FVCBankcorp, Inc. Announces Record Earnings for Second Quarter 2019

Published

FAIRFAX, Va.--(BUSINESS WIRE)-- FVCBankcorp, Inc. (NASDAQ:FVCB) (the “Company”) today reported second quarter 2019 net income of $4.1 million, or $0.28 diluted earnings per share, compared to $3.1 million, or $0.26 diluted earnings per share, for the quarterly period ended June 30, 2018. Weighted-average common shares outstanding for the diluted earnings per share calculations were 14.8 million and 12.1 million for the three months ended June 30, 2019 and 2018, respectively, reflecting the increase from shares issued in 2018 for the initial public offering and acquisition of Colombo Bank (“Colombo”). For the six month period ended June 30, 2019, net income was $8.0 million, or $0.54 per diluted earnings per share, compared to $6.1 million, or $0.50 diluted earnings per share, for the six month period ended June 30, 2018. Before merger-related expenses net of taxes, net income for the six months ended June 30, 2019 was $8.1 million, or $0.55 per diluted share and for the prior year net income for the six month period was $6.4 million, or $0.53 diluted earnings per share. Return on average assets was 1.13% and return on average equity was 9.78% for the second quarter of 2019. For the comparable quarterly June 30, 2018 period, return on average assets was 1.13% and return on average equity was 12.00%. For the six months ended June 30, 2019 and 2018, return on average assets was 1.14% and 1.13%, respectively. Return on average equity for the six months ended June 30, 2019 and 2018 was 9.76% and 12.02%, respectively. Selected Highlights Record Earnings. Earnings increased $1.0 million, or 33%, to $4.1 million for the second quarter of 2019 as compared to the same 2018 period. Net interest margin increased to 3.59% for the quarter ended June 30, 2019 compared to 3.50% for the year ago quarter ended June 30, 2018, and decreased from 3.65% for the linked quarter ended March 31, 2019. Strong Loan Growth. Total loans, net of deferred fees, totaled $1.23 billion at June 30, 2019, an increase of $55.4 million, or 19% annualized, from March 31, 2019. Year-over-year loan growth was $278.7 million, or 29% from June 30, 2018 to June 30, 2019. Excluding the $110 million of loans associated with the Colombo acquisition, organic growth was $168 million, or 18%. Sound Asset Quality. Asset quality remains strong, with nonperforming loans and loans past due 90 days or more as a percentage of total assets of 0.67% at June 30, 2019. Nonperforming loans and loans past due 90 days or more totaled $10.0 million at June 30, 2019, of which $2.9 million were acquired loans from Colombo. Strong Core Deposit Growth. Total deposits increased $56.7 million, to $1.27 billion at June 30, 2019, or 19% annualized, from March 31, 2019. Noninterest-bearing deposits increased $37.4 million, or 16% during 2019 and represent 21% of the total deposit base at June 30, 2019. Improved Tangible Book Value. Tangible book value per share at June 30, 2019 was $11.70, a 25% increase from $9.38 at June 30, 2018. “I continue to be pleased with how our Company performed during the second quarter of 2019. FVCbank has consistently reported record earnings which has been driven by strong loan and deposit growth, a direct result of our expanded regional presence and the strength of our business development teams,” stated David W. Pijor, Chairman and CEO. Balance Sheet Total assets increased to $1.48 billion at June 30, 2019 compared to $1.14 billion at June 30, 2018, an increase of $345.2 million, or 30%. Loans receivable, net of deferred fees, totaled $1.23 billion at June 30, 2019, compared to $955.6 million at June 30, 2018, an increase