Victory Bancorp, Inc. Third Quarter Earnings

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[RS1]  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 (https://www.otcmarkets.com/stock/VTYB/overview) 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 the 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.

PDF Version including Consolidated Balance Sheet and Consolidated Statement of Operations