Group 1 - The article emphasizes the potential for significant investment opportunities in stocks that are less followed by analysts and have lower trading volumes, suggesting that these stocks may not accurately reflect their market potential [1] - The author believes that the best profit opportunities arise from stocks that are not widely covered by the average investor, indicating a belief in market inefficiencies for these lesser-known stocks [1] Group 2 - The author has over 20 years of experience in the financial sector, which includes roles as an advisor, teacher, and writer, highlighting a strong background in financial analysis [1] - The article reflects a belief in the efficiency of financial markets, asserting that most stocks generally represent their true current value [1]

Core Insights - FVCBankcorp (FVCB) reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and up from $0.23 per share a year ago, representing an earnings surprise of +7.14% [1] - The company posted revenues of $16.61 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.64%, and an increase from $14.54 million year-over-year [2] - FVCBankcorp has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $16.63 million, and for the current fiscal year, it is $1.15 on revenues of $65.37 million [7] - The estimate revisions trend for FVCBankcorp was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Southeast industry, to which FVCBankcorp belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Executive Summary](index=1&type=section&id=Executive%20Summary) FVCBankcorp's Q2 2025 showed strong earnings growth, robust financial health, and strategic operational enhancements [Second Quarter Selected Financial Highlights](index=1&type=section&id=Second%20Quarter%20Selected%20Financial%20Highlights) FVCBankcorp's Q2 2025 marked its sixth consecutive quarter of improved earnings, with significant financial growth, strong credit quality, and enhanced shareholder returns | Metric | Q2 2025 | Q1 2025 | YoY Change (Q2 2024) | | :-------------------------------- | :------ | :------ | :------------------- | | Net Income | $5.7 million | $5.2 million | +36% ($1.5 million) | | Diluted EPS | $0.31 | $0.28 | +$0.08 | | Return on Average Assets | 1.02% | 0.94% | +0.25% (from 0.77%) | | Net Interest Margin | 2.90% | 2.83% | +0.31% (from 2.59%) | | Net Interest Income | $15.8 million | - | +15% ($2.1 million) | - Loans past due 30 days or more decreased by **$5.7 million** (**67%**) to **$2.8 million** at June 30, 2025, compared to December 31, 2024; nonperforming loans decreased by **18%** to **$10.5 million**, and nonperforming loans to total assets decreased to **0.46%** from **0.58%**[3](index=3&type=chunk) - The Bank maintained a 'well capitalized' status with a total risk-based capital to risk-weighted assets ratio of **15.28%** and a tangible common equity to tangible assets ratio of **11.16%** at June 30, 2025[3](index=3&type=chunk) - The Company repurchased **415,000 shares** of common stock for **$4.6 million** during Q2 2025 and initiated a quarterly cash dividend of **$0.06 per share**, payable on August 18, 2025[3](index=3&type=chunk)[4](index=4&type=chunk) [Management Comments](index=2&type=section&id=Management%20Comments) Management cited strong earnings, return on assets, and a new dividend, crediting strategic initiatives, disciplined lending, and operational improvements - CEO David W. Pijor highlighted the achievement of a **1.02% annualized return on average assets** and the sixth consecutive quarter of earnings growth, driven by strategic initiatives and disciplined lending, with the initiation of a quarterly cash dividend underscoring financial strength[10](index=10&type=chunk) - President Patricia A. Ferrick noted that deepening customer relationships through personalized service and technology solutions, including an upgraded online banking platform and process automation, led to a **9% improvement in the efficiency ratio**, reaching **56.2% for Q2 2025**[10](index=10&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) This section details the Company's net income, EPS, and non-GAAP operating earnings, showcasing significant growth and improved core performance [Net Income and Earnings Per Share](index=2&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) Net income and diluted EPS significantly increased for Q2 and 6M 2025, driven by operational gains and a derivative unwinding, with 2024 impacted by a BOLI tax charge | Metric | Q2 2025 | Q2 2024 | YoY Change | 6M 2025 | 6M 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | :------ | :------ | :--------- | | Net Income | $5.7 million | $4.2 million | +36% | $10.8 million | $5.5 million | +97% | | Diluted EPS | $0.31 | $0.23 | +$0.08 | $0.59 | $0.30 | +$0.29 | - During Q2 2025, the Company recorded a **$154 thousand gain** from unwinding **$15 million** of pay-fixed/receive floating interest rate swaps; the 2024 six-month period included a **$2.4 million non-recurring tax provisioning increase** due to the surrender of bank-owned life insurance (BOLI)[5](index=5&type=chunk)[6](index=6&type=chunk) [Non-GAAP Commercial Bank Operating Earnings](index=2&type=section&id=Non-GAAP%20Commercial%20Bank%20Operating%20Earnings) Excluding non-recurring items, commercial bank operating earnings and diluted EPS showed strong year-over-year growth, reflecting improved core operational performance | Metric (Non-GAAP) | Q2 2025 | Q2 2024 | YoY Change | 6M 2025 | 6M 2024 | YoY Change | | :------------------------------------ | :------ | :------ | :--------- | :------ | :------ | :--------- | | Commercial Bank Operating Earnings | $5.5 million | $4.2 million | +34% | $10.7 million | $7.9 million | +36% | | Diluted Commercial Bank Operating EPS | $0.30 | $0.23 | +$0.07 | $0.58 | $0.43 | +$0.15 | | Adjusted Return on Average Assets | 1.00% | 0.77% | +0.23% | 0.97% | 0.73% | +0.24% | - Commercial bank operating earnings are a non-GAAP measure used for comparative analysis of the Company's operating performance, with reconciliations provided in the financial tables[9](index=9&type=chunk) [Statement of Condition](index=2&type=section&id=Statement%20of%20Condition) This section overviews the Company's balance sheet, detailing changes in assets, liabilities, and shareholders' equity, and highlighting capital adequacy [Assets](index=2&type=section&id=Assets) Total assets slightly increased from year-end 2024 but decreased year-over-year, with stable loans and a modest rise in investment securities | Metric | June 30, 2025 | Dec 31, 2024 | YoY Change (June 30, 2024) | | :-------------------------- | :------------ | :----------- | :------------------------- | | Total Assets | $2.24 billion | $2.20 billion | -$61.9 million (-2.7%) | | Loans Receivable, net | $1.87 billion | $1.87 billion | -$19.9 million (-1.1%) | | Investment Securities | $157.1 million | $156.7 million | -$5.3 million (-3.3%) | - During Q2 2025, loan originations totaled **$29.2 million** (weighted average rate of **7.66%**), primarily commercial and industrial loans; loan renewals were **$37.9 million** (**7.72%**), and payoffs were **$38.5 million** (**6.01%**), mainly commercial real estate and construction loans[12](index=12&type=chunk) - The warehouse lending facility increased by **$8.4 million** to **$52.5 million** at June 30, 2025, with a weighted average yield of **6.39%** for the quarter[12](index=12&type=chunk) [Liabilities and Shareholders' Equity](index=3&type=section&id=Liabilities%20and%20Shareholders%27%20Equity) Total deposits remained stable with core deposit growth, wholesale deposits decreased, and shareholders' equity increased, maintaining the Bank's well-capitalized status | Metric | June 30, 2025 | Dec 31, 2024 | YoY Change (June 30, 2024) | | :-------------------------- | :------------ | :----------- | :------------------------- | | Total Deposits | $1.90 billion | $1.87 billion | -$68.7 million (-3.5%) | | Shareholders' Equity | $243.2 million | $235.4 million | +$16.7 million (+7.4%) | | Tangible Book Value Per Share | $13.08 | $12.52 | +$1.04 (+8.6%) | | Total Risk-Based Capital Ratio | 15.28% | 14.73% | +1.15% | | Tier 1 Leverage Ratio | 11.97% | 11.74% | +0.66% | - Core deposits, excluding wholesale deposits, increased by **$47.8 million** (**6% annualized**) for the six months ended June 30, 2025; reciprocal deposits, part of core deposits, grew to **$320.7 million** from **$269.7 million**[14](index=14&type=chunk) - Wholesale funding decreased by **$15.0 million** (**5%**) to **$284.9 million** at June 30, 2025, with the cost of wholesale funding decreasing to **3.46%** from **3.54%** in the prior quarter[15](index=15&type=chunk) - Shareholders' equity increased by **$7.8 million**, primarily due to **$10.8 million** in earnings, partially offset by **$4.6 million** in share repurchases[16](index=16&type=chunk) [Asset Quality](index=3&type=section&id=Asset%20Quality) This section analyzes credit loss provision, allowance, nonperforming loans, and loan portfolio composition, demonstrating strong credit quality [Credit Loss Provision and Allowance](index=3&type=section&id=Credit%20Loss%20Provision%20and%20Allowance) Q2 2025 saw a lower provision for credit losses, stable allowance, and net charge-offs primarily from an isolated commercial loan | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Provision for Credit Losses | $105 thousand | $206 thousand | $305 thousand | $206 thousand | | Allowance for Credit Losses (ACL) | $18.1 million | $19.2 million | $18.1 million | $19.2 million | | ACL to Total Loans, net of fees | 0.97% | 1.02% | 0.97% | 1.02% | | Net Charge-offs (Q2) | $517 thousand | -$5 thousand | - | - | | Net Charge-offs (6M) | $378 thousand | -$35 thousand | - | - | - Net charge-offs for Q2 2025 were **0.11% annualized** to average loans, primarily from one commercial loan, which management states is not indicative of a systemic issue[19](index=19&type=chunk)[20](index=20&type=chunk) [Nonperforming Loans and Watchlist](index=4&type=section&id=Nonperforming%20Loans%20and%20Watchlist) Nonperforming and watchlist loans significantly decreased at June 30, 2025, reflecting strong credit quality and effective asset management | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------------- | :------------ | :----------- | :----- | | Nonperforming Loans | $10.5 million | $12.8 million | -$2.3 million | | Nonperforming Loans to Total Assets | 0.46% | 0.58% | -0.12% | | Total Watchlist Loans | $12.6 million | $14.5 million | -$1.9 million | | Other Real Estate Owned | $0 | $0 | No Change | - The decrease in nonperforming loans was driven by a **$990 thousand decrease** in nonaccrual loans and a **$1.3 million decrease** in loans past due over 90 days[21](index=21&type=chunk) [Loan Portfolio