ANNUAL REPORT 2021
Scan the QR code for the digital version of the 2021 Annual Report.
I
ANNUAL REPORT 2021 Employees Implement Automated
Systems to BOLSTER PARTNERSHIP
Automating warehouse transitions accounts for a significant portion
of Bank’s loan growth for 2021.
12
8
Expediting the lending process leads to increased
revenue and customer satisfaction.
FEATURES
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14
18
20
New Product will Ensure Accessibility
in a Changing World
Banking is more accessible to customers than ever before.
Automation Expedites
Underwriting Processes
Systemization of small business loan decisioning slashes approval timeline.
Empowering Better Data Analyses and
Decision Making
Intelligent data analysis allows for collaboration confident decision-making.
Focusing Efforts Where They are
Needed Most
Improving accuracy of repetitive tasks with automation.
16
Enhancing Borrowing
Base Certificate (BBC)
Leveraging technology to offer valuable
financial service products to customers.
“
Our collective success comes
from the ways in which we
empower our team members to
achieve greatness. Each of them
brings a unique and diverse skill
set and experience, along with
a dedication to supporting our
customers to achieve their goals.
At FVCbank, we celebrate and
encourage innovation to create
efficiencies and provide the
service our customers and the
community need to thrive.
– PATRICIA A. FERRICK, PRESIDENT
ANNUAL REPORT 2021
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INSIDE “
Your FVCbank team
delivered record
earnings, double-
digit loan and
deposit growth, and
solid credit quality
metrics during 2021.
– DAVID W. PIJOR, ESQ., CHAIRMAN/CEO
TO OUR
Shareholders
I am pleased to provide you with our 2021 Annual Report.
Your FVCbank team delivered record earnings, double-digit
loan and deposit growth, and solid credit quality metrics
during 2021. We are well-positioned to carry this strong
momentum into 2022.
Even more significant, we are re-energized as we consider
the opportunities ahead for our bank. After making the
difficult but necessary decision to mutually terminate
our announced merger of equals transaction with Blue
Ridge Bankshares, Inc., we are focused on embracing
technology to enhance our bank offerings and further
improve efficiencies as we execute our deliberate strategy
to be a premier community bank that serves its customers
and its communities while valuing the many relationships
developed along the way.
To further illustrate this renewed commitment, during
2021, we partnered with Atlantic Coast Mortgage, LLC
(“ACM”), a leading mortgage originator headquartered
in Fairfax, Virginia, through our acquisition of a 28.7%
ownership interest in ACM. This partnership will allow us
to provide competitive residential mortgage products to
our customers, while increasing our financial opportunities
and expanding our revenue mix. In addition, our
partnership provides ACM a warehouse lending facility,
including a construction-to-permanent financing line,
which contributed $72 million to our 2021 loan growth.
Strong earnings highlight our 2021 results as we recorded
record net income of $21.9 million, or $1.50 diluted
earnings per share for the year ended December 31, 2021,
compared to $15.5 million, or $1.10 diluted earnings per
share, for the same period of 2020, an increase of $6.4
million, or 41%. For the year ended December 31, 2021,
return on average assets was 1.11% and return on average
equity was 10.92% compared to return on average assets
of 0.91% and return on average equity of 8.48% for the
year ended December 31, 2020.
SELECTED HIGHLIGHTS
Strong Loan Growth. Loans receivable, net of deferred
fees and excluding loans made under the U.S. Small
Business Administration’s Paycheck Protection Program
(“PPP”), totaled $1.48 billion at December 31, 2021,
compared to $1.31 billion at December 31, 2020, an increase
of $162.6 million, or 12%.
Strong Credit Quality Metrics. Past due loans 30 days
or more decreased to $301 thousand from $2.1 million at
December 31, 2021, a decrease of $1.8 million, or 85%. No
commercial loans were past due at December 31, 2021.
Nonperforming assets decreased to 0.16% of total assets
or $3.5 million at December 31, 2021, compared to 0.52%
or $9.5 million at December 31, 2020. We sold our other
real estate owned property totaling $3.9 million during
the fourth quarter of 2021 and recorded a gain on the sale
totaling $236 thousand.
Strong Core Deposit Growth. Deposits increased 23%
year over year, of which noninterest-bearing deposits
increased 46%.
