FVCBankcorp, Inc. Announces Third Quarter 2024 Earnings; Quarterly Net Income Increased 16% Year-Over-Year as Net Interest Income and Margin Continue to Improve

Rhea-AI Summary

FVCBankcorp, Inc. (NASDAQ: FVCB) announced its Q3 2024 financial results, reporting a 16% increase in net income year-over-year to $4.7 million, or $0.25 per diluted share. Return on average assets rose to 0.85%, a 21% increase from Q3 2023. The net interest margin improved by 25 basis points to 2.64%. Classified loans decreased by 86% to $3.2 million, reflecting solid credit quality.

For the nine months ended September 30, 2024, net income was $10.2 million, a 14% increase year-over-year. Total assets grew to $2.29 billion, a 5% increase from December 31, 2023. Loans receivable increased by 2.5% year-to-date. Total deposits rose by 6% to $1.96 billion. The Bank remains well-capitalized with a total risk-based capital ratio of 14.52%.

Management highlighted disciplined loan originations and deposit pricing as key factors for improved net interest income and margin. The Bank originated over $59 million in loans during Q3 2024.

Positive

• Net income increased 16% year-over-year to $4.7 million.
• Return on average assets rose to 0.85%, a 21% increase from Q3 2023.
• Net interest margin improved by 25 basis points to 2.64%.
• Classified loans decreased by 86% to $3.2 million.
• Total assets grew to $2.29 billion, a 5% increase from December 31, 2023.
• Total deposits rose by 6% to $1.96 billion.
• The Bank remains well-capitalized with a total risk-based capital ratio of 14.52%.

Negative

• Nonaccrual loans increased to $3.6 million, 0.16% of total assets, from $1.8 million at December 31, 2023.

Insights

Financial Analyst

FVCBankcorp's Q3 2024 results show strong financial performance and improved profitability. Key highlights include:

• Net income increased 16% year-over-year to $4.7 million ($0.25 EPS)
• Return on average assets improved to 0.85%, up from 0.70% a year ago
• Net interest margin expanded 25 basis points to 2.64%
• Loan yields increased 43 basis points year-over-year to 5.83%
• Credit quality remains solid with classified loans down 86% from prior quarter

The bank is effectively managing its loan portfolio mix and pricing to drive higher yields in the current rate environment. With 28% of commercial loans repricing within 12 months, there's potential for further margin expansion. Strong deposit growth and improved capital ratios also position the bank well. Overall, FVCB is demonstrating solid execution and improved profitability metrics.

Banking Industry Expert

FVCBankcorp's Q3 results highlight several positive trends:

• Disciplined loan growth focused on higher-yielding commercial & industrial loans
• Effective deposit gathering, with total deposits up 6% year-to-date
• Prudent management of funding costs, with net interest margin expanding
• Strong credit quality, with nonaccrual loans at just 0.16% of assets
• Well-capitalized position with total risk-based capital of 14.52%

The bank's strategy of focusing on full customer relationships is paying off through compensating balances and efficient funding. The diversification into mortgage banking via Atlantic Coast Mortgage is also contributing positively to non-interest income. With a solid capital base and improving profitability metrics, FVCB appears well-positioned to continue its growth trajectory in its core DC metro market. The bank's proactive management of its CRE portfolio and conservative underwriting should help mitigate potential risks in that segment.

FAIRFAX, Va.--(BUSINESS WIRE)-- FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported its financial results for the third quarter of 2024.

Third Quarter Selected Financial Highlights

• Enhanced Profitability. Return on average assets for the quarter ended September 30, 2024 was 0.85%, an increase of 21%, from 0.70% for the quarter ended September 30, 2023, and increased 10%, from 0.77%, for the linked quarter ended June 30, 2024.
• Increased Net Income. Net income increased compared to the year ago quarter and prior quarter. Net income totaled $4.7 million, or $0.25 diluted earnings per share, for the quarter ended September 30, 2024, compared to net income of $4.0 million, or $0.22 diluted earnings per share, for quarter ended September 30, 2023, and net income of $4.2 million, or $0.23 diluted earnings per share, for the quarter ended June 30, 2024.
• Continued Improvement in Net Interest Margin. Net interest margin increased 25 basis points, or 10%, to 2.64% for the third quarter of 2024, compared to 2.39% for the third quarter of 2023. On a linked quarter basis, net interest margin increased 5 basis points from 2.59% for the three months ended June 30, 2024.
• Solid Credit Quality. Classified loans decreased $19.9 million, or 86%, to $3.2 million at September 30, 2024 compared to the prior quarter. Nonaccrual loans decreased $744 thousand, or 23%, from prior quarter end, and were 0.16% of total assets at September 30, 2024. The Company recorded net recoveries of $63 thousand during the third quarter of 2024.
• Sound, Well Capitalized Balance Sheet. All of FVCbank’s (the “Bank”) regulatory capital components and ratios were well in excess of thresholds required to be considered "well capitalized", with total risk-based capital to risk-weighted assets of 14.52% at September 30, 2024, compared to 13.83% at December 31, 2023. The tangible common equity ("TCE") to tangible assets ("TA") ratio for the Bank increased to 10.21% at September 30, 2024, from 9.40% at September 30, 2023. The Bank’s investment securities are classified as available-for-sale, and therefore the unrealized losses on these securities are fully reflected in the TCE/TA ratio.

For the three months ended September 30, 2024, the Company recorded net income of $4.7 million, or $0.25 diluted earnings per share, an increase of $630 thousand, compared to $4.0 million, or $0.22 diluted earnings per shares, for the three months ended September 30, 2023. Compared to the linked quarter, net income increased $514 thousand for the three months ended September 30, 2024, from $4.2 million for the three months ended June 30, 2024. For the nine months ended September 30, 2024, the Company reported net income of $10.2 million, or $0.55 diluted earnings per share, an increase of $1.3 million, or 14%, compared to net income of $8.9 million, or $0.49 diluted earnings per share for the nine months ended September 30, 2023.

Commercial bank operating earnings (non-GAAP), which exclude the nonrecurring taxes recorded for the surrender of the Company’s bank-owned life insurance (“BOLI”) policies during the first quarter of 2024 and the loss on the sale of available-for-sale investment securities during the first quarter of 2023, for the nine months ended September 30, 2024 and 2023 were $12.6 million and $12.5 million, respectively, an increase of $76 thousand. Diluted commercial bank operating earnings per share (non-GAAP) for the nine month periods ended September 30, 2024 and 2023 were $0.68 and $0.69, respectively.

The Company considers commercial bank operating earnings a useful comparative financial measure of the Company’s operating performance over multiple periods. Commercial bank operating earnings are determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). A reconciliation of non-GAAP financial measures to their most comparable financial measure in accordance with GAAP can be found in the tables below.

Management Comments

David W. Pijor, Esq., Chairman and Chief Executive Officer of the Company, said:

“Our disciplined approach to loan originations and deposit pricing continues to enhance our net interest income and margin for a third consecutive quarter. We continue to focus on attaining the full customer relationship which has allowed us to continue to originate loans to strong credit-worthy borrowers with compensating balances. During the third quarter of 2024, we originated over $59 million in loans, which were funded through loan maturities and deposit growth. Lastly, our partners at Atlantic Coast Mortgage (“ACM”) have continued profitability for the third quarter and year-to-date periods, which has enhanced our noninterest income for 2024.”