Composition](index=4&type=section&id=Loan%20Portfolio%20Composition) The loan portfolio is diversified, with commercial real estate and construction loans as largest segments, managed with disciplined underwriting and strong credit quality | Loan Type | Amount (June 30, 2025) | % of Total Loans, net of fees | | :------------------------------------ | :--------------------- | :---------------------------- | | Commercial Real Estate Loans | $981.5 million | 53% | | Construction Loans | $177.1 million | 9% | | Office Properties (within CRE) | $119.8 million | 6% | | Retail Properties (within CRE) | $236.9 million | 13% | | Multi-family Properties (within CRE) | $155.7 million | 8% | | Industrial Loans | $271.5 million | 14% | | Hotels | $62.2 million | 3% | | Mixed Use | $60.3 million | 3% | | Land | $38.0 million | 2% | | 1-4 Family Construction | $75.5 million | 4% | | Total Commercial Real Estate and Construction Loans | $1,158.6 million | 62% | - The commercial real estate portfolio, including construction loans, is diversified by asset type and geographic concentration, with primary locations in the Virginia and Maryland suburbs of the Company's market area[22](index=22&type=chunk) - The Company employs comprehensive policies for monitoring, measuring, and mitigating loan concentrations within its commercial real estate portfolio, including rigorous credit approval and ongoing loan monitoring procedures[23](index=23&type=chunk)[25](index=25&type=chunk) [Minority Investment in Mortgage Banking Operation](index=5&type=section&id=Minority%20Investment%20in%20Mortgage%20Banking%20Operation) Income from the minority investment in ACM significantly increased for 6M 2025, driven by ACM's strategic growth and a **15% rise** in loan originations | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Income from ACM Investment | $350 thousand | $350 thousand | $491 thousand | $123 thousand | | ACM Loan Originations (6M YoY Change) | - | - | +15% | - | - ACM's increased earnings are a direct result of its continued success in executing strategic growth and geographic diversification initiatives; as of June 30, 2025, ACM is licensed in **38 states**, with four additional state license applications pending[26](index=26&type=chunk) - The income generated from the nonconsolidated minority investment in ACM is recorded as non-interest income[27](index=27&type=chunk) [Income Statement Analysis](index=7&type=section&id=Income%20Statement%20Analysis) This section details the Company's income statement, covering net income, net interest income, noninterest income, and expenses [Net Income Overview](index=7&type=section&id=Net%20Income%20Overview) Q2 2025 net income significantly increased year-over-year and quarter-over-quarter, reflecting strong financial performance | Metric | Q2 2025 | Q2 2024 | YoY Change | Q1 2025 | QoQ Change | | :--------- | :------ | :------ | :--------- | :------ | :--------- | | Net Income | $5.7 million | $4.2 million | +36% | $5.2 million | +10% | [Net Interest Income and Margin](index=7&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income and margin continued their upward trend for the sixth consecutive quarter, driven by increased loan interest income and improved funding costs | Metric | Q2 2025 | Q2 2024 | YoY Change | Q1 2025 | QoQ Change | | :---------------- | :------ | :------ | :--------- | :------ | :--------- | | Net Interest Income | $15.8 million | $13.7 million | +15% | $15.1 million | +5% | | Net Interest Margin | 2.90% | 2.59% | +31 bps | 2.83% | +7 bps | | Cost of Funds | 2.79% | 3.00% | -21 bps | 2.83% | -4 bps | - The increase in net interest income and margin is primarily due to improved yields on earning assets, particularly the loan portfolio repricing to higher interest rates, coupled with a continued improvement in the cost of funding sources[29](index=29&type=chunk)[30](index=30&type=chunk) [Interest Income](index=7&type=section&id=Interest%20Income) Interest income increased due to higher loan yields, with substantial commercial loan repricing expected to further enhance future yields | Metric | Q2 2025 | Q2 2024 | YoY Change | Q1 2025 | QoQ Change | | :-------------------- | :------ | :------ | :--------- | :------ | :--------- | | Total Interest Income | $29.4 million | $28.0 million | +5% | $28.6 million | +3% | | Loan Interest Income | $27.0 million | $26.5 million | +2% | - | - | | Loan Yields | 5.80% | 5.62% | +18 bps | 5.69% | +11 bps | | Yield on Earning Assets | 5.39% | 5.27% | +12 bps | 5.31% | +8 bps | - The Company anticipates continued increases in loan yields, with **$81.3 million** in fixed-rate commercial loans (**4.74% weighted average rate**) and **$21.0 million** in variable-rate commercial loans (**4.00% weighted average rate**) expected to reprice within 12 months[32](index=32&type=chunk) - An additional **$268.0 million** in fixed-rate commercial loans (**4.83% weighted average rate**) and **$129.9 million** in variable-rate commercial loans (**4.95% weighted average rate**) are scheduled to reprice within 24-36 months, representing **33% of the total commercial loan portfolio**[32](index=32&type=chunk) - The Company has actively managed its maturing commercial real estate loan portfolio, diversifying its loan mix towards commercial & industrial loans[33](index=33&type=chunk) [Interest Expense](index=7&type=section&id=Interest%20Expense) Interest expense decreased year-over-year due to reduced