Increased Net Interest Income. Net interest income
increased $5.3 million to $57.9 million for the year ended
2021, compared to $52.6 million for the same 2020
period. Net interest margin was 3.09% for the year ended
December 31, 2021, compared to 3.28% for the year ended
December 31, 2020.
Increased Noninterest Income. Noninterest income
increased 49% to $4.3 million for the year ended December
31, 2021, compared to $2.9 million for the year ended
December 31, 2020. The increase in noninterest income
is primarily related to our investment in ACM, which
contributed $1.5 million to noninterest income during 2021.
BALANCE SHEET
Total assets were $2.20 billion at December 31, 2021, an
increase of $381.4 million, or 21%, compared to $1.82 billion
at December 31, 2020.
Loans receivable, net of deferred fees were $1.50 billion at
December 31, 2021 compared to $1.47 billion at December
31, 2020. Excluding PPP loans, loans receivable, net of
deferred fees totaled $1.48 billion at December 31, 2021, an
increase of $162.6 million, or 12%, compared to $1.31 billion
at December 31, 2020. PPP loans, net of fees, totaled $28.1
million at December 31, 2021, a decrease from $153.0 million
at December 31, 2020. Loans forgiven during 2021 totaled
$124.8 million for the year ended December 31, 2021.
Investment securities were $358.0 million at December
31, 2021, an increase of $231.6 million compared to $126.4
million at December 31, 2020. We have been investing in
fixed income securities funded through our increase in
deposits and PPP forgiveness to deploy excess liquidity to
optimize net interest margin.
Total deposits were $1.88 billion at December 31, 2021, an
increase of $351.3 million, or 23%, from $1.53 billion at
December 31, 2020. Noninterest-bearing deposits were
$581.3 million at December 31, 2021, an increase of $182.2
million, or 46%, for the year ended December 31, 2021.
Our bank subsidiary, FVCbank, remains well-capitalized at
December 31, 2021 with a tier 1 leverage ratio of 10.53%.
INCOME STATEMENT
For the year ended December 31, 2021, net income was
$21.9 million, an increase of $6.4 million, or 41%, compared
to $15.5 million for the same period of 2020.
For the years ended December 31, 2021 and 2020, net
interest income was $58.0 million and $52.6 million,
respectively, an increase of $5.3 million, or 10%, year-over-
year. Net interest income was impacted by accelerated
debt issuance costs of $380 thousand for the year ended
December 31, 2021, a result of the September 2021
redemption of our subordinated debt issued in 2016.
Interest expense on deposits decreased $4.7 million for
the year ended December 31, 2021 compared to the same
period of 2020. PPP loan income contributed $5.4 million
to interest income, of which $3.0 million was related to
recognition of net deferred fees on forgiven loans for the
year ended December 31, 2021. This compares to interest
income from PPP loans of $3.0 million for the year ended
December 31, 2020.
Net interest margin for the year ended December 31, 2021
was 3.09%, a decrease of 19 basis points from the year
ended December 31, 2020. The average yield on total
loans for the year ended December 31, 2021 was 4.37%,
compared to 4.46% a year ago. Cost of interest-bearing
deposits for the year ended December 31, 2021 was 0.66%,
a decrease of 52 basis points from 1.18% for the year ended
December 31, 2020. The cost of deposits, which includes
noninterest-bearing deposits, decreased 41 basis points,
or 48%, to 0.45% for the year ended December 31, 2021
compared to 0.86% for the year ended December 31, 2020.
Noninterest income for the year-to-date period ended
December 31, 2021 was $4.3 million, compared to $2.9
million for the 2020 year-to-date period, an increase of
$1.4 million, or 49%, which was primarily driven by the
aforementioned income associated with our membership
interest in ACM.
For the years ended December 31, 2021 and 2020, noninterest
expense was $34.5 million and $30.8 million, respectively, an
increase of $3.7 million, or 12%, primarily as merger-related
expenses and additions to business development staffing
and associated increases in incentive accruals. Excluding
these merger-related expenses, noninterest expense was
$33.1 million for the year ended December 31, 2021, an
increase of $2.9 million, or 10%, compared to $30.2 million
(excluding our 2020 branch closure impairment charges) for
the year ended December 31, 2020.
