FVCBankcorp, Inc. (NASDAQ:FVCB) (the “Company”) today reported
third quarter 2019 net income of $4.1 million, or $0.28 diluted
earnings per share, compared to $3.4 million, or $0.27 diluted
earnings per share, for the quarterly period ended September 30,
2018. Weighted-average common shares outstanding for the diluted
earnings per share calculations were 14.9 million and 12.5 million
for the three months ended September 30, 2019 and 2018,
respectively, reflecting the increase from shares issued in 2018
for the initial public offering, completed in September 2018, and
acquisition of Colombo Bank (“Colombo”), completed in October
2018.
For the nine month period ended September 30, 2019, net income
was $12.1 million, or $0.82 per diluted earnings per share,
compared to $9.5 million, or $0.78 diluted earnings per share, for
the nine month period ended September 30, 2018. Before
merger-related expenses net of taxes, net income for the nine
months ended September 30, 2019 was $12.2 million, or $0.82 per
diluted share and for the prior year net income for the nine month
period was $10.0 million, or $0.82 diluted earnings per share.
Return on average assets was 1.10% and return on average equity
was 9.46% for the third quarter of 2019. For the comparable
quarterly September 30, 2018 period, return on average assets was
1.18% and return on average equity was 12.23%. For the nine months
ended September 30, 2019 and 2018, return on average assets was
1.13% and 1.15%, respectively. Return on average equity for the
nine months ended September 30, 2019 and 2018 was 9.65% and 12.09%,
respectively.
Selected Highlights
- Continued Loan Growth. Total loans, net of deferred
fees, totaled $1.24 billion at September 30, 2019, an increase of
$9.0 million from June 30, 2019. Year-over-year loan growth was
$265.1 million, or 27% from September 30, 2018 to September 30,
2019. Excluding $104 million of loans associated with the Colombo
acquisition, organic growth was $161 million, or 16%.
- Strong Core Deposit Growth. Total deposits increased
$48.3 million, to $1.32 billion at September 30, 2019, or 15%
annualized, from June 30, 2019. Noninterest-bearing deposits
increased $61.5 million, or 26% during 2019 and represent 22% of
the total deposit base at September 30, 2019.
- Record Earnings. Earnings increased $708 thousand, or
21%, to $4.1 million for the third quarter of 2019 as compared to
the same 2018 period. Net interest income increased $2.2 million,
or 22%, to $12.1 million for the three months ended September 30,
2019 compared to the same period of 2018. Net interest margin
decreased to 3.41% for the quarter ended September 30, 2019. See
below under “Income Statement” for additional information on
changes to the Company’s net interest margin.
- Improved Tangible Book Value. Tangible book value per
share at September 30, 2019 was $12.03, an 11% increase from $10.81
at September 30, 2018.
“Growth in core relationships continues to be a driver of our
quarterly earnings. Loan growth was less than prior quarters as we
purposefully were more selective of originations in our
construction and commercial real estate portfolios. However, our
loan pipeline continues to be strong as we focus our efforts to
growing our commercial & industrial portfolio,” stated David W.
Pijor, Chairman and CEO.
Balance Sheet
Total assets increased to $1.57 billion at September 30, 2019
compared to $1.18 billion at September 30, 2018, an increase of
$389.8 million, or 33%. Loans receivable, net of deferred fees,
totaled $1.24 billion at September 30, 2019, compared to $978.3
million at September 30, 2018, an increase of $265.1 million, or
27%. Excluding the $104 million of loans associated with the
Colombo acquisition, organic growth was $161 million, or 16%.
During the third quarter of 2019, average loans grew $33.4 million,
or 11% annualized. During the quarter, loan originations totaled
approximately $79.2 million, of which $37.3 million funded during
the quarter, reflecting slower loan growth.
Investment securities increased $23.4 million to $136.5 million
at September 30, 2019, compared to $113.1 million at September 30,
2018.
Total deposits increased to $1.32 billion at September 30, 2019
compared to $994.0 million at September 30, 2018, an increase of
$323.7 million, or 33%. Core deposits, which represent total
deposits less wholesale deposits, increased $301.3 million or 32%
to $1.24 billion at September 30, 2019 compared to $943.4 million
at September 30, 2018. Wholesale deposits totaled $73.0 million, or
6% of total deposits at September 30, 2019, a decrease of $9.2
million from June 30, 2019. Noninterest-bearing deposits increased
$24.1 million to $294.8 million at September 30, 2019 from $270.7
million at June 30, 2019, and represented 22% of total deposits at
September 30, 2019.