borrowed funds, while deposit interest expense slightly rose, reflecting effective funding cost management | Metric | Q2 2025 | Q2 2024 | YoY Change | Q1 2025 | QoQ Change | | :-------------------- | :------ | :------ | :--------- | :------ | :--------- | | Total Interest Expense | $13.7 million | $14.3 million | -4% | $13.5 million | +1% | | Interest Expense on Deposits | $13.0 million | $12.9 million | +$64 thousand | $12.8 million | +1% | | Cost of Deposits | 2.74% | 3.01% | -27 bps | 2.78% | -4 bps | - The decrease in total interest expense compared to the prior year was primarily attributable to a decrease in other borrowed funds[34](index=34&type=chunk) - For the six months ended June 30, 2025, net interest income increased by **16%** to **$30.8 million**, and the net interest margin increased by **34 basis points** to **2.87%** compared to the same period in 2024[36](index=36&type=chunk) [Noninterest Income](index=8&type=section&id=Noninterest%20Income) Noninterest income significantly increased quarter-over-quarter, driven by a derivative termination gain and higher ACM income, showing substantial six-month growth | Metric | Q2 2025 | Q2 2024 | YoY Change | Q1 2025 | QoQ Change | | :------------------------------------ | :------ | :------ | :--------- | :------ | :--------- | | Total Noninterest Income | $1.0 million | $871 thousand | +15.7% | $671 thousand | +50.3% | | Income from Minority Interest in ACM | $350 thousand | $350 thousand | 0% | $141 thousand | +149.8% | | Gain on Termination of Derivatives | $154 thousand | $0 | N/A | $0 | N/A | | BOLI Income (6M) | $141 thousand | $256 thousand | -44.9% | - | - | - The increase in noninterest income for Q2 2025 was largely due to a **$154 thousand gain** from unwinding interest rate swaps[38](index=38&type=chunk) - For the six months ended June 30, 2025, noninterest income totaled **$1.7 million**, up from **$1.3 million** in the prior year, with income from ACM increasing significantly to **$491 thousand** from **$123 thousand**[39](index=39&type=chunk) [Noninterest Expense and Efficiency Ratio](index=8&type=section&id=Noninterest%20Expense%20and%20Efficiency%20Ratio) Noninterest expense slightly increased due to higher salaries and software costs, but the efficiency ratio significantly improved, reflecting enhanced operational efficiency | Metric | Q2 2025 | Q2 2024 | YoY Change | Q1 2025 | QoQ Change | | :-------------------------------- | :------ | :------ | :--------- | :------ | :--------- | | Total Noninterest Expense | $9.4 million | $9.0 million | +5% | $9.1 million | +3% | | Salaries and Employee Benefits | $5.0 million | $4.7 million | +7% | $4.8 million | +5% | | Internet Banking and Software Expense | $864 thousand | $730 thousand | +18.4% | $825 thousand | +4.7% | | Efficiency Ratio | 56.2% | 61.9% | -5.7% | 58.1% | -1.9% | - The increase in salaries and benefits expense was primarily due to increased incentive accruals and the filling of vacant positions[40](index=40&type=chunk) - Internet banking and software expense increased due to the implementation of enhanced customer software solutions, while data processing and network administration expense decreased due to contract renewals[41](index=41&type=chunk) [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) Income tax expense increased for Q2 2025 year-over-year but decreased for the six-month period due to a non-recurring 2024 BOLI surrender tax charge | Metric | Q2 2025 | Q2 2024 | YoY Change | 6M 2025 | 6M 2024 | YoY Change | | :---------------- | :------ | :------ | :--------- | :------ | :------ | :--------- | | Income Tax Expense | $1.6 million | $1.2 million | +27.9% | $2.8 million | $4.4 million | -36.6% | - The lower income tax expense for the six months ended June 30, 2025, compared to 2024, is primarily due to an additional **$2.4 million tax provisioning** in 2024 associated with the surrender of BOLI policies[44](index=44&type=chunk) [Company Information & Disclosures](index=9&type=section&id=Company%20Information%20%26%20Disclosures) This section overviews FVCBankcorp, Inc., its operations, and cautionary notes regarding forward-looking statements and associated risks [About FVCBankcorp, Inc.](index=9&type=section&id=About%20FVCBankcorp,%20Inc.) FVCBankcorp, Inc. is the holding company for FVCbank, a **$2.24 billion** Virginia-chartered community bank serving commercial clients in the greater Baltimore and Washington, D.C. metropolitan areas - FVCBankcorp, Inc. is the holding company for FVCbank, a **$2.24 billion asset-sized** Virginia-chartered community bank[45](index=45&type=chunk) - The bank serves commercial businesses, non-profit organizations, professional service entities, their owners, and employees in the greater Baltimore and Washington, D.C. metropolitan areas[45](index=45&type=chunk) - FVCbank operates **8 full-service offices** across Arlington, Fairfax, Manassas, Reston, Springfield (Virginia), Washington, D.C., Baltimore, and Bethesda (Maryland)[45](index=45&type=chunk) [Cautionary Note About Forward-Looking Statements](index=9&type=section&id=Cautionary%20Note%20About%20Forward-Looking%20Statements) This section cautions that forward-looking statements are subject to various known and unknown risks, including economic, interest rate, credit, and regulatory factors - The press release contains forward-looking statements, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially[47](index=47&type=chunk) - Key