FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported
its financial results for the third quarter of 2024.
Third Quarter Selected Financial Highlights
- Enhanced Profitability. Return on average assets for the
quarter ended September 30, 2024 was 0.85%, an increase of 21%,
from 0.70% for the quarter ended September 30, 2023, and increased
10%, from 0.77%, for the linked quarter ended June 30, 2024.
- Increased Net Income. Net income increased compared to
the year ago quarter and prior quarter. Net income totaled $4.7
million, or $0.25 diluted earnings per share, for the quarter ended
September 30, 2024, compared to net income of $4.0 million, or
$0.22 diluted earnings per share, for quarter ended September 30,
2023, and net income of $4.2 million, or $0.23 diluted earnings per
share, for the quarter ended June 30, 2024.
- Continued Improvement in Net Interest Margin. Net
interest margin increased 25 basis points, or 10%, to 2.64% for the
third quarter of 2024, compared to 2.39% for the third quarter of
2023. On a linked quarter basis, net interest margin increased 5
basis points from 2.59% for the three months ended June 30,
2024.
- Solid Credit Quality. Classified loans decreased $19.9
million, or 86%, to $3.2 million at September 30, 2024 compared to
the prior quarter. Nonaccrual loans decreased $744 thousand, or
23%, from prior quarter end, and were 0.16% of total assets at
September 30, 2024. The Company recorded net recoveries of $63
thousand during the third quarter of 2024.
- Sound, Well Capitalized Balance Sheet. All of FVCbank’s
(the “Bank”) regulatory capital components and ratios were well in
excess of thresholds required to be considered "well capitalized",
with total risk-based capital to risk-weighted assets of 14.52% at
September 30, 2024, compared to 13.83% at December 31, 2023. The
tangible common equity ("TCE") to tangible assets ("TA") ratio for
the Bank increased to 10.21% at September 30, 2024, from 9.40% at
September 30, 2023. The Bank’s investment securities are classified
as available-for-sale, and therefore the unrealized losses on these
securities are fully reflected in the TCE/TA ratio.
For the three months ended September 30, 2024, the Company
recorded net income of $4.7 million, or $0.25 diluted earnings per
share, an increase of $630 thousand, compared to $4.0 million, or
$0.22 diluted earnings per shares, for the three months ended
September 30, 2023. Compared to the linked quarter, net income
increased $514 thousand for the three months ended September 30,
2024, from $4.2 million for the three months ended June 30, 2024.
For the nine months ended September 30, 2024, the Company reported
net income of $10.2 million, or $0.55 diluted earnings per share,
an increase of $1.3 million, or 14%, compared to net income of $8.9
million, or $0.49 diluted earnings per share for the nine months
ended September 30, 2023.
Commercial bank operating earnings (non-GAAP), which exclude the
nonrecurring taxes recorded for the surrender of the Company’s
bank-owned life insurance (“BOLI”) policies during the first
quarter of 2024 and the loss on the sale of available-for-sale
investment securities during the first quarter of 2023, for the
nine months ended September 30, 2024 and 2023 were $12.6 million
and $12.5 million, respectively, an increase of $76 thousand.
Diluted commercial bank operating earnings per share (non-GAAP) for
the nine month periods ended September 30, 2024 and 2023 were $0.68
and $0.69, respectively.
The Company considers commercial bank operating earnings a
useful comparative financial measure of the Company’s operating
performance over multiple periods. Commercial bank operating
earnings are determined by methods other than in accordance with
U.S. generally accepted accounting principles (“GAAP”). A
reconciliation of non-GAAP financial measures to their most
comparable financial measure in accordance with GAAP can be found
in the tables below.
Management Comments
David W. Pijor, Esq., Chairman and Chief Executive Officer of
the Company, said:
“Our disciplined approach to loan originations and deposit
pricing continues to enhance our net interest income and margin for
a third consecutive quarter. We continue to focus on attaining the
full customer relationship which has allowed us to continue to
originate loans to strong credit-worthy borrowers with compensating
balances. During the third quarter of 2024, we originated over $59
million in loans, which were funded through loan maturities and
deposit growth. Lastly, our partners at Atlantic Coast Mortgage
(“ACM”) have continued profitability for the third quarter and
year-to-date periods, which has enhanced our noninterest income for
2024.”
Statement of Condition
Total assets were $2.29 billion at September 30, 2024 and $2.19
billion at December 31, 2023, an increase of $102.7 million, or 5%.
At September 30, 2023, total assets were $2.31 billion.
Loans receivable, net of deferred fees, were $1.87 billion at
September 30, 2024, $1.83 billion at December 31, 2023, and $1.85
billion at September 30, 2023. Year-to-date, total loans, net of
fees, increased $46.4 million, or 2.5%. For the three months ended
September 30, 2024, loans receivable, net of fees, decreased $12.0
million, of which $13.6 million of this decrease is related to the
warehouse line held by ACM. Excluding the warehouse line, loans
increased $1.7 million for the quarter ended September 30, 2024.
During the third quarter of 2024, loan originations totaled $58.7
million with a weighted average rate of 9.27%, and were primarily
comprised of commercial and industrial loans. Loan renewals totaled
$60.4 million and had a weighted average rate of 8.94%. Loans that
paid off during the third quarter of 2024 totaled $51.6 million and
had a weighted average rate of 7.52%.
Investment securities were $165.3 million at September 30, 2024,
$171.9 million at December 31, 2023, and $216.4 million at
September 30, 2023. Investment securities during the nine months
ended September 30, 2024 decreased $6.6 million, primarily due to
principal repayments and maturities totaling $11.2 million, offset
by a decrease in the portfolio’s unrealized losses totaling $4.6
million.
Total deposits were $1.96 billion at September 30, 2024 and
$1.85 billion at December 31, 2023, an increase of $115.5 million,
or 6%. Noninterest-bearing deposits were $357.0 million at
September 30, 2024, or 18.2% of total deposits, and decreased $16.8
million during the third quarter of 2024, as customers continue to
sweep to interest-bearing deposit products. New noninterest-
bearing deposits totaled $7.2 million for the quarter ended
September 30, 2024. Cash inflows from new non-maturity deposits
totaled $97.9 million for the quarter ended September 30, 2024, and
were largely from 1031 exchange and title company deposits. The
Company continues to grow its core deposit base and consistently
sees new deposit inflows each quarter. As a member of the IntraFi
Network, the Bank offers products to its customers who seek to
maximize FDIC insurance protection (“reciprocal deposits”). At
September 30, 2024 and December 31, 2023, reciprocal deposits
totaled $238.1 million and $254.1 million, respectively, and are
considered part of the Company’s core deposit base. Time deposits
decreased $28.2 million to $246.5 million during the third quarter
of 2024 compared to $274.7 million for the linked quarter ended
June 30, 2024, as time deposits that were originated during 2023
with a weighted average rate of 5.16% matured in September.
At September 30, 2024, wholesale funding totaled $306.9 million
and had a weighted average rate of 3.47% (including $250 million in
pay-fixed/receive-floating interest rate swaps at an average rate
of 3.25%). Wholesale funding at September 30, 2024 includes
wholesale deposits totaling $249.9 million and other borrowed funds
totaling $57.0 million. For the quarter ended September 30, 2024,
wholesale funding had a weighted average rate of 3.50% compared to
a weighted average rate of 3.72% for the quarter ended June 30,
2024.