Income Statement
Net interest income totaled $12.1 million, an increase of $2.2
million, or 22%, for the quarter ended September 30, 2019, compared
to the year ago quarter, and decreased slightly by $279 thousand,
or 2% compared to the second quarter of 2019, a result of increased
deposit costs. The Company’s net interest margin decreased 13 basis
points to 3.41% for the quarter ended September 30, 2019 compared
to 3.54% for the quarter ended September 30, 2018. On a linked
quarter basis, net interest margin decreased 18 basis points from
3.59% for the three months ended June 30, 2019. During the third
quarter of 2019, in addition to the repricing of the loan portfolio
as a result of two 25 basis point rate cuts, several acquired loans
with premium loan marks paid off during the quarter, which
decreased loan interest income by $310 thousand as compared to the
prior quarter, decreasing net interest margin by 9 basis points.
Acquired loan accretion included in loan interest income was $43
thousand and $353 thousand for the three months ended September 30,
2019 and June 30, 2019, respectively. The average yield for the
loan portfolio for the third quarter of 2019 was 5.13% compared to
4.99% for the year ago quarter, and 5.24% for the quarter ended
June 30, 2019.
The cost of deposits, which includes noninterest-bearing
deposits, increased 6 basis points to 1.42% for the third quarter
of 2019 as compared to 1.36% for the second quarter of 2019, and
1.03% for the third quarter of 2018, reflecting the increased rate
environment from a year ago. The Company had several large customer
transactions that occurred at the end of the second quarter, prior
to the Federal Reserve rate cuts, which impacted the yields on
interest checking and time deposits for the third quarter of
2019.
For the nine months ended September 30, 2019, net interest
income was $36.2 million compared to $28.0 million for the year to
date period ended September 30, 2018, an increase of $8.2 million,
or 29%.
Noninterest income totaled $680 thousand and $748 thousand for
the quarters ended September 30, 2019 and 2018, respectively. Fee
income from loans was $101 thousand, a decrease of $310 thousand
for the quarter ended September 30, 2019 compared to 2018,
primarily a result of a decrease in loan swap fee income. Service
charges on deposit accounts and other fee income totaled $378
thousand for the third quarter of 2019, an increase of 67% or $151
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 September 30, 2019 was $2.0 million,
compared to $1.5 million for the 2018 year to date period, an
increase of $461 thousand, or 31%, which was primarily driven by
loan swap fee income and service charges on deposit accounts.
Noninterest expense totaled $7.4 million for the quarter ended
September 30, 2019, compared to $5.9 million for the same
three-month period of 2018. Approximately $812 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 $51 thousand
for the three months ended September 30, 2019. Salary and
compensation related expenses increased $858 thousand, or 25%, for
the quarter ended September 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 $291 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 September 30, 2019 compared to the same
three-month period of 2018 is primarily growth related. On a linked
quarter basis, noninterest expense increased $87 thousand from the
three months ended June 30, 2019. For the nine months ended
September 30, 2019 and 2018, noninterest expense was $21.5 million
and $17.0 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 September 30, 2019
was 57.7%, an increase from 56.0% from the year ago quarter. The
efficiency ratios for the nine months ended September 30, 2019 and
2018, excluding merger-related expenses and gain on securities were
56.1% and 55.5%, respectively.
Asset Quality
The Company recorded provision for loan losses of $235 thousand
for the three months ended September 30, 2019, compared to $351
thousand for the year ago quarter. Year to date provision expense
for 2019 was $1.3 million compared to $990 thousand for the 2018
year to date period. Nonperforming loans and loans ninety days or
more past due at September 30, 2019 totaled $10.4 million, or 0.67%
of total assets, of which $1.2 million related to acquired loans.
