FVCBankcorp Reports Strong Third Quarter Results with 19% Profit Growth and Record Core Deposit Expansion
FVCBankcorp, Inc., the parent company of FVCbank, announced another strong financial performance for the third quarter of 2025, demonstrating continued earnings momentum, disciplined loan growth, and robust deposit expansion. The company reported net income of $5.6 million for the quarter ended September 30, 2025, representing a 19% increase from the $4.7 million recorded in the same quarter of 2024. Diluted earnings per share rose to $0.31, compared with $0.25 in the prior-year period—an improvement of 24%.
For the first nine months of 2025, FVCBankcorp’s net income surged 61% year-over-year to $16.4 million, or $0.90 per diluted share, compared with $10.2 million, or $0.55 per diluted share, in the same period of 2024. This exceptional growth was fueled by steady improvements in net interest margin, disciplined cost management, and sustained credit quality across its lending portfolio.
Consistent Core Operating Performance
FVCBankcorp’s core operating earnings, which exclude nonrecurring items, totaled $5.6 million for the third quarter of 2025—slightly above the $5.5 million earned in the second quarter. Compared to the year-ago period, core operating earnings rose by 19%, or $910,000.
For the nine months ended September 30, 2025, core operating earnings reached $16.3 million, up from $12.6 million in the prior-year period, representing a 30% increase. This reflects the company’s ability to maintain growth and profitability despite a challenging macroeconomic environment.
Pre-tax, pre-provision operating income—another key non-GAAP measure—rose 6% sequentially and 30% year-over-year to $7.6 million, underlining the company’s improving operational efficiency.
Expanding Margins and Rising Net Interest Income
A standout factor in the quarter was FVCBankcorp’s continued improvement in its net interest margin (NIM), which reached 2.91%, marking the seventh consecutive quarter of margin expansion. This represented a 10% increase from the 2.64% margin reported in the third quarter of 2024 and a modest gain from 2.90% in the second quarter of 2025.
Net interest income grew 13% year-over-year to $16.0 million, up from $14.2 million in the same period last year. On a linked-quarter basis, it increased by $274,000. The growth was driven primarily by the combination of improved yields on earning assets and a reduction in the cost of deposits.
Interest income for the quarter totaled $29.8 million, up 2% from a year earlier, while interest expense declined 8% to $13.8 million. This balance between income and expense improvement helped strengthen the company’s net interest spread and profitability.
Loan yields increased slightly to 5.90%, compared with 5.83% in the third quarter of 2024 and 5.80% in the prior quarter, reflecting the company’s focus on higher-yielding assets and disciplined loan pricing.
At the same time, FVCBankcorp continued to manage its cost of funds, which declined to 2.78% from 3.09% in the third quarter of 2024. The cost of deposits, including noninterest-bearing accounts, stood at 2.73%, down 31 basis points year-over-year. This improvement underscores the bank’s ability to expand its core deposit base while maintaining favorable funding costs.
Strong Deposit and Balance Sheet Growth
The company’s balance sheet continues to strengthen, underpinned by robust core deposit growth and a well-capitalized structure. Total deposits reached $1.98 billion at September 30, 2025, representing a 4% increase from June 30, 2025, and a 6% rise since December 31, 2024.
Core deposits, which exclude wholesale deposits, climbed $122.2 million year-to-date, or about 10% annualized, reaching $1.74 billion. Noninterest-bearing deposits also increased 5% during the quarter, while time deposits grew $25.7 million year-to-date to $273.8 million.
Meanwhile, wholesale funding decreased 5% to $284.9 million as the company strategically reduced reliance on higher-cost funding sources. This funding mix optimization reflects FVCBankcorp’s ongoing emphasis on relationship-driven banking and liquidity management.
Total assets rose to $2.32 billion, up 5% since year-end 2024. The company’s investment securities portfolio totaled $157.2 million, a slight increase from $156.7 million at year-end, largely due to a reduction in unrealized losses and selective new purchases.
