10-Q
1
d10q.htm
FORM 10-Q
Form 10-Q
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2008
OR
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to
Commission file number: 0-51014
BV FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Federal
14-1920944
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
7114 North Point Road, Baltimore, Maryland 21219
(Address of principal executive offices)
(410) 477-5000
(Registrants telephone number)
Not Applicable
(Former name, former address and former fiscal year, if
changed since last report)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of
1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting
company in Rule 12b-2 of the Exchange Act (check one).
Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
¨ (Do not check if a smaller reporting company)
Smaller reporting company
x
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes ¨ No x
As of November 14, 2008, there were 2,381,258 shares of the registrants common stock outstanding.
Table of Contents
BV FINANCIAL, INC.
FORM 10-Q
Table of Contents
Page
PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements
Consolidated Statements of Financial Condition at September 30, 2008 and June 30, 2008 (unaudited)
1
Consolidated Statements of Income for the three months ended September 30, 2008 and 2007 (unaudited)
2
Consolidated Statements of Comprehensive Income for the three months ended September 30, 2008 and 2007 (unaudited)
3
Consolidated Statements of Cash Flows for the three months ended September 30, 2008 and 2007 (unaudited)
4
Notes to Unaudited Consolidated Financial Statements
5
Item 2.
Managements Discussion and Analysis of Financial Condition and Results of Operations
11
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
19
Item 4.
Controls and Procedures
19
PART II. OTHER INFORMATION
Item 1.
Legal Proceedings
20
Item 1A.
Risk Factors
20
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
20
Item 3.
Defaults upon Senior Securities
21
Item 4.
Submission of Matters to a Vote of Security Holders
21
Item 5.
Other Information
21
Item 6.
Exhibits
21
SIGNATURES
22
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Table of Contents
PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements
BV FINANCIAL, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
(Unaudited)
September 30,
2008
June 30,
2008
(Dollars in thousands, except
per share data)
A SSETS
Cash
$
1,488
$
1,753
Federal funds sold
1,225
6,529
Cash and Cash Equivalents
2,713
8,282
Interest bearing time deposits in other banks
230
580
Securities trading
2,071
Securities available for sale
6,164
8,838
Securities held to maturity
9,483
9,788
Loans receivable, net of allowance for loan losses September 30, 2008 - $709; June 30, 2008 - $709
126,919
124,843
Premises and equipment, net
3,089
3,117
Federal Home Loan Bank of Atlanta stock, at cost
879
654
Investment in life insurance
2,072
2,054
Accrued interest receivable
668
670
Goodwill
3,940
3,940
Other intangible assets, net
361
390
Other assets
959
869
Total Assets
$
159,548
$
164,025
L IABILITIES AND S TOCKHOLDERS E QUITY
L IABILITIES
Noninterest bearing deposits
$
5,489
$
6,040
Interest bearing deposits
122,344
130,992
Total deposits
127,833
137,032
Federal Home Loan Bank advances
12,500
7,500
Official checks
1,074
657
Advance payments by borrowers for taxes and insurance
572
1,187
Other liabilities
1,049
1,304
Total Liabilities
$
143,028
$
147,680
C OMMITMENTS AND C ONTINGENCIES
S TOCKHOLDERS E QUITY
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued or outstanding
Common stock, $0.01 par value; 9,000,000 shares authorized; 2,645,000 shares issued; 2,381,258 and 2,381,258 shares outstanding as of
September 30, 2008 and June 30, 2008, respectively
26
26
Paid-in capital
11,127
11,123
Unearned employee stock ownership plan shares
(739
)
(756
)
Treasury stock, at cost; 263,742 shares and 263,742 shares as of September 30, 2008 and June 30, 2008, respectively
(2,120
)
(2,140
)
Retained earnings
8,325
8,129
Accumulated other comprehensive loss
(99
)
(37
)
Total Stockholders Equity
16,520
16,345
Total Liabilities and Stockholders Equity
$
159,548
$
164,025
See Notes to Unaudited Consolidated Financial Statements.
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BV FINANCIAL, INC. AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
Three Months Ended
September 30,
2008
2007
(Dollars in thousands, except
per share data)
I NTEREST I NCOME
Loans, including fees
$
1,990
$
1,880
Investment securities taxable
228
86
Other
13
223
Total Interest Income
2,231
2,189
I NTEREST E XPENSE
Deposits
974
1,079
Federal Home Loan Bank advances
109
194
Total Interest Expense
1,083
1,273
Net Interest Income
1,148
916
P ROVISION FOR L OAN L OSSES
20
Net Interest Income after Provision for Loan Losses
1,148
896
N ONINTEREST I NCOME
Service fees on deposits
29
31
Service fees on loans
8
8
Income from investment in life insurance
18
17
Loss on securities trading
(226
)
Termination of split-dollar life insurance liability
240
Other income
27
16
Total Noninterest Income
96
72
N ONINTEREST E XPENSES
Compensation and related expenses
531
536
Occupancy
62
55
Data processing
95
75
Telephone and postage
18
17
Advertising
28
30
Professional fees
57
61
Equipment
42
42
Amortization of intangible assets
29
21
Other
141
92
Total Noninterest Expenses
1,003
929
Income before Income Taxes (Benefit)
241
39
Provision (Benefit) For Income Taxes
(3
)
17
Net Income
$
244
$
22
B ASIC AND D ILUTED E ARNINGS P ER S HARE
$
0.11
$
0.01
D IVIDENDS D ECLARED P ER S HARE
$
0.05
$
0.05
See Notes to Unaudited Consolidated Financial Statements.
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BV FINANCIAL, INC. AND SUBSIDIARY
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months
Ended
September 30,
2008
2007
(In thousands)
Net Income
$
244
$
22
Unrealized net holding gains (losses) on available-for-sale securities, net of taxes of $(41) and $2
(62
)
3
Comprehensive Income
$
182
$
25
See Notes to Unaudited Consolidated Financial Statements.
