[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for FVCBankcorp, Inc. as of June 30, 2020, and for the three and six-month periods then ended Consolidated Balance Sheet Highlights (Unaudited) | Metric | June 30, 2020 (in thousands) | December 31, 2019 (in thousands) | | :--- | :--- | :--- | | Total Assets | $1,781,149 | $1,537,295 | | Loans, net | $1,465,226 | $1,260,295 | | Total Deposits | $1,519,036 | $1,285,722 | | Total Liabilities | $1,600,497 | $1,358,217 | | Total Stockholders' Equity | $180,652 | $179,078 | Consolidated Income Statement Highlights (Unaudited) | Metric | Three Months Ended June 30, 2020 (in thousands) | Three Months Ended June 30, 2019 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2019 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $12,695 | $12,371 | $24,906 | $24,135 | | Provision for loan losses | $1,750 | $505 | $2,816 | $1,020 | | Net Income | $2,880 | $4,085 | $6,613 | $8,011 | | Diluted EPS | $0.21 | $0.28 | $0.46 | $0.54 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed information on the company's accounting policies and financial statement line items, focusing on COVID-19 impacts and new accounting standards - In response to the COVID-19 pandemic, the company modified **277 loans** totaling **$360.2 million** (24.4% of the total loan portfolio) through payment deferral programs, which are not considered troubled debt restructurings[39](index=39&type=chunk)[49](index=49&type=chunk) - The company originated **755 PPP loans** totaling **$169.4 million** as of June 30, 2020, which are fully guaranteed by the U.S. government[40](index=40&type=chunk) - The company has not yet adopted ASU No. 2016-13 (CECL), with the standard effective for fiscal years beginning after December 15, 2022, for smaller reporting companies[42](index=42&type=chunk) Loan Portfolio Composition (June 30, 2020) | Loan Type | Total (in thousands) | | :--- | :--- | | Commercial real estate | $778,908 | | Commercial and industrial | $279,919 | | Commercial construction | $228,641 | | Consumer real estate | $178,665 | | Consumer nonresidential | $18,795 | | **Total Gross Loans** | **$1,484,928** | Allowance for Loan Losses Activity (Six Months Ended June 30, 2020) | Metric | Amount (in thousands) | | :--- | :--- | | Beginning Balance (Jan 1, 2020) | $10,231 | | Provision | $2,816 | | Charge-offs | ($180) | | Recoveries | $27 | | **Ending Balance (June 30, 2020)** | **$12,894** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=60&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for Q2 and H1 2020, highlighting the significant impact of the COVID-19 pandemic - Total assets grew by **$243.9 million** (**15.9%**) to **$1.78 billion** since year-end 2019, primarily due to **$169.4 million** in PPP loan originations[212](index=212&type=chunk) - Net income for Q2 2020 was **$2.9 million**, down from **$4.1 million** in Q2 2019, mainly due to a **$1.8 million** provision for loan losses and **$0.7 million** in one-time branch closure costs[212](index=212&type=chunk) - As of July 31, 2020, COVID-related loan modifications had reduced to **165 loans** totaling **$226.7 million** (**15.3%** of the portfolio), down from **$360.2 million** at the peak[218](index=218&type=chunk) - The company temporarily suspended its share repurchase program due to COVID-19 uncertainty after repurchasing **$7.3 million** of common stock in Q1 2020[225](index=225&type=chunk) [Results of Operations](index=76&type=section&id=Results%20of%20Operations) Net income for Q2 2020 decreased to $2.9 million due to higher loan loss provisions and a one-time branch closure cost Net Interest Margin Analysis (Q2 2020 vs Q2 2019) | Metric | Q2 2020 | Q2 2019 | | :--- | :--- | :--- | | Net Interest Margin (Tax-equivalent) | 3.16% | 3.59% | | Yield on Interest-Earning Assets | 4.03% | 4.91% | | Cost of Interest-Bearing Liabilities | 1.30% | 1.87% | - The provision for loan losses increased to **$1.8 million** for Q2 2020 and **$2.8 million** for the first six months of 2020, reflecting changes in qualitative factors due to the COVID-19 pandemic[280](index=280&type=chunk) - The company incurred a one-time impairment charge of **$0.7 million** on right-of-use assets and leasehold improvements due to the closure of two branch locations[285](index=285&type=chunk) - For the six months ended June 30, 2020, noninterest income was impacted by a **$0.5 million** loss on the reclassification of consumer unsecured loans from 'held for sale' to 'held for investment'[282](index=282&type=chunk) [Financial Condition](index=94&type=section&id=Financial%20Condition) Total assets reached $1.78 billion, driven by PPP