FVCBankcorp(FVCB) - 2025 Q4 - Annual Report

Financial Performance - Net income for the year ended December 31, 2025, was $22.1 million, an increase of $7.0 million, or 46%, compared to $15.1 million in 2024[221] - Net income for the year ended December 31, 2025, was $22.1 million, or $1.21 per diluted common share, compared to $15.1 million, or $0.82 per diluted common share for 2024, reflecting a significant increase in profitability[229] - Noninterest income increased by $1.1 million, or 44%, to $3.6 million for the year ended December 31, 2025, compared to $2.5 million in 2024[221] - Noninterest income rose to $3.6 million for 2025, an increase of $1.1 million, or 44%, compared to $2.5 million in 2024, primarily driven by income from a minority investment[230] - Net interest income increased by $8.2 million, or 15%, to $63.8 million for the year ended December 31, 2025, compared to $55.6 million in 2024[221] - Net interest income for the year ended December 31, 2025 was $63.8 million, an increase of $8.2 million, or 15%, compared to $55.6 million for 2024[240] Asset and Loan Growth - Total assets increased to $2.29 billion at December 31, 2025, compared to $2.20 billion at December 31, 2024, an increase of $93.3 million[221] - Total loans increased by $71.0 million, or 4%, from December 31, 2024, to December 31, 2025, with nonperforming loans at 0.47% of total assets[221] - Total loans, net of fees, rose to $1.94 billion, an increase of $71.0 million or 4% from $1.87 billion in 2024[264] - Average loans receivable slightly decreased by $7.1 million to $1.86 billion for the year ended December 31, 2025, while the yield on average loans increased by 14 basis points to 5.85%[243] Deposit Growth - Total deposits rose by $126.7 million, or 7%, from December 31, 2024, to December 31, 2025, with noninterest-bearing deposits at $363.2 million[221] - Total deposits increased by $126.7 million, or 7%, to $2.00 billion at December 31, 2025, compared to $1.87 billion at December 31, 2024[263] - Noninterest-bearing demand deposits were $363.8 million at December 31, 2025, representing 18.2% of total deposits[304] - Core deposits, excluding wholesale deposits, rose by $91.6 million, or 6%, to $1.71 billion at December 31, 2025[304] - Wholesale deposits increased by $35.1 million, or 14%, to $285.0 million at December 31, 2025[305] Expense Management - Noninterest expense was $37.6 million for 2025, an increase of $1.8 million, or 5%, primarily due to increased salaries and benefits[221] - Noninterest expense was $37.6 million for 2025, an increase of $1.8 million, or 5%, from $35.8 million in 2024, mainly due to higher salaries and benefits[231] - Salaries and employee benefits expense increased by $1.4 million to $20.1 million, a rise of 7.3% from $18.8 million in 2024[261] Credit Quality - The provision for credit losses totaled $1.6 million in 2025, compared to $6 thousand in 2024, primarily due to an increase in total loans[221] - Nonperforming loans at December 31, 2025 totaled $10.9 million, or 0.48% of total assets, down from $12.9 million, or 0.58%, at December 31, 2024[251] - The ratio of nonperforming loans to total assets improved to 0.47% from 0.58% in 2024[271] - The allowance for credit losses on loans to NPLs increased to 172.86% at December 31, 2025, compared to 140.97% at December 31, 2024, indicating a more conservative approach to credit risk management[279] Capital and Equity - Total shareholders' equity at December 31, 2025, was $253.6 million, an increase of $18.2 million from $235.4 million at December 31, 2024[314] - The common equity tier 1 capital ratio was 14.37% at December 31, 2025, exceeding the minimum requirement of 7.00%[319] - Total risk-based capital was $296.6 million, representing a ratio of 15.38% at December 31, 2025, above the minimum requirement of 10.50%[319] - Tangible common equity increased to $246,305 thousand in 2025, up from $227,934 thousand in 2024, reflecting a stronger capital base[228] Investment and Securities - The investment securities portfolio's fair value decreased by $3.3 million, or 2%, to $153.2 million at December 31, 2025, from $156.5 million at December 31, 2024[294] - The effective duration of the investment securities portfolio was 5.25 years, which is within the industry average[295] Liquidity and Commitments - Liquid assets totaled $280.8 million at December 31, 2025, representing 12% of total assets, an increase from $247.4 million or 11% in 2024[325] - Unused commitments to fund loans and lines of credit were $225.1 million at December 31, 2025, compared to $196.7 million in 2024[338] - The Bank has a liquidity cushion and conducts stress tests under various scenarios to ensure sufficient resources to meet liquidity needs[329]