Shareholders’ equity at September 30, 2024 was $230.8 million,
an increase of $13.7 million, or 6%, from December 31, 2023.
Year-to-date 2024 earnings contributed $10.2 million to the
increase in shareholders’ equity. Common stock issued for stock
options exercised contributed $2.1 million to shareholders’ equity
for the 2024 year-to-date period. Accumulated other comprehensive
loss decreased $1.4 million for the 2024 year-to-date period, which
was primarily related to the change in the Company’s other
comprehensive income associated with its available-for sale
investment securities at September 30, 2024.
Book value per share at September 30, 2024 and December 31, 2023
was $12.68 and $12.19, respectively. Tangible book value per share
(a non-GAAP financial measure which is defined in the tables below)
at September 30, 2024 and December 31, 2023 was $12.27 and $11.77,
respectively. Tangible book value per share, excluding accumulated
other comprehensive loss (a non-GAAP financial measure which is
defined in the tables below), at September 30, 2024 and December
31, 2023 was $13.52 and $13.12, respectively.
The Bank was well-capitalized at September 30, 2024, with total
risk-based capital ratio of 14.52%, common equity tier 1 risk-based
capital ratio of 13.48%, and tier 1 leverage ratio of 11.49%.
Asset Quality
For the three and nine months ended September 30, 2024, the
Company released provisioning for credit losses totaling $200
thousand, and recorded provision expense totaling $6 thousand,
respectively. This is compared to a release of provisioning for
credit losses totaling $729 thousand and provision expense of $132
thousand for the three and nine months ended September 30, 2023,
respectively. The allowance for credit losses (“ACL”) on loans to
total loans, net of fees, was 1.02% at September 30, 2024, compared
to 1.03% at December 31, 2023.
Nonaccrual loans and loans 90 days or more past due at September
30, 2024 totaled $3.6 million, or 0.16% of total assets, compared
to $1.8 million, or 0.08% of total assets, at December 31, 2023.
The increase in nonperforming loans at September 30, 2024 is
primarily a result of one commercial & industrial loan
relationship that was placed on nonaccrual during the first quarter
of 2024. Classified loans decreased $19.9 million, or 86%, to $3.2
million at September 30, 2024 compared to the prior quarter. The
Company had no other real estate owned at September 30, 2024.
The Company recorded net recoveries of $63 thousand and $68
thousand for the three and nine months ended September 30, 2024,
respectively. At September 30, 2024 and December 31, 2023, the ACL
on loans was $19.1 million and $18.9 million, respectively. ACL
coverage to nonperforming loans decreased to 536% at September 30,
2024, compared to 1032% at December 31, 2023, as a result of the
$1.7 million increase in nonperforming loans during 2024.
At September 30, 2024, commercial real estate loans totaled
$1.06 billion, or 57% of total loans, net of fees, and construction
loans totaled $173.8 million, or 9% of total loans, net of fees.
Included in commercial real estate and construction loans are loans
secured by office buildings totaling $137.4 million, or 7% of total
loans, which are primarily located in the Virginia and Maryland
suburbs of the Company’s market area, with $2.4 million, or 0.13%
of total loans, located in Washington, D.C. Loans secured by retail
shopping centers totaled $260.7 million, or 14% of total loans, at
September 30, 2024. Loans secured by multi-family housing totaled
$164.6 million, or 9% of total loans, at September 30, 2024. The
commercial real estate portfolio, including construction loans, is
diversified by asset type and geographic concentration. The Company
has comprehensive policies to monitor, measure, and mitigate its
loan concentrations within this portfolio segment, including
rigorous credit approval, monitoring and administrative practices.
The following table provides further stratification of these and
additional classes of real estate loans at September 30, 2024
(dollars in thousands).
Owner Occupied Commercial Real
Estate
Non-Owner Occupied Commercial
Real Estate
Construction
Asset Class
Average Loan-to-Value
(1)
Number of Total Loans
Bank Owned Principal
(2)
Average Loan-to-Value
(1)
Number of Total Loans
Bank Owned Principal
(2)
Top 3 Geographic
Concentration
Number of Total Loans
Bank Owned Principal
(2)
Total Bank Owned Principal
(2)
% of Total Loans
Office, Class A
68%
6
$
7,426
46%
4
$
3,688
Counties of Fairfax and Loudoun,
Virginia and Montgomery County, Maryland
—
$
—
$
11,114
Office, Class B
49%
30
10,795
45%
28
56,782
—
—
67,577
Office, Class C
53%
8
5,095
38%
8
1,871
1
865
7,831
Office, Medical
38%
7
1,121
46%
7
41,312
1
8,426
50,859
Subtotal
51
$
24,437
47
$
103,653
2
$
9,291
$
137,381
7%
Retail- Neighborhood/Community Shop
—
$
—
43%
30
$
81,172
Prince George's County, Maryland,
Baltimore County, MD, Fairfax County, VA
2
$
11,358
$
92,530
Retail- Restaurant
56%
8
7,113
44%
16
26,137
—
—
33,250
Retail- Single Tenant
58%
5
1,942
42%
20
36,155
—
—
38,097
Retail- Anchored,Other
—
—
51%
13
42,736
—
—
42,736
Retail- Grocery-anchored
—
—
46%
8
52,819
1
1,238
54,057
Subtotal
13
$
9,055
87
$
239,019
3
$
12,596
$
260,670
14%
Multi-family, Class A (Market)
—
$
—
1
$
—
Washington, D.C., Baltimore City,
Maryland and Richmond City, Virginia
1
$
1,044
$
1,044
Multi-family, Class B (Market)
—
—
63%
20
69,252
—
—
69,252
Multi-family, Class C (Market)
—
—
55%
56
66,939
2
7,047
73,986
Multi-Family-Affordable Housing
—
—
52%
10
16,277
1
4,013
20,290
Subtotal
—
$
—
87
$
152,468
4
$
12,104
$
164,572
9%
Industrial
50%
41
$
66,732
47%
38
$
124,694
Prince William County, Virginia,
Fairfax County, Virginia and Howard County, Maryland
1
$
1,411
$
192,837
Warehouse
54%
13
17,704
27%
8
9,327
—
—
27,031
Flex
50%
14
15,499
54%
14
56,144
2
—
71,643
Subtotal
68
$
99,935
60
$
190,165
3
$
1,411
$
291,511
16%
Hotels
—
$
—
42%
9
$
55,177
1
$
7,315
$
62,492
3%
Mixed Use
45%
10
$
5,839
60%
36
$
65,773
—
$
—
$
71,612
4%
Land
$
—
$
—
26
$
55,588
$
55,588
3%
1-4 Family construction
$
—
$
—
17
$
50,274
$
50,274
3%
Other (including net deferred fees)
$
57,003
$
60,454
$
25,227
$
142,684
8%
Total commercial real estate and
construction loans, net of fees, at September 30, 2024
$
196,269
$
866,709
$
173,806
$
1,236,784
66%
At December 31, 2023
$
212,889
$
878,744
$
147,998
$
1,239,631
68%
(1) Loan-to-value is determined at
origination date against current bank owned principal.