loans, with improved asset quality and strong capital levels Asset Quality Metrics | Metric | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Nonperforming Assets (NPAs) | $12.4 million | $14.6 million | | NPAs / Total Assets | 0.69% | 0.95% | | Allowance for Loan Losses / NPLs | 151.82% | 95.39% | | Allowance for Loan Losses / Total Loans | 0.87% | 0.81% | - Special mention loans decreased by **$9.5 million** and substandard loans decreased by **$4.6 million** from December 31, 2019, primarily due to loan payoffs, including a **$3.9 million** TDR[299](index=299&type=chunk) - The Bank's Community Bank Leverage Ratio (CBLR) was **11.05%** at June 30, 2020, exceeding the temporary **8%** regulatory requirement for well-capitalized status[343](index=343&type=chunk)[346](index=346&type=chunk) - The company maintains strong liquidity, with liquid assets at **11.9%** of total assets and additional borrowing capacity of approximately **$120.9 million** at the FHLB and **$51.4 million** at the FRB[356](index=356&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk using NII simulation and EVE models, with all measures within board-approved policy limits Interest Rate Sensitivity Analysis (1-Year Horizon) | Change in Interest Rates (bps) | % Change in Net Interest Income (as of June 30, 2020) | | :--- | :--- | | +400 | -3.41% | | +300 | -2.56% | | +200 | -2.14% | | +100 | -1.39% | | -100 | +1.50% | Economic Value of Equity (EVE) Sensitivity Analysis | Change in Interest Rates (bps) | % Change in EVE (as of June 30, 2020) | | :--- | :--- | | +400 | +7.42% | | +300 | +7.03% | | +200 | +5.75% | | +100 | +3.28% | | -100 | +1.51% | [Controls and Procedures](index=76&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2020 - The company's principal executive officer and principal financial officer concluded that the disclosure controls and procedures were effective as of the end of the period covered by the report[376](index=376&type=chunk) - No changes in internal control over financial reporting occurred during the last fiscal quarter that materially affected, or are likely to materially affect, internal controls[377](index=377&type=chunk) [PART II — OTHER INFORMATION](index=78&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=78&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently a party to any material legal proceedings, nor is it aware of any such threatened proceedings - In the ordinary course of operations, the company may become party to legal proceedings, but it is not currently party to any that are considered material[380](index=380&type=chunk) [Risk Factors](index=78&type=section&id=Item%201A.%20Risk%20Factors) This section updates the company's risk factors, primarily focusing on the significant and unpredictable adverse effects of the COVID-19 pandemic - The primary updated risk factor is the ongoing COVID-19 pandemic, which has had a material adverse impact on the macroeconomic environment and increased economic uncertainty[382](index=382&type=chunk) - Specific pandemic-related risks include increased loan losses, declining real estate collateral values, reduced net interest margin, operational disruptions, and heightened cybersecurity threats[383](index=383&type=chunk) - The ultimate impact of the pandemic is highly uncertain and difficult to predict, and loan deferral programs could delay the identification of asset quality deterioration[385](index=385&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=79&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its share repurchase activity for the first half of 2020, with the program temporarily suspended due to COVID-19 uncertainty - For the six months ended June 30, 2020, the company repurchased and cancelled **487,531 shares** of its common stock at an average price of **$14.90**, for a total of **$7.3 million**[387](index=387&type=chunk) - All share repurchase activity occurred during the first quarter of 2020; the program was subsequently suspended due to the impact of COVID-19[387](index=387&type=chunk) [Exhibits](index=80&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including certifications and XBRL formatted financial statements - Exhibits filed with the report include Rule 13a-14(a) and Section 1350 certifications from the CEO and CFO[392](index=392&type=chunk) - The report includes financial data formatted in both XBRL and Inline XBRL[392](index=392&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2020 or ¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-38647 FVCBankcorp, Inc. (Exact name of registrant as specified in its charter) Virginia 47-5020283 (State or other jurisdiction of (I.R.S. ...

