FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported
its financial results for the second quarter of 2023.
Second Quarter Selected Financial Highlights
- Strong Well Capitalized Balance Sheet. All of the Bank’s
regulatory capital components and ratios are well in excess of
thresholds required to be considered "well capitalized" with total
risk based capital to risk-weighted assets of 13.28% at June 30,
2023. Tangible Common Equity ("TCE") to Total Assets ("TA") ratio
for FVCbank (the “Bank”) increased to 9.22% at June 30, 2023, from
8.92% at March 31, 2023. The Bank’s investment securities are
classified as available-for-sale, and therefore, the decrease in
market value of these securities is fully reflected in the TCE/TA
ratio.
- Continued Core Deposit Growth. Total deposits
increased $257.9 million, or 14%, to $2.09 billion at June 30, 2023
from $1.83 billion at December 31, 2022 and increased $160.9
million, or 8%, from June 30, 2022. Core deposits, which exclude
wholesale deposits, increased $77.7 million during the quarter
ended June 30, 2023, or 5%. Noninterest-bearing deposits increased
$11.1 million during the second quarter of 2023.
- Low Uninsured Deposit Metrics to Total
Deposits. As of June 30, 2023, estimated uninsured
deposits improved to 27.6% of total deposits from 39.7% at December
31, 2022 (and from 32.5% at March 31, 2023). The Company has
sufficient capital and liquidity resources to satisfy these
obligations.
- Solid Credit Quality. Nonperforming loans to
total assets decreased to 0.06% at June 30, 2023 from 0.19% at both
December 31, 2022 and March 31, 2023, an improvement of 68%.
- Diverse Sources of Available Liquidity. At June 30,
2023, the Company’s liquidity position, which includes cash
totaling $75.0 million, unencumbered investment securities of
$104.1 million, and available unsecured and secured borrowing
capacity totaling $813.0 million, was significantly in excess of
its estimated uninsured deposits totaling $577.1 million, or 172%
of uninsured deposits. The Company has the ability to access the
Federal Reserve’s new Bank Term Funding Program (“BTFP”) but did
not access the BTFP facility during the first half of 2023.
Net income for the second quarter of 2023 was $4.2 million, or
$0.23 diluted earnings per share, compared to $6.4 million, or
$0.35 diluted earnings per share, for the quarterly period ended
June 30, 2022. For the six months ended June 30, 2023, the Company
reported net income of $4.9 million, or $0.27 diluted earnings per
share, compared to net income of $13.0 million, or $0.71 diluted
earnings per share for the six months ended June 30, 2022.
Pre-tax pre-provision income, which excludes the losses taken on
securities sales recorded during the first quarter of 2023, for the
three months ended June 30, 2023 and March 31, 2023 was $6.1
million and $5.0 million, respectively, an increase of $1.1
million, or 22%. Diluted pre-tax pre-provision income per share for
the three months ended June 30, 2023 and March 31, 2023 was $0.34
and $0.27, respectively. The Company considers pre-tax
pre-provision income a useful financial measure of the Company’s
period-to-period operating performance than net income. Pre-tax
pre-provision income is determined by methods other than in
accordance with U.S. generally accepted accounting principles
(“GAAP”). A reconciliation of non-GAAP financial measures to their
most comparable financial measure in accordance with GAAP can be
found in the tables below.
On December 15, 2022, the Company announced that the Board of
Directors approved a five-for-four split of the Company’s common
stock in the form of a 25% stock dividend for shareholders of
record on January 9, 2023, payable on January 31, 2023. Earnings
per share and all other per share information reflected herein have
been adjusted for the five-for-four split of the Company’s common
stock for comparative purposes.
Management Comments
David W. Pijor, Esq., Chairman and Chief Executive Officer of
the Company, said:
“During the second quarter, we continued to focus on our core
strategic initiatives as we increase and expand upon our core
customer base, as illustrated by an increase in non-wholesale
deposits of nearly $78 million during the quarter. Loans increased
4% during the quarter as we continue to originate loans to
relationship-based customers, which contributes to net interest
margin expansion. We enhanced our lending products to include our
“Lightening Lending” platform, a fast, convenient, and secure
digital solution to help small businesses obtain funding to support
their business needs.
We remain committed to a thoughtful, conservative, strategic
approach to serving the needs of our customers and community,
balanced by managing the risks we face, and by constantly adapting
our technology to enhance our new and existing customer’s
experience.”
Minority Investment in Mortgage Banking Operation
In August 2021, the Company acquired a membership interest in
Atlantic Coast Mortgage ("ACM") for $20.4 million, or 0.87% of
total assets, to diversify its loan portfolio while providing
competitive residential mortgage products to its customers and to
generate additional revenue. The Company’s investment in ACM is
reflected as a nonconsolidated minority investment, and as such,
the Company’s income generated from the investment is included in
non-interest income. For the second quarter of 2023, the Company
reported pre-tax income of $20 thousand compared to a pre-tax loss
of $801 thousand for the quarter ended March 31, 2023 related to
its investment in ACM. New ACM funded loan volume for the second
quarter of 2023 totaled $575 million, an increase of 61% from the
previous quarter, and outperformed the mortgage industry forecast
by 22%.
Statement of Condition
Total assets were $2.34 billion at each of June 30, 2023 and
December 31, 2022, and increased $38.5 million, or 2%, compared to
$2.31 billion at June 30, 2022.
Loans receivable, net of deferred fees, were $1.90 billion at
June 30, 2023 and $1.84 billion at December 31, 2022, an increase
of $63.4 million, or 3%. Compared to June 30, 2022, loans
receivable, net of deferred fees, increased $239.6 million, or 14%,
from $1.66 billion, year-over-year. During the second quarter of
2023, new commercial loan originations totaled $89.7 million with a
weighted average rate of 7.59% and repayments of loans and lines of
credit totaled $41.5 million.
Investment securities were $231.5 million at June 30, 2023,
$278.3 million at December 31, 2022, and $307.9 million at June 30,
2022. Investment securities decreased $8.2 million during the
quarter ended June 30, 2023, primarily as a result of principal
paydowns of $5.2 million, and a $3.1 million decrease in the
portfolio's unrealized losses. For the six months ended June 30,
2023, the investment securities portfolio decreased $46.9 million,
primarily as a result of the sale of $40.3 million of
available-for-sale securities in February 2023 and principal
paydowns of $11.1 million, offset by an improvement in the
portfolio's unrealized losses of $4.6 million. The decrease in the
market value of the investment securities portfolio was driven by
the increasing rate environment that began in 2022 and not a result
of credit impairment at June 30, 2023.
Total deposits were $2.09 billion at June 30, 2023, $1.83
billion at December 31, 2022, and $1.93 billion at June 30, 2022.
Total deposits increased $257.9 million, or 14%, year-to-date, and
increased $160.9 million, or 8%, year-over-year.
