Market Overview

FVCBankcorp Inc. Accelerates Organic Growth and Reports Record 2nd Quarter Results

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FVCBankcorp Inc. (OTCQX:FVCB) (the "Company") today reported second
quarter 2018 earnings increased 45% from a year ago to $3.1 million, or
$0.26 diluted earnings per share, compared to $2.1 million, or $0.19
diluted earnings per share, for the quarterly period ended June 30,
2017. For the six months ended June 30, 2018, earnings were $6.1
million, or $0.50 per diluted share, compared to $4.5 million, or $0.40
per diluted share, for the comparable six month period of 2017.
Quarterly results include expenses of $397,000 which are associated with
the Company's upcoming acquisition of Colombo Bank. Excluding these
merger-related expenses, operating income for the three and six months
ended June 30, 2018 was $3.4 million and $6.4 million, respectively.
Diluted earnings per share excluding merger expenses for the three and
six months ended June 30, 2018 was $0.28 and $0.53, respectively.
Results for June 30, 2018 reflect the new lower federal statutory tax
rate.

Return on average assets was 1.13% and return on average equity was
12.00% for the second quarter of 2018. For the comparable June 30, 2017
period, return on average assets was 0.91% and return on average equity
was 10.05%. Excluding merger-related expenses, return on average assets
and return on average equity for the three months ended June 30, 2018
was 1.24% and 13.23%, respectively. For the six months ended June 30,
2018, return on average assets and return on average equity each
excluding merger-related expenses was 1.19% and 12.64%, respectively.

Selected Highlights

  • Total loans, net of deferred fees, increased $157 million, or 20%,
    from June 30, 2017 to June 30, 2018. Asset quality remains strong with
    nonperforming loans and loans past due 90 days or more as a percentage
    of total assets being 0.08% at June 30, 2018, compared to 0.30% at
    June 30, 2017.
  • Total deposits increased $152 million, or 18%, from June 30, 2017 to
    June 30, 2018. This growth was primarily driven by an increase in
    noninterest-bearing deposits of $112 million year-over-year.
  • Tangible book value per share at June 30, 2018 was $9.38, a 13%
    increase from $8.31 at June 30, 2017.
  • Net income, before taxes and merger-related expenses, increased 24%
    year-over-year.
  • Efficiency ratio for the three months ended June 30, 2018 was 59.9%,
    and excluding merger-related expenses, was 55.8%.

"The second quarter of 2018 reflects the best overall performance of the
Company since we opened our doors almost 11 years ago. Our strong
performance is attributable to the team we have assembled and their
continuous efforts to bring in new customers as well as providing
continued excellent service to our longstanding customers," stated David
W. Pijor, Chairman and CEO.

Balance Sheet

Total assets increased to $1.14 billion compared to $970.9 million as of
June 30, 2018 and 2017, respectively, an increase of $169 million, or
17%. Loans receivable, net of deferred fees, totaled $955.6 million as
of June 30, 2018, compared to $798.5 million as of June 30, 2017, a
year-over-year increase of $157 million, or 20%. For the second quarter
of 2018, loans receivable, net of deferred fees, increased $34 million,
or 15% on an annualized basis.

Total deposits increased to $1.01 billion as of June 30, 2018 compared
to $856.4 million as of June 30, 2017, an increase of $152 million, or
18%. Noninterest-bearing deposits increased 65% to $284.5 million at
June 30, 2018, or 28% of total deposits, compared to $172.6 million at
June 30, 2017. Core deposits, which include total deposits less
wholesale deposits, increased $169 million or 22% year-over-year.
Wholesale deposits totaled $77.3 million, or 8% of total deposits at
June 30, 2018, a decrease of $38 million from December 31, 2017 and a
decrease of $27 million from March 31, 2018. The Company's increase in
deposits is a result of several promotions in addition to continued
growth in core deposits.

