8-K
FVCBankcorp, Inc. (FVCB)
8-K
2022-06-02
For: 2022-06-02
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April 11, 2026
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):
June 2, 2022
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) |
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| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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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 7.01 | Regulation FD Disclosure |
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On June 2, 2022, FVCBankcorp, Inc. (the “Company”) posted a presentation on its Investor Relations website at www.fvcbank.com. Members of the Company’s management will use the presentation during the second quarter of 2022 in connection with meetings with investors, analysts and other interested parties. A copy of the investor presentation materials is furnished as an exhibit to this report and is incorporated by reference into this Item 7.01.
| Item 9.01 | Financial Statements and Exhibits. |
|---|---|
| (d) | Exhibits. |
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| Exhibit No. | Description |
| --- | --- |
| 99.1 | Investor Presentation Materials |
| 104 | The cover page from the Company’s Form 8-K with a date on report of June 2, 2022, formatted in Inline Extensible<br>Business Reporting Language. |
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: June 2, 2022
Exhibit 99.1
| Summer 2022<br>NASDAQ: FVCB |
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| Forward-Looking Statements; Non-GAAP Information<br>This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,<br>as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or the results of operations and policies of FVCBankcorp, Inc. (“FVCB”) and<br>regarding general economic conditions. These forward-looking statements include, but are not limited to, statements about (i) FVCB’s plans, obligations, expectations and intentions and (ii)<br>other statements that are not historical facts. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,”<br> “estimates,” “potential,” “continue,” “should,” and similar words or phrases. These statements are based upon the expectations, beliefs and assumptions of the management of FVCB as to<br>the expected outcomes of future events, current and anticipated economic conditions, nationally and in FVCB’s markets, and their impact on the operations and assets of FVCB, interest<br>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 risks and uncertainties.<br>Factors that could cause results and outcomes to differ materially include, among others, expected growth opportunities; changes in FVCB’s operating or expansion strategy; availability of<br>and costs associated with obtaining timely sources of liquidity, the ability to maintain credit quality, possible adverse rulings, judgments, settlements and other outcomes of pending<br>litigation, the ability of FVCB to collect amounts due under loan agreements, changes in consumer preferences, effectiveness of FVCB’s interest rate risk management strategies, laws and<br>regulations affecting financial institutions in general or relating to taxes, the effect of pending or future legislation, changes in interest rates and capital markets, inflation, customer<br>borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions and<br>other risk factors described in FVCB’s filings with the SEC. For a discussion of these and other factors, please review the “Cautionary Note Regarding Forward-Looking Statements” and “Risk<br>Factors” in FVCB’s Annual Report on Form 10-K for the year ended December 31, 2021. Because of these uncertainties and the assumptions on which this discussion and the forward-looking<br>statements are based, actual future operations and results in the future may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on such<br>forward-looking statements. Past results are not necessarily indicative of future performance. FVCB assumes no obligation to revise, update, or clarify forward-looking statements to reflect<br>events or conditions after the date of this release.