Noninterest-bearing deposits were $437.0 million at June 30, 2023,
or 21% of total deposits, and increased $11.1 million during the
second quarter of 2023. At June 30, 2023, core deposits, which
exclude wholesale deposits, increased $103.7 million from December
31, 2022, or 7%, and increased $77.7 million, or 5%, from the
previous quarter end. As a member of the IntraFi Network, the Bank
offers products to its customers who seek to maximize FDIC
insurance protection (“reciprocal deposits”). At June 30, 2023,
December 31, 2022, and June 30, 2022, reciprocal deposits totaled
$212.0 million, $117.6 million, and $141.4 million, respectively,
and are considered part of the Company’s core deposit base. Time
deposits (which exclude wholesale deposits) increased $104.8
million, or 40%, to $365.2 million at June 30, 2023 from December
31, 2022, and were 22% of core deposits, representing new and
existing customer deposits as customers were looking to fix
interest rates on their deposit balances.
The Company has had consistent deposit inflows over the last
several quarters, including the current quarter, with new demand
deposit inflows totaling $205 million (which includes $12.3 million
in new noninterest-bearing deposits) compared to $118 million for
the first quarter of 2023. Escrow-related deposits increased $103.2
million from March 31, 2023 to June 30, 2023. Deposits from
municipalities decreased $16.1 million during the second quarter of
2023, which are collateralized by a portion of the Company’s
investment securities portfolio. The Company maintains a growing
deposit pipeline headed into the third quarter of 2023.
Total wholesale funding (which includes wholesale deposits and
FHLB advances) decreased $89.0 million during the second quarter of
2023. Wholesale deposits increased $100.0 million to $413.3 million
during the second quarter of 2023 and increased $378.3 million from
June 30, 2022. Wholesale deposits were used to pay off FHLB
advances at maturity freeing up collateral for future use as
needed. Wholesale deposits are partially fixed at a weighted
average rate of 3.83% as the Company has executed $250 million in
pay-fixed/receive-floating interest rate swaps to reduce these
funding costs. Other borrowed funds decreased $189.0 million, or
100%, at June 30, 2023 from $189.0 million at March 31, 2023, and
decreased $265.0 million, or 100%, compared to $265.0 million at
December 31, 2022.
Shareholders’ equity at June 30, 2023 was $211.1 million, an
increase of $8.7 million, or 4%, from December 31, 2022 and an
increase of $13.5 million, or 7%, from the year-ago quarter.
Year-to-date 2023 earnings contributed $4.9 million to the increase
in shareholders’ equity. As a result of the Company’s CECL adoption
on January 1, 2023, retained earnings decreased $2.8 million. In
addition, the Company repurchased 115,750 of its common shares at
an average price of $12.51 (including commissions) in accordance
with its approved share repurchase program, reducing shareholders’
equity $1.4 million during 2023. Accumulated other comprehensive
loss decreased $5.8 million, which was related to the improvement
in other comprehensive income associated with the Company’s cash
flow hedges.
Book value per share at June 30, 2023, December 31, 2022, and
June 30, 2022 was $11.87, $11.58, and $11.32, respectively.
Tangible book value per share (a non-GAAP financial measure which
is defined in the tables below) at June 30, 2023, December 31,
2022, and June 30, 2022 was $11.44, $11.14, and $10.86,
respectively. Tangible book value per share, excluding accumulated
other comprehensive loss (a non-GAAP financial measure which is
defined in the tables below), at June 30, 2023, December 31, 2022,
and June 30, 2022 was $13.17, $13.23 and $12.53, respectively.
The Bank remains well-capitalized at June 30, 2023, with total
risk-based capital of 13.28%, common equity tier 1 risk-based
capital of 12.26%, and tier 1 leverage ratio of 10.41%.
Asset Quality
The Company adopted Accounting Standards Update 2016-13 (“CECL”)
on January 1, 2023 in accordance with the required implementation
date, and recorded the impact of the adoption to retained earnings,
net of deferred income taxes, as required by the standard. Note
that prior to the adoption of CECL, the Company utilized an
incurred loss model to derive its best estimate of the allowance
for loan losses. Reserves for credit losses increased $3.7 million
and consisted of increases to the allowance for credit losses on
loans as well as the Company's reserve for unfunded commitments
(referred to in combination herein as “ACL”). For the most recent
quarter and year-to-date 2023, subsequent to the aforementioned
adoption, the Company recorded a provision for credit losses of
$618 thousand and $860 thousand, respectively, compared to a
provision of $1.2 million for the three months ended June 30, 2022
and a provision of $1.5 million for the six months ended June 30,
2022. The Company continues to lend to well-established and
relationship-driven borrowers and has a proven track record of low
historical credit losses.
The Company continues to maintain disciplined credit guidelines
during the current rising interest rate environment. The Company
proactively monitors the impact of rising interest rates on its
adjustable loans as the industry navigates through this economic
cycle of increased inflation and higher interest rates. Credit
quality metrics improved during the second quarter of 2023 with a
decrease in specific reserves to $42 thousand. Nonperforming loans
and loans 90 days or more past due at June 30, 2023 totaled $1.4
million, or 0.06% of total assets, compared to $4.5 million, or
0.19%, of total assets at December 31, 2022. There were 3
nonperforming loans at June 30, 2023, all of which were residential
real estate secured. The Company had no other real estate
owned.
The Company recorded net charge-offs of $356 thousand during the
second quarter of 2023, all related to the write-off of the
unguaranteed portion of the principal balance of an SBA loan, the
remaining principal of which has otherwise been recovered. The ACL
(which includes the reserve for unfunded commitments) at June 30,
2023 and December 31, 2022, was $20.2 million and $16.0 million,
respectively. ACL coverage to nonperforming loans increased to
1,403% at June 30, 2023, compared to 357% as of December 31, 2022
as a result of the Company’s improved credit quality and adoption
of CECL.
The ACL to total loans, net of fees, was 1.06% at June 30, 2023,
compared to 0.87% at December 31, 2022 and 0.90% at June 30, 2022.
The Company does not record a reserve on ACM’s warehouse lines due
to the repurchase agreement in place with ACM, and as such, the
allowance for credit losses to total loans when excluding the
warehouse lines was 1.09% at June 30, 2023.
Commercial real estate loans totaled $1.11 billion, or 58% of
total loans, net of fees, at June 30, 2023, a decrease of 1% from
December 31, 2022. The commercial real estate portfolio, including
construction loans, is diversified by asset type and geographic
concentration. The Company manages this portion of the portfolio in
a disciplined manner, and has comprehensive policies to monitor,
measure and mitigate its loan concentrations within this portfolio
segment, including rigorous credit approval, monitoring and
administrative practices. Included in commercial real estate are
loans secured by office buildings totaling $98.9 million, or 5% of
total loans, and retail shopping centers totaling $269.7 million,
or 14% of total loans, at June 30, 2023. Multi-family commercial
properties totaled $191.2 million, or 10% of total loans, at June
30, 2023. The following table provides further stratification of
these asset classes as of June 30, 2023 (dollars in thousands).