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BV FINANCIAL, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
September 30,
2008
2007
(In thousands)
Cash Flows from Operating Activities
Net income
$
244
$
22
Adjustments to reconcile net income to net cash from operating activities:
Net amortization of discounts and premiums
7
Provision for loan losses
20
Net change in securities trading
476
Amortization of deferred loan fees/costs
30
15
Provision for depreciation
42
39
Amortization of intangible assets
29
21
Increase in cash surrender value of life insurance
(18
)
(17
)
Stock-based compensation expense
41
55
Termination of split-dollar life insurance liability
(240
)
Decrease (increase) in other assets
19
(628
)
Increase (decrease) in other liabilities
(15
)
149
Net Cash Provided by (Used in) Operating Activities
615
(324
)
Cash Flows from Investing Activities
Net decrease (increase) in interest bearing deposits
350
(620
)
Purchases of securities available for sale
(39
)
Proceeds from maturity of securities held to maturity
500
Principal collected on mortgage backed securities
323
22
Net increase in loans
(2,174
)
(4,020
)
Purchase of premises and equipment
(13
)
(100
)
Purchase of Federal Home Loan Bank stock
(225
)
Proceeds from the sale of Federal Home Loan Bank stock
248
Net cash received in branch acquisition
46,913
Net Cash Provided by (Used in) Investing Activities
(1,739
)
42,904
Cash Flows from Financing Activities
Increase (decrease) in official checks
417
(490
)
Net decrease in deposits
(9,199
)
(5,708
)
Decrease in advance payments by borrowers for taxes and insurance
(615
)
(605
)
Advances from Federal Home Loan Bank
7,500
7,500
Repayment of advances from Federal Home Loan Bank
(2,500
)
(13,000
)
Cash dividends paid
(48
)
(52
)
Purchases of stock for treasury
(634
)
Net Cash Used In Financing Activities
(4,445
)
(12,989
)
Net Increase (Decrease) in Cash and Cash Equivalents
(5,569
)
29,591
Cash and Cash Equivalents Beginning
8,282
5,357
Cash and Cash Equivalents Ending
$
2,713
$
34,948
Supplementary Cash Flows Information
Interest paid
$
1,086
$
1,062
Income taxes paid
$
$
Net loans transferred to repossessed assets
$
102
$
See Notes to Unaudited Consolidated Financial Statements.
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BV FINANCIAL, INC. AND SUBSIDIARY
Notes to Unaudited Consolidated Financial Statements
September 30, 2008
(1) Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions for Form 10-Q and, therefore, do not
include all disclosures necessary for a complete presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. However, all adjustments that are, in the opinion of management,
necessary for the fair presentation of the interim financial statements have been included. Such adjustments were of a normal recurring nature. The results of operations for the period ended September 30, 2008 are not necessarily indicative of
the results that may be expected for the entire year. These unaudited consolidated financial statements should be read in conjunction with BV Financial, Inc.s (the Company or BV Financial) Annual Report on Form 10-K for
the year ended June 30, 2008.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company, Bay-Vanguard Federal Savings Bank (the Bank or Bay-Vanguard Federal) and its wholly-owned subsidiary, Housing Recovery
Corporation. All intercompany balances and transactions have been eliminated in consolidation.
Reclassification
Certain prior year amounts have been reclassified to conform with the current years presentation. Such reclassifications had no effect on net
income.
(2) Earnings Per Share
Basic
earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the appropriate period. Unearned shares under the Bay-Vanguard Federal Savings Bank Employee Stock Ownership Plan
(ESOP) are not included in outstanding shares. Diluted earnings per share is computed by dividing net income by the weighted average shares outstanding as adjusted for the dilutive effect of stock options and unvested stock awards based
on the treasury stock method. As of September 30, 2008 and 2007, the Company had 21,265 and 29,733 shares of unvested restricted stock, respectively, and 111,456 shares and 111,456 shares of unexercised stock options, respectively,
none of which were dilutive.
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Information related to the calculation of earnings per share is summarized for the three months ended
September 30, 2008 and 2007 as follows:
Three Months Ended September 30,
2008
2007
Basic
Diluted
Basic
Diluted
(In thousands, except per share data)
Net income
$
244
$
244
$
22
$
22
Weighted average common shares outstanding
2,315
2,315
2,356
2,356
Dilutive securities:
Restricted stock
Stock options
Adjusted weighted average shares
2,315
2,315
2,356
2,356
Per share amount
$
0.11
$
0.11
$
0.01
$
0.01
(3) Equity Incentive Plan
On November 8, 2005, stockholders approved the BV Financial, Inc. 2005 Equity Compensation Plan (the Plan) that enabled the Company to grant up to 181,447 stock options and restricted stock awards to
employees and directors. On November 14, 2005, the Company granted stock options covering 111,456 shares of common stock to certain employees and directors of the Company, of which 43,466 and 22,286 were exercisable at September 30,
2008 and September 30, 2007, respectively. The options were granted at the then fair market value of the stock of $8.94, vest over five years and expire ten years from the date of grant.
Stock options had no intrinsic value at September 30, 2008. The Company recognized $12,000 and $19,000 of expense relating to the granting of stock
options during the three months ended September 30, 2008 and 2007, respectively. There has been no activity in the stock options to date.
On November 14, 2005, the Company granted 44,577 shares of restricted stock to certain employees and directors of the Company. The Company purchased shares in the open market during 2006 to fund this plan. The awards vest over a
five-year period and, therefore, the cost of such awards is accrued ratably over a five-year period as compensation expense. The Company recognized $20,000 and $20,000 of expense relating to the grant of shares of restricted stock during the three
months ended September 30, 2008 and 2007, respectively. Shares vesting were 8,468 and 8,915 for the periods ended September 30, 2008 and 2007, respectively. Unvested shares were 21,265 at September 30, 2008.
