FVCBankcorp, Inc. (NASDAQ:FVCB) (the “Company”) today reported
first quarter 2020 net income of $3.7 million, or $0.26 diluted
earnings per share, compared to $3.9 million, or $0.27 diluted
earnings per share, for the quarterly period ended March 31, 2019,
primarily as a result of increased provision for loan losses
recorded during the first quarter of 2020. Net revenues, which
includes net interest income plus noninterest income, for the three
months ended March 31, 2020 was $12.9 million, an increase of $402
thousand, from $12.5 million for the year ago quarter ended March
31, 2019.
Return on average assets was 0.96% and return on average equity
was 8.29% for the first quarter of 2020. For the comparable
quarterly March 31, 2019 period, return on average assets was 1.16%
and return on average equity was 9.74%.
First Quarter Selected Highlights
- Improved Credit Quality Metrics. During the first
quarter of 2020, watchlist credits decreased from $31.3 million at
December 31, 2019 to $13.6 million, a decrease of $17.7 million, or
56%, as a result of aggressive management of watchlist credits and
loan payoffs. Nonperforming loans and loans past due 90 days or
more and still accruing were 0.56% of total assets at March 31,
2020, compared to 0.70% at December 31, 2019.
- Continued Growth in Loan Portfolio. Total loans, net of
fees, totaled $1.28 billion at March 31, 2020, an increase of $11.6
million, from December 31, 2019. Loan growth for the first quarter
of 2020 was constrained by the aforementioned watchlist credit
payoffs. Year-over-year loan growth was $103.2 million, or 9%, from
March 31, 2019 to March 31, 2020.
- Strong Core Deposit Growth. Core deposits, which
excludes wholesale deposits, increased $33.8 million, to $1.22
billion at March 31, 2020, or 11% annualized, from December 31,
2019. Noninterest-bearing deposits represent 24% of the core
deposit base at March 31, 2020.
- Increased Net Interest Income and Margin. Net interest
income increased $447 thousand to $12.2 million for the first
quarter of 2020, compared to $11.8 million for the same 2019
period. Net interest margin was 3.37% for the quarter ended March
31, 2020, compared to 3.65% for the year ago quarter of 2019,
impacted by the decreases in the targeted fed funds rate of 225
basis points over the past 12 months. On a linked quarter basis,
net interest margin has increased from 3.28% for the fourth quarter
of 2019. Improvement in net interest margin from the linked quarter
was primarily a result of a decrease in the cost of funds by 12
basis points from the prior quarter.
- Increased Provision for Loan Losses. As a result of the
current economic conditions related to COVID-19, the Company
recorded a provision for loan losses of $1.1 million during the
first quarter of 2020. Given the uncertainty of the impact of the
COVID-19 pandemic to our customers at this stage of the crisis, the
Company will continue to monitor conditions and may increase the
provision expense during the balance of 2020 as conditions
warrant.
- Share Repurchase Program. During the quarter ended March
31, 2020, the Company repurchased and cancelled a total of 487,531
shares of common stock at an average price of $14.90. The Company
has suspended stock repurchases at this time.
- Well-Capitalized Bank. The capital ratios at the
Company’s subsidiary bank, FVCbank, remain well-capitalized at
March 31, 2020 with a Tier 1 Leverage Ratio of 12.06%; a Common
Equity Tier 1 Ratio of 12.75%; and a Total Risk-Based Capital Ratio
of 13.52%.
- Improved Efficiency Ratio. Efficiency ratio for the
three months ended March 31, 2020 was 55.9%, an improvement from
59.0% for the quarter ended December 31, 2019.
“We began 2020 well positioned for growth with strong loan and
deposit pipelines. We were able to execute on those expected
originations until the economy was disrupted by the global health
crisis. In mid-March, we began reaching out to our customers
assisting them with loan payment deferrals and continued these
efforts by participating in the Paycheck Protection Program (“PPP”)
launched by the U.S. Treasury and Small Business Administration. To
date, we have originated almost 400 PPP loans for approximately
$132 million. We continue to assist existing and new customers as
we navigate through these unprecedented times,” stated David W.
Pijor, Chairman and CEO.