Owner Occupied Commercial Real Estate Non-Owner
Occupied Commercial Real Estate Construction
Asset Class AverageLoan-toValue (1) Numberof
TotalLoans Bank OwnedPrincipal (2)
AverageLoan-toValue (1) Numberof TotalLoans Bank
OwnedPrincipal (2) Top 3 Geographic Concentration
Number ofTotal Loans Bank OwnedPrincipal (2)
Total BankOwnedPrincipal (2) % of TotalLoans Office,
Class A
70%
6
$
7,601
48%
4
$
3,833
Counties of Fairfax and Loudoun, Virginia and Montgomery County,
Maryland
1
$
2,836
$
14,270
Office, Class B
48%
38
16,237
48%
31
62,074
-
-
78,311
Office, Class C
44%
8
3,528
42%
8
1,989
1
797
6,314
Subtotal
52
$
27,366
43
$
67,896
2
$
3,633
$
98,895
5%
Retail- Neighorhood/Community Shop
-
$
-
43%
32
$
87,271
Prince George's County, Maryland, Fairfax County, Virginia and
Washington, D.C.
2
$
9,563
$
96,834
Retail- Restaurant
58%
9
8,307
46%
17
30,971
-
-
39,278
Retail- Single Tenant
60%
5
2,033
42%
22
38,084
-
-
40,117
Retail- Anchored,Other
71%
1
2,073
53%
11
39,273
1
1,559
42,905
Retail- Grocery-anchored
0
-
46%
8
49,907
1
639
50,546
Subtotal
15
$
12,413
90
$
245,506
4
$
11,761
$
269,680
14%
Multi-family, Class A (Market)
-
$
-
0%
1
$
-
Washington, D.C., Baltimore City, Maryland and Arlington County,
Virginia
1
$
733
$
733
Multi-family, Class B (Market)
-
-
63%
21
78,742
-
-
78,742
Multi-family, Class C (Market)
-
-
58%
58
75,288
2
5,581
80,869
Multi-Family-Affordable Housing
-
-
53%
20
26,742
1
4,116
30,858
Subtotal
-
$
-
100
$
180,772
4
$
10,430
$
191,202
10%
Information as of June 30, 2023
$
559,777
29%
(1) Loan-to-value is determined at origination
date against current bank-owned principal. (2) Bank-owned principal
is not adjusted for deferred fees and costs. (3) Debt service
coverage policy is 1.20x or greater required at origination date.
The loans shown in the above table exhibit strong credit quality
and included no classified loans at June 30, 2023. During its
assessment of the allowance for credit losses, the Company
addressed the credit risks associated with these portfolio segments
and believes that as a result of its conservative underwriting
discipline at loan origination and its ongoing loan monitoring
procedures, the Company has appropriately reserved for possible
credit concerns in the event of a downturn in economic
activity.
Income Statement
Net income for the three months ended June 30, 2023 was $4.2
million, a decrease of $2.2 million, compared to $6.4 million for
the same period of 2022. On a linked quarter basis, net income
increased $3.6 million, from $621 thousand for the quarter ended
March 31, 2023. Net income for the quarter ended March 31, 2023
includes an after-tax loss totaling $3.6 million from the February
sale of $40.3 million in available-for-sale investment securities
which was part of a balance sheet repositioning. The proceeds from
the securities sale were deployed in part to pay off high-cost
short-term borrowings totaling $20 million from the FHLB and fund
higher yielding newly originated commercial loans. Additionally,
net income for the second quarter of 2023 includes the Company’s
portion of income from its membership interest in ACM, which was
$20 thousand, compared to a loss of $801 thousand for the quarter
ended March 31, 2023.
Net interest income totaled $14.4 million for the quarter ended
June 30, 2023, an increase of $374 thousand, or 3%, compared to the
first quarter of 2023, and a decrease of $2.4 million, or 14%,
compared to the year ago quarter. The increase in net interest
income for the three months ended June 30, 2023 compared to the
linked quarter ended March 31, 2023 includes recovered loan
interest of $338 thousand from an impaired loan that has now been
fully recovered. Compared to the year ago quarter ended June 30,
2022, the decrease in net interest income for the second quarter of
2023 is primarily due to an increase in funding costs, which have
increased precipitously as a result of Federal Reserve monetary
policy coupled with the need to meet intense competition from
market area banks, brokerages and the U.S. Treasury.
Interest income on loans increased $7.7 million, or 45%, for the
three months ended June 30, 2023, compared to the same period of
2022. Compared to the linked quarter, interest income on loans
increased $1.6 million, or 7%, for the three months ended June 30,
2023. The increase in interest income for the three months ended
June 30, 2023, compared to the year ago quarter was primarily
related to an increase in both loan yields, which increased 99
basis points, and the volume of average loans, which increased
$286.7 million. On a linked quarter basis, the increase in interest
income is due to the increased yield on loans receivable by 24
basis points along with the increase in average loan volume of
$36.8 million during the quarter.
Interest expense on deposits increased $10.1 million for the
three months ended June 30, 2023, compared to the same period of
2022, and increased $3.2 million compared to the three months ended
March 31, 2023, all a result of the unprecedented rapid rate
increases over the last 15 months and the change in deposit mix to
20% wholesale deposits. As a preemptive defensive measure,
management increased liquidity through additional wholesale funding
given the uncertainty surrounding the isolated bank failures
announced in March. The increase in wholesale deposits provided
enhanced liquidity on the Company’s balance sheet while freeing up
collateral from other funding sources such as the FHLB.
The Company's net interest margin remained at 2.60% for the
quarter ended June 30, 2023 compared to the linked quarter ended
March 31, 2023 and decreased from 3.30% for the year ago quarter
ended June 30, 2022. The decrease in net interest margin from a
year ago is primarily due to the rising rate environment and
associated rapid increase to the cost of funds. The cost of core
deposits, which includes non-interest bearing deposits and excludes
wholesale deposits, increased 36 basis points to 2.07% for the
second quarter of 2023 as compared to 1.71% for the linked quarter
ended March 31, 2023 and increased 165 basis points as compared to
0.42% for the quarter ended June 30, 2022. The cost of
interest-bearing deposits for the second quarter of 2023 was 3.11%
compared to 2.61% for the first quarter of 2023, an increase of 50
basis points, and an increase of 254 basis points from 0.57% for
the year-ago quarter.
The Company’s cumulative deposit beta (which is calculated
comparing the change in deposit interest rates from March 31, 2022
to June 30, 2023 including noninterest-bearing deposits and
excluding wholesale deposits) is approximately 33% over the past
year as the Federal Reserve began increasing short-term interest
rates. Based on the Company’s most recent asset/liability model,
the Company’s interest rate sensitivity position was modestly
liability sensitive, positioning the Company’s balance sheet for an
improvement in net interest income when the Federal Reserve pivots
to an accommodative monetary policy.
Net interest income for the six months ended June 30, 2023 and
2022 was $28.4 million and $31.8 million, respectively, a decrease
of $3.4 million, or 11%, year-over-year. Interest income increased
$16.3 million, or 45%, to $52.5 million for the six months ended
June 30, 2023 as compared to $36.3 million for the comparable 2022
period. Interest expense totaled $24.1 million for the six months
ended June 30, 2023, an increase of $19.7 million, compared to $4.4
million for the six months ended June 30, 2022. The Company’s net
interest margin for the six months ended June 30, 2023 was 2.60%
compared to 3.23% for the year-ago six month period of 2022.