This compares to $10.0 million in nonperforming loans and loans
ninety days or more past due at June 30, 2019, or 0.67% of total
assets. All of the Company’s nonperforming loans are secured and
have specific reserves totaling $392 thousand, representing the
expected losses associated with those loans. Included in
nonperforming loans is one loan totaling $3.9 million which is
collateralized by property that is under a purchase and sales
agreement that the Company expects will close during the fourth
quarter of 2019, and for which the Company expects to receive full
repayment. There were no troubled debt restructurings (“TDR”) at
September 30, 2019. Nonperforming assets (including other real
estate owned, or OREO) to total assets was 0.91% at September 30,
2019 compared to 0.93% for June 30, 2019. The property that is
recorded as OREO is also under a purchase and sales agreement which
is expected to close during 2020. No loss is expected on the sale
of OREO.
The allowance for loan losses to total loans was 0.81% for each
of the periods ended September 30, 2019 and December 31, 2018. The
allowance for loan losses on the Company’s originated loan
portfolio, excluding the credit mark on acquired loans, was 0.89%
of loans outstanding at September 30, 2019. Net charge-offs of $163
thousand were recorded during the third quarter of 2019 which were
primarily 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 $1.57 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
September 30,
For the Nine Months Ended
September 30,
For the Three Months
Ended
2019
2018
2019
2018
6/30/2019
12/31/2018
Selected Balances Total assets
$
1,565,196
$
1,175,437
$
1,484,600
$
1,351,576
Total investment securities
142,549
116,931
141,611
130,597
Total loans, net of deferred fees
1,243,405
978,304
1,234,372
1,136,743
Allowance for loan losses
(10,068
)
(8,576
)
(9,996
)
(9,159
)
Total deposits
1,317,720
993,986
1,269,374
1,162,440
Subordinated debt
24,467
24,387
24,447
24,407
Other borrowings
15,000
15,000
-
-
Total stockholders’ equity
175,069
138,776
170,163
158,336
Summary Results of Operations Interest income
$
17,006
$
12,873
$
49,957
$
36,284
$
16,990
$
15,640
Interest expense
4,914
2,995
13,729
8,287
4,619
3,823
Net interest income
12,092
9,878
36,228
27,997
12,371
11,817
Provision for loan losses
235
351
1,255
990
505
930
Net interest income after provision for loan losses
11,857
9,527
34,973
27,007
11,866
10,887
Noninterest income - loan fees, service charges and other
479
638
1,539
1,166
429
519
Noninterest income - bank owned life insurance
198
110
414
329
110
109
Noninterest income - gain (loss) on securities sold
3
-
3
-
-
(462
)
Noninterest expense
7,363
5,948
21,543
17,030
7,276
9,419
Income before taxes
5,174
4,327
15,386
11,472
5,129
1,634
Income tax expense
1,081
942
3,282
2,013
1,044
224
Net income
4,093
3,385
12,104
9,459
4,085
1,410
Per Share Data Net income, basic
$
0.30
$
0.30
$
0.88
$
0.85
$
0.30
$
0.10
Net income, diluted
$
0.28
$
0.27
$
0.82
$
0.78
$
0.28
$
0.10
Book value
$
12.62
$
10.82
$
12.30
$
11.55
Tangible book value
$
12.03
$
10.81
$
11.70
$
10.90
Shares outstanding
13,874,776
12,831,040
13,839,772
13,712,615
Selected Ratios Net interest margin (2)
3.41
%
3.54
%
3.55
%
3.48
%
3.59
%
3.59
%
Return on average assets (2)
1.10
%
1.18
%
1.13
%
1.15
%
1.13
%
0.42
%
Return on average equity (2)
9.46
%
12.23
%
9.65
%
12.09
%
9.78
%
3.65
