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)     
 UnauditedUnauditedUnauditedUnauditedUnaudited
 For the threeFor the threeFor the threeFor the threeFor the three
 months endedmonths endedmonths endedmonths endedmonths ended
 September 30,June 30,March 31,December 31,September 30,
 2020 2020202020192019
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

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