Victory Bancorp, Inc. Third Quarter Earnings

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