Statement of Condition

Total assets were $2.29 billion at September 30, 2024 and $2.19 billion at December 31, 2023, an increase of $102.7 million, or 5%. At September 30, 2023, total assets were $2.31 billion.

Loans receivable, net of deferred fees, were $1.87 billion at September 30, 2024, $1.83 billion at December 31, 2023, and $1.85 billion at September 30, 2023. Year-to-date, total loans, net of fees, increased $46.4 million, or 2.5%. For the three months ended September 30, 2024, loans receivable, net of fees, decreased $12.0 million, of which $13.6 million of this decrease is related to the warehouse line held by ACM. Excluding the warehouse line, loans increased $1.7 million for the quarter ended September 30, 2024. During the third quarter of 2024, loan originations totaled $58.7 million with a weighted average rate of 9.27%, and were primarily comprised of commercial and industrial loans. Loan renewals totaled $60.4 million and had a weighted average rate of 8.94%. Loans that paid off during the third quarter of 2024 totaled $51.6 million and had a weighted average rate of 7.52%.

Investment securities were $165.3 million at September 30, 2024, $171.9 million at December 31, 2023, and $216.4 million at September 30, 2023. Investment securities during the nine months ended September 30, 2024 decreased $6.6 million, primarily due to principal repayments and maturities totaling $11.2 million, offset by a decrease in the portfolio’s unrealized losses totaling $4.6 million.

Total deposits were $1.96 billion at September 30, 2024 and $1.85 billion at December 31, 2023, an increase of $115.5 million, or 6%. Noninterest-bearing deposits were $357.0 million at September 30, 2024, or 18.2% of total deposits, and decreased $16.8 million during the third quarter of 2024, as customers continue to sweep to interest-bearing deposit products. New noninterest- bearing deposits totaled $7.2 million for the quarter ended September 30, 2024. Cash inflows from new non-maturity deposits totaled $97.9 million for the quarter ended September 30, 2024, and were largely from 1031 exchange and title company deposits. The Company continues to grow its core deposit base and consistently sees new deposit inflows each quarter. As a member of the IntraFi Network, the Bank offers products to its customers who seek to maximize FDIC insurance protection (“reciprocal deposits”). At September 30, 2024 and December 31, 2023, reciprocal deposits totaled $238.1 million and $254.1 million, respectively, and are considered part of the Company’s core deposit base. Time deposits decreased $28.2 million to $246.5 million during the third quarter of 2024 compared to $274.7 million for the linked quarter ended June 30, 2024, as time deposits that were originated during 2023 with a weighted average rate of 5.16% matured in September.

At September 30, 2024, wholesale funding totaled $306.9 million and had a weighted average rate of 3.47% (including $250 million in pay-fixed/receive-floating interest rate swaps at an average rate of 3.25%). Wholesale funding at September 30, 2024 includes wholesale deposits totaling $249.9 million and other borrowed funds totaling $57.0 million. For the quarter ended September 30, 2024, wholesale funding had a weighted average rate of 3.50% compared to a weighted average rate of 3.72% for the quarter ended June 30, 2024.

Shareholders’ equity at September 30, 2024 was $230.8 million, an increase of $13.7 million, or 6%, from December 31, 2023. Year-to-date 2024 earnings contributed $10.2 million to the increase in shareholders’ equity. Common stock issued for stock options exercised contributed $2.1 million to shareholders’ equity for the 2024 year-to-date period. Accumulated other comprehensive loss decreased $1.4 million for the 2024 year-to-date period, which was primarily related to the change in the Company’s other comprehensive income associated with its available-for sale investment securities at September 30, 2024.

Book value per share at September 30, 2024 and December 31, 2023 was $12.68 and $12.19, respectively. Tangible book value per share (a non-GAAP financial measure which is defined in the tables below) at September 30, 2024 and December 31, 2023 was $12.27 and $11.77, respectively. Tangible book value per share, excluding accumulated other comprehensive loss (a non-GAAP financial measure which is defined in the tables below), at September 30, 2024 and December 31, 2023 was $13.52 and $13.12, respectively.

The Bank was well-capitalized at September 30, 2024, with total risk-based capital ratio of 14.52%, common equity tier 1 risk-based capital ratio of 13.48%, and tier 1 leverage ratio of 11.49%.

Asset Quality

For the three and nine months ended September 30, 2024, the Company released provisioning for credit losses totaling $200 thousand, and recorded provision expense totaling $6 thousand, respectively. This is compared to a release of provisioning for credit losses totaling $729 thousand and provision expense of $132 thousand for the three and nine months ended September 30, 2023, respectively. The allowance for credit losses (“ACL”) on loans to total loans, net of fees, was 1.02% at September 30, 2024, compared to 1.03% at December 31, 2023.

Nonaccrual loans and loans 90 days or more past due at September 30, 2024 totaled $3.6 million, or 0.16% of total assets, compared to $1.8 million, or 0.08% of total assets, at December 31, 2023. The increase in nonperforming loans at September 30, 2024 is primarily a result of one commercial & industrial loan relationship that was placed on nonaccrual during the first quarter of 2024. Classified loans decreased $19.9 million, or 86%, to $3.2 million at September 30, 2024 compared to the prior quarter. The Company had no other real estate owned at September 30, 2024.

The Company recorded net recoveries of $63 thousand and $68 thousand for the three and nine months ended September 30, 2024, respectively. At September 30, 2024 and December 31, 2023, the ACL on loans was $19.1 million and $18.9 million, respectively. ACL coverage to nonperforming loans decreased to 536% at September 30, 2024, compared to 1032% at December 31, 2023, as a result of the $1.7 million increase in nonperforming loans during 2024.

At September 30, 2024, commercial real estate loans totaled $1.06 billion, or 57% of total loans, net of fees, and construction loans totaled $173.8 million, or 9% of total loans, net of fees. Included in commercial real estate and construction loans are loans secured by office buildings totaling $137.4 million, or 7% of total loans, which are primarily located in the Virginia and Maryland suburbs of the Company’s market area, with $2.4 million, or 0.13% of total loans, located in Washington, D.C. Loans secured by retail shopping centers totaled $260.7 million, or 14% of total loans, at September 30, 2024. Loans secured by multi-family housing totaled $164.6 million, or 9% of total loans, at September 30, 2024. The commercial real estate portfolio, including construction loans, is diversified by asset type and geographic concentration. The Company has comprehensive policies to monitor, measure, and mitigate its loan concentrations within this portfolio segment, including rigorous credit approval, monitoring and administrative practices. The following table provides further stratification of these and additional classes of real estate loans at September 30, 2024 (dollars in thousands).

