Continued Growth in Profitability, Net
Interest Income and Margin
FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported
its financial results for the fourth quarter and full year of
2024.
Fourth Quarter Selected Financial Highlights
- Net Income Increased 5% Compared to the Prior Quarter.
Net income totaled $4.9 million, or $0.26 diluted earnings per
share, for the quarter ended December 31, 2024, compared to net
income of $4.7 million, or $0.25 diluted earnings per share, for
the quarter ended September 30, 2024. Return on average assets for
the quarter ended December 31, 2024 was 0.90%, an increase from
0.85% for the quarter ended September 30, 2024.
- Net Interest Margin Improved 17% Compared to the Year Ago
Quarter. Net interest income increased $2.3 million, or 18%, to
$14.9 million for the fourth quarter 2024, compared to $12.7
million for the year ago quarter ended December 31, 2024. Net
interest margin increased 40 basis points, or 17%, to 2.77% for the
fourth quarter of 2024, compared to 2.37% for the fourth quarter of
2023. On a linked quarter basis, net interest margin increased 13
basis points, or 5%, from 2.64% for the three months ended
September 30, 2024, the fourth consecutive quarter of margin
improvement.
- Noninterest Expense Decreased 2% for Both Fourth Quarter and
Full Year 2024. Noninterest expense for the quarter ended
December 31, 2024 totaled $9.0 million, a decrease of $194
thousand, or 2%, when compared to the linked quarter ended
September 30, 2024 and decreased $400 thousand, or 4%, when
compared to the year ago quarter ended December 31, 2023. The
efficiency ratio for the quarter ended December 31, 2024 improved
to 58.6%. Year-over-year, noninterest expense decreased $842
thousand, or 2%.
- Sound, Well Capitalized Balance Sheet. All of FVCbank’s
(the “Bank”) regulatory capital components and ratios were in
excess of thresholds required to be considered "well capitalized,"
with total risk-based capital to risk-weighted assets of 14.73% at
December 31, 2024, compared to 13.83% at December 31, 2023, an
increase of 7%. The tangible common equity ("TCE") to tangible
assets ("TA") ratio for the Bank increased to 10.87% at December
31, 2024, from 10.12% at December 31, 2023. The Bank’s investment
securities are classified as available-for-sale, and therefore the
unrealized losses on these securities is fully reflected in the
TCE/TA ratio.
For the three months ended December 31, 2024, the Company
recorded net income of $4.9 million, or $0.26 diluted earnings per
share, compared to a net loss of $5.1 million, or $0.28 diluted
loss per share, for the quarter ended December 31, 2023. During the
fourth quarter of 2023, the Company sold a portion of its
investment portfolio totaling $61.4 million of book value
available-for-sale securities which resulted in an after-tax loss
of $8.5 million. In addition, the Company reduced excess office
space and consolidated two branch locations which resulted in $336
thousand in lease write-offs and severance costs.
For the year ended December 31, 2024, the Company reported net
income of $15.1 million, or $0.82 diluted earnings per share, an
increase of $11.2 million, compared to net income of $3.8 million,
or $0.21 diluted earnings per share for the year ended December 31,
2023. During 2024, the Company surrendered $48.0 million in
bank-owned life insurance (“BOLI”), which resulted in a
nonrecurring increase of $2.4 million to the Company’s tax
provisioning related to the gain associated with the cash payout.
For the year ended December 31, 2023, net income included after-tax
losses totaling $12.2 million related to sale of $101.7 million in
book value available-for-sale investment securities and
nonrecurring noninterest expense totaling $457 thousand for office
space reductions and severance costs.
Commercial bank operating earnings (non-GAAP) exclude the above
noted taxes recorded for the aforementioned BOLI surrender during
2024 and the losses on the sale of available-for-sale investment
securities during 2023 along with the office space reductions and
severance costs. Excluding these nonrecurring items, commercial
bank operating earnings for the quarters ended December 31, 2024
and 2023 were $4.9 million and $3.8 million, respectively, an
increase of $1.1 million, or 30%. Commercial bank operating
earnings for the year ended December 31, 2024 and 2023 were $17.4
million and $16.3 million, respectively, an increase of $1.1
million, or 7%. Diluted commercial bank operating earnings per
share (non-GAAP) for the three months ended December 31, 2024 and
2023 were $0.26 and $0.21, respectively. Diluted commercial bank
operating earnings per share (non-GAAP) for the year ended December
31, 2024 and 2023 were $0.95 and $0.90, 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:
“We made extensive progress during 2024 to improve our
profitability due to our continued focus on quality core growth,
increased net interest margin, and improved efficiency. 2024 proved
that the difficult decisions we made on balance sheet
repositionings during 2023 were appropriate. We are focused on
improving upon the progress made during 2024, with continued core
loan and deposit growth. Our relationship banking model has allowed
us to increase our commercial loan outstandings and commitments,
and reduce our reliance on commercial real estate loans. In
addition, our approach to balance technology offerings with
exceptional personalized customer service continues to support the
expansion of our client base. Each of these strategies continues to
increase shareholder value, still the driver of every core
initiative of FVCbank.”
Statement of Condition
Total assets were $2.20 billion at December 31, 2024 and $2.19
billion at December 31, 2023, an increase of $8.4 million.
Loans receivable, net of deferred fees, were $1.87 billion at
December 31, 2024 and $1.83 billion at December 31, 2023, an
increase of $41.7 million, or 2%. During the fourth quarter of
2024, loan originations totaled $36.5 million with a weighted
average rate of 7.84%, and were primarily comprised of commercial
and industrial loans. Loan renewals totaled $21.5 million and had a
weighted average rate of 8.45%. Loans that paid off during the
fourth quarter of 2024 totaled $44.4 million and had a weighted
average rate of 6.12%, and were primarily comprised of commercial
real estate and construction loans.
