Form 8-K FVCBankcorp, Inc. For: Jul 18

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  July 18, 2019

 

FVCBankcorp, Inc.

(Exact name of registrant as specified in its charter)

 

 

11325 Random Hills Road

Fairfax, Virginia 22030

(Address of Principal Executive Offices) (Zip Code)

 

(703) 436-3800

Registrant’s telephone number, including area code:

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

Item 2.02              Results of Operations and Financial Condition.

 

On July 18, 2019, FVCBankcorp, Inc. issued a press release reporting its financial results for the period ended June 30, 2019.  A copy of the press release is being furnished as an exhibit to this report and is incorporated by reference into this Item 2.02.

 

Item 9.01              Financial Statements and Exhibits.

 

(d)           Exhibits.

 

Exhibit No.		Description
99.1		Press Release dated July 18, 2019.

 

2

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	FVCBANKCORP, INC.
	By:	/s/ Jennifer L. Deacon
		Jennifer L. Deacon, Executive Vice President and Chief Financial Officer
Dated: July 19, 2019

 

3

Exhibit 99.1

 

PRESS RELEASE

 

For further information, contact:

David W. Pijor, Chairman and Chief Executive Officer

Phone: (703) 436-3802

Email: [email protected]

Patricia A. Ferrick, President

Phone: (703) 436-3822

Email: [email protected]

 

FOR IMMEDIATE RELEASE — July 18, 2019

 

FVCBankcorp, Inc. Announces

Record Earnings for Second Quarter 2019

 

Fairfax, VA-FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported second quarter 2019 net income of $4.1 million, or $0.28 diluted earnings per share, compared to $3.1 million, or $0.26 diluted earnings per share, for the quarterly period ended June 30, 2018.  Weighted-average common shares outstanding for the diluted earnings per share calculations were 14.8 million and 12.1 million for the three months ended June 30, 2019 and 2018, respectively, reflecting the increase from shares issued in 2018 for the initial public offering and acquisition of Colombo Bank (“Colombo”).

 

For the six month period ended June 30, 2019, net income was $8.0 million, or $0.54 per diluted earnings per share, compared to $6.1 million, or $0.50 diluted earnings per share, for the six month period ended June 30, 2018.  Before merger-related expenses net of taxes, net income for the six months ended June 30, 2019 was $8.1 million, or $0.55 per diluted share and for the prior year net income for the six month period was $6.4 million, or $0.53 diluted earnings per share.

 

Return on average assets was 1.13% and return on average equity was 9.78% for the second quarter of 2019.  For the comparable quarterly June 30, 2018 period, return on average assets was 1.13% and return on average equity was 12.00%.  For the six months ended June 30, 2019 and 2018, return on average assets was 1.14% and 1.13%, respectively.  Return on average equity for the six months ended June 30, 2019 and 2018 was 9.76% and 12.02%, respectively.

 

Selected Highlights

 

·                  Record Earnings.  Earnings increased $1.0 million, or 33%, to $4.1 million for the second quarter of 2019 as compared to the same 2018 period.  Net interest margin increased to 3.59% for the quarter ended June 30, 2019 compared to 3.50% for the year ago quarter ended June 30, 2018, and decreased from 3.65% for the linked quarter ended March 31, 2019.

 

·                  Strong Loan Growth.  Total loans, net of deferred fees, totaled $1.23 billion at June 30, 2019, an increase of $55.4 million, or 19% annualized, from March 31, 2019. Year-over-year loan growth was $278.7 million, or 29% from June 30, 2018 to June 30, 2019. Excluding the $110 million of loans associated with the Colombo acquisition, organic growth was $168 million, or 18%.

 

·                  Sound Asset Quality.  Asset quality remains strong, with nonperforming loans and loans past due 90 days or more as a percentage of total assets of 0.67% at June 30, 2019.  Nonperforming loans and loans past due 90 days or more totaled $10.0 million at June 30, 2019, of which $2.9 million were acquired loans from Colombo.