Owner Occupied Commercial Real Estate					Non-Owner Occupied Commercial Real Estate					Construction
Asset Class	Average Loan-to-Value (1)	Number of Total Loans	Bank Owned Principal (2)		Average Loan-to-Value (1)	Number of Total Loans	Bank Owned Principal (2)		Top 3 Geographic Concentration	Number of Total Loans	Bank Owned Principal (2)		Total Bank Owned Principal (2)		% of Total Loans
Office, Class A	68%	6	$	7,426	46%	4	$	3,688	Counties of Fairfax and Loudoun, Virginia and Montgomery County, Maryland	—	$	—	$	11,114
Office, Class B	49%	30		10,795	45%	28		56,782		—		—		67,577
Office, Class C	53%	8		5,095	38%	8		1,871		1		865		7,831
Office, Medical	38%	7		1,121	46%	7		41,312		1		8,426		50,859
Subtotal		51	$	24,437		47	$	103,653		2	$	9,291	$	137,381	7%
Retail- Neighborhood/Community Shop		—	$	—	43%	30	$	81,172	Prince George's County, Maryland, Baltimore County, MD, Fairfax County, VA	2	$	11,358	$	92,530
Retail- Restaurant	56%	8		7,113	44%	16		26,137		—		—		33,250
Retail- Single Tenant	58%	5		1,942	42%	20		36,155		—		—		38,097
Retail- Anchored,Other		—		—	51%	13		42,736		—		—		42,736
Retail- Grocery-anchored		—		—	46%	8		52,819		1		1,238		54,057
Subtotal		13	$	9,055		87	$	239,019		3	$	12,596	$	260,670	14%
Multi-family, Class A (Market)		—	$	—		1	$	—	Washington, D.C., Baltimore City, Maryland and Richmond City, Virginia	1	$	1,044	$	1,044
Multi-family, Class B (Market)		—		—	63%	20		69,252		—		—		69,252
Multi-family, Class C (Market)		—		—	55%	56		66,939		2		7,047		73,986
Multi-Family-Affordable Housing		—		—	52%	10		16,277		1		4,013		20,290
Subtotal		—	$	—		87	$	152,468		4	$	12,104	$	164,572	9%
Industrial	50%	41	$	66,732	47%	38	$	124,694	Prince William County, Virginia, Fairfax County, Virginia and Howard County, Maryland	1	$	1,411	$	192,837
Warehouse	54%	13		17,704	27%	8		9,327		—		—		27,031
Flex	50%	14		15,499	54%	14		56,144		2		—		71,643
Subtotal		68	$	99,935		60	$	190,165		3	$	1,411	$	291,511	16%
Hotels		—	$	—	42%	9	$	55,177		1	$	7,315	$	62,492	3%
Mixed Use	45%	10	$	5,839	60%	36	$	65,773		—	$	—	$	71,612	4%
Land			$	—			$	—		26	$	55,588	$	55,588	3%
1-4 Family construction			$	—			$	—		17	$	50,274	$	50,274	3%
Other (including net deferred fees)			$	57,003			$	60,454			$	25,227	$	142,684	8%
Total commercial real estate and construction loans, net of fees, at September 30, 2024			$	196,269			$	866,709			$	173,806	$	1,236,784	66%
At December 31, 2023			$	212,889			$	878,744			$	147,998	$	1,239,631	68%
(1) Loan-to-value is determined at origination date against current bank owned principal.
(2) Bank-owned principal is not adjusted for deferred fees and costs.
(3) Minimum debt service coverage policy is 1.30x for owner occupied and 1.25x for Non-Owner Occupied at origination.

The loans shown in the above table exhibit strong credit quality, reflecting two classified loans at September 30, 2024 totaling $1.6 million. During its assessment of the allowance for credit losses, the Company addressed the credit risks associated with these portfolio segments and believes that as a result of its conservative underwriting discipline at loan origination and its ongoing loan monitoring procedures, the Company has appropriately reserved for possible credit concerns in the event of a downturn in economic activity.

Minority Investment in Mortgage Banking Operation

In August 2021, the Company acquired a membership interest in ACM to diversify its loan portfolio while providing competitive residential mortgage products to its customers and to generate additional revenue. The Company’s investment in ACM is reflected as a nonconsolidated minority investment, and as such, the Company’s income generated from the investment is included in non-interest income. For the three months ended September 30, 2024 and 2023, the Company reported income of $278 thousand and a loss of $650 thousand, respectively, an increase of $928 thousand. For the nine months ended September 30, 2024 and 2023, the Company recorded income of $425 thousand compared to a loss of $1.4 million, respectively, related to its investment in ACM.

Income Statement

The Company recorded net income of $4.7 million for the three months ended September 30, 2024, an increase of $630 thousand, or 16%, compared to $4.0 million for the three months ended September 30, 2023. Compared to the linked quarter, net income for the three months ended September 30, 2024 increased $514 thousand, or 12%, from $4.2 million for the quarter ended June 30, 2024.

Net interest income increased $879 thousand, or 7%, to $14.2 million for the quarter ended September 30, 2024, compared to $13.3 million for the third quarter of 2023, and increased $543 thousand, or 4%, compared to the linked quarter ended June 30, 2024. Compared to the year ago quarter ended September 30, 2023, the increase in net interest income for the third quarter of 2024 is primarily due to an increase in loan interest income as the loan portfolio reprices in this high interest rate environment.

The Company's net interest margin increased 25 basis points to 2.64% for the quarter ended September 30, 2024 compared to 2.39% for the year ago quarter ended September 30, 2023, and increased 5 basis points from 2.59% for the linked quarter ended June 30, 2024. The increase in net interest margin is a result of continued improvement in the yields of the Company’s loan portfolio and its management to control funding costs.

Compared to the year ago quarter ended September 30, 2023, interest income increased $1.8 million, or 7%, to $29.2 million, for the third quarter of 2024. Total interest income increased $1.3 million, or 5%, for the third quarter of 2024 compared to the linked quarter ended June 30, 2024. Loan interest income increased $2.1 million, or 8%, to $27.4 million for the three months ended September 30, 2024, compared to $25.2 million for the three months ended September 30, 2023, as average total loans only increased $10.3 million during this same comparable period. Compared to the linked quarter ended June 30, 2024, loan interest income increased $924 thousand, or 3%, as average total loans decreased $3.2 million.

The Company has actively managed its maturing commercial real estate loan portfolio and further diversified its loan mix toward commercial & industrial loans, which earn higher yields. Loan yields increased 43 basis points to 5.83% for the three months ended September 30, 2024 compared to the same period of 2023, and increased 21 basis points compared to the linked quarter ended June 30, 2024. The yield on earning assets increased 51 basis points to 5.46% for the three months ended September 30, 2024 compared to 4.95% for the same period of 2023, partially as a result of the balance sheet repositionings completed during 2023 along with the repricing of the Company’s variable rate loan portfolio and new loan originations.

At September 30, 2024, approximately $434.9 million, or 28%, of the Company’s commercial loan portfolio is expected to reprice in the next 12 months, which is comprised of the following: $112.8 million in fixed rate commercial loans, and $61.8 million in variable rate commercial loans, with an additional $260.3 million in floating rate loans priced currently at market rates. Within the following 24-36 months, $214.4 million in fixed rate commercial loans are scheduled to reprice and an additional $87.3 million in variable rate commercial loans are scheduled to reprice, representing 20% of the current loan portfolio. In the near term, the Company’s efforts to attain appropriate yields on new originations and the repricing of the commercial loan portfolio are expected to provide continued improvement in loan yields.