Investment securities were $156.7 million at December 31, 2024
and $171.9 million at December 31, 2023. During the year ended
December 31, 2024, investment securities decreased $15.1 million,
due primarily to principal repayments and maturities totaling $15.7
million, and an increase in the portfolio’s unrealized losses
totaling $1.3 million.
Total deposits were $1.87 billion at December 31, 2024 and $1.85
billion at December 31, 2023, an increase of $25.3 million.
Noninterest-bearing deposits were $365.7 million at December 31,
2024, or 19.5% of total deposits, and decreased $31.1 million
during 2024, as customers continue to move to interest-bearing
deposit products. New noninterest-bearing deposits totaled $10.2
million for the quarter ended December 31, 2024. As a member of the
IntraFi Network, the Bank offers products to its customers who seek
to maximize FDIC insurance protection (“reciprocal deposits”). At
December 31, 2024 and December 31, 2023, reciprocal deposits
totaled $269.7 million and $254.1 million, respectively, and are
considered part of the Company’s core deposit base. Time deposits
decreased $58.2 million to $248.2 million during 2024 as time
deposits that were originated during 2023 with a weighted average
rate of 4.81% matured during 2024. The Company continues to have
consistent core deposit inflows at lower interest rates.
At December 31, 2024, wholesale funding totaled $299.9 million
and had a weighted average rate of 3.44% (including $250 million in
pay-fixed/receive-floating interest rate swaps at an average rate
of 3.25%). Wholesale funding at December 31, 2024 includes
wholesale deposits totaling $249.9 million and other borrowed funds
totaling $50.0 million. For the quarter ended December 31, 2024,
the cost of wholesale funding was 3.57% compared to a cost of 3.73%
for the year ended December 31, 2024.
Shareholders’ equity at December 31, 2024 was $235.4 million, an
increase of $18.2 million, or 8%, from December 31, 2023. Earnings
for the full year of 2024 earnings contributed $15.1 million to the
increase in shareholders’ equity. Common stock issued during 2024
for stock options exercised contributed $2.1 million to
shareholders’ equity. Accumulated other comprehensive loss
decreased $894 thousand for the year ended December 31, 2024, which
was primarily related to the change in the Company’s other
comprehensive income associated with its cash flow hedges at
December 31, 2024.
Tangible book value per share (a non-GAAP financial measure
which is defined in the tables below) at December 31, 2024 and
December 31, 2023 was $12.52 and $11.77, respectively, an increase
of 6%. Tangible book value per share, excluding accumulated other
comprehensive loss (a non-GAAP financial measure which is defined
in the tables below), at December 31, 2024 and December 31, 2023
was $13.80 and $13.12, respectively.
The Bank was well-capitalized at December 31, 2024, with total
risk-based capital ratio of 14.73%, common equity tier 1 risk-based
capital ratio of 13.74%, and tier 1 leverage ratio of 11.74%.
Asset Quality
For each of the three month periods ended December 31, 2024 and
2023, the Company recorded no provision for credit losses. For the
years ended December 31, 2024 and 2023, the Company recorded
provision for credit losses totaling $6 thousand and $132 thousand,
respectively At December 31, 2024 and 2023, the allowance for
credit losses (“ACL”) was $18.1 million and $18.9 million,
respectively. The ACL to total loans, net of fees, was 0.97% at
December 31, 2024, compared to 1.03% at December 31, 2023. The
decrease in the ACL was primarily attributable to the improved
economic forecast used for the quantitative portion of the ACL
calculation during 2024 and a decrease in reserves for individually
evaluated loans due to two loan charge-offs recorded during the
fourth quarter of 2024.
Nonaccrual loans and loans 90 days or more past due at December
31, 2024 totaled $12.8 million, or 0.58% of total assets, compared
to $1.8 million, or 0.08% of total assets, at December 31, 2023.
The increase in nonperforming loans at December 31, 2024 is
primarily a result of one commercial real estate loan placed on
nonaccrual during the fourth quarter of 2024, totaling $10.3
million, which is well collateralized. Total watchlist loans
decreased $14.3 million, or 50%, to $14.5 million at December 31,
2024 compared to December 31, 2023. The Company had no other real
estate owned at December 31, 2024 and 2023.
The Company recorded net charge-offs of $937 thousand and $839
thousand for the three and twelve months ended December 31, 2024,
respectively. The increase in net charge-offs for the quarter and
year ended December 31, 2024 is a result of two loan relationships
that were individually evaluated in prior periods and for which
reserves had been established for the shortfall of the related
collateral. Each loan relationship had specific circumstances that
are not indicative of any systemic issues within the Company’s loan
portfolio. The specific reserves on these loans totaled $802
thousand, and contributed to the decrease in the ACL as these
specific reserves were applied to the loans when they were
determined uncollectible.