 

·                  Strong Core Deposit Growth.  Total deposits increased $56.7 million, to $1.27 billion at June 30, 2019, or 19% annualized, from March 31, 2019.  Noninterest-bearing deposits increased $37.4 million, or 16% during 2019 and represent 21% of the total deposit base at June 30, 2019.

 

 

·                  Improved Tangible Book Value.  Tangible book value per share at June 30, 2019 was $11.70, a 25% increase from $9.38 at June 30, 2018.

 

“I continue to be pleased with how our Company performed during the second quarter of 2019.  FVCbank has consistently reported record earnings which has been driven by strong loan and deposit growth, a direct result of our expanded regional presence and the strength of our business development teams,” stated David W. Pijor, Chairman and CEO.

 

Balance Sheet

 

Total assets increased to $1.48 billion at June 30, 2019 compared to $1.14 billion at June 30, 2018, an increase of $345.2 million, or 30%. Loans receivable, net of deferred fees, totaled $1.23 billion at June 30, 2019, compared to $955.6 million at June 30, 2018, an increase of $278.7 million, or 29%. Excluding the $110 million of loans associated with the Colombo acquisition, organic growth was $168 million, or 18%.  During the second quarter of 2019, average loans grew $70.0 million, or 25% annualized. During the quarter, loan originations totaled approximately $114 million, of which $77 million funded during the quarter.

 

Investment securities increased $17.4 million to $136.2 million at June 30, 2019, compared to $118.8 million at June 30, 2018.

 

Total deposits increased to $1.27 billion at June 30, 2019 compared to $1.01 billion at June 30, 2018, an increase of $260.5 million, or 26%. Core deposits, which represent total deposits less wholesale deposits, increased $255.5 million or 27% to $1.19 billion at June 30, 2019 compared to $931.6 million at June 30, 2018.  Wholesale deposits totaled $82.2 million, or 6% of total deposits at June 30, 2019, a decrease of $33.2 million from March 31, 2019.  Noninterest-bearing deposits increased $17.0 million to $270.7 million at June 30, 2019 from $253.7 million at March 31, 2019, and represented 21% of total deposits at June 30, 2019.

 

Income Statement

 

Net interest income totaled $12.4 million, an increase of $3.0 million, or 32%, for the quarter ended June 30, 2019, compared to the year ago quarter, and an increase of $607 thousand, or 5% compared to the first quarter of 2019. The Company’s net interest margin increased 9 basis points to 3.59% for the quarter ended June 30, 2019 compared to 3.50% for the quarter ended June 30, 2018. On a linked quarter basis, net interest margin decreased 6 basis points from 3.65% for the three months ended March 31, 2019, primarily a result of a decrease in acquired loan accretion and an increase in the cost of interest-bearing deposits. For the six months ended June 30, 2019, net interest income was $24.1 million compared to $18.1 million for the year to date period ended June 30, 2018, an increase of $6.0 million, or 33%.

 

Cost of deposits, which include noninterest-bearing deposits, for the second quarter of 2019 was 1.36%, compared to 0.95% for the second quarter of 2018, reflecting the increased rate environment from a year ago.  The Company has also been successful in adding several new customer relationships at current market rates which have contributed to the increase in deposit costs year-over-year. The average yield for the loan portfolio for the second quarter of 2019 was 5.24% compared to 4.86% for the year ago quarter, and 5.23% for the quarter ended March 31, 2019. Included in net interest income for the second quarter of 2019 is $222 thousand in acquired loan accretion associated with the Company’s acquired loan portfolio, which has contributed to the increase in margin.  Acquired loan accretion was $245 thousand for the first quarter of 2019.

