FAIRFAX, Va.--(BUSINESS WIRE)--October 21, 2025--
FVCBankcorp, Inc. (NASDAQ: FVCB) (the "Company") today reported net income of $5.6 million for the quarter ended September 30, 2025 compared to net income of $4.7 million for the quarter ended September 30, 2024, an increase of $910 thousand, or 19%. Diluted earnings per share were $0.31 for the quarter ended September 30, 2025 compared to $0.25 for the quarter ended September 30, 2024, an increase of 24%. Net income for the three months ended June 30, 2025 was $5.7 million, or $0.31 diluted earnings per share.
Third Quarter Selected Financial Highlights
-- Continued Growth in Core Operating Earnings. Core operating earnings
(non-GAAP) which is net income, excluding nonrecurring gains, increased
to $5.6 million for the three months ended September 30, 2025 compared to
$5.5 million for the three months ended June 30, 2025. Compared to the
year ago quarter, core operating earnings increased 19%, or $910 thousand,
from $4.7 million for the three months ended September 30, 2024 (which is
equal to net income for the periods as there was no nonrecurring gain).
Refer below to the "Reconciliation of Net Income (GAAP) to Core Operating
Earnings (Non-GAAP)" for further information.
-- Net Interest Margin Up 10% and Net Interest Income Improved 13%,
Compared to the Year Ago Quarter. For the quarter ended September 30,
2025, net interest margin improved to 2.91% from 2.90% for the quarter
ended June 30, 2025, the seventh consecutive quarter of margin
improvement, and increased 27 basis points, or 10%, compared to 2.64% for
the third quarter of 2024. Net interest income increased $1.8 million, or
13%, to $16.0 million for the third quarter of 2025, compared to $14.2
million for the year ago quarter ended September 30, 2024, and increased
$274 thousand compared to the linked quarter ended June 30, 2025.
-- Annualized Core Deposit Growth Over 10%. Core deposits, which exclude
wholesale deposits, increased $122.2 million, or 10% annualized, to $1.74
billion at September 30, 2025 compared to $1.62 billion at December 31,
2024. For the quarter, total deposits increased $74.4 million, or 4%,
when compared to the linked quarter ended June 30, 2025.
-- Sustained Strong Credit Quality. Loans past due 30 days or more totaled
$880 thousand at September 30, 2025, a decrease of $1.9 million, or 68%,
from $2.8 million at June 30, 2025. Past due loans at September 30, 2025
were comprised of two consumer real estate secured loans, one of which
totaling $346 thousand paid off in October. Nonperforming loans at
September 30, 2025 decreased to $11.1 million, or 14%, from $12.9 million
at December 31, 2024. Nonperforming loans to total assets decreased to
0.48% at September 30, 2025 from 0.58% at December 31, 2024.
-- Sound, Well Capitalized Balance Sheet. All of FVCbank's (the "Bank")
regulatory capital components and ratios were in excess of thresholds
required to be considered "well capitalized", with total risk-based
capital to risk-weighted assets of 15.77% at September 30, 2025, compared
to 14.73% at December 31, 2024. The tangible common equity ("TCE") to
tangible assets ("TA") ratio for the Bank increased to 11.04% at
September 30, 2025, from 10.87% at December 31, 2024. The Bank's
investment securities are classified as available-for-sale, and therefore
the unrealized losses on these securities are fully reflected in the
TCE/TA ratio.
-- Quarterly Cash Dividend. On October 16, 2025, the Company declared a
quarterly cash dividend $0.06 for each share of its common stock
outstanding. The dividend is payable on November 17, 2025 to shareholders
of record on October 27, 2025. Based on the current number of shares
outstanding, the aggregate payment will be approximately $1.1 million.
For the nine months ended September 30, 2025, the Company reported net income of $16.4 million, or $0.90 diluted earnings per share, compared to $10.2 million, or $0.55 diluted earnings per share, for the nine months ended September 30, 2024, an increase of $6.2 million, or 61%. During the second quarter of 2025, the Company unwound $15 million of its pay-fixed/receive floating interest rate swaps and the funding associated with that hedge, resulting in a gain of $154 thousand (which was recorded in non-interest income). During 2024, the Company surrendered $48.0 million in bank-owned life insurance ("BOLI"), which resulted in a nonrecurring increase of $2.4 million to the tax provisioning related to the loss of the tax favored status of prior appreciation. Core operating earnings (non-GAAP), which excludes these nonrecurring items, for the nine months ended September 30, 2025 and 2024 were $16.3 million and $12.6 million, respectively, an increase of $3.7 million, or 30%.
Compared to the linked quarter, pre-tax pre-provision operating earnings (non-GAAP) increased 6%, or $409 thousand, to $7.6 million for the quarter ended September 30, 2025 compared to $7.2 million for the quarter ended June 30, 2025. Compared to the year ago quarter, pre-tax pre-provision operating earnings increased 30%, or $1.8 million, from $5.8 million for the three months ended September 30, 2024. Refer below to the "Reconciliation of Net Income (GAAP) to Pre-Tax Pre-Provision Operating Income (Non-GAAP)" for further information.
The Company considers core operating earnings and pre-tax pre-provision operating earnings useful comparative financial measures of the Company's operating performance over multiple periods. Core operating earnings and pre-tax pre-provision operating earnings are determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"). A reconciliation of non-GAAP financial measures to their most comparable financial measure in accordance with GAAP can be found in the tables below.
Management Comments
David W. Pijor, Esq., Chairman and Chief Executive Officer of the Company, said:
"We continue our trajectory of improved earnings metrics as we report another quarter with annualized return on average assets of 1.00% for the quarter ended September 30, 2025, and our seventh consecutive quarter of core earnings growth. Our success in growing our customer base have resulted in core deposit growth of over $122 million, or 8%, from December 31, 2024, which will support our anticipated loan growth during the fourth quarter. We are mindful of the current economic environment as a result of the federal government shutdown, and we will continue to support our customers and communities with disciplined loan growth that meets our risk-adjusted return requirements. Additionally, in October, the Board approved a quarterly cash dividend of $0.06 per common share, reflecting our continued commitment to enhance shareholder value."
Patricia A. Ferrick, President of the Company, said:
"Our continued emphasis on technology solutions has contributed to an improved efficiency ratio as we thoughtfully manage operating expenses and improve noninterest income. Core deposit growth has been an area of focus as we continue our relationship banking strategy. We anticipate strong loan originations in the fourth quarter and continued positive margin impact from repricing loans, all funded by liquidity generated from core deposit growth."
Statement of Condition
Total assets were $2.32 billion at September 30, 2025 and $2.20 billion at December 31, 2024, an increase of $120.1 million, or 5%. On a linked quarter basis, total assets increased $81.8 million, or 4%, from $2.24 billion at June 30, 2025.
Loans receivable, net of deferred fees, were $1.86 billion at September 30, 2025, $1.87 billion at December 31, 2024, and $1.87 billion at September 30, 2024. During the third quarter of 2025, the Company approved over $65 million in new loan originations that were in the queue to close. As of the date of this release, $50 million of these new loans, which have a weighted average rate of 9.74%, have closed and funded during October. For the third quarter of 2025, loan originations totaled $87.3 million with a weighted average rate of 7.97%. Loan renewals totaled $30.6 million and had a weighted average rate of 7.67%. Loans that paid off during the third quarter of 2025 totaled $84.0 million and had a weighted average rate of 6.48%, and were primarily comprised of commercial real estate and construction loans. The Company continues its disciplined relationship banking approach to allow lower yielding commercial real estate loans to mature as scheduled and diversify its portfolio mix. At September 30, 2025, the Company's warehouse lending facility decreased slightly by $2.2 million to end at $50.3 million, with a weighted average yield of 6.31% for the quarter ended September 30, 2025.
