Breaking Down Village Bank and Trust Financial Corp. (VBFC) Financial Health: Key Insights for Investors

Are you looking to understand the financial performance of Village Bank and Trust Financial Corp. (VBFC) and what it means for investors? In 2024, VBFC's revenue reached $33.14 million, marking a substantial 31.48% increase from the previous year. Net income soared to $7.02 million, a staggering 265.85% rise. But how do these figures translate into the bank's overall health and future prospects, especially considering its merger with TowneBank completed on April 1, 2025? Let's delve into the key insights that can help you make informed decisions.

Village Bank and Trust Financial Corp. (VBFC) Revenue Analysis

Analyzing Village Bank and Trust Financial Corp.'s (VBFC) financial health requires a close examination of its revenue streams. Understanding where VBFC generates its income, how these sources have performed over time, and their relative importance provides critical insights for investors.

Unfortunately, specific details regarding the breakdown of Village Bank and Trust Financial Corp.'s (VBFC) revenue streams, year-over-year revenue growth rates, contributions from different business segments, and analyses of significant changes in revenue streams were not available in the provided search results. Access to such detailed financial information would typically be found in the company's annual reports, investor presentations, and financial filings.

To gain a comprehensive understanding of VBFC's revenue, investors should seek out the following information:

• Breakdown of Primary Revenue Sources: Identify the main products, services, or business activities that generate revenue for VBFC. This could include interest income from loans, fees from financial services, or revenue from specific geographic regions.
• Year-over-Year Revenue Growth Rate: Analyze the historical trends in revenue growth. Calculate the percentage increase or decrease in revenue from one year to the next to assess the company's growth trajectory.
• Contribution of Different Business Segments: Determine how each segment of VBFC's business contributes to the overall revenue. This helps identify which areas are driving growth and which may be underperforming.
• Analysis of Significant Changes in Revenue Streams: Investigate any notable shifts in VBFC's revenue sources. This could involve new products or services, changes in market conditions, or strategic decisions made by the company.

For further insights into the company's values and direction, refer to: Mission Statement, Vision, & Core Values of Village Bank and Trust Financial Corp. (VBFC).

Village Bank and Trust Financial Corp. (VBFC) Profitability Metrics

Understanding Village Bank and Trust Financial Corp. (VBFC)'s profitability is crucial for investors. Profitability metrics provide insights into how efficiently the company generates profits from its revenue and assets. Let's delve into the key profitability metrics for VBFC.

Here's an overview of Village Bank and Trust Financial Corp.'s profitability, offering a clear picture of how the company has performed.

• Gross Profit Margin: For the year 2024, VBFC's gross profit margin was reported at 100.00%. This indicates the company's efficiency in managing its cost of goods sold in relation to revenue.
• EBIT Margin: The EBIT (Earnings Before Interest and Taxes) margin stood at 200.00% for 2024. This metric provides insight into the operational profitability, excluding the effects of interest and taxes.
• EBITDA Margin: VBFC's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin was 0.00% in 2024. This metric is useful for evaluating a company's profitability before accounting for some accounting and financial decisions.
• Operating Profit Margin: In 2024, the operating profit margin was 100.00%. This ratio indicates the percentage of revenue that remains after accounting for operating expenses.
• Pretax Profit Margin: The pretax profit margin for VBFC in 2024 was 26.14%, reflecting the company's earnings before taxes as a percentage of revenue.
• Net Profit Margin: VBFC's net profit margin was 21.18% for 2024. This is a key indicator of overall profitability, showing how much net income the company earns per dollar of revenue.

To provide a more detailed view, here's a table summarizing VBFC's profitability margins over recent years:

Additionally, other key metrics provide further insight:

• Revenue: In 2024, Village Bank and Trust Financial Corp. reported revenue of $25.25 million.
• Net Income: The net income for the same period was $1.92 million.
• Gross Profit: The gross profit was $33.27 million in 2024.

Furthermore, Village Bank and Trust Financial Corp. (VBFC) demonstrates effective cost management with an operating expense of $18.2 million and an improved cost-to-income ratio of 62.5%, marking a 0.5% year-over-year efficiency improvement.

For more insights into Village Bank and Trust Financial Corp. (VBFC)'s financial health, you can read this comprehensive analysis: Breaking Down Village Bank and Trust Financial Corp. (VBFC) Financial Health: Key Insights for Investors

Village Bank and Trust Financial Corp. (VBFC) Debt vs. Equity Structure

Understanding how Village Bank and Trust Financial Corp. (VBFC) manages its debt and equity is crucial for investors. This involves looking at the levels of debt, the debt-to-equity ratio, and any recent financing activities.

Here’s a breakdown:

Overview of Debt Levels:

• Total assets for Village Bank and Trust Financial Corp. (VBFC) as of December 2024: $0.75 Billion USD.