Income Statement

Net interest income totaled $9.4 million, an increase of $1.5 million,
or 19%, for the quarter ended June 30, 2018, compared to the year ago
quarter. The Company's net interest margin was 3.50% and 3.47% for the
quarters ended June 30, 2018 and 2017, respectively. On a linked quarter
basis, the margin increased 11 basis points from 3.39% for the three
months ended March 31, 2018, a result of increases in yields on earning
assets and growth in noninterest-bearing deposits offset by modest
increases in the cost of deposits.

Noninterest income totaled $363 thousand and $358 thousand for the
quarters ended June 30, 2018 and 2017, respectively. Fee income from
fees on loans, service charges on deposits, and other fee income was
$255 thousand, an increase of 14% for the quarter ended June 30, 2018
compared to 2017. This increase in fee income is primarily due to
initiatives the Company began during 2017 to enhance fee income through
ancillary services designed to assist its clients' financial needs.

Noninterest expense totaled $5.8 million for the quarter ended June 30,
2018, compared to $4.8 million for the same three-month period of 2017.
On a linked quarter basis, noninterest expense excluding merger-related
expenses increased 3% from the three months ended March 31, 2018. The
increase in noninterest expense is primarily attributable to the Company
strategically hiring business development officers and back office staff
during 2017 to support the Company's growth plans. As a result, salary
and compensation related expenses increased $317 thousand, or 11%, for
the quarter ended June 30, 2018, compared to the same three-month period
of 2017. In addition, the Company recorded merger-related expenses of
$397 thousand for the three months ended June 30, 2018 which contributed
to the increase in noninterest expense for the quarter. Professional
fees increased slightly year-over-year as a result of implementation
costs related to regulatory compliance over the Company's internal
control environment. Increases in data processing and network
administration, franchise taxes and other operating expenses for the
quarter ended June 30, 2018 compared to the same three-month period of
2017 is primarily growth related. The efficiency ratio for the quarter
ended June 30, 2018 was 59.9%, an increase from 58.9% from the year ago
quarter, or 55.8% excluding merger-related expenses.

Asset Quality

Asset quality remains strong as nonperforming loans and loans ninety
days or more past due totaled $938 thousand, or 0.08% of total assets.
Troubled debt restructurings ("TDR") decreased to $1.6 million at June
30, 2018, compared to $4.7 million at June 30, 2017. Nonperforming
assets (including TDRs and other real estate owned) to total assets was
0.56% and 0.78% at June 30, 2018 and 2017, respectively. The allowance
for loan losses to total loans was 0.87% at June 30, 2018, reflecting
the Company's continued low level of problem loans and stable economic
environment.

About FVCBankcorp Inc.

Celebrating 10 years of sound financial performance and continued
growth, FVCbank commenced operations in November 2007 and is the
wholly-owned subsidiary of FVCBankcorp Inc. FVCbank is a $1.14 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 Washington,
D.C., metropolitan and Northern Virginia area. Locally owned and
managed, it is based in Fairfax, Virginia, and has six full-service
offices in Arlington, Ashburn, Fairfax, Manassas, Reston and
Springfield, Virginia. Visit www.fvcbank.com for
more information.

For more information on the Company's 2018 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, to statements about the
Company's plans, objectives, estimates, intentions and expectations as
to future trends, plans, events or results of the Company's operations
and policies and regarding general economic conditions. These
forward-looking statements are based on current beliefs that involve
significant risks, uncertainties, and assumptions. 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.

 
FVCBankcorp, Inc.
Selected Financial Data
(Dollars in thousands, except share data and per share data)
 
   

For the Three Months Ended,

For the Three Months Ended June 30,

  For the Six Months Ended June 30,

March 31,

 