<br>Use of Non-GAAP Financial Measures<br>This presentation includes certain financial information that is calculated and presented on the basis of methodologies that are not in accordance with U.S. Generally Accepted Accounting<br>Principles (“GAAP”). These non-GAAP financial measures include pre-tax pre-provision return on average assets, pre-tax pre-provision return on average equity, tangible book value, tangible<br>common equity, tangible assets and efficiency ratio. The non-GAAP financial measures included in this presentation do not replace the presentation of FVCB’s GAAP financial results, should<br>not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. These<br>measurements provide supplemental information to assist management, as well as certain investors, in analyzing FVCB’s core business, capital position and results of operations. FVCB has<br>chosen to provide this additional information to investors because it believes that these measures are meaningful in assisting investors to evaluate FVCB’s core ongoing operations, results<br>and financial condition. Reconciliations of the non-GAAP financial measures provided in this presentation to the most directly comparable GAAP measures can be found in the appendix of<br>this presentation.<br>2 |
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| 3<br>(1) Financial data as of the quarter ended March 31, 2022 unless otherwise noted<br>(2) Non-GAAP financial measure. See the reconciliation included in the appendix to this presentation.<br>(3) Nonperforming assets defined as nonaccruals, loans past-due 90 days or more, and other real estate owned.<br>Company Snapshot<br>2<br>1<br>3<br>5<br>4<br>8<br>6<br>7<br>9<br>LPO<br>Address City , State<br>Total Deposits<br>($000)<br>5-Year CAGR<br>(%)<br>1 11325 Random Hills Rd Fairfax, VA 868,291 25.48<br>2 7900 Sudley Rd Manassas, VA 398,610 21.41<br>3 11260 Roger Bacon Dr Reston, VA 221,807 11.32<br>4 2500 Wilson Blvd Arlington, VA 143,326 13.00<br>5 6975 Springfield Blvd Springfield, VA 59,498 9.63<br>6 224 Albemarle St Baltimore, MD 33,031 16.78<br>7 6929 Arlington Rd Bethesda, MD 33,644 22.99<br>8 1600 E Gude Dr Rockville, MD 19,728 (14.59)<br>9 1301 9th St NW Washington, DC 41,420 (7.68)<br>Dollar values in thousands, except per share data<br>Financial Highlights ¹<br>Total Assets $2,090,121<br>Gross Loans $1,515,644<br>Total Deposits $1,819,355<br>Tangible Common Equity $192,891<br>TCE / TA 9.23%<br>ROAA 1.30%<br>MRQ Pre-tax pre-provision ROAA 1.64%<br>ROAE 12.63%<br>MRQ Pre-tax pre-provision ROAE 15.96%<br>MRQ Net Interest Margin 3.15%<br>MRQ Operating Efficiency Ratio 49.88%<br>NPAs2 / Assets 0.17%<br>Capitalization Detail ¹<br>Common Shares Outstanding (actual) 13,970,623<br>Options Outstanding 1,328,304<br>Average Weighted Strike Price of Options $8.51<br>Restricted Stock Units (Exluded from share count) 123,796<br>Basic Tangible Book Value per Share $13.81<br>MRQ EPS Annualized $1.80 |