%
Efficiency (1)
57.65
%
55.98
%
56.42
%
57.74
%
56.36
%
75.69
%
Loans, net of deferred fees to total deposits
94.36
%
98.42
%
97.24
%
97.79
%
Noninterest-bearing deposits to total deposits
22.37
%
21.31
%
21.33
%
20.07
%
Reconciliation of Net Income (GAAP) to Operating Earnings
(Non-GAAP) (3) Net income (from above)
$
4,093
$
3,385
$
12,104
$
9,459
$
4,085
$
1,410
Add: Merger and acquisition expense
51
274
133
671
16
2,668
Add (Subtract): Loss (Gain) on sales of securities
available-for-sale
(3
)
-
(3
)
-
-
462
Less: provision for income taxes associated with non-GAAP
adjustments
(11
)
(24
)
(30
)
(107
)
(4
)
(649
)
Net income, as adjusted
$
4,130
$
3,635
$
12,204
$
10,023
$
4,097
$
3,891
Net income, diluted, on an operating basis
$
0.28
$
0.29
$
0.82
$
0.82
$
0.28
$
0.26
Return on average assets (non-GAAP operating earnings)
1.11
%
1.27
%
1.14
%
1.22
%
1.13
%
1.16
%
Return on average equity (non-GAAP operating earnings)
9.54
%
13.13
%
9.73
%
12.81
%
9.81
%
10.07
%
Efficiency ratio (non-GAAP operating earnings)
57.26
%
53.40
%
56.07
%
55.47
%
56.24
%
54.25
%
Capital Ratios - Bank Tangible common equity (to tangible
assets)
10.72
%
11.80
%
10.97
%
11.16
%
Total capital (to risk weighted assets)
13.40
%
13.88
%
13.21
%
14.02
%
Common equity tier 1 capital (to risk weighted assets)
12.68
%
13.08
%
12.49
%
13.27
%
Tier 1 capital (to risk weighted assets)
12.68
%
13.08
%
12.49
%
13.27
%
Tier 1 leverage (to average assets)
12.11
%
12.32
%
12.10
%
12.41
%
Asset Quality Nonperforming loans and loans 90+ past due
$
10,444
$
2,021
$
9,989
$
3,211
Performing troubled debt restructurings (TDRs)
-
267
-
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
%
0.17
%
0.67
%
0.24
%
Nonperforming assets to total assets
0.91
%
0.50
%
0.93
%
0.55
%
Nonperforming assets (including TDRs) to total assets
0.91
%
0.52
%
0.93
%
0.57
%
Allowance for loan losses to loans
0.81
%
0.88
%
0.81
%
0.81
%
Allowance for loan losses to nonperforming loans
96.40
%
424.34
%
100.07
%
285.24
%
Net charge-offs (recovery)
$
163
$
73
$
345
$
139
$
20
$
347
Net charge-offs (recovery) to average loans (2)
0.05
%
0.03
%
0.04
%
0.01
%
0.01
%
0.13
%
Selected Average Balances Total assets
$
1,483,430
$
1,142,642
$
1,428,082
$
1,097,667
$
1,444,588
$
1,341,991
Total earning assets
1,406,485
1,116,154
1,366,456
1,073,175
1,384,516
1,305,573
Total loans, net of deferred fees
1,241,360
959,992
1,196,126
928,190
1,207,933
1,101,539
Total deposits
1,243,490
1,002,079
1,207,258
960,964
1,228,595
1,141,500
Other Data Noninterest-bearing deposits
$
294,825
$
211,808
$
270,711
$
233,318
Interest-bearing checking, savings and money market
622,818
485,319
596,701
533,732
Time deposits
327,098
246,272
319,740
310,985
Wholesale deposits
72,979
50,587
82,222
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
9/30/2019
6/30/2019
Quarter
12/31/2018
9/30/2018
Year Ago
Cash and due from banks
$
19,424
$
15,201
27.8
%
$
9,435
$
8,939
117.3
%
Interest-bearing deposits at
other financial institutions
92,986
29,149
219.0
%
34,060
46,396
100.4
%
Investment securities
136,532
136,232
0.2
%
125,298
113,131
20.7
%
Restricted stock, at cost
6,017
5,379
11.9
%
5,299
3,800
58.3
%
Loans, net of fees:
Commercial real estate
757,619
733,354
3.3
%
682,203
592,083
28.0
%
Commercial and industrial
124,666
134,466
-7.3
%
137,080
108,331
15.1
%
Commercial construction
214,816
217,105
-1.1
%
152,526
144,140
49.0
%