(2) Bank-owned principal is not adjusted
for deferred fees and costs.
(3) Minimum debt service coverage policy
is 1.30x for owner occupied and 1.25x for Non-Owner Occupied at
origination.
The loans shown in the above table exhibit strong credit
quality, reflecting two classified loans at September 30, 2024
totaling $1.6 million. During its assessment of the allowance for
credit losses, the Company addressed the credit risks associated
with these portfolio segments and believes that as a result of its
conservative underwriting discipline at loan origination and its
ongoing loan monitoring procedures, the Company has appropriately
reserved for possible credit concerns in the event of a downturn in
economic activity.
Minority Investment in Mortgage Banking Operation
In August 2021, the Company acquired a membership interest in
ACM to diversify its loan portfolio while providing competitive
residential mortgage products to its customers and to generate
additional revenue. The Company’s investment in ACM is reflected as
a nonconsolidated minority investment, and as such, the Company’s
income generated from the investment is included in non-interest
income. For the three months ended September 30, 2024 and 2023, the
Company reported income of $278 thousand and a loss of $650
thousand, respectively, an increase of $928 thousand. For the nine
months ended September 30, 2024 and 2023, the Company recorded
income of $425 thousand compared to a loss of $1.4 million,
respectively, related to its investment in ACM.
Income Statement
The Company recorded net income of $4.7 million for the three
months ended September 30, 2024, an increase of $630 thousand, or
16%, compared to $4.0 million for the three months ended September
30, 2023. Compared to the linked quarter, net income for the three
months ended September 30, 2024 increased $514 thousand, or 12%,
from $4.2 million for the quarter ended June 30, 2024.
Net interest income increased $879 thousand, or 7%, to $14.2
million for the quarter ended September 30, 2024, compared to $13.3
million for the third quarter of 2023, and increased $543 thousand,
or 4%, compared to the linked quarter ended June 30, 2024. Compared
to the year ago quarter ended September 30, 2023, the increase in
net interest income for the third quarter of 2024 is primarily due
to an increase in loan interest income as the loan portfolio
reprices in this high interest rate environment.
The Company's net interest margin increased 25 basis points to
2.64% for the quarter ended September 30, 2024 compared to 2.39%
for the year ago quarter ended September 30, 2023, and increased 5
basis points from 2.59% for the linked quarter ended June 30, 2024.
The increase in net interest margin is a result of continued
improvement in the yields of the Company’s loan portfolio and its
management to control funding costs.
Compared to the year ago quarter ended September 30, 2023,
interest income increased $1.8 million, or 7%, to $29.2 million,
for the third quarter of 2024. Total interest income increased $1.3
million, or 5%, for the third quarter of 2024 compared to the
linked quarter ended June 30, 2024. Loan interest income increased
$2.1 million, or 8%, to $27.4 million for the three months ended
September 30, 2024, compared to $25.2 million for the three months
ended September 30, 2023, as average total loans only increased
$10.3 million during this same comparable period. Compared to the
linked quarter ended June 30, 2024, loan interest income increased
$924 thousand, or 3%, as average total loans decreased $3.2
million.
The Company has actively managed its maturing commercial real
estate loan portfolio and further diversified its loan mix toward
commercial & industrial loans, which earn higher yields. Loan
yields increased 43 basis points to 5.83% for the three months
ended September 30, 2024 compared to the same period of 2023, and
increased 21 basis points compared to the linked quarter ended June
30, 2024. The yield on earning assets increased 51 basis points to
5.46% for the three months ended September 30, 2024 compared to
4.95% for the same period of 2023, partially as a result of the
balance sheet repositionings completed during 2023 along with the
repricing of the Company’s variable rate loan portfolio and new
loan originations.
At September 30, 2024, approximately $434.9 million, or 28%, of
the Company’s commercial loan portfolio is expected to reprice in
the next 12 months, which is comprised of the following: $112.8
million in fixed rate commercial loans, and $61.8 million in
variable rate commercial loans, with an additional $260.3 million
in floating rate loans priced currently at market rates. Within the
following 24-36 months, $214.4 million in fixed rate commercial
loans are scheduled to reprice and an additional $87.3 million in
variable rate commercial loans are scheduled to reprice,
representing 20% of the current loan portfolio. In the near term,
the Company’s efforts to attain appropriate yields on new
originations and the repricing of the commercial loan portfolio are
expected to provide continued improvement in loan yields.
On a linked quarter basis, interest expense increased $718
thousand, or 5%, to $15.0 million for the third quarter of 2024
compared to the quarter ended June 30, 2024, and increased $926
thousand, or 7%, compared to the year ago quarter. Interest expense
on other borrowed funds for the quarter ended September 30, 2024
decreased $587 thousand, or 51%, to $563 thousand from $1.2
million, for the quarter ended June 30, 2024, as the Company
reduced its reliance on wholesale funding. Interest expense on
deposits increased $1.3 million to $14.2 million for the three
months ended September 30, 2024 compared to the three months ended
June 30, 2024, reflecting the increase in average balances of
non-maturity deposits during the third quarter of 2024. The cost of
interest-bearing liabilities for the third quarter of 2024 was
3.80% compared to 3.74% for the second quarter of 2024, an increase
of 6 basis points compared to an increase of 38 basis points from
3.42% for the year ago quarter, demonstrating the Company’s ability
to slow the increase of funding costs during 2024. As a result of
the Federal Open Market Committee decision to cut the federal funds
rate by 0.50% on September 18, 2024, the Company has decreased
interest rates on its various deposit products, the full impact of
which will be reflected in the fourth quarter of 2024.
Net interest income for the nine months ended September 30, 2024
and 2023 was $40.7 million and $41.7 million, respectively, a
decrease of $1.1 million, or 3%, year-over-year. Interest income
increased $4.1 million, or 5%, to $84.0 million for the nine months
ended September 30, 2024 as compared to $80.0 million for the
comparable 2023 period. Interest expense totaled $43.4 million for
the nine months ended September 30, 2024, an increase of $5.1
million, compared to $38.2 million for the nine months ended
September 30, 2023. The Company’s net interest margin for the nine
months ended September 30, 2024 increased to 2.57% compared to
2.53% for the year-ago nine month period of 2023.
Noninterest income for the three months ended September 30, 2024
totaled $815 thousand compared $225 thousand for the three months
ended September 30, 2023 and $871 thousand for the three months
ended June 30, 2024.
Fee income from loans was $54 thousand for the quarter ended
September 30, 2024, compared to $107 thousand for the third quarter
of 2023, which included income from back-to-back loan swap
transactions entered into during the third quarter of 2023. Service
charges on deposit accounts totaled $301 thousand for the third
quarter of 2024, compared to $284 thousand for the year ago
quarter, and $279 thousand for the three months ended June 30,
2024. Income from bank-owned life insurance decreased $303 thousand
to $70 thousand for the three months ended September 30, 2024,
compared to $373 thousand for the same period of 2023, a direct
result of the surrendered BOLI that occurred during the first
quarter of 2024. As previously mentioned, income from the Company’s
minority interest in ACM totaled $278 thousand for the three months
ended September 30, 2024, compared to a loss of $650 thousand for
the same period of 2023, and compared to income of $351 thousand
for the linked quarter ended June 30, 2024.
