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FVCBankcorp, Inc. Announces 51% Increase in Third Quarter Net Income

Company Release - 10/18/2018 4:01 PM ET

FAIRFAX, Va.--(BUSINESS WIRE)-- FVCBankcorp, Inc. (NASDAQ:FVCB) (the “Company”) today reported third quarter 2018 earnings increased 51% from a year ago to $3.4 million, or $0.27 diluted earnings per share, compared to $2.2 million, or $0.19 diluted earnings per share, for the quarterly period ended September 30, 2018. For the nine months ended September 30, 2018, earnings were $9.5 million, or $0.78 per diluted share, compared to $6.7 million, or $0.59 per diluted share, for the comparable nine month period of 2017. Net income for the three and nine months ended September 30, 2018 include merger-related expenses of $274 thousand and $671 thousand, respectively, associated with the Company’s acquisition of Colombo Bank. Excluding these merger-related expenses, net of tax, net income for the three and nine months ended September 30, 2018 would have been $3.6 million and $10.0 million, respectively. Diluted earnings per share excluding merger-related expenses, net of tax, for the three and nine months ended September 30, 2018 was $0.29 and $0.82, respectively. Results for the three and nine month periods ended September 30, 2018 reflect the new lower federal statutory tax rate.

Return on average assets was 1.18% and return on average equity was 12.23% for the third quarter of 2018. For the comparable September 30, 2017 period, return on average assets was 0.93% and return on average equity was 9.83%. Excluding merger-related expenses, net of tax, return on average assets and return on average equity for the three months ended September 30, 2018 was 1.27% and 13.13%, respectively. For the nine months ended September 30, 2018, return on average assets and return on average equity was 1.15% and 12.09%, respectively. Excluding merger-related expenses, net of tax, return on average assets and return on average equity for the nine months ended September 30, 2018 was 1.22% and 12.81%, respectively.

Selected Highlights

  • During the third quarter, the Company completed a successful initial public offering issuing 1,750,000 shares of common stock raising $31.7 million after offering expenses. This capital raise added approximately 247,000 shares to the Company’s weighted average common shares outstanding, diluting earnings per share for the quarter by $0.01.
  • Total loans, net of deferred fees, increased $151.2 million, or 18%, from September 30, 2017 to September 30, 2018. Asset quality remains strong with nonperforming loans and loans past due 90 days or more as a percentage of total assets being 0.17% at September 30, 2018, compared to 0.31% at September 30, 2017.
  • Total deposits increased $147.1 million, or 17%, from September 30, 2017 to September 30, 2018. Excluding a decrease in wholesale deposits, deposits increased $182.1 million year-over-year, or 24%.
  • Tangible book value per share at September 30, 2018 was $10.81, a 20% increase from $8.98 at September 30, 2017.
  • Quarterly operating earnings, before taxes and merger-related expenses, increased 35% year-over-year.
  • Efficiency ratio for the three months ended September 30, 2018 was 56.0%, and excluding merger-related expenses, was 53.4%.

“Third quarter 2018 earnings demonstrate our continued ability to attract new customer relationships as we completed our IPO and worked to complete our acquisition of Colombo Bank, which closed on October 12, 2018. Our customer centric business model allowed the bank to increase core deposits by 24% year-over-year and our loan portfolio by 18% year-over-year. We are delighted to welcome Colombo’s customers, shareholders, and employees to our bank. With the system conversion behind us, our business development team and 11 full-service branch offices are ready to continue our core growth strategy while providing our high-touch customer service to new and existing customers of FVCbank,” stated David W. Pijor, Chairman and CEO.

Balance Sheet

Total assets increased to $1.18 billion compared to $997.8 million as of September 30, 2018 and 2017, respectively, an increase of $177.7 million, or 18%. Loans receivable, net of deferred fees, totaled $978.3 million as of September 30, 2018, compared to $827.1 million as of September 30, 2017, a year-over-year increase of $151.2 million, or 18%.