 

Noninterest income totaled $539 thousand and $363 thousand for the quarters ended June 30, 2019 and 2018, respectively.  Fee income from loans was $53 thousand, an increase of $49 thousand for the quarter ended June 30, 2019 compared to 2018, primarily a result of an increase in commercial loan fee income.  Compared to the quarter ended March 31, 2019, fees on loans decreased $294 thousand, all of which was a result of a decrease in loan swap fee income during the quarter ended June 30, 2019.  Service charges on deposit accounts and other fee income totaled $376 thousand for the second quarter of 2019, an increase of 50% or $125 thousand from the year ago quarter.  This increase in deposit fee income resulted from the increase in core deposit relationships,

 

 

both organic and acquired, year over year.  Noninterest income for the year to date period ended June 30, 2019 was $1.3 million, compared to $748 thousand for the 2018 year to date period, an increase of $529 thousand, or 71%, which was primarily driven by loan swap fee income and service charges on deposit accounts.

 

Noninterest expense totaled $7.3 million for the quarter ended June 30, 2019, compared to $5.8 million for the same three-month period of 2018. Approximately $893 thousand of the increase in noninterest expense from the year ago quarter is attributable to expenses associated with Colombo’s former operations, in addition to merger-related expenses of $16 thousand for the three months ended June 30, 2019.  Salary and compensation related expenses increased $921 thousand, or 28%, for the quarter ended June 30, 2019, compared to the same three-month period of 2018, resulting from the increase in staffing from the acquisition and increases in back-office support staff. Occupancy and equipment expense increased $293 thousand year-over-year primarily as a result of the branch locations acquired from Colombo.  Increases in data processing and network administration, franchise taxes and other operating expenses for the quarter ended June 30, 2019 compared to the same three-month period of 2018 is primarily growth related. On a linked quarter basis, noninterest expense increased $372 thousand from the three months ended March 31, 2019, primarily a result of salary increases related to the Company’s annual performance review process and an increase in the variable component to employee compensation.  For the six months ended June 30, 2019 and 2018, noninterest expense was $14.2 million and $11.1 million, respectively, the increase of which relates directly to the addition of Colombo to the Company’s expense structure.

 

The efficiency ratio for the quarter ended June 30, 2019 was 56.4%, a decrease from 59.9% from the year ago quarter.  The efficiency ratios for the six months ended June 30, 2019 and 2018, excluding merger-related expenses were 55.5% and 56.6%, respectively.

 

Asset Quality

 

The Company recorded provision for loan losses of $505 thousand for the three months ended June 30, 2019, compared to $281 thousand for the year ago quarter.  Year to date provision expense for 2019 was $1.0 million compared to $639 thousand for the 2018 year to date period. Asset quality remains strong as nonperforming loans and loans ninety days or more past due totaled $10.2 million, or 0.68% of total assets, of which $2.7 million related to acquired loans. All of the Company’s nonperforming loans are secured with three loans having specific reserves totaling $325 thousand.  There were no performing troubled debt restructurings (“TDR”) at June 30, 2019, compared to $4.1 million at March 31, 2019, which is now included as part of the nonperforming loan portfolio and represents the decline in the allowance to nonperforming loans ratio. Nonperforming assets (including TDRs and other real estate owned) to total assets was 0.93% at June 30, 2019 compared to 0.83% for March 31, 2019.  The allowance for loan losses to total loans was 0.81% for each of the periods ended June 30, 2019 and December 31, 2018. The allowance for loan losses on the Company’s originated portfolio was 0.89% of loans outstanding at June 30, 2019 versus 0.92% at December 31, 2018, a result of acquired loans maturing and moving to the originated portfolio at renewal.  One charge-off of $20 thousand was recorded during the second quarter of 2019 which was related to the Company’s purchased consumer installment loan portfolio.

 

About FVCBankcorp Inc.

 

FVCBankcorp, Inc. is the holding company for FVCbank, a wholly-owned subsidiary of FVCB which commenced operations in November 2007. FVCbank is a $1.48 billion Virginia-chartered community bank serving the banking needs of commercial businesses, nonprofit organizations, professional service entities, their owners and employees located in the greater Baltimore and Washington D.C., metropolitan areas. Locally owned and managed, FVCbank is based in Fairfax, Virginia, and has 11 full-service offices in Arlington, Ashburn, Fairfax, Manassas, Reston and Springfield, Virginia, Washington D.C., and Baltimore, Bethesda, Rockville and Silver Spring, Maryland.