Noninterest income reported for the quarter ended June 30, 2023
was $891 thousand compared to a loss of $4.6 million for the linked
quarter ended March 31, 2023 and income of $645 thousand for the
quarter ended June 30, 2022. Noninterest income associated with the
Company’s investment in ACM was $20 thousand for the three months
ended June 30, 2023. The noninterest loss recorded during the first
quarter of 2023 is primarily attributable to the Company's loss of
$4.6 million related to its sale of available-for-sale investment
securities as part of the Company's balance sheet repositioning
strategy and the loss recorded associated with its investment in
ACM, totaling $801 thousand during the first quarter of 2023.
Fee income from loans was $169 thousand for the quarter ended
June 30, 2023, compared to $43 thousand for the second quarter of
2022, an increase of $126 thousand, primarily related to
back-to-back loan swap transactions entered into during the second
quarter of 2023. Service charges on deposit accounts and other fee
income totaled $340 thousand for the second quarter of 2023, a
decrease of $6 thousand from the year ago quarter. Income from
bank-owned life insurance (“BOLI”) increased $108 thousand to $362
thousand for the three months ended June 30, 2023, compared to $254
thousand for the same period of 2022, as the Company purchased
additional BOLI totaling $15 million during the second quarter of
2022.
For the year-to-date period ended June 30, 2023, the Company
recorded noninterest income as a loss of $3.7 million, primarily
associated with its securities sales transaction executed during
the first quarter of 2023, compared to noninterest income of $2.3
million for the comparable period of 2022.
Noninterest expense totaled $9.2 million for the quarter ended
June 30, 2023 compared to $8.2 million for the same three-month
period of 2022, an increase of $987 thousand, or 12%. On a linked
quarter basis, noninterest expense increased $193 thousand, or 2%,
from $9.0 million for the quarter ended March 31, 2023. Salaries
and benefits expense was $5.1 million, $5.0 million, and $4.9
million, for the second quarters ended June 30, 2023, March 31,
2023, and June 30, 2022, respectively. The increase in salaries and
benefits expense for the second quarter of 2023 compared to the
linked quarter of March 31, 2023, is primarily related to accruals
for incentive compensation totaling $170 thousand, offset by a
decrease in base salary expense and associated payroll taxes of
$147 thousand. Salaries deferred for loan originations (ASC 310-20)
decreased $74 thousand, which contributed to the second quarter
2023 increase in salaries and benefits expense. Compared to the
year-ago quarter, the increase in salaries and benefits expense was
primarily related to business development staff expansion and
market rate adjustments to employee compensation that has occurred
over the previous twelve months.
Internet banking and software expense increased $167 thousand to
$583 thousand for the second quarter of 2023 compared to the
quarter ended June 30, 2022, primarily as a result of the
implementation of enhanced customer software solutions. Other
operating expenses for the second quarter of 2023 totaled $1.5
million compared to $986 thousand for the year-ago quarter, an
increase of $489 thousand. This increase was a result of an
increase in FDIC insurance expense totaling $177 thousand (a result
of the FDIC increasing the assessment rate to replenish its deposit
insurance fund) and an increase in marketing expense totaling $117
thousand related to lower cost deposit gathering and branding
efforts. In addition, legal expenses related to loan workouts
increased $100 thousand for the second quarter of 2023 when
compared to the year ago quarter in a continued effort to mitigate
credit risk and potential loss. The Company expects to recover
these loan legal expenses later in 2023.
For the six months ended June 30, 2023 and 2022, noninterest
expense was $18.2 million and $16.7 million, respectively, an
increase of $1.6 million, or 9%, primarily as a result of the
aforementioned increases in salaries and benefits expenses,
occupancy and equipment expense, marketing, e-banking solutions,
and loan legal expenses.
The efficiency ratio for core bank operating earnings, excluding
2022 merger-related expenses and losses on the sale of
available-for-sale investment securities, for the quarters ended
June 30, 2023, March 31, 2023, and June 30, 2022, was 60.2%, 61.0%,
and 47.1%, respectively. For the six months ended June 30, 2023 and
2022, the efficiency ratio for core bank operating earnings was
62.3% and 48.6%, respectively. A reconciliation of the
aforementioned efficiency ratio, a non-GAAP financial measure, can
be found in the tables below.
The Company recorded a provision for income taxes of $1.2
million for the three months ended June 30, 2023, compared to a
provision for income taxes of $1.6 million for the same period in
2022. The effective tax rate for the three months ended June 30,
2023 and June 30, 2022 was 22.4% and 20.0%, respectively. For the
six months ended June 30, 2023 and 2022, provision for income tax
expense was $739 thousand and $2.9 million, respectively.
About FVCBankcorp, Inc.
FVCBankcorp, Inc. is the holding company for FVCbank, a
wholly-owned subsidiary that commenced operations in November 2007.
FVCbank is a $2.34 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 about the Company, please visit the
Investor Relations page of FVCBankcorp, Inc.’s website,
www.fvcbank.com.
Cautionary Note About Forward-Looking Statements
This press release 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: general business and economic conditions nationally or in the
markets that the Company serves could adversely affect, among other
things, real estate valuations, unemployment levels, inflation
levels, the ability of businesses to remain viable, consumer and
business confidence, and consumer or business spending, which could
lead to decreases in demand for loans, deposits, and other
financial services that the Company provides and increases in loan
delinquencies and defaults; the risk of changes in interest rates
on levels, composition and costs of deposits, loan demand, and the
values and liquidity of loan collateral, securities, and interest
sensitive assets and liabilities; changes in the Company's
liquidity requirements could be adversely affected by changes in
its assets and liabilities; changes in the assumptions underlying
the establishment of reserves for possible credit losses; changes
