FVCBankcorp(FVCB) - 2025 Q3 - Quarterly Results

Press Release Overview This section provides contact information and a headline summary of FVCBankcorp, Inc.'s financial performance for the third quarter and year-to-date 2025 Contact Information The press release provides contact details for David W. Pijor, Esq., Chairman and Chief Executive Officer, and Patricia A. Ferrick, President, for further information - Contact information for David W. Pijor, Esq., Chairman and Chief Executive Officer, and Patricia A. Ferrick, President, is provided for inquiries[2] Headline Summary FVCBankcorp, Inc. announced a 19% increase in quarterly net income and a 61% increase in year-to-date net income for the period ended September 30, 2025 - FVCBankcorp, Inc. reported a significant increase in net income for both the quarter and year-to-date periods ending September 30, 2025[2] | Metric | Q3 2025 | Q3 2024 | Change ($) | Change (%) | | :----- | :------ | :------ | :--------- | :--------- | | Net Income | $5.6 million | $4.7 million | $910 thousand | 19% | | Diluted EPS | $0.31 | $0.25 | - | 24% | Third Quarter 2025 Financial Highlights This section details FVCBankcorp, Inc.'s financial performance for the third quarter of 2025, covering earnings, margin, deposits, credit quality, and capital position Core Operating Earnings Core operating earnings, a non-GAAP measure excluding nonrecurring gains, increased to $5.6 million for Q3 2025, up 19% from the prior year quarter and slightly from the linked quarter | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YoY Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :------------- | | Core Operating Earnings | $5.6 million | $5.5 million | $4.7 million | 19% | | Net Income (GAAP) | $5.6 million | $5.7 million | $4.7 million | 19% | Net Interest Margin and Income Improvement Net interest margin improved for the seventh consecutive quarter to 2.91% in Q3 2025, a 10% increase year-over-year, driving a 13% increase in net interest income to $16.0 million | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YoY Change (%) | | :---------------- | :------ | :------ | :------ | :------------- | | Net Interest Margin | 2.91% | 2.90% | 2.64% | 10% (27 bps) | | Net Interest Income | $16.0 million | $15.7 million | $14.2 million | 13% ($1.8 million) | Core Deposit Growth Core deposits, excluding wholesale deposits, grew by $122.2 million, or 10% annualized, to $1.74 billion at September 30, 2025, demonstrating strong customer base expansion | Metric | Sep 30, 2025 | Dec 31, 2024 | Change ($) | Annualized Change (%) | | :------------ | :----------- | :----------- | :--------- | :-------------------- | | Core Deposits | $1.74 billion | $1.62 billion | $122.2 million | 10% | | Total Deposits | $1.98 billion | $1.90 billion | $74.4 million | 4% (QoQ) | Credit Quality The Company maintained strong credit quality, with loans past due 30 days or more decreasing by 68% to $880 thousand and nonperforming loans decreasing by 14% to $11.1 million at September 30, 2025 | Metric | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | Change (QoQ) | Change (YoY) | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Loans past due 30+ days | $880 thousand | $2.8 million | - | -68% | - | | Nonperforming Loans | $11.1 million | - | $12.9 million | - | -14% | | Nonperforming Loans to Total Assets | 0.48% | - | 0.58% | - | -0.10% | Capital Position FVCbank remained well-capitalized, with its total risk-based capital ratio increasing to 15.77% and tangible common equity to tangible assets ratio improving to 11.04% at September 30, 2025 | Metric | Sep 30, 2025 | Dec 31, 2024 | Change (bps) | | :------------------------------------ | :----------- | :----------- | :----------- | | Total Risk-Based Capital to Risk-Weighted Assets | 15.77% | 14.73% | +104 | | Tangible Common Equity to Tangible Assets | 11.04% | 10.87% | +17 | Quarterly Cash Dividend The Company declared a quarterly cash dividend of $0.06 per common share, payable on November 