Fairfax, Va. – First Virginia Community Bank (OBB: FRCV), one of the fastest-growing companies in Virginia, announced today that its 2013 end-of-year earnings and assets increased, across the board.
“This year has been another great year for FVCbank,” said David Pijor, President and CEO of FVCbank. “FVCbank is well positioned to grow in 2014, with the recent addition of our Springfield branch and some key personnel we hired to enhance our loan production and deposit growth. We have built a strong infrastructure, and we are continuously making improvements to respond to our changing and vibrant market.”
End-of-Year Financial Summary
For the 2013 year, FVCBank earned a net profit of $2.2 million, or $0.48 diluted earnings per share compared with $1.5 million, or $0.43 for 2012, an increase of $749,918 or 50.7%. The improved earnings were primarily attributable to loan growth, which was funded by the bank’s growing customer deposit base.
Total assets as of December 31, 2013 were $506.7 million, an increase of $83.9 million, or 19.8% compared with $422.8 million as of December 31, 2012. Total loans increased to $411.0 million, or $79.6 million, or 24.0% for the same period. FVCbank recorded strong loan growth, despite the historically high loan prepayments during the year. The bank also reduced its level of nonperforming loans (including loans 90 days or more past due) as a percentage of total assets to 0.59% from 1.09% as of December 31, 2013 and 2012, respectively.
Year over year, deposits increased to $430.0 million compared with $378.7 million, an increase of $51.3 million or 13.5%. Noninterest-bearing deposits increased to $86.4 million from $68.9 million, an increase of $17.5 million or 25.4%. Noninterest-bearing deposits represent approximately 20% of total deposits, reflecting FVCbank’s commitment to grow through relationship banking. Noninterest-bearing deposits are largely comprised of commercial customers who use FVCbank’s suite of cash management services and have loans with the financial institution.
FVCbank’s net interest margin declined to 3.59%, compared with 4.09% for the years ended December 31, 2013 and 2012, respectively. The decline in yield is attributable to excess liquidity resulting from the capital raise, as well as historically high prepayments on mortgage loans due to the lower interest rate environment during the year.
FVCbank’s Forward-Looking Statement
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 FVCbank’s plans, objectives, estimates, intentions and expectations as to future trends, plans, events or results of FVCbank’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 future 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. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the offering circular, as amended and supplemented.