8-K
FVCBankcorp, Inc. (FVCB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of theSecurities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 22, 2021
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):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities Registered under 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 |
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
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On April 22, 2021, FVCBankcorp, Inc. (the “Company”) issued a press release reporting its financial results for the period ended March 31, 2021. A copy of the press release is being furnished as Exhibit 99.1 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 April 22, 2021. |
| 104 | The cover page from the Company's Form 8-K with a date on report of April 22,<br>2021, formatted in Inline Extensible Business Reporting Language (included with the Inline XBRL document). |
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/<br> Jennifer L. Deacon | |
| Jennifer L. Deacon,<br> Executive Vice President and Chief Financial Officer | ||
| Dated: April 26, 2021 |
Exhibit 99.1
PRESS RELEASE
For further information, contact:
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
FOR IMMEDIATE RELEASE – April 22, 2021
FVCBankcorp, Inc. Announces
Record First Quarter 2021 Earnings
Fairfax, VA-FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported first quarter 2021 net income of $5.6 million, or $0.38 diluted earnings per share, compared to $3.7 million, or $0.26 diluted earnings per share, for the quarterly period ended March 31, 2020. Net revenues, which include net interest income plus noninterest income, for the three months ended March 31, 2021 were $14.8 million, an increase of $1.9 million, from $12.9 million for the year ago quarter ended March 31, 2020.
Annualized return on average assets was 1.19% and annualized return on average equity was 11.53% for the first quarter of 2021. For the comparable quarterly March 31, 2020 period, annualized return on average assets was 0.96% and annualized return on average equity was 8.29%.
First Quarter Selected Highlights
| · | Improved Credit Quality Metrics. During the first quarter of 2021,<br>watchlist credits decreased $9.9 million, or 30%, to $22.8 million at March 31, 2021 from $32.7 million at December 31, 2020, a result<br>of aggressive management of watchlist credits and loan payoffs. Nonperforming loans and loans past due 90 days or more and still accruing<br>were 0.27% of total assets at March 31, 2021, compared to 0.31% at December 31, 2020. |
|---|---|
| · | Increased Pre-Tax Pre-Provision Income. For the three months ended<br>March 31, 2021 and 2020, pre-tax pre-provision income was $7.0 million and $5.7 million, respectively, an increase of $1.3 million or<br>22%. On a linked quarter basis, pre-tax pre-provision income was also $7.0 million for the three months ended December 31, 2020. Pre-tax<br>pre-provision annualized return on average assets for the three months ended March 31, 2021 and 2020 were 1.49% and 1.47%, respectively.<br>A reconciliation of pre-tax pre-provision income, a non-GAAP financial measure, can be found in the tables below. |
| --- | --- |
| · | Strong Core Deposit Growth. Core deposits, which exclude wholesale<br>deposits, increased $77.1 million, to $1.56 billion at March 31, 2021, or 21% annualized, from December 31, 2020. Noninterest-bearing<br>deposits increased $102.8 million to $501.8 million at March 31, 2021, representing 31% of total deposits at March 31, 2021. |
| --- | --- |
| · | Increased Net Interest Income. Net interest income increased $1.8<br>million to $14.0 million for the first quarter of 2021, compared to $12.2 million for the same 2020 period. Net interest margin was 3.22%<br>for the quarter ended March 31, 2021, compared to 3.37% for the year ago quarter of 2020 and 3.28% for the fourth quarter of 2020. |
| --- | --- |
“Our second consecutive record quarterly earnings demonstrate our ability to generate continued profitable growth, building long term value for our shareholders. Our business development efforts and commitment to our markets continue to drive new relationships, as evidenced by our deposit growth during the quarter. Our conservative credit culture has resulted in lower loan losses than initially anticipated at the start of the pandemic. As a more optimistic economic outlook provides momentum heading into the second quarter, along with a robust pipeline of loan originations, we are positioned for strong loan growth for the remainder of 2021” stated David W. Pijor, Chairman and CEO.
Balance Sheet
Total assets increased to $1.88 billion at March 31, 2021 compared to $1.82 billion at December 31, 2020, an increase of $63.0 million, or 3%. Loans receivable, net of deferred fees, totaled $1.45 billion at March 31, 2021, compared to $1.47 billion at December 31, 2020, a decrease of $19.2 million, or 1%. Loans receivable, net of deferred fees, excluding loans originated through the U.S. Small Business Administration’s Paycheck Protection Program (“PPP”), decreased $29.7 million during the three months ended March 31, 2021. During the first quarter of 2021, loans that paid off prior to maturity totaled $44.5 million, of which, $9.5 million were watch list credits that either paid off or were sold at a discount during the quarter, $13.5 million were related to borrowers selling the underlying collateral, and the remaining loans paid off were primarily a result of refinancing and general business activity. In addition, seasonal commercial line activity decreased $7.2 million during the first quarter of 2021. Offsetting these decreases were loan originations totaling $31.2 million (excluding PPP), of which $24.7 million funded during the quarter.
