More annual reports from FVCBankcorp, Inc.:
2023 Report2023 Annual Report Patricia A. Ferrick President 2023 Annual Report What’s Inside A Letter from the Chairman and CEO ................................................................4 Directors and Officers .........................................................................................6 What’s Inside Locations ...............................................................................................................7 Banking Adapts to Changing Technology ........................................................8 A Letter from the Chairman and CEO ................................................................4 Community Involvement ...................................................................................10 Board of Directors ................................................................................................6 Lasting Client Relationships .............................................................................10 Executive Team .....................................................................................................7 Testimonials ........................................................................................................11 Senior Officers ......................................................................................................8 Medical Services: Virginia Spine Institute ....................................................12 Streamlining Financial Performance .................................................................9 Commercial Property Management: Rappaport .......................................14 Technology Has Its Place ..................................................................................10 Real Estate Development: Community Three .............................................16 Accountability .....................................................................................................11 Government Contractors: Kore Capital Corporation .................................18 Our Approach .............................................................................................12 Private Schools: ImagiNation Learning Centers .........................................20 Community Engagement ...........................................................................13 Title and Settlement: Certified Title Corporation .........................................22 Customer Relationships ............................................................................14 Selected Financial Data .............................................................................24 Client Testimonials .....................................................................................15 What Our Fintech Partners Say .................................................................16 Our Locations .............................................................................................19 Selected Financial Data .............................................................................20 Value Added Service ..................................................................................22 At Your Service ...........................................................................................23 3 2023 Annual Report David W. Pijor, Esq. Chairman & Chief Executive Officer To Our Shareholders Thank you for investing in FVCbank. In this letter, I am pleased to acknowledge the technological accomplishments of your company, the theme of which inspired the design of this year's annual report. Our commitment is to provide the most modern technology, quality products, and exceptional personal service. Businesses now benefit from our investment of time and resources into the convenience of secure online and mobile platforms that supplement our branches. The Bank's significant investment in financial technology enhances the customer experience and frees up our calling officers to spend more personal time with the customers they serve. I can confidently state that FVCbank is at the forefront of modern banking. In 2023, we introduced unique technologies among our local community bank peers. Our focus on modern banking technology opens many opportunities for our customers and bank operations, which inspired us to change our tagline to: One Bank. Unlimited Possibilities. First, we acquired an advanced single-platform banking solution Q2. Previously, we had different systems and management consoles for online, voice, and mobile banking, but Q2 combined everything into a single core integration. The result is an exceptional and seamless banking experience for our account holders. Second, we rolled out Lightning Lending, our branded name for a digital loan origination system developed by the fintech Numerated. Numerated's platform brings digital convenience designed to assist smaller businesses with loans of up to $500,000. The online loan application process takes minutes. An FVCbank account must be opened, and successful applicants usually receive funds in their account within 48 hours after loan approval. Third, we introduced Business Insights, an accounting platform developed by Monit. This platform syncs with a customer's accounting 4 FVCBankcorp, Inc.2023 Annual Report software, enabling small and medium-sized businesses to gain insights into their companies, such as competitive benchmarking, cash flow forecasting, and financial performance trends. will always be our top priorities. Despite these headwinds, as a relationship based bank focused on our franchise value, our team enhanced and increased our core deposit base year-over-year, a difficult task in this highly competitive banking market. What’s Inside Fourth, FVCbank