At December 31, 2024, commercial real estate loans totaled $1.04
billion, or 56% of total loans, net of fees, and construction loans
totaled $162.4 million, or 9% of total loans, net of fees. Included
in commercial real estate loans are loans secured by office
properties totaling $123.8 million, or 7% of total loans, which are
primarily located in the Virginia and Maryland suburbs of the
Company’s market area, with only $2.3 million, or 0.12% of total
loans, located in Washington, D.C. Loans secured by retail
properties totaled $251.0 million, or 13% of total loans, at
December 31, 2024. Loans secured by multi-family properties totaled
$162.8 million, or 9% of total loans, at December 31, 2024. The
commercial real estate portfolio, including construction loans, is
diversified by asset type and geographic concentration. The Company
manages this portion of the portfolio in a disciplined manner, and
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 December 31, 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
69
%
6
$
7,374
46
%
1
$
2,982
—
$
—
$
10,356
Office, Class B
45
%
27
10,173
45
%
29
56,502
—
—
66,675
Office, Class C
53
%
9
5,326
39
%
8
1,842
1
857
8,025
Office, Medical
39
%
7
1,093
47
%
6
28,060
1
9,633
38,786
Subtotal
49
$
23,966
44
$
89,386
2
$
10,490
$
123,842
7
%
Retail- Neighborhood/Community Shop
—
$
—
44
%
31
$
86,706
Prince George's County, Maryland,
Baltimore County, MD, Fairfax County, VA
1
$
5,538
$
92,244
Retail- Restaurant
57
%
7
6,152
44
%
16
25,832
—
—
31,984
Retail- Single Tenant
58
%
5
1,919
41
%
20
35,856
—
—
37,775
Retail- Anchored, Other
—
—
52
%
12
35,266
—
—
35,266
Retail- Grocery-anchored
—
—
46
%
9
53,753
0
—
53,753
Subtotal
12
$
8,071
88
$
237,413
1
$
5,538
$
251,022
13
%
Multi-family, Class A (Market)
—
$
—
2
$
1,438
Washington, D.C., Baltimore City,
Maryland and Richmond City, Virginia
1
$
1,276
$
2,714
Multi-family, Class B (Market)
—
—
62
%
21
69,752
1
3,991
73,743
Multi-family, Class C (Market)
—
—
55
%
58
73,141
1
997
74,138
Multi-Family-Affordable Housing
—
—
52
%
5
12,157
0
—
12,157
Subtotal
—
$
—
86
$
156,488
3
$
6,264
$
162,752
9
%
Industrial
51
%
40
$
65,926
47
%
39
$
124,079
Prince William County, Virginia,
Fairfax County, Virginia and Howard County, Maryland
1
$
1,781
$
191,786
Warehouse
51
%
14
18,745
27
%
7
9,188
—
—
27,933
Flex
50
%
12
10,212
54
%
14
56,393
3
132
66,737
Subtotal
66
$
94,883
60
$
189,660
4
$
1,913
$
286,456
15
%
Hotels
$
—
43
%
9
$
54,752
1
$
7,791
$
62,543
3
%
Mixed Use
45
%
10
$
5,745
60
%
33
$
60,898
—
$
—
$
66,643
4
%
Land
$
—
$
—
11
$
57,213
$
57,213
3
%
1-4 Family construction
$
—
$
—
3
$
48,504
$
48,504
2
%
Other (including net deferred fees)
$
55,517
$
61,528
$
24,654
$
141,699
8
%
Total commercial real estate and
construction loans, net of fees, at December 31, 2024
$
188,182
$
850,125
$
162,367
$
1,200,674
64
%
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, with one classified delinquency at December 31, 2024
totaling $10.2 million, which has a specific reserve totaling $468
thousand. 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
For the year ended December 31, 2024, the Company recorded
income of $376 thousand compared to a loss of $1.1 million for the
year ended December 31, 2023, related to its investment in Atlantic
Coast Mortgage (“ACM”). For the three months ended December 31,
2024 and 2023, the Company reported a loss of $49 thousand and
income of $321 thousand, respectively. 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.
Income Statement
The Company recorded net income of $4.9 million for the three
months ended December 31, 2024 compared to a loss of $5.1 million
for the three months ended December 31, 2023. Compared to the
linked quarter, net income for the three months ended December 31,
2024 increased $231 thousand, or 5%, from $4.7 million for the
three months ended September 30, 2024.
Net interest income increased $2.3 million, or 18%, to $14.9
million for the quarter ended December 31, 2024, compared to $12.7
million for the fourth quarter of 2023, and increased $699
thousand, or 5%, compared to the linked quarter ended September 30,
2024. Compared to the year ago quarter ended December 31, 2023, the
increase in net interest income for the fourth quarter of 2024 was
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 40 basis points to
2.77% for the quarter ended December 31, 2024 compared to 2.37% for
the quarter ended December 31, 2023, and increased 13 basis points
from 2.64% for the linked quarter ended September 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, interest income increased $2.6
million, or 10%, to $29.3 million, for the fourth quarter of 2024
compared to the quarter ended December 31, 2023. Loan interest
income increased $2.8 million, or 11%, to $27.5 million for the
three months ended December 31, 2024, compared to $24.7 million for
the three months ended December 31, 2023, as average total loans
increased $49.9 million during this same comparable period. The
Company has actively managed its maturing commercial real estate
loan portfolio and further diversified its loan mix toward
commercial & industrial loans, which generally earn higher
yields. For the sixth consecutive quarter, the Company recorded an
increase in loan yields. Loan yields increased 45 basis points to
5.87% for the three months ended December 31, 2024 compared to the
same period of 2023. The yield on earning assets increased 45 basis
points to 5.47% for the three months ended December 31, 2024
compared to 5.02% 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 December 31, 2024, approximately $459.8 million, or 30%, of
the Company’s commercial loan portfolio, which is comprised of the
following, is expected to reprice in the next 12 months: $113.1
million in fixed rate commercial loans, and $24.1 million in
variable rate commercial loans, with an additional $322.6 million
in floating rate loans priced currently at market rates. Within the
following 24-36 months, $253.1 million in fixed rate commercial
loans are scheduled to reprice and an additional $101.0 million in
variable rate commercial loans are scheduled to reprice,
representing 23% of the current commercial 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.
Interest expense increased $376 thousand, or 3%, to $14.4
million, for the quarter ended December 31, 2024, compared to $14.0
million for the quarter ended December 31, 2023. On a linked
quarter basis, interest expense decreased $651 thousand, or 4%,
compared to the quarter ended September 30, 2024. Interest expense
on deposits increased $819 thousand to $13.6 million for the three
months ended December 31, 2024 compared to the three months ended
December 31, 2023, reflecting the increase in average balances of
non-maturity deposits during 2024. On a linked quarter basis,
interest expense on deposits decreased $627 thousand, or 4%, from
$14.2 million for the quarter ended September 30, 2024. The cost of
deposits (which includes noninterest-bearing deposits) for the
fourth quarter ended December 31, 2024 was 2.92%, a decrease of 12
basis points from the previous quarter end. Interest expense on
other borrowed funds for the quarter ended December 31, 2024
decreased $440 thousand, or 45%, to $542 thousand from $982
thousand, for the quarter ended December 31, 2023. The cost of
interest-bearing liabilities for the fourth quarter of 2024 was
3.64% compared to 3.80% for the third quarter of 2024, a decrease
of 16 basis points compared to an increase of 9 basis points from
3.55% for the year ago quarter, demonstrating the Company’s ability
to reprice funding costs downward simultaneously with federal funds
rate decisions during 2024. The Company continues to decrease
interest rates on its various deposit products going into 2025.