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| An Attractive Investment Opportunity in the DC and Baltimore MSAs<br>4<br> •Sixth largest MSA with favorable demographics, economic trends and business investments<br> •Recent consolidation in local markets has created growth opportunities for remaining firms<br> •Organic CAGRs in excess of 14% for assets, loans, deposits and pre-tax income since 2016<br> •Pre-tax pre-provision ROAA and ROAE of 1.64% and 15.96%, respectively, for the most recent quarter<br> •Commercial focused lending portfolio with small average loan balances that further mitigates risk<br> •Emphasis on credit administration and risk management; comprehensive policies and procedures<br>enabling the maintenance of strong asset quality<br> •Strategy of full service relationship banking helps support FVCB’s margin<br> •Treasury management tools allow FVCB to compete against larger competitors and attract<br>sophisticated commercial and government customers<br> •Hands on management team with intimate knowledge of clients, credits, markets and employees<br> •Proven track record of growth at varying institutions within the DC MSA<br>Well positioned in one of the most attractive banking markets in the U.S.<br>Track record of exceptional growth and strong profitability<br>Disciplined, low risk commercial balance sheet<br>Strong core deposit base<br>Experienced leadership team |
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| Technology Deployment Driving Top-Tier Performance<br>Embracing technology to capitalize on opportunities to grow market share and improve efficiencies<br>5<br>*FVCbankcorp, Inc. has invested in KlariVis<br>Strategically<br>Aligned<br>Solutions<br> • Loan Origination Platform provides paperless workflow solution and automates approval<br>process<br> • Automated borrowing base certification process (Accounts Receivable Financing) streamlines<br>process for customer and lender<br> • Automated warehouse lending platform from loan approval to funding to general ledger<br>recordation allows timely response with limited resources<br> • Automated construction loan functionality for lender, borrower, title insurance and inspector<br>integrated with core system enhances risk monitoring and facilitates funding of draws<br> • Loan decisioning module for small business lending to expedite underwriting function<br> • Online deposit account opening for consumers integrated with core system<br> • Enterprise-wide data analytics functionality (KlariVis)*<br> • provides immediate access to frontline to better communicate and respond to customers<br> • provides dash boards to easily analyze activity for all areas of the Bank<br> • provides board reports without requiring preparation<br> • Robotic Process Automation used for internal processes have reduced risk of error and reduced<br>processing time from hours to minutes. Collectively hundreds of hours have been saved on<br>daily, weekly, monthly and periodic repetitive manual processes<br> • Improved payment system for customers with implementation of Zelle |
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| Well Positioned In One of the Most Attractive Markets in the U.S.<br>6<br>Top 10 MSAs By Population Vibrant Economy<br> • Washington D.C. and Baltimore MSAs contain 30 and 7<br>Fortune 1000 companies, respectively<br> • Over 3.3 million private sector employees and nearly 1<br>million public sector employees in the Washington D.C. and<br>Baltimore MSAs<br> • Virginia was ranked the 1st best state for business in 2021 by<br>CNBC<br> • Both states have large workforce populations spanning<br>several generational demographic cohorts<br> • 9 of the top 30 wealthiest counties in the nation are located<br>in Washington DC and Baltimore MSAs<br> • Numerous Government Contracting entities support<br>government functions<br> • With over 30 banks acquired in these markets over the past<br>five years, there are limited investment opportunities to<br>invest in community banks in this market<br>Source: S&P Global Market Intelligence; FDIC, Proximityone.com, DC Department of Employment Services, Maryland<br>Department of Labor, Licensing and Regulation, US News and World Report<br>Market Name Population<br>2027<br>Projected<br>Population<br>Median<br>Household<br>Income ($)<br>2027 