Village Bank and Trust Financial (VBFC) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $1,486,000, or $0.99 per fully diluted share, a decrease from $1,692,000, or $1.14 per fully diluted share in Q4 2023[2] - For the year ended December 31, 2024, net income was $7,017,000, or $4.69 per fully diluted share, compared to $1,918,000, or $1.29 per fully diluted share for the year ended December 31, 2023[2] - Net income for the year ended December 31, 2024, was $7,017, an increase from $1,918 in 2023, representing a growth of 265%[31] - Basic earnings per share for the year ended December 31, 2024, was $4.69, significantly higher than $1.29 in 2023, marking a growth of 263%[31] - Adjusted net income for Q4 2024, excluding merger-related expenses, would have been $2,222,000, or $1.48 per share[7] - For the year ended December 31, 2024, adjusted net income, excluding merger-related expenses, would have been $7,753,000, or $5.19 per share[8] - Noninterest income for the year ended December 31, 2024, was $5,886, a recovery from a loss of $36 in 2023[31] Loan and Deposit Growth - The commercial bank grew loans by 8.71% and deposits by 2.33% during 2024[5] - Total loans increased by $4,092,000, or 0.67%, from Q3 2024, and increased by $43,856,000, or 7.63%, from Q4 2023[14] - The commercial loan portfolio increased by $3,142,000, or 0.67%, from Q3 2024 and increased by $44,546,000, or 10.50%, from Q4 2023[15] - The consumer/residential loan portfolio grew by $1,967,000 or 1.51%, from Q3 2024 and increased by $4,099,000, or 3.19%, from Q4 2023[15] - Total deposits decreased by $26,778,000, or 4.14%, from Q3 2024, and increased by $14,077,000, or 2.33%, from Q4 2023[21] Interest and Noninterest Income - Interest income for the year ended December 31, 2024, reached $39,990, up from $33,274 in 2023, reflecting a year-over-year increase of 20.5%[31] - Net interest income before provision for credit losses for the three months ended December 31, 2024, was $7,322, compared to $6,685 for the same period in 2023, indicating an increase of 9.5%[29] Expenses and Charges - The Company incurred $932,000 in pre-tax merger-related expenses for both Q4 2024 and the year ended December 31, 2024[7][8] - Noninterest expense for the Commercial Banking Segment was $6,239,000 for Q4 2024, impacted by merger-related expenses and increased staffing costs[10] - Noninterest expense for the year ended December 31, 2024, was $24,473, compared to $23,037 in 2023, reflecting an increase of 6.2%[31] Credit Quality - The allowance for credit losses on loans to total loans ratio is 0.60%, compared to the peer average of 1.13%[19] - The Bank's net charge-offs to average loans ratio was 0.00% for Q4 2024, indicating stable credit quality[16] - The Company did not record a provision for credit losses on loans for the three months ended December 31, 2024, due to stable local economic conditions[18] Merger and Future Outlook - The Company anticipates closing the merger with TowneBank in the first quarter of 2025, pending regulatory approval[4]