The efficiency ratios for the years ended December 31, 2021
and 2020, excluding merger-related costs and accelerated
subordinated debt issuance costs recorded during 2021, and
branch closure costs recorded during 2020, were 52.8% and
54.3%, respectively.
ASSET QUALITY
We released $500 thousand in reserves in our allowance
of loan losses for the year ended December 31, 2021,
compared to recording provision for loan losses of $5.0
million for the year ended December 31, 2020. The
decrease in the provision for loan losses for the year
ended December 31, 2021 is primarily related to the
improvement in certain credit quality metrics; specifically,
a reduction in our past due loans and specific reserves for
certain watchlist loans which improved in credit quality
during the year. In addition, our COVID-impacted portfolio
segments showed improved performance during 2021.
The allowance for loan losses to total loans, excluding
PPP loans, was 0.94% at December 31, 2021, compared to
1.14% at December 31, 2020. The effective reserve coverage,
which includes both the allowance for loan losses and the
remaining unaccreted fair value discount on acquired loans,
to total loans, excluding PPP loans, was 0.99% at December
31, 2021 compared to 1.27% at December 31, 2020.
Our FVCbank team is poised to continue our
growth trajectory and we are excited to execute on
opportunities we see in 2022 and beyond. On behalf
of your Board of Directors and employees, we thank you
for your continued support. We also thank our team of
bankers who provide excellent personalized service to our
customers. We are proud to be part of the markets we
serve and to be a part of such resilient communities.
Best regards,
David W. Pijor, Chairman and Chief Executive Officer
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ANNUAL REPORT 2021ANNUAL REPORT 2021 DIRECTORS
OFFICERS
David W. Pijor, Esq., Chairman/CEO
L. Burwell Gunn, Vice Chairman
Patricia A. Ferrick, President
Morton A. Bender
Meena Krishnan
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,
Executive Director of Commercial Real Estate Lending
James C. Elliott, Market President, Virginia
Oliver James, Director of C&I Lending
Gerald A. Muccioli, Market President, MD and D.C.
Eric Pietras,
Executive Director of Government Contract Lending
Michelle L. Buckles,
Senior Vice President, Director of Compliance
Joseph Catalano,
Senior Vice President, Commercial Loan Officer
Lisa M. Craze,
Senior Vice President, Loan Documentation and Administration
Craig Gajewski,
Senior Vice President, Commercial Loan Officer
Alberta A. Gibson,
Senior Vice President, Director of Human Resources
Thomas W. Grantham,
Senior Vice President, Commercial Loan Officer
Sharon Gray, Senior Vice President, Loan Operations
Craig Laudeman,
Senior Vice President, Commercial Loan Officer
Linda Long, Senior Vice President, Commercial Loan Officer
David Mancia, Senior Vice President, Controller
Jacqueline S. Marbell-Edson,
Senior Vice President, Credit Administration
Tim Moorstein,
Market President, GovCon/Metro DC
Farideh Mullafiorze,
Senior Vice President, Business Development Officer
Chris Muracco, Senior Vice President, MIS/Analytics
Mark Palmer, Senior Vice President, Commercial Loan Officer
Cynthia L. Piccione,
Senior Vice President, Deposit Operations
Eric Radcliffe,
Senior Vice President, Commercial Loan Officer
Sharon Ricciardi,
Senior Vice President, Director of Business Development
Christine M. Rowe,
Senior Vice President, Treasury Services Manager
Altaf Shadick, Senior Vice President, Director of Retail
Huong V. Song,
Senior Vice President, Commercial Loan Officer
Joshua F. Steele,
Senior Vice President, Commercial Loan Officer
Steffany R. Watson,
Senior Vice President, Director of Treasury Management Services
FVCbank GIVES BACK
In 2021, the Bank provided significant loans to empower and advocate for communities in
need. At the same time, the FVCbank staff generously gave of themselves through personal
monetary donations and volunteer hours for numerous organizations in their communities.
Clearly, one person and one Bank can make a difference.
Community REINVESTMENT Act (cra)
community
investment
loans:
$28,053,408.14
reportable loans 2021
509 Loans in the amount of $89,551,017.62
EXECUTIVE COMMITTEE
Seated, from left to right: Patricia A. Ferrick, President; David W. Pijor, Chairman and Chief Executive Officer.