Projected<br>Median<br>Household<br>Income ($)<br>New York-Newark-Jersey City 20,006,203 21,045,615 92,717 104,070<br>Los Angeles-Long Beach-Anaheim 13,207,559 13,343,788 86,804 98,253<br>Chicago-Naperville-Elgin 9,535,847 9,657,030 83,335 93,568<br>Dallas-Fort Worth-Arlington 7,826,862 8,291,685 81,205 90,829<br>Houston-The Woodlands-Sugar Land 7,273,204 7,711,294 74,859 82,549<br>Washington-Arlington-Alexandria 6,441,102 6,702,073 115,601 125,882<br>Philadelphia-Camden-Wilmington 6,265,252 6,486,448 81,746 90,787<br>Miami-Fort Lauderdale-Pompano Beach 6,227,541 6,474,537 67,696 77,065<br>Atlanta-Sandy Springs-Alpharetta 6,206,533 6,540,650 79,388 88,792<br>Boston-Cambridge-Newton, MA-NH 5,011,582 5,238,768 103,847 116,543 |
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| Colombo contribution<br>7<br>Total Assets ($M) Total Loans, Net of Fees ($M) Total Deposits ($M)<br>CAGR: 17.5% CAGR: 13.1% CAGR: 17.2%<br>Organic YOY Growth Rate Organic YOY Growth Rate(1) Organic YOY Growth Rate<br>Organic Growth<br>Track Record of Exceptional Growth and Strong Profitability<br>Relationship Driven Model Continues to Create Balance Sheet Leverage<br>15.8% 9.5% 24.6% 18.5% 21.0% -5.1% 15.8% 11.8% 14.2% 3.3% 12.4% 1.5% 19.6.8% 10.3% 10.8% 19.1% 23.0% -3.5% |
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| 8<br>Positioning For Future Growth<br> • 19 loan officers with deep connections to the markets;<br>average experience of over 20 years<br> • Focused effort on commercial, real estate and small<br>business, including government contracting.<br> • Expanded focus on government contracting provides large<br>source of growth potential<br> • Small average loan balance helps mitigate risk<br> ‒ C&I average loan size: $291,000<br> ‒ CRE average loan size: $1.67 million<br>Disciplined, Low-Risk Commercial Balance Sheet<br>Well Diversified Commercial Portfolio<br>C&I Portfolio ($000s) Balance % of Portfolio Yield<br>Commercial and Industrial $194,216 12.8% 4.07 %<br>Owner Occupied CRE $201,527 13.3% 4.36 %<br>Total C&I $395,743 26.2% 4.22 %<br>Commercial Real Estate Portfolio Balance % of Portfolio Yield<br>Nonowner Occupied CRE $607,096 40.1% 4.03 %<br>Multifamily $119,555 7.9% 3.90 %<br>Construction & Development $180,729 11.9% 4.29 %<br>Total CRE $907,380 60.0% 4.06 %<br>Other Loans Balance % of Portfolio Yield<br>Residential 1-4 $79,030 5.2% 4.07 %<br>Residential 1-4 Investment Property $79,340 5.2% 4.21 %<br>Home Equity Lines $40,785 2.7% 3.82 %<br>Other Loans $10,197 0.7% 6.21 %<br>Total Loans $1,512,475 4.23 %<br>($000s) % of Total Loans LTV (Maximum Bank DSC (Minimum<br>CRE Type Balance (excl. PPP Loans) Guidelines) Bank Guidelines)<br>Multi-family $119,864 10.81% 80% 1.2<br>Retail $210,391 18.97% 75% 1.2<br>Office $96,449 8.70% 75% 1.2<br>Hotel $58,012 5.23% 65% 1.3<br>Construction $125,687 11.33% 75% -<br>AD&C $4,878 0.44% 65% -<br>Land $50,164 4.52% 60% -<br>Industrial $90,039 8.12% 75% 1.2<br>Mixed Use $71,687 6.46% 75% 1.2<br>Special Use $1,547 0.14% 65% 1.05 - 1.30<br>Other $78,662 7.09% 65%-80% 1.2 -1.3<br>Total Non Owner Occupied $907,380 |
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| (1) Non-GAAP financial measure.<br>(2) Excludes one-time transaction costs of $3.3 million for 2018, $0.13 million for 2019, $0.68 million<br>for 2020, $1.8 million for 2021, and $125 thousand for 2022 Q1.<br>9<br>Pre-Tax Pre-Provision Income ($M)1 Efficiency Ratio (%)1<br>Net Interest Margin (%)<br>Track Record of Exceptional Growth and Strong Profitability<br>Stable Margin and Improving Efficiency Produce An Attractive Earnings Stream |
