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
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