of $278.7 million, or 29%. Excluding the $110 million of loans associated with the Colombo acquisition, organic growth was $168 million, or 18%. During the second quarter of 2019, average loans grew $70.0 million, or 25% annualized. During the quarter, loan originations totaled approximately $114 million, of which $77 million funded during the quarter. Investment securities increased $17.4 million to $136.2 million at June 30, 2019, compared to $118.8 million at June 30, 2018. Total deposits increased to $1.27 billion at June 30, 2019 compared to $1.01 billion at June 30, 2018, an increase of $260.5 million, or 26%. Core deposits, which represent total deposits less wholesale deposits, increased $255.5 million or 27% to $1.19 billion at June 30, 2019 compared to $931.6 million at June 30, 2018. Wholesale deposits totaled $82.2 million, or 6% of total deposits at June 30, 2019, a decrease of $33.2 million from March 31, 2019. Noninterest-bearing deposits increased $17.0 million to $270.7 million at June 30, 2019 from $253.7 million at March 31, 2019, and represented 21% of total deposits at June 30, 2019. Income Statement Net interest income totaled $12.4 million, an increase of $3.0 million, or 32%, for the quarter ended June 30, 2019, compared to the year ago quarter, and an increase of $607 thousand, or 5% compared to the first quarter of 2019. The Company’s net interest margin increased 9 basis points to 3.59% for the quarter ended June 30, 2019 compared to 3.50% for the quarter ended June 30, 2018. On a linked quarter basis, net interest margin decreased 6 basis points from 3.65% for the three months ended March 31, 2019, primarily a result of a decrease in acquired loan accretion and an increase in the cost of interest-bearing deposits. For the six months ended June 30, 2019, net interest income was $24.1 million compared to $18.1 million for the year to date period ended June 30, 2018, an increase of $6.0 million, or 33%. Cost of deposits, which include noninterest-bearing deposits, for the second quarter of 2019 was 1.36%, compared to 0.95% for the second quarter of 2018, reflecting the increased rate environment from a year ago. The Company has also been successful in adding several new customer relationships at current market rates which have contributed to the increase in deposit costs year-over-year. The average yield for the loan portfolio for the second quarter of 2019 was 5.24% compared to 4.86% for the year ago quarter, and 5.23% for the quarter ended March 31, 2019. Included in net interest income for the second quarter of 2019 is $222 thousand in acquired loan accretion associated with the Company’s acquired loan portfolio, which has contributed to the increase in margin. Acquired loan accretion was $245 thousand for the first quarter of 2019. Noninterest income totaled $539 thousand and $363 thousand for the quarters ended June 30, 2019 and 2018, respectively. Fee income from loans was $53 thousand, an increase of $49 thousand for the quarter ended June 30, 2019 compared to 2018, primarily a result of an increase in commercial loan fee income. Compared to the quarter ended March 31, 2019, fees on loans decreased $294 thousand, all of which was a result of a decrease in loan swap fee income during the quarter ended June 30, 2019. Service charges on deposit accounts and other fee income totaled $376 thousand for the second quarter of 2019, an increase of 50% or $125 thousand from the year ago quarter. This increase in deposit fee income resulted from the increase in core deposit relationships, both organic and acquired, year over year. Noninterest income for the year to date period ended June 30, 2019 was $1.3 million, compared to $748 thousand