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.

The Victory Bancorp, Inc.
Consolidated Balance Sheet
(numbers in thousands except share data)	Unaudited		Unaudited
	March 31,		December 31,
	2020		2019
Assets
Cash and due from banks	$	5,463	$	7,367
Federal funds sold		17,378		10,803
Cash and cash equivalents		22,841		18,170
Securities available-for-sale		10,746		11,084
Loans receivable, net of allowance for loan losses of $2,772 and $2,210		249,301		243,131
Premises and equipment, net		3,302		3,298
Restricted investment in bank stocks		1,404		474
Accrued interest receivable		824		716
BOLI		1,559		1,548
Other assets		1,181		1,235
Total assets	$	291,158	$	279,656
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing	$	40,539	$	48,060
Interest-bearing		211,093		199,734
Total deposits		251,632		247,794
Unsecured borrowings		10,500		3,000
Subordinated debt		7,930		7,927
Other liabilities		1,019		1,157
Total liabilities		271,081		259,878
Stockholders' Equity
Common stock, $1 par value; authorized 10,000,000 shares; issued and outstanding 1,950,077 shares		1,950		1,950
Surplus		14,226		14,212
Accumulated earnings		3,562		3,481
Accumulated other comprehensive income		339		135
Total stockholders' equity		20,077		19,778
Total liabilities and stockholders' equity	$	291,158	$	279,656

The Victory Bancorp, Inc.
Consolidated Statement of Operations
	Unaudited			Unaudited			Unaudited			Unaudited			Unaudited
	three			three			three			three			three
	months ended			months ended			months ended			months ended			months ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2020			2019			2019			2019			2019
Interest Income
Interest and fees on loans	$	3,547		$	3,598		$	3,531		$	3,503		$	3,347
Interest on investment securities		78			75			78			72			74
Other Interest Income		32			52			55			67			29
Total interest income		3,657			3,725			3,664			3,642			3,450
Interest Expense
Deposits		702			715			750			772			747
Borrowings		188			165			171			158			137
Total interest expense		890			880			921			930			884
Net interest income		2,767			2,845			2,743			2,712			2,566
Provision for Loan Losses		557			67			75			209			73
Net interest income after provision for loan losses		2,210			2,778			2,668			2,503			2,493
Non-Interest Income
Service charges and activity fees		54			67			65			55			55
Other income		44			50			49			21			52
Total non-interest income		98			117			114			76			107
Non-Interest Expenses
Salaries and employee benefits		1,295			1,346			1,254			1,145			1,210
Occupancy and equipment		130			124			120			125			127
Legal and professional fees		79			149			85			103			66
Advertising and promotion		23			27			23			35			23
Loan expenses		23			41			35			34			39
Data processing costs		270			258			241			254			259
Supplies, printing and postage		28			27			28			30			43
Telephone		6			6			9			8			9
Entertainment		23			39			26			33			23
Mileage and tolls		5			10			8			12			6
Insurance		10			10			10			9			10
Federal Deposit Insurance Corporation premiums		37			16			1			43			34
Dues and subscriptions		23			20			16			17			19
Shares tax		62			54			53			53			49
Other		75			94			69			45			49
Total non-interest expenses		2,089			2,221			1,978			1,946			1,966
Income before income taxes		219			674			804			633			634
Income Taxes		(40	)		(172	)		(182	)		(134	)		(130	)
Net income available to common stockholders	$	179		$	502		$	622		$	499		$	504

Contact:
Joseph W. Major,
Chairman and Chief Executive Officer
Robert H. Schultz,
Chief Financial Officer, Chief Operating Officer
610-948-9000

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.