FVCBankcorp, Inc.

+

BETTER TOGETHER

2018 ANNUAL REPORT

“We are dedicated to providing customers in our  

Virginia, Maryland and Washington, D.C. markets with  

a high level of service, value added technology and  

banking products, and a commitment to excellence.”

– David W. Pijor, chairman and CEO of FVCB and FVCbank

TO OUR SHAREHOLDERS

2018 was a landmark year for FVCBankcorp, Inc. FVCB completed an over-subscribed Initial Public 
Offering and became a member of the Nasdaq Capital Market in September 2018, and shortly 
thereafter, completed an acquisition of Colombo Bank (“Colombo”), while diligently working to 
achieve record earnings. The acquisition of Colombo helped us to achieve a strategic goal to have 
a physical presence in Washington, D.C. and Maryland. Lastly, in December, FVCB was added to the 
Russell 2000® Index, which will enhance our trading liquidity and investor visibility. 

In addition to all of these accomplishments, I’m pleased to report our 2018 performance. 

We reported consolidated net income of $10.9 million, or $0.85 per diluted share, for the year ended 
December 31, 2018, compared to $7.7 million, or $0.67 per diluted share, for 2017. This represents a 
41% increase in net income year-over-year. On an operating earnings basis, which excludes merger 
expenses net of tax of $2.6 million in 2018 and the impact of a $2.0 million write down in the 
deferred tax asset as a result of the enactment of the Tax Cuts and Jobs Act for 2017, we recorded 
$13.4 million and $9.7 million for the years ended December 31, 2018 and 2017, respectively, or $1.05 
and $0.84 per diluted earnings per shares for those same periods. 

On a GAAP basis, return on average assets was 0.94% and return on average equity was 9.29% for 
the year ended December 31, 2018. For the comparable December 31, 2017 period, return on average 
assets was 0.80% and return on average equity was 8.63%. On an operating earnings basis, return 
on average assets and return on average equity for the year ended December 31, 2018 was 1.16% and 
11.47%, respectively. On an operating earnings basis, return on average assets and return on average 
equity for the year ended December 31, 2017 was 1.01% and 10.88%, respectively. 

Selected Highlights

•  Record Earnings. For the year ended December 31, 2018, earnings increased $3.2 million, 

 or 41%, compared to 2017.

• 

• 

• 

• 

• 

Improved Tangible Book Value. Tangible book value per share at December 31, 2018 was  
$10.93, a 21% increase from $9.03 at December 31, 2017. 

Continued Loan Growth. Total loans, net of deferred fees, totaled $1.14 billion at December 31, 
2018, an increase of $248.1 million, or 28%, from December 31, 2017. Excluding loans acquired from 
Colombo Bank, net loans increased $115.8, or 13%. Excluding acquired loans, average loan growth 
year-to-date 2018 was $134.8 million, or 17% of average loans receivable for 2018, enhancing our 
loan yield by 30 basis points for the year.

Sound Asset Quality. Asset quality remains strong with nonperforming loans and loans past due  
90 days or more as a percentage of total assets being 0.34% at December 31, 2018, compared to  
0.09% at December 31, 2017. Nonperforming loans and loans past due 90 days or more totaled  
$3.2 million at December 31, 2018, of which $870 thousand were related to the acquisition.

Strong Core Deposit Growth. Total deposits increased $234.3 million, or 25%, from December 31, 
2017 to December 31, 2018. Total deposits, excluding acquired deposits and wholesale deposits, 
increased $127.1 million year-over-year, or 16%.

Improved Efficiency Ratio. Efficiency ratio for the year ended December 31, 2018 was  
55.7% excluding merger-related expenses, an improvement from 57.2% for the year ended 
December 31, 2017.

Total assets increased to $1.35 billion compared to $1.05 billion as of December 31, 2018 and 2017, 
respectively, an increase of $298.4 million, or 28%. Loans receivable, net of deferred fees, totaled 
$1.14 billion as of December 31, 2018, compared to $888.7 million as of December 31, 2017, a year-over-
year increase of $248.1 million, or 28%. Excluding the loans acquired from Colombo, loans grew $115.8 
million, or 13% year-over-year, and average loans grew $134.8 million, or 17%. We consider average 
loan growth a better measure of the loan portfolio growth, as it directly correlates with interest 
income growth. This becomes increasingly important as the bank’s portfolio reflects higher levels of 
C&I lending, including government contract lending, in which balances outstanding can fluctuate at 
period ends.