risk factors include general business and economic conditions (e.g., inflation, real estate valuations, unemployment), concentration of business in the Washington, D.C. metropolitan area, interest rate environment, liquidity requirements, credit losses, real estate market downturns, market volatility, regulatory changes, and competitive pressures[47](index=47&type=chunk) - The Company cautions against undue reliance on forward-looking statements and states that they will not be updated to reflect actual results or changes in factors affecting them[48](index=48&type=chunk) [Financial Tables](index=11&type=section&id=Financial%20Tables) This section provides detailed financial tables, including selected financial data, consolidated statements of condition, and income statements [Selected Financial Data](index=11&type=section&id=Selected%20Financial%20Data) This table offers a comprehensive overview of FVCBankcorp, Inc.'s selected financial balances, operational results, per share data, and key ratios, including GAAP and non-GAAP reconciliations | Metric | June 30, 2025 | June 30, 2024 | March 31, 2025 | Dec 31, 2024 | | :------------------------------------ | :------------ | :------------ | :------------- | :----------- | | Total assets | $2,237,250 | $2,299,194 | $2,240,797 | $2,198,950 | | Net income | $5,667 | $4,155 | $5,165 | $4,900 | | Diluted EPS | $0.31 | $0.23 | $0.28 | $0.26 | | Net interest margin | 2.90 % | 2.59 % | 2.83 % | 2.77 % | | Return on average assets | 1.02 % | 0.77 % | 0.94 % | 0.90 % | | Efficiency ratio | 56.22 % | 61.86 % | 58.08 % | 58.58 % | | Nonperforming loans | $10,529 | $3,187 | $10,747 | $12,823 | | Tangible common equity (to tangible assets) | 11.16 % | 9.56 % | 10.98 % | 10.87 % | - The table includes reconciliations of GAAP net income to non-GAAP commercial bank operating earnings, adjusting for items like derivative gains and non-recurring tax provisions[51](index=51&type=chunk)[52](index=52&type=chunk) [Summary Consolidated Statements of Condition](index=14&type=section&id=Summary%20Consolidated%20Statements%20of%20Condition) This table details the Company's assets, liabilities, and shareholders' equity at various quarter-end dates, highlighting changes from prior periods | Item | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :----------- | :------------ | | Total Assets | $2,237,250 | $2,240,797 | $2,198,950 | $2,299,194 | | Total Loans, net of fees | $1,869,098 | $1,882,133 | $1,870,235 | $1,886,929 | | Total Deposits | $1,903,472 | $1,906,621 | $1,870,605 | $1,968,752 | | Shareholders' Equity | $243,163 | $242,328 | $235,354 | $226,491 | - Commercial and industrial loans increased by **1.7% QoQ** and **28.3% YoY**, while commercial real estate loans decreased by **2.8% QoQ** and **9.4% YoY**[55](index=55&type=chunk) - Wholesale deposits decreased by **6.0% QoQ** and **YoY**, reflecting strategic funding management[55](index=55&type=chunk) [Summary Consolidated Statements of Income (Quarterly)](index=15&type=section&id=Summary%20Consolidated%20Statements%20of%20Income%20(Quarterly)) This table presents a quarterly breakdown of the Company's income statement, including net interest income, noninterest income, noninterest expense, net income, and non-GAAP reconciliations | Item | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | Net interest income | $15,759 | $15,052 | $13,671 | | Total noninterest income | $1,008 | $671 | $871 | | Total noninterest expense | $9,428 | $9,133 | $8,996 | | Net Income | $5,667 | $5,165 | $4,155 | | Diluted EPS | $0.31 | $0.28 | $0.23 | | Adjusted Net Income, commercial bank operating earnings (non-GAAP) | $5,548 | $5,165 | $4,155 | | Adjusted Pre-tax pre-provision income (non-GAAP) | $7,185 | $6,590 | $5,546 | - Income from minority membership interests increased by **149.8% QoQ** to **$351 thousand** in Q2 2025[57](index=57&type=chunk) - Salaries and employee benefits increased by **5.3% QoQ** and **7.4% YoY** in Q2 2025[57](index=57&type=chunk) [Summary Consolidated Statements of Income (Six Months)](index=17&type=section&id=Summary%20Consolidated%20Statements%20of%20Income%20(Six%20Months)) This table presents the Company's income statement for 6M 2025 and 2024, including GAAP and non-GAAP reconciliations, showing significant year-over-year growth | Item | 6M June 30, 2025 | 6M June 30, 2024 | % Change | | :------------------------------------ | :--------------- | :--------------- | :------- | | Net interest income | $30,811 | $26,462 | 16.4 % | | Total noninterest income | $1,679 | $1,266 | 32.6 % | | Total noninterest expense | $18,561 | $17,621 | 5.3 % | | Net Income | $10,832 | $5,495 | 97.1 % | | Diluted EPS | $0.59 | $0.30 | 96.7 % | | Adjusted Net Income, core bank operating earnings (non-GAAP) | $10,713 | $7,881 | - | | Adjusted Pre-tax pre-provision income (non-GAAP) | $13,775 | $10,107 | - | - Income from minority membership interests increased by **232.4%** for the six months ended June 30, 2025, compared to the prior year[60](index=60&type=chunk) - Income tax expense decreased by **36.6%** for the six-month period, primarily due to a non-recurring tax charge in 2024 related to BOLI surrender[60](index=60&type=chunk) [Average Statements of Condition and Yields (Quarterly)](index=19&type=section&id=Average%20Statements%20of%20Condition%20and%20Yields%20(Quarterly)) This table details average