PPP loans, net of fees, totaled $163.5 million at March 31, 2021, an increase from $153.0 million at December 31, 2020. Loans forgiven during the first quarter of 2021 totaled $49.3 million, or 28% of PPP loans originated during 2020. PPP loans originated during the first quarter of 2021 totaled $62.6 million and net deferred fees associated with originating these loans totaled $2.1 million.
Investment securities increased $9.0 million to $135.4 million at March 31, 2021, compared to $126.4 million at December 31, 2020. During the three months ended March 31, 2021, the Company purchased $20.1 million in mortgage-backed securities to invest excess liquidity and improve net interest margin.
Total deposits increased to $1.59 billion at March 31, 2021 compared to $1.53 billion at December 31, 2020, an increase of $62.1 million, or 4%. Core deposits, which represent total deposits less wholesale deposits, increased $77.1 million, or 5%, to $1.56 billion at March 31, 2021 compared to $1.48 billion at December 31, 2020. Wholesale deposits totaled $35.0 million, or 2% of total deposits at March 31, 2021, a decrease of $15.0 million from December 31, 2020. Noninterest-bearing deposits increased $102.8 million to $501.8 million at March 31, 2021 from $399.1 million at December 31, 2020, and represented 31% of total deposits at March 31, 2021.
The Company’s bank subsidiary, FVCbank, remains well-capitalized at March 31, 2021 with a community bank leverage ratio of 11.65%.
Income Statement
Net income for the three months ended March 31, 2021 was $5.6 million, an increase of $1.8 million, or 49%, compared to $3.7 million for the same period of 2020. On a linked quarter basis, net income increased $555 thousand, or 11%, from $5.0 million for the quarter ended December 31, 2020.
Net interest income totaled $14.0 million, an increase of $1.8 million, for the quarter ended March 31, 2021, compared to the year ago quarter, and decreased by $76 thousand, compared to the fourth quarter of 2020. Interest expense on deposits decreased $2.2 million for the three months ended March 31, 2021 compared to the same period of 2020, and decreased $306 thousand compared to the three months ended December 31, 2020. All decreases were a result of continued targeted rate reductions and the repricing of the Company’s time deposits to lower interest rates upon renewal. Interest income includes loan mark accretion on acquired loans totaling $132 thousand, $335 thousand, and $163 thousand for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020, respectively. Lastly, net interest income for the three months ended March 31, 2021 benefited from PPP loan origination, which contributed $1.8 million to interest income, of which $927 thousand was related to recognition of net deferred fees on forgiven loans. This compares to interest income from PPP loans of $1.2 million for the fourth quarter of 2020, which included recognition of net deferred fees of $330 thousand. Remaining net deferred fees related to PPP originations totaled $3.1 million at March 31, 2021 and are being recognized in interest income over the remaining lives of the PPP loans, or sooner upon PPP loan forgiveness or repayment.
The Company’s net interest margin decreased 15 basis points to 3.22% for the quarter ended March 31, 2021 compared to 3.37% for the quarter ended March 31, 2020. On a linked quarter basis, net interest margin decreased 6 basis points from 3.28% for the three months ended December 31, 2020. Excess liquidity continues to compress net interest margin, decreasing margin by 23 basis points during the first quarter of 2021. The average yield on total loans for the first quarter of 2021 was 4.38%, compared to 4.36% for the linked quarter ended December 31, 2020, and 4.88% for the year ago quarter. Net deferred fees recognized from PPP loan forgiveness has contributed to the average yield of the loan portfolio, as the yield on PPP loans increased to 4.52% for the first quarter of 2021, compared to 2.95% for the fourth quarter ended December 31, 2020.
Cost of interest-bearing deposits for the first quarter of 2021 was 0.74%, compared to 1.72% for the first quarter of 2020, a decrease of 98 basis points, or 57%, primarily as a result of the Company having aggressively decreased its deposit rates during 2020 to offset the repricing of its variable rate loan portfolio. The cost of deposits, which includes noninterest-bearing deposits, decreased 9 basis points to 0.51% for the first quarter of 2021 as compared to 0.60% for the fourth quarter of 2020, and decreased 79 basis points from 1.30% for the year ago quarter of 2020.
Noninterest income totaled $791 thousand and $693 thousand for the quarters ended March 31, 2021 and 2020, respectively. Fee income from loans was $20 thousand, a decrease of $376 thousand, for the quarter ended March 31, 2021 compared to 2020, primarily a result of loan swap fee income recorded during 2020 compared to none during 2021. Service charges on deposit accounts and other fee income totaled $523 thousand for the first quarter of 2021, an increase of 42%, or $155 thousand, from the year ago quarter, primarily resulting from a one-time commission bonus earned on the Company’s long-standing investment in Bankers’ Insurance during the first quarter of 2021. Income from bank-owned life insurance decreased $35 thousand to $248 thousand for the three months ended March 31, 2021 compared to $283 thousand for the same period of 2020.