increased its use of Robotic Process Automation (RPA) to advance employee satisfaction, engagement, and productivity by removing mundane tasks from their workdays. RPA is a software technology that makes it easy to build, deploy, and manage software robots that mimic human action interacting with digital systems and software. A Letter from the Chairman and CEO ................................................................4 Directors and Officers .........................................................................................6 Locations ...............................................................................................................7 Banking Adapts to Changing Technology ........................................................8 During 2023, we executed two balance sheet repositionings and focused on enhancements to our operating structure. While these strategic initiatives impacted net income for 2023, these initiatives will improve profitability and efficiencies going into 2024. We are well positioned to create shareholder value and will remain focused on client service, quality core growth, expense discipline, and strategic balance sheet management. Community Involvement ...................................................................................10 Lasting Client Relationships .............................................................................10 The fifth example I will offer is an intuitive banking platform called BankPoint. This platform simplifies the management of loan reviews and processing, deposits, and documents. It is another way to increase our back office efficiencies and streamline loan concentration management. Testimonials ........................................................................................................11 Community banks are essential for local small and medium-sized businesses. As a community bank, FVCbank knows its role in bringing together companies and individuals to help them attain their goals. FVCbank is a source of strength in difficult economic times. We are committed to helping finance aspirations. Medical Services: Virginia Spine Institute ....................................................12 Commercial Property Management: Rappaport .......................................14 Real Estate Development: Community Three .............................................16 Government Contractors: Kore Capital Corporation .................................18 Finally, I would be remiss if I excluded KlariVis from my list. KlariVis provides real-time insights into performance, key metrics, and emerging trends, enabling our bankers to make informed decisions. KlariVis is an ever-evolving data-driven platform, pulling facts and figures from the Bank’s significant data resources to improve our decision-making quickly and easily, obtain customer insights, increase internal efficiencies, and enhance risk management. Private Schools: ImagiNation Learning Centers .........................................20 Title and Settlement: Certified Title Corporation .........................................22 In closing, I wish to thank our directors, officers, and staff for their support. Most significantly, I thank our shareholders and customers for your trust in FVCbank. We value your business and are enthusiastic about a prosperous future. Selected Financial Data .............................................................................24 While we are committed to providing advanced technology systems to benefit our clients, we remain steadfast in offering personal attention. Sincerely, 2023 was a challenging year for financial institutions, including FVCbank. Our commitment to sound strategic banking and serving our clients are and David W. Pijor, Esq. Chairman & Chief Executive Officer "Our commitment is to provide the most modern financial technology and exceptional personal service." 5 2023 Annual Report Board of Directors “FVCbank benefits from the distinguished careers of our directors. They share their time and talent in the community, assisting business organizations or underserved communities. I am grateful for their corporate stewardship. Together, we are committed to an exceptional financial performance, one that, year after year, will profit our investors, our employees, and most especially, our customers.” David W. Pijor, Esq., Chairman & CEO Seated: David W. Pijor, Esq. Chairman & CEO | Seated: Patricia A. Ferrick, President Standing front left to right: L. Burwell Gunn, Vice Chairman and Meena Krishnan Standing left to right: Daniel M. Testa, Marc N. Duber, Lawrence W. Schwartz, Devin Satz, Sidney G. Simmonds, Scott Laughlin Not pictured: Thomas L. Patterson, Steven M. Wiltse, and Phillip “Trey” R. Wills III 6 FVCBankcorp, Inc.2023 Annual Report Executive Team What’s Inside A Letter from the Chairman and CEO ................................................................4 Directors and Officers .........................................................................................6 Patricia A. Ferrick President David W. Pijor, Esq. Chairman & Chief Executive Officer Locations ...............................................................................................................7 Banking Adapts to Changing Technology ........................................................8 Community Involvement ...................................................................................10 Lasting Client Relationships .............................................................................10 Testimonials ........................................................................................................11 Medical Services: Virginia Spine Institute ....................................................12 Commercial Property Management: Rappaport .......................................14 B. Todd Dempsey Executive Vice President Chief Operating Officer William G. Byers Executive Vice President Chief Lending Officer Real Estate Development: Community Three .............................................16 Michael G. Nassy Executive Vice President Chief Credit Officer Government Contractors: Kore Capital Corporation .................................18 Private Schools: ImagiNation Learning Centers .........................................20 Title and Settlement: Certified Title Corporation .........................................22 Selected Financial Data .............................................................................24 Jennifer L. Deacon Executive Vice President Chief Financial Officer Sharon L. Jackson Executive Vice President Chief Banking Officer Alissa M. Curry Briggs Executive Director of Commercial Real Estate Lending “FVCbank is fortunate to have a stable and experienced executive team. I rely heavily on their sound advice. Together, we have traveled the road to success through turbulent economic environments, pandemics, and historic swings in interest rates. I am grateful to my team of executives and value their counsel now and as we move forward to even greater times.” Patricia A. Ferrick, President 7 2023 Annual Report Senior Officers Joanna Atchison Meera Parikh Senior Vice President / Credit Administration Senior Vice President / Controller Michelle Buckles Chief Risk Officer Joseph Catalano Senior Vice President / Commercial Loan Officer Lisa M. Craze Brandon Parker Senior Vice President / Director of Portfolio Credit Risk Sharon Ricciardi Senior Vice President / Director of Business Development Senior Vice President / Loan Documentation and Administration Christine M. Rowe Senior Vice President / Treasury Services Manager James C. Elliott Market President / Virginia Craig Gajewski Altaf Shadick Chief Retail Officer Huong V. Song Senior Vice President / Commercial Loan Officer Senior Vice President / Commercial Loan Officer Joshua F. Steele Commercial Real Estate Lending Executive Steffany R. Watson Senior Vice President / Directory of Treasury Management Services R. Bruce Gemmill Chief Marketing Officer Alberta A. Gibson Senior Vice President / Director of Human Resources Sharon Gray Senior Vice President / Loan Operations Uriel Gregoire Senior Vice President / GovCon and C&I Commercial Loan Officer Josh Grimes Chief Technology Officer Craig Laudeman Senior Vice President / Market President Linda Long Senior Vice President / Commercial Loan Officer Timothy Moorstein Director of C & I and Government Contractor Lending Christopher Muracco Senior Vice President / Senior Operations Officer Mark Palmer Senior Vice President / Commercial Loan Officer 8 FVCBankcorp, Inc.2023 Annual Report Streamlining Financial Performance What’s Inside A Letter from the Chairman and CEO ................................................................4 Directors and Officers .........................................................................................6 Locations ...............................................................................................................7 Banking Adapts to Changing Technology ........................................................8 Community Involvement ...................................................................................10 Lasting Client Relationships .............................................................................10 Testimonials ........................................................................................................11 Medical Services: Virginia Spine Institute ....................................................12 Commercial Property Management: Rappaport .......................................14 Real Estate Development: Community Three .............................................16 Government Contractors: Kore Capital Corporation .................................18 Private Schools: ImagiNation Learning Centers .........................................20 Today’s ever-evolving banking requires FVCbank to stay on top of current and innovative technology to improve the customer experience. We continuously research Title and Settlement: Certified Title Corporation .........................................22 and deploy platforms to ensure our clients enjoy a streamlined financial experience. Selected Financial Data .............................................................................24 Recognizing our customers operate in a fast-paced environment, the technology we introduce is crucial for their day-to-day financial operations and efficient, quick, and secure online banking. FVCbank is also expanding its capabilities to gain competitive advantages. Staying ahead of the local banking industry through technological implementation benefits our customers and operations. 9 2023 Annual Report Technology Has Its Place Technology has made banking easier in many ways. Fewer trips to a branch office mean reduced stress from sitting for long hours in the infamous Washington, DC, Northern Virginia, and Baltimore traffic. By leveraging the latest secure technology, we provide our customers with a convenient, efficient, easy, and quick banking experience. However, while having the best technology of the day serves our clients’ critical financial transactional needs, personal, one-on-one relationships will always be at the forefront of the FVCbank mission. We are confident our rapid growth will be sustained by remaining true to the spirit of relationship banking and forging ahead as we focus on providing accessible, fast, secure, efficient, and personal service for our customers. 