Total deposits increased to $1.16 billion as of December 31, 2018 compared to $928.2 million as of 
December 31, 2017, an increase of $234.3 million, or 25%. Total deposits, excluding acquired deposits 
and wholesale deposits, increased $127.1 million year-over-year, or 16%. Core deposits, which 
represent total deposits less wholesale deposits, increased $265.4 million or 33% year-over-year. 
Wholesale deposits totaled $84.4 million, or 7% of total deposits at December 31, 2018, a decrease of 
$31.1 million from December 31, 2017. Noninterest-bearing deposits increased 33% to $233.3 million 

at December 31, 2018, or 20% of total deposits, compared to $175.4 million at December 31, 2017. 
Excluding deposits recorded at acquisition, noninterest bearing deposits increased 18% year-over-
year, or $38.8 million. 

Net interest income totaled $39.8 million, an increase of $7.7 million, or 24%, for the year ended 
December 31, 2018, compared to 2017. Our net interest margin was 3.51% and 3.43% for the years 
ended December 31, 2018 and 2017, respectively. The contribution of the assets and liabilities from 
Colombo added approximately $1.3 million to net interest income and 0.02% to the margin for the 
fourth quarter of 2018.

Noninterest income totaled $1.7 million and $3.0 million for the years ended December 31, 2018 
and 2017, respectively. Noninterest income excluding loss on sales of securities and gain on other 
real estate owned was $2.1 million and $1.9 million for the respective years, an increase of 12%. Fee 
income from fees on loans, service charges on deposits, and other fee income was $1.7 million, an 
increase of 91% for the year ended December 31, 2018 compared to 2017. Included in loan income are 
fees from interest rate swaps totaling $660 thousand for 2018. In addition, the Colombo transaction 
added approximately $31 thousand to non-interest income for the fourth quarter of 2018. Losses on 
sales of securities available-for-sale totaled $462 thousand during the fourth quarter of 2018 as a 
result of the aforementioned reinvestment strategy. During the fourth quarter of 2017, we recorded 
$1.1 million related to a gain on other real estate owned.

Noninterest expense totaled $26.4 million for the year ended December 31, 2018, compared to $19.3 
million for 2017. Approximately $800 thousand of the increase in noninterest expense from 2017 is 
attributable to expenses associated with Colombo’s former operations, in addition to merger-related 
expenses of $3.3 million for the year ended December 31, 2018. During 2018, we strategically hired 
business development officers and back office staff to support our growth plans, and retained 
several employees from Colombo, including lending and branch personnel. As a result, salary and 
compensation related expenses increased $2.3 million, or 20%, for the year ended December 31, 
2018, compared to 2017. Occupancy and equipment expense increased $265 thousand year-over-year 
primarily as a result of the branch locations acquired from Colombo. Professional fees increased 
slightly year-over-year as a result of implementation costs related to regulatory compliance over our 
internal control environment. Increases in data processing and network administration, franchise 
taxes and other operating expenses for the year ended December 31, 2018 compared to 2017 is 
primarily growth related. 

Asset quality remains strong as nonperforming loans and loans ninety days or more past due totaled  
$3.2 million, or 0.24% of total assets, of which $870 thousand related to acquired loans. Performing 
troubled debt restructurings (“TDR”) decreased to $203,000 at December 31, 2018, compared to $1.7 
million at December 31, 2017. Nonperforming assets (including TDRs and other real estate owned) to 
total assets was 0.57% and 0.60% at December 31, 2018 and 2017, respectively. The allowance for loan 
losses to total loans was 0.81% at December 31, 2018, a decrease from 0.87% at December 31, 2018. 
This ratio decrease was primarily the result of the addition of $142.6 million of acquired loans. The 
allowance for loan losses on our originated portfolio was 0.92% of loan outstanding at December 
31, 2018. The increase in the allowance was primarily attributable to modest charge-offs and specific 
reserves added to the allowance during 2018. 

The acquisition of Colombo Bank was a significant undertaking and our team has been hard at work 
leveraging the benefits of the combined organization. With our physical expansion into Maryland 
and the District of Colombia, we are attracting new clients and expanding existing relationships, 
introducing them to our products and technology which augments the customer experience. We 
are also focused on core organic growth in our legacy markets which will continue to enhance our 
market share and franchise value. 

In closing, on behalf of your Board of Directors and employees, we thank you for your continued 
support. I also would like to take the opportunity to thank our employees who were integral to  
the Company’s success in 2018. We are excited about our opportunities which will enhance 
financial performance and continue our strong growth for 2019.    

Best regards, 

David W. Pijor, Chairman and Chief Executive Officer

2018 ANNUAL REPORT   +   

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1

2018 ANNUAL REPORT   +    
EXECUTIVE OFFICERS

Seated, from left to right: David W. Pijor, Chairman & Chief Executive Officer; Patricia A. Ferrick, President. 