in market conditions, specifically declines in the commercial and
residential real estate market, volatility and disruption of the
capital and credit markets, and soundness of other financial
institutions we do business with; the effects of, and changes in,
trade, monetary and fiscal policies and laws, including interest
rate policies of the Board of Governors of the Federal Reserve
System, inflation, interest rate, market and monetary fluctuations;
risks inherent in making loans such as repayment risks and
fluctuating collateral values; the Company's investment securities
portfolio is subject to credit risk, market risk, and liquidity
risk as well as changes in the estimates used to value the
securities in the portfolio; declines in the Company's common stock
price or the occurrence of what management would deem to be a
triggering event that could, under certain circumstances, cause us
to record a noncash impairment charge to earnings in future
periods; the strength of the United States economy in general and
the strength of the local economies in which we conduct operations;
geopolitical conditions, including acts or threats of terrorism, or
actions taken by the United States or other governments in response
to acts or threats of terrorism and/or military conflicts, which
could impact business and economic conditions in the United States
and abroad; the occurrence of significant natural disasters,
including severe weather conditions, floods, health related issues
or emergencies, including the COVID-19 pandemic, and other
catastrophic events; our management of risks inherent in our real
estate loan portfolio, and the risk of a prolonged downturn in the
real estate market, which could impair the value of our collateral
and our ability to sell collateral upon any foreclosure; changes in
consumer spending and savings habits; technological and social
media changes; changing bank regulatory conditions, policies or
programs, whether arising as new legislation or regulatory
initiatives, that could lead to restrictions on activities of banks
generally, or our subsidiary bank in particular, more restrictive
regulatory capital requirements, increased costs, including deposit
insurance premiums, regulation or prohibition of certain income
producing activities or changes in the secondary market for loans
and other products; the impact of changes in financial services
policies, laws and regulations, including laws, regulations and
policies concerning taxes, banking, securities and insurance, and
the application thereof by regulatory bodies; the impact of changes
in laws, regulations and policies affecting the real estate
industry; the effect of changes in accounting policies and
practices, as may be adopted from time to time by bank regulatory
agencies, the U.S. Securities and Exchange Commission, the Public
Company Accounting Oversight Board, the Financial Accounting
Standards Board or other accounting standards setting bodies; the
timely development of competitive new products and services and the
acceptance of these products and services by new and existing
customers; the willingness of users to substitute competitors’
products and services for our products and services; the effect of
acquisitions we may make, including, without limitation, the
failure to achieve the expected revenue growth and/or expense
savings from such acquisitions; changes in the level of our
nonperforming assets and charge-offs; our involvement, from time to
time, in legal proceedings and examination and remedial actions by
regulators; potential exposure to fraud, negligence, computer theft
and cyber-crime; and the risk factors and other cautionary language
included in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2022 and in other periodic and current reports
filed with the U.S. 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) At or For the Three Months Ended
At or For the Six Months Ended At or For the Three Months
Ended 6/30/2023 6/30/2022 6/30/2023
6/30/2022 3/31/2023 12/31/2022 Selected
Balances Total assets
$
2,344,372
$
2,305,905
$
2,348,995
$
2,344,322
Total investment securities
236,378
314,444
253,403
293,945
Total loans, net of deferred fees
1,903,814
1,664,232
1,828,123
1,840,434
Allowance for credit losses
(19,442
)
(14,957
)
(19,058
)
(16,040
)
Total deposits
2,088,042
1,927,177
1,910,386
1,830,162
Subordinated debt
19,592
19,537
19,579
19,565
Other borrowings
- -
140,000
189,000
265,000
Reserve for unfunded commitments
801
- -
922
- -
Total stockholders’ equity
211,051
197,599
204,156
202,382
Summary Results of Operations Interest income
$
27,203
$
19,027
$
52,537
$
36,249
$
25,334
$
23,341
Interest expense
12,815
2,239
24,135
4,411
11,320
7,462
Net interest income
14,388
16,787
28,402
31,838
14,014
15,879
Provision for credit losses
618
1,185
860
1,535
242
729
Net interest income after provision for credit losses
13,770
15,602
27,542
30,303
13,772
15,150
Noninterest income - loan fees, service charges and other
508
389
942
863
434
421
Noninterest income - bank owned life insurance
362
254
694
492
332
356
Noninterest income (loss) - minority membership interest
20
2
(781
)
914
(801
)
(787
)
Noninterest income - loss on sale of available-for-sale investment
securities
- -
- -
(4,592
)
-
(4,592
)
- -
Noninterest expense
9,203
8,216
18,213
16,657
9,010
9,202
Income before taxes
5,457
8,031
5,593
15,915
135
5,938
Income tax expense (benefit)
1,225
1,606
739
2,876
(486
)
1,035
Net income
4,232
6,425
4,854
13,039
621
4,903
Per Share Data Net income, basic (5)
$
0.24
$
0.37
$
0.28
$
0.75
$
0.04
$
0.28
Net income, diluted (5)
$
0.23
$
0.35
$
0.27
$
0.71
$
0.03
$
0.27
Book value (5)
$
11.87
$
11.32
$
11.53
$
11.58
Tangible book value (1)(5)
$
11.44
$
10.86
$
11.09
$
11.14
Tangible book value, excluding accumulated other comprehensive
losses (1)(5)
$
13.17
$
12.53
$
12.95
$
13.23
Shares outstanding
17,783,305
13,970,748
17,705,455
17,475,668
Selected Ratios Net interest margin (2)
2.60
%
3.30
%
2.60
%
3.23
%
2.60
%
2.96
%
Return on average assets (2)
0.73
%
1.21
%
0.42
%
1.26
%
0.11
%
0.89
%
Return on average equity (2)
8.17
%
12.93
%
4.70
%
12.78
%
1.21
%
9.87
%
Efficiency (3)
60.23
%
47.13
%
73.84
%
48.84
%
95.98
%
57.99
%
Loans, net of deferred fees to total deposits
91.18
%
86.36
%
95.69
%
100.56
%
Noninterest-bearing deposits to total deposits
20.93
%
28.11
%
22.29
%
23.95
%
Reconciliation of Net Income (GAAP) to Commercial Bank Operating
Earnings (Non-GAAP)(4) GAAP net income reported above
$
4,232
$
6,425
$
4,854
$
13,039
$
621
$
4,903