Investment securities were $157.2 million at September 30, 2025, $156.7 million at December 31, 2024 and $165.3 million at September 30, 2024. For the nine months ended September 30, 2025, the increase in investment securities was primarily due to a decrease in the portfolio's unrealized losses totaling $8.5 million and security purchases totaling $2.9 million, offset by principal repayments totaling $10.9 million.
Total deposits were $1.98 billion at September 30, 2025, $1.87 billion at December 31, 2024, and $1.96 billion at September 30, 2024. Core deposits, which exclude wholesale deposits, increased $122.2 million, or 8%, for the nine months ended September 30, 2025. On a linked quarter basis, total deposits increased $74.4 million, or 4%. Noninterest-bearing deposits increased $18.2 million, or 5%, for the quarter ended September 30, 2025. At September 30, 2025 and December 31, 2024, reciprocal deposits through the IntraFi Network, which were mostly comprised of interest checking and savings accounts, totaled $281.7 million and $269.7 million, respectively, and were considered part of the Company's core deposit base. Time deposits increased $25.7 million to $273.8 million during the nine months ended September 30, 2025. The Company continues to build core deposits at lower interest rates.
At September 30, 2025, wholesale funding totaled $284.9 million, a decrease of $15.0 million, or 5%, from December 31, 2024. Wholesale funding at September 30, 2025 included wholesale deposits totaling $234.9 million and other borrowed funds totaling $50.0 million. As a result of core deposit growth during 2025, the Company unwound $15 million of its pay-fixed/receive floating interest rate swaps and the funding associated with that hedge, resulting in a gain of $154 thousand (which was recorded in non-interest income) during the second quarter of 2025.
Shareholders' equity at September 30, 2025 was $249.8 million, an increase of $14.5 million, or 6%, from December 31, 2024. Earnings for the nine months ended September 30, 2025 contributed $16.4 million to the increase in shareholders' equity. During the second quarter of 2025, the Company repurchased 415,000 shares of its common stock at a total cost of $4.6 million, decreasing shareholders' equity. Accumulated other comprehensive loss decreased $2.6 million for the nine months ended September 30, 2025, and was primarily related to an increase in the fair value of the Company's available-for-sale investment securities portfolio, net of tax, at September 30, 2025.
Tangible book value per share (a non-GAAP financial measure which is defined in the tables below) at September 30, 2025 and December 31, 2024 was $13.41 and $12.52, respectively. Tangible book value per share, excluding accumulated other comprehensive loss (a non-GAAP financial measure which is defined in the tables below), at September 30, 2025 and December 31, 2024 was $14.57 and $13.80, respectively.
The Bank was well-capitalized at September 30, 2025, with total risk-based capital ratio of 15.77%, common equity tier 1 risk-based capital ratio of 14.78%, and tier 1 leverage ratio of 12.13%.
Asset Quality
For the three and nine months ended September 30, 2025, the Company recorded a provision for credit losses totaling $375 thousand and $680 thousand, respectively. For the three and nine months ended September 30, 2024, the Company released reserves totaling $200 thousand and recorded a provision for credit losses of $6 thousand, respectively. At September 30, 2025 and December 31, 2024, the allowance for credit losses ("ACL") was $17.9 million and $18.1 million, respectively. The ACL to total loans, net of fees, was 0.97% at each of September 30, 2025 and December 31, 2024. The Company generally does not record reserves for the warehouse lending facility it provides to Atlantic Coast Mortgage, LLC ("ACM"). Excluding the warehouse lending facility, the ACL to total loans, net of fees, was 0.99% at September 30, 2025. The reserve for unfunded commitments and the ACL on loans combined at September 30, 2025 was 0.99% of total loans, net of fees. The Company recorded net charge-offs of $498 thousand, or 0.11% annualized to average loans, for the three months ended September 30, 2025. Net charge-offs for the quarter ended September 30, 2025 were primarily comprised of one unsecured small business loan, and not indicative of a systemic issue with the Company's loan portfolio credit quality. For the nine months ended September 30, 2025, net charge-offs totaled $876 thousand, or 0.06% annualized to average loans.
Nonperforming loans at September 30, 2025 totaled $11.1 million, or 0.48% of total assets, compared to $12.8 million, or 0.58% of total assets, at December 31, 2024. The decrease in nonperforming loans at September 30, 2025 was due to nonaccrual loan payoffs totaling $902 thousand and a decrease in loans past due over 90 days of $738 thousand as of September 30, 2025. Total watchlist loans increased to $15.1 million, or 4%, from $14.5 million at December 31, 2024. The Company had no other real estate owned at September 30, 2025 and December 31, 2024.
At September 30, 2025, commercial real estate loans totaled $994.6 million, or 54% of total loans, net of fees, and construction loans totaled $170.3 million, or 9% of total loans, net of fees. Included in commercial real estate loans are loans secured by office properties totaling $105.5 million, or 6% of total loans, which are primarily located in the Virginia and Maryland suburbs of the Company's market area, with $1.1 million, or 0.06% of total loans, located in Washington, D.C. Loans secured by retail properties totaled $232.4 million, or 13% of total loans, at September 30, 2025, with $10.5 million, or less than 1% of total loans, located in Washington, D.C. Loans secured by multi-family properties totaled $184.7 million, or 10% of total loans, at September 30, 2025, with $98.3 million, or 5% of total loans, located in Washington, D.C. The commercial real estate portfolio, including construction loans, is diversified by asset type and geographic concentration. Non-owner occupied commercial real estate loans were $781.0 million at September 30, 2025, a decrease of $69.1 million, or 8%, from $850.1 million at December 31, 2024.
The Company manages the portfolio in a disciplined manner, and has comprehensive policies to monitor, measure, and mitigate its loan concentrations within its commercial real estate portfolio segment, including rigorous credit approval, monitoring and administrative practices. The following table provides further stratification of these and additional classes of real estate loans at September 30, 2025 (dollars in thousands).