17, 2025, reflecting a commitment to shareholder value - A quarterly cash dividend of $0.06 per common share was declared on October 16, 2025, payable November 17, 2025, totaling approximately $1.1 million[4][5] Year-to-Date 2025 Financial Highlights This section summarizes FVCBankcorp, Inc.'s year-to-date financial performance for 2025, focusing on net income, core operating earnings, and pre-tax pre-provision operating earnings Net Income and Core Operating Earnings For the nine months ended September 30, 2025, net income surged by 61% to $16.4 million, while core operating earnings (non-GAAP) increased by 30% to $16.3 million, excluding nonrecurring items | Metric | 9M 2025 | 9M 2024 | Change ($) | Change (%) | | :-------------------------- | :---------- | :---------- | :--------- | :--------- | | Net Income (GAAP) | $16.4 million | $10.2 million | $6.2 million | 61% | | Diluted EPS (GAAP) | $0.90 | $0.55 | - | 64% | | Core Operating Earnings (Non-GAAP) | $16.3 million | $12.6 million | $3.7 million | 30% | - Nonrecurring items included a $154 thousand gain from unwinding interest rate swaps in Q2 2025 and a $2.4 million tax provision increase in 2024 related to BOLI surrender[6] Pre-Tax Pre-Provision Operating Earnings Pre-tax pre-provision operating earnings (non-GAAP) increased 6% quarter-over-quarter to $7.6 million and 30% year-over-year to $7.6 million for Q3 2025, indicating strong underlying operational performance | Metric | Q3 2025 | Q2 2025 | Q3 2024 | QoQ Change (%) | YoY Change (%) | | :------------------------------------ | :---------- | :---------- | :---------- | :------------- | :------------- | | Pre-Tax Pre-Provision Operating Earnings | $7.6 million | $7.2 million | $5.8 million | 6% | 30% | Management Commentary Management highlighted continued earnings improvement, strong core deposit growth supporting future loan growth, disciplined risk management, and a commitment to shareholder value through dividends. Emphasis was also placed on technology solutions for efficiency and relationship banking for core deposit growth - Chairman and CEO David W. Pijor noted improved earnings metrics, 1.00% annualized return on average assets, and $122 million (8%) core deposit growth since December 31, 2024, supporting anticipated Q4 loan growth, also emphasizing disciplined loan growth and the approved quarterly cash dividend[9] - President Patricia A. Ferrick highlighted an improved efficiency ratio due to technology solutions and managed operating expenses, also focusing on core deposit growth through relationship banking and anticipated strong Q4 loan originations with positive margin impact from repricing loans[9] Statement of Condition (Balance Sheet Analysis) This section analyzes the Company's balance sheet, detailing changes in total assets, loans, investment securities, deposits, wholesale funding, shareholders' equity, and regulatory capital ratios Total Assets Total assets increased by $120.1 million, or 5%, to $2.32 billion at September 30, 2025, compared to December 31, 2024, and grew 4% from the linked quarter | Metric | Sep 30, 2025 | Dec 31, 2024 | Jun 30, 2025 | Change (YoY) | Change (QoQ) | | :---------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Assets | $2.32 billion | $2.20 billion | $2.24 billion | +5% | +4% | Loans Receivable Loans receivable, net of deferred fees, remained stable at $1.86 billion at September 30, 2025. The company originated $87.3 million in new loans during Q3 2025, with a weighted average rate of 7.97%, and $50 million of approved loans closed in October at 9.74% | Metric | Sep 30, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | | Loans Receivable, Net of Fees | $1.86 billion | $1.87 billion | $1.87 billion | - Q3 2025 loan originations totaled $87.3 million (weighted average rate 7.97%), while $84.0 million in existing loans paid off (weighted average rate 6.48%), with $50 million of new loans at a 9.74% weighted average rate closing in October[11] - The warehouse