FVCBankcorp Inc (FVCB) Releases Third Quarter 2023 Earnings
FVCBankcorp Inc (NASDAQ:FVCB) reported net income of $4.0 million for Q3 2023, compared to $7.0 million for the same period in 2022.
The company demonstrated stellar credit quality with nonperforming loans totaling $1.5 million, or 0.07% of total assets.
FVCB showed a strong balance sheet with all regulatory capital components and ratios well above the required thresholds.
The company continued to reduce its reliance on wholesale funds, with a decrease of $130.8 million during Q3 2023.
On October 24, 2023, FVCBankcorp Inc (NASDAQ:FVCB) announced its financial results for the third quarter of 2023. The company reported a net income of $4.0 million, or $0.22 diluted earnings per share, compared to $7.0 million, or $0.38 diluted earnings per share, for the same period in 2022. For the nine months ended September 30, 2023, the company reported a net income of $8.9 million, or $0.49 diluted earnings per share, compared to $20.1 million, or $1.09 diluted earnings per share for the same period in 2022.
Financial Performance
FVCB demonstrated strong credit quality with nonperforming loans totaling $1.5 million, or 0.07% of total assets, and net recoveries of $7 thousand recorded during Q3 2023. The company's watchlist loans decreased to $3.0 million, a decrease of 70% from the prior quarter end and 79% from December 31, 2022.
The company continued to reduce its reliance on wholesale funds, with a decrease of $130.8 million during Q3 2023. Core deposits increased by $38.7 million, or 2%, to $1.71 billion, from $1.67 billion at the end of Q2 2023.
Balance Sheet and Capital Position
FVCB maintained a strong balance sheet with all regulatory capital components and ratios well above the required thresholds. The total risk-based capital to risk-weighted assets was 13.93% at the end of Q3 2023. The Tangible Common Equity (TCE) to Total Assets (TA) ratio for the bank increased to 9.40% at the end of Q3 2023, from 9.22% at the end of Q2 2023.
Management Commentary
David W. Pijor, Esq., Chairman and Chief Executive Officer of the Company, said: The current interest rate environment continues to be challenging as bank funding costs outpace the improved yield of our earning assets. We were pleased with continued growth in our core deposit base as we added new customers and deepened existing customer relationships. While we continue to lend in our marketplace, we are maintaining a disciplined approach on pricing and deposit requirements as well as actively managing our existing loan portfolio resulting in a reduction in total loans for the quarter. While our credit quality has historically been solid, it further improved for the second consecutive quarter as nonperforming loans were 0.07% to total assets, all of which were residential real estate secured. We continue to lend to well-established and relationship-driven borrowers, supporting our proven track record of low historical credit losses.We remain committed to deliver banking services that improve our customers digital experience. We are enhancing efforts to increase the presence of our brand in the markets we serve. This is made possible by our extraordinary team of bankers who demonstrate dedication and commitment to our strategic objectives every day.
Overall, FVCBankcorp Inc (NASDAQ:FVCB) demonstrated a strong financial performance in Q3 2023, with a focus on maintaining stellar credit quality and reducing reliance on wholesale funds.
Explore the complete 8-K earnings release (here) from FVCBankcorp Inc for further details.
This article first appeared on GuruFocus.