 

For more information on the Company’s selected financial information, please visit the Investor Relations page of FVCBankcorp Inc.’s website, www.fvcbank.com.

 

 

Caution about Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited, statements of goals, intentions, and expectations as to future trends, plans, events or results of the Company’s operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein.  These forward-looking statements are based on current beliefs that involve significant risks, uncertainties, and assumptions. Factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, include, but are not limited to, the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and in other periodic and current reports filed with the Securities and Exchange Commission. Because of these uncertainties and the assumptions on which the forward-looking statements are based, actual operations and results in the future may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance.

 

###

 

 

FVCBankcorp, Inc.

Selected Financial Data

(Dollars in thousands, except share data and per share data)

(Unaudited)

 

		For the Three Months Ended June 30,						For the Six Months Ended June 30,						For the Three Months Ended
		2019			2018			2019			2018			3/31/2019			12/31/2018
Selected Balances
Total assets		$	1,484,600		$	1,139,449								$	1,419,763		$	1,351,576
Total investment securities		141,611			122,644									144,865			130,597
Total loans, net of deferred fees		1,234,372			955,641									1,178,941			1,136,743
Allowance for loan losses		(9,996		)	(8,298		)							(9,512		)	(9,159		)
Total deposits		1,269,374			1,008,896									1,212,695			1,162,440
Subordinated debt		24,447			24,367									24,427			24,407
Total stockholders’ equity		170,163			103,966									163,993			158,336
Summary Results of Operations
Interest income		$	16,990		$	12,070		$	32,950		$	23,411		$	15,960		$	15,640
Interest expense		4,619			2,714			8,815			5,292			4,196			3,823
Net interest income		12,371			9,356			24,135			18,119			11,764			11,817
Provision for loan losses		505			281			1,020			639			515			930
Net interest income after provision for loan losses		11,866			9,075			23,115			17,480			11,249			10,887
Noninterest income - loan fees, service charges and other		429			255			1,062			529			633			519
Noninterest income - bank owned life insurance		110			108			215			219			105			109
Noninterest income - gain (loss) on securities sold		—			—			—			—			—			(462		)
Noninterest expense		7,276			5,822			14,180			11,082			6,904			9,419
Income before taxes		5,129			3,616			10,212			7,146			5,083			1,634
Income tax expense		1,044			539			2,201			1,072			1,157			224
Net income		4,085			3,077			8,011			6,074			3,926			1,410
Per Share Data
Net income, basic		$	0.30		$	0.28		$	0.58		$	0.55		$	0.29		$	0.10
Net income, diluted		$	0.28		$	0.26		$	0.54		$	0.50		$	0.27		$	0.10
Book value		$	12.30		$	9.39								$	11.92		$	11.55
Tangible book value		$	11.70		$	9.38								$	11.32		$	10.90
Shares outstanding		13,839,772			11,076,266									13,755,249			13,712,615
Selected Ratios
Net interest margin (2)		3.59		%	3.50		%	3.62		%	3.45		%	3.65		%	3.59		%
Return on average assets (2)		1.13		%	1.13		%	1.14		%	1.13		%	1.16		%	0.42		%
