FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported
its financial results for the second quarter of 2024.
Second Quarter Selected Financial Highlights
- Increase in Net Income. For the three months ended June
30, 2024, the Company recorded net income of $4.2 million, or $0.23
diluted earnings per share. Compared to the linked quarter, net
income increased $2.8 million, from $1.3 million for the three
months ended March 31, 2024.
- Increase in Net Interest Income and Margin. Net interest
margin increased 12 basis points, or 5%, to 2.59% for the second
quarter of 2024, compared to 2.47% for the first quarter of 2024.
Net interest income increased $877 thousand to $13.7 million, or
7%, compared to $12.8 million for the first quarter of 2024.
Interest income increased $1.1 million, or 4%, quarter-over-quarter
while interest expense only increased $266 thousand, or 2%, for the
same period.
- Strong Deposit Growth. Core deposits, which exclude
wholesale deposits, increased $121.5 million during the quarter
ended June 30, 2024, or 8%. Total deposits increased $111.5
million, or 6%, during the second quarter of 2024, to end at $1.97
billion at June 30, 2024, compared to $1.86 billion at March 31,
2024.
- Solid Credit Quality. Loans past due 30 days or more
decreased to $2.5 million at June 30, 2024, compared to $3.9
million at March 31, 2024, a decrease of 35%. The Company recorded
net recoveries of $5 thousand during the second 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 14.13% at
June 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 9.56% at June 30, 2024, from 8.70% at June
30, 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 each of the three months ended June 30, 2024 and 2023, the
Company recorded net income of $4.2 million, or $0.23 diluted
earnings per share. Compared to the linked quarter, net income
increased $2.8 million for the three months ended June 30, 2024,
from $1.3 million for the three months ended March 31, 2024. For
the six months ended June 30, 2024, the Company reported net income
of $5.5 million, or $0.30 diluted earnings per share, compared to
net income of $4.9 million, or $0.27 diluted earnings per share for
the six months ended June 30, 2023.
Commercial bank operating earnings (non-GAAP), which exclude the
nonrecurring taxes on the surrender of the Company’s BOLI policies
recorded during the first quarter of 2024, for the three months
ended June 30, 2024 and March 31, 2024 were $4.2 million and $3.7
million, respectively, an increase of $429 thousand, or 12%.
Diluted commercial bank operating earnings per share (non-GAAP) for
the three months ended June 30, 2024 and March 31, 2024 were $0.23
and $0.20, respectively.
For the three months ended June 30, 2024 and March 31, 2024,
pre-tax pre-provision operating income (non-GAAP), which also
excludes the nonrecurring taxes on the BOLI surrender was $5.5
million and $4.6 million, respectively, an increase of $984
thousand, or 22%.
The Company considers commercial bank operating earnings and
pre-tax pre-provision operating income useful comparative financial
measures of the Company’s operating performance over multiple
periods. Both commercial bank operating earnings and pre-tax
pre-provision operating income 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:
“Two consecutive quarters of margin and net interest income
improvement demonstrates that our disciplined approach to loan and
deposit pricing is effective. We continue to acquire new customer
relationships which supports our focus to further diversify both
our loan and deposit portfolios. As a result of our efforts this
quarter, we originated over $41 million in new loans and $176
million in new non-maturity deposit accounts. These achievements
are a result of the dedication of our bankers who are committed to
provide the best service to our clients each day. Lastly, we are
pleased that our partners at Atlantic Coast Mortgage (“ACM”) have
recorded net income for the second quarter and year-to-date in this
challenging mortgage environment.”
Statement of Condition
Total assets were $2.30 billion at June 30, 2024 and $2.19
billion at December 31, 2023, an increase of $108.6 million, or 5%.
Compared to June 30, 2023, total assets decreased $45.2 million
from $2.34 billion, year-over-year.
Loans receivable, net of deferred fees, were $1.89 billion at
June 30, 2024, $1.83 billion at December 31, 2023, and $1.90
billion at June 30, 2023. For the three months ended June 30, 2024,
loans receivable, net of fees, increased $34.2 million, or 2%, of
which $19.6 million of this increase is related to the warehouse
line held by ACM. Excluding the warehouse line, loans increased
$14.6 million for the quarter ended June 30, 2024. During the
second quarter of 2024, loan originations totaled $41.1 million
with a weighted average rate of 8.38% and loan renewals totaled
$15.4 million with a weighted average rate of 8.95%. Loans that
paid off during the second quarter of 2024 totaled $42.5 million
and had a weighted average rate of 6.39%.
Investment securities were $162.4 million at June 30, 2024,
$171.9 million at December 31, 2023, and $231.5 million at June 30,
2023. The decrease in investment securities during the quarter
ended June 30, 2024 was primarily a result of $4.6 million in
principal repayments and maturities. For the six months ended June
30, 2024, the investment securities portfolio decreased $9.4
million, primarily due to principal paydowns and an increase in the
portfolio’s unrealized losses totaling $2.0 million.
Total deposits were $1.97 billion at June 30, 2024, $1.85
billion at December 31, 2023, and $2.09 billion at June 30, 2023.
Compared to March 31, 2024, total deposits increased $111.5
million, or 6%. Noninterest-bearing deposits were $373.8 million at
June 30, 2024, or 19.0% of total deposits, and decreased $20.3
million during the second quarter of 2024, as customers continue to
shift to interest-bearing deposit products. At June 30, 2024, core
deposits, which exclude wholesale deposits, increased $121.5
million, or 8%. As a member of the IntraFi Network, the Bank offers
products to its customers who seek to maximize FDIC insurance
protection (“reciprocal deposits”). At June 30, 2024 and December
31, 2023, reciprocal deposits totaled $255.4 million and $254.1
million, respectively, and are considered part of the Company’s
core deposit base.