balances, interest income/expense, and yields for interest-earning assets and liabilities for Q2 2025, Q1 2025, and Q2 2024, providing net interest margin insights | Item | Q2 2025 Average Balance | Q2 2025 Average Yield | Q1 2025 Average Balance | Q1 2025 Average Yield | Q2 2024 Average Balance | Q2 2024 Average Yield | | :------------------------------------ | :---------------------- | :-------------------- | :---------------------- | :-------------------- | :---------------------- | :-------------------- | | Total interest-earning assets | $2,182,180 | 5.39 % | $2,153,209 | 5.31 % | $2,123,431 | 5.27 % | | Total loans | $1,862,488 | 5.80 % | $1,866,593 | 5.69 % | $1,882,342 | 5.62 % | | Total interest-bearing deposits | $1,534,660 | 3.39 % | $1,513,885 | 3.43 % | $1,420,454 | 3.65 % | | Net Interest Margin | - | 2.90 % | - | 2.83 % | - | 2.59 % | - Commercial and industrial loan yields increased to **8.06%** in Q2 2025 from **7.86%** in Q1 2025 and **7.92%** in Q2 2024[62](index=62&type=chunk) - The cost of interest-bearing deposits decreased to **3.39%** in Q2 2025 from **3.43%** in Q1 2025 and **3.65%** in Q2 2024[62](index=62&type=chunk) [Average Statements of Condition and Yields (Six Months)](index=20&type=section&id=Average%20Statements%20of%20Condition%20and%20Yields%20(Six%20Months)) This table presents average balances, interest income/expense, and yields for interest-earning assets and liabilities for 6M 2025 and 2024, illustrating year-over-year pricing trends | Item | 6M June 30, 2025 Average Balance | 6M June 30, 2025 Average Yield | 6M June 30, 2024 Average Balance | 6M June 30, 2024 Average Yield | | :------------------------------------ | :------------------------------- | :----------------------------- | :------------------------------- | :----------------------------- | | Total interest-earning assets | $2,167,775 | 5.32 % | $2,103,435 | 5.21 % | | Total loans | $1,864,529 | 5.72 % | $1,861,614 | 5.56 % | | Total interest-bearing deposits | $1,524,331 | 3.41 % | $1,413,506 | 3.62 % | | Net Interest Margin | - | 2.87 % | - | 2.53 % | - The average yield on total loans increased to **5.72%** for the six months ended June 30, 2025, from **5.56%** in the prior year[63](index=63&type=chunk) - The average cost of total interest-bearing liabilities decreased to **3.44%** for the six months ended June 30, 2025, from **3.71%** in the prior year[63](index=63&type=chunk)

Company Overview - FVCBankcorp (FVCB) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.28, reflecting a +21.7% change, and revenues of $16.19 million, up 11.4% from the previous year [3][12]. Earnings Expectations - The consensus EPS estimate has been revised 7.41% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The company currently has an Earnings ESP of 0%, suggesting no recent differing analyst views from the consensus estimate [12]. Historical Performance - FVCBankcorp has a strong track record, having beaten consensus EPS estimates in the last four quarters, including a +16.67% surprise in the most recent quarter [13][14]. Market Sentiment - The stock's movement may be influenced by how actual results compare to expectations, with potential for upward movement if results exceed estimates [2]. - Despite a strong Zacks Rank of 1, the combination of a 0% Earnings ESP makes it challenging to predict an earnings beat conclusively [12][17]. Industry Context - In the broader context, United Community Banks (UCB) is also expected to report earnings, with an EPS estimate of $0.62, reflecting a +6.9% year-over-year change, and revenues of $259.97 million, up 6% [18][19].

Core Viewpoint - FVCBankcorp (FVCB) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which are crucial for stock price movements [1][2][4]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [3][5]. - FVCBankcorp is expected to earn $1.15 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 9% over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - FVCBankcorp's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].

Core Viewpoint - FVCBankcorp (FVCB) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimates - Analysts' optimism regarding FVCBankcorp's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2]. - The Zacks Rank system indicates a strong correlation between earnings estimate revisions and stock price movements, with Zacks 1 Ranked stocks averaging a +25% annual return since 2008 [3]. Current Quarter Estimates - For the current quarter, FVCBankcorp is expected to earn $0.28 per share, reflecting a year-over-year increase of +21.74% [6]. - The Zacks Consensus Estimate for the current quarter has risen by 7.41% over the last 30 days, with no negative revisions reported [6]. Current Year Estimates - The expected earnings for the full year are projected at $1.15 per share, representing a +21.05% change from the previous year [7]. - The consensus estimate for the current year has increased by 9.52%, with one estimate moving higher and no negative revisions [8]. Zacks Rank - FVCBankcorp currently holds a Zacks Rank 2 (Buy), indicating promising estimate revisions that could lead to significant outperformance compared to the S&P 500 [9]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the market [9]. Investment Outlook - FVCBankcorp's stock has risen by 8.1% over the past four weeks due to strong estimate revisions, suggesting potential for further upside [10].