At September 30, 2008, there was $240,000 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted
under the Plan. The cost is expected to be recognized over a weighted average period of 2.1 years.
(4) Recent Accounting Pronouncements
In December 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 141 (R) Business Combinations
(SFAS No. 141 (R)). This Statement establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any
noncontrolling interests in the acquiree. The
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Statement also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose
to enable users of the financial statements to evaluate the nature and financial effects of the business combination. The guidance will become effective as of the beginning of a companys fiscal year beginning after December 15, 2008. This
new pronouncement will impact the Companys accounting for business combinations completed beginning July 1, 2009.
In December
2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 160 Noncontrolling Interests in Consolidated Financial Statementsan amendment of ARB No. 51 (SFAS No. 160). This Statement
establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. The guidance will become effective as of the beginning of the Companys fiscal year beginning
July 1, 2009 and is not expected to have a significant impact on our financial statements.
Staff Accounting Bulletin No. 110
(SAB 110) amends and replaces Question 6 of Section D.2 of Topic 14, Share-Based Payment, of the Staff Accounting Bulletin series. Question 6 of Section D.2 of Topic 14 expresses the views of the staff regarding the use of the
simplified method in developing an estimate of expected term of plain vanilla share options and allows usage of the simplified method for share option grants prior to December 31, 2007. SAB 110 allows public
companies which do not have historically sufficient experience to provide a reasonable estimate to continue use of the simplified method for estimating the expected term of plain vanilla share option grants after
December 31, 2007. SAB 110 was effective January 1, 2008 and did not have a significant impact on the Companys financial statements.
In September 2006, the FASB issued FASB Statement No. 157, Fair Value Measurements, which defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about
fair value measurements. FASB Statement No. 157 applies to other accounting pronouncements that require or permit fair value measurements. The new guidance is effective beginning July 1, 2008 and did not have a significant impact on the
Companys financial statements.
In February 2008, the FASB issued FASB Staff Position (FSP) 157-2, Effective Date of FASB
Statement No. 157, that permits a one-year deferral in applying the measurement provisions of Statement No. 157 to non-financial assets and non-financial liabilities (non-financial items) that are not recognized or disclosed at fair
value in an entitys financial statements on a recurring basis (at least annually). Therefore, if the change in fair value of a non-financial item is not required to be recognized or disclosed in the financial statements on an annual basis or
more frequently, the effective date of application of Statement 157 to that item is deferred until fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. The Company is currently evaluating the impact, if
any, of the adoption of FSP 157-2 on its financial statements.
In October 2008, the FASB issued FASB Staff Position (FSP) 157-3,
Determining the Fair Value of a Financial Asset When The Market for That Asset is Not Active (FSP 157-3), to clarify the application of the provisions of SFAS 157 in an inactive market and how an entity would determine fair value in an
inactive market. FSP 157-3 is effective immediately and applies to our September 30, 2008 financial statements. The application of the provisions of FSP 157-3 did not materially affect our results of operations or financial condition as of and
for the period ended September 30, 2008.
In September 2006, the FASBs Emerging Issues Task Force (EITF) issued EITF Issue
No. 06-4, Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split Dollar Life Insurance Arrangements (EITF 06-4). EITF 06-4 requires the recognition of a liability related to the
postretirement benefits covered by an endorsement split-dollar life insurance arrangement. The
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consensus highlights that the employer (who is also the policyholder) has a liability for the benefit it is providing to its employee. As such, if the
policyholder has agreed to maintain the insurance policy in force for the employees benefit during his or her retirement, then the liability recognized during the employees active service period should be based on the future cost of
insurance to be incurred during the employees retirement. Alternatively, if the policyholder has agreed to provide the employee with a death benefit, then the liability for the future death benefit should be recognized by following the
guidance in SFAS No. 106 or Accounting Principles Board (APB) Opinion No. 12, as appropriate. For transition, an entity can choose to apply the guidance using either of the following approaches: (a) a change in accounting principle
through retrospective application to all periods presented or (b) a change in accounting principle through a cumulative-effect adjustment to the balance in retained earnings at the beginning of the year of adoption. The Company adopted this
EITF effective July 1, 2007 and recorded a cumulative-effect adjustment to retained earnings of $(221,000). The Bank terminated its executive and director split-dollar life insurance retirement death benefit and recognized income of $240,000 in
the quarter ended September 30, 2008.
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial
Assets and Financial Liabilities-Including an amendment of FASB Statement No. 115. SFAS No. 159 permits entities to choose to measure many financial instruments and certain other items at fair value. Unrealized gains and losses on
items for which the fair value option has been elected will be recognized in earnings at each subsequent reporting date. SFAS No. 159 was effective for the Company July 1, 2008. The Company has elected to account for the Shay AMF Ultra
Short Mortgage Fund mutual fund it holds at fair value and there was no impairment recognized with this adoption as the investment had been written down to fair value at June 30, 2008. Future gains and losses will be reflected through earnings.
In June 2007, the Emerging Issues Task Force (EITF) reached a consensus on Issue No. 06-11, Accounting for Income Tax Benefits
of Dividends on Share-Based Payment Awards (EITF 06-11). EITF 06-11 states that an entity should recognize a realized tax benefit associated with dividends on nonvested equity shares, nonvested equity share units and outstanding
equity share options charged to retained earnings as an increase in additional paid in capital. The amount recognized in additional paid in capital should be included in the pool of excess tax benefits available to absorb potential future tax
deficiencies on share-based payment awards. EITF 06-11 should be applied prospectively to income tax benefits of dividends on equity-classified share-based payment awards that are declared in fiscal years beginning after December 15, 2007.