Use these links to rapidly review the document TABLE OF CONTENTS C O N T E N T S Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) For the fiscal year ended December 31, 2019 or o TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38647 FVCBankcorp, Inc. ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact na ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2019 or o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-38647 FVCBankcorp, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2019 or o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-38647 FVCBankcorp, Inc. (Exact name of registrant as specified in its charter) Virginia 47-5020283 (State or other jurisd ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2019 or o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-38647 FVCBankcorp, Inc. (Exact name of registrant as specified in its charter) Virginia 47-5020283 (State or other juris ...

Liquidity and Funding - Liquidity risk could impair the company's ability to fund operations and meet obligations, potentially adversely affecting growth, profitability, and financial condition[158]. - The company relies on customer deposits and advances from the Federal Home Loan Bank of Atlanta (FHLB) for funding, with brokered deposits representing approximately 7.3% of total deposits as of December 31, 2018[160][174]. - The company has established a brokered deposit to total deposit tolerance ratio of 15% to support future growth[174]. - The company may need to increase reliance on FHLB borrowing or attract additional non-brokered deposits if brokered deposits become less accessible[174]. - Liquid assets totaled $167.0 million at December 31, 2018, representing 12.4% of total assets, ensuring sufficient liquidity[369]. - The company had additional borrowing capacity of approximately $126.8 million with the FHLB and $62.6 million with the FRB as of December 31, 2018[369]. - The company has established a formal liquidity contingency plan to manage liquidity effectively under various stress scenarios[368]. Capital and Regulatory Compliance - Regulatory requirements may necessitate higher capital levels due to the concentration in commercial real estate lending, potentially limiting growth[171]. - The company is required to maintain a common equity Tier 1 capital ratio of 4.5% and a total risk-based capital ratio of 8% under the Basel III regulatory capital reforms[216]. - The capital conservation buffer was 1.825% as of December 31, 2018, which is below the fully phased-in requirement of 2.5%[216]. - Regulatory capital rules may require the company to maintain higher capital levels, especially during times of internal growth or acquisitions[219]. - The total risk-based capital ratio was 14.02% at December 31, 2018, compared to 12.83% at December 31, 2017, indicating improved capital adequacy[358]. - The common equity Tier 1 capital ratio was 13.27% at December 31, 2018, exceeding the minimum requirement of 6.375%[364]. - The company is classified as "well capitalized" for regulatory purposes, meeting all capital requirements[358]. - The company faces potential adverse effects from changes in regulatory compliance costs and requirements, which could impact operations and financial condition[210]. - The company is subject to extensive regulation, and any noncompliance could result in sanctions or enforcement actions that may adversely affect its business[222]. - The company must comply with fair and responsible banking laws, and failure to do so could lead to sanctions, including civil money penalties and restrictions on operations[223]. Financial Performance - Net income for the year ended December 31, 2018 was $10.9 million, compared to $7.7 million for the same period in 2017[278]. - Excluding merger-related expenses, net income would have been $13.4 million, or $1.05 per diluted common share, for 2018[278]. - Return on average assets for 2018 was 0.94%, up from 0.80% in 2017[280]. - Return on average equity for 2018 was 9.29%, compared to 8.63% in 2017[280]. - The effective tax rate decreased to 17.1% in 2018 from 47.1% in 2017, primarily due to discrete tax benefits from nonqualified stock options[308]. Loan Portfolio and Credit Risk - As of December 31, 2018, commercial real estate loans represented 353.0% of the company's total risk-based capital, indicating a significant concentration risk[171]. - Approximately $797.3 million, or 70.1%, of the loan portfolio was originated in the past three years, raising concerns about the seasoning and potential credit defaults[172]. - The commercial real estate portfolio constituted 73.5% of the total loan portfolio, indicating a concentration of credit risk[326]. - The provision for loan losses