Return on average equity (2)		9.78		%	12.00		%	9.76		%	12.02		%	9.74		%	3.65		%
Efficiency (1)		56.36		%	59.90		%	55.80		%	58.74		%	55.22		%	75.69		%
Loans, net of deferred fees to total deposits		97.24		%	94.72		%							97.22		%	97.79		%
Noninterest-bearing deposits to total deposits		21.33		%	28.19		%							20.92		%	20.07		%
Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP) (3)
Net income (from above)		$	4,085		$	3,077		$	8,011		$	6,074		$	3,926		$	1,410
Add: Merger and acquisition expense		16			397			83			397			67			2,668
Add: Loss on sales of securities available-for-sale		—			—			—			—			—			462
Less: provision for income taxes associated with merger and acquisition expense		(4		)	(83		)	(19		)	(83		)	(15		)	(649		)
Net income, as adjusted		$	4,097		$	3,391		$	8,075		$	6,388		$	3,978		$	3,891
Net income, diluted, on an operating basis		$	0.28		$	0.28		$	0.55		$	0.53		$	0.27		$	0.26
Return on average assets (non-GAAP operating earnings)		1.13		%	1.24		%	1.15		%	1.19		%	1.17		%	1.16		%
Return on average equity (non-GAAP operating earnings)		9.81		%	13.23		%	9.84		%	12.64		%	9.86		%	10.07		%
Efficiency ratio (non-GAAP operating earnings)		56.24		%	55.82		%	55.47		%	56.63		%	54.69		%	54.25		%
Capital Ratios - Bank
Tangible common equity (to tangible assets)		10.97		%	9.12		%							11.03		%	11.16		%
Total capital (to risk weighted assets)		13.21		%	12.79		%							13.21		%	14.02		%
Common equity tier 1 capital (to risk weighted assets)		12.49		%	12.00		%							12.50		%	13.27		%
Tier 1 capital (to risk weighted assets)		12.49		%	12.00		%							12.50		%	13.27		%
Tier 1 leverage (to average assets)		12.10		%	11.58		%							12.57		%	12.41		%
Asset Quality
Nonperforming loans and loans 90+ past due		$	9,989		$	938								$	3,791		$	3,211
Performing troubled debt restructurings (TDRs)		—			1,600									4,092			203
Other real estate owned		3,866			3,866									3,866			4,224
Nonperforming loans and loans 90+ past due to total assets (excl. TDRs)		0.67		%	0.08		%							0.27		%	0.24		%
Nonperforming assets to total assets		0.93		%	0.42		%							0.54		%	0.55		%
Nonperforming assets (including TDRs) to total assets		0.93		%	0.56		%							0.83		%	0.57		%
Allowance for loan losses to loans		0.81		%	0.87		%							0.81		%	0.81		%
Allowance for loan losses to nonperforming loans		100.07		%	884.65		%							250.91		%	285.24		%
Net charge-offs (recovery)		$	20		$	85		$	182		$	66		$	162		$	347
Net charge-offs (recovery) to average loans (2)		0.01		%	0.04		%	0.03		%	0.01		%	0.06		%	0.13		%
Selected Average Balances
Total assets		$	1,444,588		$	1,092,950		$	1,399,949		$	1,074,807		$	1,354,814		$	1,341,991
Total earning assets		1,384,516			1,069,035			1,346,110			1,051,330			1,307,278			1,305,573
Total loans, net of deferred fees		1,207,933			930,133			1,173,134			912,025			1,137,948			1,101,539
Total deposits		1,228,595			958,304			1,188,841			940,066			1,148,646			1,141,500
Other Data
Noninterest-bearing deposits		$	270,711		$	284,452								$	253,723		$	233,318
Interest-bearing checking, savings and money market		596,701			396,667									546,067			533,732
Time deposits		319,740			250,492									297,469			310,985
Wholesale deposits		82,222			77,285									115,436			84,405

