BV Financial (BVFL) investor relations material

Executive summary

• Net income for Q2 2026 was $3.5 million ($0.42 per diluted share), up from $2.9 million ($0.29 per diluted share) in Q2 2025; net income for the first half of 2026 was $4.6 million ($0.55 per diluted share), down from $5.0 million ($0.50 per diluted share) in the prior year period due to a $2.2 million executive transition expense.

• Adjusted net income for Q2 2026 was $3.9 million ($0.47 per diluted share), up from $3.7 million ($0.37 per diluted share) in Q2 2025; year-to-date adjusted net income was $7.1 million ($0.86 per diluted share), up from $6.7 million ($0.67 per diluted share) year-over-year.

• Total assets decreased 3.8% to $877.9 million at June 30, 2026, primarily due to a $44.3 million reduction in loans, partially offset by a $13.2 million increase in cash and cash equivalents.

• Operating Pre-Provision Net Revenue (OPPNR) for Q2 2026 was $5.2 million ($0.63 per diluted share), slightly down from $5.4 million ($0.54 per diluted share) in Q2 2025.

Financial highlights

• Net interest income for Q2 2026 rose to $9.5 million from $9.2 million in Q2 2025; net interest margin increased to 4.58% from 4.36%.

• Interest expense fell 14.2% year-over-year for Q2 2026, mainly due to payoff of subordinated debentures and FHLB borrowings.

• Noninterest income for Q2 2026 was $467,000, down from $714,000 in Q2 2025, mainly due to a branch write-down and lower fee income.

• Noninterest expense for Q2 2026 was $5.5 million, down from $5.8 million in Q2 2025, with lower compensation offset by higher occupancy and professional fees.

• All $35.0 million in FHLB borrowings were paid off in Q2 2026, resulting in a $0.3 million gain from reduced interest expense.

Outlook and guidance

• Management anticipates sufficient liquidity and funding to meet obligations, with $142.3 million available from FHLB and a $20 million unsecured facility.

• The company expects to retain a significant portion of maturing time deposits and maintain strong liquidity.

• Management highlights the volatility in provision for credit losses since adopting CECL, emphasizing the use of OPPNR as a more meaningful metric.

• No material changes to risk factors or outlook since the last annual report.

• Forward-looking statements cite risks from economic conditions, interest rates, inflation, competition, regulatory changes, and geopolitical events.