Standing, from left to right: Jennifer L. Deacon, Executive Vice President & Chief Financial Officer; William G. Byers, 

Executive Vice President & Chief Lending Officer; Michael G. Nassy, Executive Vice President & Chief Credit 

Officer; Gilbert F. Kennedy, Executive Vice President & Market President; Sharon L. Jackson, Executive Vice President 

& Chief Deposit Officer; and B. Todd Dempsey, Executive Vice President & Chief Operating Officer. 

2 +   BETTER TOGETHER

DIRECTORS
David W. Pijor  
Chairman 
L. Burwell Gunn  
Vice Chairman
Morton A. Bender
Patricia A. Ferrick
Scott Laughlin

Thomas L. Patterson
Devin Satz
Lawrence W. Schwartz
Sidney G. Simmonds
Daniel M. Testa
Philip “Trey” R. Wills III
Steven M. Wiltse 

REGIONAL LENDING OFFICERS

Alissa Curry Briggs  
Director of Commercial Real Estate Lending
James C. Elliott  
Market President, Prince William

OFFICERS

Jason Brooks, Senior Vice President, Commercial Lender
Michelle L. Buckles, Senior Vice President, Director of Compliance
Lisa M. Craze 
Senior Vice President, Loan Documentation & Administration
Terry L. Elliott, Senior Vice President, Commercial Loan Officer
Terry F. Frey, Senior Vice President, Loan Operations
Alberta A. Gibson 
Senior Vice President, Director of Human Resources
Thomas Grantham 
Senior Vice President, Commercial Loan Officer
Oliver James, Senior Vice President, Commercial Lender
Craig Laudeman, Senior Vice President, Senior Credit Officer 
Linda Long, Senior Vice President, Commercial Loan Officer

Gerald A. Muccioli  
Market President, Maryland & D.C.
Christopher O. Turley  
Director of C&I Lending & Government Contractor Lending

Jacqueline S. Marbell-Edson  
Senior Vice President, Credit Administration
Farideh Mullafiroze 
Senior Vice President, Business Development Officer
Mark Palmer, Senior Vice President, Commercial Lender
Cynthia L. Piccione, Senior Vice President, Deposit Operations
Altaf Shadick 
Senior Vice President, Regional Retail Officer
Joshua F. Steele, Senior Vice President, Commercial Lender
Huong V. Song, Senior Vice President, Commercial Lender
Steffany R. Watson  
Senior Vice President, Director of Treasury Management 

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2018 ANNUAL REPORT   +   SELECTED FINANCIAL DATA

For the year ended December 31, 2018 (dollars in thousands, except per share data)

INCOME STATEMENT DATA:

Interest income
Interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
Non-interest income 
Non-interest expense
Net income before income taxes
Provision for income taxes
Net income
BALANCE SHEET DATA:

Total assets 
Loans receivable, net of fees
Allowance for loan losses
Total investment securities 
Total deposits
Other borrowed funds 
Total shareholders’ equity
Common shares outstanding
PER COMMON SHARE DATA:
Basic net income 
Fully diluted net income 
Book value 
Tangible book value (1) 
PERFORMANCE RATIOS:
Return on average assets 
Return on average equity 
Net interest margin (2)
Efficiency ratio (3)
Non-interest income to average assets
Non-interest expense to average assets
Loans receivable, net of fees to total deposits 
ASSET QUALITY RATIOS:

Net charge-offs (recoveries) to average loans receivable, net of fees
Nonperforming loans to loans receivable, net of fees
Nonperforming assets to total assets
Allowance for loan losses to nonperforming loans
Allowance for loan losses to loans receivable, net of fees
CAPITAL RATIOS (Bank Only):

Tier 1 risk-based capital
Total risk-based capital
Common Equity Tier 1 capital
Leverage capital ratio
OTHER:

Average shareholders’ equity to average total assets
Average loans receivable, net of fees to average total deposits
Average common shares outstanding: 

Basic
Diluted

2018

2017

2016

2015

2014

 $       51,924 
 12,110 
 39,814 
 1,920 
 37,894 
 1,661 
 26,448 
 13,107 
 2,238 
 $       10,869 

 $       40,302 
 8,195 
 32,107 
 1,200 
 30,907 
 2,975 
 19,346 
 14,536 
 6,846 
 $       7,690 

 $       32,587 
 5,387 
 27,200 
 1,471 
 25,729 
 1,220 
 16,446 
 10,503 
 3,571 
 $       6,932 