Net interest income for the twelve months ended December 31,
2024 and 2023 was $55.6 million and $54.4 million, respectively, an
increase of $1.2 million, or 2%, year-over-year. Interest income
increased $6.7 million, or 6%, to $113.3 million for the twelve
months ended December 31, 2024 as compared to $106.6 million for
the comparable 2023 period. Interest expense totaled $57.7 million
for the twelve months ended December 31, 2024, an increase of $5.5
million, compared to $52.2 million for the twelve months ended
December 31, 2023. The Company’s net interest margin for the twelve
months ended December 31, 2024 increased 13 basis points, or 5%, to
2.62% compared to 2.49% for the year ago twelve month period of
2023.
Noninterest income for the three months ended December 31, 2024
totaled $452 thousand compared a loss of $9.9 million for the three
months ended December 31, 2023 and $815 thousand for the three
months ended September 30, 2024.
Fee income from loans was $43 thousand for the quarter ended
December 31, 2024, compared to $35 thousand for the fourth quarter
of 2023. Service charges on deposit accounts totaled $285 thousand
for the fourth quarter of 2024, compared to $296 thousand for the
year ago quarter. Income from BOLI decreased $314 thousand to $71
thousand for the three months ended December 31, 2024, compared to
$385 thousand for the same period of 2023, a direct result of the
Company's surrender of BOLI policies in the first quarter of 2024.
As previously mentioned, the Company recorded a loss of $49
thousand in connection with its minority interest in ACM for the
three months ended December 31, 2024, compared to income of $321
thousand for the same period of 2023, and income of $278 thousand
for the linked quarter ended September 30, 2024.
For the year ended December 31, 2024, the Company recorded
noninterest income totaling $2.5 million, compared to a loss of
$13.4 million for the year ended December 31, 2023, which was
primarily associated with its securities sales transaction executed
during 2023. Fee income from loans was $185 thousand for the year
ended December 31, 2024, compared to $388 thousand for the year
ended December 31, 2023, which included fee income from
back-to-back loan swap transactions entered into during 2023
totaling $187 thousand. Service charges on deposit accounts totaled
$1.1 million for the year ended December 31, 2024, compared to $1.0
million for the prior year. Income from BOLI decreased $1.1 million
to $397 thousand for the year ended December 31, 2024, compared to
$1.5 million for the year ended December 31, 2023, a direct result
of the surrendered BOLI that occurred during the first quarter of
2024. Income from the Company’s minority interest in ACM was $376
thousand for the year ended December 31, 2024, compared to a loss
of $1.1 million for the same period of 2023.
Noninterest expense totaled $9.0 million for the quarter ended
December 31, 2024, a decrease of $400 thousand, or 4%, compared to
$9.4 million for the year ago quarter ended December 31, 2023,
which included $336 thousand in costs associated with the Company’s
office space reduction efforts in 2023. On a linked quarter basis,
noninterest expense decreased $194 thousand, or 2%, from $9.2
million for the three months ended September 30, 2024, primarily
due to a decrease in salaries and benefits expense during the
fourth quarter of 2024. Compared to the year ago quarter, salaries
and benefits expense decreased $590 thousand, or 11%, for the three
months ended December 31, 2024. The decreases in salaries and
benefits expense is primarily a result of reduced staffing and
process improvement through the use of technology. Full-time
equivalent employees have decreased from 118 at December 31, 2023
to 112 at December 31, 2024, which includes vacancies that are in
the process of being filled.
Internet banking and software expense increased $159 thousand to
$860 thousand for the fourth quarter of 2024 compared to the
quarter ended December 31, 2023, primarily as a result of the
implementation of enhanced customer software solutions. Other
operating expenses totaled $1.4 million for fourth quarter of 2024
compared to $1.2 million for the year ago quarter ended December
31, 2023, an increase of $270 thousand, which was primarily a
result of loan workout expenses that were collected by the Bank
during the fourth quarter of 2023. The Company continues to
identify and assess opportunities to reduce operating expenses.
For the years ended December 31, 2024 and 2023, noninterest
expense was $35.8 million and $36.7 million, respectively, a
decrease of $842 thousand, or 2%, primarily as a result of the
aforementioned decreases in salaries and benefits expenses.
Additionally, occupancy expense decreased $330 thousand to $2.0
million for the year ended December 31, 2024 as compared to $2.4
million for the year ended December 31, 2023, a direct result of
the reduction in office space that occurred during 2023. Internet
banking and software expense increased $485 thousand to $3.0
million for full year 2024 compared to $2.5 million for 2023,
primarily as a result of the implementation of enhanced customer
software solutions. Other operating expenses totaled $6.0 million
for the year ended December 31, 2024 compared to $5.2 million for
the year ended December 31, 2023, an increase of $827 thousand,
which was primarily a result of loan workout expenses that were
reimbursed to the Bank during 2023.
The efficiency ratio for core bank operating earnings (non-GAAP)
for the quarters ended December 31, 2024, September 30, 2024, and
December 31, 2023, was 58.6%, 61.2%, and 65.8%, respectively. For
the years ended December 31, 2024 and 2023, the efficiency ratio
for core bank operating earnings (non-GAAP), was 61.6% and 64.0%,
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 $1.5
million for the three months ended December 31, 2024 and a tax
benefit of $1.5 million for the three months ended December 31,
2023. For the years ended December 31, 2024 and 2023, provisions
for income taxes were $7.2 million and $410 thousand, respectively.
