What changed in BV Financial, Inc.'s 10-K — 2024 vs 2025
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Paragraph-level year-over-year comparison of BV Financial, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.
+233 added−241 removedSource: 10-K (2026-03-27) vs 10-K (2025-03-27)
Top changes in BV Financial, Inc.'s 2025 10-K
233 paragraphs added · 241 removed · 214 edited across 2 sections
- Item 6. [Reserved]+220 / −227 · 202 edited
- Item 1C. Cybersecurity+13 / −14 · 12 edited
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
12 edited+1 added−2 removed5 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
12 edited+1 added−2 removed5 unchanged
2024 filing
2025 filing
Biggest changeWe conduct our operations from our main office, 13 branch offices and one standalone ITM, all of which are located in Baltimore City, Anne Arundel, Baltimore, Dorchester, Harford and Talbot Counties, Maryland. We own our main office and 9 of our branch offices and lease the remaining four branch offices.
Biggest changeAll such policies are approved by the board of directors. All Information Security activity is led by the Information Security Officer . It em 2. Properties. We conduct our operations from our main office, 12 branch offices which are located in Baltimore City, Anne Arundel, Baltimore, Dorchester, Harford and Talbot Counties, Maryland.
The following table provides information on repurchases by the Company of its common stock under the Company's Board approved program during the quarter ended December 31, 2024.
The following table provides information on repurchases by the Company of its common stock under the Company's Board approved program during the quarter ended December 31, 2025.
At December 31, 2024, we were not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows. It em 4. Mine Safety Disclosures. Not applicable. 37 PART II It em 5.
At December 31, 2025, we were not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows. It em 4. Mine Safety Disclosures. Not applicable. 36 PART II It em 5.
The common stock of BV Financial is listed on The Nasdaq Capital Market under the symbol “BVFL.” As of March 14, 2025, we had 318 stockholders of record (excluding the number of persons or entities holding stock in street name through various brokerage firms), and 10,594,044 shares of common stock outstanding.
The common stock of BV Financial is listed on The Nasdaq Capital Market under the symbol “BVFL.” As of March 13, 2026, we had 295 stockholders of record (excluding the number of persons or entities holding stock in street name through various brokerage firms), and 8,790,568 shares of common stock outstanding.
Our employees are supported with solutions designed to identify, prevent, detect, respond to, and recover from incidents. Notable technologies include firewalls, intrusion detection systems, security automation and response capabilities, user behavior analytics, multi-factor authentication, data backups to immutable storage and business continuity applications. Notable services include 24/7 security monitoring and response, vulnerability scanning, third-party monitoring, and threat intelligence.
Notable technologies include firewalls, intrusion detection systems, security automation and response capabilities, user behavior analytics, multi-factor authentication, data backups to immutable storage and business continuity applications. Notable services include 24/7 security monitoring and response, vulnerability scanning, third-party monitoring, and threat intelligence. Like many companies, the Company relies on third-party vendor solutions to support its operations .
At December 31, 2024, the net book value of our premises and equipment was $13.2 million. Ite m 3. Legal Proceedings.
We own our main office and eight of our branch offices and lease the remaining four branch offices. At December 31, 2025, the net book value of our premises and equipment was $12.5 million. Ite m 3. Legal Proceedings.
This includes advanced employee training, innovative technologies, and policies and procedures in the areas of Information Security, Data Governance, Business Continuity and Disaster Recovery, Privacy, Third Party Risk Management, and Incident Response. 36 Core activities supporting our strategy include cybersecurity training, technology optimization, threat intelligence, vulnerability and patch management and the testing of incident response, business continuity and disaster recovery capabilities.
To prepare and respond to incidents, the Company has implemented a multi-layered “defense-in-depth” cybersecurity strategy, integrating people, technology, and processes. This includes advanced employee training, innovative technologies, and policies and procedures in the areas of Information Security, Data Governance, Business Continuity and Disaster Recovery, Privacy, Third Party Risk Management, and Incident Response.
Like many companies, the Company relies on third-party vendor solutions to support its operations . Many of these vendors have access to sensitive and proprietary information. Third-party vendors continue to be a notable source of operational and informational risk.
Many of these vendors have access to sensitive and proprietary information. Third-party vendors continue to be a notable source of operational and informational risk. Accordingly, the Company has implemented a Third-Party Risk Management program, which includes a detailed onboarding process and periodic reviews of vendors with access to sensitive Company data .
Employees are the first line of defense against cybersecurity measures. Every employee is responsible for protecting Bank and client information. Accordingly, employees complete formal training and acknowledge security policies annually. In addition, employees are subjected to regular simulated phishing assessments, designed to sharpen threat detection and reporting capabilities.
Core activities supporting our strategy include cybersecurity training, technology optimization, threat intelligence, vulnerability and patch management and the testing of incident response, business continuity and disaster recovery capabilities. Employees are the first line of defense against cybersecurity measures. Every employee is responsible for protecting Bank and client information. Accordingly, employees complete formal training and acknowledge security policies annually.
Further, these programs support a coordinated response when responding to incidents. Periodic exercises and tests verify these programs’ effectiveness. Validating solution and program effectiveness in relation to regulatory compliance and industry standards is important. Accordingly, the Company engages third-party consultants and independent auditors to conduct penetration tests, external audits, program enhancement where applicable and review of cybersecurity risk assessments.
As indicated above, supporting our operations are incident response, business continuity, and disaster recovery programs. These programs identify and assess threats and evaluate risk. Further, these programs support a coordinated response when responding to incidents. Periodic exercises and tests verify these programs’ effectiveness. Validating solution and program effectiveness in relation to regulatory compliance and industry standards is important.
Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs October 1 - 31, 2024 127,000 15.38 127,000 982,272 November 1 - 30, 2024 782,029 15.97 782,029 200,243 December 1 - 31, 2024 142,205 17.24 142,205 58,038 Total 1,051,234 $ 16.07 1,051,234
Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs October 1 - 31, 2025 565,387 $ 16.53 565,387 388,222 November 1 - 30, 2025 138,875 16.71 138,875 249,347 December 1 - 31, 2025 11,920 18.34 11,920 237,427 Total 716,182 $ 16.59 716,182
Cybersecurity Governance The Company has established an Information Technology Steering Committee consisting of department leaders. The committee focuses on strategic and tactical delivery as well as policy oversight. All such policies are approved by the board of directors. All Information Security activity is led by the Information Security Officer . It em 2. Properties.