Adoption is not expected to have a significant impact on the Companys financial statements.
In May 2008, the FASB issued SFAS
No. 162, The Hierarchy of Generally Accepted Accounting Principles. This Statement identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements. This
Statement is effective 60 days following the SECs approval of the Public Company Accounting Oversight Board amendments to AU Section 411, The Meaning of Present Fairly in Conformity with Generally Accepted Accounting
Principles. The Company is currently evaluating the potential impact the new pronouncement will have on its financial statements.
In
April 2008, the FASB issued FASB Staff Position (FSP) FAS 142-3, Determination of the Useful Life of Intangible Assets. This FSP amends the factors that should be considered in developing renewal or extension assumptions used
to determine the useful life of a recognized intangible asset under FASB Statement No. 142, Goodwill and Other Intangible Assets (SFAS 142). The intent of this FSP is to improve the consistency between the useful life of
a recognized intangible asset under SFAS 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS 141R, and other GAAP. This FSP is effective for financial statements issued for fiscal years beginning after
December 15, 2008, and interim periods within those fiscal years. Early adoption is prohibited. The Company is currently evaluating the potential impact the new pronouncement will have on its financial statements.
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In September 2008, the FASB issued FSP 133-1 and FIN 45-4, Disclosures about Credit Derivatives and
Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161 (FSP 133-1 and FIN 45-4). FSP 133-1 and FIN 45-4 amends and enhances
disclosure requirements for sellers of credit derivatives and financial guarantees. It also clarifies that the disclosure requirements of SFAS No. 161 are effective for quarterly periods beginning after November 15, 2008, and fiscal years
that include those periods. FSP 133-1 and FIN 45-4 is effective for reporting periods (annual or interim) ending after November 15, 2008. The implementation of this standard will not have a material impact on our financial position and results
of operations.
In September 2008, the FASB ratified the Emerging Issues Task Force (EITF) Issue No. 08-5, Issuers
Accounting for Liabilities Measured at Fair Value With a Third-Party Credit Enhancement (EITF 08-5). EITF 08-5 provides guidance for measuring liabilities issued with an attached third-party credit enhancement (such as a guarantee). It
clarifies that the issuer of a liability with a third-party credit enhancement should not include the effect of the credit enhancement in the fair value measurement of the liability. EITF 08-5 is effective for the first reporting period beginning
after December 15, 2008. The Company is currently evaluating the potential impact the new pronouncement will have on its financial statements.
(5)
FDIC Temporary Liquidity Guaranty Program
The FDIC has recently increased the amount of insured bank deposits to $250,000 per account.
On October 14, 2008, the FDIC insurance was also extended to unlimited coverage for non-interest bearing deposit transaction accounts, and will last through December 31, 2009 unless otherwise extended by the FDIC. Under the program,
effective December 5, 2008, insured depository institutions that have not opted out of the FDIC Temporary Liquidity Guarantee Program will be subject to a 0.10% surcharge applied to non-interest bearing transaction deposit account balances in
excess of $250,000, which surcharge will be added to the institutions existing risk-based deposit insurance assessments. The Bank is currently evaluating whether it will participate in the FDIC Temporary Liquidity Guaranty Program.
(6) Goodwill, Other Intangible Assets and Branch Acquisition
On August 24, 2007, the Bank acquired a branch office in Pasadena, Maryland from Greater Atlantic Bank. The Bank paid a premium on the net liabilities, primarily on deposits of $51.5 million assumed at closing.
The premium was comprised of goodwill totaling $3.9 million and identifiable intangibles (core deposit intangible) totaling $502,000. The goodwill is deductible for tax purposes. Core deposit intangibles are amortized on an accelerated basis over a
7-year period and goodwill is evaluated on an annual basis to determine impairment, if any. Any impairment of goodwill would be recorded against income in the period of impairment.
(7) Fair Values for Financial Instruments
In September 2006, the Financial Accounting Standards
Board issued FASB Statement No. 157, Fair Value Measurements, (SFAS 157) which defines fair value, establishes a framework for measuring fair value under Generally Accepted Accounting Principles, and expands disclosures about fair
value measurements. SFAS 157 applies to other accounting pronouncements that require or permit fair value measurements. The new guidance is effective for financial statements issued for fiscal years beginning after November 15, 2007, and for
interim periods within those fiscal years. Effective July 1, 2008, the Company adopted SFAS 157. The primary effect of SFAS 157 on the Company was to expand the required disclosures pertaining to the methods used to determine fair values.
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SFAS 157 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to
measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy under SFAS 157 are as follows:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
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.
Level 3: Prices or valuation techniques that requires inputs that are both significant to the fair
value measurement and unobservable (i.e. supported with little or no market activity).
An asset or liabilitys level within the fair
value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
For assets measured at fair
value, the fair value measurements by level within the fair value hierarchy used at September 30, 2008 are as follows:
September 30,
2008
(Level 1)
Quoted Prices
in Active
Markets for
Identical Assets
(Level 2)
Significant
Other
Observable
Inputs
(Level 3)
Significant
Other
Unobservable
Inputs
(Dollars in thousands)
Securities trading
$
2,071
$
$
2,071
$
Securities available for sale
6,164
6,164
Impaired loans
1,376
1,376
Repossessed assets
110
110
Total
$
9,721
$
$
8,235
$
1,486
The following valuation techniques were used to measure the fair value of assets in the table
above on a recurring basis as of September 30, 2008.
Securities trading The fair value of securities trading was based
on available market pricing for the security.
Securities available for sale The fair values of securities available for sale
were based on available market pricing for the securities.
