FVCBankcorp, Inc. reports strong performance for the 2016 third quarter

For Immediate Release —

Fairfax, VA – FVCBankcorp, Inc. (OTCQX:FVCB) (the “Company”) reported unaudited consolidated earnings of $1.6 million for the third quarter of 2016, or $0.19 diluted earnings per share, an increase of $143 thousand, or 9.5%, compared with the 2015 third quarter net income of $1.5 million, or $0.18 diluted earnings per share. Net income was $5.2 million and $4.4 million for the nine months ended September 30, 2016, and 2015, respectively, an increase of $804 thousand, or 18.3%. Diluted earnings per share was $0.59 and $0.56 for the respective periods. Net income for the 2016 third quarter contains the first full quarter of the Company’s subordinated debt interest expense.

“We are gratified by our strong growth in loans and deposits as we enter into the fourth quarter of 2016,” stated David W. Pijor, chairman, president and CEO. “Our team of loan and deposit relationship managers continue to expand their reach and our quality bankers and technology enable us to continue to grow efficiently.”

Balance Sheet

Total assets increased to $837.0 million, compared with $682.1 million as of September 30, 2016, and 2015, respectively, an increase of $154.9 million, or 22.7%. Loans receivable totaled $687.7 million as of September 30, 2016, compared with $562.4 million as of September 30, 2015, an increase of $125.3 million, or 22.3%. For the quarter, loans increased $23.6 million, or 14.2% on an annualized basis.

Total deposits increased to $729.2 million as of September 30, 2016, compared with $596.2 million as of September 30, 2015, an increase of $133.0 million, or 22.3%. Noninterest-bearing deposits increased to $170.7 million from $121.3 million as of September 30, 2016, and 2015, respectively, an increase of $49.2 million, or 40.8%. Noninterest-bearing deposits comprised 23.4% and 20.3% of total deposits at September 30, 2016, and 2015, respectively. Wholesale deposits totaled $60.7 million as of September 30, 2016, compared with $52.5 million as of September 30, 2015, representing only 8.3% and 8.8% of total deposits for the respective periods. The increase in core deposits, and specifically, noninterest-bearing deposits, is primarily attributable to the Company’s relationship-banking strategy with our commercial, not-for-profit and municipal customers.

Tangible book value per share was $9.77 and $8.84 as of September 30, 2016, and 2015, respectively, an increase of $0.93, or 10.5% for the twelve month period.

Income Statement

Net interest income totaled $6.9 million, an increase of $1.1 million, or 18.6%, for the quarters ended September 30, 2016, and 2015, respectively. Net interest income increased 4.1% on an annualized basis compared with the second quarter of 2016 and includes a full quarter of the Company’s $25 million, 6% subordinated debt issued on June 20, 2016. The Company’s net interest margin was 3.47% and 3.63% for the quarters ended September 30, 2016, and 2015, respectively. On a linked quarter basis, the margin decreased to 3.47% from 3.57%, primarily due to the subordinated debt issuance noted above.

Noninterest expenses increased $355 thousand, or 9.5% to $4.1 million for the quarter ended September 30, 2016, compared with the quarter ended September 30, 2015. The efficiency ratio improved to 56.9%, compared with 61.5%, for the quarters ended September 30, 2016, and 2015, respectively.

The Company’s pre-provision net revenue increased $760 thousand to $3.1 million from $2.3 million, or 32.7% for the quarters ended September 30, 2016, and 2015, respectively. The improved performance is attributable to strong loan growth and continued operating efficiencies for the period.

Asset Quality

Asset quality remains sound as nonperforming assets and loans 90 days or more past due totaled only $73 thousand, or 0.01% of total assets. The Company recognized charge-offs totaling $1.0 million related to the disposition of three nonaccrual loans. The Company had specific reserves in excess of the amounts charged-off related to these loans and will diligently pursue further recoveries. FVCBank continues its credit discipline of monitoring the loan portfolio to identify issues early.

About FVCBankcorp Inc.

FVCbank commenced operations in November 2007 and is the wholly-owned subsidiary of FVCBankcorp, Inc. FVCbank is a $837 million Virginia chartered community bank serving small and mid-sized businesses and personal banking customers in the Washington D.C. Metropolitan and Northern Virginia area. Locally owned and managed, it is based in Fairfax, Virginia, and has four additional full-service offices in Arlington, Manassas, Reston and Springfield, Virginia. The Company expects to open its sixth branch office in Ashburn, Virginia in October 2016.

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.

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