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Section 1: 8-K (8-K)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  July 18, 2019

 

FVCBankcorp, Inc.

(Exact name of registrant as specified in its charter)

 

Virginia

 

001-38647

 

47-5020283

(State or other jurisdiction

 

(Commission file number)

 

(IRS Employer

of incorporation)

 

 

 

Number)

 

11325 Random Hills Road

Fairfax, Virginia 22030

(Address of Principal Executive Offices) (Zip Code)

 

(703) 436-3800

Registrant’s telephone number, including area code:

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class:

 

Trading Symbol(s)

 

Name of Each Exchange on Which Registered:

Common Stock, $0.01 par value

 

FVCB

 

The Nasdaq Stock Market, LLC

 

 

 


 

Item 2.02              Results of Operations and Financial Condition.

 

On July 18, 2019, FVCBankcorp, Inc. issued a press release reporting its financial results for the period ended June 30, 2019.  A copy of the press release is being furnished as an exhibit to this report and is incorporated by reference into this Item 2.02.

 

Item 9.01              Financial Statements and Exhibits.

 

(d)           Exhibits.

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release dated July 18, 2019.

 

2


 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

FVCBANKCORP, INC.

 

 

 

 

 

By:

/s/ Jennifer L. Deacon

 

 

Jennifer L. Deacon, Executive Vice President and Chief Financial Officer

 

 

Dated: July 19, 2019

 

 

3


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Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

PRESS RELEASE

 

For further information, contact:

David W. Pijor, Chairman and Chief Executive Officer

Phone: (703) 436-3802

Email: [email protected]

Patricia A. Ferrick, President

Phone: (703) 436-3822

Email: [email protected]

 

FOR IMMEDIATE RELEASE — July 18, 2019

 

FVCBankcorp, Inc. Announces

Record Earnings for Second Quarter 2019

 

Fairfax, VA-FVCBankcorp, Inc. (NASDAQ:FVCB) (the “Company”) today reported second quarter 2019 net income of $4.1 million, or $0.28 diluted earnings per share, compared to $3.1 million, or $0.26 diluted earnings per share, for the quarterly period ended June 30, 2018.  Weighted-average common shares outstanding for the diluted earnings per share calculations were 14.8 million and 12.1 million for the three months ended June 30, 2019 and 2018, respectively, reflecting the increase from shares issued in 2018 for the initial public offering and acquisition of Colombo Bank (“Colombo”).

 

For the six month period ended June 30, 2019, net income was $8.0 million, or $0.54 per diluted earnings per share, compared to $6.1 million, or $0.50 diluted earnings per share, for the six month period ended June 30, 2018.  Before merger-related expenses net of taxes, net income for the six months ended June 30, 2019 was $8.1 million, or $0.55 per diluted share and for the prior year net income for the six month period was $6.4 million, or $0.53 diluted earnings per share.

 

Return on average assets was 1.13% and return on average equity was 9.78% for the second quarter of 2019.  For the comparable quarterly June 30, 2018 period, return on average assets was 1.13% and return on average equity was 12.00%.  For the six months ended June 30, 2019 and 2018, return on average assets was 1.14% and 1.13%, respectively.  Return on average equity for the six months ended June 30, 2019 and 2018 was 9.76% and 12.02%, respectively.

 

Selected Highlights

 

·                  Record Earnings.  Earnings increased $1.0 million, or 33%, to $4.1 million for the second quarter of 2019 as compared to the same 2018 period.  Net interest margin increased to 3.59% for the quarter ended June 30, 2019 compared to 3.50% for the year ago quarter ended June 30, 2018, and decreased from 3.65% for the linked quarter ended March 31, 2019.

 

·                  Strong Loan Growth.  Total loans, net of deferred fees, totaled $1.23 billion at June 30, 2019, an increase of $55.4 million, or 19% annualized, from March 31, 2019. Year-over-year loan growth was $278.7 million, or 29% from June 30, 2018 to June 30, 2019. Excluding the $110 million of loans associated with the Colombo acquisition, organic growth was $168 million, or 18%.

 

·                  Sound Asset Quality.  Asset quality remains strong, with nonperforming loans and loans past due 90 days or more as a percentage of total assets of 0.67% at June 30, 2019.  Nonperforming loans and loans past due 90 days or more totaled $10.0 million at June 30, 2019, of which $2.9 million were acquired loans from Colombo.

 

·                  Strong Core Deposit Growth.  Total deposits increased $56.7 million, to $1.27 billion at June 30, 2019, or 19% annualized, from March 31, 2019.  Noninterest-bearing deposits increased $37.4 million, or 16% during 2019 and represent 21% of the total deposit base at June 30, 2019.