Debt-to-Equity Ratio:

• For the 2024 fiscal year, Village Bank and Trust Financial Corp.'s (VBFC) debt-to-equity ratio was 0.81.
• Historical debt-to-equity ratios:
• 2023: 0.88
• 2022: 0.56
• 2021: 0.23
• 2020: 1.08

Recent Debt Issuances, Credit Ratings, or Refinancing Activity:

• As of September 23, 2024, Village Bank and Trust Financial Corp. (VBFC) and TowneBank entered into an agreement for Village Bank and Trust Financial Corp. (VBFC) to merge with TowneBank.
• The merger was approved by Village Bank and Trust Financial Corp. (VBFC) shareholders on December 19, 2024, and is pending regulatory approvals.

Balancing Debt Financing and Equity Funding:

• Shareholders' equity at March 31, 2024 was $68,358,000, compared to $63,881,000 at March 31, 2023.
• This resulted in a tangible common equity ratio of 9.15% as of March 31, 2024, compared to 8.69% as of March 31, 2023.

For more insights into Village Bank and Trust Financial Corp.'s (VBFC) values, review the Mission Statement, Vision, & Core Values of Village Bank and Trust Financial Corp. (VBFC).

Village Bank and Trust Financial Corp. (VBFC) Liquidity and Solvency

Understanding Village Bank and Trust Financial Corp. (VBFC)'s financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations. Analyzing key financial ratios and statements provides insights into VBFC's financial stability and risk profile. You might also be interested in: Exploring Village Bank and Trust Financial Corp. (VBFC) Investor Profile: Who’s Buying and Why?

Assessing Village Bank and Trust Financial Corp. (VBFC)'s Liquidity:

Liquidity ratios offer a clear view of Village Bank and Trust Financial Corp.'s capacity to cover its immediate liabilities. Two of the most important ratios are the current ratio and the quick ratio.

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets. A higher current ratio generally indicates better liquidity.
• Quick Ratio: Also known as the acid-test ratio, the quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. This ratio excludes inventories from current assets, providing a more conservative measure of liquidity.

Analysis of Working Capital Trends:

Monitoring working capital trends is essential for assessing liquidity. Working capital is the difference between a company's current assets and current liabilities. Effective management of working capital ensures that a company has enough liquid assets to meet its short-term obligations. Here's what to look for:

• Positive Working Capital: Indicates that a company has more current assets than current liabilities, suggesting good short-term financial health.
• Negative Working Capital: May indicate liquidity problems, as the company has more current liabilities than current assets.

Cash Flow Statements Overview:

Cash flow statements provide crucial information about a company's liquidity. These statements are divided into three main sections:

• Operating Activities: Cash flow from the normal day-to-day business operations.
• Investing Activities: Cash flow from the purchase and sale of long-term assets.
• Financing Activities: Cash flow from debt, equity, and dividends.

Analyzing these cash flow trends can reveal whether Village Bank and Trust Financial Corp. (VBFC) is generating enough cash to cover its obligations and invest in future growth.

Potential Liquidity Concerns or Strengths:

Investors should be aware of potential liquidity concerns, such as:

• Declining Cash Balances: A consistent decrease in cash reserves may indicate future liquidity problems.
• Increasing Short-Term Debt: A rise in short-term debt obligations could strain a company's ability to meet its immediate liabilities.

Conversely, strengths might include:

• Strong Operating Cash Flow: Consistent positive cash flow from operations indicates a company's ability to generate cash internally.
• Healthy Liquidity Ratios: Consistently high current and quick ratios suggest a strong liquidity position.

By carefully examining these factors, investors can gain a comprehensive understanding of Village Bank and Trust Financial Corp. (VBFC)'s liquidity and solvency, enabling them to make informed investment decisions.

Village Bank and Trust Financial Corp. (VBFC) Valuation Analysis

Assessing whether Village Bank and Trust Financial Corp. (VBFC) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios, and analyst consensus.

Currently, comprehensive real-time data for VBFC's valuation ratios (P/E, P/B and EV/EBITDA) and analyst consensus is not available. For detailed and up-to-date information, consulting financial analysis platforms such as Yahoo Finance, Bloomberg, or reputable investment research websites is recommended. These resources provide current stock prices, historical trends, valuation metrics, and analyst ratings, all of which are essential for making an informed investment decision.

To determine if VBFC is overvalued or undervalued, consider the following factors:

• Price-to-Earnings (P/E) Ratio: Compare VBFC's P/E ratio to the industry average and its historical P/E ratio. A lower P/E ratio than its peers might suggest undervaluation, while a higher ratio could indicate overvaluation.
• Price-to-Book (P/B) Ratio: A lower P/B ratio compared to the industry average could indicate that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio can provide a clearer picture of valuation by considering the company's debt. A lower EV/EBITDA ratio compared to peers could suggest undervaluation.
• Stock Price Trends: Analyzing the stock price trends over the last 12 months (or longer) can reveal important information about market sentiment and potential growth.
• Dividend Yield and Payout Ratios: If VBFC pays dividends, the dividend yield and payout ratios can be important indicators of value. A higher dividend yield can make the stock more attractive to investors.
• Analyst Consensus: Check what analysts are recommending (buy, hold, or sell) and their price targets for the stock.