For the year-to-date period ended September 30, 2024, the
Company recorded noninterest income totaling $2.1 million, compared
to a loss of $3.5 million for the nine months ended September 30,
2023, which was primarily associated with its securities sales
transaction executed during the first quarter of 2023.
Noninterest expense totaled $9.2 million for the quarter ended
September 30, 2024, an increase of $148 thousand, or 2%, compared
to $9.0 million for the year ago quarter ended September 30, 2023.
On a linked quarter basis, noninterest expense increased $200
thousand, or 2%, from $9.0 million for the three months ended June
30, 2024. The increase in noninterest expense during the third
quarter of 2024 as compared to the linked quarter was primarily
related to an increase in incentive accruals recorded during the
third quarter of 2024. Compared to the year ago quarter, salaries
and benefits expense decreased $414 thousand, or 8%, for the three
months ended September 30, 2024, primarily as a result of reduced
staffing and process improvement through the use of technology.
Full-time equivalent employees have decreased from 126 at September
30, 2023, to 118 at December 31, 2023 to 111 at September 30, 2024,
which includes vacancies that are in the process of being
filled.
Occupancy expense decreased $82 thousand to $465 thousand for
the three months ended September 30, 2024 compared to the year ago
quarter ended September 30, 2023, primarily as a result of the
office space reduction efforts completed during 2023. Internet
banking and software expense increased $46 thousand to $706
thousand for the third quarter of 2024 compared to the quarter
ended September 30, 2023, primarily as a result of the
implementation of enhanced customer software solutions. Other
operating expenses totaled $1.6 million for third quarter of 2024
compared to $1.2 million for the year ago quarter ended September
30, 2023, an increase of $456 thousand, which was primarily a
result of loan workout expenses that were collected by the Bank
during the third quarter of 2023. The Company continues to identify
and assess opportunities to reduce operating expenses.
For the nine months ended September 30, 2024 and 2023,
noninterest expense was $26.8 million and $27.3 million,
respectively, a decrease of $444 thousand, or 2%, primarily as a
result of the aforementioned decreases in salaries and benefits
expenses and occupancy expense.
The efficiency ratio for core bank operating earnings
(non-GAAP), which excludes the 2023 losses on the sale of
available-for-sale investment securities, for the quarters ended
September 30, 2024, June 30, 2024, and September 30, 2023, was
61.2%, 61.9%, and 66.7%, respectively. For the nine months ended
September 30, 2024 and 2023, the efficiency ratio for core bank
operating earnings (non-GAAP), excluding 2023 losses on the sale of
available-for-sale investment securities, was 62.7% and 63.7%,
respectively. A reconciliation of the aforementioned efficiency
ratio, a non-GAAP financial measure, can be found in the tables
below.
The Company recorded a provision for income taxes of $1.4
million and $1.2 million for the three months ended September 30,
2024 and 2023, respectively. For the nine months ended September
30, 2024 and 2023, provision for income taxes was $5.8 million and
$1.9 million, respectively. The year-to-date 2024 period includes
an additional $2.4 million which is associated with the Company
surrendering its BOLI policies during the first quarter of
2024.
About FVCBankcorp, Inc.
FVCBankcorp, Inc. is the holding company for FVCbank, a
wholly-owned subsidiary that commenced operations in November 2007.
FVCbank is a $2.29 billion asset-sized Virginia-chartered community
bank serving the banking needs of commercial businesses, nonprofit
organizations, professional service entities, their owners and
employees located in the greater Baltimore and Washington, D.C.
metropolitan areas. FVCbank is based in Fairfax, Virginia, and has
8 full-service offices in Arlington, Fairfax, Manassas, Reston and
Springfield, Virginia, Washington, D.C., and Baltimore, and
Bethesda, Maryland.
For more information about the Company, please visit the
Investor Relations page of FVCBankcorp, Inc.’s website,
www.fvcbank.com.
Cautionary Note About Forward-Looking Statements
This press release may contain statements relating to future
events or future results of the Company that are considered
“forward-looking statements” under the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
represent plans, estimates, objectives, goals, guidelines,
expectations, intentions, projections and statements of our beliefs
concerning future events, business plans, objectives, expected
operating results and the assumptions upon which those statements
are based. Forward-looking statements include without limitation,
any statement that may predict, forecast, indicate or imply future
results, performance or achievements, and are typically identified
with words such as “may,” “could,” “should,” “will,” “would,”
“believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,”
“plan,” or words or phases of similar meaning. We caution that the
forward-looking statements are based largely on our expectations
and are subject to a number of known and unknown risks and
uncertainties that are subject to change based on factors which
are, in many instances, beyond our control. Actual results,
performance or achievements could differ materially from those
contemplated, expressed or implied by the forward-looking
statements. The following factors, among others, could cause our
financial performance to differ materially from that expressed in
such forward-looking statements: general business and economic
conditions, including higher inflation and its impacts, nationally
or in the markets that the Company serves could adversely affect,
among other things, real estate valuations, unemployment levels,
the ability of businesses to remain viable, consumer and business
confidence, and consumer or business spending, which could lead to
decreases in demand for loans, deposits, and other financial
services that the Company provides and increases in loan
delinquencies and defaults; the impact of the interest rate
environment on our business, financial condition and results of
operation, and its impact on the composition and costs of deposits,
loan demand, and the values and liquidity of loan collateral,
securities, and interest sensitive assets and liabilities; changes
in the Company’s liquidity requirements could be adversely affected
by changes in its assets and liabilities; changes in the
assumptions underlying the establishment of reserves for possible
credit losses and the possibility that future credit losses may be
higher than currently expected; changes in market conditions,
specifically declines in the commercial and residential real estate
market, volatility and disruption of the capital and credit
markets, and soundness of other financial institutions the Company
does business with; the effects of, and changes in, trade, monetary
and fiscal policies and laws, including interest rate policies of
the Board of Governors of the Federal Reserve System, inflation,
interest rate, market and monetary fluctuations; the Company’s
investment securities portfolio is subject to credit risk, market
risk, and liquidity risk as well as changes in the estimates used
to value the securities in the portfolio; declines in the Company’s
common stock price or the occurrence of what management would deem
to be a triggering event that could, under certain circumstances,
cause us to record a noncash impairment charge to earnings in
future periods; geopolitical conditions, including acts or threats
of terrorism, or actions taken by the United States or other
governments in response to acts or threats of terrorism and/or
military conflicts, which could impact business and economic
conditions in the United States and abroad; the occurrence of
significant natural disasters, including severe weather conditions,
floods, health related issues or emergencies, and other
catastrophic events; the management of risks inherent in the
Company’s real estate loan portfolio, and the risk of a prolonged
downturn in the real estate market, which could impair the value of
loan collateral and the ability to sell collateral upon any
foreclosure; the impact of changes in bank regulatory conditions,
including laws, regulations and policies concerning capital
requirements, deposit insurance premiums, taxes, securities, and
the application thereof by regulatory bodies; the effect of changes
in accounting policies and practices, as may be adopted from time
to time by bank regulatory agencies, the Securities and Exchange
Commission (the “SEC”), the Public Company Accounting Oversight
Board, the Financial Accounting Standards Board or other accounting
standards setting bodies; competitive pressures among financial
services companies, including the timely development of competitive
new products and services and the acceptance of these products and
services by new and existing customers; the effect of acquisitions
and partnerships the Company may make, including, without
limitation, the failure to achieve the expected revenue growth
and/or expense savings from such acquisitions; the Company’s
involvement, from time to time, in legal proceedings and
examination and remedial actions by regulators; and potential
exposure to fraud, negligence, computer theft and cyber-crime, and
the Company’s ability to maintain the security of its data
processing and information technology systems. The foregoing
factors should not be considered exhaustive and should be read
together with other cautionary statements that are included in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023, including those discussed in the section entitled “Risk
Factors,” and in the Company’s other periodic and current reports
filed with the SEC. If one or more of the factors affecting our
forward-looking information and statements proves incorrect, then
our actual results, performance or achievements could differ
materially from those expressed in, or implied by, forward-looking
information and statements contained in this press release.