On a linked quarter basis, interest expense increased $718 thousand, or 5%, to $15.0 million for the third quarter of 2024 compared to the quarter ended June 30, 2024, and increased $926 thousand, or 7%, compared to the year ago quarter. Interest expense on other borrowed funds for the quarter ended September 30, 2024 decreased $587 thousand, or 51%, to $563 thousand from $1.2 million, for the quarter ended June 30, 2024, as the Company reduced its reliance on wholesale funding. Interest expense on deposits increased $1.3 million to $14.2 million for the three months ended September 30, 2024 compared to the three months ended June 30, 2024, reflecting the increase in average balances of non-maturity deposits during the third quarter of 2024. The cost of interest-bearing liabilities for the third quarter of 2024 was 3.80% compared to 3.74% for the second quarter of 2024, an increase of 6 basis points compared to an increase of 38 basis points from 3.42% for the year ago quarter, demonstrating the Company’s ability to slow the increase of funding costs during 2024. As a result of the Federal Open Market Committee decision to cut the federal funds rate by 0.50% on September 18, 2024, the Company has decreased interest rates on its various deposit products, the full impact of which will be reflected in the fourth quarter of 2024.

Net interest income for the nine months ended September 30, 2024 and 2023 was $40.7 million and $41.7 million, respectively, a decrease of $1.1 million, or 3%, year-over-year. Interest income increased $4.1 million, or 5%, to $84.0 million for the nine months ended September 30, 2024 as compared to $80.0 million for the comparable 2023 period. Interest expense totaled $43.4 million for the nine months ended September 30, 2024, an increase of $5.1 million, compared to $38.2 million for the nine months ended September 30, 2023. The Company’s net interest margin for the nine months ended September 30, 2024 increased to 2.57% compared to 2.53% for the year-ago nine month period of 2023.

Noninterest income for the three months ended September 30, 2024 totaled $815 thousand compared $225 thousand for the three months ended September 30, 2023 and $871 thousand for the three months ended June 30, 2024.

Fee income from loans was $54 thousand for the quarter ended September 30, 2024, compared to $107 thousand for the third quarter of 2023, which included income from back-to-back loan swap transactions entered into during the third quarter of 2023. Service charges on deposit accounts totaled $301 thousand for the third quarter of 2024, compared to $284 thousand for the year ago quarter, and $279 thousand for the three months ended June 30, 2024. Income from bank-owned life insurance decreased $303 thousand to $70 thousand for the three months ended September 30, 2024, compared to $373 thousand for the same period of 2023, a direct result of the surrendered BOLI that occurred during the first quarter of 2024. As previously mentioned, income from the Company’s minority interest in ACM totaled $278 thousand for the three months ended September 30, 2024, compared to a loss of $650 thousand for the same period of 2023, and compared to income of $351 thousand for the linked quarter ended June 30, 2024.

For the year-to-date period ended September 30, 2024, the Company recorded noninterest income totaling $2.1 million, compared to a loss of $3.5 million for the nine months ended September 30, 2023, which was primarily associated with its securities sales transaction executed during the first quarter of 2023.

Noninterest expense totaled $9.2 million for the quarter ended September 30, 2024, an increase of $148 thousand, or 2%, compared to $9.0 million for the year ago quarter ended September 30, 2023. On a linked quarter basis, noninterest expense increased $200 thousand, or 2%, from $9.0 million for the three months ended June 30, 2024. The increase in noninterest expense during the third quarter of 2024 as compared to the linked quarter was primarily related to an increase in incentive accruals recorded during the third quarter of 2024. Compared to the year ago quarter, salaries and benefits expense decreased $414 thousand, or 8%, for the three months ended September 30, 2024, primarily as a result of reduced staffing and process improvement through the use of technology. Full-time equivalent employees have decreased from 126 at September 30, 2023, to 118 at December 31, 2023 to 111 at September 30, 2024, which includes vacancies that are in the process of being filled.

Occupancy expense decreased $82 thousand to $465 thousand for the three months ended September 30, 2024 compared to the year ago quarter ended September 30, 2023, primarily as a result of the office space reduction efforts completed during 2023. Internet banking and software expense increased $46 thousand to $706 thousand for the third quarter of 2024 compared to the quarter ended September 30, 2023, primarily as a result of the implementation of enhanced customer software solutions. Other operating expenses totaled $1.6 million for third quarter of 2024 compared to $1.2 million for the year ago quarter ended September 30, 2023, an increase of $456 thousand, which was primarily a result of loan workout expenses that were collected by the Bank during the third quarter of 2023. The Company continues to identify and assess opportunities to reduce operating expenses.

For the nine months ended September 30, 2024 and 2023, noninterest expense was $26.8 million and $27.3 million, respectively, a decrease of $444 thousand, or 2%, primarily as a result of the aforementioned decreases in salaries and benefits expenses and occupancy expense.

The efficiency ratio for core bank operating earnings (non-GAAP), which excludes the 2023 losses on the sale of available-for-sale investment securities, for the quarters ended September 30, 2024, June 30, 2024, and September 30, 2023, was 61.2%, 61.9%, and 66.7%, respectively. For the nine months ended September 30, 2024 and 2023, the efficiency ratio for core bank operating earnings (non-GAAP), excluding 2023 losses on the sale of available-for-sale investment securities, was 62.7% and 63.7%, respectively. A reconciliation of the aforementioned efficiency ratio, a non-GAAP financial measure, can be found in the tables below.

The Company recorded a provision for income taxes of $1.4 million and $1.2 million for the three months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024 and 2023, provision for income taxes was $5.8 million and $1.9 million, respectively. The year-to-date 2024 period includes an additional $2.4 million which is associated with the Company surrendering its BOLI policies during the first quarter of 2024.

About FVCBankcorp, Inc.

FVCBankcorp, Inc. is the holding company for FVCbank, a wholly-owned subsidiary that commenced operations in November 2007. FVCbank is a $2.29 billion asset-sized Virginia-chartered community bank serving the banking needs of commercial businesses, nonprofit organizations, professional service entities, their owners and employees located in the greater Baltimore and Washington, D.C. metropolitan areas. FVCbank is based in Fairfax, Virginia, and has 8 full-service offices in Arlington, Fairfax, Manassas, Reston and Springfield, Virginia, Washington, D.C., and Baltimore, and Bethesda, Maryland.

For more information about the Company, please visit the Investor Relations page of FVCBankcorp, Inc.’s website, www.fvcbank.com.