For the three months ended March 31, 2021, the Company recorded no gains or losses on sales of assets. However, during the three months ended March 31, 2020, the Company recorded gains on sales of investment securities available-for-sale totaling $97 thousand and a loss on the loans held for sale portfolio of $451 thousand.
Noninterest expense totaled $7.9 million for the quarter ended March 31, 2021, compared to $7.2 million for the same three-month period of 2020. On a linked quarter basis, noninterest expense was also $7.9 million for the quarter ended December 31, 2020. The increase in noninterest expense compared to the year ago quarter was primarily related to an increase in salaries and benefits expense of $520 thousand, which is primarily related to accruals for incentive compensation during the first quarter of 2021. In addition, data processing and network administration expenses increased $129 thousand to $563 thousand for the three months ended March 31, 2021 compared to $434 thousand for the year ago quarter as planned 2020 network infrastructure upgrades were implemented during the second quarter of 2020.
The efficiency ratio for the quarter ended March 31, 2021 was 53.1%, an improvement from 55.9% for the year ago quarter and unchanged from 53.1% for the three months ended December 31, 2020.
The Company recorded a provision for income taxes of $1.4 million for the three months ended March 31, 2021, compared to $896 thousand for the same period of 2020. The effective tax rates for the three months ended March 31, 2021 and 2020 were 19.9% and 19.4%, respectively. The effective tax rates for each of the three months ended March 31, 2020 and 2019 are less than the Company’s combined federal and state statutory rate of 22.5% primarily because of discrete tax benefits recorded as a result of exercises of nonqualified stock options during 2021 and 2020.
Asset Quality
The Company recorded no provision for loan losses for the three months ended March 31, 2021, compared to $1.1 million for the year ago quarter, and $500 thousand for the fourth quarter of 2020. The Company is not required to implement the provisions of the current expected credit losses accounting standard until January 1, 2023, and is continuing to account for the allowance for loans losses under the incurred loss model. The decrease in the provision for loan losses for the three months ended March 31, 2021 is primarily related to a decrease in loans outstanding at March 31, 2021 and improvement in certain credit quality metrics during the first quarter of 2021, specifically, a reduction in the Company’s watchlist credits and the associated specific reserves for those loans.
The allowance for loan losses to total loans, excluding PPP loans, was 1.12% at March 31, 2021, compared to 1.14% at December 31, 2020. The effective reserve coverage, which includes both the allowance for loan losses and the remaining unaccreted fair value discount on acquired loans, to total loans, excluding PPP loans, was 1.25% at March 31, 2021 compared to 1.27% at December 31, 2020. Net charge-offs of $537 thousand recorded during the first quarter of 2021 were primarily related to two impaired loans the Company sold to mitigate the possibility of further losses.
Nonperforming loans and loans 90 days or more past due at March 31, 2021 totaled $5.0 million, or 0.27% of total assets. This compares to $5.6 million in nonperforming loans and loans 90 days or more past due at December 31, 2020, or 0.31% of total assets. All of the Company’s nonperforming loans are secured and have specific reserves totaling $1.4 million, representing the specific losses associated with those loans. The Company has one troubled debt restructuring at March 31, 2021 totaling $96 thousand which is a consumer residential loan. Nonperforming assets (including other real estate owned) to total assets was 0.47% at March 31, 2021 compared to 0.52% for December 31, 2020.
COVID-19 Pandemic Impact to Loan Portfolio
As a result of the COVID-19 pandemic, the Company implemented loan payment deferral programs to allow customers who were required to close or reduce business operations to defer loan principal and interest payments primarily for 90 days. At March 31, 2021, remaining payment deferred loans totaled $10.0 million, or 0.69% of the total loan portfolio, comprising three loans. One loan is a hotel participation loan totaling $9.7 million; one loan is SBA guaranteed totaling $330 thousand; and one loan is a consumer unsecured loan totaling $61 thousand. Each of these loans are appropriately reserved for in the allowance for loan losses.
The Company is closely and proactively monitoring the effects of the pandemic on its loan and deposit customers and is focused on assessing risks within the loan portfolio and working with customers to minimize losses. The Company considers pandemic impacted loans to include commercial real estate loans to hotels, churches, and certain retail and special purpose asset classes. During its assessment of the allowance for loan losses, the Company addressed the credit risks associated with these pandemic impacted segments and those loan customers that have requested payment deferrals.
About FVCBankcorp, Inc.