Consumer residential
121,173
124,933
-3.0
%
132,280
107,207
13.0
%
Consumer nonresidential
25,131
24,514
2.5
%
32,654
26,543
-5.3
%
Total loans, net of fees
1,243,405
1,234,372
0.7
%
1,136,743
978,304
27.1
%
Allowance for loan losses
(10,068
)
(9,996
)
0.7
%
(9,159
)
(8,576
)
17.4
%
Loans, net
1,233,337
1,224,376
0.7
%
1,127,584
969,728
27.2
%
Premises and equipment, net
2,029
2,049
-1.0
%
2,271
1,420
42.9
%
Goodwill and intangibles, net
8,119
8,223
-1.3
%
8,443
83
9,681.9
%
Bank owned life insurance
(BOLI)
26,820
26,621
0.7
%
16,406
16,297
64.6
%
Other real estate owned
3,866
3,866
0.0
%
4,224
3,866
0.0
%
Other assets
36,066
33,504
7.6
%
18,556
11,777
206.2
%
Total Assets
$
1,565,196
$
1,484,600
5.4
%
$
1,351,576
$
1,175,437
33.2
%
Deposits:
Noninterest-bearing
$
294,825
$
270,711
8.9
%
$
233,318
$
211,808
39.2
%
Interest-bearing checking
349,574
301,319
16.0
%
312,446
276,197
26.6
%
Savings and money market
273,244
295,382
-7.5
%
221,286
209,122
30.7
%
Time deposits
327,098
319,740
2.3
%
310,985
246,272
32.8
%
Wholesale deposits
72,979
82,222
-11.2
%
84,405
50,587
44.3
%
Total deposits
1,317,720
1,269,374
3.8
%
1,162,440
993,986
32.6
%
Other borrowed funds
15,000
- -
100.0
%
- -
15,000
0.0
%
Subordinated notes, net of
issuance costs
24,467
24,447
0.1
%
24,407
24,387
0.3
%
Other liabilities
32,940
20,616
59.8
%
6,393
3,288
901.8
%
Stockholders’ equity
175,069
170,163
2.9
%
158,336
138,776
26.2
%
Total Liabilities &
Stockholders'
Equity
$
1,565,196
$
1,484,600
5.4
%
$
1,351,576
$
1,175,437
33.2
%
FVCBankcorp, Inc. Summary Consolidated Income
Statements (In thousands, except per share data)
(Unaudited) For the Three Months Ended
% Change % Change Current From
9/30/2019 6/30/2019 Quarter 9/30/2018
Year Ago Net interest income
$
12,092
$
12,371
-2.3
%
$
9,878
22.4
%
Provision for loan losses
235
505
-53.5
%
351
-33.0
%
Net interest income after provision for loan losses
11,857
11,866
-0.1
%
9,527
24.5
%
Noninterest income: Fees on Loans
101
53
90.6
%
411
-75.4
%
Service charges on deposit accounts
240
229
4.8
%
158
51.9
%
Gains on sale of securities available-for-sale
3
- -
100.0
%
- -
100.0
%
BOLI income
198
110
80.0
%
110
80.0
%
Other fee income
138
147
-6.1
%
69
100.0
%
Total noninterest income
680
539
26.2
%
748
-9.1
%
Noninterest expense: Salaries and employee benefits
4,349
4,245
2.4
%
3,491
24.6
%
Occupancy and equipment expense
882
873
1.0
%
591
49.2
%
Data processing and network administration
414
343
20.7
%
321
29.0
%
State franchise taxes
424
426
-0.5
%
296
43.2
%
Professional fees
230
274
-16.1
%
147
56.5
%
Merger and acquisition expense
51
16
218.8
%
274
-81.4
%
Other operating expense
1,013
1,099
-7.8
%
828
22.3
%
Total noninterest expense
7,363
7,276
1.2
%
5,948
23.8
%
Net income before income taxes
5,174
5,129
0.9
%
4,327
19.6
%
Income tax expense
1,081
1,044
3.5
%
942
14.8
%
Net Income
$
4,093
$
4,085
0.2
%
$
3,385
20.9
%
Earnings per share - basic
$
0.30
$
0.30
-0.2
%
$
0.30
-1.2
%
Earnings per share - diluted
$
0.28
$
0.28
-0.1
%
$
0.27
1.4
%
Weighted-average common shares outstanding - basic
13,862,239
13,802,712
11,324,965
Weighted-average common shares outstanding - diluted
14,867,421
14,817,462
12,470,384
Reconciliation of Net Income (GAAP)
to Operating Earnings (Non-GAAP): GAAP net income
reported above
$
4,093
$
4,085
$
3,385
Add: Merger and acquisition expense above
51
16
274
Subtract: Gain on sales of securities available-for-sale