Owner Occupied Commercial Real Estate (2) Non-Owner Occupied Commercial Real Estate (2) Construction
------------------------------------------------------------- ---------------------------------------------- --------------------- ---------- -----
Number Number Number
Average of Average of Top 3 of Total Bank % of
Loan-to-Value Total Bank Owned Loan-to-Value Total Bank Owned Market Total Bank Owned Owned Total
Asset Class (1) Loans Principal (1) Loans Principal Areas Loans Principal Principal Loans
------------------------- ------------- ------ ----------- ------------- ------ ---------- ----------- ------ ------------- ---------- -----
Counties of
Fairfax and
Loudoun, VA
and
Montgomery
Office, Class A 68% 6 $ 7,840 17% 1 $ 2,916 County, MD -- $ -- $ 10,756
-----------
Office, Class B 50% 24 9,018 46% 23 45,383 -- -- 54,401
-----------
Office, Class C 47% 9 5,122 31% 7 7,635 2 911 13,668
Office, Medical 34% 7 998 40% 4 13,652 1 12,050 26,700
------ ---------- ------ --------- ------ ------------ ---------
Subtotal 46 $ 22,978 35 $ 69,586 3 $ 12,961 $ 105,525 6%
------------------------- ------------- ------ ---------- ------------- ------ --------- ----------- ------ ------------ --------- -----
Counties of
Prince
George's
and
Montgomery,
Retail- MD and
Neighborhood/Community Fairfax
Shop -- $ -- 45% 32 $ 92,622 County, VA -- $ -- $ 92,622
-----------
Retail- Restaurant 48% 4 4,351 42% 14 24,137 -- -- 28,488
-----------
Retail- Single Tenant 55% 5 1,847 41% 14 26,754 -- -- 28,601
Retail- Anchored,Other -- -- 52% 11 32,944 -- -- 32,944
Retail- Grocery-anchored -- -- 40% 8 49,712 -- -- 49,712
------ ---------- ------ --------- ------ ------------ ---------
Subtotal 9 $ 6,198 79 $ 226,169 0 $ -- $ 232,367 13%
------------------------- ------------- ------ ---------- ------------- ------ --------- ----------- ------ ------------ --------- -----
Washington,
D.C.,
Baltimore
City, MD
and
Richmond
Multi-family, Class A -- $ -- 30% 2 $ 1,428 City, VA 2 $ 33,087 $ 34,515
-----------
Multi-family, Class B -- -- 61% 18 63,207 1 3,952 67,159
-----------
Multi-family, Class C -- -- 54% 57 70,070 1 987 71,057
Multi-Family-Affordable
Housing -- -- 43% 5 11,921 -- -- 11,921
------ ---------- ------ --------- ------ ------------ ---------
Subtotal -- $ -- 82 $ 146,626 4 $ 38,026 $ 184,652 10%
------------------------- ------------- ------ ---------- ------------- ------ --------- ----------- ------ ------------ --------- -----
Counties of
Prince
William and
Fairfax, VA
and Howard
Industrial 47% 36 $ 99,493 52% 31 $ 112,169 County, MD -- $ -- $ 211,662
-----------
Warehouse 48% 12 14,595 27% 7 8,980 -- -- 23,575
-----------
Flex 45% 10 9,523 52% 14 55,730 3 8,015 73,268
------ ---------- ------ --------- ------ ------------ ---------
Subtotal 58 $ 123,611 52 $ 176,879 3 $ 8,015 $ 308,505 17%
------------------------- ------------- ------ ---------- ------------- ------ --------- ----------- ------ ------------ --------- -----
Hotels $ -- 39% 9 $ 53,778 1 $ 7,679 $ 61,457 3%
Mixed Use 44% 8 $ 6,833 59% 29 $ 48,833 -- $ -- $ 55,666 3%
Land $ -- 1% 2 $ 625 19 $ 37,141 $ 37,766 2%
1-4 Family construction $ -- $ -- 14 $ 47,852 $ 47,852 2%
Other (including net deferred fees) $ 53,952 $ 58,484 $ 18,578 $ 131,014 7%
---------------------------------------- ------ ---------- ------------- ------ --------- ----------- ------ ------------ --------- -----
Total commercial real estate and construction
loans, net of fees, at September 30, 2025 $ 213,572 $ 780,980 $ 170,252 $1,164,804 63%
========== ========= ============ =========
At December 31, 2024 $ 188,182 $ 850,125 $ 162,367 $1,200,674 64%
========== ========= ============ =========
(1) Loan-to-value is determined at origination date against current bank-owned principal.
(2) Minimum debt service coverage policy is 1.30x for owner occupied and 1.25x for non-owner occupied at origination.
The loans shown in the above table exhibit strong credit quality, with one nonaccrual loan at September 30, 2025 totaling $10.1 million. During its assessment of the ACL, the Company addressed the credit risks associated with these portfolio segments and believes that as a result of its conservative underwriting discipline at loan origination and its ongoing loan monitoring procedures, the Company has appropriately reserved for possible credit concerns in the event of a downturn in economic activity.
Minority Investment in Mortgage Banking Operation
For the three and nine months ended September 30, 2025, the Company recorded income of $508 thousand and $1.0 million, respectively, compared to income of $278 thousand and $426 thousand, respectively, for the three and nine months ended September 30, 2024, related to its investment in ACM. The increase in earnings at ACM is a direct result of continued success in executing their strategic growth and geographic diversification initiatives, resulting in a 14% increase in loan originations for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
The Company's investment in ACM is reflected as a nonconsolidated minority investment, and as such, the Company's income generated from the investment is included in non-interest income.
Income Statement
The Company recorded net income of $5.6 million for the three months ended September 30, 2025 compared to net income of $4.7 million for the three months ended September 30, 2024, an increase of $910 thousand, or 19%. Compared to the linked quarter, net income for the three months ended September 30, 2025 decreased slightly by $88 thousand, or 2%, from $5.7 million for the three months ended June 30, 2025. The decrease in net income on a linked quarter basis is a result of increased provision for credit losses for the three months ended September 30, 2025 and the gain on termination of derivative instruments recorded during the second quarter of 2025. Excluding nonrecurring gains, earnings increased to $5.6 million for the three months ended September 30, 2025 compared to $5.5 million for the three months ended June 30, 2025.
Net interest income increased $1.8 million, or 13%, to $16.0 million for the quarter ended September 30, 2025, compared to $14.2 million for the same period of 2024, and increased $274 thousand, or 2%, compared to the linked quarter ended June 30, 2025. The increase in net interest income for the third quarter of 2025 compared to the year ago quarter was primarily due to a decrease in deposit interest expense as deposits continue to reprice to lower interest rates. On a linked quarter basis, net interest income increased as a result of an increase in earnings assets, primarily interest-bearing deposits at other financial institutions. This available liquidity is associated with the Company's deposit growth.
The Company's net interest margin increased 27 basis points to 2.91% for the quarter ended September 30, 2025 compared to 2.64% for the quarter ended September 30, 2024, and increased from 2.90% for the linked quarter ended June 30, 2025. The increase in net interest margin is a result of improved yields on earning assets, primarily from the loan portfolio, in addition to continued improvement in the cost of funding sources. Cost of funds decreased to 2.78% for the quarter ended September 30, 2025, from 2.79% for the quarter ended June 30, 2025, and from 3.09% for the year ago quarter ended September 30, 2024. While excess liquidity associated with the Company's strong deposit growth tempered expansion in net interest margin for the third quarter of 2025, this liquidity will be used to fund loan growth early during the fourth quarter.
Compared to the year ago quarter, interest income increased $594 thousand, or 2%, to $29.8 million, for the third quarter of 2025, and increased $397 thousand, or 1%, compared to the linked quarter ended June 30, 2025. Loan interest income decreased $397 thousand, or 1%, to $27.0 million for the three months ended September 30, 2025, compared to $27.4 million for the three months ended September 30, 2024, primarily as a result of a decrease in average loans totaling $49.6 million, as the Company continues to reduce low yielding loans as they mature. During the third quarter of 2025, while the Company originated and funded over $87 million in new loans, approximately $84 million in existing loans paid off. Additionally, over $65 million in anticipated loan fundings were approved but had not closed as of September 30, 2025. As of the date of this release, $50 million of these commitments were closed and funded. Loan yields increased 7 basis points to 5.90% for the three months ended September 30, 2025 compared to 5.83% for the same period of 2024, and increased 10 basis points from 5.80% for the three months ended June 30, 2025. The yield on earning assets remained unchanged at 5.46% for the three months ended September 30, 2025 when compared to the same period of 2024, but increased 7 basis points compared to the linked quarter ended June 30, 2025, a result of loans repricing upwards as compared to the prior quarter.
The Company anticipates continued increase in loan yields due to scheduled loan repricings. Within 12 months of September 30, 2025, $86.8 million in fixed rate commercial loans with a weighted average rate of 4.74% and $8.0 million in variable rate commercial loans with a weighted average rate of 3.83% are expected to reprice. Within the following 24-36 months of September 30, 2025, $305.0 million in fixed rate commercial loans with a weighted average rate of 5.37% and an additional $133.3 million in variable rate commercial loans with a weighted average rate of 5.07% are scheduled to reprice. In the near-term, the Company's efforts to attain appropriate yields on new originations and the repricing of the commercial loan portfolio are expected to provide continued improvement in loan yields.