Accordingly, the Company engages third-party consultants and independent auditors to conduct penetration tests, external audits, program enhancement where applicable and review of cybersecurity risk assessments. Cybersecurity Governance The Company has established an Information Technology Steering Committee consisting of department leaders. The committee focuses on strategic and tactical delivery as well as policy oversight.
Removed
To prepare and respond to incidents, the Company has implemented a multi-layered “defense-in-depth” cybersecurity strategy, integrating people, technology, and processes.
Added
In addition, employees are subjected to regular simulated phishing assessments, designed to sharpen threat detection and reporting capabilities. 35 Our employees are supported with solutions designed to identify, prevent, detect, respond to, and recover from incidents.
Removed
Accordingly, the Company has implemented a Third-Party Risk Management program, which includes a detailed onboarding process and periodic reviews of vendors with access to sensitive Company data . As indicated above, supporting our operations are incident response, business continuity, and disaster recovery programs. These programs identify and assess threats and evaluate risk.
Item 6. [Reserved]
Selected Financial Data — reserved (removed by SEC in 2021)
202 edited+18 added−25 removed161 unchanged
Item 6. [Reserved]
Selected Financial Data — reserved (removed by SEC in 2021)
202 edited+18 added−25 removed161 unchanged
2024 filing
2025 filing
Biggest change(dollars in thousands) Recovery of provision for credit losses - loans $ ( 347 ) Reduction in allowance for securities - HTM ( 2 ) Provision in allowance for credit losses - unfunded commitments 146 Provision for (recovery of) credit losses per the Consolidated Statement of Income $ ( 203 ) A summary of transactions in the allowance for credit losses-loans during the year ended December 31, 2023 follows: Year Ended December 31, 2023 (dollars in thousands) Beginning Balance Impact of ASC 326 Adoption Charge-offs Recoveries Provisions (recovery) Ending Balance Real estate One to four family - owner occupied $ 344 $ 1,117 $ ( 2 ) $ 64 $ 205 $ 1,728 One to four family - non owner occupied 562 356 — 305 ( 193 ) 1,030 Commercial owner occupied 366 78 ( 3 ) — 122 563 Commercial investor 2,272 1,506 — — ( 53 ) 3,725 Construction and land 93 496 — 154 29 772 Farm loans 17 135 — — 27 179 Total real estate loans 3,654 3,688 ( 5 ) 523 137 7,997 Marine and other consumer loans 68 336 ( 80 ) 26 53 403 Commercial 91 208 — 3 ( 148 ) 154 Total consumer and commercial 159 544 ( 80 ) 29 ( 95 ) 557 Total loans $ 3,813 $ 4,232 $ ( 85 ) $ 552 $ 42 $ 8,554 72 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements The following table presents the credit risk profile by risk grade by origination year as of December 31, 2024.
Biggest change(dollars in thousands) December 31, 2025 December 31, 2024 Recovery of provision for credit losses - loans $ ( 2,168 ) $ ( 347 ) Reduction in allowance for securities - HTM ( 2 ) ( 2 ) Provision in allowance for credit losses - unfunded commitments ( 259 ) 146 Provision for (recovery of) credit losses per the Consolidated Statement of Income $ ( 2,429 ) $ ( 203 ) A summary of transactions in the allowance for credit losses-loans during the year ended December 31, 2024 follows: Year Ended December 31, 2024 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions (recovery) Ending Balance Real estate One to four family - owner occupied $ 1,728 $ — $ 115 $ 15 $ 1,858 One to four family - non owner occupied 1,030 ( 1 ) 196 ( 483 ) 742 Commercial owner occupied 563 — — ( 52 ) 511 Commercial investor 3,725 — — ( 133 ) 3,592 Construction and land 772 — 4 164 940 Farm loans 179 — — ( 110 ) 69 Total real estate loans 7,997 ( 1 ) 315 ( 599 ) 7,712 Marine and other consumer loans 403 ( 3 ) 1 ( 2 ) 399 Commercial 154 — 3 254 411 Total consumer and commercial 557 ( 3 ) 4 252 810 Total loans $ 8,554 $ ( 4 ) $ 319 $ ( 347 ) $ 8,522 The following table presents the credit risk profile by risk grade by origination year as of December 31, 2025. 69 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Balance at December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Total One to four family - owner occupied Pass $ 34,231 $ 23,919 $ 5,315 $ 7,503 $ 12,345 $ 68,285 $ 11,790 $ 163,388 Special Mention — — — — — — — — Substandard — — — — 329 247 — 576 Doubtful — — — — — — — — Loss — — — — — — — — Total One to four family - owner occupied $ 34,231 $ 23,919 $ 5,315 $ 7,503 $ 12,674 $ 68,532 $ 11,790 $ 163,964 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — One to four family - non owner occupied Pass $ 8,148 $ 4,737 $ 12,480 $ 26,808 $ 14,860 $ 27,113 $ — $ 94,146 Special Mention — — — — — — — — Substandard — — — — — 365 — 365 Doubtful — — — — — — — — Loss — — — — — — — — Total One to four family - non owner occupied $ 8,148 $ 4,737 $ 12,480 $ 26,808 $ 14,860 $ 27,478 $ — $ 94,511 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Commercial owner occupied Pass $ 3,905 $ 4,100 $ 19,694 $ 10,299 $ 5,646 $ 34,164 $ — $ 77,808 Special Mention — — — — — — — — Substandard — — — — 294 1,628 — 1,922 Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial owner occupied $ 3,905 $ 4,100 $ 19,694 $ 10,299 $ 5,940 $ 35,792 $ — $ 79,730 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Commercial investor Pass $ 34,551 $ 34,460 $ 61,241 $ 80,765 $ 66,609 $ 44,049 $ — $ 321,675 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial investor $ 34,551 $ 34,460 $ 61,241 $ 80,765 $ 66,609 $ 44,049 $ — $ 321,675 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Construction and land Pass $ 7,957 $ 26,805 $ 271 $ 348 $ 448 $ 586 $ — $ 36,415 Special Mention — — — — — — — — Substandard — — — — — 26 — 26 Doubtful — — — — — — — — Loss — — — — — — — — Total Construction and land $ 7,957 $ 26,805 $ 271 $ 348 $ 448 $ 612 $ — $ 36,441 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Farm loans Pass $ — $ 311 $ — $ 300 $ 1,744 $ 4,876 $ — $ 7,231 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Farm loans $ — $ 311 $ — $ 300 $ 1,744 $ 4,876 $ — $ 7,231 Current Period Gross Write-off $ — $ — $ — $ — $ — $ — $ — $ — Marine and other consumer loans Pass $ 883 $ 2,042 $ 2,408 $ 1,587 $ 4,698 $ 3,296 $ — $ 14,914 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Marine and other consumer loans $ 883 $ 2,042 $ 2,408 $ 1,587 $ 4,698 $ 3,296 $ — $ 14,914 Current Period Gross Write-off $ — $ — $ — $ — $ — $ 14 $ — $ 14 Guaranteed by U.S.