lending facility slightly decreased by $2.2 million to $50.3 million, with a weighted average yield of 6.31% for Q3 2025[12] Investment Securities Investment securities were $157.2 million at September 30, 2025, a slight increase from December 31, 2024, primarily due to a decrease in unrealized losses and security purchases, offset by principal repayments | Metric | Sep 30, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------ | :----------- | :----------- | :----------- | | Investment Securities | $157.2 million | $156.7 million | $165.3 million | - The increase in investment securities for the nine months ended September 30, 2025, was driven by an $8.5 million decrease in unrealized losses and $2.9 million in security purchases, partially offset by $10.9 million in principal repayments[13] Deposits Total deposits reached $1.98 billion at September 30, 2025, with core deposits increasing by $122.2 million, or 8%, for the nine months ended September 30, 2025. Noninterest-bearing deposits also grew by 5% quarter-over-quarter | Metric | Sep 30, 2025 | Dec 31, 2024 | Sep 30, 2024 | 9M Change (%) | | :---------------------- | :----------- | :----------- | :----------- | :------------ | | Total Deposits | $1.98 billion | $1.87 billion | $1.96 billion | +0.9% (YoY) | | Core Deposits | $1.74 billion | $1.62 billion | - | +8% (9M) | | Noninterest-Bearing Deposits | $374.4 million | $365.7 million | $357.0 million | +5% (QoQ) | - Reciprocal deposits through the IntraFi Network, considered core deposits, totaled $281.7 million at September 30, 2025, up from $269.7 million at December 31, 2024[14] Wholesale Funding Wholesale funding decreased by $15.0 million, or 5%, to $284.9 million at September 30, 2025, primarily due to core deposit growth allowing the unwinding of interest rate swaps | Metric | Sep 30, 2025 | Dec 31, 2024 | Change ($) | Change (%) | | :--------------- | :----------- | :----------- | :--------- | :--------- | | Wholesale Funding | $284.9 million | $299.9 million | -$15.0 million | -5% | | Wholesale Deposits | $234.9 million | $249.9 million | -$15.0 million | -6% | | Other Borrowed Funds | $50.0 million | $50.0 million | $0 | 0% | - The Company unwound $15 million of pay-fixed/receive floating interest rate swaps in Q2 2025, resulting in a $154 thousand gain recorded in non-interest income, driven by core deposit growth[15] Shareholders' Equity and Tangible Book Value Shareholders' equity increased by 6% to $249.8 million at September 30, 2025, primarily from earnings, despite share repurchases. Tangible book value per share also improved to $13.41 | Metric | Sep 30, 2025 | Dec 31, 2024 | Change ($) | Change (%) | | :---------------------- | :----------- | :----------- | :--------- | :--------- | | Shareholders' Equity | $249.8 million | $235.4 million | $14.5 million | +6% | | Tangible Book Value Per Share | $13.41 | $12.52 | $0.89 | +7.1% | | Tangible Book Value Per Share (excl. AOCI) | $14.57 | $13.80 | $0.77 | +5.6% | - Earnings contributed $16.4 million to shareholders' equity, while 415,000 shares were repurchased for $4.6 million in Q2 2025, and accumulated other comprehensive loss decreased by $2.6 million due to increased fair value of available-for-sale investment securities[16] Regulatory Capital Ratios The Bank remained well-capitalized, with all regulatory capital ratios exceeding required thresholds. The total risk-based capital ratio was 15.77%, common equity tier 1 risk-based capital ratio was 14.78%, and tier 1 leverage ratio was 12.13% at September 30, 2025 | Capital Ratio | Sep 30, 2025 | Dec 31, 2024 | | :------------------------------------ | :----------- | :----------- | | Total Risk-Based Capital Ratio | 15.77% | 14.73% | | Common Equity Tier 1 Risk-Based Capital Ratio | 14.78% | 13.74% | | Tier 1 Leverage Ratio | 12.13% | 11.74% | Asset Quality Review This section reviews the Company's asset quality, including provision for credit losses, nonperforming loans, and the composition of its loan portfolio