Ending 2014 with improved assets and stellar loan growth
For Immediate Release — October 17, 2014
Fairfax, VA — FVCbank (OBB:FRCV) the Virginia chartered community bank serving small and mid-sized businesses and personal banking customers, reported today net income of $1.1 million for the third quarter, representing a 108.4% increase over last year’s third quarter net income and a 10.1% increase over the second quarter’s net income. Year-to-date net income was $2.9 million or 91.9% higher than the $1.5 million earned for the nine months ended September 30, 2013. Strong loan growth funded by low-cost deposits coupled with stable operating expenses contributed to the improved earnings.
“With our consistently accelerated income growth and stable operating expenses, FVCbank continues to strengthen performance and realize institutional goals,” stated David Pijor, Chairman, President and Chief Executive Officer of FVCbank. “It is the dedication of our talented team that allows us to realize operational efficiencies as we grow our balance sheet, ultimately contributing to the success of our clients and shareholders.”
FVCbank completed the third quarter with $571.7 million in total assets, $475.1 million in total loans and $487.0 million in total deposits. Loans have grown approximately $100 million or 26.6% since September 30, 2013 and $37.3 million or 8.5% in the third quarter. Deposits have grown $77.0 million or 18.8% since September 30, 2013 and $20.3 million or 4.4% in the third quarter. The loan to deposit ratio increased to 97.6% as we have deployed excess liquidity to fund loans.
FVCbank’s net interest margin improved to 3.71% for the third quarter compared with 3.49% for the third quarter of last year and 3.63% on a linked quarter basis. Average non-interest bearing deposits comprised 21.0% of average deposits and interest checking, money market and savings accounts comprised 42.0% of average deposits during the third quarter. The level of low-cost deposits combined with growth in loans as a percentage of earning assets has contributed to the improved margin.
Noninterest expense was flat at $3.2 million on a linked quarter basis and increased only $519 thousand or 5.6% for the nine months ended September 30, 2014, compared with the same 2013 period. FVCbank continues to realize efficiencies as we grow our balance sheet without significant increases in our expense structure and make refinements to improve our operations and streamline processes.
Our credit quality remains very strong. We have realized net recoveries totaling $128 thousand over the last five quarters. Our nonperforming loans and loans 90 days or more past due totaled $1.5 million and represent only 0.27% of total assets. We are committed to maintaining solid credit quality as we grow the loan portfolio and extend our footprint.
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.