Interest expense decreased $1.2 million, or 8%, to $13.8 million, for the quarter ended September 30, 2025, compared to $15.0 million for the quarter ended September 30, 2024, which is primarily attributable to the decrease in deposit costs, all while growing core deposits 8% since year end. Interest expense on deposits decreased $1.1 million to $13.1 million for the three months ended September 30, 2025, compared to $14.2 million for the three months ended September 30, 2024, as average interest-bearing total deposits increased $39.2 million for the three months ended September 30, 2025 when compared to the year ago quarter. On a linked quarter basis, interest expense increased $123 thousand, or 1%, compared to the quarter ended June 30, 2025, primarily due to the strong deposit growth during the third quarter. The cost of deposits (which includes noninterest-bearing deposits) for the third quarter ended September 30, 2025 was 2.73%, a decrease of 31 basis points from the year ago quarter ended September 30, 2024, and a decrease of 1 basis point compared to the linked quarter ended June 30, 2025, demonstrating the Company's ability to grow its customer base while reducing deposit costs.
Net interest income for the nine months ended September 30, 2025 and 2024 was $46.8 million and $40.7 million, respectively, an increase of $6.2 million, or 15%, year-over-year. Interest income increased $3.8 million, or 4%, to $87.8 million for the nine months ended September 30, 2025 compared to $84.0 million for the comparable 2024 period. Interest expense totaled $41.0 million for the nine months ended September 30, 2025, a decrease of $2.4 million, or 6%, compared to $43.4 million for the nine months ended September 30, 2024. The Company's net interest margin for the nine months ended September 30, 2025 was 2.88% compared to 2.57% for the year-ago nine month period of 2024, an increase of 31 basis points, or 12%.
Noninterest income for each of the three months ended September 30, 2025 and June 30, 2025 totaled $1.0 million. Noninterest income for the three months ended June 30, 2025 included a nonrecurring gain totaling $154 thousand from the termination of derivative contracts. Noninterest income for the three months ended September 30, 2025 increased $218 thousand, or 27%, compared to $815 thousand for the three months ended September 30, 2024.
Fee income from loans was $35 thousand for the quarter ended September 30, 2025, compared to $54 thousand for the third quarter of 2024. Service charges on deposit accounts totaled $321 thousand for the third quarter of 2025, compared to $301 thousand for the year ago quarter, and $282 thousand for the linked quarter ended June 30, 2025. Income from BOLI increased to $73 thousand for the three months ended September 30, 2025, compared to $70 thousand for the same period of 2024. Income from the minority interest in ACM for the quarter ended September 30, 2025 was $508 thousand, an increase of $230 thousand from the year ago quarter ended September 30, 2024, and increased $157 thousand compared to the linked quarter ended June 30, 2025.
For the nine months ended September 30, 2025, the Company recorded noninterest income totaling $2.7 million, compared to $2.1 million for the nine months ended September 30, 2024, an increase of $630 thousand, or 30%. Fee income from loans was $145 thousand for the nine months ended September 30, 2025, compared to $141 thousand for the same period of 2024. Service charges on deposit accounts totaled $873 thousand for the nine months ended September 30, 2025, compared to $841 thousand for the nine months ended September 30, 2024. Income from BOLI decreased to $215 thousand for the nine months ended September 30, 2025 compared to $326 thousand for the same period of 2024, a direct result of the BOLI surrendered during 2024. Income from its minority interest in ACM was $1.0 million for the nine months ended September 30, 2025, compared to $401 thousand for the same period of 2024. Lastly, the Company recorded a gain from the termination of derivative instruments totaling $154 thousand during the second quarter of 2025. No comparable gain was recorded during 2024.
Noninterest expense totaled $9.5 million for the quarter ended September 30, 2025, an increase of $276 thousand, or 3%, compared to $9.2 million for the year ago quarter ended September 30, 2024. On a linked quarter basis, noninterest expense increased $44 thousand, or approximately half a percent, from $9.4 million for the three months ended June 30, 2025. Compared to the year ago quarter, salaries and benefits expense increased $262 thousand, or 5%, for the three months ended September 30, 2025, and increased $79 thousand, or 2%, compared to the linked quarter ended June 30, 2025. The increase in salaries and benefits expense for the third quarter of 2025 as compared to both the year ago and linked quarters is primarily a result of an increase in incentive accruals for the third quarter of 2025 along with the filling of open positions that were vacant in the previous periods. Full-time equivalent employees have increased from 111 at September 30, 2024, to 112 at December 31, 2024 to 118 at September 30, 2025.
Internet banking and software expense increased $184 thousand to $890 thousand for the third quarter of 2025 compared to the year ago quarter ended September 30, 2024, primarily as a result of the implementation of enhanced customer software, including comprehensive online banking solutions. Data processing and network administration expense decreased $168 thousand to $559 thousand for the three months ended September 30, 2025 compared to the same period of 2024, primarily as a result of contract renewals with certain service providers for the Bank. The Company continues to identify and assess opportunities to reduce operating expenses.
For the nine months ended September 30, 2025 and 2024, noninterest expense was $28.0 million and $26.8 million, respectively, an increase of $1.2 million, or less than 5%, primarily as a result of the aforementioned increases in salaries and benefits expenses and internet banking and software expense.
The efficiency ratio for the quarters ended September 30, 2025, June 30, 2025, and September 30, 2024, was 55.5%, 56.2%, and 61.2%, respectively. For the nine months ended September 30, 2025 and 2024, the efficiency ratio was 56.6% and 62.7%, respectively. A reconciliation of the aforementioned efficiency ratios, a non-GAAP financial measure, can be found in the tables below.
The Company recorded a provision for income taxes of $1.6 million and $1.4 million for the three months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025 and 2024, the provision for income taxes was $4.4 million and $5.8 million, respectively. The 2024 period included an additional $2.4 million which was associated with the Company's surrender of BOLI policies in the first quarter of 2024.
About FVCBankcorp, Inc.
FVCBankcorp, Inc. is the holding company for FVCbank, a wholly-owned subsidiary that commenced operations in November 2007. FVCbank is a $2.32 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. FVCbank is based in Fairfax, Virginia, and has 8 full-service offices in Arlington, Fairfax, Manassas, Reston and Springfield, Virginia, Washington, D.C., and Baltimore, and Bethesda, Maryland.
For more information about the Company, please visit the Investor Relations page of FVCBankcorp, Inc.'s website, www.fvcbank.com.