Total deposits increased to $994.0 million as of September 30, 2018 compared to $846.9 million as of September 30, 2017, an increase of $147.1 million, or 17%. Noninterest-bearing deposits increased 18% to $211.8 million at September 30, 2018, or 21% of total deposits, compared to $179.0 million at September 30, 2017. Noninterest-bearing deposits at September 30, 2018 decreased $72.6 million from June 30, 2018 as customers moved deposits to interest-bearing deposit products. Core deposits, which include total deposits less wholesale deposits, increased $182.1 million or 24% year-over-year. Wholesale deposits totaled $50.6 million, or 5% of total deposits at September 30, 2018, a decrease of $64.9 million from December 31, 2017 and a decrease of $26.7 million from June 30, 2018. The Company’s increase in core deposits is a result of several promotions in addition to the Company’s success in adding new customer relationships.

Income Statement

Net interest income totaled $9.9 million, an increase of $1.7 million, or 21%, for the quarter ended September 30, 2018, compared to the year ago quarter. The Company’s net interest margin was 3.54% and 3.47% for the quarters ended September 30, 2018 and 2017, respectively. On a linked quarter basis, the margin increased 4 basis points from 3.50% for the three months ended June 30, 2018, a result of increases in yields on earning assets and strong growth in core deposit mix offset by an increase in the cost of funds.

Noninterest income totaled $748 thousand and $353 thousand for the quarters ended September 30, 2018 and 2017, respectively. Fee income from fees on loans, service charges on deposits, and other fee income was $638 thousand, an increase of 186% for the quarter ended September 30, 2018 compared to 2017. Included in loan income are fees from interest rate swaps totaling $395 thousand for the third quarter of 2018. The increase in deposit and other fee income is primarily due to initiatives the Company began during 2017 to enhance fee income through ancillary services designed to assist its clients’ financial needs.

Noninterest expense totaled $5.9 million for the quarter ended September 30, 2018, compared to $4.9 million for the same three-month period of 2017. The increase in noninterest expense year-over-year is primarily attributable to the Company strategically hiring business development officers and back office staff during 2017 to support the Company’s growth plans. As a result, salary and compensation related expenses increased $541 thousand, or 18%, for the quarter ended September 30, 2018, compared to the same three-month period of 2017. In addition, the Company recorded merger-related expenses of $274 thousand for the three months ended September 30, 2018 which contributed to the increase in noninterest expense for the quarter. Professional fees increased slightly year-over-year as a result of implementation costs related to regulatory compliance over the Company’s internal control environment. Increases in data processing and network administration, franchise taxes and other operating expenses for the quarter ended September 30, 2018 compared to the same three-month period of 2017 is primarily growth related. On a linked quarter basis, noninterest expense excluding merger-related expenses increased 5% from the three months ended June 30, 2018. The efficiency ratio for the quarter ended September 30, 2018 was 56.0%, or 53.4% excluding merger-related expenses, a decrease from 57.1% from the year ago quarter.

Asset Quality

Asset quality remains strong as nonperforming loans and loans ninety days or more past due totaled $2.0 million, or 0.17% of total assets. Performing troubled debt restructurings (“TDR”) decreased to $267,000 at September 30, 2018, compared to $4.3 million at September 30, 2017. Nonperforming assets (including TDRs and other real estate owned) to total assets was 0.52% and 0.74% at September 30, 2018 and 2017, respectively. The allowance for loan losses to total loans was 0.88% at September 30, 2018, reflecting the Company’s continued sound credit quality and stable economic environment.

About FVCBankcorp Inc.

FVCBankcorp Inc. is the holding company for FVCbank, a wholly-owned subsidiary of FVCB which commenced operations in November 2007. FVCbank is a $1.17 billion Virginia-chartered community bank serving the banking needs of commercial businesses, nonprofit organizations, professional service entities, their owners and employees located in the greater Washington, D.C., metropolitan and Northern Virginia area. Subsequent to September 30, 2018, FVCbank completed the acquisition of Colombo Bank, with approximately $188.7 million in assets. Locally owned and managed, FVCbank is based in Fairfax, Virginia, and now has 11 full-service offices in Arlington, Ashburn, Fairfax, Manassas, Reston and Springfield, Virginia, Washington D.C., and Baltimore Bethesda, Rockville and Silver Spring, Maryland.