Provision for Credit Losses The Company recorded a provision for credit losses of $375 thousand for Q3 2025 and $680 thousand for the nine months ended September 30, 2025. The Allowance for Credit Losses (ACL) to total loans remained stable at 0.97% | Metric | Q3 2025 | 9M 2025 | Q3 2024 | 9M 2024 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | | Provision for Credit Losses | $375 thousand | $680 thousand | -$200 thousand (release) | $6 thousand | | ACL to Total Loans | 0.97% | - | 0.97% | - | | Net Charge-offs (annualized) | $498 thousand (0.11%) | $876 thousand (0.06%) | -$63 thousand (-0.01%) | -$68 thousand (-0.01%) | - Net charge-offs for Q3 2025 were primarily from one unsecured small business loan, not indicative of systemic credit quality issues[19] Nonperforming Loans and Assets Nonperforming loans decreased by 14% to $11.1 million, or 0.48% of total assets, at September 30, 2025, driven by payoffs and a decrease in past due loans. Watchlist loans increased slightly | Metric | Sep 30, 2025 | Dec 31, 2024 | Change ($) | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | :--------- | | Nonperforming Loans | $11.1 million | $12.8 million | -$1.7 million | -14% | | Nonperforming Loans to Total Assets | 0.48% | 0.58% | - | -0.10% | | Total Watchlist Loans | $15.1 million | $14.5 million | +$0.6 million | +4% | - The decrease in nonperforming loans was due to $902 thousand in nonaccrual loan payoffs and a $738 thousand decrease in loans past due over 90 days[20] - The Company had no other real estate owned at September 30, 2025, and December 31, 2024[21] Loan Portfolio Composition Commercial real estate loans constituted 54% of total loans, and construction loans 9%. The portfolio is diversified by asset type and geographic concentration, with non-owner occupied commercial real estate loans decreasing by 8% | Loan Type | Sep 30, 2025 (Amount) | % of Total Loans | | :-------------------------- | :-------------------- | :--------------- | | Commercial Real Estate Loans | $994.6 million | 54% | | Construction Loans | $170.3 million | 9% | | Office Properties | $105.5 million | 6% | | Retail Properties | $232.4 million | 13% | | Multi-family Properties | $184.7 million | 10% | | Non-Owner Occupied Commercial Real Estate | $781.0 million | - | | Non-Owner Occupied Commercial Real Estate (Dec 31, 2024) | $850.1 million | - | - The commercial real estate portfolio, including construction loans, is diversified by asset type and geographic concentration, with a disciplined management approach to monitor and mitigate loan concentrations[22][23] Commercial Real Estate Loan Stratification The detailed stratification of commercial real estate and construction loans at September 30, 2025, shows diversification across asset classes (Office, Retail, Multi-family, Industrial, Hotels, Mixed Use, Land, 1-4 Family construction) and strong credit quality with conservative underwriting | Asset Class | Owner Occupied Principal ($ thousands) | Non-Owner Occupied Principal ($ thousands) | Construction Principal ($ thousands) | Total Bank Owned Principal ($ thousands) | % of Total Loans | | :-------------------------- | :----------------------------------- | :--------------------------------------- | :----------------------------------- | :------------------------------------- | :--------------- | | Office | 22,978 | 69,586 | 12,961 | 105,525 | 6% | | Retail | 6,198 | 226,169 | 0 | 232,367 | 13% | | Multi-family | 0 | 146,626 | 38,026 | 184,652 | 10% | | Industrial | 123,611 | 176,879 | 8,015 | 308,505 | 17% | | Hotels | 0 | 53,778 | 7,679 | 61,457 | 3% | | Mixed Use | 6,833 | 48,833 | 0 | 55,666 | 3% | | Land | 0 | 625 | 37,141 | 37,766 | 2% | | 1-4 Family construction | 0 | 0 | 47,852 | 47,852 | 2% | | Other (incl. net deferred fees) | 53,952 | 58,484 | 18,578 | 131,014 | 7% | | Total | 213,572 | 780,980 | 170,252 | 1,164,804 | 63% | - The commercial real estate loans exhibit strong credit quality, with only one nonaccrual loan totaling $10.1 