Cautionary Note About Forward-Looking Statements

This press release may contain statements relating to future events or future results of the Company that are considered “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. The following factors, among others, could cause our financial performance to differ materially from that expressed in such forward-looking statements: general business and economic conditions, including higher inflation and its impacts, nationally or in the markets that the Company serves could adversely affect, among other things, real estate valuations, unemployment levels, the ability of businesses to remain viable, consumer and business confidence, and consumer or business spending, which could lead to decreases in demand for loans, deposits, and other financial services that the Company provides and increases in loan delinquencies and defaults; the impact of the interest rate environment on our business, financial condition and results of operation, and its impact on the composition and costs of deposits, loan demand, and the values and liquidity of loan collateral, securities, and interest sensitive assets and liabilities; changes in the Company’s liquidity requirements could be adversely affected by changes in its assets and liabilities; changes in the assumptions underlying the establishment of reserves for possible credit losses and the possibility that future credit losses may be higher than currently expected; changes in market conditions, specifically declines in the commercial and residential real estate market, volatility and disruption of the capital and credit markets, and soundness of other financial institutions the Company does business with; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetary fluctuations; the Company’s investment securities portfolio is subject to credit risk, market risk, and liquidity risk as well as changes in the estimates used to value the securities in the portfolio; declines in the Company’s common stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause us to record a noncash impairment charge to earnings in future periods; geopolitical conditions, including acts or threats of terrorism, or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; the occurrence of significant natural disasters, including severe weather conditions, floods, health related issues or emergencies, and other catastrophic events; the management of risks inherent in the Company’s real estate loan portfolio, and the risk of a prolonged downturn in the real estate market, which could impair the value of loan collateral and the ability to sell collateral upon any foreclosure; the impact of changes in bank regulatory conditions, including laws, regulations and policies concerning capital requirements, deposit insurance premiums, taxes, securities, and the application thereof by regulatory bodies; the effect of changes in accounting policies and practices, as may be adopted from time to time by bank regulatory agencies, the Securities and Exchange Commission (the “SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setting bodies; competitive pressures among financial services companies, including the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; the effect of acquisitions and partnerships the Company may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions; the Company’s involvement, from time to time, in legal proceedings and examination and remedial actions by regulators; and potential exposure to fraud, negligence, computer theft and cyber-crime, and the Company’s ability to maintain the security of its data processing and information technology systems. The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, including those discussed in the section entitled “Risk Factors,” and in the Company’s other periodic and current reports filed with the SEC. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on our forward-looking information and statements. We will not update the forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict their occurrence or how they will affect the Company’s operations, financial condition or results of operations.

FVCBankcorp, Inc.
Selected Financial Data
(Dollars in thousands, except share data and per share data)
(Unaudited)
	At or For the Three Months Ended,								For the Nine Months Ended,									At or For the Three Months Ended,
	September 30, 2024				September 30, 2023				September 30, 2024					September 30, 2023				June 30, 2024				December 31, 2023
Selected Balances
Total assets	$	2,293,282			$	2,305,472												$	2,299,194			$	2,190,558
Total investment securities		165,296				216,410													162,428				171,859
Total loans, net of deferred fees		1,874,946				1,849,513													1,886,929				1,828,564
Allowance for credit losses on loans		(19,067	)			(18,849	)												(19,208	)			(18,871	)
Total deposits		1,960,767				1,995,971													1,968,752				1,845,292
Subordinated debt		19,666				19,606													19,652				19,620
Other borrowings		57,000				50,000													57,000				85,000
Reserve for unfunded commitments		510				673													506				602
Total stockholders’ equity		230,830				211,246													226,491				217,117
Summary Results of Operations
Interest income	$	29,233			$	27,427			$	84,032				$	79,964			$	27,972			$	26,651
Interest expense		15,019				14,092				43,356					38,227				14,301				13,992
Net interest income		14,214				13,335				40,676					41,737				13,671				12,659
Provision for credit losses		(200	)			(729	)			6					132				206				—
Net interest income after provision for credit losses		14,414				14,064				40,670					41,605				13,464				12,659
Noninterest income - loan fees, service charges and other		467				502				1,329					1,445				454				420
Noninterest income - bank owned life		70				373				326					1,067				66				385
Noninterest income (loss) on minority membership interest		278				(650	)			426					(1,431	)			351				321
Noninterest loss on sale of available-for-sale investment securities		- -				—				- -					(4,592	)			—				(10,985	)
Noninterest expense		9,196				9,048				26,817					27,261				8,996				9,402
Income (Loss) before taxes		6,033				5,241				15,934					10,833				5,340				(6,602	)
Income tax expense (benefit)		1,364				1,202				5,770					1,941				1,185				(1,531	)
Net income (loss)		4,669				4,039				10,164					8,892				4,155				(5,071	)
Per Share Data
Net income (loss), basic	$	0.26			$	0.23			$	0.56				$	0.50			$	0.23			$	(0.28	)
Net income (loss), diluted	$	0.25			$	0.22			$	0.55				$	0.49			$	0.23			$	(0.28	)
Book value	$	12.68			$	11.87												$	12.45			$	12.19
Tangible book value (1)	$	12.27			$	11.44												$	12.04			$	11.77
Tangible book value, excluding accumulated other comprehensive losses (1)	$	13.52			$	13.39												$	13.26			$	13.12
Shares outstanding		18,204,455				17,802,173													18,186,147				17,806,995
Selected Ratios
Net interest margin (2)		2.64	%			2.39	%			2.57	%				2.53	%			2.59	%			2.37	%
Return on average assets (2)		0.85	%			0.70	%			0.62	%				0.52	%			0.77	%			(0.92	)%
Return on average equity (2)		8.15	%			7.57	%			6.04	%				5.68	%			7.42	%			(9.51	)%
Efficiency (3)		61.19	%			66.73	%			62.72	%				71.32	%			61.86	%			NM
Loans, net of deferred fees to total deposits		95.62	%			92.66	%												95.84	%			99.09	%
Noninterest-bearing deposits to total		18.21	%			21.39	%												18.99	%			21.50	%
Reconciliation of Net Income (GAAP) to Commercial Bank Operating Earnings (Non-GAAP)(4)
GAAP net income (loss) reported above	$	4,669			$	4,039			$	10,164				$	8,892			$	4,155			$	(5,071	)
Add: Loss on sale of available-for-sale investment securities		—				—				—					4,592				—				10,985
Add: Non-recurring tax and 10% modified endowment contract penalty on early surrender of BOLI policies		—				—				2,386					—				—				—
Add: Office space reduction and severance		—				—				—					—				—				336
Subtract: Non-recurring valuation adjustment of minority investment		—				—									—				—				(1,258	)
Subtract: provision for income taxes associated with non-GAAP adjustments		—				—				—					(1,010	)			—				(2,214	)
Adjusted Net Income, core bank operating earnings (non-GAAP)	$	4,669			$	4,039			$	12,550				$	12,474			$	4,155			$	2,778
Adjusted Earnings per share - basic (non-GAAP core bank operating earnings)	$	0.26			$	0.23			$	0.70				$	0.70			$	0.23			$	0.16
Adjusted Earnings per share - diluted (non-GAAP core bank operating earnings)	$	0.25			$	0.22			$	0.68				$	0.69			$	0.23			$	0.15
Adjusted Return on average assets (non-GAAP core bank operating earnings)		0.85	%			0.70	%			0.77	%				0.73	%			0.77	%			0.50	%
Adjusted Return on average equity (non-GAAP core bank operating earnings)		8.15	%			7.57	%			7.46	%				7.97	%			7.42	%			5.21	%
Adjusted Efficiency ratio (non-GAAP core bank operating earnings)(3)		61.19	%			66.73	%			62.72	%				63.67	%			61.86	%			65.77	%
Capital Ratios - Bank
Tangible common equity (to tangible assets)		10.21	%			9.40	%												9.99	%			10.12	%
Total risk-based capital (to risk weighted		14.52	%			13.93	%												14.13	%			13.83	%
Common equity tier 1 capital (to risk weighted assets)		13.48	%			12.92	%												13.09	%			12.80	%
Tier 1 leverage (to average assets)		11.49	%			10.62	%												11.31	%			10.77	%
Asset Quality
Nonperforming loans	$	3,556			$	1,510												$	3,187			$	1,829
Nonperforming loans to total assets		0.16	%			0.07	%												0.13	%			0.08	%
Nonperforming assets to total assets		0.16	%			0.07	%												0.13	%			0.08	%
Allowance for credit losses on loans to loans		1.02	%			1.06	%												1.02	%			1.03	%
Allowance for credit losses on to nonperforming loans		536.19	%			1292.85	%												602.70	%			1031.77	%
Net (recoveries ) charge-offs	$	(63	)		$	(7	)		$	(68	)			$	326			$	(5	)		$	49
Net charge-offs (recoveries) to average loans (2)		(0.01	)%			—	%			(0.01	)%				0.02	%			—	%			0.01	%
Selected Average Balances
Total assets	$	2,187,583			$	2,302,870			$	2,172,666				$	2,293,565			$	2,170,786			$	2,210,366
Total earning assets		2,142,155				2,214,923				2,116,436					2,207,797				2,123,431				2,123,455
Total loans, net of deferred fees		1,879,152				1,868,819				1,867,503					1,856,008				1,882,342				1,825,472
Total deposits		1,855,513				2,033,941				1,813,794					1,941,387				1,798,734				1,836,826
Other Data
Noninterest-bearing deposits	$	357,027			$	427,036												$	373,848			$	396,724
Interest-bearing checking, savings and money market		1,107,335				904,639													1,070,360				896,969
Time deposits		246,527				381,770													274,684				306,349
Wholesale deposits		249,876				282,526													249,860				245,250