For more information on the Company’s 2018 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 previously disclosed in the “Risk Factors” section included in the Company’s prospectus filed with the Securities and Exchange Commission on September 17, 2018 pursuant to Rule 424(b)(4) under the Securities Act of 1933. 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)
 

 

For the Three Months Ended For the Nine Months Ended

For the Three Months Ended,

September 30, September 30, June 30, December 31,
(Unaudited) (Unaudited) (Unaudited)
  2018     2017     2018     2017     2018     2017  
Selected Balances
Total assets $ 1,175,437 $ 997,756 $ 1,139,449 $ 1,053,224
Total investment securities 116,931 122,877 122,644 121,150
Total loans, net of deferred fees 978,304 827,101 955,641 888,677
Allowance for loan losses (8,576 ) (7,271 ) (8,298 ) (7,725 )
Total deposits 993,986 846,854 1,008,896 928,163
Subordinated debt 24,387 24,307 24,367 24,327
Other borrowings 15,000 27,600 - - -
Total stockholders’ equity 138,776 97,545 103,966 98,283
Summary Results of Operations
Interest income $ 12,873 $ 10,311 $ 36,284 $ 29,501 $ 12,070 $ 10,801
Interest expense 2,995 2,141 8,287 5,845 2,714 2,350
Net interest income 9,878 8,170 27,997 23,656 9,356 8,451
Provision for loan losses 351 250 990 765 281 435
Net interest income after provision for loan losses 9,527 7,920 27,007 22,891 9,075 8,016
Noninterest income - loan fees, service charges and other 638 223 1,166 630 255 252
Noninterest income - bank owned life insurance 110 115 329 740 108 114
Noninterest income - gains on securities sold - - 15 - - 134 - - 30

Noninterest income - gains on foreclosure of other real estate owned

- - - - - - - - - - 1,076
Noninterest expense 5,948 4,861 17,030 14,424 5,822 4,925
Income before taxes 4,327 3,412 11,472 9,971 3,616 4,563
Income tax expense 942 1,177 2,013 3,287 539 3,558
Net income 3,385 2,235 9,459 6,684 3,077 1,005
Per Share Data (2)
Net income, basic $ 0.30 $ 0.21 $ 0.85 $ 0.65 $ 0.28 $ 0.09
Net income, diluted $ 0.27 $ 0.19 $ 0.78 $ 0.60 $ 0.26 $ 0.08
Book value $ 10.82 $ 8.98 $ 9.39 $ 9.04
Tangible Book value $ 10.81 $ 8.98 $ 9.38 $ 9.03
Shares outstanding 12,831,040 10,856,704 11,076,266 10,868,984
Selected Ratios
Net interest margin (3) 3.54 % 3.46 % 3.48 % 3.44 % 3.50 % 3.43 %
Return on average assets (3) 1.18 % 0.93 % 1.15 % 0.95 % 1.13 % 0.40 %
Return on average equity (3) 12.23 % 9.83 % 12.09 % 10.40 % 12.02 % 4.06 %
Efficiency (1) 55.98 % 57.13 % 57.74 % 57.64 % 59.90 % 55.86 %
Loans, net of deferred fees, to total deposits 98.42 % 97.67 % 94.72 % 95.75 %
Noninterest-bearing deposits to total deposits 21.31 % 21.14 % 28.19 % 18.90 %
Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP) (4)
Net income (from above) $ 3,385 $ 2,235 $ 9,459 $ 6,684 $ 3,077 $ 1,005
Add: Merger and acquisition expense 274 - - 671 - - 397 - -
Subtract: provision for income taxes associated with merger and acquisition expense   (24 )   - -     (107 )   - -     (83 )   - -  
NET INCOME, excluding above merger and acquisition charges $ 3,635   $ 2,235   $ 10,023   $ 6,684   $ 3,391   $ 1,005  
Net income, diluted, on an operating basis $ 0.29 $ 0.19 $ 0.82 $ 0.60 $ 0.28 $ 0.08
Return on average assets (non-GAAP operating earnings) 1.27 % 0.93 % 1.22 % 0.95 % 1.24 % 0.40 %
Return on average equity (non-GAAP operating earnings) 13.13 % 9.83 % 12.81 % 10.40 % 13.25 % 4.06 %
Capital Ratios - Bank
Tangible common equity (to tangible assets) 11.80 % 9.77 % 9.12 % 9.33 %
Total capital (to risk weighted assets) 13.88 % 13.68 % 12.77 % 12.83 %
Common equity tier 1 capital (to risk weighted assets) 13.08 % 12.89 % 11.98 % 12.05 %
Tier 1 capital (to risk weighted assets) 13.08 % 12.89 % 11.98 % 12.05 %
Tier 1 leverage (to average assets) 12.32 % 12.22 % 11.58 % 11.79 %
Asset Quality
Nonperforming loans and loans 90+ past due $ 2,021 $ 3,079 $ 938 $ 789
Performing troubled debt restructurings (TDRs) 267 4,348 1,600 1,657
Other real estate owned 3,866 - - 3,866 3,866
Nonperforming loans and loans 90+ past due to total assets (excl. TDRs) 0.17 % 0.31 % 0.08 % 0.07 %
Nonperforming assets to total assets 0.50 % 0.31 % 0.42 % 0.44 %
Nonperforming assets (including TDRs) to total assets 0.52 % 0.74 % 0.56 % 0.58 %
Allowance for loan losses to loans 0.88 % 0.88 % 0.87 % 0.87 %
Allowance for loan losses to nonperforming loans 424.34 % 236.15 % 884.65 % 979.09 %
Net charge-offs (recovery) $ 73 $ (9 ) $ 139 $ (54 ) $ 85 $ (19 )
Net charge-offs (recovery) to average loans (3) 0.03 % (0.00 )% 0.01 % (0.01 )% 0.04 % (0.01 )%
Selected Average Balances
Total assets $ 1,142,642 $ 964,418 $ 1,097,667 $ 936,624 $ 1,092,950 $ 1,013,070
Total earning assets 1,116,154 943,979 1,073,175 917,677 1,069,035 986,648
Total loans, net of deferred fees 959,992 811,901 928,190 789,704 930,133 851,123
Total deposits 1,002,079 838,328 960,964 805,406 958,304 878,482
Other Data
Noninterest-bearing deposits $ 211,808 $ 178,989 $ 284,452 $ 175,446
Interest-bearing checking, savings and money market 485,319 349,804 396,667 379,101
Time deposits 246,272 232,526 250,492 258,127
Wholesale deposits 50,587 85,535 77,285 115,489
 