 


 

·                  Improved Tangible Book Value.  Tangible book value per share at June 30, 2019 was $11.70, a 25% increase from $9.38 at June 30, 2018.

 

“I continue to be pleased with how our Company performed during the second quarter of 2019.  FVCbank has consistently reported record earnings which has been driven by strong loan and deposit growth, a direct result of our expanded regional presence and the strength of our business development teams,” stated David W. Pijor, Chairman and CEO.

 

Balance Sheet

 

Total assets increased to $1.48 billion at June 30, 2019 compared to $1.14 billion at June 30, 2018, an increase of $345.2 million, or 30%. Loans receivable, net of deferred fees, totaled $1.23 billion at June 30, 2019, compared to $955.6 million at June 30, 2018, an increase of $278.7 million, or 29%. Excluding the $110 million of loans associated with the Colombo acquisition, organic growth was $168 million, or 18%.  During the second quarter of 2019, average loans grew $70.0 million, or 25% annualized. During the quarter, loan originations totaled approximately $114 million, of which $77 million funded during the quarter.

 

Investment securities increased $17.4 million to $136.2 million at June 30, 2019, compared to $118.8 million at June 30, 2018.

 

Total deposits increased to $1.27 billion at June 30, 2019 compared to $1.01 billion at June 30, 2018, an increase of $260.5 million, or 26%. Core deposits, which represent total deposits less wholesale deposits, increased $255.5 million or 27% to $1.19 billion at June 30, 2019 compared to $931.6 million at June 30, 2018.  Wholesale deposits totaled $82.2 million, or 6% of total deposits at June 30, 2019, a decrease of $33.2 million from March 31, 2019.  Noninterest-bearing deposits increased $17.0 million to $270.7 million at June 30, 2019 from $253.7 million at March 31, 2019, and represented 21% of total deposits at June 30, 2019.

 

Income Statement

 

Net interest income totaled $12.4 million, an increase of $3.0 million, or 32%, for the quarter ended June 30, 2019, compared to the year ago quarter, and an increase of $607 thousand, or 5% compared to the first quarter of 2019. The Company’s net interest margin increased 9 basis points to 3.59% for the quarter ended June 30, 2019 compared to 3.50% for the quarter ended June 30, 2018. On a linked quarter basis, net interest margin decreased 6 basis points from 3.65% for the three months ended March 31, 2019, primarily a result of a decrease in acquired loan accretion and an increase in the cost of interest-bearing deposits. For the six months ended June 30, 2019, net interest income was $24.1 million compared to $18.1 million for the year to date period ended June 30, 2018, an increase of $6.0 million, or 33%.

 

Cost of deposits, which include noninterest-bearing deposits, for the second quarter of 2019 was 1.36%, compared to 0.95% for the second quarter of 2018, reflecting the increased rate environment from a year ago.  The Company has also been successful in adding several new customer relationships at current market rates which have contributed to the increase in deposit costs year-over-year. The average yield for the loan portfolio for the second quarter of 2019 was 5.24% compared to 4.86% for the year ago quarter, and 5.23% for the quarter ended March 31, 2019. Included in net interest income for the second quarter of 2019 is $222 thousand in acquired loan accretion associated with the Company’s acquired loan portfolio, which has contributed to the increase in margin.  Acquired loan accretion was $245 thousand for the first quarter of 2019.

 

Noninterest income totaled $539 thousand and $363 thousand for the quarters ended June 30, 2019 and 2018, respectively.  Fee income from loans was $53 thousand, an increase of $49 thousand for the quarter ended June 30, 2019 compared to 2018, primarily a result of an increase in commercial loan fee income.  Compared to the quarter ended March 31, 2019, fees on loans decreased $294 thousand, all of which was a result of a decrease in loan swap fee income during the quarter ended June 30, 2019.  Service charges on deposit accounts and other fee income totaled $376 thousand for the second quarter of 2019, an increase of 50% or $125 thousand from the year ago quarter.  This increase in deposit fee income resulted from the increase in core deposit relationships,

 


 

both organic and acquired, year over year.  Noninterest income for the year to date period ended June 30, 2019 was $1.3 million, compared to $748 thousand for the 2018 year to date period, an increase of $529 thousand, or 71%, which was primarily driven by loan swap fee income and service charges on deposit accounts.