(1) Non-GAAP Reconciliation
(Dollars in thousands, except per share data)
Total shareholders’ equity	$	230,830			$	211,246							$	226,491			$	217,117
Less: goodwill and intangibles, net		(7,457	)			(7,632	)							(7,497	)			(7,585	)
Tangible Common Equity	$	223,373			$	203,614							$	218,994			$	209,532
Less: Accumulated Other Comprehensive Income (Loss) ("AOCI")		(22,721	)			(34,834	)							(22,152	)			(24,160	)
Tangible Common Equity excluding AOCI	$	246,094			$	238,448							$	241,146			$	233,692
Book value per common share	$	12.68				11.87							$	12.45			$	12.19
Less: intangible book value per common share		(0.41	)			(0.43	)							(0.41	)			(0.42	)
Tangible book value per common share	$	12.27			$	11.44							$	12.04			$	11.77
Less: AOCI (loss) per common share		(1.25	)			(1.95	)							(1.22	)			(1.35	)
Tangible book value per common share, excluding AOCI	$	13.52			$	13.39							$	13.26			$	13.12

(2)		Annualized.
(3)		Efficiency ratio is calculated as noninterest expense divided by the sum of net interest income and noninterest income.
(4)		Some of the financial measures discussed throughout the press release are “non-GAAP financial measures.” In accordance with SEC rules, the Company classifies a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP in our consolidated statements of income, condition, or statements of cash flows.

FVCBankcorp, Inc.
Summary Consolidated Statements of Condition
(Dollars in thousands)
(Unaudited)
		September 30, 2024				June 30, 2024				% Change Current Quarter			December 31, 2023				September 30, 2023				% Change From Year Ago
Cash and due from banks		$	10,051			$	10,226			(1.7	)%		$	8,042			$	7,560			33.0	%
Interest-bearing deposits at other financial institutions			167,575				154,359			8.6	%			52,480				89,440			87.4	%
Investment securities			165,296				162,429			1.8	%			171,859				216,410			(23.6	)%
Restricted stock, at cost			8,186				8,186			—	%			9,488				7,745			5.7	%
Loans, net of fees:
Commercial real estate			1,062,978				1,083,481			(1.9	)%			1,091,633				1,097,726			(3.2	)%
Commercial and industrial			288,821				268,921			7.4	%			216,367				215,764			33.9	%
Commercial construction			173,806				164,736			5.5	%			147,998				154,559			12.5	%
Consumer real estate			331,713				339,146			(2.2	)%			363,317				367,345			(9.7	)%
Warehouse facilities			10,777				24,425			(55.9	)%			3,506				7,887			36.6	%
Consumer nonresidential			6,851				6,220			10.1	%			5,743				6,232			9.9	%
Total loans, net of fees			1,874,946				1,886,929			(0.6	)%			1,828,564				1,849,513			1.4	%
Allowance for credit losses on loans			(19,067	)			(19,208	)		(0.7	)%			(18,871	)			(18,849	)		1.2	%
Loans, net			1,855,879				1,867,721			(0.6	)%			1,809,693				1,830,664			1.4	%
Premises and equipment, net			866				915			(5.4	)%			997				1,047			(17.3	)%
Goodwill and intangibles, net			7,457				7,497			(0.5	)%			7,585				7,632			(2.3	)%
Bank owned life insurance (BOLI)			9,148				9,078			0.8	%			56,823				56,438			(83.8	)%
Other assets			68,824				78,783			(12.6	)%			73,591				88,536			(22.3	)%
Total Assets		$	2,293,282			$	2,299,194			(0.3	)%		$	2,190,558			$	2,305,472			(0.5	)%
Deposits:
Noninterest-bearing		$	357,028			$	373,848			(4.5	)%		$	396,724			$	427,036			(16.4	)%
Interest checking			615,839				631,162			(2.4	)%			576,471				651,064			(5.4	)%
Savings and money market			491,496				439,198			11.9	%			320,498				253,575			93.8	%
Time deposits			246,527				274,684			(10.3	)%			306,349				381,770			(35.4	)%
Wholesale deposits			249,877				249,860			—	%			245,250				282,526			(11.6	)%
Total deposits			1,960,767				1,968,752			(0.4	)%			1,845,292				1,995,971			(1.8	)%
Other borrowed funds			57,000				57,000			—	%			85,000				50,000			—	%
Subordinated notes, net of issuance costs			19,666				19,652			0.1	%			19,620				19,606			0.3	%
Reserve for unfunded commitments			510				506			0.8	%			602				673			(24.2	)%
Other liabilities			24,509				26,793			(8.5	)%			22,927				27,976			(12.4	)%
Shareholders’ equity			230,830				226,491			1.9	%			217,117				211,246			9.3	%
Total Liabilities & Shareholders' Equity		$	2,293,282			$	2,299,194			(0.3	)%		$	2,190,558			$	2,305,472			(0.5	)%