million at September 30, 2025, and the Company believes it has appropriately reserved for credit concerns due to conservative underwriting and ongoing monitoring[25] Minority Investment in Mortgage Banking Operation (ACM) Income from the Company's minority investment in Atlantic Coast Mortgage, LLC (ACM) significantly increased for both the quarter and nine months ended September 30, 2025, driven by ACM's strategic growth and geographic diversification initiatives, resulting in a 14% increase in loan originations | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | Income from Investment in ACM | $508 thousand | $278 thousand | $1.0 million | $426 thousand | | Loan Originations (ACM, 9M YoY) | - | - | +14% | - | - The investment in ACM is reflected as a nonconsolidated minority investment, with income included in non-interest income[27] Income Statement Analysis This section analyzes the Company's income statement, detailing net income, net interest income, interest income and expense components, noninterest income and expense, efficiency ratio, and income tax expense Net Income Performance Net income for Q3 2025 increased 19% year-over-year to $5.6 million but slightly decreased 2% from the linked quarter due to increased provision for credit losses and a nonrecurring gain in Q2 2025 | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YoY Change (%) | QoQ Change (%) | | :--------- | :---------- | :---------- | :---------- | :------------- | :------------- | | Net Income | $5.6 million | $5.7 million | $4.7 million | 19% | -2% | | Diluted EPS | $0.31 | $0.31 | $0.25 | 24% | 0% | | Core Operating Earnings | $5.6 million | $5.5 million | $4.7 million | 19% | +2% | Net Interest Income and Margin Net interest income increased 13% year-over-year to $16.0 million for Q3 2025, and net interest margin improved to 2.91%, marking the seventh consecutive quarter of margin expansion, driven by improved yields on earning assets and lower cost of funds | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YoY Change (%) | QoQ Change (%) | | :---------------- | :---------- | :---------- | :---------- | :------------- | :------------- | | Net Interest Income | $16.0 million | $15.8 million | $14.2 million | 13% | 2% | | Net Interest Margin | 2.91% | 2.90% | 2.64% | +27 bps | +1 bps | | Cost of Funds | 2.78% | 2.79% | 3.09% | -31 bps | -1 bps | - The increase in net interest income was primarily due to a decrease in deposit interest expense as deposits reprice to lower rates, with the linked-quarter increase due to higher earning assets from deposit growth[29] - For the nine months ended September 30, 2025, net interest income increased 15% to $46.8 million, and net interest margin increased 31 basis points to 2.88% compared to the prior year period[35][59] Interest Income Components Total interest income increased 2% year-over-year to $29.8 million for Q3 2025. Loan interest income slightly decreased due to lower average loans, but loan yields improved to 5.90% | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YoY Change (%) | QoQ Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :------------- | :------------- | | Total Interest Income | $29.8 million | $29.4 million | $29.2 million | 2% | 1% | | Loan Interest Income | $27.0 million | $27.0 million | $27.4 million | -1% | 0% | | Loan Yields | 5.90% | 5.80% | 5.83% | +7 bps | +10 bps | | Yield on Earning Assets | 5.46% | 5.39% | 5.46% | 0 bps | +7 bps | - The Company anticipates continued increases in loan yields due to scheduled repricings, with $86.8 million in fixed-rate commercial loans (4.74% W.A.R.) and $8.0 million in variable-rate commercial loans (3.83% W.A.R.) expected to reprice within 12 months[32] - For the nine months ended September 30, 2025, interest income increased 4% to $87.8 million[35][59] Interest Expense Components Interest expense decreased 8% year-over-year to $13.8 million for Q3 2025, primarily due to lower deposit costs, despite an increase in average interest-bearing