The Company continues to have consistent core deposit inflows
each quarter, including the second quarter of 2024, with new
non-maturity deposit accounts totaling $176.0 million (which
includes $18.4 million in new noninterest-bearing deposits)
compared to $112.6 million (which includes $21.0 million in
noninterest-bearing deposits) for the first quarter of 2024. Title
and escrow-related deposits increased $51.8 million from March 31,
2024 to June 30, 2024, which was attributable to improved title and
escrow related activity during the second quarter of 2024. The
Company continues to see growth in its new and existing deposit
relationships going into the third quarter of 2024.
Total wholesale funding decreased $10.0 million, or 3%, during
the second quarter of 2024. Wholesale funding includes wholesale
deposits totaling $249.8 million and other borrowed funds totaling
$57.0 million at June 30, 2024. Average wholesale funding totaled
$349.6 million for the quarter ended June 30, 2024 and had a
weighted average rate of 3.70%, compared to $413.2 million with a
weighted average rate of 4.01% for the quarter ended March 31,
2024. The Bank used higher-cost short-term wholesale funding
sources during the second quarter of 2024 to supplement
intra-quarter deposit activity. At June 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%).
Shareholders’ equity at June 30, 2024 was $226.5 million, an
increase of $9.4 million, or 4%, from December 31, 2023.
Year-to-date 2024 earnings contributed $5.5 million to the increase
in shareholders’ equity. Common stock issued for stock options
exercised contributed $1.9 million to shareholders’ equity for the
2024 year-to-date period. Accumulated other comprehensive loss
decreased $2.0 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 interest rate swaps at
June 30, 2024.
Book value per share at June 30, 2024 and December 31, 2023 was
$12.45 and $12.19, respectively. Tangible book value per share (a
non-GAAP financial measure which is defined in the tables below) at
June 30, 2024 and December 31, 2023 was $12.04 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 June 30, 2024 and December 31,
2023 was $13.26 and $13.12, respectively.
The Bank was well-capitalized at June 30, 2024, with total
risk-based capital ratio of 14.13%, common equity tier 1 risk-based
capital ratio of 13.09%, and tier 1 leverage ratio of 11.31%.
Asset Quality
For each of the three and six months ended June 30, 2024, the
Company recorded a provision for credit losses totaling $206
thousand, compared to provisions of $618 thousand and $860 thousand
for the three and six months ended June 30, 2023, respectively. The
allowance for credit losses (“ACL”) to total loans, net of fees,
was 1.02% at June 30, 2024, compared to 1.03% at December 31,
2023.
The Company has maintained disciplined credit guidelines during
the rising interest rate environment. The Company proactively
monitors the impact of rising interest rates on its adjustable
loans as the industry navigates through this economic cycle of
increased inflation and higher interest rates. Nonaccrual loans and
loans 90 days or more past due at June 30, 2024 totaled $3.0
million, or 0.13% of total assets, compared to $1.8 million, or
0.08% of total assets, at December 31, 2023. The increase in
nonperforming loans at June 30, 2024 is primarily a result of one
commercial & industrial loan relationship that was placed on
nonaccrual during the first quarter of 2024. The Company had no
other real estate owned at June 30, 2024.
The Company recorded net recoveries of $5 thousand and $35
thousand for the three and six months ended June 30, 2024,
respectively. At June 30, 2024 and December 31, 2023, the ACL was
$19.2 million and $18.9 million, respectively. ACL coverage to
nonperforming loans decreased to 603% at June 30, 2024, compared to
1032% at December 31, 2023 as a result of the $1.2 million increase
in nonperforming loans during 2024.
At June 30, 2024, commercial real estate loans totaled $1.08
billion, or 57% of total loans, net of fees, and construction loans
totaled $165 million, or 9% of total loans, net of fees. Included
in commercial real estate loans are loans secured by office
buildings totaling $136.4 million, or 7% of total loans, which are
located in the Virginia and Maryland suburbs of the Company’s
market area. Retail shopping centers totaled $260.8 million, or 14%
of total loans, at June 30, 2024. Multi-family housing totaled
$178.2 million, or 9% of total loans, at June 30, 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 June 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
69%
6
$
7,476
46%
4
$
3,717
Counties of Fairfax and Loudoun,
Virginia and Montgomery County, Maryland
—
$
—
$
11,193
Office, Class B
45%
34
12,143
45%
29
57,324
—
—
69,467
Office, Class C
53%
8
5,138
39%
8
1,902
1
873
7,913
Office, Medical
39%
7
1,155
47%
7
41,514
1
5,129
47,798
Subtotal
55
$
25,912
48
$
104,457
2
$
6,002
$
136,371
7%
Retail- Neighborhood/Community Shop
—
$
—
44%
30
$
81,612
Prince George's County, Maryland,
Fairfax County, Virginia and Washington, D.C.