FVCBankcorp, Inc.
Summary Consolidated Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
		For the Three Months Ended
		September 30, 2024				June 30, 2024			% Change Current Quarter			September 30, 2023				% Change From Year Ago
Net interest income		$	14,214			$	13,671		4.0	%		$	13,335			6.6	%
Provision for credit losses			(200	)			206		(197.1	)%			(729	)		(72.6	)%
Net interest income after provision for credit losses			14,414				13,465		7.0	%			14,064			2.5	%
Noninterest income:
Fees on loans			54				38		42.1	%			107			(49.5	)%
Service charges on deposit accounts			301				279		7.9	%			284			6.0	%
BOLI income			70				66		6.1	%			373			(81.2	)%
Income (Loss) from minority membership interest			278				351		(20.8	)%			(650	)		142.8	%
Other fee income			112				137		(18.2	)%			111			0.9	%
Total noninterest income			815				871		(6.4	)%			225			262.2	%
Noninterest expense:
Salaries and employee benefits			4,853				4,690		3.5	%			5,267			(7.9	)%
Occupancy expense			465				515		(9.7	)%			547			(15.0	)%
Internet banking and software expense			706				730		(3.3	)%			660			7.0	%
Data processing and network administration			727				667		9.0	%			601			21.0	%
State franchise taxes			589				590		(0.2	)%			584			0.9	%
Professional fees			224				228		(1.8	)%			213			5.2	%
Other operating expense			1,632				1,575		3.6	%			1,176			38.8	%
Total noninterest expense			9,196				8,996		2.2	%			9,048			1.6	%
Net income before income taxes			6,033				5,340		13.0	%			5,241			15.1	%
Income tax expense			1,364				1,185		15.1	%			1,202			13.5	%
Net Income		$	4,669			$	4,155		12.4	%		$	4,039			15.6	%
Earnings per share - basic		$	0.26			$	0.23		13.0	%		$	0.23			14.6	%
Earnings per share - diluted		$	0.25			$	0.23		8.7	%		$	0.22			13.1	%
Weighted-average common shares outstanding - basic			18,195,102				18,000,491		1.1	%			17,800,108			2.2	%
Weighted-average common shares outstanding - diluted			18,433,125				18,341,906		0.5	%			18,274,432			0.9	%

Reconciliation of Net Income (GAAP) to Commercial Bank Operating Earnings (Non-GAAP):
GAAP net income reported above		$	4,669			$	4,155					$	4,039
Subtract: provision for income taxes associated with non-GAAP adjustments			—				—						—
Adjusted Net Income, core bank operating earnings (non-GAAP)		$	4,669			$	4,155					$	4,039
Adjusted Earnings per share - basic (non-GAAP core bank operating earnings)		$	0.26			$	0.23					$	0.23
Adjusted Earnings per share - diluted (non-GAAP core bank operating earnings)		$	0.25			$	0.23					$	0.22
Adjusted Return on average assets (non-GAAP core bank operating earnings)			0.85	%			0.77	%					0.70	%
Adjusted Return on average equity (non-GAAP core bank operating earnings)			8.15	%			7.42	%					7.57	%
Adjusted Efficiency ratio (non-GAAP core bank operating earnings)			61.19	%			61.86	%					66.73	%
Reconciliation of Net Income (GAAP) to Pre-Tax Pre-Provision Income (Non-GAAP):
GAAP net income reported above		$	4,669			$	4,155					$	4,039
Add: Provision for credit losses			(200	)			206						(729	)
Add: Income tax expense			1,364				1,185						1,202
Adjusted Pre-tax pre-provision income		$	5,833			$	5,546					$	4,512
Adjusted Earnings per share - basic (non-GAAP pre-tax pre-provision)		$	0.32			$	0.31					$	0.25
Adjusted Earnings per share - diluted (non-GAAP pre-tax pre-provision)		$	0.32			$	0.30					$	0.25
Adjusted Return on average assets (non-GAAP pre-tax pre-provision)			1.07	%			1.02	%					0.78	%
Adjusted Return on average equity (non-GAAP pre-tax pre-provision)			10.18	%			9.91	%					8.45	%

FVCBankcorp, Inc.
Summary Consolidated Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
		For the Nine Months Ended
		September 30, 2024			September 30, 2023				% Change
Net interest income		$	40,676		$	41,737			(2.5	)%
Provision for credit losses			6			132			(95.5	)%
Net interest income after provision for credit losses			40,670			41,605			(2.2	)%
Noninterest income:
Fees on loans			141			352			(59.9	)%
Service charges on deposit accounts			841			731			15.0	%
BOLI income			326			1,067			(69.4	)%
Income (Loss) from minority membership interest			425			(1,431	)		(129.7	)%
Loss on sale of available-for-sale investment securities			—			(4,592	)		(100.0	)%
Other fee income			348			362			(3.9	)%
Total noninterest income (loss)			2,081			(3,511	)		(159.3	)%
Noninterest expense:
Salaries and employee benefits			14,073			15,374			(8.5	)%
Occupancy expense			1,502			1,785			(15.9	)%
Internet banking and software expense			2,130			1,804			18.1	%
Data processing and network administration			2,029			1,834			10.6	%
State franchise taxes			1,768			1,753			0.9	%
Professional fees			694			644			7.8	%
Other operating expense			4,621			4,067			13.6	%
Total noninterest expense			26,817			27,261			(1.6	)%
Net income before income taxes			15,934			10,833			47.1	%
Income tax expense			5,770			1,941			197.3	%
Net Income		$	10,164		$	8,892			14.3	%
Earnings per share - basic		$	0.56		$	0.50			11.4	%
Earnings per share - diluted		$	0.55		$	0.49			12.6	%
Weighted-average common shares outstanding - basic			18,008,117			17,696,101			1.8	%
Weighted-average common shares outstanding - diluted			18,364,171			18,209,830			0.8	%

Reconciliation of Net Income (GAAP) to Commercial Bank Operating Earnings (Non-GAAP):
GAAP net income reported above		$	10,164			$	8,892
Add: Loss on sale of available-for-sale investment securities			—				4,592
Add: Non-recurring tax and 10% modified endowment contract penalty on early surrender of BOLI policies			2,386				—
Subtract: provision for income taxes associated with non-GAAP adjustments			—				(1,010	)
Adjusted Net Income, core bank operating earnings (non-GAAP)		$	12,550			$	12,474
Adjusted Earnings per share - basic (non-GAAP core bank operating earnings)		$	0.70			$	0.70
Adjusted Earnings per share - diluted (non-GAAP core bank operating earnings)		$	0.68			$	0.69
Adjusted Return on average assets (non-GAAP core bank operating earnings)			0.77	%			0.73	%
Adjusted Return on average equity (non-GAAP core bank operating earnings)			7.46	%			7.97	%
Adjusted Efficiency ratio (non-GAAP core bank operating earnings)			62.72	%			63.67	%
Reconciliation of Net Income (GAAP) to Pre-Tax Pre-Provision Income (Non-GAAP):
GAAP net income reported above		$	10,164			$	8,892
Add: Provision for credit losses			6				132
Add: loss on sale of investment securities			—				4,592
Add: Non-recurring tax and 10% modified endowment contract penalty on early surrender of BOLI policies			2,386				—
(Subtract) Add: Income tax expense			3,384				1,941
Adjusted Pre-tax pre-provision income		$	15,940			$	15,557
Adjusted Earnings per share - basic (non-GAAP pre-tax pre-provision)		$	0.89			$	0.88
Adjusted Earnings per share - diluted (non-GAAP pre-tax pre-provision)		$	0.87			$	0.85
Adjusted Return on average assets (non-GAAP pre-tax pre-provision)			0.98	%			0.90	%
Adjusted Return on average equity (non-GAAP pre-tax pre-provision)			9.47	%			9.93	%