Financial Data and Key Metrics Changes - For the full year of 2024, the bank increased its net income by $11.2 million or 294% over 2023 [15] - Total assets increased by $8.5 million or 3.9% and total loans outstanding increased by $42 million or 3.3% [15] - For the first quarter of 2025, commercial bank operating earnings increased by 39% compared to the same quarter last year [16] - Return on average assets improved from 0.25% in Q1 2024 to 0.94% in Q1 2025 [16] - Pre-tax pre-provision return on average assets increased from 0.85% to 1.2% in Q1 2025 [16] Business Line Data and Key Metrics Changes - Net interest income improved by 18% and net interest margin improved by 15% compared to the year-ago quarter [15] - Tangible common equity reached $234.7 million on March 31, 2025, representing a 10.1% increase from the previous year [49] - Loans past due 30 days or more decreased by $7.2 million or 84% from $8.4 million at December 31, 2024 [49] Market Data and Key Metrics Changes - Total assets increased at an annual rate of 7.6% in Q1 2025, total loans increased at an annual rate of 2.5%, and total deposits increased at an annual rate of 7.7% [55] Company Strategy and Development Direction - The company emphasizes building long-term relationships with clients and utilizing technology to enhance performance [19][51] - Recent technology initiatives include partnerships with Clarivus for data analytics and the Q2 digital platform for online banking solutions [21][54] - The bank aims to continue growth and profitability through a relationship-driven strategy coupled with smart technology use [25] Management's Comments on Operating Environment and Future Outlook - Management reported strong credit quality and a well-capitalized balance sheet, indicating confidence in future earnings growth [16][17] - The bank's efficiency improved from 64% in 2023 to 58.1% in the most recent quarter, suggesting operational improvements [25] Other Important Information - The bank repurchased 415,000 shares of its common stock for an average price of $11.14 per share, with all repurchased shares canceled [18][50] - The Center for Disaster Philanthropy was awarded the 2025 El Burwell Gunn Citizenship Award for its community support efforts [26][27] Q&A Session Summary Question: Were there any questions regarding the election of directors? - No questions were raised regarding the election of directors [11] Question: Were there any questions about the compensation of executive officers? - No questions were raised regarding the compensation of executive officers [12] Question: Were there any questions about the appointment of the independent registered public accounting firm? - No questions were raised regarding the appointment of the independent registered public accounting firm [13]

Financial Performance - For the three months ended March 31, 2025, the company recorded net income of $5.2 million, or $0.28 diluted earnings per share, compared to $1.3 million, or $0.07 diluted earnings per share for the same period in 2024, representing an increase of $3.8 million [149]. - Net interest income for the three months ended March 31, 2025 was $15.1 million, an increase of $2.3 million, or 18%, compared to $12.8 million for the same period in 2024 [150]. - Noninterest income increased to $671 thousand for the three months ended March 31, 2025, up $276 thousand, or 70%, from $395 thousand in the same period of 2024 [150]. - Commercial bank operating earnings for the three months ended March 31, 2025 were $5.2 million, an increase of $1.4 million, or 38%, from $3.7 million in 2024 [152]. - Diluted commercial bank operating earnings per share for the three months ended March 31, 2025 were $0.28, compared to $0.20 for the same period in 2024 [152]. - Net income for the three months ended March 31, 2025, was $5.165 million, a significant increase from $1.340 million in the same period of 2024, representing a growth of 285% [156]. - Non-GAAP commercial bank operating earnings for the same period increased to $5.165 million from $3.726 million, reflecting a growth of 39% [156]. - Earnings per share (EPS) on a diluted basis increased to $0.28 for Q1 2025, compared to $0.07 in Q1 2024, marking a growth of 300% [156]. Credit and Risk Management - Provision for credit losses for the three months ended March 31, 2025 was $200 thousand, compared to none for the same period in 2024 [150]. - The provision for credit losses was recorded at $200 thousand for Q1 2025, compared to $0 for Q1 2024, indicating a proactive approach to managing credit risk [172]. - The allowance for credit losses as a percentage of total loans was 0.98% at March 31, 2025, slightly up from 0.97% at December 31, 2024 [172]. - Nonperforming loans at March 31, 2025 totaled $10.7 million, or 0.48% of total assets, down from $12.8 million, or 0.58% at December 31, 2024 [173][193]. - The company had $4.6 million in loans identified as special mention at March 31, 2025, an increase of $1.3 million from December 31, 2024 [194]. - The company recorded annualized net recoveries of (0.03)% for the three months ended March 31, 2025, compared to (0.01)% for the same period in 2024 [196]. - Total nonperforming loans (NPLs) decreased to $10.747 billion at March 31, 2025, from $12.860 billion at December 31, 2024, representing a reduction of approximately 16.4% [198]. - The allowance for credit losses on loans to NPLs increased to 171.42% at March 31, 2025, compared to 140.97% at December 31, 2024, indicating a more conservative approach to credit risk management [198]. Asset and Liability Management - Average loans receivable increased by $25.7 million to $1.87 billion in Q1 2025, with the yield on average loans rising 19 basis points to 5.69% [165]. - Total average interest-bearing liabilities increased by $48.6 million to $1.58 billion in Q1 2025, while interest expense decreased by $530 thousand to $13.5 million [167]. - Average interest-earning assets increased by $69.8 million, or 3%, to $2.15 billion in Q1 2025 compared to Q1 2024 [164]. - The commercial real estate loan portfolio totaled $1.01 billion, accounting for 54% of total loans as of March 31, 2025, down from $1.04 billion or 56% at December 31, 2024 [198]. - Loans secured by retail properties amounted to $244.9 million, representing 13% of total loans at March 31, 2025 [198]. - The commercial real estate and construction loans, net of fees, totaled $1.175 billion at March 31, 2025, down from $1.200 billion at December 31, 2024 [201]. Deposits and Equity - Total deposits increased by $36.0 million, or 2%, to $1.91 billion at March 31, 2025, from $1.87 billion at December 31, 2024 [186]. - Noninterest-bearing demand deposits were $367.1 million at March 31, 2025, representing 19.3% of total deposits [224]. - Total shareholders' equity increased by $7.0 million to $242.3 million at March 31, 2025, with net income contributing $5.2 million to this increase [236]. - The estimated amount of total uninsured deposits was $777.9 million, or 41% of total deposits, as of March 31, 2025 [227]. - Time deposits increased by $26.8 million, or 11%, to $274.9 million at March 31, 2025, from $248.2 million at December 31, 2024 [224]. - Total stockholders' equity increased to $242.3 million in 2025 from $235.4 million in 2024, reflecting a growth of approximately 3.7% [245]. - Tangible Common Equity rose to $234.9 million in 2025, up from $227.9 million in 2024, indicating a growth of about 3.1% [245]. Investment Securities - The investment securities portfolio's fair value increased to $158.7 million at March 31, 2025, up by $2.2 million or 1% from $156.5 million at December 31, 2024 [216]. - The weighted average yield of total investment securities was 1.94% at March 31, 2025, compared to 1.92% at December 31, 2024 [223]. - The majority of the investment securities portfolio consists of securities rated AAA, indicating low investment risk [217]. - The effective duration of the investment securities portfolio is slightly over five years, which is within the industry average [217]. Liquidity Management - Liquid assets totaled $282.6 million as of March 31, 2025, representing 13% of total assets, an increase from $247.4 million (11% of total assets) at December 31, 2024 [249]. - The liquidity management program includes stress testing under various scenarios to ensure sufficient resources to meet liquidity needs [254]. - The Bank maintains secured lines of credit with the FRB and FHLB, allowing borrowing up to the allowable amount for the collateral pledged [248]. - The Bank has secured borrowings of $130 million from the FHLB, with a portion of the commercial real estate and residential loan portfolio pledged as collateral [252]. - Investment securities available-for-sale pledged as collateral for municipal deposits were $20.2 million at March 31, 2025, down from $55.1 million at December 31, 2024 [249].