for the 2018 year to date period, an increase of $529 thousand, or 71%, which was primarily driven by loan swap fee income and service charges on deposit accounts. Noninterest expense totaled $7.3 million for the quarter ended June 30, 2019, compared to $5.8 million for the same three-month period of 2018. Approximately $893 thousand of the increase in noninterest expense from the year ago quarter is attributable to expenses associated with Colombo’s former operations, in addition to merger-related expenses of $16 thousand for the three months ended June 30, 2019. Salary and compensation related expenses increased $921 thousand, or 28%, for the quarter ended June 30, 2019, compared to the same three-month period of 2018, resulting from the increase in staffing from the acquisition and increases in back-office support staff. Occupancy and equipment expense increased $293 thousand year-over-year primarily as a result of the branch locations acquired from Colombo. Increases in data processing and network administration, franchise taxes and other operating expenses for the quarter ended June 30, 2019 compared to the same three-month period of 2018 is primarily growth related. On a linked quarter basis, noninterest expense increased $372 thousand from the three months ended March 31, 2019, primarily a result of salary increases related to the Company’s annual performance review process and an increase in the variable component to employee compensation. For the six months ended June 30, 2019 and 2018, noninterest expense was $14.2 million and $11.1 million, respectively, the increase of which relates directly to the addition of Colombo to the Company’s expense structure. The efficiency ratio for the quarter ended June 30, 2019 was 56.4%, a decrease from 59.9% from the year ago quarter. The efficiency ratios for the six months ended June 30, 2019 and 2018, excluding merger-related expenses were 55.5% and 56.6%, respectively. Asset Quality The Company recorded provision for loan losses of $505 thousand for the three months ended June 30, 2019, compared to $281 thousand for the year ago quarter. Year to date provision expense for 2019 was $1.0 million compared to $639 thousand for the 2018 year to date period. Asset quality remains strong as nonperforming loans and loans ninety days or more past due totaled $10.2 million, or 0.68% of total assets, of which $2.7 million related to acquired loans. All of the Company’s nonperforming loans are secured with three loans having specific reserves totaling $325 thousand. There were no performing troubled debt restructurings (“TDR”) at June 30, 2019, compared to $4.1 million at March 31, 2019, which is now included as part of the nonperforming loan portfolio and represents the decline in the allowance to nonperforming loans ratio. Nonperforming assets (including TDRs and other real estate owned) to total assets was 0.93% at June 30, 2019 compared to 0.83% for March 31, 2019. The allowance for loan losses to total loans was 0.81% for each of the periods ended June 30, 2019 and December 31, 2018. The allowance for loan losses on the Company’s originated portfolio was 0.89% of loans outstanding at June 30, 2019 versus 0.92% at December 31, 2018, a result of acquired loans maturing and moving to the originated portfolio at renewal. One charge-off of $20 thousand was recorded during the second quarter of 2019 which was related to the Company’s purchased consumer installment loan portfolio. About FVCBankcorp Inc. FVCBankcorp, Inc. is the holding company for FVCbank, a wholly-owned subsidiary of FVCB which commenced operations in November 2007. FVCbank is a $1.48 billion Virginia-chartered community bank serving the banking needs of