COVID-19 Pandemic Impact to Loan Portfolio
The Company has evaluated its exposure to credit risks directly
related to the COVID-19 pandemic and has identified the following
subgroups of industry segments most impacted by the pandemic as of
March 31, 2020:
March 31, 2020
Industry Segments by Subgroup Number of
Outstanding Percent of Total (Dollars in
thousands) Loans Loan Balance Loan
Portfolio Retail Subgroup
39
$
84,801
6.59
%
Hotels
11
54,873
4.26
%
Churches
25
47,092
3.66
%
Other Commercial Real Estate
23
29,418
2.29
%
98
$
216,185
16.79
%
The Company is closely monitoring the effects of the pandemic on
its loan and deposit customers and is focused on assessing risks
within the loan portfolio and working with customers to minimize
losses. During its assessment of the allowance for loan losses, the
Company addressed the credit risks associated with these subgroups
of industry segments.
The Company has implemented loan payment deferral programs to
allow customers who were required to close or reduce business
operations to defer loan principal and interest payments for
generally up to 90 days. As of April 17, 2020, loan payment
deferrals on loans totaling $83.6 million have been recorded.
The Company believes that as a result of its focused and
deliberate underwriting discipline since its inception in addition
to the active dialogue the Company has with its borrowers, the
Company has the ability and necessary flexibility to assist its
customers through this pandemic.
Balance Sheet
Total assets increased to $1.60 billion at March 31, 2020
compared to $1.54 billion at December 31, 2019, an increase of
$65.5 million, or 4%. Loans receivable, net of deferred fees,
totaled $1.28 billion at March 31, 2020, compared to $1.27 billion
at December 31, 2019, an increase of $11.6 million, or 1%. During
the first quarter of 2020, loan originations totaled approximately
$94.3 million, of which $65.8 million funded during the quarter.
Loans held for sale totaled $9.6 million at March 31, 2020,
compared to $11.2 million at December 31, 2019.
Investment securities decreased $14.6 million to $127.0 million
at March 31, 2020, compared to $141.6 million at December 31, 2019.
During the three months ended March 31, 2020, the Company sold
$10.1 million in mortgage-backed securities available-for-sale,
recording gains of $97 thousand. These securities were sold as they
had larger premiums susceptible to prepayment risk, decreasing
future interest income.
Total deposits increased to $1.34 billion at March 31, 2020
compared to $1.29 billion at December 31, 2019, an increase of
$58.3 million, or 5%. Core deposits, which represent total deposits
less wholesale deposits, increased $33.8 million, or 3%, to $1.22
billion at March 31, 2020 compared to $1.19 billion at December 31,
2019. Wholesale deposits totaled $124.5 million, or 9% of total
deposits at March 31, 2020, an increase of $24.5 million from
December 31, 2019. Noninterest-bearing deposits decreased $18.4
million to $287.8 million at March 31, 2020 from $306.2 million at
December 31, 2019, and represented 21% of total deposits, or 24% of
core deposits, at March 31, 2020.
Income Statement
Net income for the three months ended March 31, 2020 was $3.7
million, compared to $3.9 million for the same period of 2019, and
$3.7 million for the quarter ended December 31, 2019.
Net interest income totaled $12.2 million, an increase of $447
thousand, for the quarter ended March 31, 2020, compared to the
year ago quarter, and increased by $375 thousand, or 3%, compared
to the fourth quarter of 2019, a result of decreased cost of funds.
The impact to interest income from the accretion of loan marks on
acquired loans was $163 thousand and $115 thousand for the three
months ended March 31, 2020 and 2019, respectively. In addition,
net interest income for the three months ended March 31, 2020
benefited from $181 thousand in prepayment penalties and payoff of
loans previously on nonaccrual, compared to $16 thousand in
prepayment penalties for the three months ended March 31, 2019.
The Company’s net interest margin decreased 28 basis points to
3.37% for the quarter ended March 31, 2020 compared to 3.65% for
the quarter ended March 31, 2019. On a linked quarter basis, net
interest margin increased 9 basis points from 3.28% for the three
months ended December 31, 2019.