The 2024 period includes an additional $2.4 million which is
associated with the Company’s surrender of BOLI policies in 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 $2.20 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 Years Ended,
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Selected Balances
Total assets
$
2,198,950
$
2,190,558
Total investment securities
164,926
181,347
Total loans, net of deferred fees
1,870,235
1,828,564
Allowance for credit losses on loans
(18,129
)
(18,871
)
Total deposits
1,870,605
1,845,292
Subordinated debt
18,695
19,620
Other borrowings
50,000
85,000
Reserve for unfunded commitments
510
602
Total shareholders' equity
235,354
217,117
Summary Results of Operations
Interest income
$
29,281
$
26,651
$
113,313
$
106,615
Interest expense
14,367
13,992
57,723
52,219
Net interest income
14,913
12,659
55,589
54,396
Provision for credit losses
—
—
6
132
Net interest income after provision for
credit losses
14,913
12,659
55,583
54,264
Noninterest income - loan fees, service
charges and other
422
420
1,752
1,865
Noninterest income - bank owned life
insurance
71
385
397
1,452
Noninterest income (loss) on minority
membership interest
(49
)
321
376
(1,110
)
Noninterest gain (loss) on sale of
available-for-sale investment securities
9
(10,985
)
9
(15,577
)
Noninterest expense
9,002
9,402
35,820
36,662
Income (Loss) before taxes
6,363
(6,602
)
22,297
4,232
Income tax expense (benefit)
1,463
(1,531
)
7,233
410
Net income (loss)
4,900
(5,071
)
15,064
3,822
Per Share Data
Net income (loss), basic
$
0.27
$
(0.28
)
$
0.83
$
0.22
Net income (loss), diluted
$
0.26
$
(0.28
)
$
0.82
$
0.21
Book value
$
12.93
$
12.19
Tangible book value (1)
$
12.52
$
11.77
Tangible book value, excluding accumulated
other comprehensive losses (1)
$
13.80
$
13.12
Shares outstanding
18,204,455
17,806,995
Selected Ratios
Net interest margin (2)
2.77
%
2.37
%
2.62
%
2.49
%
Return (loss) on average assets
(2)
0.90
%
(0.92
)%
0.69
%
0.17
%
Return (loss) on average equity
(2)
8.37
%
(9.51
)%
6.64
%
1.82
%
Efficiency (3)
58.58
%
NM
61.63
%
89.36
%
Loans, net of deferred fees to total
deposits
99.98
%
99.09
%
Noninterest-bearing deposits to total
deposits
19.55
%
21.50
%
Reconciliation of Net Income (GAAP) to
Commercial Bank Operating Earnings (Non-GAAP)(4)
GAAP net income (loss) reported above
$
4,900
$
(5,071
)
$
15,064
$
3,822
(Gain) loss on sale of available-for-sale
investment securities
(9
)
10,985
(9
)
15,577
Non-recurring tax and 10% modified
endowment contract penalty on early surrender of BOLI policies
—
—
2,386
—
Office space reduction and severance
costs
—
336
—
457
Income tax benefit associated with
non-GAAP adjustments
—
(2,490
)
—
(3,527
)
Adjusted Net Income, core bank operating
earnings (non-GAAP)
$
4,891
$
3,760
$
17,441
$
16,329
Adjusted Earnings per share - basic
(non-GAAP core bank operating earnings)
$
0.27
$
0.21
$
0.97
$
0.92
Adjusted Earnings per share - diluted
(non-GAAP core bank operating earnings)
$
0.26
$
0.21
$
0.95
$
0.90
Adjusted Return on average assets
(non-GAAP core bank operating earnings)
0.90
%
0.68
%
0.80
%
0.72
%
Adjusted Return on average equity
(non-GAAP core bank operating earnings)
8.36
%
7.06
%
7.69
%
7.78
%
Adjusted Efficiency ratio (non-GAAP core
bank operating earnings)(3)
58.62
%
65.77
%
61.63
%
63.96
%
Capital Ratios - Bank
Tangible common equity (to tangible
assets)
10.87
%
10.12
%
Total risk-based capital (to risk weighted
assets)
14.73
%
13.83
%
Common equity tier 1 capital (to risk
weighted assets)
13.74
%
12.80
%
Tier 1 leverage (to average assets)
11.74
%
10.77
%
Asset Quality
Nonperforming loans
$
12,823
$
1,829
Nonperforming loans to total assets
0.58
%
0.08
%
Nonperforming assets to total assets
0.58
%
0.08
%
Allowance for credit losses on loans to
loans
0.97
%
1.06
%
Allowance for credit losses on to
nonperforming loans
141.38
%
1064.70
%
Net charge-offs
$
937
$
49
$
839
$
375
Net charge-offs to average loans
(2)
0.20
%
0.01
%
0.04
%
0.02
%
Selected Average Balances
Total assets
$
2,185,879
$
2,210,366
$
2,175,987
$
2,272,594
Total earning assets
2,139,505
2,123,455
2,122,236
2,186,467
Total loans, net of deferred fees
1,875,328
1,825,472
1,869,470
1,848,308
Total deposits
1,851,402
1,836,826
1,823,247
1,915,032
Other Data
Noninterest-bearing deposits
$
365,666
$
396,724
Interest-bearing checking, savings and
money market
1,006,898
896,969
Time deposits
248,154
306,349
Wholesale deposits
249,887
245,250
(1) Non-GAAP
Reconciliation
(Dollars in thousands, except per share
data)
Total shareholders’ equity
$
235,354
$
217,117
Goodwill and intangibles, net
(7,420
)
(7,585
)
Tangible Common Equity
$
227,934
$
209,532
Accumulated Other Comprehensive Income