Core Insights - FVCBankcorp (FVCB) reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and up from $0.20 per share a year ago, representing an earnings surprise of 16.67% [1] - The company posted revenues of $15.72 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.83%, compared to $13.19 million in the same quarter last year [2] - FVCBankcorp shares have declined approximately 20.6% year-to-date, while the S&P 500 has decreased by 12.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $15.77 million, and for the current fiscal year, it is $1.05 on revenues of $63.97 million [7] - The estimate revisions trend for FVCBankcorp is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Banks - Southeast industry, to which FVCBankcorp belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - For Q1 2025, FVCBankcorp reported net income of $5.2 million, or $0.28 diluted earnings per share, up from $1.3 million, or $0.07 per share in Q1 2024[5]. - The company recorded net income of $5.2 million for Q1 2025, an increase of $3.8 million from $1.3 million in Q1 2024, representing a 292% year-over-year growth[26]. - Net income for Q1 2025 was $5.165 million, an increase from $4.9 million in Q4 2024 and significantly higher than $1.34 million in Q1 2024[45]. - Basic earnings per share increased to $0.28, up 3.7% from $0.27 in the previous quarter and up 250.0% from $0.08 year-over-year[50]. Interest Income and Margin - Net interest margin improved by 15% year-over-year to 2.83%, with net interest income increasing by 18% to $15.1 million compared to $12.8 million in Q1 2024[6]. - The company's net interest margin rose by 36 basis points to 2.83% for Q1 2025, up from 2.47% in Q1 2024[29]. - Interest income increased by $1.7 million, or 6%, to $28.6 million for Q1 2025 compared to Q1 2024, with loan interest income rising by $1.2 million, or 5%[30]. - The net interest margin increased to 2.83% from 2.77% in the previous quarter and 2.47% a year ago[52]. Asset and Loan Growth - Total assets increased to $2.24 billion at March 31, 2025, up from $2.20 billion at December 31, 2024, reflecting a growth of $41.8 million[10]. - Total loans, net of deferred fees, rose to $1.88 billion in Q1 2025, up from $1.85 billion in Q1 2024[45]. - Commercial and industrial loans increased by 7.9% to $339,173,000 compared to $314,274,000 in the prior quarter[48]. Credit Quality - Loans past due 30 days or more decreased by 84% to $1.3 million from $8.4 million at December 31, 2024, indicating strong credit quality[6]. - Nonperforming loans decreased to $10.7 million, or 0.48% of total assets, down from $12.8 million, or 0.58% of total assets at December 31, 2024[21]. - The allowance for credit losses was $18.4 million, with an ACL to total loans ratio of 0.98% at March 31, 2025[20]. - The allowance for credit losses on loans increased to 171.42% of nonperforming loans, up from 141.38%[46]. Deposits and Equity - Total deposits rose by 8% on an annualized basis to $1.91 billion, with noninterest-bearing deposits making up 19.3% of total deposits[13]. - Shareholders' equity increased by 3% to $242.3 million, driven by Q1 earnings of $5.2 million[15]. - Total deposits rose by 1.9% to $1,906,621,000 from $1,870,605,000 in the previous quarter[48]. Expenses and Efficiency - Noninterest expense was $9.1 million for Q1 2025, a 6% increase from $8.6 million in Q1 2024, primarily due to higher salaries and benefits[36]. - The efficiency ratio for commercial bank operating earnings was 58.1% for Q1 2025, down from 65.4% in Q1 2024, indicating improved operational efficiency[38]. - The efficiency ratio improved to 58.08%, compared to 58.62% in the prior quarter[46]. Future Outlook and Strategies - The company continues to focus on growth strategies to increase loans and improve margins while leveraging technology to enhance customer experience[27]. - The company expects $88.8 million in fixed-rate commercial loans and $21.9 million in variable-rate commercial loans to reprice within the next 12 months[31].