December 31,

(Unaudited) (Unaudited) (Unaudited)
2018   2017 2018   2017 2018 2017
Selected Balances
Total assets $ 1,139,449 $ 970,896 $ 1,078,697 $ 1,053,224
Total investment securities 118,844 111,995 119,806 117,712
Total loans, net of deferred fees 955,641 798,510 921,231 888,677
Allowance for loan losses (8,298 ) (7,012 ) (8,102 ) (7,725 )
Total deposits 1,008,896 856,443 938,661 928,163
Subordinated debt 24,367 24,287 24,347 24,327
Other borrowings - - 4,100 12,500 - -
Total stockholders' equity 103,966 85,048 100,651 98,283
Summary Results of Operations
Interest income $ 12,070 $ 9,801 $ 23,411 $ 19,189 $ 11,341 $ 10,801
Interest expense 2,714 1,913 5,292 3,704 2,578 2,350
Net interest income 9,356 7,888 18,119 15,485 8,763 8,451
Provision for loan losses 281 165 639 515 358 435
Net interest income after provision for loan losses 9,075 7,723 17,480 14,970 8,405 8,016
Noninterest income - loan fees, service charges and other 255 224 529 407 275 252
Noninterest income - bank owned life insurance 108 111 219 625 110 114
Noninterest income - gains on securities sold - - 23 - - 119 - - 30

Noninterest income - gains on foreclosure of other real estate
owned

- - - - - - - - - - 1,076
Noninterest expense 5,822 4,844 11,082 9,561 5,260 4,925
Income before taxes 3,616 3,237 7,146 6,560 3,530 4,563
Income tax expense 539 1,117 1,072 2,110 533 3,558
Net income 3,077 2,120 6,074 4,450 2,997 1,005

Per Share Data (2)

Net income, basic $ 0.28 $ 0.21 $ 0.55 $ 0.44 $ 0.27 $ 0.09
Net income, diluted $ 0.26 $ 0.19 $ 0.50 $ 0.40 $ 0.25 $ 0.08
Book value $ 9.39 $ 8.32 $ 9.17 $ 9.04
Tangible Book value $ 9.38 $ 8.31 $ 9.16 $ 9.03
Shares outstanding 11,076,266 10,224,971 10,980,707 10,868,984
Selected Ratios

Net interest margin (3)

3.50 % 3.47 % 3.45 % 3.45 % 3.39 % 3.43

Return on average assets (3)

1.13 % 0.91 % 1.13 % 0.96 % 1.13 % 0.40

Return on average equity (3)

12.00 % 10.05 % 12.02 % 10.72 % 12.03 % 4.06

Efficiency (1)

59.90 % 58.91 % 58.74 % 57.89 % 57.50 % 55.86
Loans, net of deferred fees, to total deposits 94.72 % 93.24 % 98.14 % 95.75
Noninterest-bearing deposits to total deposits 28.19 % 20.15 % 19.11 % 18.90
Reconciliation of Net Income (GAAP) to Operating Earnings
(Non-GAAP)
Net income (from above) $ 3,077 $ 2,120 $ 6,074 $ 4,450 $ 2,997 $ 1,005
Add: Merger and acquisition expense 397 - - 397 - - - - - -
Subtract: provision for income taxes associated with merger and
acquisition expense
  (83 )   - -     (83 )   - -     - -     - -  
NET INCOME, excluding above merger and acquisition charges $ 3,391   $ 2,120   $ 6,388   $ 4,450   $ 2,997   $ 1,005  
Net income, diluted, on an operating basis $ 0.28 $ 0.19 $ 0.53 $ 0.40 $ 0.25 $ 0.08
Return on average assets (non-GAAP operating earnings) 1.24 % 0.91 % 1.19 % 0.96 % 1.13 % 0.40
Return on average equity (non-GAAP operating earnings) 13.23 % 10.05 % 12.64 % 10.72 % 12.03 % 4.06
Capital Ratios - Bank
Tangible common equity (to tangible assets) 9.12 % 8.75 % 9.32 % 9.33
Total capital (to risk weighted assets) 12.79 % 13.11 % 12.97 % 12.83
Common equity tier 1 capital (to risk weighted assets) 12.00 % 12.30 % 12.17 % 12.05
Tier 1 capital (to risk weighted assets) 12.00 % 12.30 % 12.17 % 12.05
Tier 1 leverage (to average assets) 11.58 % 11.50 % 11.62 % 11.79
Asset Quality
Nonperforming loans and loans 90+ past due 938 2,897 1,003 789
Performing troubled debt restructurings (TDRs) 1,600 4,723 1,624 1,657
Other real estate owned 3,866 - - 3,866 3,866
Nonperforming loans and loans 90+ past due to total assets (excl.
TDRs)
0.08 % 0.30 % 0.09 % 0.07
Nonperforming assets to total assets 0.42 % 0.30 % 0.45 % 0.44
Nonperforming assets (including TDRs) to total assets 0.56 % 0.78 % 0.60 % 0.60
Allowance for loan losses to loans 0.87 % 0.88 % 0.88 % 0.87
Allowance for loan losses to nonperforming loans 884.65 % 242.04 % 807.68 % 979.09
Net charge-offs (recovery) $ 85 $ (71 ) $ 66 $ (45 ) $ (19 ) $ (19 )