was $1.9 million in 2018, compared to $1.2 million in 2017, with the allowance for loan losses at $9.2 million[297]. - The allowance for loan losses increased to $9,159 thousand, with a ratio of 0.81% to net loans receivable[330]. - Nonperforming assets increased to $7,435 thousand, representing 0.57% of total assets, up from 0.44% in the previous year[318]. - The company recorded a significant decrease in troubled debt restructurings (TDRs), down to $203 thousand from $1,671 thousand in the previous year[320]. Growth and Expansion - The company experienced record growth for the years ended December 31, 2018, and 2017, driven by market expansion through organic growth and acquisitions[274]. - Total assets increased to $1.35 billion, up $298.4 million or 28.3% from December 31, 2017[275]. - Total loans increased by $248.1 million, or 27.9%, from December 31, 2017 to December 31, 2018[275]. - Total deposits rose by $234.3 million, or 25.2%, from December 31, 2017 to December 31, 2018[275]. - The company may face challenges in retaining key employees, which could adversely affect its ability to execute business strategy and growth[166][167]. - Future expansion or acquisition activities may not prove profitable or enhance shareholder value, with risks associated with integration and customer retention[175][176]. Operational Risks - The company may face substantial risks and uncertainties when implementing new lines of business or products, which could adversely affect its financial condition and results of operations[180]. - The company relies on the accuracy of information provided by customers and counterparties, and misleading information could negatively impact its financial condition and reputation[181]. - The company depends on third-party information technology and telecommunications systems, and failures in these systems could disrupt operations and adversely affect financial condition[182]. - Cybersecurity risks and potential security breaches could lead to significant financial loss and harm to the company's reputation[185]. - The company’s risk management framework may not effectively mitigate risks, potentially leading to unexpected losses[189]. - Environmental risks associated with foreclosed real estate assets could lead to substantial remediation costs and negatively affect the company's financial condition[197]. - Legal and regulatory actions could result in significant fines and increased expenses, adversely affecting the company's business operations and reputation[200]. Interest Rate Risk - The company's net interest income is projected to increase by 1.0% in a scenario of a 100 basis point rate increase and by 2.7% in a 400 basis point increase over one year[383]. - Over a two-year horizon, net interest income is expected to rise by 3.5% in a 100 basis point increase scenario and by 10.8% in a 400 basis point increase scenario[383]. - The asset/liability position was asset sensitive as of December 31, 2018, indicating a favorable response to rising interest rates[383]. - The company employs an independent consulting firm to model interest rate sensitivity, using a net interest income simulation model as the primary tool[380]. - Stress testing of the balance sheet and net interest income is conducted using instantaneous parallel shock movements in the yield curve of 100 to 400 basis points[381]. - All interest rate risk stress tests measures were within the board policy established limits for each increased rate scenario as of December 31, 2018[383]. Noninterest Income and Expenses - Noninterest income decreased by $1.3 million to $1.7 million for the year ended December 31, 2018[279]. - Noninterest expense increased by $7.1 million to $26.4 million for the year ended December 31, 2018, primarily due to acquisition-related expenses[279]. - Total non-interest expense increased to $26.4 million in 2018 from $19.3 million in 2017, with salaries and benefits expense rising by $2.3 million[304]. Investment Securities - As of December 31, 2018, the fair value of the company's investment securities portfolio was approximately $125.3 million, which is subject to fluctuations due to external factors[205]. - The fair value of available-for-sale investment securities increased to $123.5 million at December 31, 2018, up by $7.6 million or 6.5% from $116.0 million at December 31, 2017[334]. - The total investment securities portfolio was $128.4 million at December 31, 2018, compared to $119.9 million at December 31, 2017[340]. - Mortgage-backed securities comprised 89.05% of available-for-sale securities, totaling $114.4 million at December 31, 2018[340]. - The weighted average yield for held-to-maturity securities was 2.91% as of December 31, 2018[344].