FAIRFAX, Va. - First Virginia Community Bank (OBB:FRCV), the only financial institution to be named one of the 50 fastest-growing companies in the state of Virginia, today reported accelerated growth in earnings and assets for the first half of the year. For the first six months of 2014, earnings totaled $1,805,221, an increase of 82.9%, or $818,446, compared with the first six months of 2013.
“We are very pleased with our performance during the first half of 2014. We continue to grow our loan portfolio with quality loans as evidenced by our improved asset quality ratios. Further, our improved profitability has contributed to a higher earnings per share and book value per share for our shareholders,” stated David Pijor, Chairman, President and Chief Executive Officer of FVCbank.
Mid-Year Financial Highlights
For the first six months of 2014, FVCbank experienced an 82.9% increase over the same timeframe for 2013, with reported earnings of $1,805,221. Diluted earnings per share improved to $0.35 from $0.22 for the respective periods. For the second quarter of 2014, net income totaled $993,750 compared with $358,397 for the second quarter 2013. Diluted earnings per share improved to $0.19 from $0.08 for the two respective quarters. Both loan growth funded by low-cost deposits and improved efficiencies for FVCbank contributed to these improved earnings.
Total assets grew to $534.575 million as of June 30, 2014, an increase of 17.2%, or $78.432 million, compared with $456.143 million at June 30, 2013. Gross loans totaled $437.740 million as of June 30, 2014, compared with $347.363 million as of June 30, 2013, representing an increase of $90.377 million, or 26.0% for the 12-month period. This solid growth is attributable to the Bank’s commercial lending team, including five new relationship managers over the recent 12-month period. Significantly, asset quality improved as the ratio of non-performing assets and loans 90-days or more past due to total assets declined to 0.43% at June 30, 2014 from 1.10% at June 30, 2013.
Deposits totaled $466.649 million at June 30, 2014. Compared to the previous year, growth in deposits represented an increase of 18.7%, or $73.657 million, over deposits of $392.992 million at June 30, 2013. Noninterest-bearing deposits continued to increase, totaling $101.943 million at June 30, 2014, representing 21.8% of total deposits.
FVCbank’s net interest income increased by $1.508 million, or 20.5% for the first six months of 2014, totaling $8.882 million, compared with $7.374 million for the same period of 2013. The net interest margin declined slightly from 3.60% to 3.56% for the same respective periods. The improved net interest income is due to solid loan growth funded by deposits and excess funds from the capital raised in 2013. The margin compression results from loan originations during this historically low interest rate environment.
Noninterest expense increased slightly from $6.547 million for the first six months of 2014 by 7.08%, or $433 thousand, from $6.114 million for the six months ended June 30, 2013 as FVCbank continues to leverage balance sheet growth and improve efficiencies.
At June 30, 2014, FVCbank’s capital ratios were 11.63%, 14.37% and 15.50% for tier 1 capital to average assets, tier 1 capital to risk weighted assets, and total capital to risk weighted assets, respectively. The Bank continues to maintain ratios that exceed regulatory well-capitalized standards. FVCbank is committed to exceeding these standards as we continue to grow and further leverage our balance sheet.
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 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.