Village Bank & Trust Financial Corp. reported significant financial improvements in its third quarter and year-to-date results for 2024, as detailed in its recent 10-Q filing. For the three months ended September 30, 2024, the bank achieved a net income of $2.1 million, a substantial recovery from a net loss of $2.6 million in the same period of 2023. This positive trend continued for the nine months ended September 30, 2024, with net income reaching $5.5 million, compared to just $226,000 in the prior year.
Total revenues for Q3 2024 increased to $11.7 million, up from $9.8 million in Q3 2023, driven primarily by a rise in net interest income, which grew to $7.1 million from $6.1 million year-over-year. The net interest margin expanded to 3.95%, reflecting a 49 basis point increase, attributed to a higher yield on earning assets, which rose to 5.77%. The cost of interest-bearing liabilities also increased, but the overall growth in interest income outpaced these costs.
The bank's total assets as of September 30, 2024, stood at $759.5 million, up from $736.6 million at the end of 2023. Total loans increased to $614.8 million, compared to $575.0 million at year-end 2023, with notable growth in commercial real estate and construction loans. Total deposits also rose significantly, reaching $646.2 million, an increase of $40.9 million from December 31, 2023.
In terms of credit quality, the allowance for credit losses increased to $4.03 million, reflecting the bank's proactive approach to managing potential loan defaults. Nonaccrual loans rose slightly to $369,000, while the ratio of nonperforming loans to total loans was 0.06%, indicating stable credit quality.
Strategically, Village Bank announced a planned merger with TowneBank, expected to close in the first quarter of 2025, which will provide shareholders with $80.25 per share in cash. This merger is anticipated to enhance the bank's market position and operational scale.
Overall, Village Bank & Trust Financial Corp. demonstrated robust financial performance in Q3 2024, marked by increased revenues, improved profitability, and strategic growth initiatives, positioning the bank favorably for future developments.
About Village Bank & Trust Financial Corp.
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