Impaired Loans Loans included in the above table are those that
are accounted for under SFAS 114, Accounting by Creditors for Impairment of a Loan , in which the Company has measured impairment generally based on the fair value of the loans collateral. Fair value was determined based upon a
discounted cash flow from the expected proceeds of the underlying collateral. This asset is included as Level 3 fair value, based upon the lowest level of input that is significant to the fair value measurements. The fair value consists of the loan
balance reduced by any specific impairment reserve.
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Repossessed Assets Fair value of repossessed assets was based on the Companys
appraisal of the property. This value was determined from a current industry standard appraisal guide based on the value of similar properties adjusted for factors including condition and location of property.
The following is a reconciliation of the beginning and ending balances of recurring fair value measurements of impaired loans and other real estate owned
using significant observable (Level 3) inputs.
(dollars in thousands)
Impaired
Loans
Repossessed Assets
Beginning balance at June 30, 2008
$
2,379
$
42
Loans added/Acquisitions
54
102
Payments and other credits
(1,161
)
Sales
(34
)
Specific allowance
(104
)
Balance at September 30, 2008
$
1,376
$
110
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial
Assets and Financial LiabilitiesIncluding an amendment of FASB Statement No. 115. SFAS No. 159 permits entities to choose to measure many financial instruments and certain other items at fair value. Unrealized gains and losses
on items for which the fair value option has been elected will be recognized in earnings at each subsequent reporting date. SFAS No. 159 was effective for the Company July 1, 2008. The Company elected to account for the Shay AMF Ultra
Short Mortgage Fund mutual fund it holds at fair value and recognized a trading loss of $226,000 during the quarter ended September 30, 2008.
Item 2.
Managements Discussion and Analysis of Financial Condition and Results of Operations
Managements discussion and analysis of the financial condition and results of operations is intended to assist in understanding the financial
condition and results of operations of BV Financial. The information contained in this section should be read in conjunction with the Unaudited Consolidated Financial Statements and footnotes appearing in Part I, Item 1 of this document.
Forward-Looking Statements
This
quarterly report contains forward-looking statements that are based on assumptions and may describe future plans, strategies and expectations of Bay-Vanguard, M.H.C., BV Financial and Bay-Vanguard Federal. These forward-looking statements are
generally identified by use of the words believe, expect, intend, anticipate, estimate, project or similar expressions.
Bay-Vanguard, M.H.C., BV Financial and Bay-Vanguard Federals ability to predict results or the actual effect of future plans or strategies is
inherently uncertain. Factors which could have a material adverse effect on the operations of BV Financial and its subsidiary include, but are not limited to, changes in interest rates, national and regional economic conditions, legislative and
regulatory changes, monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality and composition of the loan or investment portfolios, demand for loan products, deposit
flows, competition, demand for financial services in BV Financial and Bay-Vanguard Federals market area, changes in real estate market values in BV Financial and Bay-Vanguard Federals market area, and changes in relevant accounting
principles and guidelines.
These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance
should not be placed on such statements. Except as required by applicable law or regulation, BV Financial does not undertake, and specifically disclaims any obligation, to release publicly
11
Table of Contents
the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to
reflect the occurrence of anticipated or unanticipated events.
General
BV Financial (the Company) was organized as a federally chartered corporation at the direction of Bay-Vanguard Federal Savings Bank (the
Bank or Bay-Vanguard Federal) in January 2005 to become the mid-tier stock holding company for Bay-Vanguard Federal upon the completion of its reorganization into the mutual holding company form of organization. Pursuant to
the Plan of Reorganization, the Bank converted to stock form with all of its stock owned by the Company and organized Bay-Vanguard, M.H.C. (the M.H.C.) as a federally chartered mutual holding company that owned 55% of the common stock of
the Company.
Bay-Vanguard Federal 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 using such funds to originate one-to four-family real estate, mobile home, construction,
multi-family and commercial real estate and consumer loans.
The Banks savings accounts are insured up to the applicable legal limits
by the Federal Deposit Insurance Corporations Deposit Insurance Fund. Bay-Vanguard Federal is a member of the Federal Home Loan Bank System.
The Bank has a wholly-owned subsidiary, Housing Recovery Corporation (HRC). HRCs primary business is holding real estate and other assets acquired by the Bank through foreclosure or repossession.
Critical Accounting Policies
The Company considers
accounting policies involving significant judgments and assumptions by management that have, or could have, a material impact on the carrying value of certain assets and liabilities or income and expense to be critical accounting policies. The
Company considers the allowance for loan losses, the determination of other than temporary impairment of investments, intangible asset impairment and the deferred tax asset valuation allowance to be critical accounting policies.
Allowance for Loan Losses. The allowance for loan losses is the amount estimated by management as necessary to cover losses inherent in the
loan portfolio at the balance sheet date. The allowance is established through the provision for loan losses, which is charged to income. Determining the amount of the allowance for loan losses necessarily involves a high degree of judgment. Among
the material estimates required to establish the allowance are: loss exposure at default; the amount and timing of future cash flows on impaired loans; the value of collateral; and the determination of loss factors to be applied to the various
elements of the portfolio. All of these estimates are susceptible to significant change. However, historically, the Companys estimates and assumptions have provided results that did not differ materially from actual results.
Management reviews the level of the allowance on a quarterly basis, at a minimum, and establishes the provision for loan losses based on an evaluation of
the portfolio, past loss experience, economic conditions and business conditions affecting its primary market area, credit quality trends, collateral value, loan volumes and concentrations, seasoning of the loan portfolio, the duration of the
12
Table of Contents
current business cycle, bank regulatory examination results and other factors related to the collectibility of the loan portfolio. Although the Company
believes that it uses the best information available to establish the allowance for loan losses, future additions to the allowance may be necessary if certain future events occur that cause actual results to differ from the assumptions used in
making the evaluation. For example, a downturn in the local economy could cause increases in nonperforming loans. Additionally, a decline in real estate values could cause some of the Companys loans to become inadequately collateralized. In
either case, this may require the Company to increase its provisions for loan losses, which would negatively impact earnings. Further, the Office of Thrift Supervision, as an integral part of its examination process, periodically reviews the
Companys allowance for loan losses. Such agency may require the Company to recognize adjustments to the allowance based on its judgments about information available to it at the time of its examination. An increase to the allowance required to
be made by the Office of Thrift Supervision would negatively impact the Companys earnings. Additionally, a large loss could deplete the allowance and require increased provisions to replenish the allowance, which would negatively affect
earnings.