Therefore, the Company cautions you not to place undue reliance on
our forward-looking information and statements. We will not update
the forward-looking statements to reflect actual results or changes
in the factors affecting the forward-looking statements. New risks
and uncertainties may emerge from time to time, and it is not
possible to predict their occurrence or how they will affect the
Company’s operations, financial condition or results of
operations.
FVCBankcorp, Inc.
Selected Financial
Data
(Dollars in thousands, except
share data and per share data)
(Unaudited)
At or For the Three Months
Ended,
For the Nine Months
Ended,
At or For the Three Months
Ended,
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
June 30, 2024
December 31, 2023
Selected Balances
Total assets
$
2,293,282
$
2,305,472
$
2,299,194
$
2,190,558
Total investment securities
165,296
216,410
162,428
171,859
Total loans, net of deferred fees
1,874,946
1,849,513
1,886,929
1,828,564
Allowance for credit losses on loans
(19,067
)
(18,849
)
(19,208
)
(18,871
)
Total deposits
1,960,767
1,995,971
1,968,752
1,845,292
Subordinated debt
19,666
19,606
19,652
19,620
Other borrowings
57,000
50,000
57,000
85,000
Reserve for unfunded commitments
510
673
506
602
Total stockholders’ equity
230,830
211,246
226,491
217,117
Summary Results of Operations
Interest income
$
29,233
$
27,427
$
84,032
$
79,964
$
27,972
$
26,651
Interest expense
15,019
14,092
43,356
38,227
14,301
13,992
Net interest income
14,214
13,335
40,676
41,737
13,671
12,659
Provision for credit losses
(200
)
(729
)
6
132
206
—
Net interest income after provision for
credit losses
14,414
14,064
40,670
41,605
13,464
12,659
Noninterest income - loan fees, service
charges and other
467
502
1,329
1,445
454
420
Noninterest income - bank owned life
70
373
326
1,067
66
385
Noninterest income (loss) on minority
membership interest
278
(650
)
426
(1,431
)
351
321
Noninterest loss on sale of
available-for-sale investment securities
- -
—
- -
(4,592
)
—
(10,985
)
Noninterest expense
9,196
9,048
26,817
27,261
8,996
9,402
Income (Loss) before taxes
6,033
5,241
15,934
10,833
5,340
(6,602
)
Income tax expense (benefit)
1,364
1,202
5,770
1,941
1,185
(1,531
)
Net income (loss)
4,669
4,039
10,164
8,892
4,155
(5,071
)
Per Share Data
Net income (loss), basic
$
0.26
$
0.23
$
0.56
$
0.50
$
0.23
$
(0.28
)
Net income (loss), diluted
$
0.25
$
0.22
$
0.55
$
0.49
$
0.23
$
(0.28
)
Book value
$
12.68
$
11.87
$
12.45
$
12.19
Tangible book value (1)
$
12.27
$
11.44
$
12.04
$
11.77
Tangible book value, excluding accumulated
other comprehensive losses (1)
$
13.52
$
13.39
$
13.26
$
13.12
Shares outstanding
18,204,455
17,802,173
18,186,147
17,806,995
Selected Ratios
Net interest margin (2)
2.64
%
2.39
%
2.57
%
2.53
%
2.59
%
2.37
%
Return on average assets (2)
0.85
%
0.70
%
0.62
%
0.52
%
0.77
%
(0.92
)%
Return on average equity (2)
8.15
%
7.57
%
6.04
%
5.68
%
7.42
%
(9.51
)%
Efficiency (3)
61.19
%
66.73
%
62.72
%
71.32
%
61.86
%
NM
Loans, net of deferred fees to total
deposits
95.62
%
92.66
%
95.84
%
99.09
%
Noninterest-bearing deposits to total
18.21
%
21.39
%
18.99
%
21.50
%
Reconciliation of Net Income (GAAP) to
Commercial Bank Operating Earnings (Non-GAAP)(4)
GAAP net income (loss) reported above
$
4,669
$
4,039
$
10,164
$
8,892
$
4,155
$
(5,071
)
Add: Loss on sale of available-for-sale
investment securities
—
—
—
4,592
—
10,985
Add: Non-recurring tax and 10% modified
endowment contract penalty on early surrender of BOLI policies
—
—
2,386
—
—
—
Add: Office space reduction and
severance
—
—
—
—
—
336
Subtract: Non-recurring valuation
adjustment of minority investment
—
—
—
—
(1,258
)
Subtract: provision for income taxes
associated with non-GAAP adjustments
—
—
—
(1,010
)
—
(2,214
)
Adjusted Net Income, core bank operating
earnings (non-GAAP)
$
4,669
$
4,039
$
12,550
$
12,474
$
4,155
$
2,778
Adjusted Earnings per share - basic
(non-GAAP core bank operating earnings)
$
0.26
$
0.23
$
0.70
$
0.70
$
0.23
$
0.16
Adjusted Earnings per share - diluted
(non-GAAP core bank operating earnings)
$
0.25
$
0.22
$
0.68
$
0.69
$
0.23
$
0.15
Adjusted Return on average assets
(non-GAAP core bank operating earnings)
0.85
%
0.70
%
0.77
%
0.73
%
0.77
%
0.50
%
Adjusted Return on average equity
(non-GAAP core bank operating earnings)
8.15
%
7.57
%
7.46
%
7.97
%
7.42
%
5.21
%
Adjusted Efficiency ratio (non-GAAP core
bank operating earnings)(3)
61.19
%
66.73
%
62.72
%
63.67
%
61.86
%
65.77
%
Capital Ratios - Bank
Tangible common equity (to tangible
assets)
10.21
%
9.40
%
9.99
%
10.12
%
Total risk-based capital (to risk
weighted
14.52
%
13.93
%
14.13
%
13.83
%
Common equity tier 1 capital (to risk
weighted assets)
13.48
%
12.92
%
13.09
%
12.80
%
Tier 1 leverage (to average assets)
11.49
%
10.62
%
11.31
%
10.77
%
Asset Quality
Nonperforming loans
$
3,556
$
1,510
$
3,187
$
1,829
Nonperforming loans to total assets
0.16
%
0.07
%
0.13
%
0.08
%
Nonperforming assets to total assets
