LIMERICK, Pa., Oct. 27, 2020 (GLOBE NEWSWIRE) -- The Victory Bancorp, Inc. (OTCQX: VTYB) announced unaudited results for the quarter ended September 30, 2020. As of September 30, 2020, The Victory Bank held total assets of $431.3 million, total deposits of $322.9 million, and total equity of $21.0 million. Highlights include asset growth of $16.9 million for the quarter and a $1.6 million increase in stockholders’ equity at September 30, 2020, as compared to September 30, 2019. Book value per share increased 84 cents from $9.91 at September 30, 2019 to $10.75 at September 30, 2020. In addition, at September 30, 2020, The Victory Bank held $2.15 million of deferred fee income on its balance sheet. Cash dividends remained unchanged at 5 cents per share per quarter.
While the bank has not suffered any significant deterioration in asset quality, in response to the economic uncertainty created by the COVID 19 pandemic, the bank has increased total loan loss reserves from $2.2 million at December 31, 2019 to $3.3 million at September 30, 2020; approximately 1.10% of total loans; 1.38% of non-PPP loans (Small Business Administration Paycheck Protection Program loans). Non-performing assets remained low during the quarter, declining from $265 thousand at June 30, 2020, to $130 thousand at September 30, 2020.
Excluding provisions for loan losses, consolidated pre-tax net income for the quarter ended September 30, 2020, was $927 thousand, compared with pre-provision pre-tax net income of $879 thousand for the same quarter in 2019. Consolidated net income after provision for loan losses was $543 thousand, a decrease of $79 thousand as compared to $622 thousand for the same quarter in 2019, totaling approximately $0.28 per common share. Deposits grew to $322.9 million at September 30, 2020, from $236.3 million at September 30, 2019, a 37% increase. Including SBA PPP loans, total net loans increased 27% to $299.4 million at September 30, 2020, from $235.5 million at September 30, 2019. Total assets increased by $163.6 million to $431.3 million as of September 30, 2020, an increase of 61% over one year.
Bank Leader, Joseph W. Major, stated, “We are pleased with the core performance of the bank in the third quarter, as measured against past years’ performance and our three-year operating plan. Credit metrics and net interest margin remained stable, reserves have grown, expenses were controlled and on budget, and the bank showed excellent growth and consistency in most areas. Our focus for most of 2020 has been protecting the safety of our employees and clients while expanding our services to businesses and individuals in their crucial time of need. Our Victory Bank team members worked tirelessly to close over $60 million of Small Business Administration Paycheck Protection loans, processing approximately 577 loan applications, helping businesses in our communities protect 7,277 local jobs.”
The Victory Bancorp, Inc. is traded on the OTCQX market under the symbol VTYB (http://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 two 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.
The Victory Bancorp, Inc.
Consolidated Balance Sheet
(numbers in thousands except share data)
Unaudited
September 30,
December 31,
2020
2019
Assets
Cash and due from banks
$
108,000
$
7,367
Federal funds sold
4,000
10,803
Cash and cash equivalents
112,000
18,170
Securities available-for-sale
11,536
11,084
Loans receivable, net of allowance for loan losses
of $3,338 and $2,213
299,351
243,131
Premises and equipment, net
3,209
3,298
Restricted investment in bank stocks
1,584
474
Accrued interest receivable
1,121
716
BOLI
1,579
1,548
Other assets
930
872
Total assets
$
431,310
$
279,293
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing
60,602
48,060
Interest-bearing
262,287
199,734
Total deposits
322,889
247,794
UnSecured borrowings
68,610
3,000
Subordinated Debt
17,700
7,927
Other liabilities
1,149
794
Total liabilities
410,348
259,515
Stockholders' Equity
Common stock, $1 par value; authorized 10,000,000
shares; issued and outstanding 1,950,077 shares
1,950
1,950
Surplus
14,253
14,212
Accumulated earnings
4,469
3,480
Accumulated other comprehensive income
290
136
Total stockholders' equity
20,962
19,778
Total liabilities and stockholders' equity
$
431,310
$
279,293
The Victory Bancorp, Inc.
Consolidated Statement of Operations
(numbers in thousands except share data)
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
For the three
For the three
For the three
For the three
For the three
months ended
months ended
months ended
months ended
months ended
September 30,
June 30,
March 31,
December 31,
September 30,
2020
2020
2020
2019
2019
Interest Income
Interest and fees on loans
$
3,721
$
3,704
$
3,547
$
3,471
$
3,531
Interest on investment securities
73
91
78
75
78
Other Interest Income
34
25
32
52
55
Total interest income
3,828
3,820
3,657
3,598
3,664
Interest Expense
Deposits
559
571
702
715
750
Borrowings
400
232
188
165
171
Total interest expense
959
803
890
880
921
Net interest income
2,869
3,017
2,767
2,718
2,743
Provision for Loan Losses
229
450
557
67
75
Net interest income after provision for loan losses
2,640
2,567
2,210
2,651
2,668
Non-Interest Income
Service charges and activity fees
60
45
54
67
65
Net gains on sales of loans
-
20
-
-
-
Other income
76
64
44
177
49
Total non-interest income
136
129
98
244
114
Non-Interest Expenses
Salaries and employee benefits
1,280
1,190
1,295
1,346
1,254
Occupancy and equipment
121
121
130
124
120
Legal and professional fees
104
119
79
149
85
Advertising and promotion
31
15
23
27
23
Loan expenses
17
61
23
41
35
Data processing costs
288
282
270
258
241
Supplies, printing and postage
17
18
28
27
28
Telephone
10
9
6
6
9
Entertainment
16
3
23
39
26
Mileage and tolls
3
2
5
10
8
Insurance
10
9
10
10
10
Federal Deposit Insurance Corporation premiums
30
46
37
16
1
Dues and subscriptions
19
21
23
20
16
Shares tax
62
62
62
54
53
Other
70
19
75
94
69
Total non-interest expenses
2,078
1,977
2,089
2,221
1,978
Income before income taxes
698
719
219
674
804
Income Taxes
(155
)
(159
)
(40
)
(172
)
(182
)
Net income available to common stockholders
$
543
$
560
$
179
$
502
$
622
Contact: Joseph W. Major, Chairman and Chief Executive Officer Robert H. Schultz, Chief Financial Officer, Chief Operating Officer 610-948-9000