For the three months ended March 31, 2020, the effective yield
on average earning assets decreased 24 basis points to 4.65%
compared to the first quarter of 2019, a result of the current low
interest rate environment. The cost of average interest-bearing
liabilities increased 4 basis points for the three months ended
March 31, 2020 compared to the same period of 2019. The cost of
interest-bearing liabilities decreased 12 basis points to 1.83% for
the first quarter of 2020, compared to 1.95% for the fourth quarter
of 2019. The cost of deposits, which includes noninterest-bearing
deposits, decreased 11 basis point to 1.30% for the first quarter
of 2020 as compared to 1.41% for the fourth quarter of 2019.
Noninterest income totaled $693 thousand and $738 thousand for
the quarters ended March 31, 2020 and 2019, respectively. Fee
income from loans was $396 thousand, an increase of $49 thousand,
for the quarter ended March 31, 2020 compared to 2019, primarily a
result of a slight increase in loan swap fee income. Service
charges on deposit accounts and other fee income totaled $368
thousand for the first quarter of 2020, an increase of 29%, or $82
thousand, from the year ago quarter. This increase in deposit fee
income resulted from the increase in core deposit relationships
year over year. Income from bank-owned life insurance increased
$178 thousand to $283 thousand for the three months ended March 31,
2020 compared to $105 thousand for the same period of 2019,
primarily as a result of purchasing additional policies during
2019.
During the three months ended March 31, 2020, the Company
recorded gains on sales of investment securities available-for-sale
totaling $97 thousand, compared to none for the same period of
2019. The loss on the loans held for sale portfolio recorded during
the three months ended March 31, 2020 was $451 thousand, compared
to none recorded for the comparable 2019 period. The Company
classified its consumer unsecured portfolio as held for sale during
the fourth quarter of 2019 and, as a result of current market
conditions, the market for these types of loans receded during the
first quarter.
Noninterest expense totaled $7.2 million for the quarter ended
March 31, 2020, compared to $6.9 million for the same three-month
period of 2019. On a linked quarter basis, noninterest expense
decreased $125 thousand from the three months ended December 31,
2019. During the first quarter of 2020, the Company made efforts to
maintain or reduce certain expenses where possible resulting in
only a 4% increase in noninterest expense year-over-year, and a 2%
decrease on a linked quarter basis.
The efficiency ratio for the quarter ended March 31, 2020 was
55.9%, an increase from 55.2% for the year ago quarter and a
decrease from 59.0% for the three months ended December 31,
2019.
The Company recorded a provision for income taxes of $896
thousand for the three months ended March 31, 2020, compared to
$1.2 million for the same period of 2019. The effective tax rates
for the three months ended March 31, 2020 and 2019 were 19.4% and
22.8%, respectively. The effective tax rate for the three months
ended March 31, 2020 is less than the Company’s combined federal
and state statutory rate of 22% primarily because of discrete tax
benefits recorded as a result of exercises of nonqualified stock
options during 2020.
Asset Quality
The Company recorded a provision for loan losses of $1.1 million
for the three months ended March 31, 2020, compared to $515
thousand for the year ago quarter. The increase in the provision
for loan losses for the three months ended March 31, 2020 is
primarily related to growth in the loan portfolio and increases in
qualitative factors related to the economic uncertainties caused by
the COVID-19 pandemic. The Company is not required to implement the
provisions of the current expected credit losses accounting
standard until January 1, 2023, and is continuing to account for
the allowance for loans losses under the incurred loss model.
The allowance for loan losses to total loans was 0.88% at March
31, 2020, compared to 0.81% for the period ended December 31, 2019.
The allowance for loan losses on the Company’s originated loan
portfolio, excluding the credit mark on acquired loans, was 0.95%
at March 31, 2020. Net charge-offs of $71 thousand were recorded
during the first quarter of 2020 which were primarily related to
the payoff of one of the Company’s nonaccrual loans during the
quarter.
Nonperforming loans and loans ninety days or more past due at
March 31, 2020 totaled $8.9 million, or 0.56% of total assets, of
which $786 thousand related to acquired loans net of their credit
marks. This compares to $10.7 million in nonperforming loans and
loans ninety days or more past due at December 31, 2019, or 0.70%
of total assets. All of the Company’s nonperforming loans are
secured and have specific reserves totaling $387 thousand,
representing the expected losses associated with those loans. The
Company has no troubled debt restructurings at March 31, 2020.