Standing, from left to right, B. Todd Dempsey, Executive Vice President and Chief Operating Officer; Alissa Curry
Briggs, Executive Director of Commercial Real Estate Lending; Michael G. Nassy, Executive Vice President and
Chief Credit Officer; Sharon L. Jackson, Executive Vice President and Chief Deposit Officer; William G. Byers,
Executive Vice President and Chief Lending Officer; and Jennifer L. Deacon, Executive Vice President and Chief
Financial Officer.
Employee Volunteer Services
27 EMPLOYEES
VOLUNTEERED 51
ORGANIZATIONS
DIFFERENT
WITH
4
ANNUAL REPORT 2021
ANNUAL REPORT 2021
5
2021
2020
2019
2018
2017
LOANS RECEIVABLE, NET OF FEES (MILLIONS)
TOTAL DEPOSITS (MILLIONS)
SELECTED FINANCIAL DATA
(Dollars and shares 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
$68,428
10,481
57,947
(500)
58,447
4,302
34,540
28,209
6,276
$21,933
$2,202,924
1,503,849
(13,829)
358,038
1,883,769
25,000
209,796
13,727
$1.61
1.50
15.28
14.70
1.11%
10.92%
3.09 %
55.49%
0.22 %
1.75%
79.83%
0.04%
0.23 %
0.16 %
394.21 %
0.92 %
NA
NA
NA
10.53%
10.15%
86.80%
13,650
14,581
$67,103
14,483
52,620
5,016
47,604
2,891
30,838
19,657
4,156
$15,501
$1,821,481
1,466,083
(14,958)
126,415
1,532,493
69,085
189,500
13,511
$1.14
1.10
14.03
13.41
0.91%
8.48%
3.28%
55.55%
0.17%
1.80%
95.67%
0.02%
0.38%
0.52%
266.11%
1.02%
NA
NA
NA
11.65%
10.70%
98.51%
13,542
14,134
$66,734
18,671
48,063
1,720
46,343
2,546
28,877
20,012
4,184
$15,828
$1,537,295
1,270,526
(10,231)
141,589
1,285,722
49,487
179,078
13,902
$1.15
1.07
12.88
12.26
1.09%
9.32%
3.48%
57.06%
0.18%
1.99%
98.82%
0.05%
0.84%
0.95%
95.39%
0.81%
12.72%
13.43%
12.72%
12.15%
11.71%
98.56%
13,817
14,825
$51,924
12,110
39,814
1,920
37,894
1,661
26,448
13,107
2,238
$10,869
$1,351,576
1,136,743
(9,159)
125,298
1,162,440
24,407
158,336
13,713
$0.93
0.85
11.55
10.93
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
$40,302
8,195
32,107
1,200
30,907
2,975
19,346
14,536
6,846
$7,690
$1,053,224
888,677
(7,725)
117,712
928,163
24,327
98,283
10,869
$0.74
0.67
9.04
9.03
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
(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.
1,500
1,200
900
600
300
$
$1,504
$1,466
%
CA G R 1 4
$1,271
$1,137
$889
2017
2018
2019
2020
2021
2000
1500
1000
$928
CAgr 1 9 %
$1,884
$1,532
$1,286
$1,162
500
$
2017
2018
2019
2020
2021
INCOME BEFORE NONRECURRING
EXPENSES AND TAXES (THOUSANDS)
EFFICIENCY RATIO
$29,798
$20,145
$20,333
30,000
25,000
20,000
15,000
$14,536
CAGR 20 %
$16,446
10,000
5000
$
2017
2018
2019
2020
2020
90
80
70
60
50
40
30
20
10
%
63.07%
57.16%
57.06%
55.55%
55.49%
2017
2018
2019
2020
2021
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ANNUAL REPORT 2021
7
ANNUAL REPORT 2021 Faster Construction Funding with
NEW TECHNOLOGY
Construction lending occupies a sizable high-risk category within
FVCbank’s loan portfolio. High-risk can also mean high-reward, so
“Previously, it was difficult to
Customers can now use this
In addition to the increased
monitor changes to the budget
technology to discover the status
capability to serve customers,
or specific line items after the
of their draw request in real-time,
quicker funding of draw requests
initial loan approval had occurred,
allowing them to see how FVCbank
allowed by the software generates
when Alissa Curry Briggs, FVCbank executive director of commercial
which created additional and
disbursed funds within the project’s
a significant source of revenue for
real estate, and her team decided to increase support for this sector,
they knew they needed a new and robust monitoring program.