commercial businesses, nonprofit organizations, professional service entities, their owners and employees located in the greater Baltimore and Washington D.C., metropolitan areas. Locally owned and managed, FVCbank is based in Fairfax, Virginia, and has 11 full-service offices in Arlington, Ashburn, Fairfax, Manassas, Reston and Springfield, Virginia, Washington D.C., and Baltimore, Bethesda, Rockville and Silver Spring, Maryland. For more information on the Company’s selected financial information, please visit the Investor Relations page of FVCBankcorp Inc.’s website, www.fvcbank.com. Caution about Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited, statements of goals, intentions, and expectations as to future trends, plans, events or results of the Company’s operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. These forward-looking statements are based on current beliefs that involve significant risks, uncertainties, and assumptions. Factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, include, but are not limited to, the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and in other periodic and current reports filed with the Securities and Exchange Commission. Because of these uncertainties and the assumptions on which the forward-looking statements are based, actual operations and results in the future may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance. FVCBankcorp, Inc. Selected Financial Data (Dollars in thousands, except share data and per share data) (Unaudited)   For the Three Months Ended June 30, For the Six Months Ended June 30, For the Three Months Ended 2019 2018 2019 2018 3/31/2019 12/31/2018 Selected Balances Total assets $ 1,484,600 $ 1,139,449 $ 1,419,763 $ 1,351,576 Total investment securities   141,611   122,644   144,865   130,597 Total loans, net of deferred fees   1,234,372   955,641   1,178,941   1,136,743 Allowance for loan losses   (9,996)   (8,298)   (9,512)   (9,159) Total deposits   1,269,374   1,008,896   1,212,695   1,162,440 Subordinated debt   24,447   24,367   24,427   24,407 Total stockholders’ equity   170,163   103,966   163,993   158,336 Summary Results of Operations Interest income $ 16,990 $ 12,070 $ 32,950 $ 23,411 $ 15,960 $ 15,640 Interest expense   4,619   2,714   8,815   5,292   4,196   3,823 Net interest income   12,371   9,356   24,135   18,119   11,764   11,817 Provision for loan losses   505   281   1,020   639   515   930 Net interest income after provision for loan losses   11,866   9,075   23,115   17,480   11,249   10,887 Noninterest income - loan fees, service charges and other   429   255   1,062   529   633   519 Noninterest income - bank owned life insurance   110   108   215   219   105   109 Noninterest income - gain (loss) on securities sold   -   -   -   -   -   (462) Noninterest expense   7,276   5,822   14,180   11,082   6,904   9,419 Income before taxes   5,129   3,616   10,212   7,146   5,083   1,634 Income tax expense   1,044   539   2,201   1,072   1,157   224 Net income   4,085   3,077   8,011   6,074   3,926   1,410 Per Share Data Net income, basic $ 0.30 $ 0.28 $ 0.58 $ 0.55 $ 0.29 $ 0.10 Net income, diluted $ 0.28 $ 0.26 $ 0.54 $ 0.50 $ 0.27 $ 0.10 Book value $ 12.30 $ 9.39 $ 11.92 $ 11.55 Tangible book value $ 11.70 $ 9.38 $ 11.32 $ 10.90 Shares outstanding   13,839,772   11,076,266   13,755,249   13,712,615 Selected Ratios Net interest margin (2)   3.59 %   3.50 %   3.62 %   3.45 %   3.65 %   3.59 % Return on average assets (2)   1.13 %   1.13 %   1.14 %   1.13 %   1.16 %   0.42 % Return on average equity (2)   9.78 %   12.00 %   9.76 %   12.02 %   9.74 %   3.65 % Efficiency (1)   56.36 %   59.90 %   55.80 %   58.74 %   55.22 %   75.69 % Loans, net of deferred