Net charge-offs (recovery) to average loans (3)

0.04 % (0.04 ) % 0.01 % (0.01 ) % (0.01 ) % (0.01 )
Selected Average Balances
Total assets $ 1,092,950 $ 936,590 $ 1,074,807 $ 922,496 $ 1,056,463 $ 1,013,070
Total earning assets 1,069,035 910,653 1,051,330 899,152 1,033,427 986,648
Total loans, net of deferred fees 930,133 791,732 912,025 778,422 893,716 851,123
Total deposits 958,304 793,504 940,066 788,672 921,625 878,482
Other Data
Noninterest-bearing deposits $ 284,452 $ 172,584 $ 179,406 $ 175,446
Interest-bearing checking, savings and money market 396,667 380,261 401,060 379,101
Time deposits 250,492 209,548 253,444 258,127
Wholesale deposits 77,285 94,050 104,751 115,489
 
 

(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)

All per share data calculations have been retroactively adjusted
for the five-for-four stock split declared September 2017.

(3)

Annualized.

 
 
FVCBankcorp, Inc.
Summary Consolidated Statements of Condition
(Dollars in thousands)
(Unaudited)
 
 
  % Change     % Change
Current From
  6/30/2018   3/31/2018 Quarter 12/31/2017   6/30/2017 Year Ago
 

Cash and due from banks

$ 6,309 $ 8,258 -23.6 % $ 7,428 $ 8,885 -29.0 %

Interest-bearing deposits at other financial institutions

30,734 3,898 688.5 % 15,139 29,072 5.7 %
Investment securities 118,844 119,806 -0.8 % 117,712 111,995 6.1 %
Restricted stock, at cost 3,800 4,225 -10.1 % 3,438 3,613 5.2 %
Loans, net of fees:
Commercial real estate 572,039 560,085 2.1 % 526,065 498,540 14.7 %
Commercial and industrial 110,359 94,228 17.1 % 98,150 87,304 26.4 %
Commercial construction 138,973 126,251 10.1 % 123,444 91,423 52.0 %
Consumer residential 106,747 110,404 -3.3 % 108,786 104,778 1.9 %
Consumer nonresidential     27,523     30,263   -9.1 %   32,232     16,465   67.2 %
Total loans, net of fees 955,641 921,231 3.7 % 888,677 798,510 19.7 %
Allowance for loan losses     (8,298 )   (8,102 ) 2.4 %   (7,725 )   (7,012 ) 18.3 %

Loans, net

947,343 913,129 3.7 % 880,952 791,498 19.7 %
 
Premises and equipment, net 1,401 1,349 3.9 % 1,236 1,378 1.7 %
Bank owned life insurance (BOLI) 16,187 16,079 0.7 % 15,969 15,739 2.8 %
Other real estate owned 3,866 3,866 0.0 % 3,866 - - 100.0 %
Other assets     10,965     8,087   35.6 %   7,484     8,716   25.8 %
 