“
Customers can
now use this
technology to
discover the
status of their
draw request in
real-time.
unnecessary risk in moving the
budget and providing them peace
the Bank.
project to completion and getting
of mind that they are in lockstep
fully repaid,” said Curry Briggs. “Too
with FVCbank throughout the
many spreadsheets from different
entire project timeline.
stakeholders created inefficient
operations and caused higher load
processing times for customers
along with additional work for
Bank employees.”
“Our new construction loan software
system securely encapsulates
the entire construction portfolio
allowing real-time access to loans
for all parties involved—from
They found inspiration by the
borrowers to contractors to
potential of a new monitoring
architects, inspectors and title
application to achieve budget
companies,” reflected Curry Briggs.
transparency and certainty and offer
stakeholders new functionality. They
also saw the opportunity to augment
FVCbank’s interest income by
speeding up construction funding.
The team’s decision to invest in this
construction lending monitoring
software has also led to significant
advancements in customer
satisfaction.
Borrowers also enjoy total ease
of use, with the ability to upload
relevant documents directly to the
software system, which is easily
accessible for all concerned parties.
FVCbank now has access to an
activity log associated with each
loan, enhancing compliance
and improving audits, ensuring
appropriate approvals are in place
if the project changes over time.
8
ANNUAL REPORT 2021
ANNUAL REPORT 2021
9
NEW PRODUCT
will ensure accessibility in a changing world
While The COVID-19 pandemic seemed to wane momentarily in 2021, multiple
infection waves challenged communities and impeded a return to normalcy for
most of the year. Contactless options remain preferred by consumers.
Employees at FVCbank saw a
comfortable and practical way to
The working group had to move fast
clear need to develop and offer
start new accounts.
and navigate a host of complexities,
something new within their suite
of digital products to maintain safe
and healthy environments for both
employees and customers. Each
wanted the ability to connect and
interface while in-person interactions
remained impractical.
Ensuring a fully functional
digital platform for account
opening proved challenging
yet worthwhile. The effort to
implement a new platform
spanned teams, showcasing the
collaborative culture at FVCbank.
including combining two core
providers into one functional
FVCbank product. Creating the
new digital portal encapsulated
FVCbank’s service philosophy:
listening, thinking, innovating,
solving and inspiring.
The answer was a contactless
Comprised of employees across
In the end, the work paid off.
account opening tool, dubbed
multiple departments, the group’s
As social distancing guidelines
“Open Online.” With no risk to health
immense effort also served
remain in place, the Bank’s
or safety, Open Online provides
as a proof point of FVCbank
recently launched product
new and existing customers with a
employees’ dedication to
provides a convenient new way
community support.
for all customers to connect
with FVCbank online. The new
feature is poised to enhance the
Bank’s customer experience and
relationship with the communities
it serves well beyond the pandemic.
“Technology rules, but we think
common sense can be just as
revolutionary,” reads one of
FVCbank’s core philosophies. To the
Bank, listening to and empowering
employees leads to more lasting
and accessible connections with
customers and their communities.
Employees at FVCbank saw a
clear need to develop and offer
something new within their suite
of digital products to maintain safe
and healthy environments for both
employees and customers.
“
Employees at
FVCbank saw
a clear need to
develop and offer
something new
within their suite
of digital products
to maintain safe
and healthy
environments for
both employees
and customers.
DID YOU
KNOW?
“At FVCbank,
investments in our
teams facilitate our
success and helps
fuel our motivation
to do the best
work we can.”
– STEFFON NELSON, D.C. BRANCH
Looking for an employer that
puts employees first?
Join the FVCbank Team!
10
ANNUAL REPORT 2021
ANNUAL REPORT 2021
11
Employees
Implement
Automated
System to
BOLSTER
PARTNERSHIP
In its partnership with Atlantic Coast Mortgage
The relatively new partnership
required warehouse wire transfers
to ACM, a cumbersome process
that the Bank’s team knew could
(ACM), FVCbank expanded its portfolio to include
be streamlined. FVCbank set out to
revenue opportunities associated with residential
mortgages. FVCbank’s partnership with Atlantic
Coast Mortgage has resulted in benefits well beyond a
typical bank subsidiary relationship. ACM’s mortgage
professionals now have access to the FVCbank
team of commercial lenders, retail bankers and cash
management specialists for their customers looking
implement a system that could be
best in its class, making the process
more efficient and effective.