The Company is a registered bank holding company subject to comprehensive regulation and examination by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). The Company conducts its operations primarily through its wholly owned subsidiary, the BayVanguard Bank (the "Bank"), a Maryland-chartered commercial bank.
The Company is a registered bank holding company subject to comprehensive regulation and examination by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). The Company conducts its operations primarily through its wholly owned subsidiary, BayVanguard Bank (the "Bank"), a Maryland-chartered commercial bank.
BayVanguard Bank is headquartered in Baltimore, Maryland and is a community-oriented financial institution offering traditional financial services to its local communities. The Bank is engaged primarily in the business of attracting deposits from the general public and using such funds to originate one-to-four family real estate, construction, multi-family, commercial real estate, farm, marine loans, commercial and consumer loans.
BayVanguard Bank is headquartered in Baltimore, Maryland and is a community-oriented financial institution offering traditional financial services to its local communities. The Bank is engaged primarily in the business of attracting deposits from the general public and using such funds to originate one-to-four family real estate, construction, multi-family, commercial real estate, farm, marine, commercial and consumer loans.
The Company acquired $ 3.0 million of junior subordinated debt of Easton Capital Trust I. The junior subordinated debt was scheduled to mature on February 8, 2034 , but may may have been called starting on February 8, 2009. The junior subordinated debt accrued interest at a floating rate equal to the three-month SOFR plus 2.85 %, payable quarterly.
The Company acquired $ 3.0 million of junior subordinated debt of Easton Capital Trust I. The junior subordinated debt was scheduled to mature on February 8, 2034 , but may have been called starting on February 8, 2009. The junior subordinated debt accrued interest at a floating rate equal to the three-month SOFR plus 2.85 %, payable quarterly.
We have implemented the following strategies to manage our interest rate risk: 1. growing our volume of core deposit accounts; 2. holding higher levels of cash and cash equivalents; 3. continuing the diversification of our loan portfolio by adding more commercial-related loans, which typically have variable rates and shorter maturities; and 4. purchasing short-term and adjustable rate securities.
We have implemented the following strategies to manage our interest rate risk: 1. growing core deposit accounts; 2. holding higher levels of cash and cash equivalents; 3. continuing the diversification of our loan portfolio by adding more commercial-related loans, which typically have variable rates and shorter maturities; and 4. purchasing short-term and adjustable rate securities.
The determination of whether a decline affects the ultimate recoverability of the investment is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. 59 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 – Summary Of Significant Accounting Policies (Continued) Loans Receivable Loans receivable are stated at unpaid principal balances, adjusted for premiums and discounts on loans purchased, the undisbursed portion of loans in process, net deferred loan origination fees and costs, fair value adjustments on loans acquired in a merger, and the allowance for credit losses.
The determination of whether a decline affects the ultimate recoverability of the investment is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. 57 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 – Summary Of Significant Accounting Policies (Continued) Loans Receivable Loans receivable are stated at unpaid principal balances, adjusted for premiums and discounts on loans purchased, the undisbursed portion of loans in process, net deferred loan origination fees and costs, fair value adjustments on loans acquired in a merger, and the allowance for credit losses.
Under the regulations, an application to and prior approval of the Federal Deposit Insurance Corporation is required prior to any capital distribution if the institution does not meet the criteria for "expedited treatment" of applications under Federal Deposit Insurance Corporation regulations (i.e., generally, examination and Community Reinvestment Act ratings in the two top categories), the total capital distributions for the calendar year exceed net income for that year plus the amount of retained net income for the preceding two years, the institution would be undercapitalized following the distribution or the distribution would otherwise be contrary to a statute, regulation or agreement with the Federal Deposit Insurance Corporation. 87 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 10 – Regulatory Matters (Continued) Banks are required to carry noninterest-bearing cash reserves at specified percentages of deposit balances.
Under the regulations, an application to and prior approval of the Federal Deposit Insurance Corporation is required prior to any capital distribution if the institution does not meet the criteria for "expedited treatment" of applications under Federal Deposit Insurance Corporation regulations (i.e., generally, examination and Community Reinvestment Act ratings in the two top categories), the total capital distributions for the calendar year exceed net income for that year plus the amount of retained net income for the preceding two years, the institution would be undercapitalized following the distribution or the distribution would otherwise be contrary to a statute, regulation or agreement with the Federal Deposit Insurance Corporation. 84 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 10 – Regulatory Matters (Continued) Banks are required to carry noninterest-bearing cash reserves at specified percentages of deposit balances.
Deferred tax assets are recognized only to the extent that it is more likely than not that such amounts will be realized based on consideration of available evidence. Statements of Cash Flows Cash and cash equivalents in the statements of cash flows include cash, federal funds sold and interest bearing deposits in other banks.
Deferred tax assets are recognized only to the extent that it is more likely than not that such amounts will be realized based on consideration of available evidence. Statements of Cash Flows Cash and cash equivalents in the Consolidated Statements of Cash Flows include cash, federal funds sold and interest bearing deposits in other banks.
Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
When available information confirms that specific loans, or portions thereof, are uncollectible, these amounts are charged against the allowance, and subsequent recoveries, if any, are credited to the allowance. The allowance for credit losses is evaluated on a no less than a quarterly basis by management.
When available information confirms that specific loans, or portions thereof, are uncollectible, these amounts are charged against the allowance, and subsequent recoveries, if any, are credited to the allowance. The allowance for credit losses is evaluated on a no less than a quarterly basis by 38 management.
