Victory Bancorp, Inc. First Quarter Earnings

LIMERICK, Pa., April 23, 2020 (GLOBE NEWSWIRE) — The Victory Bancorp, Inc. (OTCQX: VTYB) announced unaudited results for the quarter ended March 31, 2020. Highlights include asset growth of $29.6 million and a $2.0 million increase in stockholders’ equity at March 31, 2020, as compared to March 31, 2019. Net income decreased $325 thousand to $179 thousand for the quarter ended March 31, 2020 as compared to the quarter ended March 31, 2019, totaling approximately $0.09 per common share. Cash dividends increased from 2.5 cents per share per quarter to 5.0 cents per share per quarter in the first quarter of 2020. Book value per share increased to $10.30.Consolidated net income for the quarter ended March 31, 2020, was $179 thousand, a decrease of $325 thousand, compared to $504 thousand for the same quarter in 2019. Deposits grew to $251.6 million at March 31, 2020, from $232.4 million at March 31, 2019, an 8.3% increase. Net Loans increased 7.9% to $249.3 million at March 31, 2020, from $231.1 million at March 31, 2019, and total assets increased by $29.6 million to $291.2 million as of March 31, 2020, an increase of 11.3% over one year. The company paid a cash dividend totaling 5.0 cents per share during quarter ended March 31, 2020.In response to unprecedented economic and market disruptions created by the worldwide effects of the COVID-19 pandemic, the first-quarter provision for loan losses was sharply increased from $73 thousand a year ago to $557 thousand in 2020. However, non-performing assets remained essentially unchanged, $307 thousand at March 31, 2020, compared with $298 thousand at year-end 2019.Joseph W. Major, Chairman & CEO, stated, “We are pleased with the core performance of the bank in the first 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.  Despite these continued positive trends, in response to the unprecedented economic disruptions created by the COVID-19 pandemic and the governmentally mandated shut-down of much of the nation’s economy, the bank has reassessed the subjective criteria used in its analysis of loan loss reserves, resulting in a significant increase in contributions to the reserves this quarter, and therefore reduced income.”“In addition, The Victory Bank has become actively involved in helping to approve and fund business loans under the new SBA PPP lending program and expects to generate a significant amount of revenue from this program during the course of 2020. We believe this program will help many of our clients survive the current economic crisis.”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.As of March 31, 2020, The Victory Bank had total assets of $291.2 million, total deposits of $251.6 million, and total equity of $20.1 million. 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.Contact:
Joseph W. Major,
Chairman and Chief Executive Officer
Robert H. Schultz,
Chief Financial Officer, Chief Operating Officer
610-948-9000