“We wanted to take full advantage
of our great new partnership with
ACM,” said Tonya Smith, FVCbank
vice president of mortgage
operations. “We wanted to
for a new banking relationship. Conversely, FVCbank
support more of our community’s
now has a group of mortgage professionals dedicated
residents in purchasing or
to assisting clients with their residential property
financing needs.
refinancing their home, purchasing
a second house, or acquiring an
investment property.”
After researching industry best
FVCbank’s warehouse financing
This new partnership and the
practices, executives invested
capabilities enhance ACM’s access
automation enhancements
in an automated system for
to capital as they expand their
demonstrate to existing and
processing warehouse wire
mortgage business. In addition, the
prospective customers looking for a
transitions. The automation they
portfolio mortgage program allows
new financial partner that FVCbank
developed allowed all general
the Bank to selectively purchase
truly cares about them.
ledger transitions to be sent
mortgage loans from ACM, especially
automatically from the Warehouse
those that fall outside the standard
Lending System to the Bank’s
secondary market guidelines. The
core operating system each night,
Bank also provides access to a single
eliminating manual processing of
settlement construction-permanent
those entries and leaving manual
loan program for customers wishing
entries only for any transactions
to build their dream home.
involving basic direct deduction
or checking accounts.
Josh Grimes, FVCbank IT director,
invested significant time and
attention toward ensuring the
new system worked seamlessly.
And in the spirit of FVCbank’s
collaboration philosophy, Grimes
set up the system such that the
Bank’s Operations staff receives
an automatic email alert when a
wire arrives for processing.
With this success, the warehouse
line accounted for a significant
portion of the Bank’s loan
growth for 2021. Along with
its stake in ACM, the elevated
revenue associated with
mortgage fees and interest
will continue to contribute
significantly to the institution’s
profitability in the future.
“
We wanted to
support more of
our community’s
residents in
purchasing or
refinancing their
home, purchasing
a second house
or acquiring
an investment
property.
12
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13
AUTOMATION
expedites underwriting processes
In 2021, Jim Elliott, FVCbank market president for
Virginia, noticed potential improvements that could
increase competitiveness and a stronger position to
“Our timeline for approving smaller loans at FVCbank challenged our
ability to remain competitive in the lending market,” said Elliott.
The team ultimately selected a decisioning module that allowed the Bank
to input approval parameters to create an automated process for approving
small business loans.
support communities. He and his team discovered that
THE BANK BECOMES MORE ATTRACTIVE TO BORROWERS
the amount of underwriting for smaller loan amounts
rivaled that of more complex loan deals and the idea
that a simple process change could make the FVCbank
team more efficient was born.
Since the software’s implementation, Elliott and his team have noticed
decisioning timelines for small loan requests have shortened exponentially.
“The deployment of the systems for small business loans has created a more
effective process for underwriting while maintaining the credit quality of
the overall loan portfolio, allowing us to increase our position within the
competitive market,” Elliot added.
The team celebrated the marked increase in efficiency the software has
provided. The enhancement required fewer hands to touch a transaction to
keep it moving, improving the dexterity of the entire operation.
This investment in a practical, system optimizing tool for FVCbank illustrates a
clear commitment to continuous enhancements to support small businesses,
the backbone of the community.
“
The team
ultimately selected
a decisioning
module that
allowed the Bank
to input approval
parameters
to create an
automated process
for approving small
business loans.
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15
ENHANCING BORROWING
BASE CERTIFICATE (BBC)
processing with ease,
accuracy and efficiency
“
The Bank searched
for a solution that
would offer ease,
accuracy and
consistency to
better serve our
clients’ needs.
DID YOU
KNOW?
“Our work isn’t just
work. It’s different
personalities coming
together to achieve
mutual success,
exemplified when
I hear my team’s
interactions. With
sports banter around
the coffee machine
and team members
sharing their love
for multicultural
music and art, we
all bring passion to
the workplace.”