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| 10<br>Net Charge-Offs (Recoveries) / Average Loans<br>Asset Quality Trends Over Time¹ Well-Reserved Loan Portfolio<br>(1) Nonperforming assets defined as nonaccruals, loans past-due 90 days or more, and other real estate owned<br>($000s)<br>Nonperforming Loans (NPLs)<br>OREO<br>Disciplined, Low-Risk Commercial Balance Sheet<br>Proven History of Strong Credit Metrics<br>($000s)<br>ALLL Balance at 12/31/2021 $13,829<br>Net Charge-Offs (416)<br>Provision for Loan Losses $350<br>ALLL Balance at 03/31/2022 $13,763<br>Remaining Fair Value Discount $677<br>Total Effective Reserve $14,440<br>Loans, Net of Fees (excluding PPP Loans) at 03/31/2022 $1,512,475<br>ALLL Coverage 0.91%<br>Remaining Mark Coverage 0.04%<br>Effective Reserve Coverage 0.95% |
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| Strong Core Deposit Base<br> • Full service relationships continue to drive<br>core deposit growth<br> ‒ Approximately $1.00 billion in loans,<br>or 74% of the commercial loan<br>portfolio, retain a deposit relationship<br>with the bank<br> • Growth in commercial accounts provide<br>cross selling opportunities with FVCB’s<br>technology investment<br> ‒ $1.29 billion in commercial deposits,<br>across 6,600 accounts, with an<br>average rate of 0.23%<br> ‒ Treasury management tools and high-<br>touch service allows FVCB to compete<br>for larger clients<br> • $84.8 million in public funds at an average<br>rate of 0.35%<br>11<br>Deposit Portfolio Composition<br>As of 03/31/2017 As of 3/31/2022<br>03/31/17 Cost of Deposits: 0.89%<br>Deposit Composition By Delivery Channel<br>MRQ Cost of Deposits: 0.42 %<br>($000s)<br>Commercial Retail Public Wholesale<br>Balance Wtd. Cost Balance Wtd. Cost Balance Wtd. Cost Balance Wtd. Cost<br>DDA $ 513,441 – $ 32,415 0.00 % $ 00 – $ 00 –<br>Now / Transactions $ 664,227 0.28 % $ 16,173 0.13 % $ 100 0.35 % $ 00 –<br>Savings / MMDA $ 223,074 0.36 % $ 111,472 0.32 % $ 46,879 0.42 % $ 00 –<br>Time Deposits $ 73,954 0.93 % $ 64,848 0.71 % $ 37,773 0.26 % $ 35,000 0.50 %<br>Total $ 1,474,696 0.23 % $ 224,908 0.37 % $ 84,752 0.35 % $ 35,000 0.50 %<br>Total Deposits $ 1,819,355 0.42 % |
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| Experienced Leadership Team<br>Management Team With Strong Ties to The Market…<br>12<br>FVCB’s executive management team consists of seven officers with over 203 years of combined<br>experience in the Washington, D.C. metropolitan area<br> • David Pijor was the founding Chairman of the Board of James Monroe Bancorp, which opened in<br>June 1998 in Arlington, VA, and was instrumental in the growth and strategic direction of the bank<br>until its sale to Mercantile Bankshares Corporation in 2006 for $143.8 million<br>Name Current Position Prior Community Bank Experience<br>Years<br>Years at FVCB<br>Experience<br>David W. Pijor Chairman & CEO, Company and Bank James Monroe Bancorp 22 14<br>Patricia A. Ferrick President, Company and Bank Southern Financial Bancorp, Potomac Bank of Virginia 34 14<br>B. Todd Dempsey EVP and Chief Operating Officer, Company and Bank United Bank 40 14<br>William G. Byers EVP and Chief Lending Officer, Company and Bank Middleburg Bank, Century National Bank 27 10<br>Michael G. Nassy EVP and Chief Credit Officer, Company and Bank City First Bank of DC, National Cooperative Bank 21 9<br>Sharon L. Jackson EVP and Chief Banking Officer, Company and Bank MainStreet Bank 35 5<br>Jennifer L. Deacon EVP and Chief Financial Officer, Company and Bank Cardinal Financial Corp. 24 4 |