2
$
11,376
$
92,988
Retail- Restaurant
57%
9
8,088
44%
16
26,456
—
—
34,544
Retail- Single Tenant
58%
5
1,963
41%
20
35,691
—
—
37,654
Retail- Anchored,Other
—%
0
—
52%
13
42,957
—
—
42,957
Retail- Grocery-anchored
—
—
46%
8
51,455
1
1,247
52,702
Subtotal
14
$
10,051
87
$
238,171
3
$
12,623
$
260,845
14%
Multi-family, Class A (Market)
—
$
—
—%
1
$
—
Washington, D.C., Baltimore City,
Maryland and Arlington County, Virginia
1
$
1,026
$
1,026
Multi-family, Class B (Market)
—
—
62%
21
78,360
—
—
78,360
Multi-family, Class C (Market)
—
—
55%
58
71,355
2
7,047
78,402
Multi-Family-Affordable Housing
—
—
52%
10
16,360
1
4,034
20,394
Subtotal
—
$
—
90
$
166,075
4
$
12,107
$
178,182
9%
Industrial
51%
41
$
67,883
47%
38
$
125,223
Prince William County, Virginia,
Fairfax County, Virginia and Howard County, Maryland
1
$
1,041
$
194,147
Warehouse
51%
14
18,451
27%
8
9,399
—
—
27,850
Flex
50%
15
18,436
54%
14
56,226
2
—
74,662
Subtotal
70
$
104,770
60
$
190,848
3
$
1,041
$
296,659
16%
Hotels
—
$
—
43%
9
$
51,873
1
$
6,481
$
58,354
3%
Mixed Use
45%
10
$
5,945
60%
36
$
66,146
—
$
—
$
72,091
4%
Land
$
—
$
—
26
$
53,660
$
53,660
3%
1-4 Family construction
$
—
$
—
22
$
49,265
$
49,265
3%
Other (including net deferred fees)
$
57,844
$
61,389
$
23,556
$
142,789
8%
Total commercial real estate and
construction loans, net of fees, at June 30, 2024
$
204,522
$
878,959
$
164,735
$
1,248,216
65%
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 only one classified delinquency at June 30,
2024 totaling $851 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
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 June 30, 2024 and 2023, the
Company reported income of $351 thousand and $20 thousand,
respectively, an increase of $331 thousand. For the six months
ended June 30, 2024 and 2023, the Company recorded income of $148
thousand compared to a loss of $781 thousand, respectively, related
to its investment in ACM. ACM management is continuing to evaluate
opportunities to further reduce expenses and increase revenues.
Income Statement
The Company recorded net income of $4.2 million for both of the
three months ended June 30, 2024 and June 30, 2023.
Net interest income increased $879 thousand, or 7%, to $13.7
million for the quarter ended June 30, 2024, compared to the first
quarter of 2024, and decreased $717 thousand, or 5%, compared to
the year ago quarter. Compared to the year ago quarter ended June
30, 2023, the decrease in net interest income for the second
quarter of 2024 is primarily due to an increase in funding costs,
which have increased precipitously as a result of Federal Reserve
monetary policy coupled with the need to meet intense competition
from market area banks, brokerages and the U.S. Treasury.
The Company's net interest margin increased 12 basis points to
2.59% for the quarter ended June 30, 2024 compared to 2.47% for the
linked quarter ended March 31, 2024 and decreased only 1 basis
point from 2.60% for the year ago quarter ended June 30, 2023. 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.
On a linked quarter basis, interest income increased $1.1
million, or 4%, for the second quarter of 2024 compared to the
quarter ended March 31, 2024. Total interest income increased $767
thousand, or 3%, for the second quarter of 2024 compared to the
same quarter of 2023. The year ago quarter included recovered loan
interest of $338 thousand from an impaired loan that was fully
recovered. Interest income on loans increased $1.5 million, or 6%,
for the three months ended June 30, 2024, compared to the same
period of 2023. Compared to the linked quarter, interest income on
loans increased $1.1 million, or 5%, for the three months ended
June 30, 2024, primarily as a result of an increase in average
loans and an increase in loan yields. Loan yields increased 12
basis points to 5.62% for the three months ended June 30, 2024
compared to the three months ended March 31, 2024, and increased 27
basis points compared to the year ago quarter. Yield on earning
assets increased 38 basis points to 5.27% for the three months
ended June 30, 2024 compared to 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 June 30, 2024, approximately $404 million, or 27%, of the
Company’s commercial loan portfolio is expected to reprice in the
next 12 months, which is comprised of the following: $94.6 million
in fixed rate commercial loans, and $28.5 million in variable rate
commercial loans, with an additional $281.1 million in floating
rate loans priced currently at market rates. Within the following
24-36 months, $202.9 million in fixed rate commercial loans will
reprice and an additional $85.6 million in variable rate commercial
loans will reprice, representing 19% 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 $266
thousand, or 2%, for the second quarter of 2024 compared to the
quarter ended March 31, 2024. Total interest expense for the three
months ended June 30, 2024 was $14.3 million compared to $12.8
million for the year ago quarter ended June 30, 2023, an increase
of $1.5 million, or 12%. Interest expense on deposits increased
$353 thousand for the three months ended June 30, 2024 compared to
the three months ended March 31, 2024, reflecting the increase in
volume of deposits during the second quarter of 2024 in addition to
the Company’s continued focus on maintaining core deposit pricing.
Compared to the year ago quarter ended June 30, 2023, interest
expense on deposits increased $882 thousand for the three months
ended June 30, 2024. The cost of deposits for the second quarter of
2024 was 2.88% compared to 2.82% for the first quarter of 2024, an
increase of 6 basis points compared to an increase of 47 basis
points from 2.41% for the year-ago second quarter.
The Company’s cumulative deposit beta (calculated comparing the
change in deposit interest rates from March 31, 2022 to June 30,
2024 including noninterest-bearing deposits and excluding wholesale
deposits) remained at approximately 42% for each of June 30, 2024,
March 31, 2024, and December 31, 2023, since the Federal Reserve
began increasing short-term interest rates.
Net interest income for the six months ended June 30, 2024 and
2023 was $26.5 million and $28.4 million, respectively, a decrease
of $1.9 million, or 7%, year-over-year. Interest income increased
$2.3 million, or 4%, to $54.8 million for the six months ended June
30, 2024 as compared to $52.5 million for the comparable 2023
period. Interest expense totaled $28.3 million for the six months
ended June 30, 2024, an increase of $4.2 million, compared to $24.1
million for the six months ended June 30, 2023. The Company’s net
interest margin for the six months ended June 30, 2024 was 2.59%
compared to 2.60% for the year-ago six month period of 2023.
Noninterest income for the three months ended June 30, 2024
totaled $871 thousand compared $891 thousand for the three months
ended June 30, 2023 and $395 thousand for the three months ended
March 31, 2024.
Fee income from loans was $38 thousand for the quarter ended
June 30, 2024, compared to $169 thousand for the second quarter of
2023, which included income from back-to-back loan swap
transactions entered into during the second quarter of 2023.