(1) Efficiency ratio is calculated as noninterest expense divided by the sum of net interest income and noninterest income, excluding gains on sales of investment securities and other real estate owned.
(2) All per share data calculations have been retroactively adjusted for the five-for-four stock split declared September 2017.
(3) Annualized.
(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 statements of income, balance sheets or statements of cash flows.
           
FVCBankcorp, Inc.
Summary Consolidated Statements of Condition
(Dollars in thousands)
(Unaudited)
 
% Change % Change
Current From
  9/30/2018     6/30/2018   Quarter   12/31/2017     9/30/2017   Year Ago
 
Cash and due from banks $ 8,939 $ 6,309 41.7 % $ 7,428 $ 7,144 25.1 %

Interest-bearing deposits at other financial institutions

46,396 30,734 51.0 % 15,139 22,126 109.7 %
Investment securities 113,131 118,844 -4.8 % 117,712 118,270 -4.3 %
Restricted stock, at cost 3,800 3,800 0.0 % 3,438 4,607 -17.5 %
Loans, net of fees:
Commercial real estate 592,083 572,039 3.5 % 526,065 516,787 14.6 %
Commercial and industrial 108,331 110,359 -1.8 % 98,150 89,267 21.4 %
Commercial construction 144,140 138,973 3.7 % 123,444 100,583 43.3 %
Consumer residential 107,207 106,747 0.4 % 108,786 104,259 2.8 %
Consumer nonresidential   26,543     27,523   -3.6 %   32,232     16,205   63.8 %
Total loans, net of fees 978,304 955,641 2.4 % 888,677 827,101 18.3 %
Allowance for loan losses   (8,576 )   (8,298 ) 3.4 %   (7,725 )   (7,271 ) 17.9 %
Loans, net 969,728 947,343 2.4 % 880,952 819,830 18.3 %
 
