Victory Bancorp, Inc. Reports Second Quarter 2024 Results

LIMERICK, Pa., Aug. 1, 2024 (GLOBE NEWSWIRE) — The Victory Bancorp, Inc. (OTCQX: VTYB), the holding company for The Victory Bank, announced unaudited results for the quarter ended June 30, 2024.

Joseph W. Major, Bank Leader and CEO, stated, “Our second quarter results underscore the resilience of our financial position and the commitment of our team. Despite challenging market conditions, we delivered solid financial results, including an increase in deposits of $20.6 million from year-end to the second quarter of 2024 and an increase in our total assets of $27.6 million. Since June 2023, our net loans have increased by more than $55 million to $396.5 million, resulting in a 20.5% increase in net interest income.

In addition, we maintained strong credit quality metrics in 2024, with a reduction in delinquencies exceeding 30 days and a significant decline in non-performing loans. Victory Bancorp remains a well-capitalized institution that effectively manages expenses to achieve increased operating efficiency.

Looking ahead, Victory Bancorp is well-positioned to continue to deliver significant results for all stakeholders, both now and in the future.”

Highlights of Q2 2024 vs Q2 2023

• Net loans increased 16.3% to $396.5 million from $341.0 million at June 30, 2023.
• Increase in equity by $1.4 million
• $0.065 per share cash dividend paid to shareholders
• The Bank’s net interest margin amounted to 3.14% in the quarter
• Net income of $289 thousand, or approximately $0.14 per fully diluted common share
• Book value per share as of June 30, 2024 was $14.28
• Total assets increased by $55.9 million from June 30, 2023 to $469.8 million as of June 30, 2024.
• Credit quality is high

Capital and credit quality insight:

• The value of non-accrual loans decreased in the second quarter of 2024 from $2.2 million at the end of 2023 to $65 thousand in the current quarter.
• The share of non-performing assets in total assets decreased from 0.09% in the comparable quarter to 0.01% in the current quarter.
• Delinquencies of more than 30 days accounted for 0.09% of all loans as of June 30, 2024, compared with 0.68% as of December 31, 2023.
• The bank’s ACL ratio as of June 30, 2024 was 0.89%, down slightly from 0.94% at the end of 2023. The ACL ratio as of June 30, 2024 comprised 53.3% of non-performing loans, up from 1.58% at the end of 2023.
• The bank still has good capital.

Victory Bancorp, Inc. is listed on the OTCQX market under the symbol VTYB (https://www.otcmarkets.com) and is the parent company of The Victory Bank, a commercial bank headquartered in Limerick, Pennsylvania, located just outside the Philadelphia market in Montgomery County. Victory Bank was founded in 2008 as a specialized business lender that provides high-quality banking services to small and medium-sized businesses and professionals through 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 the Private Securities Litigation Reform Act of 1995). Actual results may differ materially from the results discussed in these forward-looking statements. Factors that could 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 regulations; and other economic, competitive, governmental, regulatory and technological factors affecting the Company’s business, pricing, products and services.

Contact:

Joseph W. Major,
President and CEO

Robert H. Schultz,
Chief Financial Officer, Chief Operating Officer

Phone: 610-948-9000

Victory Bancorp, Inc.
Address: 548 N. Lewis Rd.
Limerick, Pennsylvania 19468

CONSOLIDATED FINANCIAL RESULTS (unexplored)
(dollars in thousands, except per share data)
					June 30,			December 31st,			June 30,
Selected financial data					2024			2023			2023
Investment security				$	46 325		$	47 931		$	49 513
Net loans net of credit losses					396,499			364 383			340 978
Total assets					469 787			442,163			413 839
Deposits					384 615			364 032			369 256
Loans					42 617			36 200			3,750
Subordinated debt					12 843			12 830			12 817
Shareholders’ equity				$	28 155		$	27 948		$	26 759
Book value per common share				$	14.28		$	14.17		$	13.57
Allowance/loan					0.89	%		0.94	%		0.95	%
Non-performing assets/total assets					0.01	%		0.49	%		0.09	%
					3 months completed
					June 30,			December 31st,			June 30,
Selected operational data					2024			2023			2023
Net interest income				$	7200		$	6,680		$	5,977
Interest costs					3,994			3,337			2,629
Net interest income					3,206			3,343			3,348
Credit loss provision					110			170			0
Other income					209			210			118
Other expense					2,935			2,748			2,796
Income before tax					370			635			670
Income taxes					(81	)		(160	)		(215	)
Net income				$	289		$	475		$	455
Earnings per common share (basic)				$	0.15		$	0.24		$	0.23
Earnings per common share (diluted)				$	0.14		$	0.23		$	0.22
Return on average assets (annual)					0.25	%		0.45	%		0.44	%
Return on equity (annual)					4.08	%		6.97	%		6.84	%
Net write-offs (recoveries)/average loans					0.01	%		0.00	%		0.00	%