The floating rate securities in the available-for-sale portfolio will reprice lower with a short (quarterly) lag. 3. Loans with variable interest rates will begin to reprice at rates lower than the current note rates. 4. New assets (loans & investment securities) will be placed on the balance sheet at the lower current market interest rates. 5.
The floating-rate securities in the available-for-sale portfolio will reprice lower with a short (quarterly) lag. 3. Loans with variable interest rates will begin to reprice at rates lower than the current note rates. 4. New assets (loans and investment securities) will be placed on the balance sheet at the lower current market interest rates. 5.
In connection with the Conversion, the ESOP subscribed for 8 % of the shares of the Company stock sold in the offering. The purchase was funded through a loan of $ 7.8 million from the Company, with an interest rate of 8.50 % with a twenty-year term. Total shares purchased by the ESOP was 783,918 .
In connection with the Conversion, the ESOP subscribed for 8 % of the shares of the Company stock sold in the offering. The purchase was funded through a loan of $ 7.8 million from the Company, with an interest rate of 8.50 % with a twenty-year term. Total shares purchased by the ESOP were 783,918 .
Change in Net Interest Income. We analyze our sensitivity to changes in interest rates through a net interest income model. Net interest income is the difference between the interest income we earn on our interest-earning assets, such as loans and securities, and the interest we pay on our interest-bearing liabilities, such as deposits and borrowings.
Change in Net Interest Income. We analyze our sensitivity to changes in interest rates through a net interest income model. Net interest income is the difference between the interest income we earn on our interest-earning assets, such as loans 45 and securities, and the interest we pay on our interest-bearing liabilities, such as deposits and borrowings.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. 60 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 – Summary Of Significant Accounting Policies (Continued) Allowance for Credit Losses - Loans The Allowance for Credit Losses (the "ACL") is an estimate of the expected credit losses for loans held for investment and for off-balance sheet exposures.
Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. 58 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 – Summary Of Significant Accounting Policies (Continued) Allowance for Credit Losses - Loans The Allowance for Credit Losses (the "ACL") is an estimate of the expected credit losses for loans held for investment and for off-balance sheet exposures.
Advances from the Federal Home Loan Bank of Atlanta The fair value of advances is estimated discounting the contractual cash flows using rates currently offered for advances with similar terms and remaining maturities. 94 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 16 – Fair Value Measurements (Continued ) Off-Balance Sheet Credit Related Instruments Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing.
Advances from the Federal Home Loan Bank of Atlanta The fair value of advances is estimated discounting the contractual cash flows using rates currently offered for advances with similar terms and remaining maturities. 92 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 16 – Fair Value Measurements (Continued ) Off-Balance Sheet Credit Related Instruments Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing.
A basis point equals 47 one-hundredth of one percent, and 100 basis points equals one percent. An increase in interest rates from 3% to 4% would mean, for example, a 100 basis point increase in the “Change in Interest Rates” column below.
A basis point equals one-hundredth of one percent, and 100 basis points equals one percent. An increase in interest rates from 3% to 4% would mean, for example, a 100 basis point increase in the “Change in Interest Rates” column below.
Accordingly, our financial statements may not be comparable to companies that comply with such new or revised accounting standards. The following represent our critical accounting policies: 39 Allowance for Credit Losses .
Accordingly, our financial statements may not be comparable to companies that comply with such new or revised accounting standards. The following represent our critical accounting policies: Allowance for Credit Losses .
During the three months ended December 31, 2024, none of BV Financial’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement,” as that term is used in Securities and Exchange Commission regulations.
During the three months ended December 31, 2025, none of BV Financial’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement,” as that term is used in Securities and Exchange Commission regulations.
The Company does not have any significant concentrations to any one industry or customer. 58 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 – Summary Of Significant Accounting Policies (Continued) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, cash items in the process of clearing, and interest-bearing deposits with banks with original maturities of less than 90 days.
The Company does not have any significant concentrations to any one industry or customer. 56 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 – Summary Of Significant Accounting Policies (Continued) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, cash items in the process of clearing, and interest-bearing deposits with banks with original maturities of less than 90 days.
Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. 91 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).
Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. 89 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).
If the director dies after monthly payments have commenced under the agreement, the director's beneficiary will receive the remaining installments in monthly payments in accordance with the schedule of payments due to the director. 82 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 8 – Profit Sharing and Deferred Compensation Agreements (Continued) The Company agreed to maintain post-retirement agreements with two former directors of acquired institutions.
If the director dies after monthly payments have commenced under the agreement, the director's beneficiary will receive the remaining installments in monthly payments in accordance with the schedule of payments due to the director. 79 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 8 – Profit Sharing and Deferred Compensation Agreements (Continued) The Company agreed to maintain post-retirement agreements with two former directors of acquired institutions.
As of December 31, 2024, we have recognized no credit losses on AFS securities. For HTM debt securities, an allowance will be recognized when lifetime credit losses are expected, in an amount that reflects the expected contractual credit losses, even when the risk of such loss is remote. Any security, either explicitly or implicitly guaranteed by the U.S.
As of December 31, 2025, we have recognized no credit losses on AFS securities. For HTM debt securities, an allowance will be recognized when lifetime credit losses are expected, in an amount that reflects the expected contractual credit losses, even when the risk of such loss is remote. Any security, either explicitly or implicitly guaranteed by the U.S.
Lease agreements that include lease and non-lease components, such as common area maintenance charges, are accounted for separately. 62 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 – Summary Of Significant Accounting Policies (Continued) Investment in Life Insurance Investment in life insurance is reflected at the net cash surrender value to the Company.
Lease agreements that include lease and non-lease components, such as common area maintenance charges, are accounted for separately. 60 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 – Summary Of Significant Accounting Policies (Continued) Investment in Life Insurance Investment in life insurance is reflected at the net cash surrender value to the Company.
Accordingly, repayment of such loans can be more susceptible to adverse conditions in the real estate market and the regional economy. 69 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements In the normal course of banking business, risks related to specific loan categories are as follows: Real Estate Loans – Real estate loans are typically made to consumers and businesses and are secured by real estate.
