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FVCBankcorp, Inc. Announces First Quarter 2023 Earnings; Balance Sheet Repositioning; Deposit and Liquidity Growth
FAIRFAX, Va.--(BUSINESS WIRE)-- FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported its financial results for the first quarter of 2023. First
About this update from Fvcbankcorp, Inc.
[{"type":"text","content":" FAIRFAX, Va.--(BUSINESS WIRE)--\nFVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported its financial results for the first quarter of 2023.\n\n\nFirst Quarter Selected Highlights\n\n\n\nFortified and Well Capitalized Balance Sheet. FVCBank (the “Bank”) has a resilient balance sheet with Tangible Common Equity (\"TCE\") to Total Assets (\"TA\") ratio of 8.92% at March 31, 2023. The Company’s investment securities are classified as available-for-sale, and therefore, the decrease in market value of these securities is fully reflected in the TCE/TA ratio. All of the Company’s regulatory capital components and ratios are well in excess of thresholds required to be considered \"well capitalized\" with total risk based capital to risk-weighted assets of 13.48% at March 31, 2023.\n\n\n\nQuarter-Over-Quarter and Year-Over-Year Deposit Growth. Total deposits increased $80.2 million, or 4%, to $1.91 billion at March 31, 2023 from $1.83 billion at December 31, 2022 and increased $91.0 million, or 5%, from March 31, 2022. Deposits, excluding wholesale deposits, increased $14.9 million during the quarter ended March 31, 2023.\n\n\n\nLow Uninsured Deposit Metrics Compared to Peers. As of March 31, 2023, estimated uninsured deposits improved to 32.5% of total deposits from 39.7% at December 31, 2022. The Company has sufficient capital and liquidity resources to satisfy these obligations.\n\n\n\nDiverse Sources of Available Liquidity. At March 31, 2023, the Company’s liquidity position, which includes cash totaling $144.9 million, unencumbered investment securities totaling $95.6 million, and available unsecured and secured borrowing capacity totaling $524.9 million, was significantly in excess of its estimated uninsured deposits totaling $621.8 million, or 123% of uninsured deposits. The Company has the ability to access the Federal Reserve’s new Bank Term Funding Program (“BTFP”), which would increase borrowing capacity by $15.6 million. The Company did not access the BTFP facility during the first quarter of 2023.\n\n\n\nAdoption of Current Expected Credit Losses Model. The Company adopted Accounting Standards Update 2016-13 (“CECL”) on January 1, 2023. As a result, the Company’s allowance for credit losses (“ACL”) to loans, net of fees, increased from 0.87% at December 31, 2022 to 1.07% on January 1, 2023, the date of adoption. At...