FVCBankcorp, Inc.
Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities
(Dollars in thousands)
(Unaudited)
		For the Three Months Ended
		9/30/2024										6/30/2024										9/30/2023
		Average Balance				Interest Income/Expense			Average Yield			Average Balance				Interest Income/Expense			Average Yield			Average Balance				Interest Income/Expense			Average Yield
Interest-earning assets:
Loans receivable, net of fees (1)
Commercial real estate		$	1,075,258			$	13,969		5.20	%		$	1,087,064			$	13,795		5.08	%		$	1,106,429			$	13,586		4.91	%
Commercial and industrial			268,484				5,558		8.28	%			253,485				5,022		7.92	%			218,815				4,071		7.44	%
Commercial construction			168,155				3,175		7.55	%			162,711				2,918		7.17	%			154,569				2,780		7.19	%
Consumer real estate			334,385				4,047		4.84	%			347,180				4,116		4.74	%			363,713				4,359		4.79	%
Warehouse facilities			26,043				489		7.51	%			26,000				483		7.44	%			19,944				331		6.65	%
Consumer nonresidential			6,827				143		8.38	%			5,902				123		8.34	%			5,349				116		8.67	%
Total loans			1,879,152				27,381		5.83	%			1,882,342				26,457		5.62	%			1,868,819				25,243		5.40	%
Investment securities (2)			205,019				1,050		2.05	%			211,630				1,114		2.10	%			281,382				1,308		1.86	%
Interest-bearing deposits at other financial institutions			57,984				802		5.50	%			29,459				401		5.48	%			64,722				876		5.37	%
Total interest-earning assets			2,142,155			$	29,233		5.46	%			2,123,431			$	27,972		5.27	%			2,214,923			$	27,427		4.95	%
Non-interest earning assets:
Cash and due from banks			7,443										7,553										6,721
Premises and equipment, net			892										979										1,083
Accrued interest and other assets			56,312										57,755										99,575
Allowance for credit losses			(19,219	)									(18,932	)									(19,432	)
Total Assets		$	2,187,583									$	2,170,786									$	2,302,870
Interest-bearing liabilities:
Interest checking		$	620,256			$	5,652		3.62	%		$	549,071			$	4,622		3.39	%		$	641,746			$	5,134		3.17	%
Savings and money market			362,663				3,482		3.82	%			334,627				3,081		3.70	%			240,504				1,544		2.55	%
Time deposits			264,125				2,929		4.41	%			286,910				3,104		4.35	%			359,217				3,550		3.92	%
Wholesale deposits			249,851				2,136		3.40	%			249,846				2,087		3.36	%			366,667				3,571		3.86	%
Total interest-bearing deposits			1,496,895				14,199		3.77	%			1,420,454				12,894		3.65	%			1,608,134				13,799		3.40	%
Other borrowed funds			57,000				563		3.93	%			99,758				1,150		4.63	%			9,141				35		1.53	%
Subordinated notes, net of issuance costs			19,656				257		5.21	%			19,639				257		5.27	%			19,597				259		5.21	%
Total interest-bearing liabilities			1,573,551			$	15,019		3.80	%			1,539,851			$	14,301		3.74	%			1,636,872			$	14,093		3.42	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits			358,618										378,280										425,807
Other liabilities			26,252										28,741										26,681
Shareholders’ equity			229,162										223,914										213,510
Total Liabilities and Shareholders' Equity		$	2,187,583									$	2,170,786									$	2,302,870
Net Interest Margin						$	14,214		2.64	%						$	13,671		2.59	%						$	13,335		2.39	%

(1)		Non-accrual loans are included in average balances.
(2)		The average balances for investment securities includes restricted stock.

FVCBankcorp, Inc.
Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities
(Dollars in thousands)
(Unaudited)
		For the Nine Months Ended
		9/30/2024										9/30/2023
		Average Balance				Interest Income/Expense			Average Yield			Average Balance				Interest Income/Expense			Average Yield
Interest-earning assets:
Loans receivable, net of fees (1)
Commercial real estate		$	1,084,436			$	41,325		5.08	%		$	1,107,935			$	39,807		4.79	%
Commercial and industrial			250,106				14,941		7.97	%			206,447				11,254		7.27	%
Commercial construction			161,159				8,845		7.32	%			154,862				8,233		7.09	%
Consumer real estate			346,771				12,604		4.85	%			356,430				12,648		4.73	%
Warehouse facilities			18,885				1,060		7.48	%			24,272				1,265		6.95	%
Consumer nonresidential			6,146				377		8.18	%			6,062				418		9.20	%
Total loans			1,867,503				79,152		5.65	%			1,856,008				73,625		5.29	%
Investment securities (2)			210,536				3,305		2.09	%			299,078				4,317		1.93	%
Interest-bearing deposits at other financial institutions			38,397				1,575		5.48	%			52,711				2,022		5.13	%
Total interest-earning assets			2,116,436			$	84,032		5.29	%			2,207,797			$	79,964		4.83	%
Non-interest earning assets:
Cash and due from banks			6,982										6,159
Premises and equipment, net			949										1,147
Accrued interest and other assets			67,311										96,985
Allowance for credit losses			(19,012	)									(18,523	)
Total Assets		$	2,172,666									$	2,293,565
Interest-bearing liabilities:
Interest checking		$	556,650			$	14,215		3.41	%		$	564,765			$	11,595		2.74	%
Savings and money market			332,663				9,071		3.64	%			259,308				4,307		2.22	%
Time deposits			283,897				9,240		4.35	%			351,762				9,292		3.53	%
Wholesale deposits			268,295				7,108		3.54	%			332,217				9,398		3.78	%
Total interest-bearing deposits			1,441,505				39,634		3.67	%			1,508,052				34,592		3.07	%
Other borrowed funds			88,082				2,950		4.47	%			98,378				2,862		3.89	%
Subordinated notes, net of issuance costs			19,640				772		5.25	%			19,583				773		5.27	%
Total interest-bearing liabilities			1,549,227			$	43,356		3.74	%			1,626,013			$	38,227		3.14	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits			372,289										433,335
Other liabilities			26,759										25,413
Shareholders’ equity			224,391										208,804
Total Liabilities and Shareholders' Equity		$	2,172,666									$	2,293,565
Net Interest Margin						$	40,676		2.57	%						$	41,737		2.53	%

(1)		Non-accrual loans are included in average balances.
(2)		The average balances for investment securities includes restricted stock.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241022873588/en/

David W. Pijor, Esq., Chairman and Chief Executive Officer

Phone: (703) 436-3802

Email: dpijor@fvcbank.com

Patricia A. Ferrick, President

Phone: (703) 436-3822

Email: pferrick@fvcbank.com

Source: FVCBankcorp, Inc.

FAQ

What were FVCBankcorp's earnings for Q3 2024?

FVCBankcorp reported a net income of $4.7 million, or $0.25 diluted earnings per share, for Q3 2024.

How did FVCBankcorp's net interest margin perform in Q3 2024?

The net interest margin increased by 25 basis points to 2.64% in Q3 2024.

What is FVCBankcorp's total asset value as of September 30, 2024?

FVCBankcorp's total assets were valued at $2.29 billion as of September 30, 2024.

How much did FVCBankcorp's total deposits increase in Q3 2024?

Total deposits increased by 6% to $1.96 billion in Q3 2024.

What is FVCBankcorp's total risk-based capital ratio as of September 30, 2024?

FVCBankcorp's total risk-based capital ratio was 14.52% as of September 30, 2024.