Premises and equipment, net 1,420 1,401 1.4 % 1,236 1,254 13.2 %
Bank owned life insurance (BOLI) 16,297 16,187 0.7 % 15,969 15,854 2.8 %
Other real estate owned 3,866 3,866 0.0 % 3,866 - - 100.0 %
Other assets   11,860     10,965   8.2 %   7,484     8,671   36.8 %
 
Total Assets $ 1,175,437   $ 1,139,449   3.2 % $ 1,053,224   $ 997,756   17.8 %
 
Deposits:
Noninterest-bearing $ 211,808 $ 284,452 -25.5 % $ 175,446 $ 178,989 18.3 %
Interest-bearing checking 276,197 222,522 24.1 % 185,528 182,458 51.4 %
Savings and money market 209,122 174,145 20.1 % 193,573 167,346 25.0 %
Time deposits 246,272 250,492 -1.7 % 258,127 232,526 5.9 %
Wholesale deposits   50,587     77,285   -34.5 %   115,489     85,535   -40.9 %
Total deposits 993,986 1,008,896 -1.5 % 928,163 846,854 17.4 %
 
Other borrowed funds 15,000 - - 100.0 % - - 27,600 -45.7 %

Subordinated notes, net of issuance costs

24,387 24,367 0.1 % 24,327 24,307 0.3 %
Other liabilities 3,288 2,220 48.1 % 2,451 1,450 126.8 %
 
Stockholders’ equity   138,776     103,966   33.5 %   98,283     97,545   42.3 %
 
Total Liabilities & Stockholders’ Equity $ 1,175,437   $ 1,139,449   3.2 % $ 1,053,224   $ 997,756   17.8 %
             
FVCBankcorp, Inc.
Summary Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
 
For the Three Months Ended
% Change % Change
Current From
  9/30/2018     6/30/2018   Quarter   9/30/2017   Year Ago
 
Net interest income $ 9,878 $ 9,356 5.6 % $ 8,170 20.9 %
Provision for loan losses   351     281   24.9 %   250   40.4 %
Net interest income after provision for loan losses   9,527     9,075   5.0 %   7,920   20.3 %
 
Noninterest income:
Fees on Loans 411 4 10,175.0 % 19 2,063.2 %
Service charges on deposit accounts 158 152 3.9 % 146 8.2 %
Gains on sale of securities available-for-sale - - - - 0.0 % 15 -100.0 %
BOLI income 110 108 1.9 % 115 -4.3 %
Other fee income   69     99   -30.3 %   58   19.0 %
Total noninterest income   748     363   106.1 %   353   111.9 %
 
Noninterest expense:
Salaries and employee benefits 3,491 3,324 5.0 % 2,950 18.3 %
Occupancy and equipment expense 591 580 1.9 % 559 5.7 %
Data processing and network administration 321 285 12.6 % 275 16.7 %
State franchise taxes 296 296 0.0 % 252 17.5 %
Professional fees 147 132 11.4 % 123 19.5 %
Merger and acquisition expense 274 397 -31.0 % - - 100.0 %
Other operating expense   828     808   2.5 %   702   17.9 %
Total non-interest expense   5,948     5,822   2.2 %   4,861   22.4 %
Net income before income taxes 4,327 3,616 19.7 % 3,412 26.8 %
Income tax expense   942     539   74.8 %   1,177   -20.0 %
Net Income $ 3,385   $ 3,077   10.0 % $ 2,235   51.5 %
 
Earnings per share - basic $ 0.30   $ 0.28   10.7 % $ 0.21   42.9 %
Earnings per share - diluted $ 0.27   $ 0.26   11.5 % $ 0.19   42.1 %
Weighted-average common shares outstanding - basic   11,324,965     11,023,775   2.7 %   10,479,282   8.1 %
Weighted-average common shares outstanding - diluted   12,470,384     12,063,423   3.4 %   11,584,218   7.6 %
 

Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP):