deposits. The cost of deposits decreased to 2.73% | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YoY Change (%) | QoQ Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :------------- | :------------- | | Total Interest Expense | $13.8 million | $13.7 million | $15.0 million | -8% | 1% | | Interest Expense on Deposits | $13.1 million | $13.0 million | $14.2 million | -8% | 1% | | Cost of Deposits | 2.73% | 2.74% | 3.04% | -31 bps | -1 bps | - For the nine months ended September 30, 2025, interest expense decreased 6% to $41.0 million[35][59] Noninterest Income Components Total noninterest income for Q3 2025 increased 27% year-over-year to $1.0 million, primarily driven by a significant increase in income from the minority interest in ACM and higher service charges on deposit accounts | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YoY Change (%) | QoQ Change (%) | | :-------------------------------- | :---------- | :---------- | :---------- | :------------- | :------------- | | Total Noninterest Income | $1.0 million | $1.0 million | $0.8 million | 27% | 2.5% | | Income from Minority Interest in ACM | $508 thousand | $351 thousand | $278 thousand | 83% | 45% | | Service Charges on Deposit Accounts | $321 thousand | $282 thousand | $301 thousand | 7% | 14% | | Gain on Termination of Derivative Instruments | $0 | $154 thousand | $0 | - | -100% | | BOLI Income | $73 thousand | $71 thousand | $70 thousand | 4% | 3% | - For the nine months ended September 30, 2025, total noninterest income increased 30% to $2.7 million, with ACM income up 134.7% and BOLI income down 34% due to 2024 surrenders[38][59] Noninterest Expense Components Noninterest expense increased 3% year-over-year to $9.5 million for Q3 2025, mainly due to higher salaries and benefits from increased incentive accruals and filled positions, and increased internet banking and software expense | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YoY Change (%) | QoQ Change (%) | | :-------------------------- | :---------- | :---------- | :---------- | :------------- | :------------- | | Total Noninterest Expense | $9.5 million | $9.4 million | $9.2 million | 3% | 0.5% | | Salaries and Employee Benefits | $5.1 million | $5.0 million | $4.9 million | 5% | 2% | | Internet Banking and Software Expense | $890 thousand | $864 thousand | $706 thousand | 26% | 3% | | Data Processing and Network Admin | $559 thousand | $550 thousand | $727 thousand | -23% | 2% | - Full-time equivalent employees increased from 111 at September 30, 2024, to 118 at September 30, 2025[39] - For the nine months ended September 30, 2025, total noninterest expense increased less than 5% to $28.0 million[41][59] Efficiency Ratio The efficiency ratio improved to 55.5% for Q3 2025, down from 61.2% in the prior year quarter, indicating better operational efficiency | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :--------------- | :------ | :------ | :------ | | Efficiency Ratio | 55.5% | 56.2% | 61.2% | | 9M 2025 | 56.6% | - | 62.7% | Income Tax Expense Income tax expense for Q3 2025 was $1.6 million, an increase from $1.4 million in Q3 2024. For the nine months ended September 30, 2025, it decreased to $4.4 million from $5.8 million in 2024, which included a $2.4 million charge related to BOLI surrender | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :---------------- | :---------- | :---------- | :---------- | :---------- | | Income Tax Expense | $1.6 million | $1.4 million | $4.4 million | $5.8 million | | BOLI-related Tax (2024) | - | - | - | $2.4 million | | YoY Change (Q3) | +20.2% | - | - | - | | YoY Change (9M) | -23.2% | - | - | - | Company Information This section provides an overview of FVCBankcorp, Inc. and includes a cautionary note regarding forward-looking statements and associated risks About FVCBankcorp, Inc. FVCBankcorp, Inc. is the holding company for FVCbank, a Virginia-chartered community bank with $2.32 billion in assets, serving commercial businesses and