Total Assets $   1,139,449   $ 1,078,697   5.6 % $ 1,053,224   $ 970,896   17.4 %
 
Deposits:

Noninterest-bearing

$ 284,452 $ 179,406 58.6 % $ 175,446 $ 172,584 64.8 %
Interest-bearing checking 222,522 201,950 10.2 % 185,528 236,471 -5.9 %
Savings and money market 174,145 199,110 -12.5 % 193,573 143,790 21.1 %
Time deposits 250,492 253,444 -1.2 % 258,127 209,548 19.5 %
Wholesale deposits     77,285     104,751   -26.2 %   115,489     94,050   -17.8 %
Total deposits 1,008,896 938,661 7.5 % 928,163 856,443 17.8 %
 
Other borrowed funds - - 12,500 -100.0 % - - 4,100 -100.0 %

Subordinated notes, net of issuance costs

24,367 24,347 0.1 % 24,327 24,287 0.3 %
Other liabilities 2,220 2,538 -12.5 % 2,451 1,018 118.1 %
 
Stockholders' equity     103,966     100,651   3.3 %   98,283     85,048   22.2 %
 
Total Liabilities & Stockholders' Equity $   1,139,449   $ 1,078,697   5.6 % $ 1,053,224   $ 970,896   17.4 %
 
 
FVCBankcorp, Inc.
Summary Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
 
 
For the Three Months Ended
    % Change     % Change
Current From
6/30/2018 3/31/2018 Quarter 6/30/2017 Year Ago
 
Net interest income $ 9,356 $ 8,763 6.8 % $ 7,888 18.6 %
Provision for loan losses   281     358 -21.5 %   165 70.3 %
Net interest income after provision for loan losses   9,075     8,405 8.0 %   7,723 17.5 %
 
Noninterest income:
Fees on Loans 4 58 -93.1 % 11 -63.6 %
Service charges on deposit accounts 152 141 7.8 % 140 8.6 %
Gains on sale of securities available-for-sale - - - - 0.0 % 23 -100.0 %
BOLI income 108 110 -1.8 % 111 -2.7 %
Other fee income   99     76 30.3 %   73 35.6 %
Total noninterest income   363     385 -5.7 %   358 1.4 %
 
Noninterest expense:
Salaries and employee benefits 3,324 3,185 4.4 % 3,007 10.5 %
Occupancy and equipment expense 580 571 1.6 % 539 7.6 %
Data processing and network administration 272 269 1.1 % 246 10.6 %
State franchise taxes 296 296 0.0 % 260 13.8 %
Professional fees 132 156 -15.4 % 111 18.9 %
Merger and acquisition expense 397 - - 100.0 % - - 100.0 %
Other operating expense   821     783 4.9 %   681 20.6 %

Total non-interest expense

  5,822     5,260 10.7 %   4,844 20.2 %
Net income before income taxes 3,616 3,530 2.4 % 3,237 11.7 %
Income tax expense   539     533 1.1 %   1,117 -51.7 %
Net Income $ 3,077   $ 2,997 2.7 % $ 2,120 45.1 %
 
Earnings per share - basic $ 0.28   $ 0.27 3.7 % $ 0.21 33.3 %
Earnings per share - diluted $ 0.26   $ 0.25 4.0 % $ 0.19 36.8 %
 

Reconciliation of Net Income (GAAP) to
Operating Earnings (Non-GAAP):

GAAP net income reported above $ 3,077
Add: Merger and acquisition expense above 397
Subtract: provision for income taxes associated with merger and
acquisition expense
  (83 )
NET INCOME, excluding above merger and acquisition charges $ 3,391  
Earnings per share - basic (excluding merger and acquisition charges) $ 0.31  
Earnings per share - diluted (excluding merger and acquisition
charges)
$ 0.28  
 
Return on average assets (non-GAAP operating earnings) 1.24 %
Return on average equity (non-GAAP operating earnings) 13.23 %
 
