Fvcbankcorp, Inc. · NASDAQ:FVCB
Fvcbankcorp — Debt Investor Presentation (October 2020)
28 slides from Fvcbankcorp's debt investor presentation, Oct 14, 2020
Slide 1: FVCBankcorp, Inc. Fall 2020
FVCBankcorp, Inc. NASDAQ: FVCB Fall 2020
Slide 2: Forward-Looking Statements; Non-GAAP Information
Forward-Looking Statements; Non-GAAP Information In a ddition to his torica l informa tion, this pres entation ma y contain forwa rd-looking s ta tements within the mea ning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as a mended, a nd Section
Slide 3: Terms of the Proposed Subordinated Debt Offering
Terms of the Proposed Subordinated Debt Offering FVCBankcorp, Inc. Subordinated Notes due 2030 $15 million Unrated Regulation D Private Fixed-to-Floating Rate (Fixed during First Five Years) 10 Years 5 Years General corporate purposes, including supporting capital ratios at the bank and potential re
Slide 4: Company Snapshot
Company Snapshot Company Background Presenters • FVCBankcorp, Inc. (NASDAQ:FVCB) is the holding FVCBank, which was founded in 2007 Headquartere d in Fairfax, VA wi th a focus on Washington D.C. and Baltimore MSAs company for • • Founder, Chairman and CEO Prior: Chairman and General Counsel at James
Slide 5: FVCB Business Strategy
FVCB Business Strategy FVCB aims to capitalize on market opportunities while maintaining disciplined and comprehensive credit underwriting. FVCB’s focus on providing high-touch, responsive, relationship-based client service allows it to compete effectively and exceed the needs of customers Opportuni
Slide 6: Recent Initiatives and Developments
Recent Initiatives and Developments Key Initiatives for FVCB Preliminary Review Third Quarter Results • Continue to move 200+ new customers (via PPP) to full relationships with FVCB Year-over-year loan growth, excluding PPP, expected to be in the mid-single digits • Continued strong deposit growth c
Slide 7: An Attractive Investment Opportunity in the D.C. and Baltimore MSAs
An Attractive Investment Opportunity in the D.C. and Baltimore MSAs Well positioned in one of the most attractive banking markets in the U.S. • D.C. is the sixth largest MSA with favorable demographics, economic trends and business investments • Recent consolidation in local markets has created grow
Slide 8: Well Positioned In One of the Most Attractive Markets in the U.S.
Well Positioned In One of the Most Attractive Markets in the U.S. Top 10 MSAs By Population Vibrant Economy 5 Yr. • Washington D.C. and Baltimore MSAs contain 30 and seven Fortune 1000 companies, respectively Over 3.3 million private sector employees and nearly one million public sector employees in
Slide 9: Track Record of Exceptional Growth and Strong Profitability
Track Record of Exceptional Growth and Strong Profitability Relationship Driven Model Continues to Create Balance Sheet Leverage Total Assets Total Loans, Net of Fees Total Deposits Colombo contribution Organic Growth $1,519 $1,612 $1,309 $1,271 $1,286 $1,537 $1,024 $1,153 $1,053 2015 2016 2017 2018
Slide 10: Stable Margin and Improving Efficiency Produce An Attractive Earnings Stream
Track Record of Exceptional Growth and Strong Profitability Stable Margin and Improving Efficiency Produce An Attractive Earnings Stream Pre-Tax Pre-Provision Income ($M) Efficiency Ratio (%) 61.3% 18% CAGR $21.9 2015 2016 2017 2018 ¹ 2019 YTD Q220 ² 2015 2016 2017 2018¹ 2019¹ YTD Q220¹ Net Interest
Slide 11: Disciplined, Low-Risk Commercial Balance Sheet
Disciplined, Low-Risk Commercial Well Diversified Commercial Portfolio Balance Sheet C&I Portfolio Balance % of Portfolio Yield Commercial and Industrial Paycheck Protection Program Owner Occupied CRE $96,532 $169,425 $187,289 6.5% 11.5% 12.7% 5.36% 2.63% 4.51% ($000s) CRE Type % of Total Loans LTV
Slide 12: Pandemic Risk: PPP Loans
Pandemic Risk: PPP Loans SBA Paycheck Protection Program PPP Loans by Industry1 Food Service 3% Manufacturing 6% Professional Services 33% Admin & Support 5% Information 5% Real Estate 6% Health Care 6% Up to $350,000 637 $53,774 $84 $350,000 to $2MM 107 $83,202 $778 Construction 12% Over $2MM 12 $3
Slide 13: Strong Credit Quality
Strong Credit Quality Proven History of Strong Credit Metrics Nonperforming Assets Over Time¹ Well-Reserved Loan Portfolio ($000s) ($s in Thousands) Nonperforming Loans (NPLs) OREO ALLL Balance at 12/31/2019 Net Charge-Offs Provision for Loan Losses $10,231 (153) $2,816 Remaining Fair Value Discount
Slide 14: Payment Deferrals during COVID-19 Pandemic
Strong Credit Quality Payment Deferrals during COVID-19 Pandemic FVCbank implemented loan payment deferral programs as a result of pandemic stay-at-home orders to defer loan principal and interest payments primarily for 90 days In Deferral • • Initially, loan payment deferrals totaled $360.2 million