 

Noninterest expense totaled $7.3 million for the quarter ended June 30, 2019, compared to $5.8 million for the same three-month period of 2018. Approximately $893 thousand of the increase in noninterest expense from the year ago quarter is attributable to expenses associated with Colombo’s former operations, in addition to merger-related expenses of $16 thousand for the three months ended June 30, 2019.  Salary and compensation related expenses increased $921 thousand, or 28%, for the quarter ended June 30, 2019, compared to the same three-month period of 2018, resulting from the increase in staffing from the acquisition and increases in back-office support staff. Occupancy and equipment expense increased $293 thousand year-over-year primarily as a result of the branch locations acquired from Colombo.  Increases in data processing and network administration, franchise taxes and other operating expenses for the quarter ended June 30, 2019 compared to the same three-month period of 2018 is primarily growth related. On a linked quarter basis, noninterest expense increased $372 thousand from the three months ended March 31, 2019, primarily a result of salary increases related to the Company’s annual performance review process and an increase in the variable component to employee compensation.  For the six months ended June 30, 2019 and 2018, noninterest expense was $14.2 million and $11.1 million, respectively, the increase of which relates directly to the addition of Colombo to the Company’s expense structure.

 

The efficiency ratio for the quarter ended June 30, 2019 was 56.4%, a decrease from 59.9% from the year ago quarter.  The efficiency ratios for the six months ended June 30, 2019 and 2018, excluding merger-related expenses were 55.5% and 56.6%, respectively.

 

Asset Quality

 

The Company recorded provision for loan losses of $505 thousand for the three months ended June 30, 2019, compared to $281 thousand for the year ago quarter.  Year to date provision expense for 2019 was $1.0 million compared to $639 thousand for the 2018 year to date period. Asset quality remains strong as nonperforming loans and loans ninety days or more past due totaled $10.2 million, or 0.68% of total assets, of which $2.7 million related to acquired loans. All of the Company’s nonperforming loans are secured with three loans having specific reserves totaling $325 thousand.  There were no performing troubled debt restructurings (“TDR”) at June 30, 2019, compared to $4.1 million at March 31, 2019, which is now included as part of the nonperforming loan portfolio and represents the decline in the allowance to nonperforming loans ratio. Nonperforming assets (including TDRs and other real estate owned) to total assets was 0.93% at June 30, 2019 compared to 0.83% for March 31, 2019.  The allowance for loan losses to total loans was 0.81% for each of the periods ended June 30, 2019 and December 31, 2018. The allowance for loan losses on the Company’s originated portfolio was 0.89% of loans outstanding at June 30, 2019 versus 0.92% at December 31, 2018, a result of acquired loans maturing and moving to the originated portfolio at renewal.  One charge-off of $20 thousand was recorded during the second quarter of 2019 which was related to the Company’s purchased consumer installment loan portfolio.

 

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 $1.48 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 Baltimore and Washington D.C., metropolitan areas. Locally owned and managed, FVCbank is based in Fairfax, Virginia, and 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 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, 2018 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 Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

For the Three Months Ended

 

 

 

2019

 

2018

 

2019

 

2018

 

3/31/2019

 

12/31/2018

 

Selected Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,484,600

 

$

1,139,449

 

 

 

 

 

$

1,419,763

 

$

1,351,576

 

Total investment securities

 

141,611

 

122,644

 

 

 

 

 

144,865

 

130,597

 

Total loans, net of deferred fees

 

1,234,372

 

955,641

 

 

 

 

 

1,178,941

 

1,136,743

 

Allowance for loan losses

 

(9,996

)

(8,298

)

 

 

 

 

(9,512

)

(9,159

)

Total deposits

 

1,269,374

 

1,008,896

 

 

 

 

 

1,212,695

 

1,162,440

 

Subordinated debt

 

24,447

 

24,367

 

 

 

 

 

24,427

 

24,407

 

Total stockholders’ equity

 

170,163

 

103,966

 

 

 

 

 

163,993

 

158,336

 

Summary Results of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

16,990

 

$

12,070

 

$

32,950

 

$

23,411

 

$

15,960

 

$

15,640

 

Interest expense

 

4,619

 

2,714

 

8,815

 

5,292

 

4,196

 

3,823

 

Net interest income

 

12,371

 

9,356

 

24,135

 

18,119

 

11,764

 

11,817

 

Provision for loan losses

 

505

 

281

 

1,020

 

639

 

515

 

930

 

Net interest income after provision for loan losses

 

11,866

 

9,075

 

23,115

 

17,480

 

11,249

 

10,887

 

Noninterest income - loan fees, service charges and other

 

429

 

255

 

1,062

 

529

 

633

 

519

 

Noninterest income - bank owned life insurance

 

110

 

108

 

215

 

219

 

105

 

109

 

Noninterest income - gain (loss) on securities sold

 