Service charges on deposit accounts totaled $279 thousand for the
second quarter of 2024, compared to $232 thousand for the year ago
quarter, and $261 thousand for the three months ended March 31,
2024. Income from bank-owned life insurance decreased $296 thousand
to $66 thousand for the three months ended June 30, 2024, compared
to $362 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 $351 thousand for the three months ended
June 30, 2024, compared to income of $20 thousand for the same
period of 2023, and compared to a loss of $203 thousand for the
linked quarter ended March 31, 2024.
For the year-to-date period ended June 30, 2024, the Company
recorded noninterest income totaling $1.3 million, compared to a
loss of $3.7 million for the six months ended June 30, 2023, which
was primarily associated with its securities sales transaction
executed during the first quarter of 2023.
Noninterest expense totaled $9.0 million for the quarter ended
June 30, 2024, a decrease of $207 thousand, or 2%, compared to $9.2
million for the year ago quarter ended June 30, 2023. On a linked
quarter basis, noninterest expense increased $371 thousand, or 4%,
from $8.6 million for the three months ended March 31, 2024.
The decrease for the second quarter of 2024 was primarily
related to salaries and benefits expense which decreased $402
thousand when compared to the year ago quarter. Salary expense was
the main driver for these decreases, a result of reduced staffing
and process improvement through the use of technology. On a linked
quarter basis, salaries and benefits expense increased $159
thousand, or 4%, for the three months ended June 30, 2024,
primarily as a result of an increase to the incentive accruals for
the quarter. Full-time equivalent employees have decreased from 129
at June 30, 2023, and from 118 at December 31, 2023 to 113 at June
30, 2024.
Occupancy expense decreased $95 thousand to $515 thousand for
the three months ended June 30, 2024 compared to the year ago
quarter ended June 30, 2023, primarily as a result of the office
space reduction efforts completed during 2023. Internet banking and
software expense increased $147 thousand to $730 thousand for the
second quarter of 2024 compared to the quarter ended June 30, 2023,
primarily as a result of the implementation of enhanced customer
software solutions. Other operating expenses totaled $1.6 million
for second quarter of 2024 compared to $1.5 million for the year
ago quarter ended June 30, 2023. The Company continues to identify
and assess opportunities to reduce operating expenses.
For the six months ended June 30, 2024 and 2023, noninterest
expense was $17.6 million and $18.2 million, respectively, a
decrease of $592 thousand, or 3%, primarily as a result of the
aforementioned decreases in salaries and benefits expenses and
occupancy expense.
The efficiency ratio for core bank operating earnings, excluding
2023 losses on the sale of available-for-sale investment
securities, for the quarters ended June 30, 2024, March 31, 2024,
and June 30, 2023, was 61.9%, 65.4%, and 60.2%, respectively. For
the six months ended June 30, 2024 and 2023, the efficiency ratio
for core bank operating earnings was 63.6% and 62.3%, 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 $1.2
million for each of the three months ended June 30, 2024 and June
30, 2023. For the six months ended June 30, 2024 and 2023,
provision for income taxes was $4.4 million and $739 thousand,
respectively. The year-to-date 2024 period includes an additional
$2.4 million which is associated with the Company’s surrendering of
its BOLI policies that occurred 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 $2.30 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 Six Months
Ended,
At or For the Three months
ended,
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
March 31, 2024
December 31, 2023
Selected Balances
Total assets
$
2,299,194
$
2,344,372
$
2,182,662
$
2,190,558
Total investment securities
162,429
231,468
167,061
171,859
Total loans, net of deferred fees
1,886,929
1,903,814
1,852,746
1,828,564
Allowance for credit losses on loans
(19,208
)
(19,442
)
(18,918
)
(18,871
)
Total deposits
1,968,750
2,088,042
1,857,265
1,845,292
Subordinated debt
19,652
19,592
19,633
19,620
Other borrowings
57,000
—
57,000
85,000
Reserve for unfunded commitments
506
801
586
602
Total stockholders’ equity
226,491
211,051
220,661
217,117
Summary Results of Operations
Interest income
$
27,972
$
27,203
$
54,799
$
52,537
$
26,827
$
26,651
Interest expense
14,301
12,815
28,336
24,135
14,035
13,992
Net interest income
13,670
14,388
26,462
28,402
12,792
12,659
Provision for credit losses(5)
206
618
206
860
—
—
Net interest income after provision for
credit losses
13,464
13,770
26,256
27,542
12,792
12,659
Noninterest income - loan fees, service
charges and other
454
509
862
943
408
420
Noninterest income - bank owned life