Slide 15: Strong Core Deposit Base
Strong Core Deposit Base Deposit Portfolio Composition • Cost of deposits declined from 1.30% in Q1 2020 to 0.87% in Q2 2020 As of 12/31/2015 As of 6/30/2020 • Further decrease in deposit costs expected through the remainder of 2020 as FVCB reprices maturing time deposits and new DDA accounts at sig
Slide 16: Experienced Leadership Team: Management
Experienced Leadership Team Management Team With Strong Ties to The Market… FVCB’s executive management team consists of seven officers with over 185 years of combined experience in the Washington, D.C. metropolitan area • David Pijor was the founding Chairman of the Board of James Monroe Bancorp, w
Slide 17: Experienced Leadership Team: Board
Experienced Leadership Team …Governed and Supported By An Exceptional Board with a Meaningful Investment in FVCB • Serves as Vice Chairman of the Board since 2015 Served as President and COO of FVCB from 2008 to 2013 Served as CEO and President of Cardinal Bank from 1997 to 1999 • Serves as Chairman
Slide 18: Sources of Liquidity and Current Debt Profile
Sources of Liquidity and Current Debt Profile FVCBankcorp, Inc. (NASDAQ:FVCB) FVCbank • • The following are sources of liquidity at the holding company: Outstanding funding sources ‒ $25.0 million of advances from the FHLB ‒ ‒ $1.1 million of cash as of June 30, 2020 $35.8 million of dividend capaci
Slide 19: Bank Capital Ratios
Bank Capital Ratios Tier 1 Leverage Ratio (%) Tier 1 Ratio (%) Total Risk-Based Capital Ratio (%) 14.0% 13.7% 13.4% 12.4% 12.2% 11.9% 11.8% 10.8% 2015Y 2016Y 2017Y 2018Y 2019Y 2020Q2 19 Source: S&P Global Market Intelligence, Company documents In 2020, FVCbank adopted the Community Bank Leverage Rat
Slide 20: Current and Pro Forma Capital Position
Pro Forma As of 6/30/2020 Current and Pro Forma Capital Position 14.76% 13.81% TCE / TA Tier 1 Leverage CET 1 Ratio Tier 1 Ratio Total RBC Ratio 14.31% 13.65% 13.44% 13.44% 12.78% 12.78% 11.57% 11.48% 10.98% 11.05% TCE / TA Tier 1 Leverage CET 1 Ratio Tier 1 Ratio Total RBC Ratio Note: All offering
Slide 21: Pro Forma Interest Coverage and Double Leverage
Pro Forma Interest Coverage and Double Leverage Note: Al l offeri ng a s s umptions a re for i l lustrati ve purpos es onl y; a ss umes a $15M s ubordinated debt i s s uance, $438,000 of off eri ng-rel ated expens es , i ncl usive of the pl a cement a gent's fee, a coupon of 5.00%, a nd the down -s
Slide 22: Appendix: Additional Materials
Appendix: Additional Materials
Slide 23: FVCB Franchise History
FVCB Franchise History Since inception, FVCbank has successfully executed a strategic plan focused on organic growth and opportunistic acquisitions without compromising asset quality or financial discipline February 2012 August 2017 Fol l ow-On Offering #2 $6.7mm @ $13.00/$13.50 per s hare ($6.66/$6
Slide 24: Overview of the Securities Portfolio
Overview of the Securities Portfolio • Approximately $90.6 million of cash and equivalents as of June 30, 2020 Approximately $122.1 million in securities, primarily concentrated in government securities Treasury / Agency 3% • Ag ency CMOs 7% Ag ency CMBS 1 5% • • • Weighted average yield of 2.55% Av
Slide 25: Loan: Five-Year History
Loan: Five-Year History For the Year Ended December 31, For the Period Ended 25 Note: Total RBC for the period ended June 30, 2020 estimated as Tier 1 Capital + ALLL ($ in thousands) 2015 2016 2017 2018 2019 6/30/2020 Less: PPP 6/30/2020, Less PPP C&I Portfolio Commerci a l a nd Indus tri a l $ 86,6
Slide 26: Historical Income Statement
Historical Income Statement Interest Income Interest Expense $26,557 3,664 $32,587 5,387 $40,302 8,195 $51,924 12,110 $66,734 18,671 $33,212 8,306 Provision for Loan Losses $1,073 $1,471 $1,200 $1,920 $1,720 $2,816 Service Charges on Deposits Gain on Foreclosure of OREO Other Noninterest Income 566
Slide 27: Historical Balance Sheet
Historical Balance Sheet Assets Cash and Cash Equivalents Interest-bearing Deposits at Other Financial Institutions Securities Net Loans Other Assets $5,257 $5,174 $7,428 $9,435 $14,916 $25,613 23,443 3,510 15,139 34,060 18,226 64,989 67,794 617,320 22,993 113,988 761,649 24,984 117,712 880,952 31,9
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP): GAAP Net Income Reported Above Add: Merger and Acquisition Expense Subtract: Gain on Sales of Securities Available-For-Sale Add: Impairment Loss (Branch Closure) Subtract: Provision for Income Taxes Associa
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