(Loss) ("AOCI")
(23,266
)
(24,160
)
Tangible Common Equity excluding
AOCI
$
251,200
$
233,692
Book value per common share
$
12.93
12.19
Intangible book value per common share
(0.41
)
(0.42
)
Tangible book value per common
share
$
12.52
$
11.77
AOCI (loss) per common share
(1.28
)
(1.35
)
Tangible book value per common share,
excluding AOCI
$
13.80
$
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)
December 31, 2024
September 30, 2024
% Change Current
Quarter
December 31, 2023
% Change From Year Ago
Cash and due from banks
$
8,161
$
10,051
(18.8
)%
$
8,042
1.5
%
Interest-bearing deposits at other
financial institutions
82,789
167,575
(50.6
)%
52,480
57.8
%
Investment securities
156,740
165,296
(5.2
)%
171,859
(8.8
)%
Restricted stock, at cost
8,186
8,186
—
%
9,488
(13.7
)%
Loans, net of fees:
Commercial real estate
1,038,307
1,062,978
(2.3
)%
1,091,633
(4.9
)%
Commercial and industrial
314,274
288,821
8.8
%
216,367
45.3
%
Commercial construction
162,367
173,806
(6.6
)%
147,998
9.7
%
Consumer real estate
325,313
331,713
(1.9
)%
363,317
(10.5
)%
Warehouse facilities
22,388
10,777
107.7
%
3,506
538.6
%
Consumer nonresidential
7,586
6,851
10.7
%
5,743
32.1
%
Total loans, net of fees
1,870,235
1,874,946
(0.3
)%
1,828,564
2.3
%
Allowance for credit losses on loans
(18,129
)
(19,067
)
(4.9
)%
(18,871
)
(3.9
)%
Loans, net
1,852,106
1,855,879
(0.2
)%
1,809,693
2.3
%
Premises and equipment, net
858
866
(0.9
)%
997
(13.9
)%
Goodwill and intangibles, net
7,420
7,457
(0.5
)%
7,585
(2.2
)%
Bank owned life insurance (BOLI)
9,219
9,148
0.8
%
56,823
(83.8
)%
Other assets
73,471
68,824
6.8
%
73,591
(0.2
)%
Total Assets
$
2,198,950
$
2,293,282
(4.1
)%
$
2,190,558
0.4
%
Deposits:
Noninterest-bearing
$
365,666
$
357,028
2.4
%
$
396,724
(7.8
)%
Interest checking
623,811
615,839
1.3
%
576,471
8.2
%
Savings and money market
383,087
491,496
(22.1
)%
320,498
19.5
%
Time deposits
248,154
246,527
0.7
%
306,349
(19.0
)%
Wholesale deposits
249,887
249,877
—
%
245,250
1.9
%
Total deposits
1,870,605
1,960,767
(4.6
)%
1,845,292
1.4
%
Other borrowed funds
50,000
57,000
(12.3
)%
85,000
(41.2
)%
Subordinated notes, net of issuance
costs
18,695
19,666
(4.9
)%
19,620
(4.7
)%
Reserve for unfunded commitments
510
510
—
%
602
(15.3
)%
Other liabilities
23,786
24,509
(2.9
)%
22,927
3.7
%
Shareholders’ equity
235,354
230,830
2.0
%
217,117
8.4
%
Total Liabilities & Shareholders'
Equity
$
2,198,950
$
2,293,282
(4.1
)%
$
2,190,558
0.4
%
FVCBankcorp, Inc.
Summary Consolidated
Statements of Income
(Dollars in thousands, except
per share data)
(Unaudited)
For the Three Months
Ended
December 31, 2024
September 30, 2024
% Change Current
Quarter
December 31, 2023
% Change From Year Ago
Net interest income
$
14,913
$
14,214
4.9
%
$
12,659
17.8
%
Provision for credit losses
—
(200
)
(100.0
)%
—
—
%
Net interest income after provision for
credit losses
14,913
14,414
3.5
%
12,659
17.8
%
Noninterest income:
Fees on loans
43
54
(20.4
)%
35
22.9
%
Service charges on deposit accounts
285
301
(5.3
)%
296
(3.7
)%
BOLI income
71
70
1.4
%
385
(81.6
)%
Gain (loss) from minority membership
interest
(49
)
278
(117.6
)%
321
(115.3
)%
Loss on sale of available-for-sale
investment securities
9
—
100.0
%
(10,985
)
(100.1
)%
Other fee income
93
112
(17.0
)%
89
4.5
%
Total noninterest income
452
815
(44.5
)%
(9,859
)
(104.6
)%
Noninterest expense:
Salaries and employee benefits
4,679
4,853
(3.6
)%
5,269
(11.2
)%
Occupancy expense
525
465
12.9
%
572
(8.2
)%
Internet banking and software expense
860
706
21.8
%
701
22.7
%
Data processing and network
administration
690
727
(5.1
)%
634
8.8
%
State franchise taxes
589
589
—
%
584
0.9
%
Professional fees
233
224
4.0
%
213
9.4
%
Office space reduction costs
—
—
—
%
273
(100.0
)%
Other operating expense
1,426
1,632
(12.6
)%
1,156
23.4
%
Total noninterest expense
9,002
9,196
(2.1
)%
9,402
(4.3
)%
Net income before income taxes
6,363
6,033
5.5
%
(6,602
)
(196.4
)%
Income tax expense
1,463
1,364
7.3
%
(1,531
)
(195.6
)%
Net Income
$
4,900
$
4,669
4.9
%
$
(5,071
)
(196.6
)%
Earnings per share - basic
$
0.27
$
0.26
3.8
%
$
(0.28
)
(196.4
)%
Earnings per share - diluted
$
0.26
$
0.25
4.0
%
$
(0.28
)
(192.9
)%
Weighted-average common shares outstanding
- basic
18,204,455
18,195,102
0.1
%
17,802,810
2.3
%
Weighted-average common shares outstanding
- diluted
18,493,616
18,433,125
0.3
%
18,295,894
1.1
%
Reconciliation of
Net Income (GAAP) to Commercial Bank Operating Earnings
(Non-GAAP):
GAAP net income (loss) reported above
$
4,900
$
4,669
$
(5,071
)
(Gain) loss on sale of available-for-sale
investment securities
(9
)
—
10,985
Office space reduction and severance
costs
—
—
336
Income tax benefit associated with
non-GAAP adjustments
—
—
(2,490
)