 

 

 

 

 

(462

)

Noninterest expense

 

7,276

 

5,822

 

14,180

 

11,082

 

6,904

 

9,419

 

Income before taxes

 

5,129

 

3,616

 

10,212

 

7,146

 

5,083

 

1,634

 

Income tax expense

 

1,044

 

539

 

2,201

 

1,072

 

1,157

 

224

 

Net income

 

4,085

 

3,077

 

8,011

 

6,074

 

3,926

 

1,410

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income, basic

 

$

0.30

 

$

0.28

 

$

0.58

 

$

0.55

 

$

0.29

 

$

0.10

 

Net income, diluted

 

$

0.28

 

$

0.26

 

$

0.54

 

$

0.50

 

$

0.27

 

$

0.10

 

Book value

 

$

12.30

 

$

9.39

 

 

 

 

 

$

11.92

 

$

11.55

 

Tangible book value

 

$

11.70

 

$

9.38

 

 

 

 

 

$

11.32

 

$

10.90

 

Shares outstanding

 

13,839,772

 

11,076,266

 

 

 

 

 

13,755,249

 

13,712,615

 

Selected Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (2)

 

3.59

%

3.50

%

3.62

%

3.45

%

3.65

%

3.59

%

Return on average assets (2)

 

1.13

%

1.13

%

1.14

%

1.13

%

1.16

%

0.42

%

Return on average equity (2)

 

9.78

%

12.00

%

9.76

%

12.02

%

9.74

%

3.65

%

Efficiency (1)

 

56.36

%

59.90

%

55.80

%

58.74

%

55.22

%

75.69

%

Loans, net of deferred fees to total deposits

 

97.24

%

94.72

%

 

 

 

 

97.22

%

97.79

%

Noninterest-bearing deposits to total deposits

 

21.33

%

28.19

%

 

 

 

 

20.92

%

20.07

%

Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (from above)

 

$

4,085

 

$

3,077

 

$

8,011

 

$

6,074

 

$

3,926

 

$

1,410

 

Add: Merger and acquisition expense

 

16

 

397

 

83

 

397

 

67

 

2,668

 

Add: Loss on sales of securities available-for-sale

 

 

 

 

 

 

462

 

Less: provision for income taxes associated with merger and acquisition expense

 

(4

)

(83

)

(19

)

(83

)

(15

)

(649

)

Net income, as adjusted

 

$

4,097

 

$

3,391

 

$

8,075

 

$

6,388

 

$

3,978

 

$

3,891

 

Net income, diluted, on an operating basis

 

$

0.28

 

$

0.28

 

$

0.55

 

$

0.53

 

$

0.27

 

$

0.26

 

Return on average assets (non-GAAP operating earnings)

 

1.13

%

1.24

%

1.15

%

1.19

%

1.17

%

1.16

%

Return on average equity (non-GAAP operating earnings)

 

9.81

%

13.23

%

9.84

%

12.64

%

9.86

%

10.07

%

Efficiency ratio (non-GAAP operating earnings)

 

56.24

%

55.82

%

55.47

%

56.63

%

54.69

%

54.25

%

Capital Ratios - Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity (to tangible assets)

 

10.97

%

9.12

%

 

 

 

 

11.03

%

11.16

%

Total capital (to risk weighted assets)

 

13.21

%

12.79

%

 

 

 

 

13.21

%

14.02

%

Common equity tier 1 capital (to risk weighted assets)

 

12.49

%

12.00

%

 

 

 

 

12.50

%

13.27

%

Tier 1 capital (to risk weighted assets)

 

12.49

%

12.00

%

 

 

 

 

12.50

%

13.27

%

Tier 1 leverage (to average assets)

 

12.10

%

11.58

%

 

 

 

 

12.57

%

12.41

%

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans and loans 90+ past due

 

$

9,989

 

$

938

 

 

 

 

 

$

3,791

 

$

3,211

 

Performing troubled debt restructurings (TDRs)

 

 

1,600

 

 

 

 

 

4,092

 

203

 

Other real estate owned

 

3,866

 

3,866

 

 

 

 

 

3,866

 

4,224

 

Nonperforming loans and loans 90+ past due to total assets (excl. TDRs)

 

0.67

%

0.08

%

 

 

 

 

0.27

%

0.24

%

Nonperforming assets to total assets

 

0.93

%

0.42

%

 

 

 

 

0.54

%

0.55

%

Nonperforming assets (including TDRs) to total assets

 

0.93

%

0.56

%

 

 

 

 

0.83

%

0.57

%

Allowance for loan losses to loans

 