Accordingly, repayment of such loans can be more susceptible to adverse conditions in the real estate market and the regional economy. 67 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements In the normal course of banking business, risks related to specific loan categories are as follows: Real Estate Loans – Real estate loans are typically made to consumers and businesses and are secured by real estate.
At December 31, 2024, BayVanguard Bank exceeded all of its regulatory capital requirements, and was categorized as well capitalized at December 31, 2024. Management is not aware of any conditions or events since the most recent notification that would change our category. Off-Balance Sheet Arrangements and Aggregate Contractual Obligations Commitments.
At December 31, 2025, BayVanguard Bank exceeded all of its regulatory capital requirements, and was categorized as well capitalized. Management is not aware of any conditions or events since the most recent notification that would change our category. Off-Balance Sheet Arrangements and Aggregate Contractual Obligations Commitments.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of their operations and their cash flows for each of the years in the two-year period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America .
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of their operations and their cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
Sales of loans are recorded when the proceeds are received. Any gain or loss is recorded in noninterest income. There were no mortgage loans held for sale as of December 31, 2024 or 2023. The Company occasionally sells its mortgage loans on a best effort basis to third-party investors on a servicing released basis.
Sales of loans are recorded when the proceeds are received. Any gain or loss is recorded in noninterest income. There were no mortgage loans held for sale as of December 31, 2025 or 2024. The Company occasionally sells its mortgage loans on a best effort basis to third-party investors on a servicing released basis.
Credit risk arises from the borrower’s continuing financial stability, which can be adversely impacted by the economy as well as borrower-specific occurrences. Also impacting credit risk would be a shortfall in the value of the real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the collateral.
Credit risk arises from the borrower’s continuing financial stability, which can be adversely impacted by the economy as well as borrower-specific occurrences. Also impacting credit risk is a shortfall in the value of the real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the collateral.
Additionally, at December 31, 2024 and December 31, 2023, the Bank had a $ 20.0 million unsecured demand line of credit facility with a correspondent bank, which had no outstanding balance. The Company issued $ 35.0 million in Fixed-to-Floating Rate Subordinated Notes Due 2030 on October 21, 2020.
Additionally, at December 31, 2025 and December 31, 2024, the Bank had a $ 20.0 million unsecured demand line of credit facility with a correspondent bank, which had no outstanding balance. The Company issued $ 35.0 million in Fixed-to-Floating Rate Subordinated Notes Due 2030 on October 21, 2020.
Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance sheet 85 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements items as calculated under regulatory accounting practices.
Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance sheet 82 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements items as calculated under regulatory accounting practices.
The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB. 93 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 16 – Fair Value Measurements (Continued ) Loans Receivable The fair value of loans receivable were determined using an exit price methodology as prescribed by ASC 820.
The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB. 91 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 16 – Fair Value Measurements (Continued ) Loans Receivable The fair value of loans receivable were determined using an exit price methodology as prescribed by ASC 820.
Note 8 – Profit Sharing and Deferred Compensation Agreements The Bank has a profit sharing plan and a 401(k) plan for all eligible employees. Contributions to the plans are discretionary by the Board of Directors. For the year ended December 31, 2024 the Company had a maximum match contribution of 5 %.
Note 8 – Profit Sharing and Deferred Compensation Agreements The Bank has a profit sharing plan and a 401(k) plan for all eligible employees. Contributions to the plans are discretionary by the Board of Directors. For the year ended December 31, 2025, the Company had a maximum match contribution of 5 %.
The reserve is estimated by loan segment at each measurement date under the expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur, and is included in other liabilities on the Company's consolidated balance sheets. 61 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 – Summary Of Significant Accounting Policies (Continued) Mortgage Loans Held for sale Mortgages originated for sale are carried at the lower of aggregate cost or fair value of each outstanding loan.
The reserve is estimated by loan segment at each measurement date under the expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur, and is included in other liabilities on the Company's consolid ated balance sheets. 59 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 – Summary Of Significant Accounting Policies (Continued) Mortgage Loans Held for sale Mortgages originated for sale are carried at the lower of aggregate cost or fair value of each outstanding loan.
Revenue Recognition Management is required by accounting pronouncements governing the recognition of revenue which require an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
Revenue Recognition Management is required by accounting pronouncements governing the recognition of revenue to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
Recent Accounting Pronouncements Please refer to Note 1 to the consolidated financial statements of BV Financial for the years ended December 31, 2024 and 2023 included with this document for a description of recent accounting pronouncements that may affect our financial condition and results of operations.
Recent Accounting Pronouncements Please refer to Note 1 to the consolidated financial statements of BV Financial for the years ended December 31, 2025 and 2024 included with this document for a description of recent accounting pronouncements that may affect our financial condition and results of operations.
Based on this assessment, management, including our Principal Executive Officers and Principal Financial Officer, concluded that the Company’s internal control over financial reporting was effective and met the criteria of the “Internal Control — Integrated Framework (2013)” as of December 31, 2024.
Based on this assessment, management, including our Principal Executive Officers and Principal Financial Officer, concluded that the Company’s internal control over financial reporting was effective and met the criteria of the “Internal Control — Integrated Framework (2013)” as of December 31, 2025.
(d) Changes in Internal Controls During the quarter ended December 31, 2024, there have been no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. It em 9B. Other Information.
(d) Changes in Internal Controls During the quarter ended December 31, 2025, there have been no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. It em 9B. Other Information.
Retained earnings at December 31, 2024 and December 31, 2023 included $ 1.5 million for which no provision for income tax has been provided. The unrecorded deferred income tax liability on the above amount was approximately $ 413,000 .
Retained earnings at December 31, 2025 and December 31, 2024 included $ 1.5 million for which no provision for income tax has been provided. The unrecorded deferred income tax liability on the above amount was approximately $ 413,000 .
When the fair value of an AFS debt security has declined below its amortized cost basis, the Company is required to assess whether the decline is from a credit loss or other factor.
When the fair value of an AFS debt security has declined below its amortized cost basis, the Company is required to assess whether the decline is from a credit loss or other factors.
As of the years ended December 31, 2024, and 2023, there were no unvested restricted stock or performance stock unit awards which were excluded from the calculation as their effect would be anti-dilutive.
As of the years ended December 31, 2025, and 2024, there were no unvested restricted stock or performance stock unit awards which were excluded from the calculation as their effect would be anti-dilutive.