FVCBankcorp, Inc. is the holding company for FVCbank, a wholly-owned subsidiary that commenced operations in November 2007. FVCbank is a $1.88 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 9 full-service offices in Arlington, Fairfax, Manassas, Reston and Springfield, Virginia, Washington D.C., and Baltimore, Bethesda, and Rockville, 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
Thispress release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statementsinclude, but are not limited, statements of goals, intentions, and expectations as to future trends, plans, events or resultsof the Company’s operations and policies and regarding general economic conditions. In some cases, forward-looking statements canbe identified by use of words such as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar wordsor 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 accurateforecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and theforward-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. Factorsthat 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 forthe year ended December 31, 2020 and in other periodic and current reports filed with the Securities and Exchange Commission. Becauseof these uncertainties and the assumptions on which the forward-looking statements are based, actual operations and results in the futuremay differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements.The Company’s past results are not necessarily indicative of future performance.
| FVCBankcorp, Inc. | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| (Dollars in thousands, except share data and per share data) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||||||
| 3/31/2021 | 12/31/2020 | 3/31/2020 | ||||||||||||||||||||||
| Selected Balances | ||||||||||||||||||||||||
| Total assets | $ | 1,884,517 | $ | 1,821,481 | $ | 1,602,611 | ||||||||||||||||||
| Total investment securities | 141,745 | 132,978 | 133,586 | |||||||||||||||||||||
| Loans held for sale | -- | -- | 9,640 | |||||||||||||||||||||
| Total loans, net of deferred fees | 1,446,912 | 1,466,083 | 1,282,142 | |||||||||||||||||||||
| Allowance for loan losses | (14,421 | ) | (14,958 | ) | (11,226 | ) | ||||||||||||||||||
| Total deposits | 1,594,639 | 1,532,493 | 1,344,044 | |||||||||||||||||||||
| Subordinated debt | 44,116 | 44,085 | 24,507 | |||||||||||||||||||||
| Other borrowings | 25,000 | 25,000 | 25,000 | |||||||||||||||||||||
| Total stockholders’ equity | 194,929 | 189,500 | 177,688 | |||||||||||||||||||||
| Summary Results of Operations | ||||||||||||||||||||||||
| Interest income | $ | 16,778 | $ | 17,129 | $ | 16,931 | ||||||||||||||||||
| Interest expense | 2,735 | 3,010 | 4,720 | |||||||||||||||||||||
| Net interest income | 14,043 | 14,119 | 12,211 | |||||||||||||||||||||
| Provision for loan losses | -- | 500 | 1,066 | |||||||||||||||||||||
| Net interest income after provision for loan losses | 14,043 | 13,619 | 11,145 | |||||||||||||||||||||
| Noninterest income - loan fees, service charges and other | 543 | 476 | 764 | |||||||||||||||||||||
| Noninterest income - bank owned life insurance | 248 | 264 | 283 | |||||||||||||||||||||
| Noninterest income - gain on sales of securities available-for-sale | -- | -- | 97 | |||||||||||||||||||||
| Noninterest income - loss on loans held for sale | -- | -- | (451 | ) | ||||||||||||||||||||
| Noninterest expense | 7,882 | 7,885 | 7,209 | |||||||||||||||||||||
| Income before taxes | 6,952 | 6,474 | 4,629 | |||||||||||||||||||||
| Income tax expense | 1,383 | 1,460 | 896 | |||||||||||||||||||||
| Net income | 5,569 | 5,014 | 3,733 | |||||||||||||||||||||
| Per Share Data | ||||||||||||||||||||||||
| Net income, basic | $ | 0.41 | $ | 0.37 | $ | 0.27 | ||||||||||||||||||
| Net income, diluted | $ | 0.38 | $ | 0.36 | $ | 0.26 | ||||||||||||||||||
| Book value | $ | 14.29 | $ | 14.03 | $ | 13.21 | ||||||||||||||||||
| Tangible book value ^(1)^ | $ | 13.69 | $ | 13.41 | $ | 12.57 | ||||||||||||||||||
| Shares outstanding | 13,638,934 | 13,510,760 | 13,451,678 | |||||||||||||||||||||
| Selected Ratios | ||||||||||||||||||||||||