10 FVCBankcorp, Inc.2023 Annual Report Accountability What’s Inside A Letter from the Chairman and CEO ................................................................4 Directors and Officers .........................................................................................6 Locations ...............................................................................................................7 Banking Adapts to Changing Technology ........................................................8 Community Involvement ...................................................................................10 Lasting Client Relationships .............................................................................10 Testimonials ........................................................................................................11 Medical Services: Virginia Spine Institute ....................................................12 Commercial Property Management: Rappaport .......................................14 Real Estate Development: Community Three .............................................16 Government Contractors: Kore Capital Corporation .................................18 Selected Financial Data .............................................................................24 Private Schools: ImagiNation Learning Centers .........................................20 Local banks, like FVCbank, finance small businesses’ economic growth in the Washington, DC, and Baltimore regions. As such, we are accountable for the Title and Settlement: Certified Title Corporation .........................................22 success of the companies we are privileged to serve. Looking back, until 2023, our slogan from the start of FVCbank was Success Has a Bank. That sentiment remains true today, even though our tagline changed to reflect our dedication to securing advancements in financial technologies to serve the needs of our customers - One Bank. Unlimited Possibilities. Our officers understand the local economies and can provide small business loans to guide customers through each loan’s risks and rewards. Each company has unique needs, and our lenders will customize terms to benefit every requirement. FVCbank officers dedicate themselves to providing optimum service to help our customers achieve their goals with maximum convenience and security. We take our accountability to customers, shareholders, and fellow FVCbank colleagues seriously. 11 2023 Annual Report Our Approach FVCbank is grateful to those who trust us, and we will never take their confidence in us for granted. Maintaining security during a time when fraudulent activity is pervasive requires dedication by our IT team. Equally important to providing security for our customers’ banking transactions is the personal attention every customer deserves, regardless of the relationship size. Call our main number, and you will speak to a person. Our customers know why FVCbank stands apart from other financial institutions, and it begins with a sincere desire to get to know the customer and their business and establish a continuous cordial relationship. 12 FVCBankcorp, Inc.2023 Annual Report Community Engagement What’s Inside A Letter from the Chairman and CEO ................................................................4 Directors and Officers .........................................................................................6 Locations ...............................................................................................................7 Banking Adapts to Changing Technology ........................................................8 Community Involvement ...................................................................................10 Lasting Client Relationships .............................................................................10 Testimonials ........................................................................................................11 Medical Services: Virginia Spine Institute ....................................................12 Commercial Property Management: Rappaport .......................................14 Real Estate Development: Community Three .............................................16 Government Contractors: Kore Capital Corporation .................................18 Private Schools: ImagiNation Learning Centers .........................................20 Title and Settlement: Certified Title Corporation .........................................22 Our bankers are fully committed to giving back to the communities in which they work, live, and enjoy. Even in affluent areas, there are neighbors in need. By involvement at all levels with charities, our bankers remain engaged and committed to good works. By serving on boards, assisting nonprofit staff, or teaching financial best practices, we play a small part in building healthier and happier communities. Selected Financial Data .............................................................................24 Through our continued community involvement, our bankers put a human face to the company, making it a visible reminder that we are local and serve the needs of area businesses and nonprofits. FVCbank is proud of its reputation as a reliable, trustworthy, and generous financial institution. 