We monitor the credit quality of HTM debt securities through both internal analysis performed on a quarterly basis and credit ratings when available. The following table reflects the credit ratings for the HTM debt securities at December 31, 2024.
We monitor the credit quality of HTM debt securities through both internal analysis performed on a quarterly basis and credit ratings when available. The following table reflects the credit ratings for the HTM debt securities at December 31, 2025.
The table below sets forth, as of December 31, 2024, the calculation of the estimated changes in our net interest income that would result from the designated immediate changes in the United States Treasury yield curve.
The table below sets forth, as of December 31, 2025, the calculation of the estimated changes in our net interest income that would result from the designated immediate changes in the United States Treasury yield curve.
Significant revenue and expense categories evaluated by the CODMs are consistent with the presentation of the Consolidated Statement of Income. Note 16 – Fair Value Measurements The estimated fair values of the Bank's financial instruments are summarized below.
Significant revenue and expense categories evaluated by the CODM are consistent with the presentation of the Consolidated Statement of Income. Note 16 – Fair Value Measurements The estimated fair values of the Bank's financial instruments are summarized below.
EVE as a measurement tool for interest rate risk measures the changes in the values of assets and liabilities based on the structure of the individual instrument (maturity, interest rate, re-pricing characteristic) when different levels of market interest rates are assumed. 48 The table below sets forth, as of December 31, 2024, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the United States Treasury yield curve.
EVE as a measurement tool for interest rate risk measures the changes in the values of assets and liabilities based on the structure of the individual instrument (maturity, interest rate, re-pricing characteristic) when different levels of market interest rates are assumed. 46 The table below sets forth, as of December 31, 2025, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the United States Treasury yield curve.
Lastly, the amendments in this ASU require an entity to disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. This ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted.
Lastly, the amendments in this ASU require an entity to disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. This ASU is effective for annual periods beginning after December 15, 2024.
The information at and for the years ended December 31, 2024 and 2023 is derived in part from the audited consolidated financial statements that appear elsewhere in this annual report.
The information at and for the years ended December 31, 2025 and 2024 is derived in part from the audited consolidated financial statements that appear elsewhere in this annual report.
Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. /s/ Forvis Mazars, LLP We have served as the Company’s auditor since 2021. Tysons, Virginia March 27, 2025 52 BV FINANCIAL, INC.
Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. /s/ Forvis Mazars, LLP We have served as the Company’s auditor since 2021. Tysons, Virginia March 27, 2026 50 BV FINANCIAL, INC.
The Company had 79,024 anti-dilutive shares at December 31, 2024 and no anti-dilutive shares at December 31, 2023. 63 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 – Summary Of Significant Accounting Policies (Continued) Basic earnings per common share represent income available to common shareholders, divided by the weighted average number of common shares outstanding during the period.
The Company had no anti-dilutive shares at December 31, 2025 and 79,024 anti-dilutive shares at December 31, 2024. 61 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 – Summary Of Significant Accounting Policies (Continued) Basic earnings per common share represent income available to common shareholders, divided by the weighted average number of common shares outstanding during the period.
The Company recognized compensation expense related to these plans of $ 185,000 and $ 182,000 during the years ended December 31, 2024 and December 31, 2023, respectively. Accounting standards require the recognition of a liability and related compensation costs for endorsement split-dollar life insurance policies that provide a benefit to an employee that extends to post-retirement periods.
The Company recognized compensation expense related to these plans of $ 188,000 and $ 185,000 during the years ended December 31, 2025 and December 31, 2024, respectively. Accounting standards require the recognition of a liability and related compensation costs for endorsement split-dollar life insurance policies that provide a benefit to an employee that extends to post-retirement periods.
(a) Evaluation of Disclosure Controls and Procedures An evaluation was performed under the supervision and with the participation of the Company’s management, including the Co-President and Chief Executive Officers and the Executive Vice President and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15)e) promulgated under the Securities and Exchange Act of 1934, as amended) as of December 31, 2024.
(a) Evaluation of Disclosure Controls and Procedures An evaluation was performed under the supervision and with the participation of the Company’s management, including the President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15)e) promulgated under the Securities and Exchange Act of 1934, as amended) as of December 31, 2025.
(2) Represents the net interest income as a percentage of average interest-earning assets. (3) Represents non-interest expenses divided by the sum of net interest income and non-interest income. (4) BayVanguard Bank only. Comparison of Financial Condition at December 31, 2024 and December 31, 2023 Total Assets .
(2) Represents the net interest income as a percentage of average interest-earning assets. (3) Represents non-interest expenses divided by the sum of net interest income and non-interest income. (4) BayVanguard Bank only. 40 Comparison of Financial Condition at December 31, 2025 and December 31, 2024 Total Assets .
Based on that evaluation, the Company’s management, including the Co-President and Chief Executive Officers and the Executive Vice President and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective.
Based on that evaluation, the Company’s management, including the President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective.
The Bank's deposits are insured up to the applicable legal limits by the Federal Deposit Insurance Corporation's Deposit Insurance Fund. BayVanguard Bank is a member of the Federal Home Loan Bank System. Principles of Consolidation The consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
The Bank's deposits are insured up to the applicable legal limits by the Federal Deposit Insurance Corporation's Deposit Insurance Fund. BayVanguard Bank is a member of the FHLB. Principles of Consolidation The consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Bank-owned life insurance policies purchased for this purpose do not effectively settle the Company's obligation to the employee in this regard and thus the Company records a benefit cost and a related liability. As of December 31, 2024 and December 31, 2023, the Company has recorded a liability of $ 262,000 and $ 275,000 , respectively, for this benefit.
Bank-owned life insurance policies purchased for this purpose do not effectively settle the Company's obligation to the employee in this regard and thus the Company records a benefit cost and a related liability. As of December 31, 2025 and December 31, 2024, the Company has recorded a liability of $ 241,000 and $ 262,000 , respectively, for this benefit.
As shares are committed to be released, the Company recognizes compensation expense equal to the current market price of the shares, and the shares become outstanding in the earnings per share calculation. The Company recognized $ 319,000 and $ 557,000 of ESOP expense associated with the release of the shares during the years ended December 31, 2024 and 2023, respectively.
