The Victory Bancorp, Inc., Announces 2024 Third Quarter Earnings

Rhea-AI Summary

The Victory Bancorp (OTCQX: VTYB) reported strong Q3 2024 financial results with significant growth across key metrics. Deposits increased 10.8% to $398.2 million, while net loans grew 12.7% to $395.2 million compared to Q3 2023. Total assets reached $467.9 million, up 11.9% year-over-year. Credit quality showed remarkable improvement with non-performing assets declining from $2.2 million at end-2023 to $209 thousand. The company reported net income of $586 thousand ($0.29 per share) and maintained a net interest margin of 3.58%. A cash dividend of $0.065 per share was paid to shareholders.

Positive

• Net loans increased 12.7% YoY to $395.2 million
• Deposits grew 10.8% YoY to $398.2 million
• Total assets increased 11.9% YoY to $467.9 million
• Non-performing assets decreased significantly from $2.2M to $209K
• Delinquencies >30 days improved from 0.68% to 0.05% of total loans

Negative

• Net interest margin decreased to 3.58%
• ACL ratio declined from 0.94% to 0.91%

LIMERICK, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) -- The Victory Bancorp, Inc. (OTCQX: VTYB), the holding company for The Victory Bank, announced unaudited results for the quarter ended September 30, 2024.

Joseph W. Major, Bank Leader and Chief Executive Officer, stated, “Our third quarter results reflect consistent growth and improved earnings. Our commitment to providing top-notch banking services is central to our strategy which we implement by hiring skilled and dedicated bankers who offer trusted advice and exceptional personal service to our clients. Our focus is on maintaining disciplined pricing and credit underwriting practices as we expand the Bank. This diligence not only strengthens our institution but also benefits the communities we serve.”

As of September 30, 2024, deposits rose to $398.2 million, up from $358.2 million a year earlier—a 10.8% increase. Net loans increased by 12.7%, reaching $395.2 million, compared to $351.9 million on the same date last year. Total assets grew by $49.1 million to $467.9 million, marking an 11.9% increase over the past year. Overall credit quality remained strong, with very low levels of non-performing and non-accrual loans. Because of these excellent credit metrics, third quarter provision for loan losses decreased to $71 thousand, down from $75 thousand in the 3^rd quarter of 2023. Notably, non-performing assets fell significantly from $2.2 million at the end of 2023 to $209 thousand as of September 30, 2024.

Third Quarter 2024 Highlights compared to Third Quarter 2023

• Net Loans increased 12.7% to $395.2 million from $351.9 million at September 30, 2023
• $2.9 million increase in stockholders’ equity
• $0.065 per share cash dividend paid to shareholders
• Net interest margin at the Bank was 3.58% for the quarter
• Net income of $586 thousand, totaling approximately $0.29 per common share fully diluted
• Book value per share as of September 30, 2024 was $14.89
• Total assets increased by $49.1 million from September 30, 2023 to $467.9 million as of September 30, 2024
• Credit quality is outstanding

Capital Insights and Credit Quality:

• Nonaccrual loans decreased in the third quarter of 2024, from $2.2 million at year end 2023 to $206 thousand in the current quarter.
• Non-performing assets to total assets rose slightly from 0.01% in the linked quarter to 0.04% in the current quarter.
• Delinquencies greater than 30 days were 0.05% of total loans as of September 30, 2024, down from 0.68% as of December 31, 2023.
• The bank's ACL ratio was 0.91% as of September 30, 2024, down slightly from 0.94% at year-end 2023. The September 30, 2024 ACL covered non-performing loans 17.5 times, an increase from 1.6 times at year-end 2023.
• The bank remains well capitalized.
  

Victory Bancorp, Inc. is traded on the OTCQX market under the symbol VTYB (https://www.otcmarkets.com) and is the parent company of The Victory Bank, a Pennsylvania state-chartered commercial bank headquartered in Limerick, Pennsylvania, which is located just outside the Philadelphia market in Montgomery County. The Victory Bank was established in 2008 as a specialized business lender that provides high-quality banking services to small and mid-sized businesses and professionals through its three offices located in Montgomery and Berks Counties, Pennsylvania. Additional information about Victory Bancorp is available on its website, VictoryBank.com.

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

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

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
(dollars in thousands, except per share data)
		September 30,		December 31,		September 30,
Selected Financial Data		2024		2023		2023
Investment securities	$	46,110	$	47,931	$	47,335
Loans, net of allowance for loan losses		395,213		364,383		351,926
Total assets		467,939		442,163		418,843
Deposits		398,169		364,032		358,207
Borrowings		24,692		36,200		19,750
Subordinated debt		12,851		12,830		12,824
Stockholders' equity	$	29,437	$	27,948	$	26,548
Book value per common share	$	14.89	$	14.17	$	13.47
Allowance/loans		0.91%		0.94%		0.94%
Nonperforming assets/total assets		0.04%		0.49%		0.01%
		3 Months Ended
		September 30,		December 31,		September 30,
Selected Operations Data		2024		2023		2023
Interest income	$	7,526	$	6,680	$	6,298
Interest expense		4,064		3,337		2,955
Net interest income		3,462		3,343		3,343
Provision for loan losses		71		170		75
Other income		239		210		143
Other expense		2,895		2,748		2,826
Income before income taxes		735		635		585
Income taxes		(149)		(160)		(39)
Net income	$	586	$	475	$	546
Earnings per common share (basic)	$	0.30	$	0.24	$	0.28
Earnings per common share (diluted)	$	0.29	$	0.23	$	0.26
Return on average assets (annualized)		0.50%		0.45%		0.53%
Return on average equity (annualized)		8.14%		6.97%		8.05%
Net charge-offs(recoveries)/average loans		0.01%		0.00%		0.00%

FAQ

What was Victory Bancorp's (VTYB) net income for Q3 2024?

Victory Bancorp reported a net income of $586 thousand, or $0.29 per share fully diluted, for Q3 2024.

How much did Victory Bancorp's (VTYB) deposits grow in Q3 2024?

Deposits grew by 10.8% year-over-year to $398.2 million in Q3 2024, up from $358.2 million in Q3 2023.

What was Victory Bancorp's (VTYB) book value per share as of September 30, 2024?

The book value per share was $14.89 as of September 30, 2024.

How did Victory Bancorp's (VTYB) non-performing assets change in Q3 2024?

Non-performing assets decreased significantly from $2.2 million at the end of 2023 to $209 thousand as of September 30, 2024.