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| 13<br>David Pijor<br>Chairman &<br>CEO<br> • Served as Chairman of the Board and<br>CEO of FVCB since its organization<br> • Lead organizer, Chairman of the Board<br>and General Counsel of James Monroe<br>Bank from its inception to sale to<br>Mercantile Bankshares<br>L. Burwell<br>Gunn Jr.<br>Vice<br>Chairman<br> • Served as Vice Chairman of the Board<br>since 2015<br> • Served as President and COO of FVCB<br>from 2008 to 2013<br> • Served as CEO and President of Cardinal<br>Bank from 1997 to 1999<br> • Joined the Board January 2021<br> • Founder, President and Chief Executive Officer<br>of Inoventures, LLC and SciMetrika, LLC, a<br>subsidiary of Inoventures, LLC<br>Bio Bio<br>Patricia Ferrick<br>President &<br>Director<br>Scott Laughlin<br>Director<br>Tom Patterson<br>Director<br>Devin Satz<br>Director<br>Larry Schwartz<br>Director<br>Meena Krishnan<br>Director<br>Sidney Simmonds<br>Director<br>Daniel Testa<br>Director<br>Phillip Wills<br>Director<br>Steven Wiltse<br>Director<br> • Manages various Wills family real estate<br>development firms<br> • Co-founded Church Investments and<br>Consolidated Green Services<br> • President of Simmonds & Klima, Ltd<br> • Served as Chairman of the Board at 1st<br>Commonwealth Bank of Virginia<br> • Served as Director of Bank of Northern Virginia<br> • Owner, President and CEO of TCI since 1980<br> • Serves as Director of Advanced Solutions<br>International<br> • Partner and Co-founder of Argy, Wiltse &<br>Robinson, P.C.<br> • Served as Director at Cardinal Financial Corp<br> • Serves as President of the Bank and Company<br> • CFO and EVP from FVCB’s inception until June<br>of 2017<br> • Former auditor at KPMG<br> • Founder of Synchronous Knowledge, Inc. until<br>its sale to IMS Health Incorporated in 2005<br> • Retired from the U.S. Air Force in 1999<br> • Co-owner of LMO Advertising<br> • Advisor at First Juice, Inc. and Ardent Capital<br> • Former Attorney with Linowes and Blocher, LLP<br> • Served as Director at James Monroe Bank<br> • Vice President of Friendship Place non-profit<br> • Retired Partner with PBMares LLP<br> • Former Director of Annapolis Bancorp<br>Experienced Leadership Team<br> …Governed and Supported By An Exceptional Board |
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| Appendix: Additional Materials<br>14 |
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| Appendix: Non-GAAP Financial Measures<br>15<br>2016 2017 2018 2019 2020 2021 2021 2022<br>Net Income<br>Net income (GAAP) 6,932 $ 7,690 $ 10,869 $ 15,828 $ 15,501 $ 21,933 $ 5,569 $ 6,613 $<br>Add: Provision for loan losses 1,471 1,200 1,920 1,720 5,016 (500) - 350<br>Add: Merger-related expenses - - 3,339 133 - 1,445 - 125<br>Add: Impairment loss related to branch closures - - - - 676 - - -<br>Add: Income tax expense 3,571 6,846 2,238 4,184 4,156 6,276 1,383 1,270<br>Pre-tax Pre-provision income (non-GAAP) 11,974 $ 15,736 $ 18,366 $ 21,865 $ 25,349 $ 29,154 $ 6,952 $ 8,358 $<br>Earnings per share (EPS)<br>Weighted average common shares outstanding, diluted 10,922 11,545 12,822 14,825 14,134 14,581 14,536 14,714<br>EPS - diluted (GAAP) 0.63 $ 0.67 $ 0.85 $ 1.07 $ 1.10 $ 1.50 $ 0.38 $ 0.45 $<br>Pre-tax pre-provision EPS -diluted (non-GAAP) 1.10 $ 1.36 $ 1.43 $ 1.47 $ 1.79 $ 2.00 $ 0.48 $ 0.57 $<br>Return on average assets (ROAA)<br>Average assets 790,432 $ 955,892 $ 1,159,249 $ 1,449,769 $ 1,708,862 $ 1,978,220 $ 1,866,477 $ 2,038,094 $<br>ROAA (GAAP) 0.88% 0.80% 0.94% 1.09% 0.91% 1.11% 1.19% 1.30%<br>Pre-tax pre-provision ROAA (GAAP) 1.51% 1.65% 1.58% 1.51% 1.48% 1.47% 1.49% 1.64%<br>Return on average equity (ROAE)<br>Average equity 77,829 $ 89,056 $ 116,992 $ 169,814 $ 182,818 $ 200,886 $ 193,175 $ 209,482 $<br>ROAE (GAAP) 8.91% 8.63% 9.29% 9.32% 8.48% 10.92% 11.53% 12.63%<br>Pre-tax pre-provision ROAE (GAAP) 15.39% 17.67% 15.70% 12.88% 13.87% 14.51% 14.40% 15.96%<br>For the Years Ended December 31, For the Three Months Ended March 31,<br>Pre-Tax Pre-Provision Income & Other Financial Metrics<br>(Dollars and shares in thousands, except per share data) |