fees to total deposits   97.24 %   94.72 %   97.22 %   97.79 % Noninterest-bearing deposits to total deposits   21.33 %   28.19 %   20.92 %   20.07 % Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP) (3) Net income (from above) $ 4,085 $ 3,077 $ 8,011 $ 6,074 $ 3,926 $ 1,410 Add: Merger and acquisition expense   16   397   83   397   67   2,668 Add: Loss on sales of securities available-for-sale   -   -   -   -   -   462 Less: provision for income taxes associated with merger and acquisition expense   (4)   (83)   (19)   (83)   (15)   (649) Net income, as adjusted $ 4,097 $ 3,391 $ 8,075 $ 6,388 $ 3,978 $ 3,891 Net income, diluted, on an operating basis $ 0.28 $ 0.28 $ 0.55 $ 0.53 $ 0.27 $ 0.26 Return on average assets (non-GAAP operating earnings)   1.13 %   1.24 %   1.15 %   1.19 %   1.17 %   1.16 % Return on average equity (non-GAAP operating earnings)   9.81 %   13.23 %   9.84 %   12.64 %   9.86 %   10.07 % Efficiency ratio (non-GAAP operating earnings)   56.24 %   55.82 %   55.47 %   56.63 %   54.69 %   54.25 % Capital Ratios - Bank Tangible common equity (to tangible assets)   10.97 %   9.12 %   11.03 %   11.16 % Total capital (to risk weighted assets)   13.21 %   12.79 %   13.21 %   14.02 % Common equity tier 1 capital (to risk weighted assets)   12.49 %   12.00 %   12.50 %   13.27 % Tier 1 capital (to risk weighted assets)   12.49 %   12.00 %   12.50 %   13.27 % Tier 1 leverage (to average assets)   12.10 %   11.58 %   12.57 %   12.41 % Asset Quality Nonperforming loans and loans 90+ past due $ 9,989 $ 938 $ 3,791 $ 3,211 Performing troubled debt restructurings (TDRs)   -   1,600   4,092   203 Other real estate owned   3,866   3,866   3,866   4,224 Nonperforming loans and loans 90+ past due to total assets (excl. TDRs)   0.67 %   0.08 %   0.27 %   0.24 % Nonperforming assets to total assets   0.93 %   0.42 %   0.54 %   0.55 % Nonperforming assets (including TDRs) to total assets   0.93 %   0.56 %   0.83 %   0.57 % Allowance for loan losses to loans   0.81 %   0.87 %   0.81 %   0.81 % Allowance for loan losses to nonperforming loans   100.07 %   884.65 %   250.91 %   285.24 % Net charge-offs (recovery) $ 20 $ 85 $ 182 $ 66 $ 162 $ 347 Net charge-offs (recovery) to average loans (2)   0.01 %   0.04 %   0.03 %   0.01 %   0.06 %   0.13 % Selected Average Balances Total assets $ 1,444,588 $ 1,092,950 $ 1,399,949 $ 1,074,807 $ 1,354,814 $ 1,341,991 Total earning assets   1,384,516   1,069,035   1,346,110   1,051,330   1,307,278   1,305,573 Total loans, net of deferred fees   1,207,933   930,133   1,173,134   912,025   1,137,948   1,101,539 Total deposits   1,228,595   958,304   1,188,841   940,066   1,148,646   1,141,500 Other Data Noninterest-bearing deposits $ 270,711 $ 284,452 $ 253,723 $ 233,318 Interest-bearing checking, savings and money market   596,701   396,667   546,067   533,732 Time deposits   319,740   250,492   297,469   310,985 Wholesale deposits   82,222   77,285   115,436   84,405 (1) Efficiency ratio is calculated as noninterest expense divided by the sum of net interest income and noninterest income, excluding gains on sales of investment securities and other real estate owned. (2) Annualized. (3) Some of the financial measures discussed throughout the press release are "non-GAAP financial measures." In accordance with SEC rules, the Company classifies a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP in our statements of income, balance sheets or statements of cash flows. FVCBankcorp, Inc. Summary Consolidated Statements of Condition (Dollars in thousands) (Unaudited)   % Change % Change Current From 6/30/2019 3/31/2019 Quarter 12/31/2018 6/30/2018 Year Ago   Cash and due from banks $ 15,201   $ 13,404   13.4 % $ 9,435   $ 6,309   