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For Immediate Release — July 20, 2015
FAIRFAX, Va. — FVCbank (OTCQX:FVCB), the only financial institution to be named one of the 50 fastest-growing companies in Virginia for a second year, continues to accelerate smart growth, as evidenced by its solid, consistent increase in earnings and assets for the first half of the year. For the first six months of 2015, net income totaled $2.9 million, an increase of 60.3%, or $1.8 million, compared with the first six months of 2014.
“With a strong commitment of dedicated service to our shareholders, customers and the community, we are excited about the future of FVCbank with continued growth and high performance across all areas of our financial institution during the first half of 2015,” stated David Pijor, chairman, president and CEO of FVCbank. “We are extremely grateful for the efforts and high-level experience of our dedicated employees, as we continue to leverage our infrastructure and use technological advances to improve process efficiencies for our shareholders.”
Mid-Year Financial Highlights
For the first six months of 2015, FVCbank experienced a 60.3% increase over the same timeframe for 2014, with reported earnings of $2.9 million. Diluted earnings per share improved to $0.46 and $0.34 for the six months ending June 30, 2015 and June 30, 2014, respectively; while the number of shares outstanding increased by 25% as a result of the Bank’s payment of a stock dividend on April 30, 2015. For the second quarter of 2015, net income totaled $1.5 million compared with $944 thousand for the second quarter of 2014. Strong earnings generated an increased return on average assets of 0.95% for the quarter and six months ending June 30, 2015.
Total assets grew to $663.6 million as of June 30, 2015, an increase of 24.1%, or $129.0 million, compared with $534.6 million at June 30, 2014. Gross loans totaled $560.0 million as of June 30, 2015, compared with $437.7 million as of June 30, 2014, representing an increase of $122.3 million, or 27.9% for the six month period. The recruitment and retention of the experienced commercial lending team, coupled with the vibrant market area, remains the critical factor for the accelerated loan growth. Additionally, asset quality improved, as the ratio of non-performing assets and loans 90-days or more past due to total assets declined to $1.5 million at June 30, 2015, representing only 0.22% of total assets.
Deposits totaled $588.1 million at June 30, 2015. Compared to the previous year, growth in deposits represented an increase of 26.0%, or $121.4 million, over deposits of $466.6 million at June 30, 2014. As a direct result of growth experienced in core deposit relationships, including a new relationship with a local municipality, deposits increased $56.1 million on a linked-quarter basis, with an increase of 42.2%, compared with the first quarter of 2015. Noninterest-bearing deposits continued to increase, totaling $132.5 million at June 30, 2015, an annualized increase of 30.0%, or $30.6 million, representing 22.5% of total deposits.
FVCbank’s net interest margin improved to 3.77% for the second quarter of 2015, compared with 3.61% and 3.76%, respectively, in the second quarter of 2014 and the first quarter of 2015. The improved net interest income is due to solid loan growth, as well as a stable cost of funds due to maintaining a high level of noninterest-bearing deposits. The Bank’s efficiency ratio improved to 60.63% for the second quarter of 2015, through efforts of FVCbank’s staff and the implementation of advanced technology.
As a result of the 5 for 4 stock split in the form of a 25% stock dividend distributed at the end of April 2015, FVCbank saw a reduction in tangible book value per share from $13.20 as of March 30, 2015, to $10.74 as of June 30, 2015. In an effort to increase awareness and accessibility for shareholder development, in May 2015, the Bank began trading on the OTCQX for Banks, a listing formed to enable established, well managed U.S. regional and community banks to trade on a public market. The Bank shares now trade under the new ticker symbol, FVCB.
During the FVCbank annual meeting held in June, shareholders approved the Agreement and Plan of Share Exchange. The Plan allows each share of common stock of the Bank to be exchanged for one share of common stock of FVCBankCorp, Inc., the Bank’s proposed holding company, pending regulatory approval. With a continued focus on providing added value, FVCbank strives to provide responsive banking services and products for its shareholders.
For more information on FVCbank’s 2015 second quarter earnings selected financial information, please visit FVCbank’s website on the Investor Relations page .
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.