The Victory Bancorp, Inc. 2025 Fourth Quarter Earnings
MWN-AI** Summary
The Victory Bancorp, Inc. (OTCQX: VTYB) reported its financial results for the fourth quarter ending December 31, 2025, highlighting a robust performance characterized by solid earnings, a strong balance sheet, and high asset quality. Net loans increased to $396.3 million, reflecting a year-over-year rise due to ongoing demand for relationship-based lending. Total deposits rose by $15.1 million to reach $412.2 million, contributing to a favorable financial foundation.
Net interest income improved significantly, climbing to $3.82 million from $3.40 million in the same quarter of 2024, primarily due to effective balance sheet management and lower funding costs. However, net income for the quarter decreased to $448 thousand, or $0.22 per share, down from $557 thousand, or $0.28 per share, in the prior year. It's noteworthy that these results include approximately $350 thousand in expenses associated with an upcoming merger. Excluding these costs, the adjusted net income would have been around $725 thousand, representing a more favorable earnings outlook.
Victory Bancorp also demonstrated operational efficiency, as interest expenses declined to $3.56 million from $3.89 million last year. Total stockholders' equity grew to $32.2 million, while the company successfully eliminated all outstanding borrowings, a substantial change from $15.4 million a year prior. Additionally, the allowance for credit losses remained strong at 0.86% of total loans, with nonperforming assets improving to 0.00%.
Joseph W. Major, Chairman and CEO, emphasized the bank's dedication to exceptional asset quality and financial management, reinforcing its commitment to serving local clients. Overall, The Victory Bancorp demonstrated resilience and growth amid a competitive banking landscape.
MWN-AI** Analysis
The Victory Bancorp, Inc. (OTCQX: VTYB) reported a solid fourth quarter for 2025, with several key metrics illustrating the institution's financial steadiness and operational effectiveness. Notably, net loans increased to $396.3 million, driven by persistent demand for relationship-based lending. This growth is a positive indicator, particularly given the competitive landscape for commercial banks. The increase in deposits to $412.2 million further reinforces the bank's liquidity position and customer confidence.
Financially, Victory Bancorp's net interest income rose to $3.82 million, a 12.4% increase from the prior year, showcasing skillful balance sheet management and lower funding costs. The reduction in interest expense to $3.56 million reveals improvements in efficiency, which positively affects profitability despite a slight decline in net income to $448 thousand. Investors should note that the reported earnings were impacted by approximately $350 thousand in merger-related expenses; consequently, adjusted net income suggests stronger underlying performance.
The bank's asset quality remains exceptional, with nonperforming assets reported at 0.00%. This reflects the prudent lending practices adopted by the management and indicates a robust credit environment.
Looking ahead, it's imperative for investors to consider potential impacts from the merger, expected to enhance growth capabilities and market positioning. However, vigilance is warranted as changes in interest rates and economic conditions can influence performance.
Currently trading at a book value of $16.13, the stock appears reasonably priced given its growth potential and solid fundamentals. For investors seeking exposure to community banking, Victory Bancorp offers growth opportunities while maintaining strong asset quality — a rare combination. Long-term holders could benefit from continued improvements in earnings and potential strategic advantages stemming from the forthcoming merger.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
LIMERICK, Pa., Feb. 13, 2026 (GLOBE NEWSWIRE) -- The Victory Bancorp, Inc. (OTCQX: VTYB), the holding company for The Victory Bank, today announced financial results for the fourth quarter ended December 31, 2025, highlighting continued balance sheet strength, solid earnings performance, and exceptional asset quality.
Financial Highlights for the Fourth Quarter 2025:
- Loan Growth: Net loans increased to $396.3 million at December 31, 2025, compared to $391.0 million at December 31, 2024, reflecting continued demand for relationship-based lending.
- Deposit Strength: Deposits totaled $412.2 million, an increase of $15.1 million year-over-year from $397.1 million at December 31, 2024.
- Improved Net Interest Income: Net interest income rose to $3.82 million for the quarter, compared to $3.40 million in the fourth quarter of 2024, driven by disciplined balance sheet management and reduced funding costs.
- On Earnings Performance: Net income for the quarter totaled $448 thousand, or $0.22 per basic share, compared to $557 thousand, or $0.28 per basic share, for the same period in 2024. Earnings increased significantly compared to the third quarter of 2025. Included in fourth quarter 2025 results were approximately $350 thousand in expenses related to the pending merger. Excluding these merger-related expenses, adjusted net income may have been approximately $725 thousand, or $0.36 per basic share.