Cautionary Note About Forward-Looking Statements
This press release may contain statements relating to future events or future results of the Company that are considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words or phases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. The following factors, among others, could cause our financial performance to differ materially from that expressed in such forward-looking statements: general business and economic conditions, including higher inflation and its impacts, nationally or in the markets that we serve could adversely affect, among other things, real estate valuations, unemployment levels, the ability of businesses to remain viable, consumer and business confidence, and consumer or business spending, which could lead to decreases in demand for loans, deposits, and other financial services that we provide and increases in loan delinquencies and defaults; the concentration of our business in and around the Washington, D.C. metropolitan area and the effects of changes in the economic, political, and environmental conditions on this market, including the ongoing shutdown of the U.S. government and potential reductions in spending by the U.S. government and related reductions in the federal workforce; the impact of the interest rate environment on our business, financial condition and results of operation, and its impact on the composition and costs of deposits, loan demand, and the values and liquidity of loan collateral, securities, and interest sensitive assets and liabilities; changes in our liquidity requirements could be adversely affected by changes in our assets and liabilities; changes in the assumptions underlying the establishment of reserves for possible credit losses and the possibility that future credit losses may be higher than currently expected; the management of risks inherent in our real estate loan portfolio, and the risk of a prolonged downturn in the real estate market, which could impair the value of loan collateral and the ability to sell collateral upon any foreclosure; changes in market conditions, specifically declines in the commercial and residential real estate market, volatility and disruption of the capital and credit markets, and soundness of other financial institutions that we do business with; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetary fluctuations; our investment securities portfolio is subject to credit risk, market risk, and liquidity risk as well as changes in the estimates used to value the securities in the portfolio; declines in our common stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause us to record a noncash impairment charge to earnings in future periods; potential exposure to fraud, negligence, computer theft and cyber-crime, and our ability to maintain the security of our data processing and information technology systems; the impact of changes in bank regulatory conditions, including laws, regulations and policies concerning capital requirements, deposit insurance premiums, taxes, securities, and the application thereof by regulatory bodies; the effect of changes in accounting policies and practices, as may be adopted from time to time by bank regulatory agencies, the Securities and Exchange Commission (the "SEC"), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setting bodies; competitive pressures among financial services companies, including the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; the effect of acquisitions and partnerships we may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions; our involvement, from time to time, in legal proceedings and examination and remedial actions by regulators; geopolitical conditions, including trade restrictions and tariffs, and acts or threats of terrorism, or actions taken by the United States or other governments in response to trade restrictions and tariffs, and acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; and the occurrence of significant natural disasters, including severe weather conditions, floods, health related issues or emergencies, and other catastrophic events. The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, including those discussed in the section entitled "Risk Factors," and in the Company's other periodic and current reports filed with the SEC. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on our forward-looking information and statements. We will not update the forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict their occurrence or how they will affect the Company's operations, financial condition or results of operations.
FVCBankcorp, Inc.
Selected Financial Data
(Dollars in thousands, except share and per share data)
(Unaudited)
At or For the Three Months
Ended, For the Nine Months Ended, At or For the Three Months Ended,
-------------------------------- -------------------------------- ---------------------------------
September 30, September 30, September 30, September 30, December 31,
2025 2024 2025 2024 June 30, 2025 2024
--------------- --------------- --------------- --------------- ---------------- ---------------
Selected Balances
Total assets $ 2,319,052 $ 2,293,282 $ 2,237,250 $ 2,198,950
Total investment
securities 157,165 165,296 157,129 156,740
Total loans, net of
deferred fees 1,858,422 1,874,946 1,869,098 1,870,235
Allowance for credit
losses on loans (17,943) (19,067) (18,065) (18,129)
Total deposits 1,977,882 1,960,767 1,903,472 1,870,605
Subordinated debt 18,737 19,666 18,723 18,695
Other borrowings 50,000 57,000 50,000 50,000
Reserve for unfunded
commitments 502 510 503 510
Total shareholders'
equity 249,804 230,830 243,163 235,354
Summary Results of
Operations
Interest income $ 29,827 $ 29,233 $ 87,813 $ 84,032 $ 29,430 $ 29,281
Interest expense 13,794 15,019 40,969 43,356 13,671 14,367
Net interest income 16,033 14,214 46,844 40,676 15,759 14,914
Provision for credit
losses 375 (200) 680 6 105 --
Net interest income
after provision for
credit losses 15,658 14,414 46,164 40,670 15,654 14,913
Noninterest income -
loan fees, service
charges and other 452 467 1,342 1,329 432 431
Noninterest income -
bank owned life
insurance 73 70 215 326 71 71
Noninterest income
(loss) on minority 508 278 1,000 426 351 (49)
Noninterest income -
gain on termination
of derivative
instruments -- -- 154 -- 154 --
Noninterest expense 9,472 9,196 28,032 26,817 9,428 9,002
Income before taxes 7,219 6,033 20,843 15,934 7,234 6,363
Income tax expense 1,640 1,364 4,432 5,770 1,567 1,463
Net income 5,579 4,669 16,411 10,164 5,667 4,900
Per Share Data
Net income, basic $ 0.31 $ 0.26 $ 0.90 $ 0.56 $ 0.31 $ 0.27
Net income, diluted $ 0.31 $ 0.25 $ 0.90 $ 0.55 $ 0.31 $ 0.26
Book value $ 13.82 $ 12.68 $ 13.49 $ 12.93
Tangible book value $ 13.41 $ 12.27 $ 13.08 $ 12.52
Tangible book value,
excluding
accumulated other
comprehensive
losses $ 14.57 $ 13.52 $ 14.32 $ 13.80
Shares outstanding 18,074,327 18,204,455 18,019,204 18,204,455
Selected Ratios
Net interest margin
(2) 2.91% 2.64% 2.88% 2.57% 2.90% 2.77%
