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BF

BV Financial, Inc. (BVFL)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 GAAP EPS was $0.18, down sequentially from $0.35 in Q3 2024 and down year-over-year from $0.28, as higher noninterest expense (equity plan costs) and a $0.604M provision for credit losses weighed on results .
  • Net interest margin held at 4.34% (vs 4.49% in Q3 and 4.30% in Q4 2023), while efficiency ratio deteriorated to 64.27% from 54.73% in Q3 2024 amid higher compensation and equity award expenses .
  • Asset quality improved materially versus prior year with non-performing loans down to $4.0M and ACL coverage of NPLs rising to 212.5%; the bank also added $15M of FHLB borrowings and used $50M brokered CDs to support loan growth and replace retail CD runoff .
  • No formal guidance or call transcript was available; consensus estimates from S&P Global were unavailable at this time, limiting beat/miss assessment .

What Went Well and What Went Wrong

What Went Well

  • Asset quality strengthened: non-performing loans decreased to $4.0M and ACL coverage of NPLs rose to 212.5%, supported by the payoff of the largest non-accrual loan earlier in the year .
  • Loan and deposit growth: net loans increased $33.0M year-over-year to $729.2M; deposits grew $17.4M to $651.5M, aided by brokered CDs .
  • Net interest margin resilient: “Net interest margin… was 4.34%” in Q4 2024 vs 4.30% in Q4 2023 and 4.49% in Q3 2024 .

What Went Wrong

  • Earnings compression: Q4 net income fell to $1.95M and diluted EPS to $0.18, down from $3.80M and $0.35 in Q3, driven by higher noninterest expense and a positive-to-negative swing in provision for credit losses .
  • Cost pressure: “Compensation and benefits expenses increased by 27.3%… These expenses totaled $1.2 million in the quarter,” reflecting equity awards under the 2024 Equity Incentive Plan; efficiency ratio deteriorated to 64.27% .
  • Deposit mix shift: noninterest-bearing deposits declined $12.3M YoY (−8.7%); use of $50M brokered CDs may raise funding-cost sensitivity as rates evolve .

Financial Results

Quarterly P&L (USD Millions, except per-share and %; periods ordered oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Total Interest Income ($M)$11.617 $12.150 $11.911
Interest Expense ($M)$2.708 $2.847 $2.899
Net Interest Income ($M)$8.909 $9.303 $9.012
Provision for Credit Losses ($M)$(0.111) $(0.714) $0.604
Noninterest Income ($M)$0.596 $0.696 $0.644
Noninterest Expense ($M)$4.897 $5.473 $6.206
Pre-tax Income ($M)$4.719 $5.240 $2.846
Net Income ($M)$3.399 $3.798 $1.951
Diluted EPS ($)$0.32 $0.35 $0.18
Net Interest Margin (%)4.33% 4.49% 4.34%
Efficiency Ratio (%)51.53% 54.73% 64.27%
ROAA (%)1.52% 1.70% 0.88%
ROAE (%)6.68% 7.32% 3.83%

YoY P&L Comparison (USD Millions, Q4 2023 vs Q4 2024)

MetricQ4 2023Q4 2024
Total Interest Income ($M)$11.477 $11.911
Interest Expense ($M)$2.562 $2.899
Net Interest Income ($M)$8.915 $9.012
Provision for Credit Losses ($M)$0.435 $0.604
Noninterest Income ($M)$0.698 $0.644
Noninterest Expense ($M)$5.157 $6.206
Pre-tax Income ($M)$4.021 $2.846
Net Income ($M)$3.009 $1.951
Diluted EPS ($)$0.28 $0.18
Net Interest Margin (%)4.30% 4.34%
Efficiency Ratio (%)56.19% 64.27%
ROAA (%)1.34% 0.88%
ROAE (%)6.11% 3.83%

Balance Sheet and Asset Quality KPIs

MetricQ2 2024Q3 2024Q4 2024
Total Assets ($M)$897.2 $892.7 $911.8
Net Loans ($M)$693.8 $685.2 $729.2
Total Deposits ($M)$640.3 $634.3 $651.5
Noninterest-Bearing Deposits ($M)$141.0 $139.3 $129.7
Interest-Bearing Deposits ($M)$499.3 $495.0 $521.8
FHLB Borrowings ($M)$0.0 $0.0 $15.0
ACL – Loans ($M)$8.5 $8.0 $8.5
NPLs ($M)$8.2 $3.9 $4.0
ACL / Loans (%)1.22% 1.15% 1.15%
ACL / NPLs (%)103.9% 201.6% 212.5%
NPLs / Loans (%)1.17% 0.57% 0.57%
NPA / Assets (%)0.94% 0.46% 0.46%

