FVCBank Announces First Quarter 2025 Earnings; Fifth Consecutive Quarter of Improved Profitability and Margin
FAIRFAX, Va.–(BUSINESS WIRE)– FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported its financial results for the first quarter of 2025.
First Quarter Selected Financial Highlights
- Net Income Increased 5% Compared to the Prior Quarter. Net income totaled $5.2 million, or $0.28 diluted earnings per share, for the quarter ended March 31, 2025, compared to net income of $4.9 million, or $0.26 diluted earnings per share, for the quarter ended December 31, 2024. Return on average assets for the quarter ended March 31, 2025 was 0.94%, an increase from 0.90% for the quarter ended December 31, 2024.
- Net Interest Margin Up 15% and Net Interest Income Improved 18%, Compared to the Year Ago Quarter.For the quarter ended March 31, 2025, net interest margin improved 6 basis points to 2.83% from 2.77% for the three months ended December 31, 2024, the fifth consecutive quarter of margin improvement, and increased 36 basis points, or 15%, compared to 2.47% for the first quarter of 2024. Net interest income increased $2.3 million, or 18%, to $15.1 million for the first quarter of 2025, compared to $12.8 million for the year ago quarter ended March 31, 2024.
- Strong Credit Quality. Loans past due 30 days or more totaled $1.3 million at March 31, 2025, a decrease of $7.2 million, or 84%, from $8.4 million at December 31, 2024. Past due loans at March 31, 2025 were primarily consumer real estate secured. Nonperforming loans at March 31, 2025 decreased to $10.7 million, or 16%, from $12.8 million at December 31, 2024. Nonperforming loans to total assets decreased to 0.48% at March 31, 2025 from 0.58% at December 31, 2024. The Company recorded net recoveries of $139 thousand, or 0.03% to average loans, for the quarter ended March 31, 2025.
- Sound, Well Capitalized Balance Sheet.All of FVCbank’s (the “Bank”) regulatory capital components and ratios were in excess of thresholds required to be considered “well capitalized”, with total risk-based capital to risk-weighted assets of 15.07% at March 31, 2025, compared to 14.73% at December 31, 2024. The tangible common equity (“TCE”) to tangible assets (“TA”) ratio for the Bank increased to 10.98% at March 31, 2025, from 10.87% at December 31, 2024. The Bank’s investment securities are classified as available-for-sale, and therefore the unrealized losses on these securities are fully reflected in the TCE/TA ratio.
For the three months ended March 31, 2025, the Company recorded net income of $5.2 million, or $0.28 diluted earnings per share, compared to net income of $1.3 million, or $0.07 diluted earnings per share, for the quarter ended March 31, 2024. During the first quarter of 2024, the provision for income taxes included $2.4 million related to the loss of the tax favored status of prior appreciation and related tax penalties associated with the Company’s surrendered $48.0 million in bank-owned life insurance (“BOLI”) policies.
Commercial bank operating earnings (non-GAAP) exclude the above noted tax provision recorded for the BOLI surrender during 2024. Excluding this nonrecurring item, commercial bank operating earnings for the quarters ended March 31, 2025 and 2024 were $5.2 million and $3.7 million, respectively, an increase of $1.4 million, or 39%. Diluted commercial bank operating earnings per share (non-GAAP) for the three months ended March 31, 2025 and 2024 were $0.28 and $0.20, respectively.
The Company considers commercial bank operating earnings a useful comparative financial measure of the Company’s operating performance over multiple periods. Commercial bank operating earnings are determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). A reconciliation of non-GAAP financial measures to their most comparable financial measure in accordance with GAAP can be found in the tables below.