Nonperforming assets (including other real estate owned) to total
assets was 0.80% at March 31, 2020 compared to 0.95% for December
31, 2019.
Capital Management
On February 4, 2020, the Company’s Board of Directors approved
the adoption of a share repurchase program pursuant to which the
Company may purchase up to 1,112,165 shares of the Company’s issued
and outstanding shares of common stock, or approximately 8% of
outstanding shares as of December 31, 2019. For the three months
ended March 31, 2020, the Company repurchased and cancelled a total
of 487,531 shares of common stock at an average price of $14.90.
Due to the uncertainty related to the potential economic impact of
the COVID-19 pandemic, the Company has temporarily suspended stock
repurchases. The Company continues to be well-capitalized at March
31, 2020.
About FVCBankcorp, Inc.
FVCBankcorp, Inc. is the holding company for FVCbank, a
wholly-owned subsidiary that commenced operations in November 2007.
FVCbank is a $1.60 billion asset-sized Virginia-chartered community
bank serving the banking needs of commercial businesses, nonprofit
organizations, professional service entities, their owners and
employees located in the greater Baltimore and Washington D.C.,
metropolitan areas. 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, 2019 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 Quarters Ended
3/31/2020 12/31/2019 3/31/2019 Selected
Balances Total assets
$
1,602,611
$
1,537,295
$
1,419,763
Total investment securities
133,586
147,606
144,865
Loans held for sale
9,640
11,198
- -
Total loans, net of deferred fees
1,282,142
1,270,526
1,178,941
Allowance for loan losses
(11,226
)
(10,231
)
(9,512
)
Total deposits
1,344,044
1,285,722
1,212,695
Subordinated debt
24,507
24,487
24,427
Other borrowings
25,000
25,000
- -
Total stockholders’ equity
177,688
179,078
163,993
Summary Results of Operations Interest income
$
16,931
$
16,777
$
15,960
Interest expense
4,720
4,941
4,196
Net interest income
12,211
11,836
11,764
Provision for loan losses
1,066
465
515
Net interest income after provision for loan losses
11,145
11,371
11,249
Noninterest income - loan fees, service charges and other
764
485
633
Noninterest income - bank owned life insurance
283
249
105
Noninterest income - gain on sales of securities available-for-sale
97
- -
- -
Noninterest income - loss on loans held for sale
(451
)
(145
)
- -
Noninterest expense
7,209
7,334
6,904
Income before taxes
4,629
4,626
5,083
Income tax expense
896
902
1,157
Net income
3,733
3,724
3,926
Per Share Data Net income, basic
$
0.27
$
0.27
$
0.29
Net income, diluted
$
0.26
$
0.25
$
0.27
Book value
$
13.21
$
12.88
$
11.92
Tangible book value (4)
$
12.57
$
12.26
$
11.32
Shares outstanding
13,451,678
13,902,067
13,755,249
Selected Ratios Net interest margin (2)
3.37
%
3.28
%
3.65
%
Return on average assets (2)
0.96
%
0.98
%
1.16
%
Return on average equity (2)
8.29
%
8.39
%
9.74
%
Efficiency (1)
55.87
%
59.03
%
55.22
%
Loans, net of deferred fees to total deposits
95.39
%
98.82
%
97.22
%
Noninterest-bearing deposits to total deposits
21.41
%
23.82
%
20.92
%
Reconciliation of Net Income (GAAP) to Operating Earnings
(Non-GAAP) (3) Net income (from above)
$
3,733
$
3,724
$
3,926
Subtract: (Gains) on sales of securities available-for-sale
(97
)
- -
- -
Less: provision for income taxes associated with non-GAAP
adjustments
20
-
(15
)
Net income, as adjusted
$
3,656
$
3,724
$
3,911
Net income, diluted, on an operating basis
$
0.25
$
0.25
$
0.27
Return on average assets (non-GAAP operating earnings)
0.94
%
0.98
%
1.17
%
Return on average equity (non-GAAP operating earnings)
8.12
%
8.39
%
9.86
%
Efficiency ratio (non-GAAP operating earnings) (1)
56.29
%
58.35
%
54.69
%
Capital Ratios - Bank Tangible common equity (to tangible
assets)
10.61
%
11.15
%
11.03
%
Total capital (to risk weighted assets)
13.52
%
13.43
%
13.48
%
Common equity tier 1 capital (to risk weighted assets)
12.75
%
12.72
%
12.76
%
Tier 1 capital (to risk weighted assets)
12.75
%
12.72
%
12.76
%
Tier 1 leverage (to average assets)
12.06
%
12.15
%
12.56
%
Asset Quality Nonperforming loans and loans 90+ past due
$
8,896
$
10,725
$
3,791
Performing troubled debt restructurings (TDRs)
- -
- -
4,092
Other real estate owned
3,866
3,866
3,866
Nonperforming loans and loans 90+ past due to total assets (excl.
