The Victory Bancorp, Inc. 2025 First Quarter Earnings

Rhea-AI Summary

Victory Bancorp (OTCQX: VTYB) reported strong Q1 2025 financial results, with net income reaching $543 thousand, more than doubling from $230 thousand in Q1 2024. The bank demonstrated robust growth with:

• Total deposits increased to $416.97 million, up from $381.78 million year-over-year
• Book value per share rose to $15.25
• Stockholders' equity improved to $30.15 million

Credit quality metrics showed exceptional performance with nonperforming assets at 0.00% and net charge-offs at 0.01%. The bank maintained a consistent quarterly cash dividend of $0.065 per share. Victory Bank's expansion into Horsham and zero borrowings as of March 2025 reflect its strong financial position and growth strategy. The bank continues to focus on serving small and mid-sized businesses across Montgomery and Berks Counties through its four office locations.

Positive

• Net income more than doubled YoY to $543K in Q1 2025 from $230K in Q1 2024
• Total deposits grew to $417M, up $35.2M from Q1 2024
• Eliminated all borrowings (from $25.7M year ago) through deposit growth
• Book value per share increased to $15.25 from $14.84 in Q4 2024
• Nonperforming assets improved to 0.00% from 0.17% year ago
• Net charge-offs improved to 0.01% from 0.03% year ago
• Stockholders' equity increased to $30.15M from $27.94M in Q1 2024

Negative

• Return on average equity declined to 7.30% from 7.58% in Q4 2024
• Interest income decreased to $6.93M from $7.28M in Q4 2024
• Net interest income declined to $3.34M from $3.40M in Q4 2024
• Other income dropped to $190K from $299K in Q4 2024

LIMERICK, Pa., April 29, 2025 (GLOBE NEWSWIRE) -- The Victory Bancorp, Inc. (OTCQX: VTYB), the holding company for The Victory Bank, today announced growth and financial highlights for the quarter ended March 31, 2025.

Financial Highlights for First Quarter 2025

• Net Consolidated Earnings:
  Net income for the quarter ended March 31, 2025 was $543 thousand, an increase of $313 thousand compared to the same quarter in 2024, at $230 thousand. The return on average equity for Q1 2025 stood at 7.30%, compared to 7.58% in Q4 2024 and 3.29% a year ago.
• Deposit Growth:
  Total deposits reached $416.97 million as of March 31, 2025, up from $381.78 million at March 31, 2024, and $397.08 million at the end of December 2024. This growth reflects the success of the bank’s relationship-driven service model and has allowed the bank to paydown higher-cost borrowings to zero as of March 31, 2025.
• Book Value:
  Book value per common share increased to $15.25 as of March 31, 2025, from $14.84 at year end 2024.
• Stockholders’ Equity:
  Stockholders’ equity rose to $30.15 million at the end of Q1 2025, up from $29.34 million at year-end 2024 and $27.94 million as of March 31, 2024, continuing the trend of strengthening the company's capital position.
• Dividends:
  A quarterly cash dividend of $0.065 per share was paid in Q1 2025, consistent with prior quarters. The total dividend paid for calendar year 2024 was $0.26 per share.
• Strong credit quality indicators and Loan Quality Metrics:
  Net Charge-Offs to Average Loans was 0.01% as of March 31, 2025, consistent with 0.00% in the prior quarter and improved from 0.03% in the same quarter of 2024.   Nonperforming Assets to Total Assets stood at 0.00%, marking continued improvement from 0.05% at December 31, 2024, and 0.17% at March 31, 2024. The Allowance for Credit Losses to Loans remained consistent at 0.92% for both March 31, 2025 and December 31, 2024, slightly above the 0.91% reported a year earlier.

Bank Leader, Joseph W. Major, stated, “The first quarter of 2025 highlights the strength and resilience of our organization. Despite economic headwinds, our dedicated team delivered strong results, with deposits rising by $35.19 million over the past year to $416.97 million, reflecting continued client confidence.

“Net income more than doubled year-over-year to $543 thousand, supported by improved net interest income and disciplined expense management. Our book value per share rose to $15.25, and equity reached $30.15 million, reinforcing our solid financial foundation.