0.81

%

0.87

%

 

 

 

 

0.81

%

0.81

%

Allowance for loan losses to nonperforming loans

 

100.07

%

884.65

%

 

 

 

 

250.91

%

285.24

%

Net charge-offs (recovery)

 

$

20

 

$

85

 

$

182

 

$

66

 

$

162

 

$

347

 

Net charge-offs (recovery) to average loans (2)

 

0.01

%

0.04

%

0.03

%

0.01

%

0.06

%

0.13

%

Selected Average Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,444,588

 

$

1,092,950

 

$

1,399,949

 

$

1,074,807

 

$

1,354,814

 

$

1,341,991

 

Total earning assets

 

1,384,516

 

1,069,035

 

1,346,110

 

1,051,330

 

1,307,278

 

1,305,573

 

Total loans, net of deferred fees

 

1,207,933

 

930,133

 

1,173,134

 

912,025

 

1,137,948

 

1,101,539

 

Total deposits

 

1,228,595

 

958,304

 

1,188,841

 

940,066

 

1,148,646

 

1,141,500

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

270,711

 

$

284,452

 

 

 

 

 

$

253,723

 

$

233,318

 

Interest-bearing checking, savings and money market

 

596,701

 

396,667

 

 

 

 

 

546,067

 

533,732

 

Time deposits

 

319,740

 

250,492

 

 

 

 

 

297,469

 

310,985

 

Wholesale deposits

 

82,222

 

77,285

 

 

 

 

 

115,436

 

84,405

 

 


(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)  Annualized.

(3)  Some of the financial measures discussed throughout the press release are “non-GAAP financial measures.” In accordance with SEC rules, the Company classifies a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP in our 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

 

 

 

6/30/2019

 

3/31/2019

 

Quarter

 

12/31/2018

 

6/30/2018

 

Year Ago

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

15,201

 

$

13,404

 

13.4

%

$

9,435

 

$

6,309

 

140.9

%

Interest-bearing deposits at other financial institutions

 

29,149

 

30,359

 

-4.0

%

34,060

 

30,734

 

-5.2

%

Investment securities

 

136,232

 

139,474

 

-2.3

%

125,298

 

118,844

 

14.6

%

Restricted stock, at cost

 

5,379

 

5,391

 

-0.2

%

5,299

 

3,800

 

41.6

%

Loans, net of fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

733,354

 

693,439

 

5.8

%

682,203

 

572,039

 

28.2

%

Commercial and industrial

 

134,466

 

137,869

 

-2.5

%

137,080

 

110,359

 

21.8

%

Commercial construction

 

217,105

 

187,760

 

15.6

%

152,526

 

138,973

 

56.2

%

Consumer residential

 

124,933

 

132,638

 

-5.8

%

132,280

 

106,747

 

17.0

%

Consumer nonresidential

 

24,514

 

27,235

 

-10.0

%

32,654

 

27,523

 

-10.9

%

Total loans, net of fees

 

1,234,372

 

1,178,941

 

4.7

%

1,136,743

 

955,641

 

29.2

%

Allowance for loan losses

 

(9,996

)

(9,512

)

5.1

%

(9,159

)

(8,298

)

20.5

%

Loans, net

 

1,224,376

 

1,169,429

 

4.7

%

1,127,584

 

947,343

 

29.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment, net

 

2,049

 

2,218

 

-7.6

%

2,271

 

1,401

 

46.3

%

Goodwill and intangibles, net

 

8,223

 

8,342

 

-1.4

%

8,443

 

88

 

9,244.3

%

Bank owned life insurance (BOLI)

 

26,621

 

16,511

 

61.2

%

16,406

 

16,187

 

64.5

%

Other real estate owned

 

3,866

 

3,866

 

0.0

%

4,224

 

3,866

 

0.0

%

Other assets

 

33,504

 

30,769

 

8.9

%

18,556

 

10,877

 

208.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

1,484,600

 

$

1,419,763

 

4.6

%

$

1,351,576

 

$

1,139,449

 

30.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

270,711

 

$

253,723

 

6.7

%

$

233,318

 

$

284,452

 

-4.8

%

Interest-bearing checking

 

301,319

 

284,150

 

6.0

%

312,446

 

222,522

 

35.4

%

Savings and money market

 

295,382

 

261,917

 

12.8

%

221,286

 

174,145

 

69.6

%

Time deposits

 

319,740

 

297,469

 

7.5

%

310,985

 

250,492

 

27.6

%

Wholesale deposits

 

82,222

 

115,436

 

-28.8

%

84,405

 

77,285

 

6.4

%

Total deposits

 

1,269,374

 

1,212,695

 

4.7

%

1,162,440

 

1,008,896

 

25.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated notes, net of issuance costs

 

24,447

 

24,427

 

0.1

%

24,407

 

24,367

 

0.3

%

Other liabilities

 

20,616

 

18,648

 

10.6

%

6,393

 

2,220

 

828.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

170,163

 

163,993

 

3.8

%

158,336

 

103,966

 

63.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities & Stockholders’ Equity

 

$

1,484,600

 

$

1,419,763

 

4.6

%

$

1,351,576

 

$

1,139,449

 

30.3

%

 


 

FVCBankcorp, Inc.