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| Appendix: Non-GAAP Financial Measures<br>16<br>2016 2017 2018 2019 2020 2021 2021 2022<br>Tangible common equity (TCE)<br>Shareholders' equity (GAAP) 79,811 $ 98,283 $ 158,336 $ 179,078 $ 189,500 $ 209,796 $ 194,929 $ 200,873 $<br>Less: Intangible assets 119 99 8,443 8,689 8,357 8,052 8,277 7,982<br>TCE (non-GAAP) 79,692 $ 98,184 $ 149,893 $ 170,389 $ 181,143 $ 201,744 $ 186,652 $ 192,891 $<br>Book value per share (GAAP) 7.84 $ 9.04 $ 11.55 $ 12.88 $ 14.03 $ 15.28 $ 14.29 $ 14.38 $<br>Tangible book value per share (non-GAAP) 7.83 $ 9.03 $ 10.93 $ 12.26 $ 13.41 $ 14.70 $ 13.69 $ 13.81 $<br>For the Years Ended December 31, For the Three Months Ended March 31,<br>Tangible Common Equity & Tangible Book Value<br>(Dollars in thousands, except per share data)<br>2016 2017 2018 2019 2020 2021 2021 2022<br>Noninterest expense (GAAP) 16,446 $ 19,346 $ 26,448 $ 28,877 $ 30,838 $ 34,540 $ 7,882 $ 8,442 $<br>Less: Merger-related expenses - - 3,339 133 - 1,445 - 125<br>Less: Impairment loss related to branch closures - - - - 676 - - -<br>Adjusted operating noninterest expense (non-GAAP) 16,446 $ 19,346 $ 23,109 $ 28,744 $ 30,162 $ 33,095 $ 7,882 $ 8,317 $<br>Net interest income (GAAP) 27,200 $ 32,107 $ 39,814 $ 48,063 $ 52,620 $ 57,947 $ 14,043 $ 15,051 $<br>Noninterest income (GAAP) 1,220 2,975 1,661 2,546 2,891 4,302 791 1,624<br>Efficiency ratio (GAAP) 57.87% 55.15% 63.77% 57.06% 55.55% 55.49% 53.13% 50.63%<br>Adjusted operating efficiency ratio (non-GAAP) 57.87% 55.15% 55.72% 56.80% 54.34% 53.17% 53.13% 49.88%<br>For the Years Ended December 31, For the Three Months Ended March 31,<br>Adjusted Operating Efficiency Ratio<br>(Dollars in thousands) |
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| Financial Highlights<br>17<br>(1) Performance ratios presented are calculated using annualized GAAP net income.<br>(2) Excludes one-time transaction costs of $3.3 million for 2018, $0.13 million for 2019, $0.68 million for 2020,<br>$1.8 million for 2021, and $125 thousand for 2022 Q1.<br>(3) Nonperforming assets defined as nonaccruals, loans past-due 90 days or more, and other real estate owned<br>(4) Nonperforming loans defined as nonaccruals and 90+ days past due<br>Financial Data as of 03/31/22<br>Dollars in Millions, Except Per Share Amounts 2018 2019 2020 2021 2022 Q1<br><br>Total Assets $1,153 $1,537 $1,821 $2,203 $2,090<br>Total Loans, Net of Fees $994 $1,271 $1,466 $1,504 $1,512<br>Total Deposits $1,024 $1,286 $1,532 $1,884 $1,819<br>Total Equity $158 $179 $190 $210 $209<br>Net Interest Income $39.8 $48.1 $52.6 $57.9 $15.1<br>Non Interest Income $1.7 $2.5 $2.9 $4.3 $1.6<br>Non Interest Expense $19.3 $28.9 $30.8 $34.5 $8.4<br>Net Income $10.9 $15.8 $15.5 $21.9 $6.6<br>Earnings Per Share $0.85 $1.07 $1.10 $1.50 $0.45<br>ROAA 1 0.94% 1.09% 0.91% 1.11% 1.30%<br>ROAE 1 9.29% 9.32% 8.48% 10.92% 12.63%<br>Efficiency Ratio 2 55.7% 57.1% 54.3% 53.2% 49.9%<br>Net Interest Margin 3.51% 3.48% 3.28% 3.09% 3.15%<br>NPAs 2 / Assets 0.57% 0.95% 0.52% 0.16% 0.17%<br>Reserves / Loans 0.81% 0.81% 1.02% 0.92% 0.91%<br>NPLs 3 / Assets 0.57% 0.70% 0.31% 0.16% 0.17%<br>NCO Ratio 0.05% 0.05% 0.02% 0.04% 0.11%<br>Tier 1 Leverage Ratio 11.79% 12.15% 11.65% 10.55% 10.96%<br>Income<br>Statement<br>Performance<br>Asset Quality<br>Bank Level<br>Capital Ratios<br>Balance<br>Sheet |
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| LOAN 5-YEAR HISTORY<br>18<br>For the Period Ended 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 3/31/2022<br>($000s)<br>C&I Portfolio<br>Commercial & Industrial $ 83,262 $ 121,864 $ 96,995 $ 265,866 $ 196,428 $ 194,216<br>Owner Occupied CRE 120,965 157,486 205,892 182,851 190,334 201,527<br>Total C&I $ 204,227 $ 279,350 $ 302,887 $ 448,717 $ 386,762 $ 395,743<br>Commercial Real Estate Portfolio<br>Nonowner Occupied CRE $ 296,166 $ 385,778 $ 481,835 $ 532,956 $ 597,889 $ 607,096<br>Multifamily 56,023 70,108 65,922 74,525 112,547 119,555<br>Construction & Development 122,729 153,046 214,827 221,469 190,917 180,729<br>Total CRE $ 474,918 $ 608,932 $ 762,584 $ 828,950 $ 901,353 $ 907,380<br>Other Loans<br>Home Equity Lines $ 82,819 $ 80,096 $ 69,530 $ 64,478 $ 45,780 $ 40,785<br>Residential 1-4 86,253 130,482 114,932 104,470 156,581 158,370<br>Other Loans 40,460 37,883 31,791 19,468 13,373 10,197<br>Total Other $ 209,532 $ 248,461 $ 216,253 $ 188,416 $ 215,734 $ 209,352<br>Total Loans $ 888,677 $ 1,136,743 $ 1,281,724 $ 1,466,083 $ 1,503,849 $ 1,512,475 |
