FVCBankcorp Reports Record Second-Quarter Earnings as Net Income Surges 45% Year Over Year
FVCBankcorp, Inc. (NASDAQ: FVCB) reported record financial results for the second quarter of 2026, highlighting continued improvement in profitability, stronger core deposit growth, expanding net interest margins and solid credit quality. The company generated net income of $8.2 million for the quarter ended June 30, 2026, compared with $5.7 million in the same period a year earlier. The result represented a year-over-year increase of $2.6 million, or 45%.
The company also delivered significant sequential growth. Compared with the first quarter of 2026, net income increased 29% from $6.4 million to $8.2 million. Diluted earnings per share reached $0.45 in the second quarter, up 45% from $0.31 in the second quarter of 2025 and 29% from $0.35 in the first quarter of 2026.
The second-quarter results included a one-time pre-tax gain of $847,000 related to the completed sale of FVCBankcorp’s interest in Bearing Insurance Group, LLC to an unaffiliated third party. Excluding certain non-recurring items, the company’s core operating performance also improved substantially. Core operating earnings, a non-GAAP measure, increased 36% year over year to $7.6 million from $5.5 million.
FVCBankcorp’s profitability metrics also strengthened considerably during the quarter. Return on average assets rose to 1.48%, compared with 1.17% in the first quarter of 2026 and 1.02% in the second quarter of 2025. Return on average equity increased to 12.50%, compared with 10.04% in the linked quarter and 9.39% in the year-ago quarter.
The company said the results reflect the continued benefits of its relationship-driven banking strategy, disciplined balance sheet management and ongoing efforts to improve operating efficiency.
“Our record earnings are the result of our relationship driven strategy and disciplined approach to grow our core customer base,” said David W. Pijor, Esq., Chairman and Chief Executive Officer of FVCBankcorp. “We continue to see margin expansion, our tenth consecutive quarter, improving to 3.53%. This is our fifth consecutive quarter reporting an annualized return of average assets of 1% or better, improving to 1.48% for the second quarter of 2026.”
Pijor also pointed to continued growth in core deposits and progress in managing the company’s commercial real estate concentration. As of June 30, 2026, the company’s commercial real estate concentration stood at 287% of regulatory capital.
Patricia A. Ferrick, President of FVCBankcorp, said the company remains focused on strengthening profitability while expanding customer relationships.
“We remain focused on enhancing profitability and continued operating efficiency,” Ferrick said. “We are equally committed to increasing our loans and deposits by adding new customers and by deepening our existing customer relationships. Our recently announced Hampton Roads loan production office will further support this strategic objective.”
Net Interest Margin Continues to Expand
One of the most significant developments during the quarter was the continued improvement in FVCBankcorp’s net interest margin. The company reported a net interest margin of 3.53% for the second quarter of 2026, compared with 2.90% in the same quarter of 2025 and 3.26% in the first quarter of 2026.
The year-over-year improvement amounted to 63 basis points, while the sequential increase was 27 basis points. The company said the second-quarter net interest margin benefited from approximately $1.0 million in loan fees associated with the prepayment of a commercial real estate loan near the end of the quarter.
Excluding those loan prepayment fees, the net interest margin was 3.35%, still representing a 9-basis-point improvement from the first quarter of 2026. The improvement reflects a combination of better asset yields, lower funding costs and ongoing balance sheet management.
The cost of deposits declined to 2.40% during the second quarter, down from 2.74% in the year-ago period. The lower deposit cost helped support margin expansion and reflects the company’s efforts to build a larger base of lower-cost core deposits.
FVCBankcorp has now reported ten consecutive quarters of margin expansion, underscoring the benefits of its ongoing efforts to improve the composition of both its assets and funding sources.
Core Deposits Continue to Grow
The company reported continued momentum in core deposits during the quarter. Core deposits increased $42.8 million, or 2%, from $1.77 billion at March 31, 2026, to $1.81 billion at June 30, 2026.
On a year-over-year basis, core deposits grew $142.0 million, or 9%, from $1.67 billion at June 30, 2025. The company said the growth demonstrates the strength of its customer relationships and its ability to attract and retain funding from its core banking markets.
Noninterest-bearing deposits were particularly strong. These balances increased $46.0 million, or 12%, during the second quarter to $415.3 million. Compared with the same period last year, noninterest-bearing deposits rose $59.1 million, or 17%. They represented 20.2% of total deposits at June 30, 2026.
At the same time, wholesale deposits declined $18.8 million, or 7%, during the quarter to $241.2 million. The company continues to focus on replacing higher-cost wholesale funding with more stable and lower-cost core customer deposits.
Total deposits reached $2.05 billion at June 30, 2026, compared with $2.00 billion at December 31, 2025, and $1.90 billion at June 30, 2025. Total deposits increased $24.0 million, or 1%, during the second quarter.
Loan Balances Reflect Payoffs and Continued Origination Activity
Loans, net of fees, totaled $1.90 billion at June 30, 2026. This compared with $1.94 billion at the end of 2025 and $1.87 billion at June 30, 2025.
The quarterly decline was primarily attributable to two unexpected loan payoffs totaling $48.7 million. These payoffs generated approximately $1.0 million in loan prepayment fees recognized during the quarter.
Despite the decline in period-end loan balances, FVCBankcorp continued to generate new lending activity. Loan originations totaled $36.6 million during the second quarter and carried a weighted average rate of 7.32%. Loan renewals totaled $29.2 million at a weighted average rate of 6.81%.
Loans that paid off during the quarter totaled $87.2 million and carried a weighted average rate of 6.90%. These payoffs were primarily associated with commercial real estate and construction loans.