66
362
256
694
190
385
Noninterest income (loss) on minority
membership interest
351
20
148
(781
)
(203
)
321
Noninterest loss on sale of
available-for-sale investment securities
—
—
—
(4,592
)
—
(10,985
)
Noninterest expense
8,996
9,203
17,621
18,213
8,625
9,402
Income (Loss) before taxes
5,340
5,457
9,902
5,593
4,562
(6,602
)
Income tax expense (benefit)
1,185
1,225
4,407
739
3,222
(1,531
)
Net income (loss)
4,155
4,232
5,495
4,854
1,340
(5,071
)
Per Share Data
Net income (loss), basic
$
0.23
$
0.24
$
0.31
$
0.28
$
0.08
$
(0.28
)
Net income (loss), diluted
$
0.23
$
0.23
$
0.30
$
0.27
$
0.07
$
(0.28
)
Book value
$
12.45
$
11.87
$
12.32
$
12.19
Tangible book value(1)
$
12.04
$
11.44
$
11.90
$
11.77
Tangible book value, excluding accumulated
other comprehensive losses(1)
$
13.26
$
13.17
$
13.16
$
13.12
Shares outstanding
18,186,147
17,783,305
17,904,445
17,806,995
Selected Ratios
Net interest margin(2)
2.59
%
2.60
%
2.53
%
2.60
%
2.47
%
2.37
%
Return on average assets(2)
0.77
%
0.73
%
0.51
%
0.42
%
0.25
%
(0.92
)%
Return on average equity(2)
7.42
%
8.17
%
4.95
%
73.84
%
4.70
%
2.44
%
(9.51
)%
Efficiency(3)
61.86
%
60.23
%
63.54
%
73.84
%
65.41
%
NM
Loans, net of deferred fees to total
deposits
95.84
%
91.18
%
99.76
%
99.09
%
Noninterest-bearing deposits to total
18.99
%
20.93
%
21.22
%
21.50
%
Reconciliation of Net Income (GAAP) to
Commercial Bank Operating Earnings (Non-GAAP)(4)
GAAP net income (loss) reported above
$
4,155
$
4,232
$
5,495
$
4,854
$
1,340
$
(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
—
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)
$
4,155
$
4,232
$
7,881
$
—
$
8,436
$
3,726
$
2,778
Adjusted Earnings per share - basic
(non-GAAP core bank operating earnings)
$
0.23
$
0.24
$
0.44
$
0.48
$
0.21
$
0.16
Adjusted Earnings per share - diluted
(non-GAAP core bank operating earnings)
$
0.23
$
0.23
$
0.43
$
0.46
$
0.20
$
0.15
Adjusted Return on average assets
(non-GAAP core bank operating earnings)
0.77
%
0.73
%
0.73
%
0.74
%
0.69
%
0.50
%
Adjusted Return on average equity
(non-GAAP core bank operating earnings)
7.42
%
8.17
%
7.10
%
8.17
%
6.77
%
5.21
%
Adjusted Efficiency ratio (non-GAAP core
bank operating earnings)(3)
61.86
%
60.23
%
63.55
%
62.25
%
65.41
%
65.77
%
Capital Ratios - Bank
Tangible common equity (to tangible
assets)
9.56
%
8.70
%
9.80
%
10.12
%
Total risk-based capital (to risk
weighted
14.13
%
13.28
%
14.05
%
13.83
%
Common equity tier 1 capital (to risk
weighted assets)
13.09
%
12.26
%
13.18
%
12.80
%
Tier 1 leverage (to average assets)
11.31
%
10.41
%
11.18
%
10.77
%
Asset Quality
Nonperforming loans and loans 90+ past
due
$
3,187
$
1,443
$
2,996
$
1,829
Nonperforming loans and loans 90+ past due
to total assets
0.13
%
0.06
%
0.14
%
0.08
%
Nonperforming assets to total assets
0.13
%
0.06
%
0.14
%
0.08
%
Allowance for credit losses to loans
1.02
%
1.02
%
1.02
%
1.03
%
Allowance for credit losses to
nonperforming loans
602.70
%
1347.33
%
631.44
%
1031.77
%
Net (recoveries ) charge-offs
$
(5
)
$
356
$
(35
)
$
333
$
(30
)
$
49
Net charge-offs (recoveries) to average
loans(2)
—
%
0.08
%
—
%
0.04
%
(0.01
)%
0.01
%
Selected Average Balances
Total assets
$
2,170,786
$
2,309,251
$
2,165,125
$
2,288,835
$
2,159,463
$
2,210,366
Total earning assets
2,123,431
2,223,581
2,103,435
2,204,172
2,083,440
2,123,455
Total loans, net of deferred fees
1,882,342
1,867,813
1,861,614
1,849,493
1,840,887
1,825,472
Total deposits
1,798,734
2,002,047
1,792,705
1,894,343
1,786,677
1,836,826
Other Data
Noninterest-bearing deposits
$
373,848
$
436,972
$
394,143
$
396,724
Interest-bearing checking, savings and
money market
1,070,360
872,508
905,321
896,969
Time deposits
274,684
365,242
297,952
306,349
Wholesale deposits
249,860
413,320
259,849
245,250
(1) Non-GAAP Reconciliation
(Dollars in thousands, except per share
data)
Total stockholders’ equity
$
226,491
$
211,051
$
220,661
$
217,117
Less: goodwill and intangibles, net
(7,497
)
(7,682
)
(7,540
)
(7,585
)
Tangible Common Equity
$
218,993
$
203,368
$
213,121
$
209,532
Less: Accumulated Other Comprehensive
Income (Loss) ("AOCI")
(22,152
)
(30,762
)
(22,473
)
(24,160
)
Tangible Common Equity excluding
AOCI
$
241,146
$
234,130
$
235,594
$
233,692
Book value per common share
$
12.45
11.87
$
12.32
$
12.19
Less: intangible book value per common
share
(0.41
)
(0.43
)
(0.42
)
(0.42
)
Tangible book value per common
share
$
12.04
$
11.44
$
11.90
$
11.77
Add: AOCI (loss) per common share
(1.22
)
(1.73
)
(1.26
)
(1.35
)
Tangible book value per common share,
excluding AOCI
$
13.26
$
13.17
$
13.16
$
13.12
(1)
Annualized.
(2)
Efficiency ratio is calculated as
noninterest expense divided by the sum of net interest income and
noninterest income.
(3)
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.
(4)
Provision for credit losses includes
provision for credit losses on loans and provision (recovery) for
unfunded loan commitments.
FVCBankcorp, Inc.