TDRs)
0.56
%
0.70
%
0.27
%
Nonperforming assets to total assets
0.80
%
0.95
%
0.54
%
Nonperforming assets (including TDRs) to total assets
0.80
%
0.95
%
0.83
%
Allowance for loan losses to loans
0.88
%
0.81
%
0.81
%
Allowance for loan losses to nonperforming loans
126.19
%
95.39
%
250.91
%
Net charge-offs
$
71
$
303
$
162
Net charge-offs to average loans (2)
0.02
%
0.10
%
0.06
%
Selected Average Balances Total assets
$
1,550,958
$
1,514,124
$
1,354,814
Total earning assets
1,458,308
1,430,397
1,307,278
Total loans, net of deferred fees
1,281,969
1,234,183
1,137,948
Total deposits
1,280,693
1,270,821
1,148,646
Other Data Noninterest-bearing deposits
$
287,801
$
306,235
$
253,723
Interest-bearing checking, savings and money market
581,005
525,138
546,067
Time deposits
350,712
354,362
297,469
Wholesale deposits
124,526
99,987
115,436
(1) Efficiency ratio is calculated as noninterest expense
divided by the sum of net interest income and noninterest income.
On a non-GAAP operating basis, the Company excludes gains (losses)
on sales of investment securities. (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.
(4) Non-GAAP Reconciliation For the
Quarters Ended (Dollars in thousands, except per share data)
3/31/2020 12/31/2019 3/31/2019 Total
stockholders’ equity
$
177,688
$
179,078
$
163,993
Less: goodwill and intangibles, net
(8,612
)
(8,689
)
(8,342
)
Tangible Common Equity
$
169,076
$
170,389
$
155,651
Book value per common share
$
13.21
$
12.88
$
11.92
Less: intangible book value per common share
(0.64
)
(0.62
)
(0.60
)
Tangible book value per common share
$
12.57
$
12.26
$
11.32
FVCBankcorp, Inc. Summary Consolidated Statements of
Condition (Dollars in thousands) (Unaudited)
% Change % Change Current
From 3/31/2020 12/31/2019 Quarter
3/31/2019 Year Ago Cash and due from banks
$
23,158
$
14,916
55.3
%
$
13,404
72.8
%
Interest-bearing deposits at other financial institutions
62,402
18,226
242.4
%
30,359
105.5
%
Investment securities
126,978
141,589
-10.3
%
139,474
-9.0
%
Restricted stock, at cost
6,608
6,017
9.8
%
5,391
22.6
%
Loans held for sale, at fair value
9,640
11,198
-13.9
%
- -
100.0
%
Loans, net of fees: Commercial real estate
839,091
819,802
2.4
%
693,439
21.0
%
Commercial and industrial
106,302
114,924
-7.5
%
137,869
-22.9
%
Commercial construction
220,798
214,949
2.7
%
187,760
17.6
%
Consumer residential
105,653
109,560
-3.6
%
132,638
-20.3
%
Consumer nonresidential
10,298
11,291
-8.8
%
27,235
-62.2
%
Total loans, net of fees
1,282,142
1,270,526
0.9
%
1,178,941
8.8
%
Allowance for loan losses
(11,226)
(10,231)
9.7
%
(9,512)
18.0
%
Loans, net
1,270,916
1,260,295
0.8
%
1,169,429
8.7
%
Premises and equipment, net
2,090
2,084
0.3
%
2,218
-5.8
%
Goodwill and intangibles, net
8,612
8,689
-0.9
%
8,342
3.2
%
Bank owned life insurance (BOLI)
37,352
37,069
0.8
%
16,511
126.2
%
Other real estate owned
3,866
3,866
0.0
%
3,866
0.0
%
Other assets
50,989
33,346
52.9
%
30,769
65.7
%
Total Assets
$