(3
)
- -
- -
Subtract: provision for income taxes associated with non-GAAP
adjustments
(11
)
(4
)
(24
)
Net Income, excluding above merger and acquisition charges
$
4,130
$
4,097
$
3,635
Earnings per share - basic (excluding merger and acquisition
charges)
$
0.30
$
0.30
$
0.32
Earnings per share - diluted (excluding merger and acquisition
charges)
$
0.28
$
0.28
$
0.29
Return on average assets (non-GAAP operating earnings)
1.11
%
1.13
%
1.27
%
Return on average equity (non-GAAP operating earnings)
9.54
%
9.81
%
13.13
%
Efficiency ratio (non-GAAP operating earnings)
57.26
%
56.24
%
53.40
%
FVCBankcorp, Inc. Summary Consolidated
Income Statements (In thousands, except per share data)
(Unaudited) For the Nine Months Ended
% Change From 9/30/2019 9/30/2018
Year Ago Net interest income
$
36,228
$
27,997
29.4
%
Provision for loan losses
1,255
990
26.8
%
Net interest income after provision for loan losses
34,973
27,007
29.5
%
Noninterest income: Fees on Loans
501
473
5.9
%
Service charges on deposit accounts
651
452
44.0
%
Gains on sale of securities available-for-sale
3
- -
100.0
%
BOLI income
414
329
25.8
%
Other fee income
387
241
60.6
%
Total noninterest income
1,956
1,495
30.8
%
Noninterest expense: Salaries and employee benefits
12,533
10,000
25.3
%
Occupancy and equipment expense
2,582
1,743
48.1
%
Data processing and network administration
1,196
886
35.0
%
State franchise taxes
1,272
888
43.2
%
Professional fees
634
434
46.1
%
Merger and acquisition expense
133
671
-80.2
%
Other operating expense
3,193
2,408
32.6
%
Total noninterest expense
21,543
17,030
26.5
%
Net income before income taxes
15,386
11,472
34.1
%
Income tax expense
3,282
2,013
63.0
%
Net Income
$
12,104
$
9,459
28.0
%
Earnings per share - basic
$
0.88
$
0.85
2.9
%
Earnings per share - diluted
$
0.82
$
0.78
5.3
%
Weighted-average common shares outstanding - basic
13,796,394
11,094,353
Weighted-average common shares outstanding - diluted
14,821,612
12,195,620
Reconciliation of Net Income (GAAP)
to Operating Earnings (Non-GAAP): GAAP net income
reported above
$
12,104
$
9,459
Add: Merger and acquisition expense above
133
671
Subtract: Gain on sales of securities available-for-sale
(3
)
- -
Subtract: provision for income taxes associated with non-GAAP
adjustments
(30
)
(107
)
Net Income, excluding above merger and acquisition charges
$
12,204
$
10,023
Earnings per share - basic (excluding merger and acquisition
charges)
$
0.88
$
0.90
Earnings per share - diluted (excluding merger and acquisition
charges)
$
0.82
$
0.82
Return on average assets (non-GAAP operating earnings)
1.14
%
1.22
%
Return on average equity (non-GAAP operating earnings)
9.73
%
12.81
%
Efficiency ratio (non-GAAP operating earnings)
56.07
%
55.47
%
FVCBankcorp, Inc. Average Statements of Condition
and Yields on Earning Assets and Interest-Bearing Liabilities
(Dollars in thousands) (Unaudited)
For the Three Months Ended 9/30/2019 6/30/2019
9/30/2018 Average Average Average
Average Average Average Balance
Yield Balance Yield Balance
Yield Interest-earning assets: Loans receivable, net
of fees (1) Commercial real estate
$
770,752
4.81
%
$
717,248
4.86
%
$
575,738
4.72
%
Commercial and industrial
129,174
5.86
%
135,335
6.07
%
110,241
5.81
%
Commercial construction
194,327
5.73
%
198,927
5.71
%
140,213
5.39
%
Consumer residential
122,958
4.98
%
129,605
5.25
%
106,922
4.72
%
Consumer nonresidential