140.9 % Interest-bearing deposits at other financial institutions 29,149   30,359   -4.0 % 34,060   30,734 -5.2 % Investment securities 136,232   139,474   -2.3 % 125,298   118,844   14.6 % Restricted stock, at cost 5,379   5,391   -0.2 % 5,299   3,800   41.6 % Loans, net of fees: Commercial real estate 733,354   693,439   5.8 % 682,203   572,039   28.2 % Commercial and industrial 134,466   137,869   -2.5 % 137,080   110,359   21.8 % Commercial construction 217,105   187,760   15.6 % 152,526   138,973   56.2 % Consumer residential 124,933   132,638   -5.8 % 132,280   106,747   17.0 % Consumer nonresidential 24,514   27,235   -10.0 % 32,654   27,523   -10.9 % Total loans, net of fees 1,234,372   1,178,941   4.7 % 1,136,743   955,641   29.2 % Allowance for loan losses (9,996 ) (9,512 ) 5.1 % (9,159 ) (8,298 ) 20.5 % Loans, net 1,224,376   1,169,429   4.7 % 1,127,584   947,343   29.2 %   Premises and equipment, net 2,049   2,218   -7.6 % 2,271   1,401   46.3 % Goodwill and intangibles, net 8,223   8,342   -1.4 % 8,443   88   9,244.3 % Bank owned life insurance (BOLI) 26,621   16,511   61.2 % 16,406   16,187   64.5 % Other real estate owned 3,866   3,866   0.0 % 4,224   3,866   0.0 % Other assets 33,504   30,769   8.9 % 18,556   10,877   208.0 %   Total Assets $ 1,484,600   $ 1,419,763   4.6 % $ 1,351,576   $ 1,139,449   30.3 %   Deposits: Noninterest-bearing $ 270,711   $ 253,723   6.7 % $ 233,318   $ 284,452   -4.8 % Interest-bearing checking 301,319   284,150   6.0 % 312,446   222,522   35.4 % Savings and money market 295,382   261,917   12.8 % 221,286   174,145   69.6 % Time deposits 319,740   297,469   7.5 % 310,985   250,492   27.6 % Wholesale deposits 82,222   115,436   -28.8 % 84,405   77,285   6.4 % Total deposits 1,269,374   1,212,695   4.7 % 1,162,440   1,008,896   25.8 %   Subordinated notes, net of issuance costs 24,447   24,427   0.1 % 24,407   24,367   0.3 % Other liabilities 20,616   18,648   10.6 % 6,393   2,220   828.6 %   Stockholders’ equity 170,163   163,993   3.8 % 158,336   103,966   63.7 %   Total Liabilities & Stockholders' Equity $ 1,484,600   $ 1,419,763   4.6 % $ 1,351,576   $ 1,139,449   30.3 %   FVCBankcorp, Inc. Summary Consolidated Income Statements (In thousands, except per share data) (Unaudited)     For the Three Months Ended % Change % Change Current From 6/30/2019 3/31/2019 Quarter 6/30/2018 Year Ago   Net interest income $ 12,371 $ 11,764 5.2 % $ 9,356 32.2 % Provision for loan losses 505 515 -1.9 % 281 79.7 % Net interest income after provision for loan losses 11,866 11,249 5.5 % 9,075 30.8 %   Noninterest income: Fees on Loans 53 347 -84.7 % 4 1,225.0 % Service charges on deposit accounts 229 182 25.8 % 152 50.7 % BOLI income 110 105 4.8 % 108 1.9 % Other fee income 147 104 41.3 % 99 48.5 % Total noninterest income 539 738 -27.0 % 363 48.5 %   Noninterest expense: Salaries and employee benefits 4,245 3,938 7.8 % 3,324 27.7 % Occupancy and equipment expense 873 827 5.6 % 580 50.5 % Data processing and network administration 343 439 -21.9 % 272 26.1 % State franchise taxes 426 422 0.9 % 296 43.9 % Professional fees 274 130 110.8 % 132 107.6 % Merger and acquisition expense 16 67 -76.1 % 397 100.0 % Other operating expense 1,099 1,081 1.7 % 821 33.9 % Total noninterest expense 7,276 6,904 5.4 % 5,822 25.0 % Net income before income taxes 5,129 5,083 0.9 % 3,616 41.8 % Income tax expense 1,044 1,157 -9.8 % 539 93.6 % Net Income $ 4,085 $ 3,926 4.0 % $ 3,077 32.8 %   Earnings per share - basic $ 0.30 $ 0.29 3.5 % $ 0.28 6.0 % Earnings per share - diluted $ 0.28 $ 0.27 3.8 % $ 0.26 8.1 % Weighted-average common shares outstanding - basic 13,802,712 13,724,232 11,023,775 Weighted-average common shares outstanding - diluted 14,817,462 