Add: Merger and acquisition expense
- -
- -
- -
125
- -
- -
Add: Loss on sale of available-for-sale investment securities
- -
- -
4,592
- -
4,592
- -
Subtract: provision for income taxes associated with non-GAAP
adjustments
- -
- -
(1,010
)
(28
)
(1,010
)
- -
Net Income, core bank operating earnings (non-GAAP)
$
4,232
$
6,425
$
8,436
$
13,136
$
4,203
$
4,903
Earnings per share - basic (non-GAAP core bank operating
earnings)(5)
$
0.24
$
0.24
$
0.48
$
0.76
$
0.24
$
0.28
Earnings per share - diluted (non-GAAP core bank operating
earnings)(5)
$
0.23
$
0.23
$
0.46
$
0.71
$
0.23
$
0.27
Return on average assets (non-GAAP core bank operating earnings)
0.73
%
1.21
%
0.74
%
1.26
%
0.85
%
0.89
%
Return on average equity (non-GAAP core bank operating earnings)
8.17
%
12.93
%
8.17
%
12.87
%
9.40
%
9.87
%
Efficiency ratio (non-GAAP core bank operating earnings) (3)
60.23
%
47.13
%
62.25
%
48.55
%
60.96
%
57.99
%
Capital Ratios - Bank Tangible common equity (to tangible
assets)
9.22
%
8.25
%
8.92
%
8.86
%
Total risk-based capital (to risk weighted assets)
13.28
%
12.71
%
13.48
%
13.28
%
Common equity tier 1 capital (to risk weighted assets)
12.26
%
11.93
%
12.48
%
12.45
%
Tier 1 leverage (to average assets)
10.41
%
10.89
%
10.38
%
10.75
%
Asset Quality Nonperforming loans and loans 90+ past due
$
1,443
$
3,486
$
4,446
$
4,493
Nonperforming loans and loans 90+ past due to total assets
0.06
%
0.15
%
0.19
%
0.19
%
Nonperforming assets to total assets
0.06
%
0.15
%
0.19
%
0.19
%
Allowance for credit losses to loans
1.06
%
0.90
%
1.09
%
0.87
%
Allowance for credit losses to nonperforming loans
1,402.87
%
429.06
%
449.41
%
357.00
%
Net charge-offs (recoveries)
$
356
$
(8
)
$
333
$
407
$
(23
)
$
2
Net charge-offs (recoveries) to average loans
(2)
0.08
%
0.00
%
0.04
%
0.05
%
(0.01
)%
-
%
Selected Average Balances Total assets
$
2,309,251
$
2,115,813
$
2,288,835
$
2,077,132
$
2,268,193
$
2,202,407
Total earning assets
2,223,581
2,038,321
2,204,172
1,989,451
2,184,546
2,126,032
Total loans, net of deferred fees
1,867,813
1,581,131
1,849,493
1,528,030
1,830,970
1,745,226
Total deposits
2,002,047
1,847,104
1,894,343
1,802,797
1,785,442
1,811,098
Other Data Noninterest-bearing deposits
$
436,972
$
541,815
$
425,838
$
438,269
Interest-bearing checking, savings and money market
872,508
1,166,930
806,934
883,480
Time deposits
365,242
183,432
364,265
260,421
Wholesale deposits
413,320
35,000
313,350
247,992
(1) Non-GAAP Reconciliation At or For the Three
Months Ended, At or For the Three Months Ended, (Dollars
in thousands, except per share data)
6/30/2023
6/30/2022 3/31/2023 12/31/2022 Total
stockholders’ equity
$
211,051
$
197,599
$
204,156
$
202,382
Less: goodwill and intangibles, net
(7,682
)
(7,914
)
(7,735
)
(7,790
)
Tangible Common Equity
$
203,368
$
189,685
$
196,421
$
194,592
Less: Accumulated Other Comprehensive Income (Loss) ("AOCI")
(30,762
)
(29,192
)
(32,863
)
(36,568
)
Tangible Common Equity excluding AOCI
$
234,130
$
218,877
$
229,284
$
231,160
Book value per common share (5)
$
11.87
$
11.32
$
11.53
$
11.58
Less: intangible book value per common share (5)
(0.43
)
(0.46
)
(0.44
)
0.44
Tangible book value per common share (5)
$
11.44
$
10.86
$
11.09
$
11.14
Add: AOCI (loss) per common share (5)
(1.73
)
(1.67
)
(1.86
)
(2.09
)
Tangible book value per common share, excluding AOCI (5)
$
13.17
$
12.53
$
12.95
$
13.23
(2) Annualized. (3) Efficiency ratio is calculated as
noninterest expense divided by the sum of net interest income and
noninterest income. (4) Some of the financial measures discussed
throughout the press release are "non-GAAP financial measures." In
accordance with SEC rules, the Company classifies a financial
measure as being a non-GAAP financial measure if that financial
measure excludes or includes amounts, or is subject to adjustments
that have the effect of excluding or including amounts, that are
included or excluded, as the case may be, in the most directly
comparable measure calculated and presented in accordance with GAAP
in our consolidated statements of income, balance sheets or
statements of cash flows. (5) Amounts above reflect the effect of a
25% stock dividend declared on December 15, 2022 for shareholders
of record on January 9, 2023, paid on January 31, 2023.
FVCBankcorp, Inc. Summary Consolidated Statements of
Condition (Dollars in thousands) (Unaudited)
% Change % Change Current
From 6/30/2023 3/31/2023 Quarter
12/31/2022 6/30/2022 Year Ago Cash and
due from banks $
8,281
$
13,300
-37.7
%
$
7,253
$
11,730
-29.4
%
Interest-bearing deposits at other financial institutions
66,723
131,643
-49.3
%
74,300
196,187
-66.0
%
Investment securities
231,468
239,698
-3.4
%
278,333
307,882
-24.8
%
Restricted stock, at cost
4,909
13,705
-64.2
%
15,612
6,562
-25.2
%
Loans, net of fees: Commercial real estate
1,111,249
1,096,633
1.3
%
1,097,302
981,744
13.2
%
Commercial and industrial
223,406
187,842
18.9
%
214,873
189,351
18.0
%
Commercial construction
158,713
156,026
1.7
%
147,272
161,393
-1.7
%
Consumer real estate
365,122
352,413
3.6
%
330,635
243,212
50.1
%
Warehouse facilities
39,700
29,045
36.7
%
42,699
78,693
-49.6
%
Consumer nonresidential
5,624
6,164
-8.8
%
7,653
9,839
-42.8
%
Total loans, net of fees
1,903,814
1,828,123
4.1
%
1,840,434
1,664,232
14.4
%
Allowance for credit losses
(19,442
)
(19,058
)
2.0
%
(16,040
)
(14,957
)
30.0
%
Loans, net
1,884,372
1,809,065
4.2
%
1,824,394
1,649,275
14.3
%
Premises and equipment, net
1,103
1,174
-6.1
%
1,220
1,334
-17.4
%
Goodwill and intangibles, net
7,682
7,735
-0.7
%
7,790
7,914
-2.9
%
Bank owned life insurance (BOLI)
56,066
55,704
0.7
%
55,371
54,663
2.6
%
Other assets
83,768
76,971
8.8
%
80,049
70,358
19.1
%
Total Assets $
2,344,372
$
2,348,995
-0.2
%
$
2,344,322
$
2,305,905
1.7
%
Deposits: Noninterest-bearing $
436,972
$
425,838
2.6
%
$
438,269
$
541,815
-19.4
%
Interest checking
626,748
498,242
25.8
%
578,340
787,011
-20.4
%
Savings and money market
245,760
308,691
-20.4
%
305,140
379,919
-35.3
%
Time deposits
365,242
364,265
0.3
%
260,421
183,432
99.1
%
Wholesale deposits
413,320
313,350
31.9
%
247,992
35,000
1,080.9
%
Total deposits
2,088,042
1,910,386
9.3
%
1,830,162
1,927,177
8.3
%
Other borrowed funds
- -
189,000
-100.0
%
265,000
140,000
-100.0
%
Subordinated notes, net of issuance costs
19,592
19,579
0.1
%
19,565
19,537
0.3
%
Reserve for unfunded commitments
801
922
-13.1
%
- -
- -
100.0
%
Other liabilities
24,886
24,952
-0.3
%
27,213
21,592
15.3
%
Stockholders’ equity
211,051
204,156
3.4
%
202,382
197,599
6.8
%
Total Liabilities & Stockholders' Equity $
2,344,372
$
2,348,995
-0.2
%
$
2,344,322
$