GAAP net income reported above $ 3,385 $ 3,077
Add: Merger and acquisition expense above 274 397
Subtract: provision for income taxes associated with merger and acquisition expense   (24 )   (83 )
NET INCOME, excluding above merger and acquisition charges $ 3,635   $ 3,391  
Earnings per share - basic (excluding merger and acquisition charges) $ 0.32   $ 0.31  
Earnings per share - diluted (excluding merger and acquisition charges) $ 0.29   $ 0.28  
 
Return on average assets (non-GAAP operating earnings) 1.27 % 1.24 %
Return on average equity (non-GAAP operating earnings) 13.13 % 13.23 %
Efficiency ratio (non-GAAP operating earnings) 53.40 % 55.82 %
         
FVCBankcorp, Inc.
Summary Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
 
For the Nine Months Ended
% Change
From
  9/30/2018     9/30/2017   Year Ago
 
Net interest income $ 27,997 $ 23,656 18.4 %
Provision for loan losses   990     765   29.4 %
Net interest income after provision for loan losses   27,007     22,891   18.0 %
 
Noninterest income:
Fees on Loans 473 46 928.3 %
Service charges on deposit accounts 452 402 12.4 %
Gains on sale of securities available-for-sale - - 134 -100.0 %
BOLI income 329 740 -55.5 %
Other fee income   241     182   32.4 %
Total noninterest income   1,495     1,504   -0.6 %
 
Noninterest expense:
Salaries and employee benefits 10,000 8,798 13.7 %
Occupancy and equipment expense 1,743 1,672 4.2 %
Data processing and network administration 886 772 14.8 %
State franchise taxes 888 787 12.8 %
Professional fees 434 352 23.3 %
Merger and acquisition expense 671 - - 100.0 %
Other operating expense   2,408     2,043   17.9 %
Total non-interest expense   17,030     14,424   18.1 %
Net income before income taxes 11,472 9,971 15.1 %
Income tax expense   2,013     3,287   -38.8 %
Net income $ 9,459   $ 6,684   41.5 %
 
Earnings per share - basic $ 0.85   $ 0.65  

30.8

%
Earnings per share - diluted $ 0.78   $ 0.60  

30.0

%
Weighted-average common shares outstanding - basic   11,094,353     10,288,055   7.8 %
Weighted-average common shares outstanding - diluted   12,195,620     11,231,897   8.6 %
 

Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP):

GAAP net income reported above $ 9,459
Add: Merger and acquisition expense above 671
Subtract: provision for income taxes associated with merger and acquisition expense   (107 )
NET INCOME, excluding above merger and acquisition charges $ 10,023  
Earnings per share - basic (excluding merger and acquisition charges) $ 0.90  
Earnings per share - diluted (excluding merger and acquisition charges) $ 0.82  
 
Return on average assets (non-GAAP operating earnings) 1.22 %
Return on average equity (non-GAAP operating earnings) 12.81 %
Efficiency ratio (non-GAAP operating earnings) 55.47 %
           
FVCBankcorp, Inc.
Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities
(Dollars in thousands)
(Unaudited)
 
For the Three Months Ended
9/30/2018 6/30/2018 9/30/2017
Average Average Average Average Average Average
Balance Yield Balance Yield Balance Yield
Interest-earning assets:
Loans receivable, net of fees (1)
Commercial real estate $ 575,738 4.72 % $ 564,251 4.59 % $ 514,043 4.73 %
Commercial and industrial 110,241 5.81 % 105,175 5.65 % 85,915 5.14 %
Commercial construction 140,213 5.39 % 123,262 5.32 % 91,445 4.87 %
Consumer residential 106,922 4.72 % 108,451 4.51 % 103,876 4.44 %
Consumer nonresidential   26,878   6.50 %   28,994   6.40 %   16,622   3.94 %
Total loans 959,992 4.99 % 930,133 4.86 % 811,901 4.73 %
 
Investment securities (2)(3) 120,174 2.45 % 123,488 2.43 % 119,301 2.31 %

Interest-bearing deposits at other financial institutions

  35,988   1.82 %   15,414   0.83 %   12,777   0.71 %
Total interest-earning assets 1,116,154 4.62 % 1,069,035 4.52 % 943,979 4.37 %
 
Non-interest earning assets:
Cash and due from banks 2,386 2,348 1,937
Premises and equipment, net 1,416 1,394 1,337