0.16
%
0.07
%
0.13
%
0.08
%
Allowance for credit losses on loans to
loans
1.02
%
1.06
%
1.02
%
1.03
%
Allowance for credit losses on to
nonperforming loans
536.19
%
1292.85
%
602.70
%
1031.77
%
Net (recoveries ) charge-offs
$
(63
)
$
(7
)
$
(68
)
$
326
$
(5
)
$
49
Net charge-offs (recoveries) to average
loans (2)
(0.01
)%
—
%
(0.01
)%
0.02
%
—
%
0.01
%
Selected Average Balances
Total assets
$
2,187,583
$
2,302,870
$
2,172,666
$
2,293,565
$
2,170,786
$
2,210,366
Total earning assets
2,142,155
2,214,923
2,116,436
2,207,797
2,123,431
2,123,455
Total loans, net of deferred fees
1,879,152
1,868,819
1,867,503
1,856,008
1,882,342
1,825,472
Total deposits
1,855,513
2,033,941
1,813,794
1,941,387
1,798,734
1,836,826
Other Data
Noninterest-bearing deposits
$
357,027
$
427,036
$
373,848
$
396,724
Interest-bearing checking, savings and
money market
1,107,335
904,639
1,070,360
896,969
Time deposits
246,527
381,770
274,684
306,349
Wholesale deposits
249,876
282,526
249,860
245,250
(1)
Non-GAAP Reconciliation
(Dollars in thousands, except per share
data)
Total shareholders’ equity
$
230,830
$
211,246
$
226,491
$
217,117
Less: goodwill and intangibles, net
(7,457
)
(7,632
)
(7,497
)
(7,585
)
Tangible Common Equity
$
223,373
$
203,614
$
218,994
$
209,532
Less: Accumulated Other Comprehensive
Income (Loss) ("AOCI")
(22,721
)
(34,834
)
(22,152
)
(24,160
)
Tangible Common Equity excluding
AOCI
$
246,094
$
238,448
$
241,146
$
233,692
Book value per common share
$
12.68
11.87
$
12.45
$
12.19
Less: intangible book value per common
share
(0.41
)
(0.43
)
(0.41
)
(0.42
)
Tangible book value per common
share
$
12.27
$
11.44
$
12.04
$
11.77
Less: AOCI (loss) per common share
(1.25
)
(1.95
)
(1.22
)
(1.35
)
Tangible book value per common share,
excluding AOCI
$
13.52
$
13.39
$
13.26
$
13.12
(2)
Annualized.
(3)
Efficiency ratio is calculated as noninterest expense divided by
the sum of net interest income and noninterest income.
(4)
Some of the financial measures discussed
throughout the press release are “non-GAAP financial measures.” In
accordance with SEC rules, the Company classifies a financial
measure as being a non-GAAP financial measure if that financial
measure excludes or includes amounts, or is subject to adjustments
that have the effect of excluding or including amounts, that are
included or excluded, as the case may be, in the most directly
comparable measure calculated and presented in accordance with GAAP
in our consolidated statements of income, condition, or statements
of cash flows.
FVCBankcorp, Inc.
Summary Consolidated
Statements of Condition
(Dollars in thousands)
(Unaudited)
September 30, 2024
June 30, 2024
% Change Current
Quarter
December 31, 2023
September 30, 2023
% Change From Year Ago
Cash and due from banks
$
10,051
$
10,226
(1.7
)%
$
8,042
$
7,560
33.0
%
Interest-bearing deposits at other
financial institutions
167,575
154,359
8.6
%
52,480
89,440
87.4
%
Investment securities
165,296
162,429
1.8
%
171,859
216,410
(23.6
)%
Restricted stock, at cost
8,186
8,186
—
%
9,488
7,745
5.7
%
Loans, net of fees:
Commercial real estate
1,062,978
1,083,481
(1.9
)%
1,091,633
1,097,726
(3.2
)%
Commercial and industrial
288,821
268,921
7.4
%
216,367
215,764
33.9
%
Commercial construction
173,806
164,736
5.5
%
147,998
154,559
12.5
%
Consumer real estate
331,713
339,146
(2.2
)%
363,317
367,345
(9.7
)%
Warehouse facilities
10,777
24,425
(55.9
)%
3,506
7,887
36.6
%
Consumer nonresidential
6,851
6,220
10.1
%
5,743
6,232
9.9
%
Total loans, net of fees
1,874,946
1,886,929
(0.6
)%
1,828,564
1,849,513
1.4
%
Allowance for credit losses on loans
(19,067
)
(19,208
)
(0.7
)%
(18,871
)
(18,849
)
1.2
%
Loans, net
1,855,879
1,867,721
(0.6
)%
1,809,693
1,830,664
1.4
%
Premises and equipment, net
866
915
(5.4
)%
997
1,047
(17.3
)%
Goodwill and intangibles, net
7,457
7,497
(0.5
)%
7,585
7,632
(2.3
)%
Bank owned life insurance (BOLI)
9,148
9,078
0.8
%
56,823
56,438
(83.8
)%
Other assets
68,824
78,783
(12.6
)%
73,591
88,536
(22.3
)%
Total Assets
$
2,293,282
$
2,299,194
(0.3
)%
$
2,190,558
$
2,305,472
(0.5
)%
Deposits:
Noninterest-bearing
$
357,028
$
373,848
(4.5
)%
$
396,724
$
427,036
(16.4
)%
Interest checking
615,839
631,162
(2.4
)%
576,471
651,064
(5.4
)%
Savings and money market
491,496
439,198
11.9
%
320,498
253,575
93.8
%
Time deposits
246,527
274,684
(10.3
)%
306,349
381,770
(35.4
)%
Wholesale deposits
249,877
249,860
—
%
245,250
282,526
(11.6
)%
Total deposits
1,960,767
1,968,752
(0.4
)%
1,845,292
1,995,971
(1.8
)%
Other borrowed funds
57,000
57,000
—
%
85,000
50,000
—
%
Subordinated notes, net of issuance
costs
19,666
19,652
0.1
%
19,620
19,606
0.3
%
Reserve for unfunded commitments
510
506
0.8
%
602
673
(24.2
)%
Other liabilities
24,509
26,793
(8.5
)%
22,927
27,976
(12.4
)%
Shareholders’ equity
230,830
226,491
1.9
%
217,117
211,246
9.3
%
Total Liabilities & Shareholders'
Equity
$
2,293,282
$
2,299,194
(0.3
)%
$
2,190,558
$
2,305,472
(0.5
)%
FVCBankcorp, Inc.