 

(1)  Efficiency ratio is calculated as noninterest expense divided by the sum of net interest income and noninterest income, excluding gains on sales of investment securities and other real estate owned.

(2)  Annualized.

(3)  Some of the financial measures discussed throughout the press release are “non-GAAP financial measures.” In accordance with SEC rules, the Company classifies a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP in our statements of income, balance sheets or statements of cash flows.

 

 

FVCBankcorp, Inc.

Summary Consolidated Statements of Condition

(Dollars in thousands)

(Unaudited)

 

								% Change								% Change
								Current								From
		6/30/2019			3/31/2019			Quarter		12/31/2018			6/30/2018			Year Ago
Cash and due from banks		$	15,201		$	13,404		13.4	%	$	9,435		$	6,309		140.9	%
Interest-bearing deposits at other financial institutions		29,149			30,359			-4.0	%	34,060			30,734			-5.2	%
Investment securities		136,232			139,474			-2.3	%	125,298			118,844			14.6	%
Restricted stock, at cost		5,379			5,391			-0.2	%	5,299			3,800			41.6	%
Loans, net of fees:
Commercial real estate		733,354			693,439			5.8	%	682,203			572,039			28.2	%
Commercial and industrial		134,466			137,869			-2.5	%	137,080			110,359			21.8	%
Commercial construction		217,105			187,760			15.6	%	152,526			138,973			56.2	%
Consumer residential		124,933			132,638			-5.8	%	132,280			106,747			17.0	%
Consumer nonresidential		24,514			27,235			-10.0	%	32,654			27,523			-10.9	%
Total loans, net of fees		1,234,372			1,178,941			4.7	%	1,136,743			955,641			29.2	%
Allowance for loan losses		(9,996		)	(9,512		)	5.1	%	(9,159		)	(8,298		)	20.5	%
Loans, net		1,224,376			1,169,429			4.7	%	1,127,584			947,343			29.2	%
Premises and equipment, net		2,049			2,218			-7.6	%	2,271			1,401			46.3	%
Goodwill and intangibles, net		8,223			8,342			-1.4	%	8,443			88			9,244.3	%
Bank owned life insurance (BOLI)		26,621			16,511			61.2	%	16,406			16,187			64.5	%
Other real estate owned		3,866			3,866			0.0	%	4,224			3,866			0.0	%
Other assets		33,504			30,769			8.9	%	18,556			10,877			208.0	%
Total Assets		$	1,484,600		$	1,419,763		4.6	%	$	1,351,576		$	1,139,449		30.3	%
Deposits:
Noninterest-bearing		$	270,711		$	253,723		6.7	%	$	233,318		$	284,452		-4.8	%
Interest-bearing checking		301,319			284,150			6.0	%	312,446			222,522			35.4	%
Savings and money market		295,382			261,917			12.8	%	221,286			174,145			69.6	%
Time deposits		319,740			297,469			7.5	%	310,985			250,492			27.6	%
Wholesale deposits		82,222			115,436			-28.8	%	84,405			77,285			6.4	%
Total deposits		1,269,374			1,212,695			4.7	%	1,162,440			1,008,896			25.8	%
Subordinated notes, net of issuance costs		24,447			24,427			0.1	%	24,407			24,367			0.3	%
Other liabilities		20,616			18,648			10.6	%	6,393			2,220			828.6	%
Stockholders’ equity		170,163			163,993			3.8	%	158,336			103,966			63.7	%
Total Liabilities & Stockholders’ Equity		$	1,484,600		$	1,419,763		4.6	%	$	1,351,576		$	1,139,449		30.3	%

 

 

FVCBankcorp, Inc.

Summary Consolidated Income Statements

(In thousands, except per share data)

(Unaudited)

 