14,779,955 12,063,423   Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP): GAAP net income reported above $ 4,085 $ 3,926 $ 3,077 Add: Merger and acquisition expense above 16 67 397 Subtract: provision for income taxes associated with merger and acquisition expense (4) (15) (83) Net Income, excluding above merger and acquisition charges $ 4,097 $ 3,978 $ 3,391 Earnings per share - basic (excluding merger and acquisition charges) $ 0.30 $ 0.29 $ 0.31 Earnings per share - diluted (excluding merger and acquisition charges) $ 0.28 $ 0.27 $ 0.28   Return on average assets (non-GAAP operating earnings) 1.13% 1.17% 1.24% Return on average equity (non-GAAP operating earnings) 9.81% 9.86% 13.23% Efficiency ratio (non-GAAP operating earnings) 56.24% 54.69% 55.82% FVCBankcorp, Inc. Summary Consolidated Income Statements (In thousands, except per share data) (Unaudited)     For the Six Months Ended % Change From 6/30/2019 6/30/2018 Year Ago   Net interest income $ 24,135 $ 18,119 33.2 % Provision for loan losses 1,020 639 59.6 % Net interest income after provision for loan losses 23,115 17,480 32.2 %   Noninterest income: Fees on Loans 400 62 545.2 % Service charges on deposit accounts 411 293 40.3 % BOLI income 215 219 -1.8 % Other fee income 251 174 44.3 % Total noninterest income 1,277 748 70.7 %   Noninterest expense: Salaries and employee benefits 8,183 6,509 25.7 % Occupancy and equipment expense 1,700 1,152 47.6 % Data processing and network administration 782 541 44.5 % State franchise taxes 848 592 43.2 % Professional fees 404 288 40.3 % Merger and acquisition expense 83 397 100.0 % Other operating expense 2,180 1,603 36.0 % Total noninterest expense 14,180 11,082 28.0 % Net income before income taxes 10,212 7,146 42.9 % Income tax expense 2,201 1,072 105.4 % Net Income $ 8,011 $ 6,074 31.9 %   Earnings per share - basic $ 0.58 $ 0.55 5.2 % Earnings per share - diluted $ 0.54 $ 0.50 7.8 % Weighted-average common shares outstanding - basic 13,763,472 10,978,846 Weighted-average common shares outstanding - diluted 14,798,708 12,092,505   Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP): GAAP net income reported above $ 8,011 $ 6,074 Add: Merger and acquisition expense above 83 397 Subtract: provision for income taxes associated with merger and acquisition expense (19) (83) Net Income, excluding above merger and acquisition charges $ 8,075 $ 6,388 Earnings per share - basic (excluding merger and acquisition charges) $ 0.59 $ 0.58 Earnings per share - diluted (excluding merger and acquisition charges) $ 0.55 $ 0.53   Return on average assets (non-GAAP operating earnings) 1.15% 1.19% Return on average equity (non-GAAP operating earnings) 9.84% 12.64% Efficiency ratio (non-GAAP operating earnings) 55.47% 56.63% FVCBankcorp, Inc. Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities (Dollars in thousands) (Unaudited)     For the Three Months Ended 6/30/2019 3/31/2019 6/30/2018 Average Average Average Average Average Average Balance Yield Balance Yield Balance Yield Interest-earning assets: Loans receivable, net of fees (1) Commercial real estate $ 717,248 4.86 % $ 679,268 4.72 % $ 564,251 4.59 % Commercial and industrial 135,335 6.07 % 134,803 6.63 % 105,175 5.65 % Commercial construction 198,927 5.71 % 158,880 5.73 % 123,262 5.32 % Consumer residential 129,605 5.25 % 133,939 5.26 % 108,451 4.51 % Consumer nonresidential 26,818 7.70 % 31,058 7.58 % 28,994 6.40 % Total loans 1,207,933 5.24 % 1,137,948 5.23 % 930,133 4.86 %   Investment securities (2)(3) 144,056 2.73 % 144,109 2.72 % 123,488 2.43 % Interest-bearing deposits at other financial institutions 32,527 2.39 % 25,221 1.95 % 15,414 0.83 % Total interest-earning assets 1,384,516 4.91 % 1,307,278 