nonprofits in the greater Baltimore and Washington, D.C. metropolitan areas through 8 full-service offices - FVCBankcorp, Inc. is the holding company for FVCbank, a $2.32 billion asset-sized Virginia-chartered community bank[44] - FVCbank serves commercial businesses, nonprofit organizations, professional service entities, their owners, and employees in the greater Baltimore and Washington, D.C. metropolitan areas[44] - The bank is headquartered in Fairfax, Virginia, and operates 8 full-service offices across Virginia, Washington, D.C., and Maryland[44] Cautionary Note About Forward-Looking Statements This section warns that the press release contains forward-looking statements subject to various known and unknown risks and uncertainties, including general economic conditions, interest rate environment, credit quality, market conditions, regulatory changes, and competitive pressures, which could cause actual results to differ materially - The press release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially[46] - Key risk factors include general business and economic conditions (e.g., inflation, real estate valuations, unemployment), concentration in the Washington, D.C. metropolitan area, interest rate environment, liquidity requirements, credit losses, real estate market downturns, market conditions, and regulatory changes[46] - Other risks include investment securities portfolio risks, potential impairment charges, exposure to fraud and cyber-crime, accounting policy changes, competitive pressures, acquisition risks, legal proceedings, geopolitical conditions, and natural disasters[46][47] Financial Tables This section provides detailed financial tables, including selected financial data, consolidated statements of condition and income, and average statements of condition with yields Selected Financial Data This section presents unaudited selected financial data, including balances, results of operations, per share data, and key ratios, for various periods, along with non-GAAP reconciliations for core operating earnings and tangible book value | Metric | Sep 30, 2025 ($ thousands) | Sep 30, 2024 ($ thousands) | Jun 30, 2025 ($ thousands) | Dec 31, 2024 ($ thousands) | | :------------------------------------ | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Total assets | 2,319,052 | 2,293,282 | 2,237,250 | 2,198,950 | | Total loans, net of deferred fees | 1,858,422 | 1,874,946 | 1,869,098 | 1,870,235 | | Total deposits | 1,977,882 | 1,960,767 | 1,903,472 | 1,870,605 | | Total shareholders' equity | 249,804 | 230,830 | 243,163 | 235,354 | | Net income (3M) | 5,579 | 4,669 | 5,667 | 4,900 | | Net income (9M) | 16,411 | 10,164 | - | - | | Diluted EPS (3M) | $0.31 | $0.25 | $0.31 | $0.26 | | Diluted EPS (9M) | $0.90 | $0.55 | - | - | | Net interest margin (3M) | 2.91% | 2.64% | 2.90% | 2.77% | | Return on average assets (3M) | 1.00% | 0.85% | 1.02% | 0.90% | | Efficiency ratio (3M) | 55.50% | 61.19% | 56.22% | 58.58% | | Nonperforming loans | 11,068 | 3,556 | 10,529 | 12,823 | | Nonperforming loans to total assets | 0.48% | 0.16% | 0.47% | 0.58% | Summary Consolidated Statements of Condition This table provides a detailed breakdown of the Company's assets, liabilities, and shareholders' equity at September 30, 2025, June 30, 2025, December 31, 2024, and September 30, 2024, including percentage changes | Item | Sep 30, 2025 ($ thousands) | Jun 30, 2025 ($ thousands) | Dec 31, 2024 ($ thousands) | Sep 30, 2024 ($ thousands) | | :------------------------------------ | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Total Assets | 2,319,052 | 2,237,250 | 2,198,950 | 2,293,282 | | Loans, net of fees | 1,858,422 | 1,869,098 | 1,870,235 | 1,874,946 | | Total Deposits | 1,977,882 | 1,903,472 | 1,870,605 | 1,960,767 | | Noninterest-bearing Deposits | 374,414 | 356,208 | 365,666 | 357,028 | | Shareholders' Equity | 249,804 | 243,163 | 235,354 | 230,830 | Summary Consolidated Statements of Income This section presents the Company's