– PEGGY ELIE, RESTON BRANCH
Looking for an employer
that puts employees first?
Join the FVCbank Team!
Government contractors, small businesses and corporations serve as the lifeblood of
our local communities. They require a banking partnership that can provide financial
products and services that bolster their bottom line and enable their commitment to
serve their community. That’s why FVCbank decided to invest in optimizing its Asset
Based Lending (ABL) product to improve how borrowers receive and record Borrowing
Base Certificates (BBC). The Bank’s Credit Administration, led by Vice President
Brandon Parker and his portfolio credit risk team, implemented a premier BBC software
that helps FVCbank determine the maximum amount of funding it can offer under a
borrower’s line of credit.
Previously, borrowers were
customers,” said Parker. “The Bank
automatically notifies internal
responsible for manually
searched for a solution that would
banking partners to adjust the
calculating BBCs and submitting
offer ease, accuracy and consistency
clients’ borrowing capacity
their calculations to the Bank
to better serve our clients’ needs.”
under the line of credit.
via email. While a standard for
many financial institutions, this
practice led to inaccuracies
and inefficiencies for both the
satisfaction
Software improves internal
“FVCbank also invested in
operations and customer
staffing with the creation of an
borrower and FVCbank.
Now equipped with new automated
functionality, borrowers are no
longer required to calculate their
own BBCs, saving them significant
time and reducing the number of
ABL Analyst role to manage
the software and offer support
to team members so they can
dedicate more time to other
customer service efforts,”
added Parker.
miscalculations, allowing for faster
Clearly, FVCbank is no stranger
availability to capital. Additionally,
to challenging the status
borrowers now have ease of mind
quo and pursuing innovative
with the receipt of automatic
solutions to constantly
approval notifications.
improve customer service
and satisfaction.
Without a standard submittal
process, borrowers submitted
their BBCs to various individuals,
sometimes in entirely different
departments, leading to
inconsistencies in processing
times and recordation.
Furthermore, miscalculations
of the BBC exacerbated delays
in processing and approval
Internally, the software automatically
timelines.
routes certificates to one central
“One of the goals of FVCbank
is to leverage technology by
offering innovative financial
service products to our
Bank area, eliminating the need
for cross-team coordination and
streamlining processing. The
software’s automation also
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17
ANNUAL REPORT 2021 EMPOWERING
better data analyses and decision making
“
We needed a tool that not only
enhanced but complimented our
collaborative culture and workflow.
Data supports effective management and guides superior decision-
making. As most financial sector professionals say, the more intuitive
your data evaluation process is, the more effective it makes your team.
FVCbank decided to invest in an
“We wanted everyone to be able
new product to each department in
enterprise-wide data analytics tool
to look at the same data to tell the
the Bank. With an understanding of
to improve data management and
Bank’s story so that management
KlariVis’ full capabilities, the team
asked Chris Muracco, FVCbank
could have the confidence that
enhanced their storytelling through
senior vice president of MIS/
decisions get made based on
easy-to-digest data visualization
Analytics, to lead the charge. He
consistent data integrity and can be
that kept employees focused on the
knows the importance of creating
documented,” Muracco said.
big picture.
Following the program’s company-
FVCbank’s loan and development
wide rollout, executives noted
officers now have customers
their confidence in the software’s
portfolios at their disposal with
data integrity and its universal
more data than ever before. Now,
comprehensibility. Now, two
they no longer wait for month-end
different teams can pull the same
reports and can access daily data
analytics and feel empowered to
like never before. This allows them
work seamlessly on behalf of the
to manage portfolios at a granular
customer.
level and helps them diversify their
“We needed a tool that not only
sales strategies.
enhanced but complimented our
The Bank’s focus on improving its
internal dashboards and reports to
help the team analyze data. Muracco,
who supports all areas of the Bank,
knew this new tool would offer a
more efficient and simpler way to
pull data and make sense of the
information.
After comprehensive research
FVCbank improves operations
collaborative culture and workflow,”
offerings for the communities it
about the product and its company,
KlariVis was selected as FVCbank’s
new data analytics software partner.
Muracco successfully introduced the
and customer satisfaction
Muracco added.
serves is evident in its investments
Muracco and the KlariVis team have
since integrated the new system
throughout the Bank, with over 80
users at all levels of the operation.