Summary Consolidated Income Statements

(In thousands, except per share data)

(Unaudited)

 

 

 

For the Three Months Ended

 

 

 

 

 

 

 

% Change

 

 

 

% Change

 

 

 

 

 

 

 

Current

 

 

 

From

 

 

 

6/30/2019

 

3/31/2019

 

Quarter

 

6/30/2018

 

Year Ago

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

12,371

 

$

11,764

 

5.2

%

$

9,356

 

32.2

%

Provision for loan losses

 

505

 

515

 

-1.9

%

281

 

79.7

%

Net interest income after provision for loan losses

 

11,866

 

11,249

 

5.5

%

9,075

 

30.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

Fees on Loans

 

53

 

347

 

-84.7

%

4

 

1,225.0

%

Service charges on deposit accounts

 

229

 

182

 

25.8

%

152

 

50.7

%

BOLI income

 

110

 

105

 

4.8

%

108

 

1.9

%

Other fee income

 

147

 

104

 

41.3

%

99

 

48.5

%

Total noninterest income

 

539

 

738

 

-27.0

%

363

 

48.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

4,245

 

3,938

 

7.8

%

3,324

 

27.7

%

Occupancy and equipment expense

 

873

 

827

 

5.6

%

580

 

50.5

%

Data processing and network administration

 

343

 

439

 

-21.9

%

272

 

26.1

%

State franchise taxes

 

426

 

422

 

0.9

%

296

 

43.9

%

Professional fees

 

274

 

130

 

110.8

%

132

 

107.6

%

Merger and acquisition expense

 

16

 

67

 

-76.1

%

397

 

100.0

%

Other operating expense

 

1,099

 

1,081

 

1.7

%

821

 

33.9

%

Total noninterest expense

 

7,276

 

6,904

 

5.4

%

5,822

 

25.0

%

Net income before income taxes

 

5,129

 

5,083

 

0.9

%

3,616

 

41.8

%

Income tax expense

 

1,044

 

1,157

 

-9.8

%

539

 

93.6

%

Net Income

 

$

4,085

 

$

3,926

 

4.0

%

$

3,077

 

32.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

 

$

0.30

 

$

0.29

 

3.5

%

$

0.28

 

6.0

%

Earnings per share - diluted

 

$

0.28

 

$

0.27

 

3.8

%

$

0.26

 

8.1

%

Weighted-average common shares outstanding - basic

 

13,802,712

 

13,724,232

 

 

 

11,023,775

 

 

 

Weighted-average common shares outstanding - diluted

 

14,817,462

 

14,779,955

 

 

 

12,063,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

GAAP net income reported above

 

$

4,085

 

$

3,926

 

 

 

$

3,077

 

 

 

Add: Merger and acquisition expense above

 

16

 

67

 

 

 

397

 

 

 

Subtract: provision for income taxes associated with merger and acquisition expense

 

(4

)

(15

)

 

 

(83

)

 

 

Net Income, excluding above merger and acquisition charges

 

$

4,097

 

$

3,978

 

 

 

$

3,391

 

 

 

Earnings per share - basic (excluding merger and acquisition charges)

 

$

0.30

 

$

0.29

 

 

 

$

0.31

 

 

 

Earnings per share - diluted (excluding merger and acquisition charges)

 

$

0.28

 

$

0.27

 

 

 

$

0.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (non-GAAP operating earnings)

 

1.13

%

1.17

%

 

 

1.24

%

 

 

Return on average equity (non-GAAP operating earnings)

 

9.81

%

9.86

%

 

 

13.23

%

 

 

Efficiency ratio (non-GAAP operating earnings)

 

56.24

%

54.69

%

 

 

55.82

%

 

 

 


 

FVCBankcorp, Inc.