Other-than-Temporary Impairment of Investment Securities. There are certain securities in an unrealized loss
position that management believes at this time are temporarily impaired. If the fair value of these securities does not recover in a reasonable period of time or management can no longer demonstrate the ability and intent to hold them until
recovery, a write-down through the consolidated statements of income would be necessary.
Management evaluates securities for
other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less
than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in
fair value or until maturity. In analyzing the issuers financial condition, management considers industry analysts reports, financial performance and projected target prices of investment analysts.
Intangible Asset Impairment. The Company has goodwill and core deposit intangible assets arising from a branch purchase. The goodwill is
evaluated regularly for impairment while the core deposit intangible is being amortized over seven years.
Deferred Tax Asset
Valuation Allowance. Management determined that no valuation allowance was warranted based on a history of taxable income, the expectation of taxable income going forward and the availability of tax planning strategies to generate future
income, including capital gains if necessary to offset capital losses on its mutual fund security.
Comparison of Financial Condition at
September 30, 2008 and June 30, 2008
Total assets decreased $4.5 million, or 2.7%, to $159.5 million at September 30,
2008 from $164.0 million at June 30, 2008 primarily due to a $5.6 million decrease in cash and cash equivalents.
Loans receivable
increased $2.1 million, or 1.7%, to $126.9 million at September 30, 2008 from $124.8 million at June 30, 2008, primarily due to a $1.9 million increase in residential real estate loans, and a $200,000 increase in non-residential and
construction loans. Non-residential and construction loans increased due to the Banks focus on shorter-term higher-rate loan products. Residential loans increased due to competitive rates and marketing efforts in our local communities.
Securities decreased $908,000, or 4.9%, from $18.6 million at June 30, 2008 primarily due to the redemption of $250,000 of the AMF
Ultra Short Mortgage mutual fund, a trading loss of $226,000 on the same mutual fund, and principal payments of $300,000 on mortgage pass-through securities. Securities trading are carried at fair value with gains and losses being reflected through
earnings.
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Table of Contents
Cash and cash equivalents decreased $5.6 million, or 67.2%, from $8.3 million at June 30, 2008 to
$2.7 million at September 30, 2008, to fund the $2.1 million increase in loans and partially fund the $9.2 million decrease in deposits.
Deposits decreased $9.2 million, or 6.7%, to $127.8 million at September 30, 2008, primarily due to a $7.7 million decrease in demand deposit accounts and an $800,000 decrease in certificates of deposit. Federal Home Loan Bank advances
increased $5.0 million, or 66.7%, to $12.5 million at September 30, 2008 due to loan growth and a decrease in deposits.
Total equity
increased $175,000 , or 1.1%, to $16.5 million at September 30, 2008 primarily as a result of net income of $244,000 for the period, offset by the payment of dividends.
Results of Operations for the Three Months Ended September 30, 2008 and 2007
General. Net income increased $222,000, or 10.1%, to a net income of $244,000 for the three months ended September 30, 2008 compared to the same period in the prior year due primarily to a $232,000 increase in net
interest income and a $24,000 increase in noninterest income, offset by a $74,000 increase in noninterest expenses.
Net Interest
Income. The following table summarizes interest income and expense for the three months ended September 30, 2008 and 2007.
Three Months
Ended September 30,
2008
2007
% change
(Dollars in thousands)
Interest Income:
Loans, including fees
$
1,990
$
1,880
5.9
%
Investment securities taxable
228
86
165.1
Other
13
223
(94.2
)
Total interest income
2,231
2,189
1.9
Interest Expense:
Deposits
974
1,079
(9.7
)
Federal Home Loan Bank advances
109
194
(43.8
)
Total interest expense
1,083
1,273
(14.9
)
Net interest income
$
1,148
$
916
25.3
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The following table summarizes average balances and average yield and costs for the three months ended
September 30, 2008 and 2007.
Three Months Ended September 30,
2008
2007
Average
Balance
Yield/
Cost
Average
Balance
Yield/
Cost
(Dollars in thousands)
Loans
$
126,932
6.27
%
$
118,612
6.34
%
Investment securities
17,954
5.08
5,830
5.97
Interest-bearing time deposits in other banks
217
3.69
322
4.97
Federal funds sold
1,729
2.54
15,396
5.66
Interest-bearing deposits
123,058
3.51
110,085
3.92
Federal Home Loan Bank advances
12,500
3.49
15,190
5.11
Net interest income for the three months ended September 30, 2008 increased $232,000, or
25.3%, compared to the same period last year, as a result of an increase in investment securities and the loan portfolio and a decrease in interest expense due to a decrease in the rate paid on interest bearing deposits and the rate charged on the
FHLB advances. Total interest income increased as a result of the growth in average interest-earning assets to $146.8 million from $140.2 million. The growth in average interest-earning assets was mainly due to an increase in investment securities,
attributable to the assumption of deposits in the branch acquisition. Total interest expense decreased as a result of a decrease in the average rate paid on deposits offset by an increase in the average balance of deposits to $123.0 million,
compared to average deposits of $110.0 million in 2007. Interest expense on Federal Home Loan Bank advances decreased due principally to a lower average rate paid on these advances.
Provision for Loan Losses. The following table summarizes the activity in the allowance for loan losses for the three months ended
September 30, 2008 and 2007.