| Net interest margin ^(2)^ | 3.22 | % | 3.28 | % | 3.37 | % | ||||||||||||||||||
| Return on average assets ^(2)^ | 1.19 | % | 1.11 | % | 0.96 | % | ||||||||||||||||||
| Return on average equity ^(2)^ | 11.53 | % | 10.68 | % | 8.29 | % | ||||||||||||||||||
| Efficiency ^(3)^ | 53.13 | % | 53.07 | % | 55.87 | % | ||||||||||||||||||
| Loans, net of deferred fees to total deposits | 90.74 | % | 95.67 | % | 95.39 | % | ||||||||||||||||||
| Noninterest-bearing deposits to total deposits | 31.47 | % | 26.04 | % | 21.41 | % | ||||||||||||||||||
| Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP) ^(4)^ | ||||||||||||||||||||||||
| Net income (from above) | $ | 5,569 | $ | 5,014 | $ | 3,733 | ||||||||||||||||||
| Subtract: Gains on sales of securities available-for-sale | -- | -- | (97 | ) | ||||||||||||||||||||
| Less: provision for income taxes associated with non-GAAP adjustments | -- | -- | 20 | |||||||||||||||||||||
| Net income, as adjusted | $ | 5,569 | $ | 5,014 | $ | 3,656 | ||||||||||||||||||
| Net income, diluted, on an operating basis | $ | 0.38 | $ | 0.36 | $ | 0.25 | ||||||||||||||||||
| Return on average assets (non-GAAP operating earnings) | 1.19 | % | 1.11 | % | 0.94 | % | ||||||||||||||||||
| Return on average equity (non-GAAP operating earnings) | 11.53 | % | 10.68 | % | 8.12 | % | ||||||||||||||||||
| Efficiency ratio (non-GAAP operating earnings) ^(3)^ | 53.13 | % | 53.07 | % | 56.29 | % | ||||||||||||||||||
| Capital Ratios - Bank | ||||||||||||||||||||||||
| Tangible common equity (to tangible assets) | 9.95 | % | 9.99 | % | 10.61 | % | ||||||||||||||||||
| Tier 1 leverage (to average assets) | 11.65 | % | 11.65 | % | 12.75 | % | ||||||||||||||||||
| Asset Quality | ||||||||||||||||||||||||
| Nonperforming loans and loans 90+ past due | $ | 5,023 | $ | 5,621 | $ | 8,897 | ||||||||||||||||||
| Performing troubled debt restructurings (TDRs) | 96 | 97 | -- | |||||||||||||||||||||
| Other real estate owned | 3,866 | 3,866 | 3,866 | |||||||||||||||||||||
| Nonperforming loans and loans 90+ past due to total assets (excl. TDRs) | 0.27 | % | 0.31 | % | 0.56 | % | ||||||||||||||||||
| Nonperforming assets to total assets | 0.47 | % | 0.52 | % | 0.80 | % | ||||||||||||||||||
| Nonperforming assets (including TDRs) to total assets | 0.48 | % | 0.53 | % | 0.80 | % | ||||||||||||||||||
| Allowance for loan losses to loans | 1.00 | % | 1.02 | % | 0.88 | % | ||||||||||||||||||
| Allowance for loan losses to nonperforming loans | 287.10 | % | 266.11 | % | 126.18 | % | ||||||||||||||||||
| Net charge-offs | $ | 537 | $ | 98 | $ | 71 | ||||||||||||||||||
| Net charge-offs to average loans ^(2)^ | 0.15 | % | 0.03 | % | 0.02 | % | ||||||||||||||||||
| Selected Average Balances | ||||||||||||||||||||||||
| Total assets | $ | 1,866,477 | $ | 1,812,298 | $ | 1,550,958 | ||||||||||||||||||
| Total earning assets | 1,768,189 | 1,710,345 | 1,458,308 | |||||||||||||||||||||
| Total loans, net of deferred fees | 1,456,310 | 1,485,121 | 1,281,969 | |||||||||||||||||||||
| Total deposits | 1,574,581 | 1,527,313 | 1,280,693 | |||||||||||||||||||||
| Other Data | ||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 501,812 | $ | 399,062 | $ | 287,801 | ||||||||||||||||||
| Interest-bearing checking, savings and money market | 822,888 | 820,378 | 581,005 | |||||||||||||||||||||
| Time deposits | 234,939 | 263,053 | 350,712 | |||||||||||||||||||||
| Wholesale deposits | 35,000 | 50,000 | 124,526 | |||||||||||||||||||||
| (1) Non-GAAP Reconciliation | For the Quarters Ended | |||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||
| (Dollars in thousands, except per share data) | 3/31/2021 | 12/31/2020 | 3/31/2020 | |||||||||||||||||||||
| Total stockholders’ equity | $ | 194,929 | $ | 189,500 | $ | 177,688 | ||||||||||||||||||
| Less: goodwill and intangibles, net | (8,277 | ) | (8,357 | ) | (8,612 | ) | ||||||||||||||||||
| Tangible Common Equity | $ | 186,652 | $ | 181,143 | $ | 169,076 | ||||||||||||||||||
| Book value per common share | $ | 14.29 | $ | 14.03 | $ | 13.21 | ||||||||||||||||||
| Less: intangible book value per common share | (0.60 | ) | (0.62 | ) | (0.64 | ) | ||||||||||||||||||
