The Victory Bancorp, Inc. Announces Pricing and Closing of Private Placement of Subordinated Notes

The Victory Bancorp, Inc. (OTCQX: VTYB), the holding company for The Victory Bank, (together, the “Company”), today announced the pricing and closing of a private placement (the “Offering”) of $4.65 million aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”). Proceeds from the sale of the Notes will be utilized for general corporate purposes, including, but not limited to, funding organic and future strategic growth initiatives, broadening balance sheet flexibility and supporting bank regulatory capital ratios. 

The Notes will initially bear interest at 8.50% per annum, from and including the original issue date of the subordinated notes to but excluding December 31, 2026, payable semi-annually in arrears. From December 31, 2026 through maturity, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus a spread, payable quarterly in arrears. On or after the second anniversary of the original issue date through maturity, the Notes may be redeemed, at the Company's option, on any scheduled interest payment date.  The Notes will mature on December 31, 2029. 

Joseph W. Major, Bank Leader and Chief Executive Officer of the Company stated, “We are excited to announce the successful completion of our capital offering with attractive terms. This offering  is a cost-effective, leverageable Tier 1 bank equity capital instrument that does not dilute the current shareholders.”  Major further stated, “This capital is an important milestone so that  Victory can  continue to support the growth of our organization and strengthen our commitment to serving our local communities.”

Performance Trust Capital Partners served as placement agent in the Offering. Kilpatrick Townsend & Stockton LLP served as legal counsel to the Company. Pillar+Aught served as legal counsel to Performance Trust Capital Partners in the Offering.

About the Company

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 three offices located in Montgomery and Berks Counties, Pennsylvania. Additional information about Victory Bancorp is available on this website.

No Offer or Solicitation

This press release does not constitute an offer to sell, a solicitation of an offer to sell or the solicitation of an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Forward Looking Statements

This press release 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. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

Contact:

Joseph W. Major, Chairman and Chief Executive Officer

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

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