4.88 % 1,069,035 4.52 %   Non-interest earning assets: Cash and due from banks 7,597 5,807 2,348 Premises and equipment, net 2,152 2,294 1,394 Accrued interest and other assets 60,016 48,489 28,361 Allowance for loan losses (9,693) (9,054) (8,188)   Total Assets $ 1,444,588 $ 1,354,814 $ 1,092,950   Interest-bearing liabilities: Interest checking $ 301,132 1.28 % $ 296,010 1.27 % $ 195,130 1.00 % Savings and money market 275,129 1.54 % 235,926 1.46 % 194,327 1.03 % Time deposits 299,551 2.17 % 307,780 1.93 % 249,664 1.47 % Wholesale deposits 88,064 2.52 % 74,781 2.42 % 91,028 1.70 % Total interest-bearing deposits 963,876 1.74 % 914,497 1.66 % 730,149 1.26 %   Other borrowed funds 4,754 2.65 % 9,302 2.68 % 6,627 2.00 % Subordinated notes, net of issuance costs 24,434 6.48 % 24,414 6.56 % 24,354 6.51 % Total interest-bearing liabilities 993,064 1.87 % 948,213 1.79 % 761,130 1.43 %   Noninterest-bearing liabilities: Noninterest-bearing deposits 264,719 234,149 228,155 Other liabilities 19,776 11,170 1,132   Stockholders’ equity 167,029 161,282 102,533   Total Liabilities and Stockholders' Equity $ 1,444,588 $ 1,354,814 $ 1,092,950   Net Interest Margin (1) 3.59 % 3.65 % 3.50 %   (1) Non-accrual loans are included in average balances. (2) The average yields for investment securities are reported on a fully taxable-equivalent basis at a rate of 22.5%. (3) The average balances for investment securities includes restricted stock. FVCBankcorp, Inc. Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities (Dollars in thousands) (Unaudited)     For the Six Months Ended 6/30/2019 6/30/2018 Average Average Average Average Balance Yield Balance Yield Interest-earning assets: Loans receivable, net of fees (1) Commercial real estate $ 698,363 4.79 % $ 551,364 4.61 % Commercial and industrial 135,070 6.35 % 99,915 5.42 % Commercial construction 179,014 5.71 % 122,725 5.08 % Consumer residential 131,760 5.25 % 108,632 4.41 % Consumer nonresidential 28,927 7.64 % 29,389 6.31 % Total loans 1,173,134 5.23 % 912,025 4.79 %   Investment securities (2)(3) 144,082 2.72 % 123,176 2.40 % Interest-bearing deposits at other financial institutions 28,894 2.20 % 16,129 0.96 % Total interest-earning assets 1,346,110 4.90 % 1,051,330 4.46 %   Non-interest earning assets: Cash and due from banks 6,707 2,440 Premises and equipment, net 2,223 1,312 Accrued interest and other assets 54,284 27,734 Allowance for loan losses (9,375) (8,009)   Total Assets $ 1,399,949 $ 1,074,807   Interest-bearing liabilities: Interest checking $ 298,585 1.28 % $ 191,212 0.94 % Savings and money market 255,636 1.51 % 191,634 0.99 % Time deposits 303,643 2.07 % 256,661 1.43 % Wholesale deposits 81,459 2.49 % 99,102 1.57 % Total interest-bearing deposits 939,323 1.70 % 738,609 1.21 %   Other borrowed funds 7,015 2.67 % 7,472 1.84 % Subordinated notes, net of issuance costs 24,424 6.52 % 24,344 6.54 % Total interest-bearing liabilities 970,762 1.83 % 770,425 1.39 %   Noninterest-bearing liabilities: Noninterest-bearing deposits 249,518 201,457 Other liabilities 15,498 1,821   Stockholders’ equity 164,171 101,104   Total Liabilities and Stockholders' Equity $ 1,399,949 $ 1,074,807   Net Interest Margin (1) 3.62 % 3.45 %   (1) Non-accrual loans are included in average balances. (2) The average yields for investment securities are reported on a fully taxable-equivalent basis at a rate of 22.5%. (3) The average balances for investment securities includes restricted stock.   View source version on businesswire.com: https://www.businesswire.com/news/home/20190718005718/en/ David W. Pijor, 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 Source: FVCBankcorp, Inc.

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