| Tangible book value per common share | $ | 13.69 | $ | 13.41 | $ | 12.57 | ||||||||||||||||||
| ^(2)^ Annualized. | ||||||||||||||||||||||||
| --- | ||||||||||||||||||||||||
| ^(3)^ Efficiency ratio is calculated as noninterest expense divided by the sum of net interest income and noninterest income. On a non-GAAP operating basis, the Company excludes gains (losses) on sales of investment securities. | ||||||||||||||||||||||||
| ^(4)^<br> Some of the financial measures discussed throughout the press release are "non-GAAP financial measures." In accordance<br> with SEC rules, the Company classifies a financial measure as being a non-GAAP financial measure if that financial measure excludes<br> or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded,<br> as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP in our statements of<br> income, balance sheets or statements of cash flows. | ||||||||||||||||||||||||
| FVCBankcorp, Inc. | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| Summary Consolidated Statements of Condition | ||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| % Change | % Change | |||||||||||||||||||||||
| Current | From | |||||||||||||||||||||||
| 3/31/2021 | 12/31/2020 | Quarter | 3/31/2020 | Year Ago | ||||||||||||||||||||
| Cash and due from banks | $ | 16,593 | $ | 20,835 | -20.4 | % | $ | 23,158 | -28.3 | % | ||||||||||||||
| Interest-bearing deposits at other<br> financial institutions | 203,285 | 120,228 | 69.1 | % | 62,402 | 225.8 | % | |||||||||||||||||
| Investment securities | 135,368 | 126,415 | 7.1 | % | 126,978 | 6.6 | % | |||||||||||||||||
| Restricted stock, at cost | 6,377 | 6,563 | -2.8 | % | 6,608 | -3.5 | % | |||||||||||||||||
| Loans held for sale, at fair value | -- | -- | 0.0 | % | 9,640 | -100.0 | % | |||||||||||||||||
| Loans, net of fees: | ||||||||||||||||||||||||
| Commercial real estate | 782,005 | 788,218 | -0.8 | % | 761,574 | 2.7 | % | |||||||||||||||||
| Commercial and industrial | 109,737 | 119,200 | -7.9 | % | 106,302 | 3.2 | % | |||||||||||||||||
| Paycheck protection program | 163,470 | 152,978 | 6.9 | % | -- | 100.0 | % | |||||||||||||||||
| Commercial construction | 218,507 | 221,523 | -1.4 | % | 220,798 | -1.0 | % | |||||||||||||||||
| Consumer real estate | 159,790 | 168,531 | -5.2 | % | 183,170 | -12.8 | % | |||||||||||||||||
| Consumer nonresidential | 13,403 | 15,633 | -14.3 | % | 10,298 | 30.2 | % | |||||||||||||||||
| Total loans, net of fees | 1,446,912 | 1,466,083 | -1.3 | % | 1,282,142 | 12.9 | % | |||||||||||||||||
| Allowance for loan losses | (14,421 | ) | (14,958 | ) | -3.6 | % | (11,226 | ) | 28.5 | % | ||||||||||||||
| Loans, net | 1,432,491 | 1,451,125 | -1.3 | % | 1,270,916 | 12.7 | % | |||||||||||||||||
| Premises and equipment, net | 1,520 | 1,654 | -8.1 | % | 2,090 | -27.3 | % | |||||||||||||||||
| Goodwill and intangibles, net | 8,277 | 8,357 | -1.0 | % | 8,612 | -3.9 | % | |||||||||||||||||
| Bank owned life insurance (BOLI) | 38,425 | 38,178 | 0.6 | % | 37,352 | 2.9 | % | |||||||||||||||||
| Other real estate owned | 3,866 | 3,866 | 0.0 | % | 3,866 | 0.0 | % | |||||||||||||||||
| Other assets | 38,315 | 44,260 | -13.4 | % | 50,989 | -24.9 | % | |||||||||||||||||
| Total Assets | $ | 1,884,517 | $ | 1,821,481 | 3.5 | % | $ | 1,602,611 | 17.6 | % | ||||||||||||||
| Deposits: | ||||||||||||||||||||||||
| Noninterest-bearing | $ | 501,812 | $ | 399,062 | 25.7 | % | $ | 287,801 | 74.4 | % | ||||||||||||||
| Interest-bearing checking | 534,436 | 537,834 | -0.6 | % | 309,458 | 72.7 | % | |||||||||||||||||
| Savings and money market | 288,452 | 282,544 | 2.1 | % | 271,547 | 6.2 | % | |||||||||||||||||
| Time deposits | 234,939 | 263,053 | -10.7 | % | 350,712 | -33.0 | % | |||||||||||||||||
| Wholesale deposits | 35,000 | 50,000 | -30.0 | % | 124,526 | -71.9 | % | |||||||||||||||||
| Total deposits | 1,594,639 | 1,532,493 | 4.1 | % | 1,344,044 | 18.6 | % | |||||||||||||||||
| Other borrowed funds | 25,000 | 25,000 | 0.0 | % | 25,000 | 0.0 | % | |||||||||||||||||
| Subordinated notes, net of issuance<br> costs | 44,116 | 44,085 | 0.1 | % | 24,507 | 80.0 | % | |||||||||||||||||