FVCBankcorp, Inc.
Summary Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
 
 
  For the Six Months Ended
    % Change
From
6/30/2018 6/30/2017 Year Ago
 
Net interest income $ 18,119 $ 15,485 17.0 %
Provision for loan losses   639   515 24.1 %
Net interest income after provision for loan losses   17,480   14,970 16.8 %
 
Noninterest income:
Fees on Loans 62 27 129.6 %
Service charges on deposit accounts 293 256 14.5 %
Gains on sale of securities available-for-sale - - 119 -100.0 %
BOLI income 219 625 -65.0 %
Other fee income   174   124 40.3 %
Total noninterest income   748   1,151 -35.0 %
 
Noninterest expense:
Salaries and employee benefits 6,509 5,848 11.3 %
Occupancy and equipment expense 1,152 1,113 3.5 %
Data processing and network administration 541 471 14.9 %
State franchise taxes 592 536 10.4 %
Professional fees 288 229 25.8 %
Merger and acquisition expense 397 - - 100.0 %
Other operating expense   1,603   1,364 17.5 %
Total non-interest expense   11,082   9,561 15.9 %
Net income before income taxes 7,146 6,560 8.9 %
Income tax expense   1,072   2,110 -49.2 %
Net income $ 6,074 $ 4,450 36.5 %
 
Earnings per share - basic $ 0.55 $ 0.44 25.0 %
Earnings per share - diluted $ 0.50 $ 0.40 25.0 %
 

Reconciliation of Net Income (GAAP) to
Operating Earnings (Non-GAAP):

GAAP net income reported above $ 6,074
Add: Merger and acquisition expense above 397
Subtract: provision for income taxes associated with merger and
acquisition expense
  (83)
NET INCOME, excluding above merger and acquisition charges $ 6,388
Earnings per share - basic (excluding merger and acquisition charges) $ 0.58
Earnings per share - diluted (excluding merger and acquisition
charges)
$ 0.53
 
Return on average assets (non-GAAP operating earnings) 1.19%
Return on average equity (non-GAAP operating earnings) 12.64%
 
 
FVCBankcorp, Inc.
Average Statements of Condition and Yields on Earning Assets and
Interest-Bearing Liabilities
(Dollars in thousands)
(Unaudited)
           
 
For the Three Months Ended
6/30/2018 3/31/2018 6/30/2017
Average Average Average Average Average Average
Balance Yield Balance Yield Balance Yield
Interest-earning assets:

Loans receivable, net of fees (1)

Commercial real estate $ 564,251 4.59 % $ 538,334 4.63 % $ 487,250 4.64 %
Commercial and industrial 105,175 5.65 % 94,596 5.17 % 88,854 4.98 %
Commercial construction 123,262 5.32 % 122,182 4.85 % 92,778 4.70 %
Consumer residential 108,451 4.51 % 108,815 4.31 % 105,681 4.22 %
Consumer nonresidential   28,994   6.40 %   29,789   6.22 %   17,169   3.87 %
Total loans 930,133 4.86 % 893,716 4.73 % 791,732 4.61 %
 

Investment securities (2)(3)

123,488 2.43 % 122,860 2.37 % 113,721 2.36 %

Interest-bearing deposits at other financial institutions

  15,414   0.83 %   16,851   1.09 %   5,200   0.91 %
Total interest-earning assets 1,069,035 4.52 % 1,033,427 4.39 % 910,653 4.31 %
 
Non-interest earning assets:
Cash and due from banks 2,348 2,532 7,306
Premises and equipment, net 1,394 1,229 1,455

Accrued interest and other assets

28,361 27,102 24,037
Allowance for loan losses   (8,188 )   (7,827 )   (6,861 )
 