13 2023 Annual Report Customer Relationships Every staff member at FVCbank is committed to providing exceptional customer service. We pride ourselves on high customer loyalty because of our attention to product and service. Our Executive Management remains current with banking technology and maintains a steady pace in acquiring platforms that make banking with us seamless, secure, and accessible. With today’s technology and superior customer service, FVCbank is well positioned to continue serving the Washington, D.C., and Baltimore regions for many years. Our bankers are knowledgeable about the local markets, they are accessible and are empowered to make timely decisions. Our dedication to providing all it takes for the best customer experience leads to FVCbank enjoying customer relationships that last for many years and a positive experience for its investors. 14 FVCBankcorp, Inc.2023 Annual Report Client Testimonials What’s Inside Ronald McDonald House of Greater Washington, DC: “We value FVCbank as a trusted financial A Letter from the Chairman and CEO ................................................................4 partner and, take it from me folks, you can too!” Mission 1st: “Take it from us… We do what others can’t, we go where others won’t, we succeed when others don’t and so does FVCbank. That’s why you need FVCbank as your trusted financial partner.” Directors and Officers .........................................................................................6 Locations ...............................................................................................................7 Banking Adapts to Changing Technology ........................................................8 Community Involvement ...................................................................................10 Lasting Client Relationships .............................................................................10 Testimonials ........................................................................................................11 540: “FVCbank has been a terrific business partner. We were looking for a Medical Services: Virginia Spine Institute ....................................................12 local bank that understood the federal government contracting business and Commercial Property Management: Rappaport .......................................14 would provide the services we needed for our business to be successful.” Van Metre: “As a trusted Van Metre partner focused on creating opportunity within our community, FVCbank is the bank to use. We value our relationship with FVCbank, and you will too.” Real Estate Development: Community Three .............................................16 Government Contractors: Kore Capital Corporation .................................18 Private Schools: ImagiNation Learning Centers .........................................20 Title and Settlement: Certified Title Corporation .........................................22 Selected Financial Data .............................................................................24 West 4TH Solutions: “FVCbank is a fantastic partner, and I would recommend them to anybody, particularly in the government contracting space. They have been helpful to us as we pursue mergers and acquisitions to grow and be competitive in the federal space. We love them.” Realty Exchange Corporation: “We value FVCbank as a trusted partner and you will, too. FVCbank is the bank to use.” 15 2023 Annual Report What the Fintechs Say Monit Last year, FVCbank further bolstered its technology offerings to business customers through a first- in-market partnership with fintech Monit. Business customers can now directly access Monit’s “digital CFO” tools in the bank’s digital experience. FVCbank and Monit recognize business owners want to focus on running their companies, driving revenue, and developing employees rather than being bogged down by intricate financial details. That’s why Monit’s automated cash flow forecasting, industry benchmarking, business valuation, and other tools are so valuable to organizations of all types. FVCbank’s collaboration with Monit underscores a shared commitment to liberate busy management from the burden of financial minutiae, allowing them to channel their focus toward strategic growth and innovation. Monit works with forward-thinking banks across the United States with the mission of helping business owners make better financial decisions. One FVCbank client noted, “The [Monit] tools provide peace of mind, offering a clear understanding of my business’s current standing and trajectory.” 16 We help banks and businesses grow together FVCBankcorp, Inc.2023 Annual Report What the Fintechs Say What’s Inside Numerated Numerated transforms how financial institutions lend to businesses, making the process faster, easier, and more profitable. FVCbank leverages Numerated’s business lending applications to exceed borrower expectations for convenience while driving significant gains in efficiency. A Letter from the Chairman and CEO ...................................4 FVCbank partnered with Numerated to launch its Directors and Officers .............................................................6 Lightning Lending program Locations ..................................................................................7 as part of its ongoing strategic commitment to Banking Adapts to Changing Technology ...........................8 transitioning from a traditional banking model to a more Community Involvement .......................................................10 sophisticated fintech bank of Lasting Client Relationships ................................................10 the future and to better serve the needs of its customers. Testimonials ............................................................................11 The AI-driven platform uses data to streamline originations and underwriting from application to close. In addition to their full-service business lending solutions, Numerated offers integrations into other banking technology