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].
FVCBankcorp(FVCB) - 2025 Q1 - Quarterly Report