As shares are committed to be released, the Company recognizes compensation expense equal to the current market price of the shares, and the shares become outstanding in the earnings per share calculation. The Company recognized $ 422,000 and $ 319,000 of ESOP expense associated with the release of the shares during the years ended December 31, 2025 and 2024, respectively.
In any given year BV Financial may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value.
BV Financial may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value.
Under the agreements, each executive receives a stated annual benefit in monthly installments. All executives covered by these agreements are receiving benefits under the terms of the agreements. During the years ended December 31, 2024 and December 31, 2023, benefits of $ 280,000 and $ 251,000 were paid in accordance with the agreements, respectively.
Under the agreements, each executive receives a stated annual benefit in monthly installments. All executives covered by these agreements are receiving benefits under the terms of the agreements. During the years ended December 31, 2025 and December 31, 2024, benefits of $ 182,000 and $ 280,000 were paid in accordance with the agreements, respectively.
For the years ended December 31, 2024 and December 31, 2023, expenses of $ 72,000 and $ 79,000 were incurred for the 401(k) plan, respectively. In the years ended December 31, 2024 and 2023, the Company made no accrual for the profit-sharing plan. The Company has supplemental executive retirement agreements with four retired executive officers.
For the years ended December 31, 2025 and December 31, 2024, expenses of $ 87,000 and $ 72,000 were incurred for the 401(k) plan, respectively. In the years ended December 31, 2025 and 2024, the Company made no accrual for the profit -sharing plan. The Company has supplemental executive retirement agreements with four retired executive officers.
The Company generally requires collateral or other security to support financial instruments with off-balance sheet credit risk. The Company's reserve balance for unfunded commitments was $ 353,000 and $ 289,000 at December 31, 2024 and 2023, respectively.
The Company generally requires collateral or other security to support financial instruments with off-balance sheet credit risk. The Company's reserve balance for unfunded commitments was $ 94,000 and $ 353,000 at December 31, 2025 and 2024, respectively.
The agreements call for the Company to pay the premiums for supplemental health insurance for the directors and their spouses for life. The Company has entered into salary continuation agreements with the Co-CEOs of the Company.
The agreements call for the Company to pay the premiums for supplemental health insurance for the directors and their spouses for life. The Company has entered into salary continuation agreements with the current and former CEOs of the Company.
In particular, non-interest-bearing demand deposits were 19.9% of our total deposits at December 31, 2024. We continue to focus on expanding core deposits by leveraging our business development officers and commercial lending and retail relationships. We intend to continue to pursue these business strategies, subject to changes necessitated by future market conditions, regulatory restrictions and other factors.
In particular, non-interest-bearing demand deposits were 20.5% of our total deposits at December 31, 2025. We continue to focus on expanding core deposits by leveraging our business development officers and commercial lending and retail relationships. We intend to continue to pursue these business strategies, subject to changes necessitated by future market conditions, regulatory restrictions and other factors.
The AFS portfolio holds 96%, or $35.7 million of its portfolio in securities issued by Government Sponsored Enterprises ("GSE") backed by the full faith and credit of the United States Government. The remainder of the portfolio consists of bonds issued by bank holding companies.
The AFS portfolio holds 91%, or $31.7 million, of its portfolio in securities issued by Government Sponsored Enterprises ("GSE") backed by the full faith and credit of the United States Government. The remainder of the portfolio consists of bonds issued by bank holding companies.
The fair values of these instruments were not significant at December 31, 2024 and December 31, 2023.
The fair values of these instruments were not significant at December 31, 2025 and December 31, 2024.
It em 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. 98 PART III
It em 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. 96 PART III
BV Financial performed its 2024 annual goodwill impairment qualitative assessment and determined BV Financial’s goodwill was not considered impaired. We monitor our performance and evaluate our goodwill for impairment annually or more frequently as needed. Deferred Income Taxes. At December 31, 2024, we had a net deferred tax asset totaling $8.9 million.
BV Financial performed its 2025 annual goodwill impairment qualitative assessment and determined BV Financial’s goodwill was not considered impaired. We monitor our performance and evaluate our goodwill for impairment annually or more frequently as needed. Deferred Income Taxes. At December 31, 2025, we had a net deferred tax asset totaling $7.6 million.
Amount Year ending December 31, (dollars in thousands) 2025 $ 173 2026 178 2027 183 2028 189 2029 194 Thereafter 619 Total $ 1,536 Note 14 – Contingencies Various legal claims arise from time to time in the normal course of business, which, in the opinion of management, after consultation with legal counsel, will have no material effect on the Company's consolidated financial position or results of operations.
Amount Year ending December 31, (dollars in thousands) 2026 $ 178 2027 183 2028 189 2029 194 2030 200 Thereafter 419 Total $ 1,363 Note 14 – Contingencies Various legal claims arise from time to time in the normal course of business, which, in the opinion of management, after consultation with legal counsel, will have no material effect on the Company's consolidated financial position or results of operations.
The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period. Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $16.1 million and $15.2 million for the years ended December 31, 2024 and 2023, respectively.
The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period. Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $19.0 million and $16.1 million for the years ended December 31, 2025 and 2024, respectively.
The Bank held approximately $ 1.4 million and $ 626,000 of FHLB restricted stock at December 31, 2024 and December 31, 2023, respectively. The restricted stock is carried at cost. Management evaluates whether this investment is impaired based on its assessment of the ultimate recoverability of the investment rather than by recognizing temporary declines in value.
The Bank held approximately $ 2.3 million and $ 1.4 million of FHLB restricted stock at December 31, 2025 and December 31, 2024, respectively. The restricted stock is carried at cost. Management evaluates whether this investment is impaired based on its assessment of the ultimate recoverability of the investment rather than by recognizing temporary declines in value.
The CODMs evaluate the financial performance of the Company by evaluating revenue streams, significant expenses, and budget to actual results in assessing the Company’s single reporting segment and in the determination of allocating resources. The CODMs use consolidated net income to benchmark the Company against peers and to evaluate performance and allocate resources.
The CODM evaluates the financial performance of the Company by evaluating revenue streams, significant expenses, and budget to actual results in assessing the Company’s single reporting segment and in the determination of allocating resources. The CODM uses consolidated net income to benchmark the Company against peers and to evaluate performance and allocate resources.