Accrued interest and other assets

31,107 28,361 24,290
Allowance for loan losses   (8,421 )   (8,188 )   (7,125 )
 
Total Assets $ 1,142,642   $ 1,092,950   $ 964,418  
 
Interest-bearing liabilities:
Interest checking $ 251,299 1.10 % $ 195,130 1.00 % $ 195,721 0.85 %
Savings and money market 190,176 1.18 % 194,327 1.03 % 157,448 0.76 %
Time deposits 249,508 1.62 % 249,664 1.47 % 228,588 1.34 %
Wholesale deposits   65,354   1.84 %   91,028   1.70 %   81,465   1.09 %
Total interest-bearing deposits 756,337 1.36 % 730,149 1.26 % 663,222 1.03 %
 
Other borrowed funds 2,799 2.25 % 6,627 2.00 % 8,083 1.43 %

Subordinated notes, net of issuance costs

  24,374   6.43 %   24,354   6.51 %   24,294   6.45 %
Total interest-bearing liabilities 783,510 1.52 % 761,130 1.43 % 695,599 1.23 %
 
Noninterest-bearing liabilities:
Noninterest-bearing deposits 245,742 228,155 175,106
Other liabilities 2,662 1,132 2,765
 
Stockholders’ equity   110,728     102,533     90,948  
 
Total Liabilities and Stockholders' Equity $ 1,142,642   $ 1,092,950   $ 964,418  
 
Net Interest Margin (2) 3.54 % 3.50 % 3.46 %
 
(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 21% for 2018 and 34.5% for 2017.
(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 Nine Months Ended
9/30/2018 9/30/2017
Average Average Average Average
Balance Yield Balance Yield
Interest-earning assets:
Loans receivable, net of fees (1)
Commercial real estate $ 559,578 4.65 % $ 493,392 4.65 %
Commercial and industrial 103,395 5.55 % 92,127 4.89 %
Commercial construction 128,618 5.19 % 81,382 4.97 %
Consumer residential 108,056 4.52 % 105,219 4.22 %
Consumer nonresidential   28,543   6.37 %   17,584   3.82 %
Total loans 928,190 4.86 % 789,704 4.63 %
 
Investment securities (2)(3) 122,164 2.42 % 116,267 2.34 %

Interest-bearing deposits at other financial institutions

  22,821   1.42 %   11,706   0.57 %
Total interest-earning assets 1,073,175 4.51 % 917,677 4.29 %
 
Non-interest earning assets:
Cash and due from banks 2,422 1,837
Premises and equipment, net 1,347 1,414

Accrued interest and other assets

28,871 22,543
Allowance for loan losses   (8,148 )   (6,847 )
 
Total Assets $ 1,097,667   $ 936,624  
 
Interest-bearing liabilities:
Interest checking $ 211,461 1.00 % $ 207,969 0.80 %
Savings and money market 188,560 1.06 % 156,275 0.68 %
Time deposits 252,130 1.50 % 200,576 1.28 %
Wholesale deposits   92,432   1.61 %   73,324   0.98 %
Total interest-bearing deposits 744,583 1.26 % 638,144 0.94 %
 
Other borrowed funds 5,897 1.91 % 19,017 1.13 %

Subordinated notes, net of issuance costs

  24,354   6.51 %   24,274   6.53 %
Total interest-bearing liabilities 774,834 1.43 % 681,435 1.15 %
 
Noninterest-bearing liabilities:
Noninterest-bearing deposits 216,381 167,262
Other liabilities 2,105 2,250
 
Stockholders’ equity   104,347     85,677  
 
Total Liabilities and Stockholders' Equity $ 1,097,667   $ 936,624  
 
Net Interest Margin (2) 3.48 % 3.44 %
 
(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 21% for 2018 and 34.5% for 2017.
(3) The average balances for investment securities includes restricted stock.

FVCBankcorp, Inc.
David W. Pijor, Chairman and Chief Executive Officer
(703) 436-3802
dpijor@fvcbank.com
or
Patricia A. Ferrick, President
(703) 436-3822
pferrick@fvcbank.com

Source: FVCBankcorp, Inc.