The Victory Bancorp, Inc. Announces Third Quarter Earnings

Third Quarter Highlights

Net Income of $1.2 million for the quarter

Net Interest Margin expanded to 4.06% in 3Q22 compared to 3.51% in 3Q21

Book value per common share is $12.98

$1.4 million increase in stockholders’ equity since September 30, 2021

$0.065 per share cash dividend paid to shareholders

The Victory Bancorp, Inc. (OTCQX: VTYB) announced unaudited results for the quarter ended September 30, 2022. Highlights include interest income increase of $825 thousand and a $1.3 million increase in stockholders’ equity at September 30, 2022, compared to September 30, 2021. Net income was $1.2 million, totaling approximately $0.56 per common share fully diluted. The Company paid a cash dividend totaling $0.065 per share for the quarter ended September 30, 2022. Book value per share as of September 30, 2022, was $12.98.

Deposits remained steady at $394 million at September 30, 2022. Net Loans increased $42 million, net of Paycheck Protection Program loans, to $312 million at September 30, 2022, from $270 million at September 30, 2021, and total assets were $437 million.  Credit quality remained strong. Third-quarter provision for loan losses increased slightly to $43 thousand in 2022, from $21 thousand in 2021, and non-performing assets dropped to $114 thousand at September 30, 2022, compared with $195 thousand at year-end 2021.

Unrealized investment portfolio losses, flowing through Accumulated Other Comprehensive Loss, were at $2.3 million at quarter end compared to $1.1 million in the prior quarter. This resulted in a book value per common share of $12.98 on September 30, 2022, versus $13.11 in the prior quarter and $12.43 for the third quarter of 2021. Absent this accounting adjustment, Tier 1 book value per share stood at $14.17 on September 30, 2022.

Bank Leader, Joseph W. Major, stated, “We are pleased with the continued growth of the bank and are enjoying another record earning quarter while approaching half of a billion dollars in total assets. Results show a continuing trend in our growth and improved earnings. Our success is based on having a clear strategy and consistent implementation, rather than being distracted by every current trend. We strive to deliver first-class banking services by attracting, training, and retaining what we believe is a markedly superior workforce to ultimately provide an exceptional client experience.”

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.

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.