1,602,611
$
1,537,295
4.2
%
$
1,419,763
12.9
%
Deposits: Noninterest-bearing
$
287,801
$
306,235
-6.0
%
$
253,723
13.4
%
Interest-bearing checking
309,458
302,755
2.2
%
284,150
8.9
%
Savings and money market
271,547
222,383
22.1
%
261,917
3.7
%
Time deposits
350,712
354,362
-1.0
%
297,469
17.9
%
Wholesale deposits
124,526
99,987
24.5
%
115,436
7.9
%
Total deposits
1,344,044
1,285,722
4.5
%
1,212,695
10.8
%
Other borrowed funds
25,000
25,000
0.0
%
- -
100.0
%
Subordinated notes, net of issuance costs
24,507
24,487
0.1
%
24,427
0.3
%
Other liabilities
31,372
23,008
36.4
%
18,648
68.2
%
Stockholders’ equity
177,688
179,078
-0.8
%
163,993
8.4
%
Total Liabilities & Stockholders' Equity
$
1,602,611
$
1,537,295
4.2
%
$
1,419,763
12.9
%
FVCBankcorp, Inc. Summary Consolidated Income
Statements (In thousands, except per share data)
(Unaudited) For the Three Months Ended
% Change % Change Current From
3/31/2020 12/31/2019 Quarter 3/31/2019
Year Ago Net interest income
$
12,211
$
11,836
3.2
%
$
11,764
3.8
%
Provision for loan losses
1,066
465
129.2
%
515
107.0
%
Net interest income after provision for loan losses
11,145
11,371
-2.0
%
11,249
-0.9
%
Noninterest income: Fees on Loans
396
81
388.9
%
347
14.1
%
Service charges on deposit accounts
239
239
0.0
%
182
31.3
%
Gain on sale of securities available-for-sale
97
- -
100.0
%
- -
100.0
%
Loss on loans held for sale
(451)
(145)
211.0
%
- -
-100.0
%
BOLI income
283
249
13.7
%
105
169.5
%
Other fee income
129
165
-21.8
%
104
24.0
%
Total noninterest income
693
589
17.7
%
738
-6.1
%
Noninterest expense: Salaries and employee benefits
4,028
4,514
-10.8
%
3,938
2.3
%
Occupancy and equipment expense
855
818
4.5
%
827
3.4
%
Data processing and network administration
434
442
-1.8
%
439
-1.1
%
State franchise taxes
466
424
9.9
%
422
10.4
%
Professional fees
225
192
17.2
%
130
73.1
%
Merger and acquisition expense
- -
- -
0.0
%
67
-100.0
%
Other operating expense
1,201
944
27.2
%
1,081
11.1
%
Total noninterest expense
7,209
7,334
-1.7
%
6,904
4.4
%
Net income before income taxes
4,629
4,626
0.1
%
5,083
-8.9
%
Income tax expense
896
902
-0.7
%
1,157
-22.6
%
Net Income
$
3,733
$
3,724
0.2
%
$
3,926
-4.9
%
Earnings per share - basic
$
0.27
$
0.27
1.2
%
$
0.29
-5.1
%
Earnings per share - diluted
$
0.26
$
0.25
1.9
%
$
0.27
-3.7
%
Weighted-average common shares outstanding - basic
13,751,768
13,878,806
13,724,232
Weighted-average common shares outstanding - diluted
14,595,447
14,837,120
14,779,955
Reconciliation of Net Income (GAAP)
to Operating Earnings (Non-GAAP): GAAP net income
reported above
$
3,733
$
3,724
$
3,926
Add: Merger and acquisition expense above
- -
- -
67
Subtract: Gain on sales of securities available-for-sale
(97)
- -
- -
Subtract: provision for income taxes associated with non-GAAP
adjustments
20
-
(15)
Net Income, excluding above merger and acquisition charges
$
3,656
$
3,724
$
3,978
Earnings per share - basic (excluding Non-GAAP items)
$
0.27
$
0.27
$
0.29