Three Months
Ended September 30,
2008
2007
(In thousands)
Allowance at beginning of period
$
709
$
402
Provision for loan losses
20
Allowance at end of period
$
709
$
422
The provision for loan losses decreased from $20,000 for the three months ended
September 30, 2007 to zero for the three months ended September 30, 2008. The decrease in the provision for loan losses was due to the absence of any charge-offs in the period and to a decrease in nonperforming assets, offset by loan
growth.
15
Table of Contents
The following table provides information with respect to our nonperforming assets at the dates indicated.
The Company did not have any accruing loans past due 90 days or more or foreclosed real estate at the dates presented.
At September 30,
2008
At June 30,
2008
(Dollars in thousands)
Nonaccruing loans:
Construction
$
1,016
$
2,623
One- to four-family
176
Other consumer
21
62
Total
1,213
2,685
Accruing loans past due 90 days or more
Troubled debt restructuring (1)
46
Foreclosed real estate
Other repossessed assets
110
41
Total non-performing assets
$
1,323
$
2,772
Total non-performing loans to total loans
0.96
%
2.10
%
Total non-performing loans to total assets
0.76
1.64
Total non-performing assets to total assets
0.83
1.69
(1)
As defined in Statement of Financial Accounting Standards No. 15.
Nonperforming assets decreased $1.4 million, or 52.3%, primarily due to a decrease in nonaccruing construction loans. The Bank refinanced one of the nonaccruing construction loans splitting the original loan amount
between the two primary borrowers. Two of the properties were only 85% complete. The borrower who took this part of the refinancing provided additional properties for collateral so that there would be enough equity to finish the remaining 15% of the
project. Once complete, the two units will be rented to improve cash flows for repayment. The borrower who refinanced the other properties is repaying a term loan that is secured by the two completed units, which are rented and producing income. The
borrower is adding personal cash to help make the payments. Both of the refinanced loans were granted at the current market rates available and at the same risk and compliance as other such loans available. No concessions were made to the borrowers
that otherwise would be considered.
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Table of Contents
Noninterest Income. The following table summarizes noninterest income for the three months
ended September 30, 2008 and 2007.
Three Months
Ended September 30,
2008
2007
% change
(Dollars in thousands)
Service fees on deposits
$
29
$
31
(6.5
)%
Service fees on loans
8
8
Income from investment in life insurance policy
18
17
5.9
Loss on securities trading
(226
)
N/A
Termination of split-dollar life insurance liability
240
Other income
27
16
68.8
Total
$
96
$
72
33.3
The increase in noninterest income was due to $240,000 of income resulting from the termination of
$3.9 million in split-dollar life insurance policies at September 30, 2008, offset by a loss on trading securities of $226,000 associated with a decline in the Shay AMF Ultra Short Mortgage mutual fund.
Noninterest Expenses. The following table summarizes noninterest expenses for the three months ended September 30, 2008 and 2007.
Three Months
Ended September 30,
2008
2007
% change
(Dollars in thousands)
Compensation and related expenses
$
531
$
536
(0.9
)%
Occupancy
62
55
12.7
Data processing
95
75
26.7
Telephone and postage
18
17
5.9
Advertising
28
30
(6.7
)
Professional fees
57
61
(6.6
)
Equipment
42
42
Amortization of intangible assets
29
21
38.1
Other
141
92
24.8
Total
$
1,003
$
929
8.0
Efficiency ratio (1)
80.6
%
94.0
%
(1)
Computed as noninterest expenses divided by the sum of net interest income and other income.
Total noninterest expenses increased $74,000, or 8.0%. Compensation and related expenses decreased $5,000 or 0.9%, primarily as a result of decreases in
bonuses paid. Occupancy expenses increased primarily due to increase in rental expense related to the new branch. Other expenses increased $49,000, or 24.8%, as a result of increases in office supplies, information technology expenses, bank charges
and insurance mainly as a result of the acquisition of a new branch. Data processing costs increased $20,000, or 26.7%, due to additional charges related to the branch acquisition.
The Company anticipates a significant increase in the cost of federal deposit insurance from current levels of five to seven basis points. The FDIC has
recently proposed to increase the assessment rate for the most highly rated institutions to between 12 and 14 basis points for the first quarter of 2009 and to between 10 and 14 basis points thereafter. Assessment rates could be further increased if
an institutions FHLB advances exceed 15% of deposits. The FDIC has also established a program under which it fully guarantees all non-interest bearing transaction accounts and senior unsecured debt of a bank or its holding company.
Institutions that do not opt out of the program by December 5, 2008 will be assessed ten basis points for non-interest bearing transaction account balances in excess of $250,000 and 75 basis points of the amount of debt issued.
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Table of Contents
Income Taxes. Provision (benefit) for income taxes decreased $20,000, or 117.6%, from an
expense of $17,000 for the three months ended September 30, 2007 to a tax benefit of $3,000 for the three months ended September 30, 2008. The effective tax rate was 43.6% for the three months ended September 30, 2007 compared to
(1.2)% for the three months ended September 30, 2008. The primary reason for the significant change in the effective tax rate for the period ended September 30, 2008 is due to the tax effects of terminating our split-dollar life insurance
plan.
Liquidity and Capital Resources
Liquidity is the ability to meet current and future financial obligations of a short-term nature. Our primary sources of funds consist of deposit inflows, loan repayments and maturities and sales of investment securities. While maturities
and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition.
We regularly adjust our investments in liquid assets based upon our assessment of (1) expected loan demand, (2) expected deposit flows,
(3) yields available on interest-earning deposits and securities and (4) the objectives of our asset/liability management program. Excess liquid assets are invested generally in interest-earning deposits and short- and intermediate-term
U.S. Treasury and federal agency securities.
Our most liquid assets are cash and cash equivalents and interest-bearing deposits.
