LIMERICK, Pa., July 17, 2020 (GLOBE NEWSWIRE) -- The Victory Bancorp, Inc. (OTCQX: VTYB) announced unaudited results for the quarter ended June 30, 2020. As of June 30, 2020, The Victory Bank held total assets of $414.5 million, total deposits of $306.3 million, and total equity of $20.6 million. Highlights include asset growth of $123.3 million for the quarter and a $1.9 million increase in stockholders’ equity at June 30, 2020, as compared to June 30, 2019. Cash dividends increased from 10 cents per share per quarter to 20 cents per share per quarter in the first quarter of 2020. Book value per share increased to $10.55. Consolidated net income for the quarter ended June 30, 2020, was $560 thousand, an increase of $61 thousand, compared to $499 thousand for the same quarter in 2019, totaling approximately $0.29 per common share. Deposits grew to $306.3 million at June 30, 2020, from $228.9 million at June 30, 2019, a 33.8% increase. Including SBA PPP loans, total Net Loans increased 28.2% to $299.3 million at June 30, 2020, from $233.5 million at June 30, 2019, and total assets increased by $155.9 million to $414.5 million as of June 30, 2020, an increase of 60.3% over one year.
While the bank has not suffered any significant deterioration in asset quality, in response to unprecedented economic and market uncertainty created by the worldwide effects of the COVID 19 pandemic, the first-quarter provision for loan losses was increased from $73 thousand in 2019 to $557 thousand in 2020; the provision for the second quarter was $450 thousand, compared to $209 thousand in the second quarter of 2019. Total Loan Loss Reserves reached $3.1 million at quarter-end or approximately 1.03% of total loans. Non-performing assets declined from $307 thousand at March 31, 2020, to $222 thousand at June 30, 2020.
Joseph W. Major, Bank Leader, Chairman & CEO, stated, “We are pleased with the core performance of the bank in the second quarter, as measured against past years’ performance and our three-year operating plan. Credit metrics and net interest margin remained stable, expenses were controlled and on budget, and the bank showed excellent growth and consistency in most areas. Our focus in the second quarter has been protecting the safety of our employees and clients while expanding our services to businesses and individuals in their crucial time of need while building loan loss reserves in anticipation of possible increased credit losses. During the second quarter, The Victory Bank team members worked tirelessly to close over $60 million of Small Business Administration Paycheckl Protection loans (PPP), processing approximately 577 loan applications, helping businesses in our communities protect 7,277 local jobs.”
Also, during the second quarter, Victory Bancorp completed the issuance of $10 million of 10-year, fixed to floating subordinated debt, to be used to bolster the bank’s capital ratios and allow for continued growth and stability.The coupon on this issuance is fixed at 6.25% for the first five years.
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.The Bank is 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
June 30,
December 31,
2020
2019
Assets
Cash and due from banks
$
92,834
$
7,367
Federal funds sold
4,000
10,803
Cash and cash equivalents
96,834
18,170
Securities available-for-sale
9,982
11,084
Loans receivable, net of allowance for loan losses
of $3,124 and $2,213
299,309
243,131
Premises and equipment, net
3,277
3,298
Restricted investment in bank stocks
1,452
474
Accrued interest receivable
1,049
716
BOLI
1,570
1,548
Other assets
987
872
Total assets
$
414,460
$
279,293
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing
$
65,185
$
48,060
Interest-bearing
241,129
199,734
Total deposits
306,314
247,794
Unsecured borrowings
68,615
3,000
Subordinated Debt
17,692
7,927
Other liabilities
1,272
794
Total liabilities
393,893
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
14,239
14,212
Accumulated earnings
4,025
3,480
Accumulated other comprehensive income
353
136
Total stockholders' equity
20,567
19,778
Total liabilities and stockholders' equity
$
414,460
$
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
June 30,
March 31,
December 31,
September 30,
June 30,
2020
2020
2019
2019
2019
Interest Income
Interest and fees on loans
$
3,704
$
3,547
$
3,471
$
3,531
$
3,503
Interest on investment securities
91
78
75
78
72
Other Interest Income
25
32
52
55
67
Total interest income
3,820
3,657
3,598
3,664
3,642
Interest Expense
Deposits
571
702
715
750
772
Borrowings
232
188
165
171
158
Total interest expense
803
890
880
921
930
Net interest income
3,017
2,767
2,718
2,743
2,712
Provision for Loan Losses
450
557
67
75
209
Net interest income after provision for loan losses
2,567
2,210
2,651
2,668
2,503
Non-Interest Income
Service charges and activity fees
45
54
67
65
55
Net gains on sales of loans
20
-
-
-
-
Other income
64
44
177
49
21
Total non-interest income
129
98
244
114
76
Non-Interest Expenses
Salaries and employee benefits
1,190
1,295
1,346
1,254
1,145
Occupancy and equipment
121
130
124
120
125
Legal and professional fees
119
79
149
85
103
Advertising and promotion
15
23
27
23
35
Loan expenses
61
23
41
35
34
Data processing costs
282
270
258
241
254
Supplies, printing and postage
18
28
27
28
30
Telephone
9
6
6
9
8
Entertainment
3
23
39
26
33
Mileage and tolls
2
5
10
8
12
Insurance
9
10
10
10
9
Federal Deposit Insurance Corporation premiums
46
37
16
1
43
Dues and subscriptions
21
23
20
16
17
Shares tax
62
62
54
53
53
Other
19
75
94
69
45
Total non-interest expenses
1,977
2,089
2,221
1,978
1,946
Income before income taxes
719
219
674
804
633
Income Taxes
(159
)
(40
)
(172
)
(182
)
(134
)
Net income available to common stockholders
$
560
$
179
$
502
$
622
$
499
Contact: Joseph W. Major, Chairman and Chief Executive Officer Robert H. Schultz, Chief Financial Officer, Chief Operating Officer 610-948-9000