providers, empowering financial institutions to leverage their existing investments and extract more value with complementary solutions that enhance the borrower experience. Medical Services: Virginia Spine Institute ....................................................12 Commercial Property Management: Rappaport .......................................14 Real Estate Development: Community Three .............................................16 Government Contractors: Kore Capital Corporation .................................18 “FVCbank’s decision to innovate their small business segment enables them to meet the evolving needs of business customers,” said Numerated CEO and co-founder Dan O’Malley. “As business borrower expectations continue to change, it’s important that lenders continue to adapt to provide borrowers with consistent, efficient experiences, and FVC is doing just that. We’re excited to be a partner with them on this journey.” Private Schools: ImagiNation Learning Centers .........................................20 Title and Settlement: Certified Title Corporation .........................................22 Selected Financial Data .............................................................................24 By fully embracing the benefits of Numerated’s fintech, FVCbank’s Lightning Lending program offers a seamless digital application for term loans between $25,000 and $500,00 to business owners in the greater Baltimore and Washington, D.C. metropolitan areas. Numerated’s meaningful and innovative business lending solutions, backed by superior service, enable business leaders to excel at their jobs, exceed their organizational goals, and provide a fast, easy, and profitable lending experience. 17 2023 Annual Report What the Fintechs Say KlaraVis FVCbank’s progressive approach shines through its adoption of KlariVis®, a cutting-edge cloud-based enterprise dashboard and analytics solution. By embracing KlariVis, FVCbank emphasizes its dedication to harnessing innovation for the benefit of its employees, operational efficiency, and the overall value provided to shareholders and customers. “KlariVis is dedicated to revolutionizing the way banks leverage data for growth and success,” shares Kim Snyder, CEO and Founder of KlariVis. “Our longstanding partnership with FVCbank underscores their commitment to staying ahead in an ever-evolving industry, enhancing their ability to serve customers and drive meaningful results.” Established in 2019, KlariVis, developed by former bank leaders, consolidates a bank’s fragmented high-value data into interactive self-service dashboards and reports, fueling profitability and boosting productivity at every organizational level. With over 650 interactive and static dashboards, FVCbank can easily make well-informed decisions, bypassing the complexities of outdated reporting processes. Through its collaboration with KlariVis, FVCbank continues to set the benchmark for innovative and effective banking solutions. 18 FVCBankcorp, Inc.2023 Annual Report Our Locations What’s Inside A Letter from the Chairman and CEO ................................................................4 Directors and Officers .........................................................................................6 Locations ...............................................................................................................7 Banking Adapts to Changing Technology ........................................................8 Community Involvement ...................................................................................10 Lasting Client Relationships .............................................................................10 Testimonials ........................................................................................................11 Medical Services: Virginia Spine Institute ....................................................12 Commercial Property Management: Rappaport .......................................14 Manassas Branch 7900 Sudley Road, Suite 100 Manassas, VA 20109 703-656-7300 Real Estate Development: Community Three .............................................16 Government Contractors: Kore Capital Corporation .................................18 Reston Branch 11260 Roger Bacon Drive, Suite 101 Reston, VA 20190 703-436-3880 Private Schools: ImagiNation Learning Centers .........................................20 Title and Settlement: Certified Title Corporation .........................................22 Selected Financial Data .............................................................................24 Headquarters 11325 Random Hills Road, Suite 240 Fairfax, VA 22030 703-436-3800 Main Branch 11325 Random Hills Road, Suite 140 Fairfax, VA 22030 703-672-2580 Arlington Branch 2500 Wilson Boulevard, Suite 100 Arlington, VA 22201 703-387-5050 Springfield Branch 6975 Springfield Boulevard Springfield, VA 22150 703-672-2590 Baltimore Branch 224 Albemarle Street Baltimore, MD 21202 410-685-4611 Bethesda Branch 6929 Arlington Road Bethesda, MD 20814 301-652-2265 Washington, DC Branch 1301 9th Street, NW Washington, DC 20001 202-628-5500 Loan Production Office 100 West Road, Suite 302 Towson, MD 21204 410-387-2607 19 2023 Annual Report Selected Financials Selected Financial Data (Dollars and shares in thousands, except per share data) Years Ended December 31, 2023 2022 2021 2020 2019 $ 106,615 $ 80,682 $ 68,428 $ 67,103 $ 66,734 52,219 54,396 132 54,264 (13,370) 36,662 4,232 410 15,438 65,244 2,629 62,615 2,834 34,460 30,989 6,005 10,481 57,947 (500) 58,447 4,302 34,540 28,209 6,276 14,483 52,620 5,016 47,604 2,891 30,838 19,657 4,156 18,671 48,063 1,720 46,343 2,546 28,877 20,012 4,184 $ 3,822 $ 24,984 $ 