2,305,905
1.7
%
FVCBankcorp, Inc. Summary Consolidated Income
Statements (In thousands, except per share data)
(Unaudited) For the Three Months Ended
% Change % Change Current From
6/30/2023 3/31/2023 Quarter 6/30/2022
Year Ago Net interest income $
14,388
$
14,014
2.7
%
$
16,787
-14.3
%
Provision for credit losses
618
242
-155.5
%
1,185
-47.8
%
Net interest income after provision for credit losses
13,770
13,772
0.0
%
15,602
-11.7
%
Noninterest income: Fees on loans
169
77
120.2
%
43
293.3
%
Service charges on deposit accounts
232
215
7.7
%
230
0.7
%
BOLI income
362
332
9.0
%
254
42.6
%
(Loss) Income from minority membership interest
20
(801
)
-102.5
%
2
900.0
%
Loss on sale of available-for-sale investment securities
- -
(4,592
)
100.0
%
- -
0.0
%
Other fee income
108
142
-24.2
%
116
-7.2
%
Total noninterest income
891
(4,627
)
-119.2
%
645
38.1
%
Noninterest expense: Salaries and employee benefits
5,092
5,015
1.5
%
4,914
3.6
%
Occupancy expense
610
627
-2.7
%
553
10.3
%
Internet banking and software expense
583
562
3.7
%
416
40.1
%
Data processing and network administration
611
622
-1.8
%
550
11.1
%
State franchise taxes
584
584
0.0
%
509
14.8
%
Professional fees
247
184
34.0
%
288
-14.2
%
Other operating expense
1,475
1,416
4.2
%
986
49.6
%
Total noninterest expense
9,203
9,010
2.1
%
8,216
12.0
%
Net income before income taxes
5,457
135
3,939.0
%
8,031
-32.0
%
Income tax expense (benefit)
1,225
(486
)
-351.9
%
1,606
-23.7
%
Net Income $
4,232
$
621
581.1
%
$
6,425
-34.1
%
Earnings per share - basic (1) $
0.24
$
0.04
576.0
%
$
0.37
-35.1
%
Earnings per share - diluted (1) $
0.23
$
0.03
590.1
%
$
0.35
-32.2
%
Weighted-average common shares outstanding - basic (1)
17,710,535
17,577,659
17,462,421
Weighted-average common shares outstanding - diluted (1)
18,058,612
18,296,448
18,587,155
Reconciliation of Net Income
(GAAP) to Commercial Bank Operating Earnings (Non-GAAP):
GAAP net income reported above $
4,232
$
621
$
6,425
Add: Loss on sale of available-for-sale investment securities
- -
4,592
- -
Subtract: provision for income taxes associated with non-GAAP
adjustments
- -
(1,010
)
- -
Net Income, Operating earnings (non-GAAP) $
4,232
$
4,203
$
6,425
Earnings per share - basic (non-GAAP core bank operating
earnings)(1) $
0.24
$
0.24
$
0.37
Earnings per share - diluted (non-GAAP core bank operating
earnings)(1) $
0.23
$
0.23
$
0.35
Return on average assets (non-GAAP core bank operating
earnings)
0.73
%
0.85
%
1.21
%
Return on average equity (non-GAAP core bank operating earnings)
8.17
%
9.40
%
12.93
%
Efficiency ratio (non-GAAP core bank operating earnings)
60.23
%
60.96
%
47.13
%
Reconciliation of Net Income (GAAP)
to Pre-Tax Pre-Provision Income (Non-GAAP): GAAP net
income reported above $
4,232
$
621
$
6,425
Add: Provision for credit losses
618
242
1,185
Add: Loss on sale of investment securities
- -
4,592
- -
(Subtract) Add: Income tax (benefit) expense
1,225
(486
)
1,606
Pre-tax pre-provision income $
6,076
$
4,969
$
9,216
Earnings per share - basic (non-GAAP pre-tax pre-provision)(1) $
0.34
$
0.28
$
0.53
Earnings per share - diluted (non-GAAP pre-tax pre-provision)(1) $
0.34
$
0.27
$
0.50
Return on average assets (non-GAAP pre-tax pre-provision)
1.05
%
0.88
%
1.74
%
Return on average equity (non-GAAP pre-tax pre-provision)
11.72
%
9.67
%
18.55
%
(1) Amounts above reflect the effect of a 25% stock dividend
declared on December 15, 2022 for shareholders of record on January
9, 2023, paid on January 31, 2023.
FVCBankcorp, Inc.
Summary Consolidated Income Statements (In thousands,
except per share data) (Unaudited) For
the Six Months Ended % Change From
6/30/2023 6/30/2022 Year Ago Net
interest income $
28,402
$
31,838
-10.8
%
Provision for loan losses
860
1,535
-44.0
%
Net interest income after provision for loan losses
27,542
30,303
-9.1
%
Noninterest income: Fees on loans
246
127
93.6
%
Service charges on deposit accounts
447
464
-3.7
%
BOLI income
694
492
41.1
%
(Loss) Income from minority membership interest
(781
)
914
-185.4
%
Loss on sale of available-for-sale investment securities
(4,592
)
- -
100.0
%
Other fee income
250
272
-8.2
%
Total noninterest income
(3,736
)
2,269
-264.7
%
Noninterest expense: Salaries and employee benefits
10,107
9,891
2.2
%
Occupancy expense
1,238
1,153
7.3
%
Internet banking and software expense
1,144
799
43.2
%
Data processing and network administration
1,233
1,092
12.9
%
State franchise taxes
1,169
1,018
14.8
%
Professional fees
431
649
-33.5
%
Merger and acquisition expense
- -
125
-100.0
%
Other operating expense
2,891
1,930
49.8
%
Total noninterest expense
18,213
16,657
9.3
%
Net income before income taxes
5,593
15,915
-64.9
%
Income tax expense
739
2,876
-74.3
%
Net Income $
4,854
$
13,039
-62.8
%
Earnings per share - basic $
0.28
$
0.75
-63.3
%
Earnings per share - diluted $
0.27
$
0.71
-62.1
%
Weighted-average common shares outstanding - basic
17,644,097
17,376,969
Weighted-average common shares outstanding - diluted
18,177,530
18,489,796
Reconciliation of Net Income (GAAP)
to Commercial Bank Operating Earnings (Non-GAAP): GAAP
net income reported above $
4,854
$
13,039
Add: Merger and acquisition expense
- -
125
Add: Loss on sale of available-for-sale investment securities
4,592
- -
Subtract: provision for income taxes associated with non-GAAP
adjustments
(1,010
)
(28
)
Net Income, Operating earnings (non-GAAP) $
8,436
$
13,136
Earnings per share - basic (non-GAAP core bank operating
earnings)(1) $
0.48
$
0.76
Earnings per share - diluted (non-GAAP core bank operating
earnings)(1) $
0.46
$
0.71
Return on average assets (non-GAAP core bank operating
earnings)
0.74
%
1.26
%
Return on average equity (non-GAAP core bank operating earnings)
8.17
%
12.87
%
Efficiency ratio (non-GAAP core bank operating earnings)
62.25
%
48.55
%
Reconciliation of Net Income
(GAAP) to Pre-Tax Pre-Provision Income (Non-GAAP): GAAP
net income reported above $
4,854
$
13,039
Add: Provision for loan losses
860
1,535
Add: Loss on sale of investment securities
4,592
- -
Add: Merger and acquisition expense
- -
125
Add: Income tax expense
739
2,876
Pre-tax pre-provision income $
11,045
$
17,575
Earnings per share - basic (non-GAAP pre-tax pre-provision)(1) $
0.63
$
1.01
Earnings per share - diluted (non-GAAP pre-tax pre-provision)(1) $
0.61
$
0.95
Return on average assets (non-GAAP operating earnings)
0.97
%
1.69
%
Return on average equity (non-GAAP operating earnings)
10.70
%
17.23
%
(1) Amounts above reflect the effect of a 25% stock dividend
declared on December 15, 2022 for shareholders of record on January
9, 2023, paid on January 31, 2023.