 $       1,351,576 
 1,136,743 
 (9,159)
 125,298 
 1,162,440 
 24,407 
 158,336 
 13,713 

 $       1,053,224 
 888,677 
 (7,725)
 117,712 
 928,163 
 24,327 
 98,283 
 10,869 

 $       909,305 
 768,102 
 (6,452)
 113,988 
 775,991 
 51,247 
 79,811 
 10,179 

 $       0.93 
 0.85 
 11.55 
 10.93 

 $       0.74 
 0.67 
 9.04 
 9.03 

0.94% 
9.29%
 3.51%
 63.07%
 0.14%
 2.28%
 97.79%

0.05% 
 0.34%
0.57%
285.24%
 0.81%

13.27%
14.02%
13.27%
12.41%

10.09%
96.56%

11,715
12,822

 0.80% 
 8.63%  
 3.43% 
 57.16%
 0.31% 
 2.02% 
 95.75% 

(0.01)%
0.09%
0.44%
979.09%
0.87%

12.05%
12.83%
12.05%
11.79%

9.32%
97.74%

10,435
11,545

 $       0.68 
 0.63 
 7.84 
 7.83 

 0.88%
 8.91% 
 3.51% 
 58.02% 
 0.15% 
 2.08% 
 98.98% 

0.19%
0.03%
0.03%
2,591.16%
0.84%

12.37%
13.16%
12.37%
11.89%

9.85%
96.05%

10,170
10,922

 $       26,557 
 3,665 
 22,892 
 1,073 
 21,819 
 1,161 
 14,701 
 8,279 
 2,860 
 $       5,419 

 $       736,807 
 623,559 
 (6,239)
 67,795 
 626,640 
 35,650 
 72,752 
 10,141 

 $       0.54 
 0.51 
 7.18 
 7.16 

 0.85% 
 7.70%
 3.66%
 61.29%
 0.18%
 2.30% 
 99.51% 

0.07%
0.41%
0.35%
243.81%
1.00%

11.25%
12.20%
11.25%
10.82%

11.03%
97.83%

10,138
10,591

 $       22,473 
 3,288 
 19,185 
 886 
 18,299 
 1,313 
 13,316 
 6,296 
 2,162 
 $       4,134 

 $       604,756 
 509,938 
 (5,565)
 62,697 
 504,220 
 32,500 
 66,815 
 10,138 

 $       0.41 
 0.41 
 6.59 
 6.58

 0.76%
 6.45% 
 3.63% 
 65.21% 
 0.24% 
 2.44% 
 101.13% 

0.03%
0.31%
(28.77)%
347.60% 
1.09%

12.53%
13.62% 
N/A
10.96%

11.78%
95.70% 

10,125
10,283

(1) Tangible book value is calculated as total shareholders’ equity, less goodwill and other intangible assets, divided by common shares outstanding. 
(2) Net interest margin is calculated as net interest income divided by total average earning assets.
(3) Efficiency ratio is calculated as total non-interest expense divided by the total of net interest income and non-interest income.

4

+   BETTER TOGETHERLOANS RECEIVABLE, Net of Fees (mm)

TOTAL DEPOSITS (mm)

%

R  2 3

G

A

C

R 2 2 %

G

C A

INCOME BEFORE NONRECURRING 
EXPENSES AND TAXES (thousands)

EFFICIENCY RATIO

C A G R 36 %

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2018 ANNUAL REPORT   +   +

OUR TEAM CAME TOGETHER

Over the last year, FVCbank embarked on one of its most significant milestones to date. 

On May 3, 2018, FVCbankcorp, Inc. announced the beginning of  the process to merge FVCbank and Colombo 

Bank. Serving customers and communities through five full-service locations in Bethesda, Rockville, Silver Spring, 

Washington, D.C., and Baltimore, Maryland, Colombo Bank merged into FVCBank, expanding the Bank’s  

footprint and increasing its offerings.

As part of a strategic growth plan, on August 20, 2018, FVCBankcorp, Inc.  

announced its initial public offering (IPO). The IPO closed on September 18, 2018, with  

FVCbank raising $33.5 million net of expenses. 

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BETTER TOGETHER

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+   BETTER TOGETHER+

TOGETHER OUR FUTURE BEGINS

After successfully completing the systems integration process within five months, on 

October 12, FVCBankcorp, Inc. finalized its strategic bank acquisition of Colombo Bank.  

The physical footprint of  the Bank went from six locations in Virginia to 11 branch locations and one loan 

production office, expanding into the Baltimore and the District of  Columbia markets. Immediately, the expanded 

presence allowed FVCbank to attract new clients, enhance existing relationships and introduce a new market to our 

products and innovative technology. 