21,933 $ 15,501 $ 15,828 $ 2,190,558 $ 2,344,322 $ 2,202,924 $ 1,821,481 $ 1,537,295 1,828,564 1,840,434 1,503,849 1,466,083 1,270,526 (18,871) (16,040) 171,859 278,333 (13,829) 358,038 (14,958) 126,415 (10,231) 141,589 1,845,292 1,830,162 1,883,769 1,532,493 1,285,722 85,000 217,117 17,807 284,565 202,382 17,476 44,510 209,796 13,727 69,085 49,487 189,500 179,078 13,511 13,902 $ 0.22 $ 1.43 $ 1.29 $ 0.91 $ 0.92 0.21 12.19 11.77 1.35 11.58 11.14 1.20 12.23 11.76 0.88 11.22 10.73 0.86 10.30 9.81 0.17 % 1.18 % 1.11 % 0.91 % 1.09 % 1.82 2.49 89.36 (0.59) 1.61 99.09 12.34 3.19 50.62 0.13 1.62 100.56 10.92 3.09 55.49 0.22 1.75 79.83 8.48 3.28 55.55 0.17 1.80 95.67 9.32 3.48 57.06 0.18 1.99 98.82 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(1): Basic net income Fully diluted net income Book value Tangible book value (2) Performance Ratios: Return on average assets Return on average equity Net interest margin (3) Efficiency ratio (4) Non-interest income to average assets Non-interest expense to average assets Loans receivable, net of fees to total deposits 20 FVCBankcorp, Inc.2023 Annual Report Selected Financial Data (Dollars and shares in thousands, except per share data) Net interest income after provision for loan losses Income Statement Data: Interest income Interest expense Net interest income 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(1): Basic net income Fully diluted net income Book value Tangible book value (2) Performance Ratios: Return on average assets Return on average equity Net interest margin (3) Efficiency ratio (4) Non-interest income to average assets Non-interest expense to average assets Loans receivable, net of fees to total deposits Years Ended December 31, 2023 2022 2021 2020 2019 $ 106,615 $ 80,682 $ 68,428 $ 67,103 $ 66,734 52,219 54,396 132 54,264 (13,370) 36,662 4,232 410 15,438 65,244 2,629 62,615 2,834 34,460 30,989 6,005 10,481 57,947 (500) 58,447 4,302 34,540 28,209 6,276 14,483 52,620 5,016 47,604 2,891 30,838 19,657 4,156 18,671 48,063 1,720 46,343 2,546 28,877 20,012 4,184 $ 3,822 $ 24,984 $ 21,933 $ 15,501 $ 15,828 $ 2,190,558 $ 2,344,322 $ 2,202,924 $ 1,821,481 $ 1,537,295 1,828,564 1,840,434 1,503,849 1,466,083 1,270,526 (18,871) (16,040) 171,859 278,333 (13,829) 358,038 (14,958) 126,415 (10,231) 141,589 1,845,292 1,830,162 1,883,769 1,532,493 1,285,722 85,000 217,117 17,807 284,565 202,382 17,476 44,510 209,796 13,727 69,085 49,487 189,500 179,078 13,511 13,902 $ 0.22 $ 1.43 $ 1.29 $ 0.91 $ 0.92 0.17 % 1.18 % 1.11 % 0.91 % 1.09 % 0.21 12.19 11.77 1.82 2.49 89.36 (0.59) 1.61 99.09 1.35 11.58 11.14 12.34 3.19 50.62 0.13 1.62 100.56 1.20 12.23 11.76 10.92 3.09 55.49 0.22 1.75 79.83 0.88 11.22 10.73 8.48 3.28 55.55 0.17 1.80 95.67 0.86 10.30 9.81 9.32 3.48 57.06 0.18 1.99 98.82 2000 1500 500 0 Selected Financials Selected Financial Data (Dollars and shares in thousands, except per share data) Years Ended December 31, 2021 2023 2022 2020 2019 Asset Quality Ratios: Net charge-offs (recoveries) to average loans receivable, net of fees Nonperforming loans to loans receivable, net of fees What’s Inside Nonperforming assets to total assets 0.02 % 0.03 % 0.04 % 0.02 % 0.05 % 0.10 0.08 0.24 0.19 0.23 0.16 0.38 0.52 Allowance for loan losses to nonperforming loans A Letter from the Chairman and CEO ................................................................4 1,031.77 357.00 394.21 266.11 Directors and Officers .........................................................................................6 0.87 1.03 0.92 1.02 Allowance for loan losses to loans receivable, net of fees Capital Ratios (Bank Only): Tangible common equity (to tangible assets) Total risk-based capital (to risk weighted assets) Common equity tier 1 capital (to risk weighted assets) Tier 1 levarage (to average assets) Other: Average shareholders' equity to average total assets Average loans receivable, net of fees to average total deposits Average common shares outstanding(1): Basic 1500 2000 CAGR 8% Locations ...............................................................................................................7 8.86 % 9.81 % Banking Adapts to Changing Technology ........................................................8 13.28 13.54 Community Involvement ...................................................................................10 12.45 10.75 12.72 10.55 Lasting Client Relationships .............................................................................10 10.12 % 13.83 12.80 10.77 11.83 % 15.27 14.25 11.65 Testimonials ........................................................................................................11 9.53 % 9.24 % Loans Receivable, net of fees (Millions) 10.15 % Total Deposits (Millions) 10.70 % Medical Services: Virginia Spine Institute ....................................................12 96.52 86.80 CAGR 7% 86.77 $1,884 98.51 2000 $1,830 Commercial Property Management: Rappaport .......................................14 17,723 Real Estate Development: Community Three .............................................16 18,231 Government Contractors: Kore Capital Corporation .................................18 18,484 17,431 17,062 $1,286 18,227 $1,532 $1,271 $1,504 $1,466 1000 1500 1000 16,928 17,668 $1,840 $1,829 Diluted (1) Amounts for all periods include the effect of a 5-for-4 stock split declared on December 15, 2022. Private Schools: ImagiNation Learning Centers .........................................20 (2) Tangible book value is calculated as total shareholders’ equity, less goodwill and other intangible assets, divided by common shares outstanding. Title and Settlement: Certified Title Corporation .........................................22 (3) Net interest margin is calculated as net interest income divided by total average earning assets. 