The Victory Bancorp, Inc. 2025 Third Quarter Earnings
MWN-AI** Summary
The Victory Bancorp, Inc. (OTCQX: VTYB), parent company of The Victory Bank, reported its third-quarter earnings for 2025, highlighting a nuanced financial landscape amid a significant merger process. For the quarter ending September 30, 2025, the company saw a net income of $358,000, down from $586,000 in the same quarter last year. This decline was primarily influenced by a rise in other expenses, which climbed from $2.90 million in Q3 2024 to $3.47 million in Q3 2025, significantly driven by merger-related costs totaling $374,000.
Despite the challenges, the bank's net interest income grew from $3.46 million in Q3 2024 to $3.70 million in Q3 2025, reflecting robust lending activity. Deposits also surged, reaching $436.74 million—an increase of $38.57 million year-over-year—partially due to the opening of a new branch in Horsham earlier this year. Victory Bancorp's book value per common share rose to $15.85, marking an all-time high and reinforcing its commitment to enhancing shareholder value.
Chairman Joseph W. Major expressed optimism regarding the bank's steady growth and strong financial performance, emphasizing the importance of community relationships and prudent expense management. With a solid capital position, evidenced by a stockholders' equity increase to $31.65 million, Victory maintains a strong risk management posture, as shown by zero nonperforming assets and net recoveries in the quarter.
Overall, while the merger-related costs impacted short-term earnings, excluding these expenses would have shown healthier returns, indicating the bank’s resilience and ongoing strategy for future growth in a competitive market environment.
MWN-AI** Analysis
The Victory Bancorp, Inc. (OTCQX: VTYB) reported its third-quarter earnings for 2025, revealing a net income of $358,000, a notable decrease compared to prior quarters. The increase in other expenses due to merger-related costs is notable, reaching $374,000 this quarter. This, alongside higher operational costs, significantly impacted profitability, leading to a decline in both return on average assets (ROA) and return on average equity (ROE) to 0.29% and 4.57%, respectively. However, excluding merger costs, ROE would have been a more robust 8.07%.
Despite these challenges, certain indicators remain positive for the bancorp. The robust deposit growth of $38.57 million, culminating in a total of $436.74 million, suggests strong market positioning and operational health, particularly following the recent opening of a new branch in Horsham. Additionally, the growth in book value per share to $15.85 from $14.84 at year-end 2024 reflects a commitment to enhancing shareholder value.
Investors should take solace in the fact that credit quality remains sound—with no nonperforming assets reported. The allowance for credit losses standing at 0.88% emphasizes effective risk management strategies in place.
As the company undergoes this merger, stakeholders might view the present volatility as a short-term hurdle. Long-term prospects appear promising due to the bancorp's community-focused strategy and stable deposit base. However, investors should closely monitor the implications of merger integration on operational costs and overall financial performance moving forward.
Considering these dynamics, investors can approach VTYB with cautious optimism. Potential for recovery alongside growth in deposits and book value suggests it may provide a favorable investment opportunity for those willing to accept the associated short-term risks related to merger expenses.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
LIMERICK, Pa., Nov. 03, 2025 (GLOBE NEWSWIRE) -- The Victory Bancorp, Inc. (OTCQX: VTYB), the holding company for The Victory Bank, today announced financial results for the quarter ended September 30, 2025.
Financial Highlights for Third Quarter 2025
• Net Consolidated Earnings:
Net income for the quarter ended September 30, 2025, was $358 thousand. This result was significantly impacted by higher Other expenses, which rose from $2.90 million in Q3 2024 to $3.47 million in Q3 2025, primarily due to costs associated with the anticipated merger with QNB related to the definitive agreement that was signed in September 2025. The merger expenses for the quarter were $374 thousand.
In contrast, net interest income—the bank’s primary source of earnings—increased from $3.46 million in Q3 2024 to $3.70 million in Q3 2025.
Return on average assets decreased to 0.29%, down from 0.50% in Q3 2024. Return on average equity declined to 4.57%, compared to 9.07% in the previous quarter and 8.14% a year earlier. However, excluding merger-related expenses, ROE would have been 8.07%.
• Deposit Growth:
The bank opened a new branch in spring 2025 in the Horsham market. This new location contributed to the growth in deposits in Q3. Total deposits grew to $436.74 million as of September 30, 2025, an increase of $38.57 million from September 30, 2024.
• Book Value:
Book value per common share rose to $15.85 as of September 30, 2025, compared to $14.84 at year-end 2024 and $14.89 as of September 30, 2024.
• Stockholders’ Equity:
Stockholders’ equity increased to $31.65 million, up from $29.34 million at December 31, 2024, and $29.44 million a year ago. This growth continues to reinforce the company’s strong capital position.
• Credit Quality and Loan Metrics:
Credit quality remained strong, with no nonperforming assets reported for the quarter and net charge-offs at –(0.01)%, indicating net recoveries. The allowance for credit losses to total loans stood at 0.88%, reflecting continued sound risk management practices.
