FVCBankcorp(FVCB) - 2025 Q3 - Quarterly Report

Financial Performance - Net income for Q3 2025 was $5.6 million, or $0.31 diluted earnings per share, representing a 19% increase from $4.7 million, or $0.25 diluted earnings per share in Q3 2024[162]. - For the nine months ended September 30, 2025, net income was $16.4 million, or $0.90 diluted earnings per share, compared to $10.2 million, or $0.55 diluted earnings per share in the same period of 2024[165]. - Core operating earnings for the nine months ended September 30, 2025, were $16.3 million, up from $12.6 million in 2024, representing a 29.4% increase[168]. - Diluted core operating earnings per share for the nine months ended September 30, 2025, were $0.89, compared to $0.68 in 2024, an increase of 30.9%[169]. Interest Income and Expenses - Net interest income increased by $1.8 million, or 13%, to $16.0 million for Q3 2025 compared to $14.2 million in Q3 2024[163]. - Net interest income for the nine months ended September 30, 2025 was $46.8 million, an increase of $6.2 million, or 15%, from $40.7 million in the same period of 2024[166]. - Total interest income increased by $594 thousand, or 2%, to $29.8 million for the three months ended September 30, 2025, compared to $29.2 million in 2024[182]. - Interest expense on average interest-bearing deposits decreased by $813 thousand to $38.8 million for the nine months ended September 30, 2025, compared to $39.6 million for the same period in 2024[200]. Credit Losses and Provisions - Provision for credit losses for Q3 2025 was $375 thousand, compared to a $200 thousand release in Q3 2024[163]. - Provision for credit losses for the nine months ended September 30, 2025 was $680 thousand, compared to $6 thousand in the same period of 2024[167]. - The provision for credit losses was $375 thousand and $680 thousand for the three and nine months ended September 30, 2025, respectively, compared to a release of provision totaling $200 thousand and $6 thousand for the same periods in 2024[204]. Asset and Loan Performance - Total assets increased by $120.1 million to $2.32 billion as of September 30, 2025, compared to $2.20 billion at December 31, 2024[222]. - Total loans, net of fees, were $1.86 billion at September 30, 2025, a slight decrease from $1.87 billion at December 31, 2024[223]. - Average loans receivable decreased by $49.6 million to $1.83 billion for the three months ended September 30, 2025, compared to $1.88 billion in 2024[183]. - Commercial and industrial loans increased by 15% to $386.1 million at September 30, 2025, from $336.7 million at December 31, 2024[225]. Deposits and Equity - Total deposits rose by $107.3 million to $1.98 billion at September 30, 2025, up from $1.87 billion at December 31, 2024[222]. - Core deposits, excluding wholesale deposits, rose by $122.2 million, or 8%, for the nine months ended September 30, 2025[257]. - Total shareholders' equity at September 30, 2025, was $249.8 million, an increase of $14.5 million from $235.4 million at December 31, 2024[268]. - Common equity tier 1 capital ratio was 14.78% at September 30, 2025, exceeding the minimum requirement of 7.00%[273]. Noninterest Income and Expenses - Noninterest income rose to $1.0 million in Q3 2025, up $218 thousand, or 27%, from $815 thousand in Q3 2024[163]. - Noninterest income for the nine months ended September 30, 2025 was $2.7 million, an increase of $630 thousand, or 30%, from $2.1 million in the same period of 2024[167]. - Total noninterest expense was $9.5 million for the three months ended September 30, 2025, an increase of $277 thousand, or 3%, compared to $9.2 million for the same period in 2024[216]. Tax and Effective Rates - The effective tax rate for the three months ended September 30, 2025, was 22.7%, compared to 22.6% for the same period in 2024[219]. - The provision for income taxes for the nine months ended September 30, 2025, was $4.4 million, down from $5.8 million for the same period in 2024, which included $2.4 million in taxes related to the surrender of BOLI policies[220]. Liquidity and Contingency Plans - The Bank has established a formal liquidity contingency plan to manage liquidity effectively and stress test under various scenarios[286]. - Total liquidity in use as of September 30, 2025, included $130 million in FHLB secured borrowings[283]. - The liquidity management program aims to ensure sufficient resources to meet the demands of depositors and borrowers[278].