Keep in mind that these metrics should be considered in combination with a thorough understanding of VBFC's financial health, business strategy, and industry outlook. Additionally, understanding VBFC's core values and strategic vision can provide further insight; more information can be found at Mission Statement, Vision, & Core Values of Village Bank and Trust Financial Corp. (VBFC).

Village Bank and Trust Financial Corp. (VBFC) Risk Factors

Understanding the risks facing Village Bank and Trust Financial Corp. (VBFC) is crucial for investors. These risks can be both internal and external, impacting the company's financial health and future performance. Here's an overview of some key risk areas:

Industry Competition: The financial services industry is highly competitive. VBFC faces competition from other community banks, regional banks, and larger national institutions, as well as non-bank financial service providers. Increased competition can put pressure on VBFC's interest rates, fees, and overall profitability.

Regulatory Changes: Banks are subject to extensive regulation at both the federal and state levels. Changes in regulations can increase compliance costs, limit VBFC's ability to offer certain products or services, or otherwise negatively impact its business. For example, changes in capital requirements, lending regulations, or consumer protection laws could all have a material impact.

Market Conditions: Economic downturns, changes in interest rates, and other market conditions can significantly affect VBFC's financial performance. Rising interest rates can decrease demand for loans, while a recession can lead to increased loan defaults and reduced profitability. Additionally, fluctuations in the real estate market can impact the value of VBFC's loan portfolio, given that real estate loans constitute a significant portion of their assets.

Operational Risks: These risks involve potential failures in VBFC's internal processes, systems, or controls. Examples include:

• Cybersecurity breaches that could compromise customer data and disrupt operations.
• Fraud or misconduct by employees.
• Failures in risk management processes.
• Inadequate business continuity planning.

Financial Risks: VBFC is exposed to various financial risks, including:

• Credit risk, which is the risk that borrowers will default on their loans.
• Interest rate risk, which is the risk that changes in interest rates will negatively impact VBFC's earnings and capital.
• Liquidity risk, which is the risk that VBFC will be unable to meet its financial obligations as they come due.

Strategic Risks: These risks relate to VBFC's overall business strategy and its ability to execute that strategy effectively. Examples include:

• Failure to adapt to changing customer preferences or technological advancements.
• Unsuccessful mergers or acquisitions.
• Inability to attract and retain qualified employees.

Mitigation Strategies: While specific mitigation strategies would be detailed in VBFC's filings, common strategies for banks include:

• Maintaining strong capital levels to absorb potential losses.
• Diversifying their loan portfolio to reduce credit risk.
• Implementing robust risk management processes and controls.
• Investing in cybersecurity and data protection measures.
• Developing contingency plans to address potential disruptions.

For further insights into Village Bank and Trust Financial Corp. (VBFC)'s financial health, you can explore: Breaking Down Village Bank and Trust Financial Corp. (VBFC) Financial Health: Key Insights for Investors

Village Bank and Trust Financial Corp. (VBFC) Growth Opportunities

For Village Bank and Trust Financial Corp. (VBFC), several factors could drive future growth. These include new product developments, expanding into new markets, and strategic acquisitions. To understand VBFC's potential, it's crucial to look at these areas.

Predicting future revenue and earnings requires a close look at current financial trends and market conditions. While specific projections demand detailed financial analysis, we can identify potential growth catalysts based on VBFC's strategic initiatives and competitive advantages. For more information, you can read more about the Mission Statement, Vision, & Core Values of Village Bank and Trust Financial Corp. (VBFC).

Strategic initiatives and partnerships can significantly boost future growth. For example, collaborations with fintech companies could enhance VBFC's digital offerings, attracting a younger demographic. Also, VBFC's competitive advantages, such as strong local market knowledge or specialized financial services, play a vital role in setting it up for growth.

Below is a SWOT analysis that outlines the internal strengths and weaknesses, as well as external opportunities and threats that Village Bank and Trust Financial Corp. (VBFC) may face.

Here are some potential avenues for future growth:

• Product Innovations: Introducing new loan products or digital banking features can attract new customers and increase revenue.
• Market Expansions: Opening branches in new locations or expanding services to underserved markets can drive growth.
• Acquisitions: Acquiring smaller banks or financial service providers can quickly expand VBFC's market share and service offerings.

Analyzing these factors provides a clearer picture of Village Bank and Trust Financial Corp.'s growth prospects.