FVCBankcorp, Inc. Announces Record First Quarter 2021 Earnings
FVCBankcorp, Inc. (NASDAQ: FVCB) reported a net income of $5.6 million, or $0.38 diluted EPS for Q1 2021, a 49% increase from $3.7 million in Q1 2020. Net revenues rose to $14.8 million, up $1.9 million year-over-year. The bank's annualized return on average assets improved to 1.19% from 0.96%, while return on equity increased to 11.53% from 8.29%. Core deposits surged by $77.1 million, or 21% annualized. However, net interest margin declined to 3.22%. Overall, the results indicate strong growth and improved credit quality metrics.
- Net income increased $1.8 million, or 49%, year-over-year.
- Core deposits rose by $77.1 million, marking a 21% annualized growth.
- Pre-tax pre-provision income improved by 22% year-over-year.
- Nonperforming loans reduced to 0.27% of total assets, down from 0.31%.
- Net interest margin decreased to 3.22%, down from 3.37% year-over-year.
- Loans receivable decreased by $19.2 million, or 1%.
FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported first quarter 2021 net income of
Annualized return on average assets was
First Quarter Selected Highlights
-
Improved Credit Quality Metrics. During the first quarter of 2021, watchlist credits decreased
$9.9 million , or30% , to$22.8 million at March 31, 2021 from$32.7 million at December 31, 2020, a result of aggressive management of watchlist credits and loan payoffs. Nonperforming loans and loans past due 90 days or more and still accruing were0.27% of total assets at March 31, 2021, compared to0.31% at December 31, 2020. -
Increased Pre-Tax Pre-Provision Income. For the three months ended March 31, 2021 and 2020, pre-tax pre-provision income was
$7.0 million and$5.7 million , respectively, an increase of$1.3 million or22% . On a linked quarter basis, pre-tax pre-provision income was also$7.0 million for the three months ended December 31, 2020. Pre-tax pre-provision annualized return on average assets for the three months ended March 31, 2021 and 2020 were1.49% and1.47% , respectively. A reconciliation of pre-tax pre-provision income, a non-GAAP financial measure, can be found in the tables below. -
Strong Core Deposit Growth. Core deposits, which exclude wholesale deposits, increased
$77.1 million , to$1.56 billion at March 31, 2021, or21% annualized, from December 31, 2020. Noninterest-bearing deposits increased$102.8 million to$501.8 million at March 31, 2021, representing31% of total deposits at March 31, 2021. -
Increased Net Interest Income. Net interest income increased
$1.8 million to$14.0 million for the first quarter of 2021, compared to$12.2 million for the same 2020 period. Net interest margin was3.22% for the quarter ended March 31, 2021, compared to3.37% for the year ago quarter of 2020 and3.28% for the fourth quarter of 2020.
“Our second consecutive record quarterly earnings demonstrate our ability to generate continued profitable growth, building long term value for our shareholders. Our business development efforts and commitment to our markets continue to drive new relationships, as evidenced by our deposit growth during the quarter. Our conservative credit culture has resulted in lower loan losses than initially anticipated at the start of the pandemic. As a more optimistic economic outlook provides momentum heading into the second quarter, along with a robust pipeline of loan originations, we are positioned for strong loan growth for the remainder of 2021,” stated David W. Pijor, Chairman and CEO.
Balance Sheet
Total assets increased to
PPP loans, net of fees, totaled
Investment securities increased
Total deposits increased to
The Company’s bank subsidiary, FVCbank, remains well-capitalized at March 31, 2021 with a community bank leverage ratio of
Income Statement
Net income for the three months ended March 31, 2021 was
Net interest income totaled
The Company’s net interest margin decreased 15 basis points to
Cost of interest-bearing deposits for the first quarter of 2021 was
Noninterest income totaled
For the three months ended March 31, 2021, the Company recorded no gains or losses on sales of assets. However, during the three months ended March 31, 2020, the Company recorded gains on sales of investment securities available-for-sale totaling
Noninterest expense totaled
The efficiency ratio for the quarter ended March 31, 2021 was
The Company recorded a provision for income taxes of
Asset Quality
The Company recorded no provision for loan losses for the three months ended March 31, 2021, compared to
The allowance for loan losses to total loans, excluding PPP loans, was
Nonperforming loans and loans 90 days or more past due at March 31, 2021 totaled
COVID-19 Pandemic Impact to Loan Portfolio
As a result of the COVID-19 pandemic, the Company implemented loan payment deferral programs to allow customers who were required to close or reduce business operations to defer loan principal and interest payments primarily for 90 days. At March 31, 2021, remaining payment deferred loans totaled
The Company is closely and proactively monitoring the effects of the pandemic on its loan and deposit customers and is focused on assessing risks within the loan portfolio and working with customers to minimize losses. The Company considers pandemic impacted loans to include commercial real estate loans to hotels, churches, and certain retail and special purpose asset classes. During its assessment of the allowance for loan losses, the Company addressed the credit risks associated with these pandemic impacted segments and those loan customers that have requested payment deferrals.
About FVCBankcorp, Inc.