Summary Consolidated
Statements of Condition
(Dollars in thousands)
(Unaudited)
June 30, 2024
March 31, 2024
% Change Current
Quarter
December 31, 2023
June 30, 2023
% Change From Year Ago
Cash and due from banks
$
10,226
$
6,936
47.4
%
$
8,042
$
8,281
23.5
%
Interest-bearing deposits at other
financial institutions
154,359
73,598
109.7
%
52,480
66,723
131.3
%
Investment securities
162,429
167,061
(2.8
)%
171,859
231,468
(29.8
)%
Restricted stock, at cost
8,186
7,717
6.1
%
9,488
4,909
66.8
%
Loans, net of fees:
Commercial real estate
1,083,481
1,089,362
(0.5
)%
1,091,633
1,111,249
(2.5
)%
Commercial and industrial
268,921
241,752
11.2
%
216,367
223,406
20.4
%
Commercial construction
164,735
155,451
6.0
%
147,998
158,713
3.8
%
Consumer real estate
339,146
355,750
(4.7
)%
363,317
365,122
(7.1
)%
Warehouse facilities
24,425
4,812
407.6
%
3,506
39,700
(38.5
)%
Consumer nonresidential
6,220
5,619
10.7
%
5,743
5,624
10.6
%
Total loans, net of fees
1,886,929
1,852,746
1.8
%
1,828,564
1,903,814
(0.9
)%
Allowance for credit losses on loans
(19,208
)
(18,918
)
1.5
%
(18,871
)
(19,442
)
(1.2
)%
Loans, net
1,867,721
1,833,828
1.8
%
1,809,693
1,884,372
(0.9
)%
Premises and equipment, net
915
934
(2.0
)%
997
1,103
(17.0
)%
Goodwill and intangibles, net
7,497
7,540
(0.6
)%
7,585
7,682
(2.4
)%
Bank owned life insurance (BOLI)
9,078
9,011
0.7
%
56,823
56,066
(83.8
)%
Other assets
78,783
76,037
3.6
%
73,591
83,768
(6.0
)%
Total Assets
$
2,299,194
$
2,182,662
5.3
%
$
2,190,558
$
2,344,372
(1.9
)%
Deposits:
Noninterest-bearing
$
373,848
$
394,143
(5.1
)%
$
396,724
$
436,972
(14.4
)%
Interest checking
631,162
506,168
24.7
%
576,471
626,748
0.7
%
Savings and money market
439,198
399,154
10.0
%
320,498
245,760
78.7
%
Time deposits
274,684
297,951
(7.8
)%
306,349
365,242
(24.8
)%
Wholesale deposits
249,860
259,849
(3.8
)%
245,250
413,320
(39.5
)%
Total deposits
1,968,752
1,857,265
6.0
%
1,845,292
2,088,042
(5.7
)%
Other borrowed funds
57,000
57,000
—
%
85,000
—
—
%
Subordinated notes, net of issuance
costs
19,652
19,633
0.1
%
19,620
19,592
0.3
%
Reserve for unfunded commitments
506
586
(13.7
)%
602
801
(36.8
)%
Other liabilities
26,793
27,517
(2.6
)%
22,927
24,886
7.7
%
Stockholders’ equity
226,491
220,661
2.6
%
217,117
211,051
7.3
%
Total Liabilities & Stockholders'
Equity
$
2,299,194
$
2,182,662
5.3
%
$
2,190,558
$
2,344,372
(1.9
)%
FVCBankcorp, Inc.
Summary Consolidated
Statements of Income
(Dollars in thousands, except
per share data)
(Unaudited)
For the Three Months
Ended
June 30, 2024
March 31, 2024
% Change Current
Quarter
June 30, 2023
% Change From Year Ago
Net interest income
$
13,671
$
12,792
6.9
%
$
14,388
(5.0
)%
Provision for credit losses
206
—
—
%
618
(66.7
)%
Net interest income after provision for
credit losses
13,465
12,792
5.3
%
13,770
(2.2
)%
Noninterest income:
Fees on loans
38
49
(22.4
)%
169
(77.5
)%
Service charges on deposit accounts
279
261
6.9
%
232
20.3
%
BOLI income
66
190
(65.3
)%
362
(81.8
)%
Income (Loss) from minority membership
interest
351
(203
)
(272.9
)%
20
1655.0
%
Other fee income
137
98
39.8
%
108
26.9
%
Total noninterest income
871
395
120.5
%
891
(2.2
)%
Noninterest expense:
Salaries and employee benefits
4,690
4,531
3.5
%
5,092
(7.9
)%
Occupancy expense
515
522
(1.3
)%
610
(15.6
)%
Internet banking and software expense
730
694
5.2
%
583
25.2
%
Data processing and network
administration
667
635
5.0
%
611
9.2
%
State franchise taxes
590
589
0.2
%
584
1.0
%
Professional fees
228
243
(6.2
)%
247
(7.7
)%
Other operating expense
1,575
1,411
11.6
%
1,475
6.8
%
Total noninterest expense
8,996
8,625
4.3
%
9,203
(2.2
)%
Net income before income taxes
5,340
4,562
17.1
%
5,457
(2.1
)%
Income tax expense
1,185
3,222
(63.2
)%
1,225
(3.3
)%
Net Income
$
4,155
$
1,340
210.1
%
$
4,232
(1.8
)%
Earnings per share - basic
$
0.23
$
0.08
187.5
%
$
0.24
(3.7
)%
Earnings per share - diluted
$
0.23
$
0.07
228.6
%
$
0.23
(1.9
)%
Weighted-average common shares outstanding
- basic
18,000,491
17,828,759
1.0
%
17,710,535
1.6
%
Weighted-average common shares outstanding
- diluted
18,341,906
18,317,483
0.1
%
18,058,612
1.6
%
Reconciliation of
Net Income (GAAP) to Commercial Bank Operating Earnings
(Non-GAAP):
GAAP net income reported above
$
4,155
$
1,340
$
4,232
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
—
—
—
Adjusted Net Income, core bank operating
earnings (non-GAAP)
$
4,155
$
3,726
$
4,232
Adjusted Earnings per share - basic