Earnings per share - diluted (excluding Non-GAAP items)
$
0.25
$
0.25
$
0.27
Return on average assets (non-GAAP operating earnings)
0.94%
0.98%
1.17%
Return on average equity (non-GAAP operating earnings)
8.12%
8.39%
9.86%
Efficiency ratio (non-GAAP operating earnings)
56.29%
58.35%
54.69%
FVCBankcorp, Inc. Average Statements of Condition and
Yields on Earning Assets and Interest-Bearing Liabilities
(Dollars in thousands) (Unaudited)
For the Three Months Ended 3/31/2020
12/31/2019 3/31/2019 Average Average
Average Average Average Average
Balance Yield Balance Yield
Balance Yield Interest-earning assets: Loans
receivable, net of fees (1) Commercial real estate
$
832,545
4.77
%
$
765,237
4.80
%
$
679,268
4.72
%
Commercial and industrial
110,186
5.70
%
111,753
5.95
%
134,803
6.63
%
Commercial construction
220,104
5.09
%
217,318
5.38
%
158,880
5.73
%
Consumer residential
108,454
4.53
%
116,013
4.73
%
133,939
5.26
%
Consumer nonresidential
10,680
4.81
%
23,862
7.29
%
31,058
7.58
%
Total loans
1,281,969
4.88
%
1,234,183
5.05
%
1,137,948
5.23
%
Investment securities (2)(3)
143,634
2.70
%
145,730
2.70
%
144,109
2.72
%
Loans held for sale, at fair value
10,492
8.99
%
- -
0.0
%
- -
0.0
%
Interest-bearing deposits at other financial institutions
22,213
1.48
%
50,484
1.74
%
25,221
1.95
%
Total interest-earning assets
1,458,308
4.65
%
1,430,397
4.69
%
1,307,278
4.89
%
Non-interest earning assets: Cash and due from banks
13,431
10,727
5,807
Premises and equipment, net
1,941
2,022
2,294
Accrued interest and other assets
87,560
80,989
48,489
Allowance for loan losses
(10,282)
(10,011)
(9,054)
Total Assets
$
1,550,958
$
1,514,124
$
1,354,814
Interest-bearing liabilities: Interest checking
$
273,976
1.29
%
$
317,552
1.50
%
$
296,010
1.27
%
Savings and money market
227,497
1.12
%
241,912
1.35
%
235,926
1.46
%
Time deposits
353,809
2.35
%
339,054
2.44
%
307,780
1.93
%
Wholesale deposits
121,047
1.92
%
68,787
2.31
%
74,781
2.42
%
Total interest-bearing deposits
976,329
1.72
%
967,305
1.84
%
914,497
1.66
%
Other borrowed funds
39,141
1.53
%
15,926
1.77
%
9,302
2.68
%
Subordinated notes, net of issuance costs
24,494
6.49
%
24,474
6.40
%
24,414
6.56
%
Total interest-bearing liabilities
1,039,964
1.83
%
1,007,705
1.95
%
948,213
1.79
%
Noninterest-bearing liabilities: Noninterest-bearing
deposits
304,364
303,516
234,149
Other liabilities
26,476
25,323
11,170
Stockholders’ equity
180,154
177,580
161,282
Total Liabilities and Stockholders' Equity
$
1,550,958
$
1,514,124
$
1,354,814
Net Interest Margin
3.37
%
3.28
%
3.65
%
(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 21% . (3)
The average balances for investment securities includes restricted
stock.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200423005684/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
FVCBankcorp (NASDAQ:FVCB)
Historical Stock Chart
From Aug 2024 to Sep 2024
FVCBankcorp (NASDAQ:FVCB)
Historical Stock Chart
From Sep 2023 to Sep 2024