Summary Consolidated Income Statements

(In thousands, except per share data)

(Unaudited)

 

 

 

For the Six Months Ended

 

 

 

 

 

 

 

% Change

 

 

 

 

 

 

 

From

 

 

 

6/30/2019

 

6/30/2018

 

Year Ago

 

 

 

 

 

 

 

 

 

Net interest income

 

$

24,135

 

$

18,119

 

33.2

%

Provision for loan losses

 

1,020

 

639

 

59.6

%

Net interest income after provision for loan losses

 

23,115

 

17,480

 

32.2

%

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

Fees on Loans

 

400

 

62

 

545.2

%

Service charges on deposit accounts

 

411

 

293

 

40.3

%

BOLI income

 

215

 

219

 

-1.8

%

Other fee income

 

251

 

174

 

44.3

%

Total noninterest income

 

1,277

 

748

 

70.7

%

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

Salaries and employee benefits

 

8,183

 

6,509

 

25.7

%

Occupancy and equipment expense

 

1,700

 

1,152

 

47.6

%

Data processing and network administration

 

782

 

541

 

44.5

%

State franchise taxes

 

848

 

592

 

43.2

%

Professional fees

 

404

 

288

 

40.3

%

Merger and acquisition expense

 

83

 

397

 

100.0

%

Other operating expense

 

2,180

 

1,603

 

36.0

%

Total noninterest expense

 

14,180

 

11,082

 

28.0

%

Net income before income taxes

 

10,212

 

7,146

 

42.9

%

Income tax expense

 

2,201

 

1,072

 

105.4

%

Net Income

 

$

8,011

 

$

6,074

 

31.9

%

 

 

 

 

 

 

 

 

Earnings per share - basic

 

$

0.58

 

$

0.55

 

5.2

%

Earnings per share - diluted

 

$

0.54

 

$

0.50

 

7.8

%

Weighted-average common shares outstanding - basic

 

13,763,472

 

10,978,846

 

 

 

Weighted-average common shares outstanding - diluted

 

14,798,708

 

12,092,505

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

GAAP net income reported above

 

$

8,011

 

$

6,074

 

 

 

Add: Merger and acquisition expense above

 

83

 

397

 

 

 

Subtract: provision for income taxes associated with merger and acquisition expense

 

(19

)

(83

)

 

 

Net Income, excluding above merger and acquisition charges

 

$

8,075

 

$

6,388

 

 

 

Earnings per share - basic (excluding merger and acquisition charges)

 

$

0.59

 

$

0.58

 

 

 

Earnings per share - diluted (excluding merger and acquisition charges)

 

$

0.55

 

$

0.53

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (non-GAAP operating earnings)

 

1.15

%

1.19

%

 

 

Return on average equity (non-GAAP operating earnings)

 

9.84

%

12.64

%

 

 

Efficiency ratio (non-GAAP operating earnings)

 

55.47

%

56.63

%

 

 

 


 

FVCBankcorp, Inc.

Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities

(Dollars in thousands)

(Unaudited)

 

 

 

For the Three Months Ended

 

 

 

6/30/2019

 

3/31/2019

 

6/30/2018

 

 

 

Average

 

Average

 

Average

 

Average

 

Average

 

Average

 

 

 

Balance

 

Yield

 

Balance

 

Yield

 

Balance

 

Yield

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, net of fees (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

717,248

 

4.86

%

$

679,268

 

4.72

%

$

564,251

 

4.59

%

Commercial and industrial

 

135,335

 

6.07

%

134,803

 

6.63

%

105,175

 

5.65

%

Commercial construction

 

198,927

 

5.71

%

158,880

 

5.73

%

123,262

 

5.32

%

Consumer residential

 

129,605

 

5.25

%

133,939

 

5.26

%

108,451

 

4.51

%

Consumer nonresidential

 

26,818

 

7.70

%

31,058

 

7.58

%

28,994

 

6.40

%

Total loans

 

1,207,933

 

5.24

%

1,137,948

 

5.23

%

930,133

 

4.86

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (2)(3)

 

144,056

 

2.73

%

144,109

 

2.72

%

123,488

 

2.43

%

Interest-bearing deposits at other financial institutions

 

32,527

 

2.39

%

25,221

 

1.95

%

15,414

 

0.83

%

Total interest-earning assets

 

1,384,516

 

4.91

%

1,307,278

 

4.88

%

1,069,035

 

4.52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

7,597

 

 

 

5,807

 

 

 

2,348

 

 

 

Premises and equipment, net

 

2,152

 

 

 

2,294

 

 

 

1,394

 

 

 

Accrued interest and other assets

 

60,016

 

 

 

48,489

 

 

 

28,361

 

 

 

Allowance for loan losses

 

(9,693

)

 

 

(9,054

)

 

 

(8,188

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

1,444,588

 

