Ending 2014 with improved assets and stellar loan growth
For Immediate Release — February 19, 2015
FVCbank (OTCBB: FRCV), one of the 50 fastest-growing companies in the state of Virginia, continues to live up to their reputation today reporting that the Bank ended 2014 with its strongest financial performance in its seven-year history. Record earnings and record loan growth were reported, including a net income increase to $4.1 million, a $1.9 million increase, or 85.5% compared with $2.2 million in 2013.
“We are very pleased with our performance and strong results for 2014. Our robust loan growth is a result of our dedicated team of experienced bankers, our directors and the long-term relationships with our shareholders and customers,” stated David Pijor, Chairman, President and Chief Executive Officer of FVCbank. “We have the benefit of doing business in this vibrant market, and our market presence has increased as a result.”
Year-End Financial Highlights
For the 2014 year, FVCbank experienced a net profit of $4.1 million, an 85.5% increase over the same timeframe for 2013. Diluted earnings per share improved to $0.79 from $0.48 for the respective periods, demonstrating the Bank’s ongoing commitment to enhance shareholder value.
Total assets grew to $604.8 million as of December 31, 2014, an increase of 19.3%, or $98.1 million, compared with $506.7 million in 2013. Gross loans totaled $509.9 million as of December 31, 2014, compared with $411.0 million in 2013, representing an increase of $98.9 million, or 24.1% for the 12-month period. This solid performance in earnings is attributable to the Bank’s exceptional loan growth during the year, as well as recruiting and maintaining top-talent in the industry.
Deposits totaled $504.2 million as of December 31, 2014. Compared to the previous year, growth in deposits represented an increase of 17.3%, or $74.2 million, over deposits of $430.0 million in 2013. Non-interest bearing deposits continued to increase, totaling $105.1 million as of December 31, 2014, compared with $86.4 million in 2013. Average non-interest bearing deposits comprised 21.3% of total average deposits for 2014, compared with 20.8% for 2013. The increase in non-interest bearing deposits is due to the Bank’s growing customer base and robust cash management services available to commercial banking customers.
FVCbank’s net interest income increased by 23.5% year over year, as margin improved to 3.63% compared with 3.59% for the years ended December 31, 2014 and 2013, respectively. The improved margin is the result of a declining cost of funds combined with a higher proportion of loans to earning assets. Cost of funds decreased to 0.69% from 0.75% for 2014 and 2013, respectively.
Non-interest expense increased slightly to $13.3 million in 2014, an 8.9% increase, from $12.2 million in 2013. The increase is attributed to the July 2013 expansion and now a full year of the Bank’s newest branch location in Springfield, Virginia.
For the 2014 year, FVCbank’s capital ratios were maintained as the Bank continued to grow, with ratio of nonperforming loans to total assets declining to 0.26%, an improvement over 2013’s ratio of 0.59%. The Bank continues to operate in excess of the “Well Capitalized” classification for regulatory reporting purposes.
“As we begin 2015, we are excited about our loan growth and new initiatives to enhance our full array of commercial banking products to best serve our customers,” added Pijor.
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.