FVCbank demonstrates strong momentum with solid financial performance in first quarter earnings

FAIRFAX, Va.--()--First Virginia Community Bank (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.

About First Virginia Community Bank

First Virginia Community Bank commenced operations in November 2007, and is a $604.8 million Virginia chartered community bank serving small and mid-sized businesses and personal banking customers in the D.C. metropolitan and Northern Virginia area. Locally owned and managed, it is based in Fairfax, Virginia, and has four additional full-service offices in Arlington, Manassas, Reston and Springfield, Virginia. Visit www.fvcbank.com for more information.

           
SELECTED FINANCIAL DATA
 
For the quarters ended March 31, For the years ended December 31,
(Unaudited)       (Unaudited)
(dollars in thousands, except per share data) 2015   2014       2014   2013
Selected Balances
Total assets $ 604,803 $ 527,887 $ 604,756 $ 506,717
Total deposits 531,965 459,470 504,220 429,990

Loans

525,084

419,989

509,938 411,040
Other borrowings 2,500 2,500 32,500 14,500
Allowance for loan losses (5,627 ) (4,826 ) (5,565 ) (4,792 )
Total shareholders’ equity 68,516 62,228 66,815 60,903
Summary Results of Operations
Interest income $ 6,317 $ 5,053 $ 22,473 $ 18,491
Interest expense 889 764 3,288 2,960
Net interest income 5,428 4,289 19,185 15,531
Provision for loan losses 63 34 886 803
Net interest income after provision for loan losses 5,365 4,255 18,299 14,728
Noninterest income 421 288 1,313 1,025
Noninterest expense 3,638 3,314 13,317 12,228
Income before taxes 2,148 1,229 6,295 3,525
Income tax expense 730 418 2,162 1,297
Net income 1,418 811 4,133 2,228
Per Share Data
Net income, basic $ 0.27 $ 0.16 $ 0.80 $ 0.49
Net income, diluted $ 0.27 $ 0.16 $ 0.79 $ 0.48
Book value $ 13.20 $ 12.02 $ 12.87 $ 11.76
Tangible Book value $ 13.17 $ 11.99 $ 12.84 $ 11.73
Shares outstanding 5,190,498 5,176,732 5,190,498 5,176,732
Significant Ratios
Net interest margin 3.76 % 3.53 % 3.63 % 3.59 %
Return on average assets 0.94 % 0.63 % 0.76 % 0.50 %
Return on average equity 8.33 % 5.23 % 6.45 % 4.21 %
Total capital (to risk weighted assets) 13.55 % 15.70 % 13.62 % 15.89 %
Tier 1 capital (to risk weighted assets) 12.52 % 14.54 % 12.53 % 14.71 %
Tier 1 (to average assets) 11.36 % 11.88 % 10.96 % 12.58 %
Asset Quality
Nonperforming assets and loans 90+ past due $ 1,742 $ 2,618 $ 1,601 $ 2,988
Nonperforming assets and loans 90+ past due to total assets 0.29 % 0.50 % 0.26 % 0.59 %
Allowance for loan losses to loans 1.07 % 1.15 % 1.09 % 1.17 %
Allowance for loan losses to nonperforming assets 322.95 % 184.34 % 347.51 % 160.37 %
Net (recovery) charge-offs $ - $ - $ 113 $ (231 )
Net (recovery) charge-offs to average loans 0.00 % 0.00 % 0.03 % -0.06 %
 

Contacts

First Virginia Community Bank
David W. Pijor, Chairman, President and Chief Executive Officer
703-436-3802
dpijor@fvcbank.com

Contacts

First Virginia Community Bank
David W. Pijor, Chairman, President and Chief Executive Officer
703-436-3802
dpijor@fvcbank.com