24,149
7.34
%
26,818
7.70
%
26,878
6.50
%
Total loans
1,241,360
5.13
%
1,207,933
5.24
%
959,992
4.99
%
Investment securities (2)(3)
137,153
2.71
%
144,056
2.73
%
120,174
2.45
%
Interest-bearing deposits at other financial institutions
27,972
2.40
%
32,527
2.39
%
35,988
1.82
%
Total interest-earning assets
1,406,485
4.84
%
1,384,516
4.91
%
1,116,154
4.62
%
Non-interest earning assets: Cash and due from banks
10,221
7,597
2,386
Premises and equipment, net
2,073
2,152
1,416
Accrued interest and other assets
74,685
60,016
31,107
Allowance for loan losses
(10,034
)
(9,693
)
(8,421
)
Total Assets
$
1,483,430
$
1,444,588
$
1,142,642
Interest-bearing liabilities: Interest checking
$
324,658
1.46
%
$
301,132
1.28
%
$
251,299
1.10
%
Savings and money market
255,046
1.41
%
275,129
1.54
%
190,176
1.18
%
Time deposits
318,056
2.37
%
299,551
2.17
%
249,508
1.62
%
Wholesale deposits
67,376
2.45
%
88,064
2.52
%
65,354
1.84
%
Total interest-bearing deposits
965,136
1.82
%
963,876
1.74
%
756,337
1.36
%
Other borrowed funds
18,814
2.04
%
4,754
2.65
%
2,799
2.25
%
Subordinated notes, net of issuance costs
24,454
6.41
%
24,434
6.48
%
24,374
6.43
%
Total interest-bearing liabilities
1,008,404
1.93
%
993,064
1.87
%
783,510
1.52
%
Noninterest-bearing liabilities: Noninterest-bearing
deposits
278,354
264,719
245,742
Other liabilities
23,523
19,776
2,662
Stockholders’ equity
173,149
167,029
110,728
Total Liabilities and Stockholders' Equity
$
1,483,430
$
1,444,588
$
1,142,642
Net Interest Margin (1)
3.41
%
3.59
%
3.54
%
(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 Nine Months Ended 9/30/2019
9/30/2018 Average Average Average
Average Balance Yield Balance
Yield Interest-earning assets: Loans receivable, net
of fees (1) Commercial real estate
$
722,758
4.79
%
$
559,578
4.65
%
Commercial and industrial
133,083
6.19
%
103,395
5.55
%
Commercial construction
184,175
5.72
%
128,618
5.19
%
Consumer residential
128,794
5.17
%
108,056
4.52
%
Consumer nonresidential
27,316
7.56
%
28,543
6.37
%
Total loans
1,196,126
5.19
%
928,190
4.86
%
Investment securities (2)(3)
141,747
2.72
%
122,164
2.42
%
Interest-bearing deposits at other financial institutions
28,583
2.27
%
22,821
1.42
%
Total interest-earning assets
1,366,456
4.88
%
1,073,175
4.51
%
Non-interest earning assets: Cash and due from banks
7,891
2,422
Premises and equipment, net
2,172
1,347
Accrued interest and other assets
61,160
28,871
Allowance for loan losses
(9,597
)
(8,148
)
Total Assets
$
1,428,082
$
1,097,667
Interest-bearing liabilities: Interest checking
$
307,372
1.35
%
$
211,461
1.00
%
Savings and money market
255,437
1.48
%
188,560
1.06
%
Time deposits
308,500
2.17
%
252,130
1.50
%
Wholesale deposits
76,713
2.48
%
92,432
1.61
%
Total interest-bearing deposits
948,022
1.74
%
744,583
1.26
%
Other borrowed funds
10,991
2.31
%
5,897
1.91
%
Subordinated notes, net of issuance costs
24,434
6.48
%
24,354
6.51
%
Total interest-bearing liabilities
983,447
1.87
%
774,834
1.43
%
Noninterest-bearing liabilities: Noninterest-bearing
deposits
259,236
216,381
Other liabilities
18,202
2,105
Stockholders’ equity
167,197
104,347
Total Liabilities and Stockholders' Equity
$
1,428,082
$
1,097,667
Net Interest Margin (1)
3.55
%
3.48
%
(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/20191017005662/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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