Summary Consolidated
Statements of Income
(Dollars in thousands, except
per share data)
(Unaudited)
For the Three Months
Ended
September 30, 2024
June 30, 2024
% Change Current
Quarter
September 30, 2023
% Change From Year Ago
Net interest income
$
14,214
$
13,671
4.0
%
$
13,335
6.6
%
Provision for credit losses
(200
)
206
(197.1
)%
(729
)
(72.6
)%
Net interest income after provision for
credit losses
14,414
13,465
7.0
%
14,064
2.5
%
Noninterest income:
Fees on loans
54
38
42.1
%
107
(49.5
)%
Service charges on deposit accounts
301
279
7.9
%
284
6.0
%
BOLI income
70
66
6.1
%
373
(81.2
)%
Income (Loss) from minority membership
interest
278
351
(20.8
)%
(650
)
142.8
%
Other fee income
112
137
(18.2
)%
111
0.9
%
Total noninterest income
815
871
(6.4
)%
225
262.2
%
Noninterest expense:
Salaries and employee benefits
4,853
4,690
3.5
%
5,267
(7.9
)%
Occupancy expense
465
515
(9.7
)%
547
(15.0
)%
Internet banking and software expense
706
730
(3.3
)%
660
7.0
%
Data processing and network
administration
727
667
9.0
%
601
21.0
%
State franchise taxes
589
590
(0.2
)%
584
0.9
%
Professional fees
224
228
(1.8
)%
213
5.2
%
Other operating expense
1,632
1,575
3.6
%
1,176
38.8
%
Total noninterest expense
9,196
8,996
2.2
%
9,048
1.6
%
Net income before income taxes
6,033
5,340
13.0
%
5,241
15.1
%
Income tax expense
1,364
1,185
15.1
%
1,202
13.5
%
Net Income
$
4,669
$
4,155
12.4
%
$
4,039
15.6
%
Earnings per share - basic
$
0.26
$
0.23
13.0
%
$
0.23
14.6
%
Earnings per share - diluted
$
0.25
$
0.23
8.7
%
$
0.22
13.1
%
Weighted-average common shares outstanding
- basic
18,195,102
18,000,491
1.1
%
17,800,108
2.2
%
Weighted-average common shares outstanding
- diluted
18,433,125
18,341,906
0.5
%
18,274,432
0.9
%
Reconciliation of
Net Income (GAAP) to Commercial Bank Operating Earnings
(Non-GAAP):
GAAP net income reported above
$
4,669
$
4,155
$
4,039
Subtract: provision for income taxes
associated with non-GAAP adjustments
—
—
—
Adjusted Net Income, core bank operating
earnings (non-GAAP)
$
4,669
$
4,155
$
4,039
Adjusted Earnings per share - basic
(non-GAAP core bank operating earnings)
$
0.26
$
0.23
$
0.23
Adjusted Earnings per share - diluted
(non-GAAP core bank operating earnings)
$
0.25
$
0.23
$
0.22
Adjusted Return on average assets
(non-GAAP core bank operating earnings)
0.85
%
0.77
%
0.70
%
Adjusted Return on average equity
(non-GAAP core bank operating earnings)
8.15
%
7.42
%
7.57
%
Adjusted Efficiency ratio (non-GAAP core
bank operating earnings)
61.19
%
61.86
%
66.73
%
Reconciliation of
Net Income (GAAP) to Pre-Tax Pre-Provision Income
(Non-GAAP):
GAAP net income reported above
$
4,669
$
4,155
$
4,039
Add: Provision for credit losses
(200
)
206
(729
)
Add: Income tax expense
1,364
1,185
1,202
Adjusted Pre-tax pre-provision income
$
5,833
$
5,546
$
4,512
Adjusted Earnings per share - basic
(non-GAAP pre-tax pre-provision)
$
0.32
$
0.31
$
0.25
Adjusted Earnings per share - diluted
(non-GAAP pre-tax pre-provision)
$
0.32
$
0.30
$
0.25
Adjusted Return on average assets
(non-GAAP pre-tax pre-provision)
1.07
%
1.02
%
0.78
%
Adjusted Return on average equity
(non-GAAP pre-tax pre-provision)
10.18
%
9.91
%
8.45
%
FVCBankcorp, Inc.
Summary Consolidated
Statements of Income
(Dollars in thousands, except
per share data)
(Unaudited)
For the Nine Months
Ended
September 30, 2024
September 30, 2023
% Change
Net interest income
$
40,676
$
41,737
(2.5
)%
Provision for credit losses
6
132
(95.5
)%
Net interest income after provision for
credit losses
40,670
41,605
(2.2
)%
Noninterest income:
Fees on loans
141
352
(59.9
)%
Service charges on deposit accounts
841
731
15.0
%
BOLI income
326
1,067
(69.4
)%
Income (Loss) from minority membership
interest
425
(1,431
)
(129.7
)%
Loss on sale of available-for-sale
investment securities
—
(4,592
)
(100.0
)%
Other fee income
348
362
(3.9
)%
Total noninterest income (loss)
2,081
(3,511
)
(159.3
)%
Noninterest expense:
Salaries and employee benefits
14,073
15,374
(8.5
)%
Occupancy expense
1,502
1,785
(15.9
)%
Internet banking and software expense
2,130
1,804
18.1
%
Data processing and network
administration
2,029
1,834
10.6
%
State franchise taxes
1,768
1,753
0.9
%
Professional fees
694
644
7.8
%
Other operating expense
4,621
4,067
13.6
%
Total noninterest expense
26,817
27,261
(1.6
)%
Net income before income taxes
15,934
10,833
47.1
%
Income tax expense
5,770
1,941
197.3
%
Net Income
$
10,164
$
8,892
14.3
%
Earnings per share - basic
$
0.56
$
0.50
11.4
%
Earnings per share - diluted
$
0.55
$
0.49
12.6
%
Weighted-average common shares outstanding
- basic
18,008,117
17,696,101
1.8
%
Weighted-average common shares outstanding
- diluted
18,364,171
18,209,830
0.8
%
Reconciliation of
Net Income (GAAP) to Commercial Bank Operating Earnings
(Non-GAAP):
GAAP net income reported above
$
10,164
$
8,892
Add: Loss on sale of available-for-sale
investment securities
—
4,592
Add: Non-recurring tax and 10% modified
endowment contract penalty on early surrender of BOLI policies
2,386
—
Subtract: provision for income taxes
associated with non-GAAP adjustments
—
(1,010
)
Adjusted Net Income, core bank operating
earnings (non-GAAP)
$
12,550
$
12,474
Adjusted Earnings per share - basic
(non-GAAP core bank operating earnings)
$
0.70
$
0.70
Adjusted Earnings per share - diluted
(non-GAAP core bank operating earnings)
$
0.68
$
0.69
Adjusted Return on average assets
(non-GAAP core bank operating earnings)
0.77
%
0.73
%
Adjusted Return on average equity
(non-GAAP core bank operating earnings)
7.46
%
7.97
%
Adjusted Efficiency ratio (non-GAAP core
bank operating earnings)
62.72
%
63.67
%
Reconciliation of
Net Income (GAAP) to Pre-Tax Pre-Provision Income
(Non-GAAP):
GAAP net income reported above
$
10,164
$
8,892
Add: Provision for credit losses
6
132
Add: loss on sale of investment
securities
—
4,592
Add: Non-recurring tax and 10% modified
endowment contract penalty on early surrender of BOLI policies
2,386
—
(Subtract) Add: Income tax expense
3,384
1,941
Adjusted Pre-tax pre-provision income
$
15,940
$
15,557
Adjusted Earnings per share - basic
(non-GAAP pre-tax pre-provision)
$
0.89
$
0.88
Adjusted Earnings per share - diluted
(non-GAAP pre-tax pre-provision)
$
0.87
$
0.85
Adjusted Return on average assets
(non-GAAP pre-tax pre-provision)
0.98
%
0.90
%
Adjusted Return on average equity
(non-GAAP pre-tax pre-provision)
9.47
%
9.93
%
FVCBankcorp, Inc.