(non-GAAP core bank operating earnings)
$
0.23
$
0.21
$
0.24
Adjusted Earnings per share - diluted
(non-GAAP core bank operating earnings)
$
0.23
$
0.20
$
0.23
Adjusted Return on average assets
(non-GAAP core bank operating earnings)
0.77
%
0.69
%
0.73
%
Adjusted Return on average equity
(non-GAAP core bank operating earnings)
7.42
%
6.77
%
8.17
%
Adjusted Efficiency ratio (non-GAAP core
bank operating earnings)
61.86
%
65.40
%
60.23
%
Reconciliation of
Net Income (GAAP) to Pre-Tax Pre-Provision Income
(Non-GAAP):
GAAP net income reported above
$
4,155
$
1,340
$
4,232
Add: Provision for credit losses
206
—
618
Add: Non-recurring tax and 10% modified
endowment contract penalty on early surrender of BOLI policies
—
2,386
—
(Subtract) Add: Income tax (benefit)
expense
$
1,185
836
1,225
Adjusted Pre-tax pre-provision income
$
5,546
$
4,562
$
6,075
Adjusted Earnings per share - basic
(non-GAAP pre-tax pre-provision)
$
0.31
$
0.26
$
0.34
Adjusted Earnings per share - diluted
(non-GAAP pre-tax pre-provision)
$
0.30
$
0.25
$
0.34
Adjusted Return on average assets
(non-GAAP pre-tax pre-provision)
1.02
%
0.85
%
1.05
%
Adjusted Return on average equity
(non-GAAP pre-tax pre-provision)
9.91
%
8.29
%
11.72
%
For the Six Months
Ended
June 30, 2024
June 30, 2023
% Change
Net interest income
$
26,462
$
28,402
(6.8
)%
Provision for credit losses
206
860
(76.0
)%
Net interest income after provision for
credit losses
26,256
27,542
(4.7
)%
Noninterest income:
Fees on loans
87
246
(64.6
)%
Service charges on deposit accounts
540
447
20.8
%
BOLI income
256
694
(63.1
)%
Income (Loss) from minority membership
interest
148
(781
)
(119.0
)%
Loss on sale of available-for-sale
investment securities
—
(4,592
)
(100.0
)%
Other fee income
235
250
(6.0
)%
Total noninterest income (loss)
1,266
(3,736
)
(133.9
)%
Noninterest expense:
Salaries and employee benefits
9,221
10,107
(8.8
)%
Occupancy expense
1,037
1,238
(16.2
)%
Internet banking and software expense
1,424
1,144
24.5
%
Data processing and network
administration
1,302
1,233
5.6
%
State franchise taxes
1,179
1,169
0.9
%
Professional fees
471
431
9.3
%
Other operating expense
2,987
2,891
3.3
%
Total noninterest expense
17,621
18,213
(3.3
)%
Net income before income taxes
9,901
5,593
77.0
%
Income tax expense
4,406
739
496.2
%
Net Income
$
5,495
$
4,854
13.2
%
Earnings per share - basic
$
0.31
$
0.28
12.7
%
Earnings per share - diluted
$
0.30
$
0.27
12.3
%
Weighted-average common shares outstanding
- basic
17,914,625
17,644,097
1.5
%
Weighted-average common shares outstanding
- diluted
18,329,695
18,177,530
0.8
%
Reconciliation of
Net Income (GAAP) to Commercial Bank Operating Earnings
(Non-GAAP):
GAAP net income reported above
$
5,495
$
4,854
Add: Loss on sale of available-for-sale
investment securities
—
4,592
Add: office space reduction and severance
costs
—
—
Add: Non-recurring tax and 10% modified
endowment contract penalty on early surrender of BOLI policies
2,386
—
Subtract: Non-recurring valuation
adjustment of minority investment
—
—
Subtract: provision for income taxes
associated with non-GAAP adjustments
—
(1,010
)
Adjusted Net Income, core bank operating
earnings (non-GAAP)
$
7,881
$
8,436
Adjusted Earnings per share - basic
(non-GAAP core bank operating earnings)
$
0.44
$
0.48
Adjusted Earnings per share - diluted
(non-GAAP core bank operating earnings)
$
0.43
$
0.46
Adjusted Return on average assets
(non-GAAP core bank operating earnings)
0.73
%
0.74
%
Adjusted Return on average equity
(non-GAAP core bank operating earnings)
7.10
%
8.17
%
Adjusted Efficiency ratio (non-GAAP core
bank operating earnings)
63.55
%
62.25
%
Reconciliation of
Net Income (GAAP) to Pre-Tax Pre-Provision Income
(Non-GAAP):
GAAP net income reported above
$
5,495
$
4,854
Add: Provision for credit losses
206
860
Add: loss on sale of investment
securities
—
4,592
Add: Non-recurring tax and 10% modified
ednowment contract penalty on early surrender of BOLI policies
2,386
—
(Subtract) Add: Income tax expense
2,020
739
Adjusted Pre-tax pre-provision income
$
10,107
$
11,045
Adjusted Earnings per share - basic
(non-GAAP pre-tax pre-provision)
$
0.56
$
0.63
Adjusted Earnings per share - diluted
(non-GAAP pre-tax pre-provision)
$
0.55
$
0.61
Adjusted Return on average assets
(non-GAAP pre-tax pre-provision)
0.93
%
0.97
%
Adjusted Return on average equity
(non-GAAP pre-tax pre-provision)
9.11
%
10.70
%
FVCBankcorp, Inc.
