Victory Bancorp, Inc. Announces Q3 2025 Financial Results
The Victory Bancorp, Inc. (OTCQX: VTYB), parent company of The Victory Bank, has shared its financial performance for the quarter ending September 30, 2025. The financial results illustrate the company's robust growth, despite facing challenges during this period.
Financial Highlights
Net Income: For the third quarter ending September 30, 2025, Victory Bancorp reported a net income of $358,000. This reflects a downturn from previous quarters, influenced largely by a rise in operational expenses due to preparations for an upcoming merger with QNB, which was formalized in September 2025. The merger-related expenses for this quarter accounted for $374,000.
Interest Income Growth
Contrasting with the general trend, the bank's net interest income rose from $3.46 million during Q3 2024 to $3.70 million in Q3 2025. This indicates that the bank's primary revenue stream remains stable and shows positive potential.
Key Performance Metrics
Return on average assets (ROAA) fell to 0.29%, down from 0.50% in the previous year. Moreover, return on average equity (ROAE) decreased to 4.57%, compared to previous values of 9.07% and 8.14% in the same period last year. However, when excluding the merger-related expenses, the ROAE would have been 8.07%.
Deposits and Equity
In a move to enhance its market presence, the bank opened a new branch in Horsham during spring 2025. This expansion has significantly contributed to deposit growth, which totals $436.74 million as of September 30, 2025 — an impressive increase of $38.57 million compared to the same time last year.
Book Value and Stockholder Equity
The book value per share rose to $15.85 by the end of Q3 2025, a positive sign indicating growth from $14.84 at the end of 2024. Stockholders' equity also saw an upward trend, climbing to $31.65 million as of the quarter's end, compared to $29.34 million at year-end 2024.
Credit Quality Metrics
Victory Bancorp managed to maintain strong credit quality throughout the quarter. There were no reported nonperforming assets, and the net charge-offs remained at a mere negative percentage, indicating a net recovery of loans. The allowance for credit losses compared to total loans sat at a sensible 0.88%, demonstrating prudent risk management.
Earnings Performance
The earnings per share for basic and diluted shares were reported at $0.18 and $0.17 respectively for Q3 2025, a noticeable drop from $0.30 and $0.29 in the corresponding quarter last year. However, if one were to exclude the merger-related costs, these figures would instead reflect $0.33 and $0.31.
Chairman and CEO Joseph W. Major provided insights into the quarter's performance, stating, "Victory Bancorp continues to demonstrate disciplined growth and a commitment to strong financial performance. Our deposit base has expanded robustly, showcasing the effectiveness of our relationship-driven customer approach. Furthermore, we strive to maintain a sound financial position, benefiting our valued shareholders. Our book value advancing to $15.85 represents our commitment to enhancing shareholder value."
Future Outlook
Looking forward, Major emphasized the company’s strategic focus and community-centered culture, asserting that these principles would facilitate ongoing progress and resilience in the bank's operations. The recent branch opening in Horsham is expected to foster more opportunities for delivering top-notch services to both businesses and individual customers.
Contact Information
For additional information, parties interested may reach out to:
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
Frequently Asked Questions
What were the net earnings for Victory Bancorp in Q3 2025?
The net earnings reported for Victory Bancorp in Q3 2025 were $358,000.
How much did the deposits grow?
Total deposits grew to $436.74 million, marking an increase of $38.57 million year-on-year.
What is the book value per share for Q3 2025?
The book value per common share reached $15.85 as of September 30, 2025.
What was the impact of the merger on earnings?
The merger-related expenses significantly impacted earnings, leading to a lower reported earnings per share compared to the prior year.
Who should I contact for Investor Relations?
You can contact Owen Magers, Investor Relations, at 484-791-3435 for any inquiries.
