Community bank partners with regional nonprofit and aims to raise donations and awareness
For Immediate Release — April 23, 2015
Fairfax, VA- FVCbank (OTC:FVCB), the Virginia chartered community bank, continues its trend of record growth, marking the 21st consecutive profitable quarter since opening its doors in 2007. In the first quarter of 2015, FVCbank reported a 74.8% increase in net income, $1.4 million compared with $811 thousand for the first quarter of 2014. As a result of increased profitability in each of the last five quarters, FVCbank realized improved return on assets and return on equity.
“Following an exceptional year of growth in 2014, we are pleased with our consistently solid financial performance reflected in our first quarter earnings for 2015,” stated David Pijor, Chairman, President and Chief Executive Officer of FVCbank.
First Quarter Financial Highlights
As one of the 50 fastest-growing companies in the state of Virginia, FVCbank reported net income of $1.4 million for the first quarter of 2015, compared with $811 thousand for the first quarter of 2014, a 74.8% increase. Diluted earnings per share increased to $0.27 compared with $0.16 for the respective quarters. FVCbank reported improved return on assets and equity, with annualized return on average assets of 0.94%, while the annualized return on average equity was 8.33% for the quarter ending March 31, 2015.
Total first quarter assets grew to $604.8 million as of March 31, 2015, an increase of 14.6%, or $76.9 million, compared with $527.9 million in the first quarter of 2014. Gross loans totaled $525.1 million as of March 31, 2015, an increase of 25.0% or $105.9 million, compared with $420.0 million in the first quarter of 2014.
As of March 31, 2015, deposits totaled $532.0 million, an increase of 15.8%, or $72.5 million, compared with deposits of $459.5 million at the same time in 2014. On a linked-quarter basis, deposits increased $27.7 million, or 22.0% on an annualized basis, compared with $504.2 million at December 31, 2014. Noninterest-bearing demand deposits totaled $112.0 million as of March 31, 2015, an increase of 11.5% or $11.6 million compared with deposits of $100.4 million as of March 31, 2014. Noninterest-bearing deposits represent 21.1% of total deposits for the quarter ending March 31, 2015.
FVCbank’s net interest margin improved to 3.76% for the first quarter of 2015, compared with 3.53% for the first quarter of 2014 and 3.64% for the fourth quarter of 2014. The improved net interest margin in this flat interest rate environment reflects the Bank’s growth in earning assets, specifically commercial loans, funded primarily by core deposits.
Asset quality for the quarter remained pristine, as nonperforming assets and loans 90 days or more past due decreased to $1.7 million as of March 31, 2015, from $2.6 million at the same time last year. The ratio of nonperforming assets and loans 90 days or more past due to total assets improved to 0.29%, compared with 0.50% as of March 31, 2015 and 2014 respectively.
With a record of consistently exceeding “well capitalized” requirements for regulatory capital ratios, FVCbank remains committed to maintaining this classification as the balance sheet continues to grow.
Tangible book value per share has increased to $13.17 at March 31, 2015, compared with $11.99 at the same time last year, an increase of $1.18 per share. In an effort to show appreciation to the Bank’s shareholders, FVCbank announced last month a five-for-four stock split in the form of a 25% stock dividend. The stock dividend will be distributed to shareholders of record as of April 5, 2015, and is payable on or about April 30, 2015.
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 polices 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.