Key Highlights

  • Net income rose 19% to USD 6.6 million, or USD 0.37 per share.
  • Net interest Margin improved 41 basis points to 3.32%.
  • Noninterest-bearing deposits grew 14% year over year to USD 427.3 million.
  • Watchlist loans fell 56% in the quarter to USD 25.5 million.

Earnings and Returns

FVCBankcorp (NASDAQ:FVCB) reported third-quarter 2026 results on Thursday. Net Income was USD 6.6 million, up USD 1.0 million, or 19%, from USD 5.6 million a year earlier. Diluted Earnings per share were USD 0.37 against USD 0.31, a 20% increase. For the nine months, net income rose USD 4.8 million, or 29%, to USD 21.2 million, and Diluted Earnings per Share rose 30% to USD 1.17 from USD 0.90.

Return on average Assets was 1.17% against 1.00%, and return on average Equity was 9.77% against 9.05%. For the nine months, return on average assets was 1.27% against 0.98%, and return on average equity was 10.77% against 9.01%.

Margin and Efficiency

The net interest margin improved 41 basis points to 3.32% from 2.91%. The cost of funds fell to 2.42%, down 36 basis points from 2.78% a year earlier and 5 basis points from the second quarter. The efficiency ratio improved to 53.29% from 55.50%.

Loan originations in the quarter totaled USD 71.2 million at a weighted average rate of 7.02%, and renewals totaled USD 61.3 million at 6.84%. Loans that paid off totaled USD 62.6 million at 5.89%, so new originations carried a rate 113 basis points above payoffs.

Loans and Deposits

Loans, net of fees, were USD 1.91 billion, up USD 55.5 million, or 3%, from a year earlier and up USD 14.6 million from June 30, against USD 1.94 billion at Dec. 31. Chairman and Chief Executive Officer David Pijor said Diversification has reduced Commercial Real Estate concentration to 275% of risk-based capital, the lowest in recent history.

Total deposits were USD 2.00 billion, down USD 55.2 million, or 3%, in the quarter, which the company tied to large customer deposit transactions at the end of the second quarter. Core deposits fell USD 45.1 million. Noninterest-bearing deposits rose USD 12.0 million, or 3%, in the quarter and USD 52.9 million, or 14%, from a year earlier, and were 21% of deposits. Wholesale deposits were USD 231.1 million at a weighted average rate of 3.51%, down USD 53.8 million, or 19%, from year end. Reciprocal deposits were USD 210.6 million against USD 291.8 million.

Credit and Capital

Watchlist loans fell USD 32.4 million, or 56%, to USD 25.5 million. Nonperforming loans were USD 11.0 million against USD 11.4 million, or 0.48% of total assets. The provision for Credit losses was USD 186 thousand against USD 375 thousand a year earlier. The allowance was USD 18.8 million, or 0.98% of loans, and 1.02% excluding Warehouse facilities. Nine-month net charge-offs were USD 499 thousand against USD 876 thousand.

Shareholders' equity was USD 268.5 million, up USD 14.9 million, or 6%, since year end, with USD 21.2 million of earnings partly offset by USD 3.6 million of dividends, USD 2.1 million of repurchases and a USD 3.5 million rise in accumulated other comprehensive loss. Tangible Book Value per share was USD 14.49 against USD 13.74. The bank's total risk-based Capital ratio was 16.61% against 15.38% at year end, its common equity tier 1 ratio was 15.64% and its tier 1 Leverage Ratio was 13.08%. The board declared a quarterly Dividend of USD 0.07 per share, payable Nov. 16, about USD 1.3 million in total.

Metrics to Watch

Net income rose 19% while the margin rose 41 basis points and loans rose 3%, with the cost of funds down 36 basis points from a year earlier. Reference points include deposit balances after a 3% decline, the 275% commercial real estate concentration, the cost of funds at 2.42%, and watchlist loans at USD 25.5 million.