Return on average
assets (2) 1.00% 0.85% 0.98% 0.62% 1.02% 0.90%
Return on average
equity (2) 9.05% 8.15% 9.01% 6.04% 9.37% 8.37%
Efficiency (3) 55.50% 61.19% 56.57% 62.72% 56.22% 58.58%
Loans, net of
deferred fees to
total deposits 93.96% 95.62% 98.19% 99.98%
Noninterest-bearing
deposits to total
deposits 18.93% 18.21% 18.71% 19.55%
Reconciliation of Net
Income (GAAP) to Core
Operating Earnings
(Non-GAAP)(4)
GAAP net income
reported above $ 5,579 $ 4,669 $ 16,411 $ 10,164 $ 5,667 $ 4,900
Gain on termination
of derivative
instruments -- -- (154) -- (154) --
Non-recurring tax and
10% modified
endowment contract
penalty on early
surrender of BOLI
policies -- -- -- 2,386 -- --
Income tax benefit
associated with
non-GAAP
adjustments -- -- 35 -- 35 --
---------- ---------- --------- --- --------- --- ---------- --- ----------
Adjusted Net Income,
core operating
earnings (non-GAAP) $ 5,579 $ 4,669 $ 16,292 $ 12,550 $ 5,548 $ 4,900
========== ========== ========= === ========= === ========== === ==========
Adjusted Earnings per
share - basic
(non-GAAP core
operating earnings)
(2) $ 0.31 $ 0.26 $ 0.90 $ 0.70 $ 0.31 $ 0.27
Adjusted Earnings per
share - diluted
(non-GAAP core
operating earnings)
(2) $ 0.31 $ 0.25 $ 0.89 $ 0.68 $ 0.30 $ 0.26
Adjusted Return on
average assets
(non-GAAP core
operating earnings)
(2) 1.00% 0.85% 0.98% 0.77% 1.00% 0.90%
Adjusted Return on
average equity
(non-GAAP core
operating earnings)
(2) 9.05% 8.15% 8.94% 7.46% 9.17% 8.36%
Adjusted Efficiency
ratio (non-GAAP core
operating
earnings)(3) 55.50% 61.19% 56.74% 62.72% 56.74% 58.62%
Capital Ratios - Bank
Tangible common
equity (to tangible
assets) 11.04% 10.21% 11.16% 10.87%
Total risk-based
capital (to risk
weighted assets) 15.77% 14.52% 15.28% 14.73%
Common equity tier 1
capital (to risk
weighted assets) 14.78% 13.48% 14.29% 13.74%
Tier 1 leverage (to
average assets) 12.13% 11.49% 11.97% 11.74%
Asset Quality
Nonperforming loans $ 11,068 $ 3,556 $ 10,529 $ 12,823
Nonperforming loans
to total assets 0.48% 0.16% 0.47% 0.58%
Nonperforming assets
to total assets 0.48% 0.16% 0.47% 0.58%
Allowance for credit
losses on loans 0.97% 1.02% 0.97% 0.97%
Allowance for credit
losses to
nonperforming loans 162.12% 536.19% 171.57% 141.38%
Net charge-offs
(recoveries) $ 498 $ (63) $ 876 $ (68) $ 517 $ 937
Net charge-offs
(recoveries) to
average loans (2) 0.11% (0.01)% 0.06% (0.01)% 0.11% 0.20%
Selected Average
Balances
Total assets $ 2,239,138 $ 2,187,583 $2,223,653 $2,172,666 $ 2,229,432 $ 2,185,879
Total earning assets 2,186,727 2,142,155 2,174,161 2,116,436 2,182,180 2,139,505
Total loans, net of
deferred fees 1,829,587 1,879,152 1,852,754 1,867,503 1,862,488 1,875,328
Total deposits 1,900,735 1,855,513 1,888,621 1,813,794 1,896,262 1,851,402
Other Data
Noninterest-bearing
deposits $ 374,414 $ 357,028 $ 356,208 $ 365,666
Interest-bearing
checking, savings
and money market 1,094,682 1,107,335 1,033,577 1,006,898
Time deposits 273,837 246,527 278,758 248,154
Wholesale deposits 234,949 249,877 234,929 249,887
(1) Non-GAAP
Reconciliation
Total shareholders'
equity $ 249,804 $ 230,830 $ 243,163 $ 235,354
Goodwill and
intangibles, net (7,322) (7,457) (7,352) (7,420)
---------- ---------- ---------- ----------
Tangible Common Equity $ 242,482 $ 223,373 $ 235,811 $ 227,934
========== ========== ========== === ==========
Accumulated Other
Comprehensive Loss
("AOCI") (20,940) (22,721) (22,266) (23,266)
---------- ---------- ---------- ----------
Tangible Common Equity
excluding AOCI $ 263,422 $ 246,094 $ 258,077 $ 251,200
========== ========== ========== === ==========
Book value per common
share $ 13.82 12.68 $ 13.49 $ 12.93
Intangible book value
per common share (0.41) (0.41) (0.41) (0.41)
---------- ---------- ---------- ----------
Tangible book value per
common share $ 13.41 $ 12.27 $ 13.08 $ 12.52
========== ========== ========== === ==========
AOCI (loss) per common
share (1.16) (1.25) (1.24) (1.28)
---------- ---------- ---------- ----------
Tangible book value per
common share, excluding
AOCI $ 14.57 $ 13.52 $ 14.32 $ 13.80
========== ========== ========== === ==========
(2) Annualized.
(3) Efficiency ratio is calculated as noninterest expense divided by the sum
of net interest income and noninterest income.
(4) 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 consolidated statements of income, condition, or statements
of cash flows.
FVCBankcorp, Inc.
Summary Consolidated Statements of Condition
(Dollars in thousands)
(Unaudited)
% Change
September June 30, Current December September % Change From
30, 2025 2025 Quarter 31, 2024 30, 2024 Year Ago
----------- ----------- ------------- ----------- ----------- -------------
Cash and due from banks $ 14,917 $ 14,627 2.0% $ 8,161 $ 10,051 48.4%
Interest-bearing
deposits at other
financial institutions 214,007 120,505 77.6% 82,789 167,575 27.7%
Investment securities 157,165 157,129 --% 156,740 165,296 (4.9)%
Restricted stock, at
cost 7,774 7,774 --% 8,186 8,186 (5.0)%
Loans, net of fees:
Commercial real
estate 994,552 981,479 1.3% 1,038,307 1,062,978 (6.4)%
Commercial and
industrial 335,813 344,931 (2.6)% 314,274 288,821 16.3%
Commercial
construction 170,252 177,135 (3.9)% 162,367 173,806 (2.0)%
Consumer real estate 301,993 307,423 (1.8)% 325,313 331,713 (9.0)%
Warehouse facilities 50,336 52,529 (4.2)% 22,388 10,777 367.1%
Consumer
nonresidential 5,476 5,601 (2.2)% 7,586 6,851 (20.1)%
--------- --------- --------- ---------
Total loans, net
of fees 1,858,422 1,869,098 (0.6)% 1,870,235 1,874,946 (0.9)%
Allowance for credit
losses on loans (17,943) (18,065) (0.7)% (18,129) (19,067) (5.9)%
--------- --------- --------- ---------
Loans, net 1,840,479 1,851,033 (0.6)% 1,852,106 1,855,879 (0.8)%
Premises and equipment,
net 723 773 (6.5)% 858 866 (16.5)%
Goodwill and
intangibles, net 7,322 7,352 (0.4)% 7,420 7,457 (1.8)%
Bank owned life
insurance (BOLI) 9,434 9,361 0.8% 9,219 9,148 3.1%
Other assets 67,231 68,696 (2.1)% 73,471 68,824 (2.3)%
--------- --------- --------- ---------
Total Assets $2,319,052 $2,237,250 3.7% $2,198,950 $2,293,282 1.1%
========= ========= ========= =========
Deposits:
Noninterest-bearing $ 374,414 $ 356,208 5.1% $ 365,666 $ 357,028 4.9%
Interest checking 803,291 669,054 20.1% 623,811 615,839 30.4%
Savings and money
market 291,391 364,523 (20.1)% 383,087 491,496 (40.7)%
Time deposits 273,837 278,758 (1.8)% 248,154 246,527 11.1%
Wholesale deposits 234,949 234,929 --% 249,887 249,877 (6.0)%
--------- --------- --------- ---------
Total deposits 1,977,882 1,903,472 3.9% 1,870,605 1,960,767 0.9%
Other borrowed funds 50,000 50,000 --% 50,000 57,000 (12.3)%
Subordinated notes, net
of issuance costs 18,737 18,723 0.1% 18,695 19,666 (4.7)%
Reserve for unfunded
commitments 502 503 (0.2)% 510 510 (1.6)%
Other liabilities 22,127 21,389 3.5% 23,786 24,509 (9.7)%
Shareholders' equity 249,804 243,163 2.7% 235,354 230,830 8.2%
--------- --------- --------- ---------
Total Liabilities &
Shareholders' Equity $2,319,052 $2,237,250 3.7% $2,198,950 $2,293,282 1.1%
========= ========= ========= =========
FVCBankcorp, Inc.