500 500 (4) Efficiency ratio is calculated as total non-interest expense divided by the total of net interest income and non-interest income. 2020 Selected Financial Data .............................................................................24 2019 2021 2023 2019 2021 2020 2022 2022 2023 0 0 35,000 Income Before Nonrecurring Expenses and Taxes (Thousands) 0.84 0.95 95.39 0.81 12.21 % 13.43 12.72 12.15 11.71 % $1,845 98.56 17,271 18,531 Loans Receivable, net of fees (Millions) Loans Receivable, net of fees (Millions) Total Deposits (Millions) Total Deposits (Millions) Nonperforming assets to total assets 2000 CAGR 8% $1,840 CAGR 8% $1,829 30,000 $1,840 $1,829 2000 CAGR 16% CAGR 7% 2000 $1,884 CAGR 7% $1,830 $1,884 $1,845 1.0 $1,830 $1,845 1500 $29,798 $1,532 1500 $31,114 $1,532 $1,286 $1,286 $1,466 1500 $1,504 $1,271 $1,271 $1,466 $1,504 1000 1000 500 25,000 20,000 15,000 1000 1000 $20,145 $20,333 $16,446 500 500 2018 2019 2020 2021 2022 0.95% 0.52% 0.8 0.6 0.4 0.2 0.16% 0.19% 0.08% 2019 0 2020 2021 2019 2022 2020 2023 2021 2022 2023 0 2019 2020 0 2019 2021 2020 2022 2021 2023 0.0 2022 2019 2023 2020 2021 2022 2023 Income Before Nonrecurring Expenses and Taxes (Thousands) Income Before Nonrecurring Expenses and Taxes (Thousands) 35,000 35,000 Nonperforming assets to total assets Nonperforming assets to total assets 21 30,000 CAGR 16% 30,000 CAGR 16% $31,114 $31,114 $29,798 $29,798 0.95% 0.95% 25,000 25,000 0.6 0.52% 0.52% 20,000 20,000 $20,145 $20,333 $20,145 $20,333 $16,446 $16,446 15,000 2018 15,000 2019 2018 2020 2019 2021 2020 2022 2021 2022 0.16% 0.19% 0.19% 0.16% 0.08% 0.08% 2019 0.0 2020 2019 2021 2020 2022 2021 2023 2022 2023 1.0 0.8 0.4 0.2 1.0 0.8 0.6 0.4 0.2 0.0 2023 Annual Report Value Added Service Since 2007, FVCbank has delivered added value to the businesses it serves. While financial services is at the core of our offerings, FVCbank extends opportunities to its customers that bring value beyond traditional bank transactions. Mission 1st One successful marketing initiative in 2023 was a series of customer interviews aired on the influential Washington, DC News/Talk radio station WTOP 103.5 FM. Patricia A. Ferrick, president of FVCbank, moderated discussions with customers, each of whom was allowed ample time to promote their business. The final 60-second interviews aired on the radio station at no cost to FVCbank customers. Our customers received brand exposure in the highly competitive Washington, DC market, while FVCbank garnered acclaim through customer endorsements. The Bank is committed to bringing additional value to its client relationships. Community Three Van Metre Ronald McDonald House Realty Exchange Corporation Certified Title Virginia Spine Institute 22 FVCBankcorp, Inc.2023 Annual Report At Your Service Lending Leads Alissa Curry Briggs – Executive Director of What’s Inside FVCbank is all about service. Our footprint has many competing banks, and customers choose us because of our exemplary reputation. Driving our good name among community banks is the personal attention we give to every client. We are accessible, and we do more than pay lip service to the needs of our customers. A Letter from the Chairman and CEO ................................................................4 Commercial Real Estate Lending Directors and Officers .........................................................................................6 James C. Elliott – Market President / Virginia Craig Laudeman – Market President / Maryland Timothy Moorstein – Director of C & I and Locations ...............................................................................................................7 Government Contractor Lending Banking Adapts to Changing Technology ........................................................8 Joshua F. Steele – Commercial Real Estate Lending Community Involvement ...................................................................................10 Executive Every staff member of FVCbank embraces personal ownership of ensuring our customers receive the attention they deserve. Department supervisors oversee seamless operations so our customers enjoy a positive relationship with their bank. Lasting Client Relationships .............................................................................10 Testimonials ........................................................................................................11 Medical Services: Virginia Spine Institute ....................................................12 Commercial Property Management: Rappaport .......................................14 Department Leads Michael Bowab – Deposit Operations Lisa Craze – Loan Documentation and Real Estate Development: Community Three .............................................16 Administration Government Contractors: Kore Capital Corporation .................................18 Sharon Gray – Loan Administration Sharon Ricciardi – Business Development Altaf Shadick – Retail Administration Tonya Smith – Mortgage Loan Operations Steffany Watson – Treasury Management Private Schools: ImagiNation Learning Centers .........................................20 Title and Settlement: Certified Title Corporation .........................................22 Selected Financial Data .............................................................................24 Branch Managers Brittany Bower - Fairfax Peggy Elie – Reston Beverly Holloway – Bethesda Abire Lekezime – Rockville Peter Michael – Springfield Cesare Morisi – Baltimore Steffon Nelson – Washington, DC Nancy Walker – Manassas and Arlington 23 2023 Annual Report fvcbank.com
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