• Earnings per Share:
Basic and diluted earnings per common share were $0.18 and $0.17, respectively, for Q3 2025, compared to $0.30 and $0.29 in Q3 2024. Merger-related costs had a significant impact on these results; excluding those costs, basic and diluted earnings per common share would have been $0.33 and $0.31, respectively.
Chairman and Bank Leader Joseph W. Major commented,
“Victory Bancorp delivered another solid quarter in 2025, continuing its record of disciplined growth and strong financial performance. The company achieved net income of $358,000 for the third quarter, supported by continued deposit expansion, prudent expense management, and healthy credit quality. Total deposits rose to $436.74 million as of September 30, 2025 — an impressive $38.57 million increase from the same period last year — reflecting the strength of our relationship-driven banking approach. Book value per share advanced to $15.85, marking another all-time high and demonstrating our ongoing commitment to building shareholder value.”
“Victory’s focused strategy and community-centered culture continue to fuel steady progress and long-term resilience. The opening of our new Horsham branch this spring expanded our presence in a dynamic and growing market, creating new opportunities to serve businesses and individuals with excellence. As we look ahead, we remain dedicated to supporting our clients’ success, deepening community connections, and driving sustainable growth for our shareholders.”
Victory Bancorp, Inc. is traded on the OTCQX market under the symbol VTYB and is the parent company of The Victory Bank. The Bank, founded in 2008, is a Pennsylvania state-chartered commercial bank headquartered in Limerick Township, Montgomery County. It offers a full range of banking services, including checking and savings accounts, home equity lines of credit, and personal loans. In addition to traditional banking, the Bank specializes in high-quality business lending, serving small and mid-sized businesses and professionals. With four offices across Montgomery and Berks Counties, it is dedicated to meeting the financial needs of the local community. For more information, visit its website at VictoryBank.com . FDIC-Insured.
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
Owen Magers
Investor Relations
484-791-3435
The Victory Bancorp, Inc.
548 N. Lewis Rd.
Limerick, PA 19468
| CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||
| Sept 30, | Dec 31, | Sept 30, | |||||||||||
| Selected Financial Data | 2025 | 2024 | 2024 | ||||||||||
| Investment securities | $ | 40,850 | $ | 44,642 | $ | 46,110 | |||||||
| Loans, net of allowance for credit losses | 392,111 | 390,954 | 395,213 | ||||||||||
| Total assets | 488,219 | 461,024 | 467,939 | ||||||||||
| Deposits | 436,743 | 397,080 | 398,169 | ||||||||||
| Borrowings | 0 | 15,440 | 24,692 | ||||||||||
| Subordinated debt | 17,359 | 17,309 | 12,851 | ||||||||||
| Stockholders' equity | $ | 31,650 | $ | 29,337 | $ | 29,437 | |||||||
| Book value per common share | $ | 15.85 | $ | 14.84 | $ | 14.89 | |||||||
| Allowance/loans | 0.88% | 0.92% | 0.91% | ||||||||||
| Nonperforming assets/total assets | 0.00% | 0.05% | 0.04% | ||||||||||
3 Months Ended | |||||||||||||
| Sept 30, | Dec 31, | Sept 30, | |||||||||||
| Selected Operations Data | 2025 | 2024 | 2024 | ||||||||||
| Interest income | $ | 7,475 | $ | 7,281 | $ | 7,526 | |||||||
| Interest expense | 3,786 | 3,886 | 4,064 | ||||||||||
| Net interest income | 3,689 | 3,395 | 3,462 | ||||||||||
| Provision for loan losses | (15 | ) | (32 | ) | 71 | ||||||||
| Other income | 223 | 299 | 239 | ||||||||||
| Other expense | 3,472 | 3,000 | 2,895 | ||||||||||
| Income before income taxes | 455 | 726 | 735 | ||||||||||
| Income taxes | (97 | ) | (168 | ) | (149 | ) | |||||||
| Net income | $ | 358 | $ | 558 | $ | 586 | |||||||
| Earnings per common share (basic) | $ | 0.18 | $ | 0.28 | $ | 0.30 | |||||||
| Earnings per common share (diluted) | $ | 0.17 | $ | 0.28 | $ | 0.29 | |||||||
| Return on average assets (annualized) | 0.29% | 0.48% | 0.50% | ||||||||||
| Return on average equity (annualized) | 4.57% | 7.58% | 8.14% | ||||||||||
| Net charge-offs(recoveries)/average loans | (0.01)% | 0.00% | 0.00% |
FAQ**
Given the increase in other expenses due to the merger, how does Victory Bancorp Inc VTYB plan to manage costs post-merger to stabilize net income moving forward?
With total deposits growing to $436.74 million, what strategies does Victory Bancorp Inc VTYB have in place to maintain this momentum in deposit growth?
How does Victory Bancorp Inc VTYB intend to address the decline in return on average assets and equity in the upcoming quarters after factoring in merger-related expenses?
What measures will Victory Bancorp Inc VTYB implement to ensure the strong credit quality and loan metrics continue despite the increasing competitive landscape in the banking sector?
**MWN-AI FAQ is based on asking OpenAI questions about Victory Bancorp Inc (OTC: VTYB).
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