consolidated statements of income for both three-month and nine-month periods, including non-GAAP reconciliations Three Months Ended This table provides a detailed breakdown of the Company's income statement for the three months ended September 30, 2025, June 30, 2025, and September 30, 2024, including non-GAAP reconciliations | Item | Sep 30, 2025 ($ thousands) | Jun 30, 2025 ($ thousands) | Sep 30, 2024 ($ thousands) | | :------------------------------------ | :------------------------- | :------------------------- | :------------------------- | | Net interest income | 16,033 | 15,759 | 14,214 | | Provision for credit losses | 375 | 105 | (200) | | Total noninterest income | 1,033 | 1,008 | 815 | | Total noninterest expense | 9,472 | 9,428 | 9,196 | | Net Income | 5,579 | 5,667 | 4,669 | | Diluted EPS | 0.31 | 0.31 | 0.25 | | Adjusted Net Income, core operating earnings (non-GAAP) | 5,579 | 5,548 | 4,669 | | Adjusted Pre-tax pre-provision income (non-GAAP) | 7,594 | 7,185 | 5,833 | Nine Months Ended This table provides a detailed breakdown of the Company's income statement for the nine months ended September 30, 2025, and September 30, 2024, including non-GAAP reconciliations | Item | Sep 30, 2025 ($ thousands) | Sep 30, 2024 ($ thousands) | | :------------------------------------ | :------------------------- | :------------------------- | | Net interest income | 46,844 | 40,676 | | Provision for credit losses | 680 | 6 | | Total noninterest income | 2,711 | 2,081 | | Total noninterest expense | 28,032 | 26,817 | | Net Income | 16,411 | 10,164 | | Diluted EPS | 0.90 | 0.55 | | Adjusted Net Income, core operating earnings (non-GAAP) | 16,292 | 12,550 | | Adjusted Pre-tax pre-provision income (non-GAAP) | 21,369 | 15,940 | Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities This section details average balances, interest income/expense, and average yields for earning assets and interest-bearing liabilities for both three-month and nine-month periods For the Three Months Ended This table presents average balances, interest income/expense, and average yields for earning assets and interest-bearing liabilities for the three months ended September 30, 2025, June 30, 2025, and September 30, 2024 | Item | Sep 30, 2025 (Avg Balance $ thousands) | Sep 30, 2025 (Avg Yield %) | Jun 30, 2025 (Avg Balance $ thousands) | Jun 30, 2025 (Avg Yield %) | Sep 30, 2024 (Avg Balance $ thousands) | Sep 30, 2024 (Avg Yield %) | | :------------------------------------ | :----------------------------------- | :------------------------- | :----------------------------------- | :------------------------- | :----------------------------------- | :------------------------- | | Total interest-earning assets | 2,186,727 | 5.46% | 2,182,180 | 5.39% | 2,142,155 | 5.46% | | Total loans | 1,829,587 | 5.90% | 1,862,488 | 5.80% | 1,879,152 | 5.83% | | Total interest-bearing liabilities | 1,604,860 | 3.41% | 1,603,385 | 3.42% | 1,573,551 | 3.80% | | Total interest-bearing deposits | 1,536,121 | 3.38% | 1,534,660 | 3.39% | 1,496,895 | 3.77% | | Net Interest Margin | - | 2.91% | - | 2.90% | - | 2.64% | For the Nine Months Ended This table presents average balances, interest income/expense, and average yields for earning assets and interest-bearing liabilities for the nine months ended September 30, 2025, and September 30, 2024 | Item | Sep 30, 2025 (Avg Balance $ thousands) | Sep 30, 2025 (Avg Yield %) | Sep 30, 2024 (Avg Balance $ thousands) | Sep 30, 2024 (Avg Yield %) | | :------------------------------------ | :----------------------------------- | :------------------------- | :----------------------------------- | :------------------------- | | Total interest-earning assets | 2,174,161 | 5.39% | 2,116,436 | 5.29% | | Total loans | 1,852,754 | 5.80% | 1,867,503 | 5.65% | | Total interest-bearing liabilities | 1,597,024 | 3.41% | 1,549,227 | 3.74% | | Total interest-bearing deposits | 1,528,303 | 3.38% | 1,441,505 | 3.67% | | Net Interest Margin | - | 2.88% | - | 2.57% |