Now, every business unit has access
to the same data at its fingertips.
in resources the team on the
front line needs to support their
customers effectively and efficiently.
DID YOU
KNOW?
“FVCbank
facilitates personal
and professional
growth. Among
the life lessons
I’ve learned, take
each day one at a
time, stay positive,
learn from one
another, and reach
for the highest to
make the day a
successful one.”
– BEVERLY HOLLOWAY,
BETHESDA BRANCH
Looking for an employer
that puts employees first?
Join the FVCbank Team!
18
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19
FOCUSING
efforts where they
are needed most
The FVCbank team, like many other financial institutions, performs a wide variety of tasks.
Some tasks are complex and require time-consuming, yet essential close professional attention
by individual employees. Others are equally necessary and time-consuming but are far more
tedious and repetitive, increasing the possibility of invalid or erroneous entries.
The indispensable FVCbank IT team,
Employees have remarked that they
found that process times for such
in collaboration with a diverse group
can now focus on more advanced
tasks have been slashed from hours
of interdepartmental colleagues,
projects that require their careful
to just minutes, with an estimated
listened to team members’ feedback
attention and judgment.
time savings of hundreds of hours
and concluded that the discrepancy
between these two groups of tasks
could be effectively eliminated
by integrating Robotic Process
Automation (RPA) to support the
human workforce.
“We are seeing increased reliability
per year.
in large transaction processes. The
However, the main benefit of robotic
higher productivity is also reducing
automation ultimately falls on
expenses and creating room for
FVCbank customers. Customers now
growth for employees,” added
enjoy even better and more focused
Muracco. “It is also giving our
support from team members on
“While Robotic Process Automation
employees assurance that we are
requests that can’t be automated.
is a rapidly emerging technology, we
giving them the tools to do their jobs
here at FVCbank have adopted this
efficiently and allow them to focus
with open arms,” said Chris Muracco,
their time on higher-value work.”
FVCbank senior vice president of
MIS/Analytics.
Automated processing “robots,”
or as some might say, FVCbank’s
Speeding up processes,
automated heroes, have more than
increasing accuracy
proven their worth by tackling
With the bank-wide implementation
of RPA, tedious and time-consuming
repetitive processes have been
sped up significantly. Human error
extensive, repetitive routine
processes like large volumes of
transaction and mass maintenance
issues.
has been virtually eliminated from
The benefits to the Bank are
these tasks, and overall output per
plenty. Employees have noted
FVCbank employee has increased
the consistency and predictability
dramatically.
resulting from the automation. They
FVCbank continues to prioritize
innovation and inspired changes to
address challenges head-on.
“
While Robotic
Process Automation
is a rapidly emerging
technology, we here
at FVCbank have
adopted this with
open arms.
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21
20
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OUR LOCATIONS
HEADQUARTERS
11325 Random Hills Road, Suite 240
Fairfax, VA 22030
Phone: 703.436.3800
FAIRFAX BRANCH (VA)
11325 Random Hills Road, Suite 140
Fairfax, VA 22030
Phone: 703.672.2580
ROCKVILLE BRANCH (MD)
1600 E. Gude Drive
Rockville, MD 20850
Phone: 240.268.2265
ARLINGTON BRANCH (VA)
2500 Wilson Boulevard, Suite 100
Arlington, VA 22201
Phone: 703.387.5050
LUTHERVILLE LOAN OFFICE (MD)
22 West Padonia Road, Suite A-200
Lutherville, MD 21093
Phone: 410.387.2620
SPRINGFIELD BRANCH (VA)
6975 Springfield Boulevard
Springfield, VA 22150
Phone: 703.672.2590
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
MANASSAS BRANCH (VA)
7900 Sudley Road, Suite 100
Manassas, VA 20109
Phone: 703.656.7300
WASHINGTON, D.C. BRANCH
1301 9th Street NW
Washington, D.C. 20001
Phone: 202.628.5500
RESTON BRANCH (VA)
11260 Roger Bacon Drive, Suite 101
Reston, VA 20190
Phone: 703.436.3880
BALTIMORE
MARYLAND
WASHINGTON, D.C.
VIRGINIA
22
www.fvcbank.com
ANNUAL REPORT 2021