		For the Three Months Ended
								% Change					% Change
								Current					From
		6/30/2019			3/31/2019			Quarter		6/30/2018			Year Ago
Net interest income		$	12,371		$	11,764		5.2	%	$	9,356		32.2	%
Provision for loan losses		505			515			-1.9	%	281			79.7	%
Net interest income after provision for loan losses		11,866			11,249			5.5	%	9,075			30.8	%
Noninterest income:
Fees on Loans		53			347			-84.7	%	4			1,225.0	%
Service charges on deposit accounts		229			182			25.8	%	152			50.7	%
BOLI income		110			105			4.8	%	108			1.9	%
Other fee income		147			104			41.3	%	99			48.5	%
Total noninterest income		539			738			-27.0	%	363			48.5	%
Noninterest expense:
Salaries and employee benefits		4,245			3,938			7.8	%	3,324			27.7	%
Occupancy and equipment expense		873			827			5.6	%	580			50.5	%
Data processing and network administration		343			439			-21.9	%	272			26.1	%
State franchise taxes		426			422			0.9	%	296			43.9	%
Professional fees		274			130			110.8	%	132			107.6	%
Merger and acquisition expense		16			67			-76.1	%	397			100.0	%
Other operating expense		1,099			1,081			1.7	%	821			33.9	%
Total noninterest expense		7,276			6,904			5.4	%	5,822			25.0	%
Net income before income taxes		5,129			5,083			0.9	%	3,616			41.8	%
Income tax expense		1,044			1,157			-9.8	%	539			93.6	%
Net Income		$	4,085		$	3,926		4.0	%	$	3,077		32.8	%
Earnings per share - basic		$	0.30		$	0.29		3.5	%	$	0.28		6.0	%
Earnings per share - diluted		$	0.28		$	0.27		3.8	%	$	0.26		8.1	%
Weighted-average common shares outstanding - basic		13,802,712			13,724,232					11,023,775
Weighted-average common shares outstanding - diluted		14,817,462			14,779,955					12,063,423
Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP):
GAAP net income reported above		$	4,085		$	3,926				$	3,077
Add: Merger and acquisition expense above		16			67					397
Subtract: provision for income taxes associated with merger and acquisition expense		(4		)	(15		)			(83		)
Net Income, excluding above merger and acquisition charges		$	4,097		$	3,978				$	3,391
Earnings per share - basic (excluding merger and acquisition charges)		$	0.30		$	0.29				$	0.31
Earnings per share - diluted (excluding merger and acquisition charges)		$	0.28		$	0.27				$	0.28
Return on average assets (non-GAAP operating earnings)		1.13		%	1.17		%			1.24		%
Return on average equity (non-GAAP operating earnings)		9.81		%	9.86		%			13.23		%
Efficiency ratio (non-GAAP operating earnings)		56.24		%	54.69		%			55.82		%

 

 

FVCBankcorp, Inc.

Summary Consolidated Income Statements

(In thousands, except per share data)

(Unaudited)

 

		For the Six Months Ended
								% Change
								From
		6/30/2019			6/30/2018			Year Ago
Net interest income		$	24,135		$	18,119		33.2	%
Provision for loan losses		1,020			639			59.6	%
Net interest income after provision for loan losses		23,115			17,480			32.2	%
Noninterest income:
Fees on Loans		400			62			545.2	%
Service charges on deposit accounts		411			293			40.3	%
BOLI income		215			219			-1.8	%
Other fee income		251			174			44.3	%
Total noninterest income		1,277			748			70.7	%
Noninterest expense:
Salaries and employee benefits		8,183			6,509			25.7	%
Occupancy and equipment expense		1,700			1,152			47.6	%
Data processing and network administration		782			541			44.5	%
State franchise taxes		848			592			43.2	%
Professional fees		404			288			40.3	%
Merger and acquisition expense		83			397			100.0	%
Other operating expense		2,180			1,603			36.0	%
Total noninterest expense		14,180			11,082			28.0	%
Net income before income taxes		10,212			7,146			42.9	%
Income tax expense		2,201			1,072			105.4	%
Net Income		$	8,011		$	6,074		31.9	%
Earnings per share - basic		$	0.58		$	0.55		5.2	%
Earnings per share - diluted		$	0.54		$	0.50		7.8	%
Weighted-average common shares outstanding - basic		13,763,472			10,978,846
Weighted-average common shares outstanding - diluted		14,798,708			12,092,505
Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP):
GAAP net income reported above		$	8,011		$	6,074
Add: Merger and acquisition expense above		83			397
Subtract: provision for income taxes associated with merger and acquisition expense		(19		)	(83		)
Net Income, excluding above merger and acquisition charges		$	8,075		$	6,388
Earnings per share - basic (excluding merger and acquisition charges)		$	0.59		$	0.58
Earnings per share - diluted (excluding merger and acquisition charges)		$	0.55		$	0.53
Return on average assets (non-GAAP operating earnings)		1.15		%	1.19		%
Return on average equity (non-GAAP operating earnings)		9.84		%	12.64		%
Efficiency ratio (non-GAAP operating earnings)		55.47		%	56.63		%