The Victory Bancorp, Inc. 2025 Third Quarter Earnings

Rhea-AI Summary

The Victory Bancorp (OTCQX: VTYB) reported net income of $358,000 for Q3 2025 and diluted EPS of $0.17. Results were pressured by higher other expenses of $3.47M, which included $374,000 of merger costs tied to the definitive agreement with QNB. Net interest income rose to $3.69M. Total deposits increased to $436.74M, up $38.57M year-over-year. Book value per share reached an all-time high of $15.85 and stockholders' equity rose to $31.65M. Credit quality remained strong with no nonperforming assets and net recoveries of (0.01)%.

Positive

• Total deposits up $38.57M year-over-year to $436.74M
• Book value per share at an all-time high of $15.85
• Stockholders' equity increased to $31.65M
• Net interest income rose to $3.69M

Negative

• Net income declined to $358K from $586K year-over-year
• Earnings per share fell to $0.17 diluted versus $0.29 prior year
• Return on average assets dropped to 0.29% from 0.50% a year earlier
• Other expenses grew to $3.47M, up ~20% YoY due to merger costs

LIMERICK, Pa., Nov. 03, 2025 (GLOBE NEWSWIRE) -- The Victory Bancorp, Inc. (OTCQX: VTYB), the holding company for The Victory Bank, today announced financial results for the quarter ended September 30, 2025.

Financial Highlights for Third Quarter 2025

• Net Consolidated Earnings:

Net income for the quarter ended September 30, 2025, was $358 thousand. This result was significantly impacted by higher Other expenses, which rose from $2.90 million in Q3 2024 to $3.47 million in Q3 2025, primarily due to costs associated with the anticipated merger with QNB related to the definitive agreement that was signed in September 2025. The merger expenses for the quarter were $374 thousand.

In contrast, net interest income—the bank’s primary source of earnings—increased from $3.46 million in Q3 2024 to $3.70 million in Q3 2025.

Return on average assets decreased to 0.29%, down from 0.50% in Q3 2024. Return on average equity declined to 4.57%, compared to 9.07% in the previous quarter and 8.14% a year earlier. However, excluding merger-related expenses, ROE would have been 8.07%.

• Deposit Growth:
The bank opened a new branch in spring 2025 in the Horsham market. This new location contributed to the growth in deposits in Q3. Total deposits grew to $436.74 million as of September 30, 2025, an increase of $38.57 million from September 30, 2024.

• Book Value:
Book value per common share rose to $15.85 as of September 30, 2025, compared to $14.84 at year-end 2024 and $14.89 as of September 30, 2024.

• Stockholders’ Equity:
Stockholders’ equity increased to $31.65 million, up from $29.34 million at December 31, 2024, and $29.44 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 $0.18 and $0.17, respectively, for Q3 2025, compared to $0.30 and $0.29 in Q3 2024. Merger-related costs had a significant impact on these results; excluding those costs, basic and diluted earnings per common share would have been $0.33 and $0.31, respectively.

Chairman and Bank Leader Joseph W. Major commented,

“Victory Bancorp delivered another solid quarter in 2025, continuing its record of disciplined growth and strong financial performance. The company achieved net income of $358,000 for the third quarter, supported by continued deposit expansion, prudent expense management, and healthy credit quality. Total deposits rose to $436.74 million as of September 30, 2025 — an impressive $38.57 million increase from the same period last year — reflecting the strength of our relationship-driven banking approach. Book value per share advanced to $15.85, marking another all-time high and demonstrating our ongoing commitment to building shareholder value.”

“Victory’s focused strategy and community-centered culture continue to fuel steady progress and long-term resilience. The opening of our new Horsham branch this spring expanded our presence in a dynamic and growing market, creating new opportunities to serve businesses and individuals with excellence. As we look ahead, we remain dedicated to supporting our clients’ success, deepening community connections, and driving sustainable growth for our shareholders.”

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)
						Sept 30,			Dec 31,			Sept 30,
Selected Financial Data						2025			2024			2024
Investment securities					$	40,850		$	44,642		$	46,110
Loans, net of allowance for credit losses						392,111			390,954			395,213
Total assets						488,219			461,024			467,939
Deposits						436,743			397,080			398,169
Borrowings						0			15,440			24,692
Subordinated debt						17,359			17,309			12,851
Stockholders' equity					$	31,650		$	29,337		$	29,437
Book value per common share					$	15.85		$	14.84		$	14.89
Allowance/loans						0.88%			0.92%			0.91%
Nonperforming assets/total assets						0.00%			0.05%			0.04%
						3 Months Ended
						Sept 30,			Dec 31,			Sept 30,
Selected Operations Data						2025			2024			2024
Interest income					$	7,475		$	7,281		$	7,526
Interest expense						3,786			3,886			4,064
Net interest income						3,689			3,395			3,462
Provision for loan losses						(15	)		(32	)		71
Other income						223			299			239
Other expense						3,472			3,000			2,895
Income before income taxes						455			726			735
Income taxes						(97	)		(168	)		(149	)
Net income					$	358		$	558		$	586
Earnings per common share (basic)					$	0.18		$	0.28		$	0.30
Earnings per common share (diluted)					$	0.17		$	0.28		$	0.29
Return on average assets (annualized)						0.29%			0.48%			0.50%
Return on average equity (annualized)						4.57%			7.58%			8.14%
Net charge-offs(recoveries)/average loans						(0.01)%			0.00%			0.00%

FAQ

What were The Victory Bancorp (VTYB) Q3 2025 net income and EPS?

Q3 2025 net income was $358,000 and diluted EPS was $0.17.

How much did VTYB deposits grow by in Q3 2025 and what is the total?

Total deposits rose by $38.57M year-over-year to $436.74M as of Sept 30, 2025.

What drove the higher expenses at Victory Bancorp in Q3 2025 (VTYB)?

Other expenses increased to $3.47M, including $374,000 of merger-related costs tied to the QNB agreement.

Did VTYB report any nonperforming assets in Q3 2025?

No, The Victory Bancorp reported 0.00% nonperforming assets for the quarter.

How did book value and stockholders' equity change for VTYB in Q3 2025?

Book value per share rose to $15.85 and stockholders' equity increased to $31.65M as of Sept 30, 2025.

What was VTYB's return on average equity in Q3 2025 and the impact of merger costs?

ROE was 4.57% annualized for Q3 2025; excluding merger-related expenses, ROE would have been 8.07%.