With our focus on providing industry-specific expertise within the government contracting, commercial real estate, 

nonprofit and professional services arenas, each customer has a team of  bankers dedicated to support their financial 

needs. Even with the growth and change, some things always remain the same. FVCbank continues to provide a 

personalized customer experience with a broad array of  products for its expanded market. 

The historic year culminated on the world’s stage as the collective FVCbank team rang 

the NASDAQ Market Bell in New York City. With the FVCBankcorp, Inc. logo proudly showcased 

behind them, the FVCbank Board of  Directors looks to the future and plans on building upon this momentum.

Front row (L to R): Devin Satz, Patricia A. Ferrick, David W. Pijor, Scott Laughlin. Back row (L to R): Sidney G. Simmonds, Lawrence W. Schwartz, Daniel M. Testa,  
Steven M. Wiltse, Philip “Trey” R. Wills III. Not pictured: Morton A. Bender, L. Burwell Gunn and Thomas L. Patterson.

7

2018 ANNUAL REPORT   +   Even with the growth and change,  

some things always remain the same. 

FVCbank continues to provide a 

personalized customer experience  

with a broad array of products  

for its expanded market.

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+   BETTER TOGETHERCOMMUNITY FOCUS

Since its inception, FVCbank has placed a strong focus and emphasis on giving back  

to the community in which it serves through sharing time, talents and resources. 

In 2018, 66 FVCbank employees volunteered their time to support charity events, while the Bank 

sponsored over $78,000 for community philanthropic initiatives. Also, FVCbank thought leaders 

participated in co-hosting radio shows for iHeart radio, participated in interviews for the media and offered 

expertise, serving as industry experts and sharing best practices.

Building upon the relationships Colombo Bank established having served the community since 1914, FVCbank 

commits to continuing its long-standing tradition of  giving back in Virginia and extending that support to the 

Baltimore and Washington, D.C. communities. FVCbank maintains that the feeling of  belonging extends beyond 

the walls of  the bank out into the community.     

“Both banks share a  

similar culture of providing 

outstanding service and are 

committed to the community.”

—   Morton A. Bender, former chairman of Colombo Bank  
and current member of the FVCbank board of directors

OUR LOCATIONS

Headquarters
11325 Random Hills Road, Suite 240

Fairfax Branch (VA)
11325 Random Hills Road, Suite 140

Rockville Branch (MD)
1600 E. Gude Drive

Fairfax, VA  22030

Phone: 703.436.3800

Fairfax, VA  22030

Phone: 703.672.2580

Rockville, MD  20850

Phone: 240.268.2265

Arlington Branch (VA)
2500 Wilson Boulevard, Suite 100

Manassas Branch (VA)
7900 Sudley Road, Suite 200

Arlington, VA  22201

Phone: 703.387.5050

Manassas, VA  20109

Phone: 703.656.7300

Ashburn Branch (VA)
43800 Central Station Drive, Suite 150

Lutherville Loan Office (MD)
22 West Padonia Road, 

Suite A-200 

Lutherville, MD 21093 

Phone: 410.387.2620

Reston Branch (VA)
11260 Roger Bacon Drive, Suite 101

Reston, VA  20190

Phone: 703.436.3880

Ashburn, VA  20147

Phone: 571.919.6780

Baltimore Branch (MD)
224 Albemarle Street

Baltimore, MD  21202

Phone: 410.685.4611

Bethesda Branch (MD)
6929 Arlington Road

Bethesda, MD  20814

Phone: 301.652.2265

Silver Spring Branch (MD)
7901 Eastern Avenue

Silver Spring, MD  20910

Phone: 301.562.8443

Springfield Branch (VA)
6975 Springfield Boulevard 

Springfield, VA  22150

Phone: 703.672.2590

Washington, D.C. Branch
1301 9th Street NW

Washington, D.C.  20001

Phone: 202.628.5500

facebook.com/fvcbank

@fvcbank

www.fvcbank.com

MEET OUR NEW LOCATION 
BRANCH TEAMS

This year, FVCbank welcomed the Maryland and D.C. branch locations  
that provided service for Colombo Bank, which served the community  
for more than a century. The teams from the Baltimore, Bethesda, 
Rockville, Silver Spring and Washington, D.C. branches pictured below 
stand ready to provide you the exceptional banking products and 
customer service on which both banks built their foundation. Stop in  
and meet the teams at one of our newest branch locations today! 

Baltimore, MD Branch

Bethesda, MD Branch

Rockville, MD Branch

Silver Spring, MD Branch

Washington, D.C. Branch