Loan Portfolio Highlights
Loans receivable remained stable at $1.86 billion, reflecting a measured approach to growth. During the quarter, FVCBankcorp approved more than $65 million in new loan originations that were scheduled to close in the fourth quarter. Of that total, approximately $50 million—with a weighted average rate of 9.74%—had already closed in October.
Third-quarter loan originations totaled $87.3 million at an average rate of 7.97%, while $84 million in loans were repaid, primarily in the commercial real estate and construction sectors. This balanced activity aligns with management’s strategy to allow lower-yielding loans to mature naturally while redeploying capital into higher-return opportunities.
The company’s warehouse lending facility ended the quarter at $50.3 million, with a yield of 6.31%, down slightly from the prior period.
Maintaining Excellent Credit Quality
FVCBankcorp continues to exhibit strong credit quality metrics, underscoring its conservative risk management.
Loans past due 30 days or more declined 68% during the quarter to $880,000, down from $2.8 million in the previous quarter. Nonperforming loans also decreased to $11.1 million, representing just 0.48% of total assets, compared with $12.9 million (0.58%) at year-end 2024.
The allowance for credit losses (ACL) remained steady at $17.9 million, or 0.97% of total loans, consistent with prior levels. Net charge-offs were modest at $498,000, or 0.11% annualized, primarily attributable to one isolated small business loan.
The company’s disciplined approach to underwriting and ongoing monitoring supports management’s confidence that reserves remain adequate to cover potential credit risks. FVCBankcorp continues to maintain a diversified commercial real estate portfolio, with office, retail, and multifamily loans representing well-distributed exposures across Virginia, Maryland, and Washington, D.C.
Capital Strength and Shareholder Returns
FVCBankcorp remains well-capitalized, with a total risk-based capital ratio of 15.77%, a common equity tier 1 ratio of 14.78%, and a tier 1 leverage ratio of 12.13% as of September 30, 2025.
Shareholders’ equity rose to $249.8 million, up 6% since December 2024, primarily reflecting retained earnings. Tangible book value per share increased to $13.41, compared with $12.52 at year-end. Excluding accumulated other comprehensive losses, tangible book value per share reached $14.57, demonstrating ongoing capital appreciation for investors.
On October 16, 2025, the Board of Directors declared a quarterly cash dividend of $0.06 per common share, payable November 17, 2025, to shareholders of record as of October 27. The aggregate dividend payout totals approximately $1.1 million, reflecting the company’s commitment to consistent shareholder returns.
Strategic Commentary from Leadership
David W. Pijor, Chairman and Chief Executive Officer of FVCBankcorp, credited the quarter’s results to disciplined execution and customer-driven growth.
We continue our trajectory of improved earnings metrics as we report another quarter with annualized return on average assets of 1.00%,” said Pijor. “Our consistent performance, core deposit growth of over $122 million, and focus on relationship-based banking position us well for sustained profitability. We remain vigilant about economic headwinds and will continue to prioritize prudent, risk-adjusted loan growth while supporting our customers and communities.”
Patricia A. Ferrick, President of FVCBankcorp, highlighted the role of technology and efficiency improvements in maintaining profitability.
Our emphasis on technology solutions has improved efficiency ratios and supported noninterest income,” Ferrick noted. “We expect strong loan originations in the fourth quarter and continued positive margin impact from repricing loans funded by growing core deposits.
Focus on Sustainable Growth
Looking ahead, FVCBankcorp remains focused on leveraging its strong deposit base and capital position to drive strategic loan growth while maintaining credit discipline. The company anticipates continued margin expansion in the coming quarters as more commercial loans reprice at higher rates.
With over $300 million in fixed-rate loans and $140 million in variable-rate loans scheduled to reprice within the next three years, management expects steady earnings improvement through 2026.
Backed by a resilient balance sheet, solid asset quality, and strong customer relationships, FVCBankcorp enters the final quarter of 2025 in a position of strength—poised to continue delivering long-term value to shareholders and sustainable support for its communities.