FVCBankcorp, Inc.
Average Statements of Condition and Yields on Earning Assets and
Interest-Bearing Liabilities (Dollars in thousands)
(Unaudited) For the Three Months Ended
6/30/2023 3/31/2023 6/30/2022 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 receivable, net of fees (1) Commercial real estate $
1,119,042
$
13,541
4.84
%
$
1,098,243
$
12,680
4.62
%
$
940,338
$
10,215
4.35
%
Commercial and industrial
197,130
3,735
7.58
%
203,223
3,445
6.78
%
183,928
2,255
4.90
%
Commercial construction
156,471
2,814
7.19
%
153,534
2,639
6.87
%
174,896
2,067
4.73
%
Consumer real estate
360,161
4,241
4.71
%
345,213
4,048
4.69
%
208,072
2,025
3.89
%
Warehouse facilities
28,910
510
7.06
%
24,005
424
7.06
%
64,570
505
3.13
%
Consumer nonresidential
6,099
143
9.36
%
6,752
160
9.45
%
9,327
176
7.53
%
Total loans
1,867,813
24,986
5.35
%
1,830,970
23,396
5.11
%
1,581,131
17,243
4.36
%
Investment securities (2)(3)
288,987
1,375
1.90
%
327,370
1,638
2.00
%
357,540
1,586
1.77
%
Interest-bearing deposits at other financial institutions
66,781
844
5.07
%
26,206
302
4.68
%
99,650
200
0.81
%
Total interest-earning assets
2,223,581
27,205
4.89
%
2,184,546
25,336
4.64
%
2,038,321
19,029
3.73
%
Non-interest earning assets: Cash and due from banks
6,930
4,805
4,716
Premises and equipment, net
1,152
1,208
1,452
Accrued interest and other assets
96,656
94,678
85,433
Allowance for loan losses
(19,068
)
(17,044
)
(14,109
)
Total Assets $
2,309,251
$
2,268,193
$
2,115,813
0
1
-
Interest-bearing liabilities: Interest checking $
531,440
$
3,546
2.68
%
$
519,770
$
2,915
2.27
%
$
794,757
$
1,007
0.51
%
Savings and money market
245,306
1,289
2.11
%
295,192
1,503
2.06
%
329,831
446
0.54
%
Time deposits
393,877
3,563
3.63
%
299,054
2,152
2.92
%
177,525
446
1.01
%
Wholesale deposits
377,126
3,615
3.84
%
251,593
2,211
3.56
%
35,000
(2
)
(0.03)
%
Total interest-bearing deposits
1,547,748
12,012
3.11
%
1,365,609
8,781
2.61
%
1,337,113
1,897
0.57
%
Other borrowed funds
57,176
546
3.83
%
231,257
2,281
4.01
%
27,418
84
1.23
%
Subordinated notes, net of issuance costs
19,583
258
5.27
%
19,570
258
5.34
%
19,528
258
5.30
%
Total interest-bearing liabilities
1,624,508
12,815
3.16
%
1,616,436
11,320
2.84
%
1,384,059
2,239
0.65
%
Noninterest-bearing liabilities: Noninterest-bearing
deposits
454,299
419,833
509,991
Other liabilities
23,145
26,408
22,998
Stockholders’ equity
207,299
205,516
198,765
Total Liabilities and Stockholders' Equity $
2,309,251
$
2,268,193
$
2,115,813
Net Interest Margin
14,390
2.60
%
14,016
2.60
%
16,790
3.30
%
(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% for
the three months ended June 30, 2023 and March 31, 2023 and 21% for
the three months ended June 30, 2022. The taxable equivalent
adjustment to interest income was $1 for the three months ended
June 30, 2023. For the three months ended March 31, 2023, and June
30, 2022 was the taxable equivalent adjustment to interest income
was $2 for each aforementioned period. (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 6/30/2023 6/30/2022
Average Interest Average Average
Interest Average Balance Income/Expense
Yield Balance Income/Expense Yield
Interest-earning assets: Loans receivable, net of fees (1)
Commercial real estate $
1,108,700
$
26,221
4.73
%
$
927,294
$
19,643
4.24
%
Commercial and industrial
200,160
7,183
7.18
%
175,525
4,201
4.79
%
Commercial construction
155,010
5,453
7.04
%
177,627
4,216
4.75
%
Consumer real estate
352,728
8,289
4.71
%
185,589
3,687
3.97
%
Warehouse facilities
26,471
934
7.06
%
52,664
760
2.88
%
Consumer nonresidential
6,424
302
9.41
%
9,331
343
7.36
%
Total loans
1,849,493
48,382
5.23
%
1,528,030
32,850
4.30
%
Investment securities (2)(3)
308,072
3,012
1.96
%
357,508
3,159
1.77
%
Interest-bearing deposits at other financial institutions
46,606
1,146
4.96
%
103,913
245
0.48
%
Total interest-earning assets
2,204,172
52,540
4.77
%
1,989,451
36,254
3.64
%
Non-interest earning assets: Cash and due from banks
5,874
7,753
Premises and equipment, net
1,180
1,507
Accrued interest and other assets
95,670
92,402
Allowance for loan losses
(18,061
)
(13,981
)
Total Assets $
2,288,835
$
2,077,132
Interest-bearing liabilities: Interest checking $
525,637
$
6,461
2.48
%
$
745,880
$
2,004
0.54
%
Savings and money market
268,867
2,763
2.07
%
322,802
795
0.50
%
Time deposits
347,972
5,742
3.33
%
181,045
888
0.99
%
Wholesale deposits
314,706
5,827
3.73
%
35,000
40
0.23
%
Total interest-bearing deposits
1,457,182
20,793
2.88
%
1,284,727
3,727
0.59
%
Other borrowed funds
143,735
2,827
3.97
%
26,215
169
1.30
%
Subordinated notes, net of issuance costs
19,577
515
5.30
%
19,522
515
5.32
%
Total interest-bearing liabilities
1,620,494
24,135
3.00
%
1,330,464
4,411
0.67
%
Noninterest-bearing liabilities: Noninterest-bearing
deposits
437,161
518,070
Other liabilities
24,768
24,540
Stockholders’ equity
206,412
204,058
Total Liabilities and Stockholders' Equity $
2,288,835
$
2,077,132
Net Interest Margin
28,405
2.60
%
31,843
3.23
%
(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% for
the six months ended June 30, 2023 and 21% for the six months ended
June 30, 2022. The taxable equivalent adjustment to interest income
was $3 and $5 for the six months ended June 30, 2023 and 2022,
respectively. (3) The average balances for investment securities
includes restricted stock.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230725759751/en/
David W. Pijor, Esq., Chairman and Chief Executive Officer
Phone: (703) 436-3802 Email: dpijor@fvcbank.com
Patricia A. Ferrick, President Phone: (703) 436-3822 Email:
pferrick@fvcbank.com
FVCBankcorp (NASDAQ:FVCB)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
FVCBankcorp (NASDAQ:FVCB)
Historical Stock Chart
Von Mai 2023 bis Mai 2024