta stock decreased by $1.4 million, or 61.3%, because the advance pay-off reduced the required ownership amount.
#Share repurchases and company background
During the quarter ended September 30, 2026, BV Financial repurchased 163,540 shares of its outstanding common stock at an average price of $21.16.
BayVanguard Bank is headquartered in Baltimore, Maryland, and has twelve branches in the Baltimore metropolitan area and the eastern shore of Maryland. The bank is described as a full-service, community-oriented financial institution serving consumers and businesses.
#Risks identified by the company
BV Financial said forward-looking statements are based on management’s current expectations and may be affected by economic, legislative and regulatory issues. The risks listed by the company include changes in interest rates, competitive pressures, inflation, potential recessionary conditions, tariffs and retaliatory responses, deposit flows, real estate values, portfolio composition, liquidity, regulation, geopolitical events, a potential government shutdown, cyberattacks and other operational or security failures, technology changes, and the ability to retain or attract employees.
#Key Takeaways
- BV Financial reported quarterly net income of $3.4 million, or $0.42 per diluted share, for the period ended September 30, 2026.
- Nine-month net income was $8.0 million, or $0.97 per diluted share, compared with $8.7 million, or $0.88 per diluted share, in 2025.
- Net loans, total assets and deposits declined from December 31, 2025, while FHLB borrowings decreased by $30.0 million, or 85.7%.
- Non-performing assets increased to $3.2 million, and the company recorded a $0.2 million quarterly provision for credit losses.
- The company repurchased 163,540 common shares during the quarter at an average price of $21.16.
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