Commercial lines of credit declined $11.8 million compared with the previous quarter. Meanwhile, the company’s warehouse lending facility grew by $33.3 million to $67.3 million. The facility carried a weighted average yield of 5.72% at the end of the quarter.
Management said additional loan originations that had been expected to close during the second quarter are now expected to close during the early part of the third quarter.
Strong Credit Quality and Minimal Net Charge-Offs
FVCBankcorp continued to report solid credit quality metrics. Loans past due 30 days or more totaled $2.3 million at June 30, 2026, a decrease of $1.0 million, or 30%, from $3.3 million at March 31, 2026.
Nonperforming loans totaled $11.4 million at June 30, 2026, compared with $12.2 million at the end of the first quarter. Nonperforming loans represented 0.48% of total assets, unchanged from December 31, 2025.
The company recorded net recoveries of $2,000 during the second quarter. For the six months ended June 30, 2026, net charge-offs totaled just $1,000, compared with net charge-offs of $378,000 during the first six months of 2025.
The allowance for credit losses stood at $19.2 million at June 30, 2026, compared with $18.9 million at December 31, 2025. The allowance represented 1.01% of total loans, net of fees, compared with 0.97% at the end of 2025.
The increase in the allowance was primarily related to an updated economic forecast used in the quantitative portion of the company’s credit loss calculation.
FVCBankcorp’s watch list loans totaled $57.9 million at both June 30, 2026, and December 31, 2025. The company said it continues to work closely with borrowers and believes satisfactory resolutions can be achieved.
Commercial Real Estate Exposure Remains a Key Focus
The company continues to actively manage its commercial real estate portfolio and regulatory concentration levels. At June 30, 2026, commercial real estate and construction loans represented 287% of total risk-based capital, while construction loans represented 45%.
Commercial real estate loans totaled $962.3 million, or 51% of total loans, net of fees. Construction loans totaled $139.3 million, representing 7% of total loans.
Combined commercial real estate and construction loans totaled approximately $1.10 billion, or 58% of total loans, at June 30, 2026. This was down from $1.19 billion, or 61% of total loans, at December 31, 2025.
The portfolio includes a variety of property types and geographic markets. Office loans totaled $131.3 million, retail loans totaled $207.6 million and multifamily loans totaled $180.7 million. Industrial loans represented one of the larger portfolio categories at $291.5 million.
The company said the portfolio remains diversified by property type and geography. Its lending policies include rigorous underwriting, loan monitoring and administrative controls designed to identify and manage concentration risks.
FVCBankcorp also said its underwriting practices and ongoing monitoring procedures are intended to provide protection against potential deterioration in economic conditions.
Efficiency Ratio Improves Significantly
Operating efficiency improved meaningfully during the second quarter. The efficiency ratio declined to 49.71%, compared with 56.23% in the same period of 2025 and 53.98% in the first quarter of 2026.
Excluding the $847,000 gain from the sale of the minority interest, the adjusted efficiency ratio was 51.77%.
The improvement reflects the company’s continued focus on controlling expenses while growing revenue and improving its operating performance.
Balance Sheet and Capital Remain Strong
Total assets stood at $2.37 billion at June 30, 2026, up $74.9 million, or 3%, from $2.29 billion at December 31, 2025. Compared with the second quarter of 2025, total assets increased $129.9 million, or 6%.
Investment securities totaled $147.2 million at the end of the quarter, compared with $153.4 million at year-end 2025 and $157.1 million a year earlier.
Shareholders’ equity increased to $265.4 million from $253.6 million at December 31, 2025. Earnings contributed $14.6 million to the increase during the first six months of the year. The increase was partially offset by $2.3 million in cash dividends and $2.1 million in share repurchases during the second quarter.
Tangible book value per share increased to $14.31 from $13.74 at the end of 2025, representing a 4% increase.
The Bank remained well-capitalized at June 30, 2026. Its total risk-based capital ratio was 16.43%, the common equity tier 1 risk-based capital ratio was 15.41% and the Tier 1 leverage ratio was 12.94%.
Dividend Declared
FVCBankcorp’s Board of Directors declared a quarterly cash dividend of $0.07 per common share on July 16, 2026. The dividend is payable August 17, 2026, to shareholders of record as of July 27, 2026.
Based on the current number of shares outstanding, the aggregate dividend payment is expected to total approximately $1.3 million.
Six-Month Results Show Broad-Based Improvement
For the six months ended June 30, 2026, FVCBankcorp reported net income of $14.6 million, or $0.81 per diluted share. This compared with net income of $10.8 million, or $0.59 per diluted share, during the first six months of 2025.
Net income increased $3.8 million, or 35%, year over year. Return on average assets improved to 1.33% from 0.98%, while return on average equity rose to 11.29% from 8.99%.
The company also continued to benefit from its minority investment in Atlantic Coast Mortgage, LLC. Income from the investment totaled $600,000 during the second quarter, compared with $351,000 in the same period of 2025. For the first six months of 2026, income from the investment reached $840,000, up from $491,000 a year earlier.
The growth at Atlantic Coast Mortgage was driven by continued strategic expansion and geographic diversification. Loan originations increased 72% during the first six months of 2026 compared with the same period in 2025.
Overall, FVCBankcorp’s second-quarter results point to a period of strong earnings momentum. The company is benefiting from sustained margin expansion, growing core deposits, improved operating efficiency and strong credit performance. At the same time, management continues to focus on carefully managing commercial real estate exposure, strengthening customer relationships and expanding lending opportunities.
With the company’s Hampton Roads loan production office expected to support future growth and core deposits continuing to expand, FVCBankcorp appears positioned to build on its record second-quarter performance through the remainder of 2026.
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