- Reduced Interest Expense: Interest expense declined to $3.56 million compared to $3.89 million in the fourth quarter of 2024, reflecting improved funding efficiency.
- Stockholders’ Equity Growth: Stockholders’ equity increased to $32.2 million, up from $29.3 million at December 31, 2024.
- Elimination of Borrowings: The Company ended the year with no outstanding borrowings, compared to $15.4 million at December 31, 2024.
- Allowance Coverage: The allowance for credit losses remained strong at 0.86% of loans.
Asset Quality Metrics Continue to Outperform:
- Nonperforming assets to total assets improved to 0.00%, compared to 0.05% at December 31, 2024.
- Net charge-offs to average loans remained minimal at 0.01%.
Bank Leader Statement
Joseph W. Major, Bank Leader, stated:
“Our fourth quarter results reflect the strength of our balance sheet, disciplined financial management, and the unwavering commitment of our team to serving clients while maintaining exceptional asset quality. Total assets stood at $463.5 million at December 31, 2025, and book value per common share remained solid at $16.13, supported by consistent earnings and equity growth.”
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) | |||||||||
| Dec 31, | Sept 30, | Dec 31, | |||||||
| Selected Financial Data | 2025 | 2025 | 2024 | ||||||
| Investment securities | $ | 36,798 | $ | 40,850 | $ | 44,642 | |||
| Loans, net of allowance for credit losses | 396,297 | 392,111 | 390,954 | ||||||
| Total assets | 463,507 | 488,219 | 461,024 | ||||||
| Deposits | 412,181 | 436,743 | 397,080 | ||||||
| Borrowings | 0 | 0 | 15,440 | ||||||
| Subordinated debt | 17,376 | 17,359 | 17,309 | ||||||
| Stockholders' equity | $ | 32,242 | $ | 31,650 | $ | 29,337 | |||
| Book value per common share | $ | 16.13 | $ | 15.85 | $ | 14.84 | |||
| Allowance/loans | 0.86 | % | 0.88 | % | 0.92 | % | |||
| Nonperforming assets/total assets | 0.00 | % | 0.00 | % | 0.05 | % | |||
| 3 Months Ended | |||||||||
| Dec 31, | Sept 30, | Dec 31, | |||||||
| Selected Operations Data | 2025 | 2025 | 2024 | ||||||
| Interest income | $ | 7,373 | $ | 7,475 | $ | 7,281 | |||
| Interest expense | 3,557 | 3,786 | 3,886 | ||||||
| Net interest income | 3,816 | 3,689 | 3,395 | ||||||
| Provision for loan losses | 39 | (15 | ) | (32 | ) | ||||
| Other income | 244 | 223 | 299 | ||||||
| Other expense | 3,451 | 3,472 | 3,001 | ||||||
| Income before income taxes | 570 | 455 | 725 | ||||||
| Income taxes | (122 | ) | (97 | ) | (168 | ) | |||
| Net income | $ | 448 | $ | 358 | $ | 557 | |||
| Earnings per common share (basic) | $ | 0.22 | $ | 0.18 | $ | 0.28 | |||
| Earnings per common share (diluted) | $ | 0.21 | $ | 0.17 | $ | 0.28 | |||
| Return on average assets (annualized) | 0.37 | % | 0.29 | % | 0.48 | % | |||
| Return on average equity (annualized) | 5.60 | % | 4.57 | % | 7.57 | % | |||
| Net charge-offs(recoveries)/average loans | 0.01 | % | -0.01 | % | 0.00 | % |
FAQ**
What strategies is Victory Bancorp Inc VTYB employing to maintain loan growth in light of fluctuating economic conditions and competition in the banking sector?
How does the recent reduction in interest expense contribute to Victory Bancorp Inc VTYB's overall profitability and financial efficiency?
Given the company's strong asset quality metrics, what measures does Victory Bancorp Inc VTYB plan to implement to sustain or improve these standards in the future?
Can you elaborate on the expected impacts of the pending merger on Victory Bancorp Inc VTYB's financial performance, particularly regarding expenses and net income?
**MWN-AI FAQ is based on asking OpenAI questions about Victory Bancorp Inc (OTC: VTYB).
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