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BV Financial, Inc. (BVFL)·Q3 2024 Earnings Summary

Executive Summary

  • Q3 2024 diluted EPS was $0.35, flat year over year, and up sequentially from $0.32 in Q2; net income rose to $3.8M on stronger net interest income and a $0.7M provision recovery, while noninterest expense increased .
  • Net interest margin expanded to 4.49% (vs. 4.33% in Q2 and 4.10% in Q3’23) on higher asset yields and lower interest-bearing liabilities, a key driver of the quarter’s performance .
  • Asset quality improved materially: non-performing loans fell to $3.9M and ACL coverage of NPLs rose to 201.6%; management highlighted payoff of the largest non-accrual CRE loan during the quarter .
  • Deposits were $634.3M at quarter-end (stable YTD; down QoQ from $640.3M), while cash and equivalents increased to $94.1M, enhancing liquidity .
  • No formal guidance and no earnings call transcript were available; the stock’s near-term narrative is likely driven by credit improvement and NIM expansion versus rising costs and efficiency ratio deterioration .

What Went Well and What Went Wrong

What Went Well

  • Significant asset quality improvement: “During the quarter, our largest loan on non-accrual, a $3.8 million investor commercial real estate loan paid off,” reducing non-performing loans to $3.9M and increasing ACL coverage to 201.6% .
  • Net interest margin and net interest income strengthened: NIM reached 4.49% and net interest income rose to $9.3M, benefiting from higher yields and lower interest-bearing liabilities .
  • Liquidity improved: cash and cash equivalents increased by $20.3M YTD to $94.1M, supported by balance sheet optimization and securities activity .

What Went Wrong

  • Noninterest expense rose to $5.5M (+9% YoY), driven by compensation and professional fees; the efficiency ratio deteriorated to 54.73% (vs. 51.53% in Q2 and 49.63% in Q3’23) .
  • Noninterest income decreased YoY to $0.7M due to prior-year gains (e.g., 2023 branch sale), tempering total revenue-like drivers for a bank .
  • Deposits declined sequentially to $634.3M (from $640.3M), and noninterest-bearing deposits fell to $139.3M, modestly raising funding mix sensitivity to rates .

Financial Results

Quarterly trend (Q1–Q3 2024):

MetricQ1 2024Q2 2024Q3 2024
Net Income ($USD Millions)$2.574 $3.399 $3.798
Diluted EPS ($USD)$0.24 $0.32 $0.35
Net Interest Income ($USD Millions)$7.963 $8.909 $9.303
Noninterest Income ($USD Millions)$0.578 $0.596 $0.696
Net Interest Margin (%)3.91% 4.33% 4.49%
Efficiency Ratio (%)52.75% 51.53% 54.73%

Year-over-year (Q3 2024 vs. Q3 2023):

MetricQ3 2023Q3 2024
Net Income ($USD Millions)$3.684 $3.798
Diluted EPS ($USD)$0.35 $0.35
Net Interest Income ($USD Millions)$8.876 $9.303
Noninterest Income ($USD Millions)$0.882 $0.696
Net Interest Margin (%)4.10% 4.49%
Efficiency Ratio (%)49.63% 54.73%

Key KPIs and balance sheet metrics (QoQ trend):

KPIQ1 2024Q2 2024Q3 2024
Total Deposits ($USD Millions)$639.488 $640.300 $634.313
Net Loans ($USD Millions)$700.230 $693.826 $685.230
Cash & Equivalents ($USD Millions)$78.837 $90.639 $94.065
Non-Performing Loans ($USD Millions)$10.7 $8.2 $3.9
ACL Coverage of NPLs (%)79.2% 103.9% 201.6%
ROAA (%)1.16% 1.52% 1.70%
ROAE (%)5.14% 6.68% 7.32%

Guidance Changes

  • The company did not issue formal quantitative guidance in its Q3 2024 earnings press release, and prior quarterly releases similarly contained no forward-looking financial guidance ranges .

Earnings Call Themes & Trends

  • No Q3 2024 earnings call transcript was available in our document set. Commentary below reflects press releases.
TopicPrevious Mentions (Q1 2024)Previous Mentions (Q2 2024)Current Period (Q3 2024)Trend
Asset QualityNPLs $10.7M; ACL/NPL 79.2% NPLs $8.2M; ACL/NPL 103.9%; $3.0M payment on largest non-accrual; payoff in July NPLs $3.9M; ACL/NPL 201.6%; largest non-accrual CRE paid off Improving
Net Interest Margin3.91% 4.33% 4.49% Improving
Deposit Mix & LiquidityDeposits $639.5M; added $10M brokered CDs to optimize funding Deposits $640.3M; interest-bearing up; noninterest-bearing down Deposits $634.3M; cash & equivalents up to $94.1M Mixed (liquidity up, deposits down QoQ)
Operating Expenses & EfficiencyNoninterest expense $4.9M; efficiency 52.75% Noninterest expense $4.9M; efficiency 51.53% Noninterest expense $5.5M; efficiency 54.73% Worsening
Capital & EquityEquity $201.8M Equity $205.5M Equity $209.7M Improving

Management Commentary

  • “During the quarter, our largest loan on non-accrual, a $3.8 million investor commercial real estate loan paid off.”
  • “The Company recorded a recovery to the provision for credit losses of $714,000 for the three months ended September 30, 2024…”
  • Net interest margin expanded and net interest income increased due to “higher yields on interest earning assets, and lower balances of interest-bearing liabilities offsetting higher rates paid on deposits.”
  • Liquidity strengthened as “Cash and cash equivalents increased $20.3 million, or 27.7%, to $94.1 million at September 30, 2024…”

Q&A Highlights

  • No public earnings call transcript was available; therefore, there were no disclosed analyst Q&A clarifications for Q3 2024 in our source documents .

Estimates Context

  • Wall Street consensus estimates (S&P Global) for BVFL’s Q3 2024 EPS and revenue were unavailable, so estimate comparisons are not provided. Values were not retrievable via S&P Global at the time of this analysis.

Key Takeaways for Investors

  • Credit clean-up is a clear positive: NPLs fell to $3.9M and ACL coverage rose to 201.6%, materially de-risking the balance sheet narrative .
  • Core earnings power strengthened sequentially: NIM expanded to 4.49% and net interest income increased to $9.3M, supporting EPS improvement to $0.35 QoQ .
  • Operating cost pressure is the primary offset: noninterest expense rose to $5.5M and the efficiency ratio moved to 54.73%—watch cost discipline and scalability .
  • Funding and liquidity: deposits dipped QoQ while cash increased to $94.1M; the mix shift and stable YTD deposits support flexibility amid rate uncertainty .
  • With no formal guidance or call, near-term stock drivers likely hinge on continued asset quality gains and margin resilience versus expense growth—monitor deposit trends and fee generation .
  • Medium-term thesis: community bank with improving credit metrics and expanding margins; execution on cost control and growth in relationship deposits could re-rate efficiency and ROE .