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For Immediate Release — October 29, 2015
Fairfax, VA- FVCbank (OTC:FVCB) announces continued growth through an increase in assets and earnings for the third quarter of 2015. FVCbank reported its net income rose to $4.4 million for the first nine months of this year compared to the same period in 2014. In addition, diluted earnings per share rose 51.4%, an increase of $1.5 million, for the nine-month period compared with same timeframe for 2014.
As part of FVCbank’s growth trend in the third quarter, the Bank announced its newly formed holding company, FVCBankcorp, becomes effective October 30, 2015. Approved at the annual meeting held in June 2015, the Agreement and Plan of Share Exchange now allows each share of the Bank’s common stock to be exchanged for one share of the new holding company’s stock. Shareholders will receive more information about exchanging shares in the coming weeks.
“The establishment of the new holding company for FVCbank illustrates our commitment to enhance shareholder value,” stated David Pijor, chairman, president and CEO of FVCbank. “With strategic change, comes new opportunity and innovative ways with which we may serve our partners. Building solid relationships with shareholders by understanding and exceeding their needs remains our highest priority.”
Third Quarter Financial Highlights
For the first nine months of 2015, FVCbank reported net income of $4.4 million, resulting in $0.70 diluted earnings per share, an increase of $1.5 million, or 51.4%, compared to the same period in the prior year. The earnings per share increase occurred even as the number of shares outstanding increased by 25% from the Bank’s payment of a stock dividend on April 30, 2015. Return on average assets improved to 0.94% for the nine-month period in 2015, from 0.73% in the prior year period; return on average equity improved to 8.42% from 6.10% for the respective periods, as the Bank continues to leverage its equity through loan growth funded by deposits and improved profitability.
For the third quarter of 2015, net income was $1.5 million, or $0.22 diluted earnings per share, an increase of $403 thousand, or 36.8%, from $1.1 million for the 2014 third quarter – the 10 th consecutive quarter of improved net income. Return on average assets increased to 0.92% for the third quarter, compared to 0.80% for the same period in 2014.
Net interest margin for the first nine months of 2015 increased to 3.72% from 3.61% when compared to the same period in 2014. Net interest income increased $3.0 million, or 21.6%, for the nine months ended September 30, 2015, compared with the same period in the prior year. The margin decreased to 3.63% for the three months ended September 30, 2015 from 3.71% for the three months ended June 30, 2015.
As of September 30, 2015, total assets grew to $682.1 million, an increase of 19.3%, or $110.4 million, compared with $571.7 million at September 30, 2014. Gross loans totaled $562.4 million at September 30, 2015, an increase of 18.4%, or $87.3 million, compared with $475.1 million at September 30, 2014. While loan originations for the most recent quarter totaled $63.5 million, net loan growth for the third quarter was nominal due to pay downs on commercial revolving lines and new loans not yet funded. Asset quality for the quarter remained strong, as nonperforming assets and loans 90 days or more past due represents 0.51% of total assets. Tangible book value per common share increased to $11.05 as of September 30, 2015, compared with $10.72 as of June 30, 2015.
Deposits totaled $596.2 million at September 30, 2015, an increase of 22.4%, or $109.3 million, compared with deposits of $487.0 million at September 30, 2014. Noninterest-bearing demand deposits totaled $121.3 million at September 30, 2015, an increase of 15.1%, or $15.9 million, compared with $105.4 million as of September 30, 2014. Noninterest-bearing deposits represent 20.3% of total deposits as of September 30, 2015.
FVCbank continues to emphasize the Bank’s cash management products and high-touch customer service approach to earn new relationships and grow core customer deposits. For more information on FVCbank’s 2015 third quarter earnings selected financial information, please visit the Investor Relations page of FVCbank’s website or the report via http://fvcbankstaging.321staging.com/wp-content/uploads/assets/uploads/files/FVCb_3QFinancials_102915.pdf
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.