Summary Consolidated Statements of Income
(Dollars in thousands, except share and per share data)
(Unaudited)
For the Three Months Ended
--------------------------------------------------------------------------------
% Change
September 30, Current September 30, % Change From
2025 June 30, 2025 Quarter 2024 Year Ago
--------------- --------------- -------------- --------------- -------------
Net interest income $ 16,033 $ 15,759 1.7% $ 14,214 12.8%
Provision for credit
losses 375 105 257.1% (200) (287.5)%
---------- ---------- ----------
Net interest income
after provision for
credit losses 15,658 15,654 --% 14,414 8.6%
---------- ---------- ----------
Noninterest income:
Fees on loans 35 33 6.1% 54 (35.2)%
Service charges on
deposit accounts 321 282 13.8% 301 6.6%
BOLI income 73 71 2.8% 70 4.3%
Income from
minority
membership
interests 508 351 (44.7)% 278 (82.7)%
Gain on termination
of derivative
instruments -- 154 (100.0)% -- --%
Other fee income 96 117 (17.9)% 112 (14.3)%
---------- ---------- ----------
Total
noninterest
income 1,033 1,008 2.5% 815 26.7%
---------- ---------- ----------
Noninterest expense:
Salaries and
employee benefits 5,115 5,036 1.6% 4,853 5.4%
Occupancy expense 520 539 (3.5)% 465 11.8%
Internet banking
and software
expense 890 864 3.0% 706 26.1%
Data processing and
network
administration 559 550 1.6% 727 (23.1)%
State franchise
taxes 583 583 --% 589 (1.0)%
Professional fees 294 328 (10.4)% 224 31.3%
Other operating
expense 1,511 1,528 (1.1)% 1,632 (7.4)%
---------- ---------- ----------
Total
noninterest
expense 9,472 9,428 0.5% 9,196 3.0%
---------- ---------- ----------
Net income before
income taxes 7,219 7,234 (0.2)% 6,033 19.7%
Income tax expense 1,640 1,567 4.7% 1,364 20.2%
---------- ---------- ----------
Net Income $ 5,579 $ 5,667 (1.6)% $ 4,669 19.5%
========== ========== ==========
Earnings per share -
basic $ 0.31 $ 0.31 (0.3)% $ 0.26 18.9%
Earnings per share -
diluted $ 0.31 $ 0.31 (1.0)% $ 0.25 22.8%
Weighted-average
common shares
outstanding - basic 18,049,623 18,129,487 (0.4)% 18,195,102 (0.8)%
Weighted-average
common shares
outstanding -
diluted 18,179,295 18,256,496 (0.4)% 18,433,125 (1.4)%
Reconciliation of Net Income (GAAP) to Core Operating
Earnings (Non-GAAP):
GAAP net income
reported above $ 5,579 $ 5,667 $ 4,669
Gain on termination of
derivative
instruments -- (154) --
Income tax benefit
associated with
non-GAAP adjustments -- 35 --
---------- ---------- ----------
Adjusted Net Income,
core operating
earnings (non-GAAP) $ 5,579 $ 5,548 $ 4,669
========== ========== ==========
Adjusted Earnings per
share - basic
(non-GAAP core
operating earnings) $ 0.31 $ 0.31 $ 0.26
Adjusted Earnings per
share - diluted
(non-GAAP core
operating earnings) $ 0.31 $ 0.30 $ 0.25
Adjusted Return on
average assets
(non-GAAP core
operating earnings) 1.00% 1.00% 0.85%
Adjusted Return on
average equity
(non-GAAP core
operating earnings) 9.05% 9.17% 8.15%
Adjusted Efficiency
ratio (non-GAAP core
operating earnings) 55.50% 56.74% 61.19%
Reconciliation of Net Income (GAAP) to Pre-Tax
Pre-Provision Income (Non-GAAP):
--------------------------------------------------------
GAAP net income
reported above $ 5,579 $ 5,667 $ 4,669
Provision for
credit losses 375 105 (200)
Gain on termination
of derivative
instruments -- (154) --
Income tax expense 1,640 1,567 1,364
---------- ---------- ----------
Adjusted Pre-tax
pre-provision
income $ 7,594 $ 7,185 $ 5,833
========== ========== ==========
Adjusted Earnings
per share - basic
(non-GAAP pre-tax
pre-provision) $ 0.42 $ 0.40 $ 0.32
Adjusted Earnings
per share -
diluted (non-GAAP
pre-tax
pre-provision) $ 0.42 $ 0.39 $ 0.32
Adjusted Return on
average assets
(non-GAAP pre-tax
pre-provision) 1.36% 1.29% 1.07%
Adjusted Return on
average equity
(non-GAAP pre-tax
pre-provision) 12.32% 11.88% 10.18%
FVCBankcorp, Inc.
Summary Consolidated Statements of Income
(Dollars in thousands, except share and per share data)
(Unaudited)
For the Nine Months Ended
---------------------------------------------
September 30, September 30,
2025 2024 % Change
--------------- --------------- -----------
Net interest income $ 46,844 $ 40,676 15.2%
Provision for credit
losses 680 6 11233.3%
---------- ----------
Net interest income
after provision for
credit losses 46,164 40,670 13.5%
---------- ----------
Noninterest income:
Fees on loans 145 141 2.8%
Service charges on
deposit accounts 873 841 3.8%
BOLI income 215 326 (34.0)%
Income from
minority
membership
interests 1,000 426 134.7%
Gain on termination
of derivative
instruments 154 -- 100.0%
Other fee income 324 347 (6.6)%
---------- ----------
Total
noninterest
income 2,711 2,081 30.3%
---------- ----------
Noninterest expense:
Salaries and
employee benefits 14,933 14,073 6.1%
Occupancy expense 1,588 1,502 5.7%
Internet banking
and software
expense 2,580 2,130 21.1%
Data processing and
network
administration 1,728 2,029 (14.8)%
State franchise
taxes 1,761 1,768 (0.4)%
Professional fees 864 694 24.5%
Other operating
expense 4,578 4,621 (0.9)%
---------- ----------
Total
noninterest
expense 28,032 26,817 4.5%
---------- ----------
Net income before
income taxes 20,843 15,934 30.8%
Income tax expense 4,432 5,770 (23.2)%
---------- ----------
Net Income $ 16,411 $ 10,164 61.5%
========== ==========
Earnings per share -
basic $ 0.90 $ 0.56 61.3%
Earnings per share -
diluted $ 0.90 $ 0.55 62.9%
Weighted-average
common shares
outstanding - basic 18,158,126 18,008,117 0.8%
Weighted-average
common shares
outstanding -
diluted 18,300,767 18,364,171 (0.3)%
Reconciliation of Net
Income (GAAP) to Core
Operating Earnings
(Non-GAAP):
---------------------
GAAP net income
reported above $ 16,411 $ 10,164
Gain on termination
of derivative
instruments (154) --
Non-recurring tax
and 10% modified
endowment contract
penalty on early
surrender of BOLI
policies -- 2,386
Provision for
income taxes
associated with
non-GAAP
adjustments 35 --
---------- ----------
Adjusted Net
Income, core bank
operating earnings
(non-GAAP) $ 16,292 $ 12,550
========== ==========
Adjusted Earnings
per share - basic
(non-GAAP core
operating
earnings) $ 0.90 $ 0.70
Adjusted Earnings
per share -
diluted (non-GAAP
core operating
earnings) $ 0.89 $ 0.68
Adjusted Return on
average assets
(non-GAAP core
operating
earnings) 0.98% 0.77%
Adjusted Return on
average equity
(non-GAAP core
operating
earnings) 8.94% 7.46%
Adjusted Efficiency
ratio (non-GAAP
core operating
earnings) 56.74% 62.72%
Reconciliation of Net
Income (GAAP) to
Pre-Tax Pre-Provision
Income (Non-GAAP):
---------------------
GAAP net income
reported above $ 16,411 $ 10,164
Provision for
credit losses 680 6
Gain on termination
derivative
instruments (154) --
Non-recurring tax
and 10% modified
endowment contract
penalty on early
surrender of BOLI
policies -- 2,386
Income tax expense 4,432 3,384
---------- ----------
Adjusted Pre-tax
pre-provision
income $ 21,369 $ 15,940
========== ==========
Adjusted Earnings
per share - basic
(non-GAAP pre-tax
pre-provision) $ 1.18 $ 0.89
Adjusted Earnings
per share -
diluted (non-GAAP
pre-tax
pre-provision) $ 1.17 $ 0.87
Adjusted Return on
average assets
(non-GAAP pre-tax
pre-provision) 1.28% 0.98%
Adjusted Return on
average equity
(non-GAAP pre-tax
pre-provision) 11.73% 9.47%
FVCBankcorp, Inc.
Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities
(Dollars in thousands)
(Unaudited)
For the Three Months Ended
-------------------------------------------------------------------------------------------------------------------------------
9/30/2025 6/30/2025 9/30/2024
----------------------------------------- ----------------------------------------- -----------------------------------------
Average Interest Average Average Interest Average Average Interest Average
Balance Income/Expense Yield Balance Income/Expense Yield Balance Income/Expense Yield
----------- ---------------- ---------- ----------- ---------------- ---------- ----------- ---------------- ----------
Interest-earning
assets:
Loans receivable, net
of fees (1)
Commercial real
estate $ 965,153 $ 12,425 5.15% $ 996,979 $ 12,625 5.07% $1,075,258 $ 13,969 5.20%
Commercial and
industrial 340,510 6,906 8.11% 339,859 6,847 8.06% 268,484 5,558 8.28%
Commercial
construction 177,620 3,310 7.45% 171,434 3,175 7.41% 168,155 3,175 7.55%
Consumer real estate 301,687 3,618 4.80% 311,331 3,662 4.70% 334,385 4,047 4.84%
Warehouse facilities 39,104 617 6.31% 35,603 569 6.39% 26,043 489 7.51%
Consumer
nonresidential 5,513 108 7.83% 7,282 150 8.29% 6,827 143 8.38%
--------- ---- ---------- --------- ---- ---------- --------- ---- ----------
Total loans 1,829,587 26,984 5.90% 1,862,488 27,028 5.80% 1,879,152 27,381 5.83%
Investment securities
(2) 193,262 1,026 2.12% 196,693 1,038 2.11% 205,019 1,050 2.05%
Interest-bearing
deposits at other
financial institutions 163,878 1,817 4.40% 122,999 1,364 4.45% 57,984 802 5.50%
--------- ---- ---------- --------- ---- ---------- --------- ---- ----------
Total
interest-earning
assets 2,186,727 $ 29,827 5.46% 2,182,180 $ 29,430 5.39% 2,142,155 $ 29,233 5.46%
---- ---------- ---- ---------- ---- ----------
Non-interest earning
assets:
Cash and due from banks 14,265 10,981 7,443
Premises and equipment,
net 755 800 892
Accrued interest and
other assets 55,379 53,874 56,312
Allowance for credit
losses (17,988) (18,403) (19,219)
--------- --------- ---------
Total Assets $2,239,138 $2,229,432 $2,187,583
========= ========= =========
Interest-bearing
liabilities:
Interest checking $ 702,037 $ 5,496 3.11% $ 646,842 $ 5,025 3.12% $ 620,256 $ 5,652 3.62%
Savings and money market 321,399 2,755 3.40% 362,904 3,011 3.33% 362,663 3,482 3.82%
Time deposits 277,760 2,783 3.97% 277,311 2,823 4.08% 264,125 2,929 4.41%
Wholesale deposits 234,925 2,037 3.44% 247,603 2,099 3.40% 249,851 2,136 3.40%
--------- ---- ---------- --------- ---- ---------- --------- ---- ----------
Total
interest-bearing
deposits 1,536,121 13,071 3.38% 1,534,660 12,958 3.39% 1,496,895 14,199 3.77%
Other borrowed funds 50,011 478 3.78% 50,011 468 3.75% 57,000 563 3.93%
Subordinated notes, net
of issuance costs 18,728 245 5.20% 18,714 245 5.26% 19,656 257 5.21%
--------- ---- ---------- --------- ---- ---------- --------- ---- ----------
Total
interest-bearing
liabilities 1,604,860 $ 13,794 3.41% 1,603,385 $ 13,671 3.42% 1,573,551 15,019 3.80%
---- ---------- ---- ---------- ---- ----------
Noninterest-bearing
liabilities:
Noninterest-bearing
deposits 364,614 361,602 358,618
Other liabilities 23,121 22,437 26,252
Shareholders' equity 246,543 242,008 229,162
--------- --------- ---------
Total Liabilities and
Shareholders' Equity $2,239,138 $2,229,432 $2,187,583
========= ========= =========
Net Interest Margin $ 16,033 2.91% $ 15,759 2.90% $ 14,214 2.64%
==== ========== ==== ========== ==== ==========
(1) Non-accrual loans are included in average balances.
(2) 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
-----------------------------------------------------------------------------------
9/30/2025 9/30/2024
---------------------------------------- -----------------------------------------
Average Interest Average Average Interest Average
Balance Income/Expense Yield Balance Income/Expense Yield
----------- --------------- ---------- ----------- ---------------- ----------
Interest-earning
assets:
Loans receivable, net
of fees (1)
Commercial real
estate $ 996,337 $ 37,935 5.08% $1,084,436 $ 41,325 5.08%
Commercial and
industrial 334,858 20,122 8.01% 250,106 14,941 7.97%
Commercial
construction 171,434 9,454 7.35% 161,159 8,845 7.32%
Consumer real estate 310,921 11,103 4.76% 346,771 12,604 4.85%
Warehouse facilities 32,248 1,533 6.34% 18,885 1,060 7.48%
Consumer
nonresidential 6,956 419 8.02% 6,146 377 8.18%
--------- -------------- --------- ---- ----------
Total loans 1,852,754 80,566 5.80% 1,867,503 79,152 5.65%
Investment securities
(2) 196,223 3,103 2.11% 210,536 3,305 2.09%
Interest-bearing
deposits at other
financial institutions 125,184 4,144 4.43% 38,397 1,575 5.48%
--------- -------------- --------- ---- ----------
Total
interest-earning
assets 2,174,161 $ 87,813 5.39% 2,116,436 $ 84,032 5.29%
-------------- ---- ----------
Non-interest earning
assets:
Cash and due from banks 11,269 6,982
Premises and equipment,
net 801 949
Accrued interest and
other assets 55,617 67,311
Allowance for credit
losses (18,195) (19,012)
--------- ---------
Total Assets $2,223,653 $2,172,666
========= =========
Interest-bearing
liabilities:
Interest checking $ 655,651 $ 15,342 3.13% $ 556,650 $ 14,215 3.41%
Savings and money market 358,003 8,907 3.33% 332,663 9,071 3.64%
Time deposits 270,565 8,286 4.09% 283,897 9,240 4.35%
Wholesale deposits 244,084 6,286 3.44% 268,295 7,108 3.54%
--------- -------------- --------- ---- ----------
Total
interest-bearing
deposits 1,528,303 38,821 3.38% 1,441,505 39,634 3.67%
Other borrowed funds 50,007 1,412 3.78% 88,082 2,949 4.47%
Subordinated notes, net
of issuance costs 18,714 736 5.26% 19,640 773 5.25%
--------- -------------- --------- ---- ----------
Total
interest-bearing
liabilities 1,597,024 $ 40,969 3.41% 1,549,227 $ 43,356 3.74%
-------------- ---- ----------
Noninterest-bearing
liabilities:
Noninterest-bearing
deposits 360,318 372,289
Other liabilities 23,429 26,759
Shareholders' equity 242,882 224,391
--------- ---------
Total Liabilities and
Shareholders' Equity $2,223,653 $2,172,666
========= =========
Net Interest Margin $ 46,844 2.88% $ 40,676 2.57%
-------------- ---- ----------
(1) Non-accrual loans are included in average balances.
(2) The average balances for investment securities includes restricted
stock.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251021231263/en/
CONTACT: David W. Pijor, Esq., 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
(END) Dow Jones Newswires
October 21, 2025 16:00 ET (20:00 GMT)