FVCBankcorp(US:FVCB)2024-08-13 19:24Financial Performance - Net income for the three months ended June 30, 2024, was $4.2 million, or $0.23 diluted earnings per share, consistent with the same period in 2023 [155]. - For the six months ended June 30, 2024, net income was $5.5 million, or $0.30 diluted earnings per share, compared to $4.9 million, or $0.27 diluted earnings per share for the same period in 2023 [157]. - Net interest income decreased by $717 thousand, or 5%, to $13.7 million for the three months ended June 30, 2024, compared to $14.4 million for the same period in 2023 [155]. - Net interest income for the six months ended June 30, 2024, was $26.5 million, a decrease of $1.9 million, or 7%, from $28.4 million in 2023 [158]. - Non-interest income for the six months ended June 30, 2024, was $1.3 million, compared to a loss of $3.7 million for the same period in 2023 [158]. - Noninterest expense decreased by $592 thousand, or 3%, to $17.6 million for the six months ended June 30, 2024, compared to $18.2 million for the same period in 2023 [158]. Interest Income and Expense - Total interest income decreased by $256 thousand, while the average rate increased by $1,023 thousand, resulting in a net increase of $767 thousand in interest income compared to the previous year [171]. - Interest expense decreased by $1,230 thousand, with total interest expense for the period being $14,301 thousand, compared to $12,815 thousand in the same quarter of the previous year [172]. - The yield on interest-earning assets increased by 38 basis points to 5.27% in Q2 2024 compared to 4.89% in Q2 2023 [174]. - The cost of interest-bearing deposits increased by 54 basis points to 3.65% in Q2 2024 from 3.11% in Q2 2023 [174]. - Interest income increased by $769 thousand, or 3%, to $28.0 million in Q2 2024 compared to $27.2 million in Q2 2023 [174]. Credit Losses and Allowance - The allowance for credit losses (ACL) is maintained at a level representing management's best estimate of expected losses in the loan portfolio [139]. - Provision for credit losses was $206 thousand for the three months ended June 30, 2024, down from $618 thousand in the same period of 2023 [155]. - Provision for credit losses was recorded at $206 thousand for both the three and six months ended June 30, 2024, compared to $618 thousand and $860 thousand for the same periods in 2023 [189]. - Nonperforming loans totaled $3.2 million, or 0.13% of total assets, for the three months ended June 30, 2024, compared to $1.8 million, or 0.08%, at December 31, 2023 [190]. - The allowance for credit losses on loans was $19,208 thousand at June 30, 2024, compared to $18,871 thousand at December 31, 2023, indicating a slight increase in reserves [222]. Loans and Deposits - Total loans increased to $1,882,342 thousand with interest income of $26,457 thousand, yielding an average rate of 5.62% for the three months ended June 30, 2024, compared to $1,867,813 thousand and $24,986 thousand at 5.35% for the same period in 2023 [168]. - Total deposits rose by 7%, or $123.5 million, to $1.97 billion at June 30, 2024, from $1.85 billion at December 31, 2023 [200]. - Average interest-bearing deposits decreased by $127.3 million to $1.42 billion in Q2 2024 compared to $1.55 billion in Q2 2023 [174]. - Noninterest-bearing deposits were $373.8 million at June 30, 2024, representing 19% of total deposits [232]. - Core deposits, excluding wholesale deposits, increased by $118.9 million, or 7%, from December 31, 2023 [232]. Capital and Liquidity - Total stockholders' equity increased by $9.4 million to $226.5 million at June 30, 2024, with net income contributing $5.5 million to this increase [240]. - Total risk-based capital at June 30, 2024, was $267.956 million, representing a ratio of 14.13%, exceeding the minimum requirement of 10.50% [244]. - Liquidity position improved with liquid assets totaling $326.7 million at June 30, 2024, or 14% of total assets, up from $232.1 million or 11% at December 31, 2023 [249]. - The estimated amount of total uninsured deposits was $643.9 million, or 32.7% of total deposits, as of June 30, 2024 [234]. - The effective duration of the investment securities portfolio was slightly over five years, consistent with the industry average [224]. Investment and Market Position - The company made an investment of $20.4 million in Atlantic Coast Mortgage, LLC, acquiring a 28.7% ownership interest [135]. - The company provides a warehouse lending facility to Atlantic Coast Mortgage, which includes a construction-to-permanent financing line [135]. - The company’s approach to market features competitive customized financial services offered in a personal relationship context [134]. - The average yield on investment securities was reported at 2.10% for Q2 2024, compared to 1.90% in Q2 2023, indicating an improvement in investment performance [168]. - The fair value of the investment securities available-for-sale decreased by $9.4 million, or 5%, to $162.2 million as of June 30, 2024, from $171.6 million at December 31, 2023 [223].