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| FVCB Business Strategy<br>19<br>FVCB aims to capitalize on market opportunities while maintaining disciplined and comprehensive<br>credit underwriting. FVCB’s focus on providing high-touch, responsive, relationship-based client service<br>allows it to compete effectively and exceed the needs of customers.<br>Opportunity Blueprint for Success<br>Organic Growth<br> • Focus on relationships, generating “sticky” sustainable, core deposits<br> • Continue to bolster existing market share<br> • Hire seasoned lenders to scalable lending structure<br>Opportunistic<br>Growth<br> • Explore potential strategic combinations<br> • Cultivate relationships with institutional investors<br> • Capitalize on attracting experienced bankers and new customers due<br>to bank consolidation in local markets<br>Maintain Credit<br>Quality<br> • Strong risk management culture<br> • Disciplined underwriting<br> • Constantly managing and overseeing credit quality<br>Superior<br>Technology<br> • Leverage technology to improve efficiencies across bank processes<br> • Partnering with Fintechs to expand digital banking products and<br>services to attract larger, sophisticated commercial clients<br>Profitability<br> • Continued growth of return on assets and return on equity<br> • Enhance net interest income<br> • Leverage strong infrastructure to enhance efficient growth |
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| FVCB Franchise History<br>Since inception, FVCbank has successfully executed a strategic plan focused on organic growth and<br>opportunistic acquisitions without compromising asset quality or financial discipline<br>20<br>(1) $13.00 for existing shareholders, $13.50 for new shares offered to the public<br>Source: S&P Global Market Intelligence; Company documents<br>June 2013<br>Follow-On Offering #3<br>$21.9mm @ $13.50 per<br>share ($6.91 per share<br>split adjusted)<br>Q1 2010<br>Reached sustained<br>profitability<br>September 2010<br>Follow‐On Offering #1<br>$6.3mm @ $12.50 per<br>share ($6.40 per share<br>split adjusted)<br>2010 2013 2015 2016 2017 2012 2018<br>May / June 2016<br>Five for Four Stock Split<br>June 2016<br>$25.0 mm 6%<br>Subdebt<br>February 2012<br>Follow‐On Offering #2<br>$6.7mm @ $13.00/$13.50<br>per share ($6.66/$6.91 per<br>share split adjusted)¹<br>October 2012<br>Completed acquisition of<br>1st Commonwealth Bank of<br>Virginia in Arlington, VA<br>April / May 2015<br>Five for Four Stock Split<br>quoted on OTCQX<br>October 2015<br>Formed FVCBankcorp<br>Holding Company<br>May 2018<br>Announced acquisition<br>of Colombo Bank in<br>Rockville, MD<br>September 2018<br>Initial Public Offering<br>$36.9mm @ $20.00 per<br>share<br>October 2018<br>Completed acquisition<br>of Colombo Bank in<br>Rockville, MD<br>2007<br>November 2007<br>FVCbank is established<br>$23mm offering @ $10<br>per share ($5.12 per<br>share split adjusted)<br>raised in 8 weeks<br>August 2017<br>Private Reg. D<br>Offering $10.0mm<br>@ $20.00 per share<br>($16.00 per share<br>split adjusted)<br>September 2017<br>Five for Four Stock<br>Split<br>2021<br>..<br>August 2021<br>Announced<br>acquisition of<br>membership<br>interest in<br>Atlantic Coast<br>Mortgage, LLC |
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