 

 

$

1,354,814

 

 

 

$

1,092,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

301,132

 

1.28

%

$

296,010

 

1.27

%

$

195,130

 

1.00

%

Savings and money market

 

275,129

 

1.54

%

235,926

 

1.46

%

194,327

 

1.03

%

Time deposits

 

299,551

 

2.17

%

307,780

 

1.93

%

249,664

 

1.47

%

Wholesale deposits

 

88,064

 

2.52

%

74,781

 

2.42

%

91,028

 

1.70

%

Total interest-bearing deposits

 

963,876

 

1.74

%

914,497

 

1.66

%

730,149

 

1.26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other borrowed funds

 

4,754

 

2.65

%

9,302

 

2.68

%

6,627

 

2.00

%

Subordinated notes, net of issuance costs

 

24,434

 

6.48

%

24,414

 

6.56

%

24,354

 

6.51

%

Total interest-bearing liabilities

 

993,064

 

1.87

%

948,213

 

1.79

%

761,130

 

1.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

264,719

 

 

 

234,149

 

 

 

228,155

 

 

 

Other liabilities

 

19,776

 

 

 

11,170

 

 

 

1,132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

167,029

 

 

 

161,282

 

 

 

102,533

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

 

$

1,444,588

 

 

 

$

1,354,814

 

 

 

$

1,092,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin (1)

 

 

 

3.59

%

 

 

3.65

%

 

 

3.50

%

 


(1)        Non-accrual loans are included in average balances.

(2)        The average yields for investment securities are reported on a fully taxable-equivalent basis at a rate of 22.5%.

(3)        The average balances for investment securities includes restricted stock.

 


 

FVCBankcorp, Inc.

Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities

(Dollars in thousands)

(Unaudited)

 

 

 

For the Six Months Ended

 

 

 

6/30/2019

 

6/30/2018

 

 

 

Average

 

Average

 

Average

 

Average

 

 

 

Balance

 

Yield

 

Balance

 

Yield

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

Loans receivable, net of fees (1)

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

698,363

 

4.79

%

$

551,364

 

4.61

%

Commercial and industrial

 

135,070

 

6.35

%

99,915

 

5.42

%

Commercial construction

 

179,014

 

5.71

%

122,725

 

5.08

%

Consumer residential

 

131,760

 

5.25

%

108,632

 

4.41

%

Consumer nonresidential

 

28,927

 

7.64

%

29,389

 

6.31

%

Total loans

 

1,173,134

 

5.23

%

912,025

 

4.79

%

 

 

 

 

 

 

 

 

 

 

Investment securities (2)(3)

 

144,082

 

2.72

%

123,176

 

2.40

%

Interest-bearing deposits at other financial institutions

 

28,894

 

2.20

%

16,129

 

0.96

%

Total interest-earning assets

 

1,346,110

 

4.90

%

1,051,330

 

4.46

%

 

 

 

 

 

 

 

 

 

 

Non-interest earning assets:

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

6,707

 

 

 

2,440

 

 

 

Premises and equipment, net

 

2,223

 

 

 

1,312

 

 

 

Accrued interest and other assets

 

54,284

 

 

 

27,734

 

 

 

Allowance for loan losses

 

(9,375

)

 

 

(8,009

)

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

1,399,949

 

 

 

$

1,074,807

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

Interest checking

 

$

298,585

 

1.28

%

$

191,212

 

0.94

%

Savings and money market

 

255,636

 

1.51

%

191,634

 

0.99

%

Time deposits

 

303,643

 

2.07

%

256,661

 

1.43

%

Wholesale deposits

 

81,459

 

2.49

%

99,102

 

1.57

%

Total interest-bearing deposits

 

939,323

 

1.70

%

738,609

 

1.21

%

 

 

 

 

 

 

 

 

 

 

Other borrowed funds

 

7,015

 

2.67

%

7,472

 

1.84

%

Subordinated notes, net of issuance costs

 

24,424

 

6.52

%

24,344

 

6.54

%

Total interest-bearing liabilities

 

970,762

 

1.83

%

770,425

 

1.39

%

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

249,518

 

 

 

201,457

 

 

 

Other liabilities

 

15,498

 

 

 

1,821

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

164,171

 

 

 

101,104

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

 

$

1,399,949

 

 

 

$

1,074,807

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin (1)

 

 

 

3.62

%

 

 

3.45

%

 


(1)        Non-accrual loans are included in average balances.

(2)        The average yields for investment securities are reported on a fully taxable-equivalent basis at a rate of 22.5%.

(3)        The average balances for investment securities includes restricted stock.

 


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