VWF Bancorp, Inc. reported its financial results for the three months ended September 30, 2024, showing a net loss of $632,718, an increase of 44.2% compared to a net loss of $438,859 for the same period in 2023. This increase in net loss was primarily attributed to a rise in noninterest expenses, which increased by $842,000 (54.0%) to $2.4 million, partially offset by a $539,000 increase in pre-provision net interest income.

Total interest income for the quarter was $4.1 million, a significant increase of 99.1% from $2.1 million in the prior year. This growth was driven by a $1.2 million increase in interest on investment securities and an $860,000 increase in interest on loans. The average yield on loans rose to 5.27%, up 117 basis points from the previous year, while the average yield on investment securities increased to 6.11%.

Total assets as of September 30, 2024, were $318.7 million, reflecting a 2.4% increase from $311.3 million at June 30, 2024. Cash and due from banks decreased significantly by 87.1% to $4.1 million, primarily due to the payoff of the overnight Cash Management Advance line with the Federal Home Loan Bank (FHLB). In contrast, total deposits increased by 17.1% to $245.1 million, with core deposits rising by 15.1% to $144.1 million.

The company’s total borrowings decreased to $32.7 million from $62 million in the previous quarter, while the available borrowing capacity with the FHLB increased to $33.9 million. Shareholders' equity rose slightly to $36.8 million, primarily due to unrealized gains on securities, despite the net loss for the period.

VWF Bancorp's loan portfolio also saw growth, with net loans increasing by 6.1% to $134.1 million. Loan originations totaled $6.1 million, including $3.9 million in residential real estate loans. However, total past due loans increased to $2.9 million, compared to $760,000 in the same period last year.

The company continues to focus on enhancing its balance of variable rate investments financed by fixed rate deposits, aiming for a more balanced interest rate risk profile. Despite the challenges, VWF Bancorp remains categorized as well capitalized under regulatory standards, with capital ratios exceeding required thresholds. However, management acknowledged material weaknesses in internal controls over financial reporting, which they are actively addressing.