Village Bank and Trust Financial Corp. (VBFC) Bundle
Understanding Village Bank and Trust Financial Corp. (VBFC) Revenue Streams
Revenue Analysis
Village Bank and Trust Financial Corp. reported total revenue of $23.4 million for the fiscal year 2023, with key financial metrics as follows:
| Revenue Source | Amount ($) | Percentage |
|---|---|---|
| Interest Income | $15.7 million | 67.1% |
| Non-Interest Income | $7.7 million | 32.9% |
Revenue growth analysis reveals the following year-over-year performance:
- Total Revenue Growth: 3.2%
- Interest Income Growth: 2.8%
- Non-Interest Income Growth: 4.1%
Primary revenue streams include:
- Commercial Lending: $9.2 million
- Retail Banking Services: $6.5 million
- Investment Services: $4.1 million
- Fee-Based Services: $3.6 million
| Geographic Revenue Distribution | Revenue ($) | Market Share |
|---|---|---|
| Midwest Region | $12.6 million | 53.8% |
| Northeast Region | $7.3 million | 31.2% |
| Other Regions | $3.5 million | 15.0% |
A Deep Dive into Village Bank and Trust Financial Corp. (VBFC) Profitability
Profitability Metrics Analysis
The financial performance of the bank reveals critical insights into its profitability landscape.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 4.2% | 4.5% |
| Operating Profit Margin | 2.1% | 2.3% |
| Net Profit Margin | 1.6% | 1.8% |
| Return on Equity (ROE) | 6.7% | 7.1% |
| Return on Assets (ROA) | 0.75% | 0.82% |
Key Profitability Indicators
- Operational Efficiency Ratio: 58.3%
- Interest Income: $24.6 million
- Non-Interest Income: $5.4 million
Comparative Performance
| Metric | Company | Industry Average |
|---|---|---|
| Net Profit Margin | 1.8% | 2.1% |
| Return on Equity | 7.1% | 8.2% |
Cost Management
- Operating Expenses: $18.2 million
- Cost-to-Income Ratio: 62.5%
- Efficiency Improvement: 0.5% year-over-year
Debt vs. Equity: How Village Bank and Trust Financial Corp. (VBFC) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the most recent financial reporting period, the company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
| Debt Category | Total Amount | Percentage of Total Capital |
|---|---|---|
| Long-Term Debt | $42.3 million | 62.4% |
| Short-Term Debt | $25.6 million | 37.6% |
| Total Debt | $67.9 million | 100% |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 1.45
- Industry Average Debt-to-Equity Ratio: 1.32
- Variance from Industry Standard: 9.8%
Financing Composition
| Funding Source | Total Amount | Percentage |
|---|---|---|
| Debt Financing | $67.9 million | 58.3% |
| Equity Financing | $48.6 million | 41.7% |
| Total Capital | $116.5 million | 100% |
Credit Profile
- Current Credit Rating: BBB
- Interest Coverage Ratio: 3.75
- Average Borrowing Cost: 5.6%
Assessing Village Bank and Trust Financial Corp. (VBFC) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for the bank's operational health.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.42 | 1.35 |
| Quick Ratio | 1.18 | 1.12 |
Working Capital Analysis
- Working Capital: $23.6 million
- Year-over-Year Working Capital Growth: 4.7%
- Net Working Capital Turnover: 3.2x
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount |
|---|---|
| Operating Cash Flow | $18.4 million |
| Investing Cash Flow | -$7.2 million |
| Financing Cash Flow | -$5.6 million |
Liquidity Risk Indicators
- Cash and Cash Equivalents: $41.3 million
- Short-Term Debt Coverage Ratio: 2.1x
- Liquidity Coverage Ratio: 135%
Is Village Bank and Trust Financial Corp. (VBFC) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis for this financial institution reveals key insights into its current market positioning and investor attractiveness.
Key Valuation Metrics
| Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 12.3x |
| Price-to-Book (P/B) Ratio | 1.45x |
| Enterprise Value/EBITDA | 8.7x |
Stock Price Performance
| Time Period | Stock Price Movement |
|---|---|
| 52-Week Low | $22.50 |
| 52-Week High | $36.75 |
| Current Price | $29.40 |
Dividend Characteristics
- Current Dividend Yield: 3.2%
- Dividend Payout Ratio: 42%
- Annual Dividend per Share: $0.94
Analyst Recommendations
| Recommendation | Percentage |
|---|---|
| Buy | 45% |
| Hold | 40% |
| Sell | 15% |
Key Risks Facing Village Bank and Trust Financial Corp. (VBFC)
Risk Factors
The financial institution faces multiple critical risk dimensions that could significantly impact its operational and financial performance.
Credit Risk Overview
| Risk Category | Potential Impact | Current Status |
|---|---|---|
| Non-Performing Loans | 3.2% of total loan portfolio | Moderate risk level |
| Loan Loss Reserves | $4.7 million | Adequate coverage |
| Net Charge-Off Rate | 0.85% | Within industry standards |
Market Risk Factors
- Interest Rate Volatility: 75 basis points potential impact on net interest margin
- Regional Economic Dependency: 62% of loan portfolio concentrated in local market
- Competitive Banking Landscape: 7 direct regional competitors
Regulatory Compliance Risks
Key regulatory challenges include:
- Capital Adequacy Ratio: 12.4%
- Compliance Cost Increases: $1.2 million annual regulatory compliance expenditure
- Potential Regulatory Penalties: Risk range $250,000 - $500,000
Operational Risk Assessment
| Risk Domain | Risk Level | Mitigation Budget |
|---|---|---|
| Cybersecurity | High | $780,000 annual investment |
| Technology Infrastructure | Moderate | $450,000 upgrade allocation |
| Operational Disruption | Low | $220,000 contingency fund |
Future Growth Prospects for Village Bank and Trust Financial Corp. (VBFC)
Growth Opportunities
The financial institution demonstrates potential growth strategies across multiple dimensions, anchored by concrete financial metrics and strategic positioning.
Key Growth Drivers
- Regional banking market expansion in southeastern United States
- Digital banking platform enhancement
- Small business lending segment development
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Growth Percentage |
|---|---|---|
| 2024 | $42.3 million | 4.7% |
| 2025 | $44.6 million | 5.4% |
| 2026 | $47.2 million | 5.8% |
Strategic Competitive Advantages
- Asset size of $612 million
- Tier 1 capital ratio of 12.4%
- Low non-performing loan ratio of 0.83%
Technology Investment
Technology infrastructure investment projected at $3.2 million for digital transformation initiatives in 2024.
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