The Victory Bancorp, Inc. 2025 Second Quarter Earnings

Rhea-AI Summary

Victory Bancorp (OTCQX:VTYB) reported strong Q2 2025 financial results, with net income surging to $693 thousand, a 140% increase from Q2 2024's $289 thousand. The bank demonstrated significant improvements in key metrics, with return on equity rising to 9.07% from 4.08% year-over-year.

Total deposits grew to $426.43 million, up $41.82 million from June 30, 2024, supported by the opening of a new branch in Horsham. Book value per share increased to $15.57, up from $14.28 year-over-year. Credit quality remained exceptional with zero nonperforming assets and net recoveries of 0.01%. Earnings per share reached $0.35 basic and $0.34 diluted, more than doubling from Q2 2024.

Positive

• Net income surged 140% year-over-year to $693 thousand
• Return on equity more than doubled to 9.07% from 4.08% year-over-year
• Total deposits increased by $41.82 million to $426.43 million
• Credit quality excellence with zero nonperforming assets
• Complete elimination of borrowings, reducing high-cost funding
• Successful expansion with new Horsham branch opening

Negative

• Allowance for credit losses to total loans decreased to 0.88% from 0.92% in December 2024
• Interest expense remains high at $3,620 thousand despite deposit growth

LIMERICK, Pa., July 15, 2025 (GLOBE NEWSWIRE) -- The Victory Bancorp, Inc. (OTCQX: VTYB), the holding company for The Victory Bank, today announced financial results for the quarter ended June 30, 2025.

Financial Highlights for Second Quarter 2025
•	Net Consolidated Earnings:
Net income for the quarter ended June 30, 2025, surged to $693 thousand — a $404 thousand increase over the $289 thousand reported in Q2 2024. This substantial growth reflects the continued strength of our financial performance. Return on average equity climbed to 9.07%, up from 7.30% in the previous quarter and more than doubling the 4.08% reported a year ago. Return on average assets also improved significantly, rising to 0.59% from 0.25% in Q2 2024.
•	Deposit Growth:
The bank opened a new branch in spring 2025 in the Horsham market. This new location, along with targeted promotions tied to the opening, has contributed to the growth in deposits in Q2. Total deposits grew to $426.43 million as of June 30, 2025, an increase of $41.82 million from June 30, 2024. This deposit growth has supported strategic balance sheet expansion while enabling the Bank to fully eliminate its highest funding source, borrowings, as of Q2 2025.
•	Book Value:
Book value per common share rose to $15.57 as of June 30, 2025, compared to $14.84 at year-end 2024 and $14.28 as of June 30, 2024.
•	Stockholders’ Equity:
Stockholders’ equity increased to $30.99 million, up from $29.34 million at December 31, 2024, and $28.16 million a year ago. This growth continues to reinforce the company’s strong capital position.
•	Credit Quality and Loan Metrics:
Credit quality remained strong, with no nonperforming assets reported for the quarter and net charge-offs at -0.01%, indicating net recoveries. The allowance for credit losses to total loans stood at 0.88%, reflecting continued sound risk management practices.
•	Earnings per Share:
Basic and diluted earnings per common share were $0.35 and $0.34, respectively, for Q2 2025, compared to $0.15 basic and $0.14 diluted in Q2 2024.

Chairman and Bank Leader Joseph W. Major commented,

“Victory Bancorp delivered an extraordinary second quarter in 2025, with net income soaring 140% compared to Q2 of 2024 — a remarkable milestone that highlights the strength and resilience of our financial performance. This improvement was powered by disciplined cost control, strong loan portfolio health, and continued deposit growth. We remained focused on protecting our margin by carefully managing interest expense on new deposits and maintaining rigorous pricing discipline on new loans. Our book value per share climbed to a record high of $15.57, and return on equity exceeded 9%, signaling continued momentum and exceptional operational execution.”

“We continue to see the benefits of our community-focused relationship banking model and the dedication of our exceptional team. As we enter the second half of the year, we remain focused on supporting the financial success of our clients, expanding responsibly, and delivering sustained value to shareholders. The opening of our new Horsham branch further extends our footprint into a vibrant and growing market, positioning us to serve more businesses and individuals while deepening our community impact.”

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)
		3 Months Ended
		Jun 30,			Dec 31,			Jun 30,
Selected Financial Data		2025			2024			2024
Investment securities	$	43,323		$	44,642		$	46,325
Loans, net of allowance for credit losses		392,557			390,954			396,499
Total assets		477,089			461,024			469,787
Deposits		426,433			397,080			384,615
Borrowings		0			15,440			42,617
Subordinated debt		17,342			17,309			12,843
Stockholders' equity	$	30,987		$	29,337		$	28,155
Book value per common share	$	15.57		$	14.84		$	14.28
Allowance/loans		0.88	%		0.92	%		0.89	%
Nonperforming assets/total assets		0.00	%		0.05	%		0.01	%
		3 Months Ended
		Jun 30,			Dec 31,			Jun 30,
Selected Operations Data		2025			2024			2024
Interest income	$	7,149		$	7,281		$	7,200
Interest expense		3,620			3,886			3,994
Net interest income		3,529			3,395			3,206
Provision for loan losses		(75	)		(32	)		110
Other income		257			299			209
Other expense		2,980			3,000			2,935
Income before income taxes		881			726			370
Income taxes		(188	)		(168	)		(81	)
Net income	$	693		$	558		$	289
Earnings per common share (basic)	$	0.35		$	0.28		$	0.15
Earnings per common share (diluted)	$	0.34		$	0.28		$	0.14
Return on average assets (annualized)		0.59	%		0.48	%		0.25	%
Return on average equity (annualized)		9.07	%		7.58	%		4.08	%
Net charge-offs(recoveries)/average loans		(0.01	)%		0.00	%		0.01	%

FAQ

What were Victory Bancorp's (VTYB) Q2 2025 earnings per share?

Victory Bancorp reported $0.35 basic and $0.34 diluted earnings per share for Q2 2025, more than doubling from $0.15 basic and $0.14 diluted in Q2 2024.

How much did Victory Bancorp's (VTYB) deposits grow in Q2 2025?

Victory Bancorp's total deposits grew to $426.43 million as of June 30, 2025, representing an increase of $41.82 million from June 30, 2024.

What was Victory Bancorp's (VTYB) net income for Q2 2025?

Victory Bancorp reported net income of $693 thousand for Q2 2025, a significant increase of $404 thousand or 140% compared to $289 thousand in Q2 2024.

What is Victory Bancorp's (VTYB) book value per share as of Q2 2025?

Victory Bancorp's book value per share increased to $15.57 as of June 30, 2025, up from $14.84 at year-end 2024 and $14.28 as of June 30, 2024.

How did Victory Bancorp's (VTYB) credit quality perform in Q2 2025?

Victory Bancorp maintained strong credit quality with zero nonperforming assets and net recoveries of 0.01%, while maintaining an allowance for credit losses to total loans ratio of 0.88%.