Our total non-performing loans to total loans ratio was 0.54% at December 31, 2024. • Increase core deposits with an emphasis on non-interest-bearing deposits. Deposits are our primary source of funds for lending and investment. Core deposits (which we define as all deposits except for time deposits) were 70.8% of total deposits at December 31, 2024.
Our total non-performing loans to total loans ratio was 0.30% at December 31, 2025. • Increase core deposits with an emphasis on non-interest-bearing deposits. Deposits are our primary source of funds for lending and investment. Core deposits (which we define as all deposits except for time deposits) were 69.8% of total deposits at December 31, 2025.
Additionally, at December 31, 2024 and December 31, 2023, the Bank had unfunded letters of credit used to secure municipal deposits outstanding against the FHLB line of credit of $ 23.0 million and $ 25.0 million, respectively.
Additionally, at December 31, 2025 and December 31, 2024, the Bank had unfunded letters of credit used to secure municipal deposits outstanding against the FHLB line of credit of $ 29.0 million and $ 23.0 million, respectively.
The Company has an operating lease agreement with a related party and paid $ 48,000 in lease payments in the year ended December 31, 2024. The following table shows the future operating lease payments due by year.
The Company has an operating lease agreement with a related party and paid $ 56,000 in lease payments in the year ended December 31, 2025. The following table shows the future operating lease payments due by year.
Assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy used at December 31, 2024 and December 31, 2023, are as follows: Level 1 Level 2 Level 3 Quoted prices Significant Significant in active other other markets for observable unobservable December 31, 2024 identical assets inputs inputs (dollars in thousands) Individually evaluated loans $ 4,010 $ — $ — $ 4,010 Other real estateowned and repossessed assets 159 — — 159 $ 4,169 $ — $ — $ 4,169 December 31, 2023 Individually evaluated loans $ 10,554 $ — $ — $ 10,554 Other real estateowned and repossessed assets 170 — — 170 $ 10,724 $ — $ — $ 10,724 The following valuation techniques were used to measure the fair value of assets in the tables above on a nonrecurring basis as of December 31, 2024 and December 31, 2023. 92 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 16 – Fair Value Measurements (Continued ) Individually evaluated loans - Loans included in the table have been measured for impairment generally based on the fair value of the loan's collateral.
Assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy used at December 31, 2025 and December 31, 2024, are as follows: Level 1 Level 2 Level 3 Quoted prices Significant Significant in active other other markets for observable unobservable December 31, 2025 identical assets inputs inputs (dollars in thousands) Individually evaluated loans $ 2,261 $ — $ — $ 2,261 Other real estate owned and repossessed assets — — — — $ 2,261 $ — $ — $ 2,261 December 31, 2024 Individually evaluated loans $ 4,010 $ — $ — $ 4,010 Other real estate owned and repossessed assets 159 — — 159 $ 4,169 $ — $ — $ 4,169 The following valuation techniques were used to measure the fair value of assets in the tables above on a nonrecurring basis as of December 31, 2025 and December 31, 2024. 90 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 16 – Fair Value Measurements (Continued ) Individually evaluated loans - Loans included in the table have been measured for impairment generally based on the fair value of the loan's collateral.
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. 2. Netinterest-earning assets represent total interest-earning assets less total interest-bearing liabilities. 3. Net interest marghin represents net interest income divided by average total interest-earning assets.
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. 2. Netinterest-earning assets represent total interest-earning assets less total interest-bearing liabilities. 3.
We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Time deposits that are scheduled to mature in less than one year from December 31, 2024 totaled $107.5 million.
We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Time deposits that are scheduled to mature in less than one year from December 31, 2025 totaled $79.9 million.
Note 5 – Goodwill and Intangible Assets The activity in core deposit intangible assets for the years ended December 31, 2024 and ended December 31, 2023 is as follows: December 31, 2024 December 31, 2023 (dollars in thousands) Net carrying amount at beginning of period $ 1,012 $ 1,195 Amortization ( 181 ) ( 183 ) Net carrying amount at end of the period $ 831 $ 1,012 79 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements At December 31, 2024 future estimated annual amortization expense is as follows: Year ending (in thousands) 2025 $ 180 2026 180 2027 180 2028 180 2029 72 Thereafter 39 Total Estimated Amortization Expense $ 831 Goodwill and other intangible assets are presented in the tables below.
Note 5 – Goodwill and Intangible Assets The activity in core deposit intangible assets for the years ended December 31, 2025 and ended December 31, 2024 was as follows: December 31, 2025 December 31, 2024 (dollars in thousands) Net carrying amount at beginning of period $ 831 $ 1,012 Amortization ( 180 ) ( 181 ) Net carrying amount at end of period $ 651 $ 831 76 BV Financial, Inc. and Subsidiaries Notes to Consolidated Financial Statements At December 31, 2025 future estimated annual amortization expense is as follows: Year ending (in thousands) 2026 $ 180 2027 180 2028 180 2029 72 2030 30 Thereafter 9 Total Estimated Amortization Expense $ 651 Goodwill and other intangible assets are presented in the tables below.
The Bank is required to maintain qualified mortgage loans as collateral for its FHLB advances and letters of credit in an amount equal to 100% of the outstanding advances. As of December 31, 2024 and December 31, 2023, the Bank pledged $ 157.6 million and $ 175.0 million of gross loans to the FHLB for advances, respectively.
The Bank is required to maintain qualified mortgage loans as collateral for its FHLB advances and letters of credit in an amount equal to 100% of the outstanding advances. As of December 31, 2025 and December 31, 2024, the Bank pledged $ 171.6 million and $ 157.6 million of loans to the FHLB for advances, respectively.
The Company adopted the standard effective for the year ended December 31, 2024 . The adoption did no t result in a material impact on the Company's Consolidated Financial Statements and the amendments have been applied retrospectively. The changes to the financial statement disclosures have been reflected in this filing, specifically Note 15.
The Company adopted the standard effective for the year ended December 31, 2025 . The adoption did not result in a material impact on the Company's Consolidated Financial Statements and the amendments have been applied retrospectively. The changes to the financial statement disclosures have been reflected in this filing, specifically Note 11.
The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due 44 to rate and the changes due to volume. There were no out-of-period items or adjustments required to be excluded from the table below.
For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. There were no out-of-period items or adjustments required to be excluded from the table below.
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