| Other liabilities | 25,833 | 30,403 | -15.0 | % | 31,372 | -17.7 | % | |||||||||||||||||
| Stockholders’ equity | 194,929 | 189,500 | 2.9 | % | 177,688 | 9.7 | % | |||||||||||||||||
| Total Liabilities & Stockholders' | ||||||||||||||||||||||||
| Equity | $ | 1,884,517 | $ | 1,821,481 | 3.5 | % | $ | 1,602,611 | 17.6 | % | ||||||||||||||
| FVCBankcorp, Inc. | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| Summary Consolidated Income Statements | ||||||||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||
| % Change | % Change | |||||||||||||||||||||||
| Current | From | |||||||||||||||||||||||
| 3/31/2021 | 12/31/2020 | Quarter | 3/31/2020 | Year Ago | ||||||||||||||||||||
| Net interest income | $ | 14,043 | $ | 14,119 | -0.5 | % | $ | 12,211 | 15.0 | % | ||||||||||||||
| Provision for loan losses | -- | 500 | -100.0 | % | 1,066 | -100.0 | % | |||||||||||||||||
| Net interest income after provision for loan losses | 14,043 | 13,619 | 3.1 | % | 11,145 | 26.0 | % | |||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||
| Fees on loans | 20 | 34 | -41.2 | % | 396 | -94.9 | % | |||||||||||||||||
| Service charges on deposit accounts | 243 | 271 | -10.3 | % | 239 | 1.7 | % | |||||||||||||||||
| Gain on sale of securities available-for-sale | -- | -- | 0.0 | % | 97 | -100.0 | % | |||||||||||||||||
| Loss on loans held for sale | -- | -- | 0.0 | % | (451 | ) | -100.0 | % | ||||||||||||||||
| BOLI income | 248 | 264 | -6.1 | % | 283 | -12.4 | % | |||||||||||||||||
| Other fee income | 280 | 171 | 63.7 | % | 129 | 117.1 | % | |||||||||||||||||
| Total noninterest income | 791 | 740 | 6.9 | % | 693 | 14.1 | % | |||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||
| Salaries and employee benefits | 4,548 | 4,461 | 2.0 | % | 4,028 | 12.9 | % | |||||||||||||||||
| Occupancy and equipment expense | 807 | 804 | 0.4 | % | 855 | -5.6 | % | |||||||||||||||||
| Data processing and network administration | 563 | 562 | 0.2 | % | 434 | 29.7 | % | |||||||||||||||||
| State franchise taxes | 504 | 466 | 8.2 | % | 466 | 8.2 | % | |||||||||||||||||
| Professional fees | 354 | 251 | 41.0 | % | 225 | 57.3 | % | |||||||||||||||||
| Other operating expense | 1,106 | 1,341 | -17.5 | % | 1,201 | -7.9 | % | |||||||||||||||||
| Total noninterest expense | 7,882 | 7,885 | 0.0 | % | 7,209 | 9.3 | % | |||||||||||||||||
| Net income before income taxes | 6,952 | 6,474 | 7.4 | % | 4,629 | 50.2 | % | |||||||||||||||||
| Income tax expense | 1,383 | 1,460 | -5.3 | % | 896 | 54.4 | % | |||||||||||||||||
| Net Income | $ | 5,569 | $ | 5,014 | 11.1 | % | $ | 3,733 | 49.2 | % | ||||||||||||||
| Earnings per share - basic | $ | 0.41 | $ | 0.37 | 10.3 | % | $ | 0.27 | 51.1 | % | ||||||||||||||
| Earnings per share - diluted | $ | 0.38 | $ | 0.36 | 7.9 | % | $ | 0.26 | 49.8 | % | ||||||||||||||
| Weighted-average common shares outstanding - basic | 13,578,279 | 13,482,741 | 13,751,768 | |||||||||||||||||||||
| Weighted-average common shares outstanding - diluted | 14,536,449 | 14,123,593 | 14,595,447 | |||||||||||||||||||||
| Reconciliation of Net Income (GAAP) to Pre-Tax Pre-Provision Income (Non-GAAP): | ||||||||||||||||||||||||
| GAAP net income reported above | $ | 5,569 | $ | 5,014 | $ | 3,733 | ||||||||||||||||||
| Add: Provision for loan losses | -- | 500 | 1,066 | |||||||||||||||||||||
| Add: Income tax expense | 1,383 | 1,460 | 896 | |||||||||||||||||||||
| Pre-tax pre-provision income | $ | 6,952 | $ | 6,974 | $ | 5,695 | ||||||||||||||||||
| Earnings per share - basic (non-GAAP operating earnings) | $ | 0.51 | $ | 0.52 | $ | 0.41 | ||||||||||||||||||
| Earnings per share - diluted (non-GAAP operating earnings) | $ | 0.48 | $ | 0.49 | $ | 0.39 | ||||||||||||||||||
| Return on average assets (non-GAAP operating earnings) | 1.49 | % | 1.54 | % | 1.47 | % | ||||||||||||||||||
| Return on average equity (non-GAAP operating earnings) | 14.40 | % | 14.85 | % | 12.64 | % | ||||||||||||||||||
| FVCBankcorp, Inc. | ||||||||||||||||||||||||
| --- | ||||||||||||||||||||||||
| Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities | ||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 3/31/2021 | 12/31/2020 | 3/31/2020 | ||||||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | ||||||||||||||||