Adjusted Net Income, core bank operating
earnings (non-GAAP)
$
4,891
$
4,669
$
3,760
Adjusted Earnings per share - basic
(non-GAAP core bank operating earnings)
$
0.27
$
0.26
$
0.21
Adjusted Earnings per share - diluted
(non-GAAP core bank operating earnings)
$
0.26
$
0.25
$
0.21
Adjusted Return on average assets
(non-GAAP core bank operating earnings)
0.90
%
0.85
%
0.68
%
Adjusted Return on average equity
(non-GAAP core bank operating earnings)
8.36
%
8.15
%
7.06
%
Adjusted Efficiency ratio (non-GAAP core
bank operating earnings)
58.62
%
61.19
%
65.77
%
Reconciliation of
Net Income (GAAP) to Pre-Tax Pre-Provision Income
(Non-GAAP):
GAAP net income (loss) reported above
$
4,900
$
4,669
$
(5,071
)
Provision for credit losses
—
(200
)
—
(Gain) loss on sale of investment
securities
(9
)
—
10,985
Office space reduction and severance
costs
—
—
336
Non-recurring valuation adjustment of
minority investment
—
—
—
Income tax expense (benefit)
1,463
1,364
(1,531
)
Adjusted Pre-tax pre-provision income
$
6,354
$
5,833
$
4,719
Adjusted Earnings per share - basic
(non-GAAP pre-tax pre-provision)
$
0.35
$
0.32
$
0.27
Adjusted Earnings per share - diluted
(non-GAAP pre-tax pre-provision)
$
0.34
$
0.32
$
0.26
Adjusted Return on average assets
(non-GAAP pre-tax pre-provision)
1.16
%
1.07
%
0.85
%
Adjusted Return on average equity
(non-GAAP pre-tax pre-provision)
10.85
%
10.18
%
8.85
%
FVCBankcorp, Inc.
Summary Consolidated
Statements of Income
(Dollars in thousands, except
per share data)
(Unaudited)
For the Year Ended
December 31, 2024
December 31, 2023
% Change
Net interest income
$
55,589
$
54,396
2.2
%
Provision for credit losses
6
132
(95.5
)%
Net interest income after provision for
credit losses
55,583
54,264
2.4
%
Noninterest income:
Fees on loans
185
388
(52.3
)%
Service charges on deposit accounts
1,126
1,028
9.5
%
BOLI income
397
1,452
(72.7
)%
Income (loss) from minority membership
interest
376
(1,110
)
(133.9
)%
Gain (loss) on sale of available-for-sale
investment securities
9
(15,577
)
(100.1
)%
Other fee income
441
449
(1.8
)%
Total noninterest income (loss)
2,534
(13,370
)
(119.0
)%
Noninterest expense:
Salaries and employee benefits
18,752
20,643
(9.2
)%
Occupancy expense
2,027
2,357
(14.0
)%
Internet banking and software expense
2,990
2,505
19.4
%
Data processing and network
administration
2,719
2,468
10.2
%
State franchise taxes
2,358
2,338
0.9
%
Professional fees
927
858
8.0
%
Office space reduction costs
—
273
—
%
Other operating expense
6,047
5,220
15.8
%
Total noninterest expense
35,820
36,662
(2.3
)%
Net income before income taxes
22,297
4,232
426.9
%
Income tax expense
7,233
410
1664.1
%
Net Income
$
15,064
$
3,822
294.1
%
Earnings per share - basic
$
0.83
$
0.22
284.9
%
Earnings per share - diluted
$
0.82
$
0.21
291.1
%
Weighted-average common shares outstanding
- basic
18,057,202
17,722,778
1.9
%
Weighted-average common shares outstanding
- diluted
18,396,533
18,231,346
0.9
%
Reconciliation of
Net Income (GAAP) to Commercial Bank Operating Earnings
(Non-GAAP):
GAAP net income reported above
$
15,064
$
3,822
(Gain) loss on sale of available-for-sale
investment securities
(9
)
15,577
Office space reduction and severance
costs
—
457
Non-recurring tax and 10% modified
endowment contract penalty on early surrender of BOLI policies
2,386
—
Income tax benefit associated with
non-GAAP adjustments
—
(3,527
)
Adjusted Net Income, core bank operating
earnings (non-GAAP)
$
17,441
$
16,329
Adjusted Earnings per share - basic
(non-GAAP core bank operating earnings)
$
0.97
$
0.92
Adjusted Earnings per share - diluted
(non-GAAP core bank operating earnings)
$
0.95
$
0.90
Adjusted Return on average assets
(non-GAAP core bank operating earnings)
0.80
%
0.72
%
Adjusted Return on average equity
(non-GAAP core bank operating earnings)
7.69
%
7.78
%
Adjusted Efficiency ratio (non-GAAP core
bank operating earnings)
61.63
%
63.97
%
Reconciliation of
Net Income (GAAP) to Pre-Tax Pre-Provision Income
(Non-GAAP):
GAAP net income reported above
$
15,064
$
3,822
Provision for credit losses
6
132
(Gain) loss on sale of investment
securities
(9
)
15,577
Office space reduction and severance
costs
—
457
Non-recurring tax and 10% modified
endowment contract penalty on early surrender of BOLI policies
2,386
—
Income tax expense
4,847
410
Adjusted Pre-tax pre-provision income
$
22,294
$
20,398
Adjusted Earnings per share - basic
(non-GAAP pre-tax pre-provision)
$
1.23
$
1.15
Adjusted Earnings per share - diluted
(non-GAAP pre-tax pre-provision)
$
1.21
$
1.12
Adjusted Return on average assets
(non-GAAP pre-tax pre-provision)
1.02
%
0.90
%
Adjusted Return on average equity
(non-GAAP pre-tax pre-provision)
9.83
%
9.72
%
FVCBankcorp, Inc.
