The Victory Bancorp, Inc. Third Quarter Earnings

Third Quarter Highlights

• Book value per share increased to $12.43

• $3.3 million increase in stockholders’ equity since September 30, 2020

• $0.05 per share cash dividend paid to shareholders

• Deposit growth to $398 million

• Organic loan growth of $31 million since September 30, 2020

• Total assets reach $447 million

LIMERICK, Pa., Oct. 26, 2021 (GLOBE NEWSWIRE) -- The Victory Bancorp, Inc. (OTCQX: VTYB) announced unaudited results for the quarter ended September 30, 2021. Highlights include asset growth of $15.6 million and a $3.3 million increase in stockholders’ equity at September 30, 2021, compared to September 30, 2020. Net income increased $353 thousand to $896 thousand for the quarter ended September 30, 2021, compared to the quarter ended September 30, 2020, totaling $.44 per common share, fully diluted. The Company paid a cash dividend totaling $0.05 per share during the quarter ended September 30, 2021. Book value per share increased to $12.43.

Deposits grew to $398 million at September 30, 2021, from $323 million at September 30, 2020, a 23.2% increase. $31 million of organic loan growth was offset in part by $28 million of PPP loan payoffs, resulting in Net Loan growth of 0.9% to $302 million at September 30, 2021, from $299 million at September 30, 2020, and total assets increased by $15.6 million to $447 million as of September 30, 2021, increasing by 3.6% over one year.

Credit quality remained stable. Third-quarter provision for loan losses was reduced to $21 thousand in 2021, from $229 thousand in 2020.

Bank Leader, Joseph W. Major, stated, “The bank experienced another strong quarter with growth in profitability leading to steady credit results. We have lent over 1 Billion dollars since our inception, demonstrating our steadfast commitment to the communities we serve. Our mission to provide high-quality service has not waivered and is evidenced by the overwhelming support of our clients. As we look to the future, we will be expanding our lending market area to build upon our status as a niche-business lender.

The Victory Bancorp, Inc. is traded on the OTCQX market under the symbol VTYB (https://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.

Contact:

Joseph W. Major,
Chairman and Chief Executive Officer

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

Kelly Taylor,
Investor Relations
610-948-9000

The Victory Bancorp, Inc
548 N. Lewis Rd.
Limerick, PA 19468

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
(dollars in thousands, except per share data)
					September 30,			December 31,			September 30,
Selected Financial Data					2021			2020			2020
Securities available-for-sale				$	18,341		$	13,306		$	11,536
Loans, net of allowance for loan losses					302,024			283,618			299,351
Total assets					446,869			429,425			431,310
Deposits					397,696			337,013			322,889
Borrowings					10,500			51,481			68,610
Subordinated debt					12,771			17,709			17,700
Stockholders' equity					24,231			22,022			20,962
Book value per common share				$	12.43		$	11.29		$	10.75
Allowance/loans					1.09%			1.10%			0.90%
Nonperforming assets/total assets					0.03%			0.04%			0.03%
				Three months ended
					September 30,			December 31,			September 30,
Selected Operations Data					2021			2020			2020
Interest income				$	4,376		$	4,312		$	3,828
Interest expense					621			822			959
Net interest income					3,755			3,490			2,869
Provision for loan losses					21			51			229
Other income					131			217			136
Other expense					2,723			2,380			2,078
Income before income taxes					1,142			1,276			698
Income taxes					(246	)		(283	)		(155	)
Net income				$	896		$	993		$	543
Earnings per common share (basic)				$	0.46		$	0.51		$	0.28
Earnings per common share (diluted)				$	0.44		$	0.50		$	0.28
Return on average assets (annualized)					0.78%			0.92%			0.51%
Return on average equity (annualized)					15.02%			18.48%			10.46%
Net charge-offs(recoveries)/average loans					0.00%			0.34%			0.02%