Financial Performance - Net income for 2024 was $15.1 million, a significant increase from $3.8 million in 2023, with commercial bank operating earnings rising to $17.4 million from $16.3 million[222]. - Net income for 2024 was $15.1 million, or $0.82 per diluted common share, compared to $3.8 million, or $0.21 per diluted common share in 2023[229]. - Return on average assets improved to 0.69% for 2024, up from 0.17% in 2023, and return on average equity increased to 6.64% from 1.82%[224]. - Noninterest income for 2024 was $2.5 million, a recovery from a loss of $13.4 million in 2023, primarily due to prior year losses on securities[222]. - Noninterest income for 2024 was $2.5 million, a significant recovery from a loss of $13.4 million in 2023, primarily due to previous losses on available-for-sale securities[230]. - Total noninterest income for the year ended December 31, 2024 was $2.5 million, compared to a loss of $13.4 million for the same period in 2023, marking a significant recovery[256]. Asset and Loan Growth - Total assets increased to $2.20 billion, up $8.4 million from December 31, 2023[222]. - Total loans increased by $41.7 million, or 2%, with nonperforming loans at 0.58% of total assets as of December 31, 2024, compared to 0.08% in 2023[222]. - Loans receivable increased by $41.7 million, or 2%, to $1.87 billion at December 31, 2024, from $1.83 billion at December 31, 2023[267]. - Average loans receivable increased by $21.2 million to $1.87 billion for the year ended December 31, 2024, with the yield on average loans rising 39 basis points to 5.71%[242]. - Commercial and industrial loans increased by $116.8 million, or 53%, to $336.7 million at December 31, 2024, from $219.9 million at December 31, 2023[269]. Interest Income and Expense - Net interest income rose by $1.2 million, or 2%, to $55.6 million, with a net interest margin of 2.62%, an increase of 13 basis points from 2023[222]. - Net interest income increased by $1.2 million to $55.6 million in 2024, up from $54.4 million in 2023[230]. - Total interest income rose by $6.7 million, or 6%, to $113.3 million for the year ended December 31, 2024, compared to $106.6 million for 2023[241]. - Interest income on loans increased by $8.3 million, while interest expense on deposits rose by $5.9 million in 2024 compared to 2023[222]. Noninterest Expense and Efficiency - Noninterest expense decreased by $842 thousand, or 2%, to $35.8 million, attributed to reduced staffing and process improvements[222]. - Noninterest expense decreased by $842 thousand, or 2%, to $35.8 million in 2024, driven by a reduction in salaries and benefits[231]. - Total noninterest expense decreased by $1.0 million, or 2.7%, to $35.8 million in 2024 from $36.7 million in 2023[262]. - Salaries and employee benefits expense decreased by $1.9 million, or 9.2%, to $18.8 million in 2024 compared to $20.6 million in 2023, primarily due to reduced staffing[263]. - The efficiency ratio improved significantly to 61.63% in 2024 from 89.36% in 2023[227]. Credit Quality - The provision for credit losses was $6 thousand in 2024, down from $132 thousand in 2023, reflecting improved credit quality[222]. - Nonperforming loans totaled $12.9 million, or 0.58% of total assets, at December 31, 2024, compared to $1.8 million, or 0.08%, at December 31, 2023[251]. - The allowance for credit losses was $18.1 million at December 31, 2024, down from $18.9 million at December 31, 2023, with the allowance as a percent of total loans at 0.97%[250]. - The allowance for credit losses on loans was $18.129 million as of December 31, 2024, compared to $18.871 million in 2023, indicating a reduction of 3.9%[295]. - The net charge-offs for the total loan portfolio in 2024 were $840 thousand, with a percentage of net charge-offs to average loans outstanding during the year at 0.04%[293]. Deposits and Equity - Total deposits grew to $1,870,605 thousand in 2024, compared to $1,845,292 thousand in 2023[227]. - Total deposits increased by $25.3 million, or 1%, to $1.87 billion at December 31, 2024, from $1.85 billion at December 31, 2023[265]. - Total shareholders' equity increased by $18.2 million to $235.4 million at December 31, 2024, with net income contributing $15.1 million to this increase[318]. - The common equity tier 1 capital ratio was 13.74% at December 31, 2024, exceeding the minimum requirement of 7.00%[324]. - Estimated total uninsured deposits were $763.1 million, or 40.8% of total deposits, at December 31, 2024[309]. Investment Securities - The fair value of investment securities available-for-sale decreased by $15.1 million, or 9%, from $170.6 million in 2023 to $156.5 million in 2024[297]. - The investment securities portfolio primarily consists of AAA-rated securities, indicating a low degree of investment risk[298]. - The effective duration of the investment securities portfolio is slightly over five years, aligning with the industry average[298]. - Average investment securities decreased by $79.0 million to $208.4 million for the year ended December 31, 2024, with the yield on these securities increasing 14 basis points to 2.09%[243]. Liquidity and Funding - Liquid assets totaled $247.4 million at December 31, 2024, representing 11% of total assets, an increase from $232.1 million at December 31, 2023[330]. - The Bank has secured borrowings of $130 million from the FHLB as of December 31, 2024[333]. - The Bank maintains a liquidity contingency plan and stress tests its liquidity position under various scenarios[334]. - The Bank's liquidity could be impaired by market disruptions or unforeseen cash outflows, but it currently believes it has a healthy liquidity position[335]. - The maximum exposure to credit loss from off-balance-sheet financial instruments is represented by the contractual amounts of those instruments[338].
FVCBankcorp(FVCB) - 2024 Q4 - Annual Report