Average Statements of
Condition and Yields on Earning Assets and Interest-Bearing
Liabilities
(Dollars in thousands)
(Unaudited)
For the Three Months
Ended
9/30/2024
6/30/2024
9/30/2023
Average Balance
Interest
Income/Expense
Average Yield
Average Balance
Interest
Income/Expense
Average Yield
Average Balance
Interest
Income/Expense
Average Yield
Interest-earning assets:
Loans receivable, net of fees (1)
Commercial real estate
$
1,075,258
$
13,969
5.20
%
$
1,087,064
$
13,795
5.08
%
$
1,106,429
$
13,586
4.91
%
Commercial and industrial
268,484
5,558
8.28
%
253,485
5,022
7.92
%
218,815
4,071
7.44
%
Commercial construction
168,155
3,175
7.55
%
162,711
2,918
7.17
%
154,569
2,780
7.19
%
Consumer real estate
334,385
4,047
4.84
%
347,180
4,116
4.74
%
363,713
4,359
4.79
%
Warehouse facilities
26,043
489
7.51
%
26,000
483
7.44
%
19,944
331
6.65
%
Consumer nonresidential
6,827
143
8.38
%
5,902
123
8.34
%
5,349
116
8.67
%
Total loans
1,879,152
27,381
5.83
%
1,882,342
26,457
5.62
%
1,868,819
25,243
5.40
%
Investment securities (2)
205,019
1,050
2.05
%
211,630
1,114
2.10
%
281,382
1,308
1.86
%
Interest-bearing deposits at other
financial institutions
57,984
802
5.50
%
29,459
401
5.48
%
64,722
876
5.37
%
Total interest-earning assets
2,142,155
$
29,233
5.46
%
2,123,431
$
27,972
5.27
%
2,214,923
$
27,427
4.95
%
Non-interest earning assets:
Cash and due from banks
7,443
7,553
6,721
Premises and equipment, net
892
979
1,083
Accrued interest and other assets
56,312
57,755
99,575
Allowance for credit losses
(19,219
)
(18,932
)
(19,432
)
Total Assets
$
2,187,583
$
2,170,786
$
2,302,870
Interest-bearing liabilities:
Interest checking
$
620,256
$
5,652
3.62
%
$
549,071
$
4,622
3.39
%
$
641,746
$
5,134
3.17
%
Savings and money market
362,663
3,482
3.82
%
334,627
3,081
3.70
%
240,504
1,544
2.55
%
Time deposits
264,125
2,929
4.41
%
286,910
3,104
4.35
%
359,217
3,550
3.92
%
Wholesale deposits
249,851
2,136
3.40
%
249,846
2,087
3.36
%
366,667
3,571
3.86
%
Total interest-bearing deposits
1,496,895
14,199
3.77
%
1,420,454
12,894
3.65
%
1,608,134
13,799
3.40
%
Other borrowed funds
57,000
563
3.93
%
99,758
1,150
4.63
%
9,141
35
1.53
%
Subordinated notes, net of issuance
costs
19,656
257
5.21
%
19,639
257
5.27
%
19,597
259
5.21
%
Total interest-bearing liabilities
1,573,551
$
15,019
3.80
%
1,539,851
$
14,301
3.74
%
1,636,872
$
14,093
3.42
%
Noninterest-bearing
liabilities:
Noninterest-bearing deposits
358,618
378,280
425,807
Other liabilities
26,252
28,741
26,681
Shareholders’ equity
229,162
223,914
213,510
Total Liabilities and Shareholders'
Equity
$
2,187,583
$
2,170,786
$
2,302,870
Net Interest Margin
$
14,214
2.64
%
$
13,671
2.59
%
$
13,335
2.39
%
(1)
Non-accrual loans are included in average balances.
(2)
The average balances for investment securities includes
restricted stock.
FVCBankcorp, Inc.
Average Statements of
Condition and Yields on Earning Assets and Interest-Bearing
Liabilities
(Dollars in thousands)
(Unaudited)
For the Nine Months
Ended
9/30/2024
9/30/2023
Average Balance
Interest
Income/Expense
Average Yield
Average Balance
Interest
Income/Expense
Average Yield
Interest-earning assets:
Loans receivable, net of fees (1)
Commercial real estate
$
1,084,436
$
41,325
5.08
%
$
1,107,935
$
39,807
4.79
%
Commercial and industrial
250,106
14,941
7.97
%
206,447
11,254
7.27
%
Commercial construction
161,159
8,845
7.32
%
154,862
8,233
7.09
%
Consumer real estate
346,771
12,604
4.85
%
356,430
12,648
4.73
%
Warehouse facilities
18,885
1,060
7.48
%
24,272
1,265
6.95
%
Consumer nonresidential
6,146
377
8.18
%
6,062
418
9.20
%
Total loans
1,867,503
79,152
5.65
%
1,856,008
73,625
5.29
%
Investment securities (2)
210,536
3,305
2.09
%
299,078
4,317
1.93
%
Interest-bearing deposits at other
financial institutions
38,397
1,575
5.48
%
52,711
2,022
5.13
%
Total interest-earning assets
2,116,436
$
84,032
5.29
%
2,207,797
$
79,964
4.83
%
Non-interest earning assets:
Cash and due from banks
6,982
6,159
Premises and equipment, net
949
1,147
Accrued interest and other assets
67,311
96,985
Allowance for credit losses
(19,012
)
(18,523
)
Total Assets
$
2,172,666
$
2,293,565
Interest-bearing liabilities:
Interest checking
$
556,650
$
14,215
3.41
%
$
564,765
$
11,595
2.74
%
Savings and money market
332,663
9,071
3.64
%
259,308
4,307
2.22
%
Time deposits
283,897
9,240
4.35
%
351,762
9,292
3.53
%
Wholesale deposits
268,295
7,108
3.54
%
332,217
9,398
3.78
%
Total interest-bearing deposits
1,441,505
39,634
3.67
%
1,508,052
34,592
3.07
%
Other borrowed funds
88,082
2,950
4.47
%
98,378
2,862
3.89
%
Subordinated notes, net of issuance
costs
19,640
772
5.25
%
19,583
773
5.27
%
Total interest-bearing liabilities
1,549,227
$
43,356
3.74
%
1,626,013
$
38,227
3.14
%
Noninterest-bearing
liabilities:
Noninterest-bearing deposits
372,289
433,335
Other liabilities
26,759
25,413
Shareholders’ equity
224,391
208,804
Total Liabilities and Shareholders'
Equity
$
2,172,666
$
2,293,565
Net Interest Margin
$
40,676
2.57
%
$
41,737
2.53
%
(1)
Non-accrual loans are included in average balances.
(2)
The average balances for investment securities includes
restricted stock.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241022873588/en/
David W. Pijor, Esq., Chairman and Chief Executive Officer
Phone: (703) 436-3802 Email: dpijor@fvcbank.com
Patricia A. Ferrick, President Phone: (703) 436-3822 Email:
pferrick@fvcbank.com
FVCBankcorp (NASDAQ:FVCB)
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