Average Statements of
Condition and Yields on Earning Assets and Interest-Bearing
Liabilities
(Dollars in thousands)
(Unaudited)
For the Three Months
Ended
6/30/2024
3/31/2024
6/30/2023
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
$
1,087,064
$
13,795
5.08
%
$
1,091,088
$
13,561
4.97
%
$
1,119,042
$
13,541
4.84
%
Commercial and industrial
253,485
5,022
7.92
%
228,147
4,361
7.65
%
197,130
3,735
7.58
%
Commercial construction
162,711
2,918
7.17
%
152,535
2,752
7.22
%
156,471
2,814
7.19
%
Consumer real estate
347,180
4,116
4.74
%
358,886
4,439
4.95
%
360,161
4,241
4.71
%
Warehouse facilities
26,000
483
7.44
%
4,531
88
7.77
%
28,910
510
7.06
%
Consumer nonresidential
5,902
123
8.34
%
5,700
113
7.96
%
6,099
143
9.36
%
Total loans
1,882,342
26,457
5.62
%
1,840,887
25,314
5.50
%
1,867,813
24,984
5.35
%
Investment securities (2)(3)
211,630
1,114
2.10
%
215,020
1,143
2.12
%
288,987
1,375
1.90
%
Interest-bearing deposits at other
financial institutions
29,459
401
5.48
%
27,533
372
5.44
%
66,781
844
5.07
%
Total interest-earning assets
2,123,431
$
27,972
5.27
%
2,083,440
$
26,829
5.15
%
2,223,581
$
27,205
4.89
%
Non-interest earning assets:
Cash and due from banks
7,553
5,946
6,930
Premises and equipment, net
979
976
1,152
Accrued interest and other assets
57,755
87,983
96,656
Allowance for credit losses
(18,932
)
(18,882
)
(19,068
)
Total Assets
$
2,170,786
$
2,159,463
$
2,309,251
Interest-bearing liabilities:
Interest checking
$
549,071
$
4,622
3.39
%
$
499,923
$
3,942
3.17
%
$
531,440
$
3,546
2.68
%
Savings and money market
334,627
3,081
3.70
%
300,371
2,507
3.36
%
245,306
1,289
2.11
%
Time deposits
286,910
3,104
4.35
%
300,873
3,208
4.29
%
393,877
3,563
3.63
%
Wholesale deposits
249,846
2,087
3.36
%
305,392
2,884
3.80
%
377,126
3,615
3.84
%
Total interest-bearing deposits
1,420,454
12,894
3.65
%
1,406,559
12,541
3.59
%
1,547,748
12,012
3.11
%
Other borrowed funds
99,758
1,150
4.63
%
107,830
1,237
4.61
%
57,176
546
3.83
%
Subordinated notes, net of issuance
costs
19,639
257
5.27
%
19,624
257
5.28
%
19,583
258
5.27
%
Total interest-bearing liabilities
1,539,851
$
14,301
3.74
%
1,534,013
$
14,035
3.68
%
1,624,507
$
12,816
3.16
%
Noninterest-bearing
liabilities:
Noninterest-bearing deposits
378,280
380,119
454,299
Other liabilities
28,740
25,288
23,146
Shareholders’ equity
223,914
220,043
207,299
Total Liabilities and Shareholders'
Equity
$
2,170,786
$
2,159,463
$
2,309,251
Net Interest Margin
$
13,671
2.59
%
$
12,794
2.47
%
$
14,390
2.60
%
(1)
Non-accrual loans are included in average
balances.
(2)
The average yields for investment
securities are reported on a fully taxable-equivalent basis at a
rate of 22% for the three months ended June 30, 2024, March 31,
2024 and June 30, 2023. The taxable equivalent adjustment to
interest income was ($8), $2 and $1 for the three months ended June
30, 2024. March 31, 2024 and June 30, 2023.
(3)
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 Six Months
Ended
6/30/2024
6/30/2023
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
$
1,089,076
$
27,356
5.02
%
$
1,108,700
$
26,221
4.73
%
Commercial and industrial
240,816
9,383
7.79
%
200,160
7,183
7.18
%
Commercial construction
157,622
5,670
7.19
%
155,010
5,453
7.04
%
Consumer real estate
353,033
8,557
4.85
%
352,728
8,289
4.71
%
Warehouse facilities
15,266
571
7.49
%
26,471
934
7.06
%
Consumer nonresidential
5,801
234
8.07
%
6,424
302
9.41
%
Total loans
1,861,614
51,771
5.56
%
1,849,493
48,382
5.23
%
Investment securities (2)(3)
213,325
2,255
2.11
%
308,072
3,012
1.96
%
Interest-bearing deposits at other
financial institutions
28,496
773
5.46
%
46,606
1,146
4.96
%
Total interest-earning assets
2,103,435
$
54,799
5.21
%
2,204,172
$
52,540
4.77
%
Non-interest earning assets:
Cash and due from banks
5,880
5,874
Premises and equipment, net
978
1,180
Accrued interest and other assets
73,739
95,670
Allowance for credit losses
(18,907
)
(18,061
)
Total Assets
$
2,165,125
$
2,288,835
Interest-bearing liabilities:
Interest checking
$
524,497
$
8,565
3.28
%
$
525,637
$
6,461
2.48
%
Savings and money market
317,499
5,589
3.54
%
268,867
2,763
2.07
%
Time deposits
293,891
6,310
4.32
%
347,972
5,742
3.33
%
Wholesale deposits
277,619
4,971
3.60
%
314,706
5,827
3.73
%
Total interest-bearing deposits
1,413,506
25,435
3.62
%
1,457,182
20,793
2.88
%
Other borrowed funds
103,794
2,387
4.62
%
143,735
2,827
3.97
%
Subordinated notes, net of issuance
costs
19,632
514
5.27
%
19,577
515
5.30
%
Total interest-bearing liabilities
1,536,932
$
28,336
3.71
%
1,620,494
$
24,135
3.00
%
Noninterest-bearing
liabilities:
Noninterest-bearing deposits
379,199
437,161
Other liabilities
27,015
24,768
Shareholders’ equity
221,979
206,412
Total Liabilities and Shareholders'
Equity
$
2,165,125
$
2,288,835
Net Interest Margin
$
26,463
2.53
%
$
28,405
2.60
%
(1)
Non-accrual loans are included in average
balances.
(2)
The average yields for investment
securities are reported on a fully taxable-equivalent basis at a
rate of 22% for the six months ended June 30, 2024, and June 30,
2023. The taxable equivalent adjustment to interest income was ($6)
and $2 for the six months ended June 30, 2024 and 2023,
respectively.
(3)
The average balances for investment
securities includes restricted stock.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725241854/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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De Jun 2024 a Jul 2024
FVCBankcorp (NASDAQ:FVCB)
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De Jul 2023 a Jul 2024