The levels of these assets depend on our operating, financing, lending and investing activities during any given period. At September 30, 2008, cash and cash equivalents totaled $2.7 million. Securities classified as trading and
available-for-sale, which provide additional sources of liquidity, totaled $2.1 million and $6.1 million, respectively, at September 30, 2008. In addition, at September 30, 2008, we had the ability to borrow a total of approximately $31.9
million from the Federal Home Loan Bank of Atlanta. On that date, we had advances outstanding of $12.5 million. Additionally, at September 30, 2008, the Bank had a $2.0 million unsecured demand line of credit facility with M&T Bank, which
had no outstanding balance.
At September 30, 2008, we had $1.9 million in loan commitments outstanding, which included
$440,000 in commitments to purchase and originate mobile home loans. In addition to commitments to originate loans, we had $2.6 million in unused lines of credit and $1.9 million of construction loans in process. Certificates of deposit due within
one year of September 30, 2008 totaled $31.6 million, or 24.7% of total deposits. If these deposits do not remain with us, we will be required to seek other sources of funds, including other certificates of deposit and lines of credit.
Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the certificates of deposit due on or before September 30, 2008. We believe, however, based on past experience,
that a significant portion of our certificates of deposit will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.
Our primary investing activities are the origination of loans and the purchase of securities. Our primary financing activities consist of activity in deposit accounts. Deposit flows are affected by the overall level
of interest rates, the interest rates and products offered by us and our local competitors and other factors. We generally manage the pricing of our deposits to be competitive and to increase core deposits. Occasionally, we offer promotional rates
on certain deposit products to attract deposits.
We are subject to various regulatory capital requirements administered by the Office of
Thrift Supervision, including risk-based capital measures. The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet items to
broad risk categories. At September 30, 2008, we exceeded all of our regulatory capital requirements. We are considered well capitalized under regulatory guidelines.
18
Table of Contents
Off-Balance Sheet Arrangements
In the normal course of operations, we engage in a variety of financial transactions that, in accordance with generally accepted accounting principles, are not recorded in our financial statements. These transactions
involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are used primarily to manage customers requests for funding and take the form of loan commitments and lines of credit described in the
liquidity and capital resources section.
For the three months ended September 30, 2008, we did not engage in any off-balance sheet
transactions reasonably likely to have a material effect on our financial condition, results of operations or cash flows.
Item 3.
Quantitative and Qualitative Disclosures about Market Risk.
Not applicable as the Company is a smaller reporting company.
Item 4.
Controls and Procedures
The Companys
management, including the Companys principal executive officer and principal financial officer, have evaluated the effectiveness of the Companys disclosure controls and procedures, as such term is defined in Rule 13a-15(e)
promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act). Based upon their evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by
this report, the Companys disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities
and Exchange Commission (the SEC) (1) is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms, and (2) is accumulated and communicated to the Companys
management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. There have been no changes in the Companys internal control over financial reporting
identified in connection with the evaluation required by Rule 13(a)-15(e) that occurred during the Companys last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Companys internal control
over financial reporting.
19
Table of Contents
Part II. OTHER INFORMATION
Item 1.
Legal Proceedings
BV Financial is not involved in
any pending legal proceedings. Bay-Vanguard Federal is not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. Such routine legal proceedings, in the aggregate, are believed by
management to be immaterial to its financial condition and results of operations.
Item 1A.
Risk Factors
There are no material changes from
the risk factors set forth under Part I, Item 1A. Risk Factors in the Companys Annual Report on Form 10-K for the year ended June 30, 2008, which could materially and adversely affect the Companys business,
financial condition or future results. The risks described in the Companys Annual Report on Form 10-K are not the only risks that the Company faces. Additional risks and uncertainties not currently known to the Company or that the Company
currently deems to be immaterial also may materially adversely affect the Companys business, financial condition and/or operating results.
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
The following table sets forth information regarding the Companys repurchases of its common stock during the quarter ended September 30, 2008.
Period
(a)
Total
Number of
Shares
Purchased (1)
(b)
Average
Price Paid
per Share
(c)
Total Number Of
Shares
Purchased
As Part of
Publicly
Announced Plans
or
Programs
(d)
Maximum
Number of Shares
that May Yet Be
Purchased
Under
the Plans or
Programs
July 1, 2008 to July 31, 2008
$
47,830
August 1, 2008 to August 31, 2008
47,830
September 1, 2008 to September 30, 2008
47,830
Total
$
(1)
On March 20, 2008, BV Financial announced the adoption of a stock repurchase program to acquire up to 97,830 shares, or 10%, of BV Financials outstanding shares of common
stock, excluding shares held by Bay-Vanguard M.H.C. The program will continue until it is completed or terminated by the Board of Directors.
20
Table of Contents
Item 3.
Defaults upon Senior Securities
Not Applicable.
Item 4.
Submission of Matters to a Vote of Security Holders
Not Applicable.
Item 5.
Other Information
None.
Item 6.
Exhibits
3.1
Charter of BV Financial, Inc. (1)
3.2
Bylaws of BV Financial, Inc. (1)
4.0
Stock Certificate of BV Financial, Inc. (1)
31.1
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.0
Section 1350 Certification
(1)
Incorporated by reference into this document from the Exhibits filed with the Securities and Exchange Commission on the Registration Statement on Form SB-2, and any amendments
thereto, Registration No. 333-119083.
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Table of Contents
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
BV FINANCIAL, INC.
Dated: November 14, 2008
By:
/s/ Carolyn M. Mroz
Carolyn M. Mroz
President and Chief Executive Officer
(principal executive officer)
Dated: November 14, 2008
By:
/s/ Edmund T. Leonard
Edmund T. Leonard
Chairman of the Board and Chief Financial Officer
(principal financial and accounting officer)
22
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.