“Credit quality remains exceptional, with nonperforming assets at 0.00% and net charge-offs at 0.01%, outperforming historical norms and reflecting our prudent risk management.

“Looking ahead, we’re energized by our recent expansion into Horsham, and remain focused on long-term growth, delivering value to our shareholders, and supporting the communities we serve.”

Victory Bancorp, Inc. is traded on the OTCQX market under the symbol VTYB and is the parent company of The Victory Bank. The Bank, founded in 2008, is a Pennsylvania state-chartered commercial bank headquartered in Limerick Township, Montgomery County. It offers a full range of banking services, including checking and savings accounts, home equity lines of credit, and personal loans. In addition to traditional banking, the Bank specializes in high-quality business lending, serving small and mid-sized businesses and professionals. With four offices across Montgomery and Berks Counties, it is dedicated to meeting the financial needs of the local community. For more information, visit its website at VictoryBank.com. FDIC-Insured.

This presentation may contain forward-looking statements (within the meaning of Private Securities Litigation Reform Act of 1995). Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and other economic; competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products, and services.

Contact:
Joseph W. Major,
Chairman and Chief Executive Officer

Robert H. Schultz,
Chief Financial Officer, Chief Operating Officer

Owen Magers
Investor Relations
484-791-3435

The Victory Bancorp, Inc.
548 N. Lewis Rd.
Limerick, PA 19468

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
(dollars in thousands, except per share data)
	Mar 31,				Dec 31,				Mar 31,
Selected Financial Data		2025				2024				2024
Investment securities	$	44,416			$	44,642			$	47,015
Loans, net of allowance for credit losses		382,267				390,954				377,792
Total assets		466,844				461,024				450,102
Deposits		416,970				397,080				381,783
Borrowings		0				15,440				25,725
Subordinated debt		17,325				17,309				12,836
Stockholders' equity	$	30,154			$	29,337			$	27,940
Book value per common share	$	15.25			$	14.84			$	14.18
Allowance/loans		0.92	%			0.92	%			0.91	%
Nonperforming assets/total assets		0.00	%			0.05	%			0.17	%
		3 Months Ended
	Mar 31,				Dec 31,				Mar 31,
Selected Operations Data		2025				2024				2024
Interest income	$	6,927			$	7,281			$	6,860
Interest expense		3,585				3,886				3,759
Net interest income		3,342				3,395				3,101
Provision for loan losses		(55	)			(32	)			49
Other income		190				299				199
Other expense		2,895				3,000				2,957
Income before income taxes		692				726				294
Income taxes		(149	)			(168	)			(64	)
Net income	$	543			$	558			$	230
Earnings per common share (basic)	$	0.27			$	0.28			$	0.12
Earnings per common share (diluted)	$	0.27			$	0.28			$	0.11
Return on average assets (annualized)		0.47	%			0.48	%			0.20	%
Return on average equity (annualized)		7.30	%			7.58	%			3.29	%
Net charge-offs(recoveries)/average loans		(0.01	)%			0.00	%			0.03	%

FAQ

What is VTYB's Q1 2025 earnings per share compared to 2024?

VTYB's earnings per share increased to $0.27 in Q1 2025, up from $0.12 in Q1 2024, showing significant year-over-year growth of 125%.

How much did Victory Bank (VTYB) deposits grow in Q1 2025?

VTYB's total deposits reached $416.97 million in Q1 2025, growing by $35.19 million from $381.78 million in Q1 2024, reflecting strong customer confidence.

What is Victory Bank's (VTYB) book value per share in Q1 2025?

VTYB's book value per share increased to $15.25 as of March 31, 2025, up from $14.84 at the end of 2024.

How has VTYB's credit quality performed in Q1 2025?

VTYB showed excellent credit quality with nonperforming assets at 0.00% and net charge-offs at 0.01%, improving from 0.17% nonperforming assets in Q1 2024.

What dividend did Victory Bank (VTYB) pay in Q1 2025?

VTYB paid a quarterly cash dividend of $0.065 per share in Q1 2025, maintaining consistency with previous quarters.

How much net income did VTYB report for Q1 2025?

VTYB reported net income of $543,000 for Q1 2025, more than doubling from $230,000 in Q1 2024.