Average Statements of
Condition and Yields on Earning Assets and Interest-Bearing
Liabilities
(Dollars in thousands)
(Unaudited)
For the Three Months
Ended
12/31/2024
9/30/2024
12/31/2023
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
$
1,050,985
$
13,792
5.25
%
$
1,075,258
$
13,969
5.20
%
$
1,089,549
$
13,549
4.97
%
Commercial and industrial
300,781
6,157
8.19
%
268,484
5,558
8.28
%
206,350
3,916
7.59
%
Commercial construction
176,973
3,200
7.23
%
168,155
3,175
7.55
%
154,049
2,684
6.97
%
Consumer real estate
327,164
4,012
4.91
%
334,385
4,047
4.84
%
365,582
4,391
4.80
%
Warehouse facilities
13,010
224
6.89
%
26,043
489
7.51
%
3,903
78
8.00
%
Consumer nonresidential
6,415
131
8.17
%
6,827
143
8.38
%
6,039
130
8.62
%
Total loans
1,875,328
27,516
5.87
%
1,879,152
27,381
5.83
%
1,825,472
24,748
5.42
%
Investment securities (2)
202,060
1,046
2.07
%
205,019
1,050
2.05
%
252,958
1,285
2.03
%
Interest-bearing deposits at other
financial institutions
62,117
719
4.60
%
57,984
802
5.50
%
45,025
619
5.45
%
Total interest-earning assets
2,139,505
$
29,281
5.47
%
2,142,155
$
29,233
5.46
%
2,123,455
$
26,652
5.02
%
Non-interest earning assets:
Cash and due from banks
8,938
7,443
6,195
Premises and equipment, net
875
892
1,041
Accrued interest and other assets
55,380
56,312
98,509
Allowance for credit losses
(18,819
)
(19,219
)
(18,834
)
Total Assets
$
2,185,879
$
2,187,583
$
2,210,366
Interest-bearing liabilities:
Interest checking
$
615,456
$
5,310
3.43
%
$
620,256
$
5,652
3.62
%
$
631,775
$
5,308
3.33
%
Savings and money market
378,847
3,313
3.48
%
362,663
3,482
3.82
%
310,199
1,715
2.82
%
Time deposits
249,650
2,740
4.37
%
264,125
2,929
4.41
%
272,784
3,579
4.15
%
Wholesale deposits
249,870
2,209
3.52
%
249,851
2,136
3.40
%
218,176
2,151
3.91
%
Total interest-bearing deposits
1,493,823
13,572
3.61
%
1,496,895
14,199
3.77
%
1,432,934
12,753
3.53
%
Other borrowed funds
55,429
542
3.88
%
57,000
563
3.93
%
112,935
982
3.45
%
Subordinated notes, net of issuance
costs
19,531
254
5.18
%
19,656
257
5.21
%
19,611
257
5.21
%
Total interest-bearing liabilities
1,568,783
$
14,368
3.64
%
1,573,551
$
15,019
3.80
%
1,565,480
$
13,992
3.55
%
Noninterest-bearing
liabilities:
Noninterest-bearing deposits
357,579
358,618
403,892
Other liabilities
25,362
26,252
27,804
Shareholders’ equity
234,155
229,162
213,190
Total Liabilities and Shareholders'
Equity
$
2,185,879
$
2,187,583
$
2,210,366
Net Interest Margin
$
14,913
2.77
%
$
14,214
2.64
%
$
12,660
2.37
%
(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 Years Ended
2024
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
$
1,076,027
$
55,116
5.12
%
$
1,103,325
$
53,356
4.84
%
Commercial and industrial
262,844
21,099
8.03
%
206,432
15,170
7.35
%
Commercial construction
165,134
12,044
7.29
%
154,658
10,917
7.06
%
Consumer real estate
341,843
16,616
4.86
%
358,740
17,039
4.75
%
Warehouse facilities
17,408
1,284
7.38
%
19,097
1,343
7.03
%
Consumer nonresidential
6,214
509
8.19
%
6,056
548
9.05
%
Total loans
1,869,470
106,668
5.71
%
1,848,308
98,373
5.32
%
Investment securities (2)
208,406
4,351
2.09
%
287,454
5,606
1.95
%
Interest-bearing deposits at other
financial institutions
44,360
2,294
5.17
%
50,705
2,641
5.21
%
Total interest-earning assets
2,122,236
$
113,313
5.34
%
2,186,467
$
106,620
4.88
%
Non-interest earning assets:
Cash and due from banks
7,474
6,168
Premises and equipment, net
930
1,121
Accrued interest and other assets
64,310
97,440
Allowance for credit losses
(18,963
)
(18,602
)
Total Assets
$
2,175,987
$
2,272,594
Interest-bearing liabilities:
Interest checking
$
571,432
$
19,526
3.42
%
$
581,655
$
16,903
2.91
%
Savings and money market
344,272
12,384
3.60
%
254,721
6,102
2.40
%
Time deposits
275,288
11,979
4.35
%
349,270
12,791
3.66
%
Wholesale deposits
263,664
9,317
3.53
%
303,472
11,549
3.81
%
Total interest-bearing deposits
1,454,656
53,206
3.66
%
1,489,118
47,345
3.18
%
Other borrowed funds
79,874
3,492
4.37
%
102,050
3,844
3.77
%
Subordinated notes, net of issuance
costs
19,613
1,026
5.23
%
19,590
1,030
5.26
%
Total interest-bearing liabilities
1,554,143
$
57,724
3.71
%
1,610,758
$
52,219
3.24
%
Noninterest-bearing
liabilities:
Noninterest-bearing deposits
368,591
425,914
Other liabilities
26,408
26,013
Shareholders’ equity
226,845
209,909
Total Liabilities and Shareholders'
Equity
$
2,175,987
$
2,272,594
Net Interest Margin
$
55,589
2.62
%
$
54,401
2.49
%
(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/20250123773392/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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FVCBankcorp (NASDAQ:FVCB)
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