| Balance | Income/Expense | Yield | Balance | Income/Expense | Yield | Balance | Income/Expense | Yield | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans<br> receivable, net of fees ^(1)^ | ||||||||||||||||||||||||
| Commercial<br> real estate | $ | 782,639 | $ | 8,396 | 4.29 | % | $ | 797,575 | $ | 8,677 | 4.35 | % | $ | 756,989 | $ | 9,026 | 4.77 | % | ||||||
| Commercial<br> and industrial | 111,360 | 1,344 | 4.83 | % | 110,766 | 1,677 | 6.06 | % | 110,186 | 1,570 | 5.70 | % | ||||||||||||
| Paycheck<br> protection program | 162,066 | 1,832 | 4.52 | % | 164,302 | 1,211 | 2.95 | % | -- | -- | 0.0 | % | ||||||||||||
| Commercial<br> construction | 220,835 | 2,427 | 4.40 | % | 222,302 | 2,533 | 4.56 | % | 220,104 | 2,802 | 5.09 | % | ||||||||||||
| Consumer<br> real estate | 165,211 | 1,676 | 4.06 | % | 173,642 | 1,765 | 4.07 | % | 184,010 | 2,122 | 4.61 | % | ||||||||||||
| Consumer<br> nonresidential | 14,199 | 258 | 7.27 | % | 16,534 | 326 | 7.88 | % | 10,680 | 129 | 4.81 | % | ||||||||||||
| Total loans | 1,456,310 | 15,933 | 4.38 | % | 1,485,121 | 16,189 | 4.36 | % | 1,281,969 | 15,649 | 4.88 | % | ||||||||||||
| Investment<br> securities ^(2)(3)^ | 128,988 | 806 | 2.50 | % | 113,665 | 912 | 3.21 | % | 143,634 | 971 | 2.70 | % | ||||||||||||
| Loans held for sale, at fair<br> value | -- | -- | 0.0 | % | -- | -- | 0.0 | % | 10,492 | 236 | 8.99 | % | ||||||||||||
| Interest-bearing deposits at | ||||||||||||||||||||||||
| other<br> financial institutions | 182,891 | 45 | 0.10 | % | 111,559 | 34 | 0.12 | % | 22,213 | 81 | 1.48 | % | ||||||||||||
| Total interest-earning<br> assets | 1,768,189 | 16,784 | 3.80 | % | 1,710,345 | 17,135 | 4.01 | % | 1,458,308 | 16,937 | 4.65 | % | ||||||||||||
| Non-interest earning assets: | ||||||||||||||||||||||||
| Cash and due from banks | 15,346 | 17,147 | 13,431 | |||||||||||||||||||||
| Premises and equipment, net | 1,610 | 1,717 | 1,941 | |||||||||||||||||||||
| Accrued<br> interest and other assets | 96,226 | 97,765 | 87,560 | |||||||||||||||||||||
| Allowance for loan losses | (14,894 | ) | (14,676 | ) | (10,282 | ) | ||||||||||||||||||
| Total Assets | $ | 1,866,477 | $ | 1,812,298 | $ | 1,550,958 | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest checking | $ | 523,712 | $ | 717 | 0.56 | % | $ | 458,142 | $ | 702 | 0.61 | % | $ | 273,976 | 881 | 1.29 | % | |||||||
| Savings and money market | 278,774 | 324 | 0.47 | % | 283,776 | 363 | 0.51 | % | 227,497 | 635 | 1.12 | % | ||||||||||||
| Time deposits | 246,486 | 917 | 1.51 | % | 284,634 | 1,185 | 1.66 | % | 353,809 | 2,080 | 2.35 | % | ||||||||||||
| Wholesale deposits | 45,778 | 43 | 0.38 | % | 67,935 | 57 | 0.33 | % | 121,047 | 580 | 1.92 | % | ||||||||||||
| Total interest-bearing<br> deposits | 1,094,750 | 2,001 | 0.74 | % | 1,094,487 | 2,307 | 0.84 | % | 976,329 | 4,176 | 1.72 | % | ||||||||||||
| Other borrowed funds | 25,000 | 83 | 1.35 | % | 25,023 | 86 | 1.37 | % | 39,141 | 149 | 1.53 | % | ||||||||||||
| Subordinated<br> notes, net of issuance costs | 44,096 | 651 | 5.99 | % | 41,526 | 617 | 5.91 | % | 24,494 | 395 | 6.49 | % | ||||||||||||
| Total<br> interest-bearing liabilities | 1,163,846 | 2,735 | 0.95 | % | 1,161,036 | 3,010 | 1.03 | % | 1,039,964 | 4,720 | 1.83 | % | ||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing deposits | 479,831 | 432,826 | 304,364 | |||||||||||||||||||||
| Other liabilities | 29,625 | 30,561 | 26,476 | |||||||||||||||||||||
| Stockholders’ equity | 193,175 | 187,875 | 180,154 | |||||||||||||||||||||
| Total Liabilities and Stockholders'<br> Equity | $ | 1,866,477 | $ | 1,812,298 | $ | 1,550,958 | ||||||||||||||||||
| Net Interest Margin | 14,049 | 3.22 | % | 14,125 | 3.28 | % | 12,217 | 3.37 | % | |||||||||||||||
| ^(1)^ Non-accrual loans are included in average balances. | ||||||||||||||||||||||||
| --- | ||||||||||||||||||||||||
| ^(2)^ The average yields for investment securities are reported on a fully<br> taxable-equivalent basis at a rate of 21% . | ||||||||||||||||||||||||
| ^(3)^ The average balances for investment securities includes restricted stock. |