Exhibit 99.1
PRESS RELEASE
For further information, contact:
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
FOR IMMEDIATE RELEASE — October 17, 2019
FVCBankcorp, Inc. Announces
Record Earnings for Third Quarter 2019
Fairfax, VA-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 Spetember 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)
| | 9/30/2019 | | 6/30/2019 | | % Change
Current
Quarter | | 12/31/2018 | | 9/30/2018 | | % Change
From
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 | |
| | 9/30/2019 | | 6/30/2019 | | % Change
Current
Quarter | | 9/30/2018 | | % Change
From
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 | |
| | 9/30/2019 | | 9/30/2018 | | % Change
From
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.