Non-GAAP

MetricQ4 2023Q4 2024
Adjusted Net Income ($M)$3.009 $2.743

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue/EPS/OpEx/TaxQ1–Q4 2025N/ANone provided in Q4 2024 materialsMaintained (no formal guidance)
DividendQ4 2024N/ANo dividend announcements in press releaseN/A

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3 2024)Current Period (Q4 2024)Trend
Asset QualityQ2: NPLs $8.2M; ACL/NPL 103.9%; largest non-accrual reduced; recovery to provision $0.111M credit . Q3: NPLs $3.9M; ACL/NPL 201.6%; payoff of largest non-accrual; recovery to provision $0.714M credit .NPLs $4.0M; ACL/NPL 212.5%; provision expense $0.604M to rebuild ACL for loans/unfunded commitments .Improved YoY; sequentially normalizing provision.
Funding & DepositsQ2: Deposits +$6.2M; NIB −$1.0M . Q3: Deposits ~flat; NIB −$2.7M .Deposits +$17.4M YoY; NIB −$12.3M YoY; “Brokered deposits of $50 million were utilized…” .Mix shift toward interest-bearing/brokered CDs.
NIM & SpreadQ2 NIM 4.33% ; Q3 NIM 4.49% .NIM 4.34% .Stable; slight sequential compression.
Expenses & EfficiencyQ2 efficiency 51.53% . Q3 efficiency 54.73% .Efficiency 64.27%; “Compensation and benefits… totaled $1.2M in the quarter” due to equity plan .Cost pressure increased.
Capital ActionsQ2/Q3: Junior sub debt payoff in Q1; no FHLB borrowings at Q2/Q3 .FHLB borrowings $15M; repurchased 1.1M shares at $16.27 avg; issued $5.0M restricted stock to be expensed over 48 months .Added secured funding; shareholder returns; equity comp ramp.

Management Commentary

  • “Brokered deposits of $50 million were utilized to replace run-off of retail certificates of deposit and non-interest-bearing accounts.” (Press release) .
  • “During the quarter ended December 31, 2024, the Company recorded a provision for credit losses of $604,000…” (Press release) .
  • “Compensation and benefits expenses increased by 27.3%… These expenses totaled $1.2 million in the quarter” tied to the 2024 Equity Incentive Plan (Press release) .
  • Net loans rose to $729.2M (+4.74% YoY), with growth in investor CRE, 1–4 family owner-occupied, construction, and commercial loans (Press release) .

Q&A Highlights

  • No earnings call transcript or Q&A was available in the company materials for Q4 2024; no clarifications beyond the press release were provided .

Estimates Context

  • Wall Street consensus EPS and revenue estimates via S&P Global were unavailable at this time, so we cannot assess beat/miss for Q4 2024. Where possible, future comparisons should anchor on S&P Global consensus; presently unavailable.

Key Takeaways for Investors

  • EPS compressed to $0.18 as expenses rose and provision swung from a Q3 credit to a Q4 charge; watch cost discipline and provision normalization in 2025 .
  • Funding mix shifted: NIB deposits declined and $50M brokered CDs plus $15M FHLB borrowings were used, raising sensitivity to funding costs as rates evolve .
  • Asset quality improved materially YoY with stronger ACL coverage; sustaining low NPLs should support lower credit cost volatility .
  • NIM remains solid at 4.34%; the key is whether deposit pricing and balance-sheet mix allow margin stability amid potential rate changes .
  • Efficiency ratio deterioration to 64% reflects equity compensation expense and higher operating costs; near-term earnings trajectory hinges on cost control and operating leverage .
  • Loan growth reaccelerated in Q4 (+$33M YoY net loans), supported by funding moves; monitor credit underwriting and returns on incremental originations .
  • With no formal guidance and limited external estimates, near-term stock catalysts are likely tied to demonstrated opex normalization, deposit mix improvement, and validation of asset-quality gains in subsequent quarters .