FVCBankcorp, Inc. is the holding company for FVCbank, a wholly-owned subsidiary that commenced operations in November 2007. FVCbank is a
For more information on the Company’s selected financial information, please visit the Investor Relations page of FVCBankcorp, Inc.’s website, www.fvcbank.com.
Caution about Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited, statements of goals, intentions, and expectations as to future trends, plans, events or results of the Company’s operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. These forward-looking statements are based on current beliefs that involve significant risks, uncertainties, and assumptions. Factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, include, but are not limited to, the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and in other periodic and current reports filed with the Securities and Exchange Commission. Because of these uncertainties and the assumptions on which the forward-looking statements are based, actual operations and results in the future may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance.
| FVCBankcorp, Inc. Selected Financial Data (Dollars in thousands, except share data and per share data) (Unaudited) |
||||||||||||
| For the Quarters Ended | ||||||||||||
| 3/31/2021 | 12/31/2020 | 3/31/2020 | ||||||||||
| Selected Balances | ||||||||||||
| Total assets | $ |
1,884,517 |
|
$ |
1,821,481 |
|
$ |
1,602,611 |
|
|||
| Total investment securities |
|
141,745 |
|
|
132,978 |
|
|
133,586 |
|
|||
| Loans held for sale |
|
- - |
|
|
- - |
|
|
9,640 |
|
|||
| Total loans, net of deferred fees |
|
1,446,912 |
|
|
1,466,083 |
|
|
1,282,142 |
|
|||
| Allowance for loan losses |
|
(14,421 |
) |
|
(14,958 |
) |
|
(11,226 |
) |
|||
| Total deposits |
|
1,594,639 |
|
|
1,532,493 |
|
|
1,344,044 |
|
|||
| Subordinated debt |
|
44,116 |
|
|
44,085 |
|
|
24,507 |
|
|||
| Other borrowings |
|
25,000 |
|
|
25,000 |
|
|
25,000 |
|
|||
| Total stockholders’ equity |
|
194,929 |
|
|
189,500 |
|
|
177,688 |
|
|||
| Summary Results of Operations | ||||||||||||
| Interest income | $ |
16,778 |
|
$ |
17,129 |
|
$ |
16,931 |
|
|||
| Interest expense |
|
2,735 |
|
|
3,010 |
|
|
4,720 |
|
|||
| Net interest income |
|
14,043 |
|
|
14,119 |
|
|
12,211 |
|
|||
| Provision for loan losses |
|
- - |
|
|
500 |
|
|
1,066 |
|
|||
| Net interest income after provision for loan losses |
|
14,043 |
|
|
13,619 |
|
|
11,145 |
|
|||
| Noninterest income - loan fees, service charges and other |
|
543 |
|
|
476 |
|
|
764 |
|
|||
| Noninterest income - bank owned life insurance |
|
248 |
|
|
264 |
|
|
283 |
|
|||
| Noninterest income - gain on sales of securities available-for-sale |
|
- - |
|
|
- - |
|
|
97 |
|
|||
| Noninterest income - loss on loans held for sale |
|
- - |
|
|
- - |
|
|
(451 |
) |
|||
| Noninterest expense |
|
7,882 |
|
|
7,885 |
|
|
7,209 |
|
|||
| Income before taxes |
|
6,952 |
|
|
6,474 |
|
|
4,629 |
|
|||
| Income tax expense |
|
1,383 |
|
|
1,460 |
|
|
896 |
|
|||
| Net income |
|
5,569 |
|
|
5,014 |
|
|
3,733 |
|
|||
| Per Share Data | ||||||||||||
| Net income, basic | $ |
0.41 |
|
$ |
0.37 |
|
$ |
0.27 |
|
|||
| Net income, diluted | $ |
0.38 |
|
$ |
0.36 |
|
$ |
0.26 |
|
|||
| Book value | $ |
14.29 |
|
$ |
14.03 |
|
$ |
13.21 |
|
|||
| Tangible book value (1) | $ |
13.69 |
|
$ |
13.41 |
|
$ |
12.57 |
|
|||
| Shares outstanding |
|
13,638,934 |
|
|
13,510,760 |
|
|
13,451,678 |
|
|||
| Selected Ratios | ||||||||||||
| Net interest margin (2) |
|
3.22 |
% |
|
3.28 |
% |
|
3.37 |
% |
|||
| Return on average assets (2) |
|
1.19 |
% |
|
1.11 |
% |
|
0.96 |
% |
|||
| Return on average equity (2) |
|
11.53 |
% |
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FAQ
What are FVCB's earnings results for Q1 2021?
FVCB reported a net income of $5.6 million, or $0.38 per diluted share for Q1 2021.
How much did FVCB's revenue increase in Q1 2021?
Net revenues increased by $1.9 million to $14.8 million in Q1 2021.
What is the current return on equity for FVCB?
The annualized return on average equity for FVCB is 11.53% for Q1 2021.
What is FVCB's outlook following the Q1 2021 report?
FVCB expects strong loan growth for the remainder of 2021 due to a robust pipeline of loan originations.
FVCBankcorp, Inc.
NASDAQ:FVCBFVCB RankingsFVCB Latest NewsFVCB Stock Data
257.50M
15.33M
14.69%
47.29%
0.46%
Banks - Regional
State Commercial Banks
United States of America
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