Total Assets $ 1,092,950   $ 1,056,463   $ 936,590  
 
Interest-bearing liabilities:
Interest checking $ 195,130 1.00 % $ 187,251 0.87 % $ 223,563 0.78 %
Savings and money market 194,327 1.03 % 188,911 0.96 % 137,845 0.63 %
Time deposits 249,664 1.47 % 263,736 1.40 % 190,984 1.26 %
Wholesale deposits   91,028   1.70 %   107,265   1.47 %   73,970   0.94 %
Total interest-bearing deposits 730,149 1.26 % 747,163 1.17 % 626,362 0.91 %
 
Other borrowed funds 6,627 2.00 % 8,327 1.75 % 32,447 1.20 %

Subordinated notes, net of issuance costs

  24,354   6.51 %   24,334   6.58 %   24,274   6.53 %
Total interest-bearing liabilities 761,130 1.43 % 779,824 1.34 % 683,083 1.12 %
 
Noninterest-bearing liabilities:
Noninterest-bearing deposits 228,155 174,462 167,142
Other liabilities 1,132 2,519 1,967
 
Stockholders' equity   102,533     99,658     84,398  
 
Total Liabilities and Stockholders' Equity $ 1,092,950   $ 1,056,463   $ 936,590  
 

Net Interest Margin (2)

3.50 % 3.39 % 3.47 %
 
 

(1)

Non-accrual loans are included in average balances.

(2)

The average yields for investment securities are reported on a
fully taxable-equivalent basis at a rate of 21% for 2018 and 34.5%
for 2017.

(3)

The average balances for investment securities includes restricted
stock.

 
       
FVCBankcorp, Inc.
Average Statements of Condition and Yields on Earning Assets and
Interest-Bearing Liabilities
(Dollars in thousands)
(Unaudited)
 
 
For the Six Months Ended
6/30/2018 6/30/2017
Average Average Average Average
Balance Yield Balance Yield
Interest-earning assets:

Loans receivable, net of fees (1)

Commercial real estate $ 551,364 4.61 % $ 482,895 4.61 %
Commercial and industrial 99,915 5.42 % 95,285 4.77 %
Commercial construction 122,725 5.08 % 76,268 5.04 %
Consumer residential 108,632 4.41 % 105,902 4.11 %
Consumer nonresidential   29,389   6.31 %   18,072   3.76 %
Total loans 912,025 4.79 % 778,422 4.58 %
 

Investment securities (2)(3)

123,176 2.40 % 114,725 2.36 %

Interest-bearing deposits at other financial institutions

  16,129   0.96 %   6,005   0.87 %
Total interest-earning assets 1,051,330 4.46 % 899,152 4.27 %
 
Non-interest earning assets:
Cash and due from banks 2,440 6,942
Premises and equipment, net 1,312 1,454

Accrued interest and other assets

27,734 21,654
Allowance for loan losses   (8,009 )   (6,706 )
 
Total Assets $ 1,074,807   $ 922,496  
 
Interest-bearing liabilities:
Interest checking $ 191,212 0.94 % $ 214,194 0.78 %
Savings and money market 191,634 0.99 % 155,678 0.63 %
Time deposits 256,661 1.43 % 186,339 1.25 %
Wholesale deposits   99,102   1.57 %   69,185   0.92 %
Total interest-bearing deposits 738,609 1.21 % 625,396 0.90 %
 
Other borrowed funds 7,472 1.84 % 24,574 1.08 %

Subordinated notes, net of issuance costs

  24,344   6.54 %   24,265   6.57 %
Total interest-bearing liabilities 770,425 1.39 % 674,235 1.11 %
 
Noninterest-bearing liabilities:
Noninterest-bearing deposits 201,457 163,276
Other liabilities 1,821 1,987
 
Stockholders' equity   101,104     82,998  
 
Total Liabilities and Stockholders' Equity $ 1,074,807   $ 922,496  
 

Net Interest Margin (2)

3.45 % 3.45 %
 
 

(1)

Non-accrual loans are included in average balances.

(2)

The average yields for investment securities are reported on a
fully taxable-equivalent basis at a rate of 21% for 2018 and 34.5%
for 2017.

(3)

The average balances for investment securities includes restricted
stock.

 

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