Business Wire | Jul 29, 2021 04:31PM EDT

FVCBankcorp, Inc. Announces Second Quarter 2021 Earnings and Record Quarterly Loan Growth

Jul. 29, 2021

FAIRFAX, Va.--(BUSINESS WIRE)--Jul. 29, 2021--FVCBankcorp, Inc. (NASDAQ: FVCB) (the "Company") today reported second quarter 2021 net income of $5.2 million, or $0.36 diluted earnings per share, compared to $2.9 million, or $0.21 diluted earnings per share, for the quarterly period ended June 30, 2020, an increase of 79%. Net revenues, which include net interest income plus noninterest income, for the three months ended June 30, 2021 were $14.9 million, an increase of $1.5 million, from $13.4 million for the year ago quarter ended June 30, 2020.

For the six months ended June 30, 2021, the Company reported net income of $10.7 million, or $0.74 diluted earnings per share, compared to $6.6 million or $0.46 diluted earnings per share, for the same period of 2020, a year-over-year increase of $4.1 million, or 62%. Net income for the six months ended June 30, 2020 included elevated loan loss provisioning of $2.8 million and $676 thousand in one-time branch closure costs. Net revenues for the six months ended June 30, 2021 were $29.7 million, an increase of $3.4 million, from $26.3 million for the six months ended June 30, 2020.

For the three months ended June 30, 2021 and 2020, pre-tax pre-provision income (which excludes branch closure costs recorded during 2020) was $6.6 million and $6.1 million, respectively, an increase of $583 thousand or 10%. On a linked quarter basis, pre-tax pre-provision income was $7.0 million for the three months ended March 31, 2021. The decrease on a linked quarter basis was a result of an increase in noninterest expense during the second quarter of 2021, which is more fully discussed below. Pre-tax pre-provision annualized return on average assets for the three months ended June 30, 2021 and 2020 was 1.36% and 1.41%, respectively. For the six months ended June 30, 2021 and 2020, pre-tax pre-provision income (which excludes branch closure costs recorded during 2020) was $13.6 million and $11.8 million, respectively, an increase of $1.8 million, or 16%. Pre-tax pre-provision annualized return on average assets for the six months ended June 30, 2021 and 2020 was 1.43% and 1.44%, respectively. The Company believes the reporting of non-generally accepted accounting principles ("non-GAAP") pre-tax pre-provision earnings to exclude branch closing impairment charges taken during 2020 are more reflective of the Company's operating performance. A reconciliation of pre-tax pre-provision income can be found in the tables below.

Annualized return on average assets was 1.06% and annualized return on average equity was 10.41% for the second quarter of 2021. For the comparable quarterly June 30, 2020 period, annualized return on average assets was 0.67% and annualized return on average equity was 6.41%. For the year-to-date June 30, 2021 period, annualized return on average assets was 1.13% and annualized return on average equity was 10.96% compared to annualized return on average assets of 0.81% and annualized return on average equity of 7.35% for the six months ended June 30, 2020.

On July 14, 2021, the Company announced the signing of a definitive merger agreement with Blue Ridge Bankshares, Inc. ("Blue Ridge" NYSE: BRBS) (the "Merger"), pursuant to which the companies will combine in an all-stock merger of equals, subject to customary closing conditions including shareholder and regulatory approvals. In connection with the Merger, FVCbank, the Company's wholly-owned commercial banking subsidiary, will be merged with and into Blue Ridge Bank, National Association ("Blue Ridge Bank"), the wholly-owned commercial banking subsidiary of Blue Ridge, with Blue Ridge Bank as the surviving bank.

Second Quarter Selected Highlights

* Record Quarterly Loan Growth. Loans receivable, net of deferred fees and excluding loans made under the U.S. Small Business Administration's Paycheck Protection Program ("PPP"), totaled $1.37 billion at June 30, 2021, compared to $1.28 billion at March 31, 2021, an increase of $91.4 million, or 28% annualized. During the second quarter of 2021, the Company began originating loans under a warehouse lending facility, which contributed $58.0 million to quarterly loan growth. * Improved on Credit Quality Metrics. During the second quarter of 2021, past due loans 30 days or more decreased to $2.2 million from $5.5 million at March 31, 2021. Nonperforming loans and loans past due 90 days or more and still accruing were 0.21% of total assets at June 30, 2021, compared to 0.31% at December 31, 2020, and decreasing $954 thousand from March 31, 2021. * Strong Core Deposit Growth. Core deposits, which exclude wholesale deposits, increased $85.6 million, to $1.65 billion at June 30, 2021, or 22% annualized, from March 31, 2021. Noninterest-bearing deposits were $500.7 million at June 30, 2021, representing 30% of total deposits at June 30, 2021. * Increased Net Interest Income. Net interest income increased $1.5 million to $14.2 million for the second quarter of 2021, compared to $12.7 million for the same 2020 period. Net interest margin was 3.07% for the quarter ended June 30, 2021, compared to 3.16% for the year ago quarter of 2020 and 3.22% for the first quarter of 2021, as increased excess liquidity continues to impact net interest margin for the second quarter of 2021.

"Record loan growth during the second quarter is not only attributable to the improvement in our local economy, but also a result of the efforts of our experienced business development team. While a portion of this loan growth was a result of our new warehouse lending facility, we also approved loan originations of close to $100 million this quarter, of which, $75 million funded. Our commitment to the markets we serve continues to drive over 10% deposit growth during 2021. With our robust pipeline of loan originations, we anticipate sustained double-digit loan growth for the remainder of 2021. We are also excited about our planned transformational merger with Blue Ridge Bankshares and look forward to realizing the promise of creating the fourth largest Virginia-based community bank," stated David W. Pijor, Chairman and CEO.

Balance Sheet

Total assets increased to $1.98 billion at June 30, 2021 compared to $1.82 billion at December 31, 2020, an increase of $153.8 million, or 8%. Loans receivable, net of deferred fees and excluding PPP loans, totaled $1.37 billion at June 30, 2021 and $1.31 billion at December 31, 2020, an increase of $61.7 million, or 5%. Loans receivable, net of deferred fees, and excluding PPP loans, increased $91.4 million during the three months ended June 30, 2021. During the second quarter of 2021, the Company began originating loans under a warehouse lending facility, which contributed $58.0 million to quarterly loan growth. During the second quarter of 2021, loan originations, excluding PPP loans and warehouse lending originations, totaled approximately $95.3 million, of which $74.9 million funded during the quarter.

PPP loans, net of fees, totaled $99.5 million at June 30, 2021, a decrease from $163.5 million at March 31, 2021 and $153.0 million at December 31, 2020. Loans forgiven during the second quarter of 2021 totaled $70.9 million, and totaled $120.1 million year-to-date 2021. Remaining PPP loans originated during 2020 totaled $37.2 million at June 30, 2021. Net deferred fees associated with PPP loans totaled $2.4 million at June 30, 2021.

Investment securities increased $74.3 million to $200.7 million at June 30, 2021, compared to $126.4 million at December 31, 2020. During the three months ended June 30, 2021, the Company purchased $75.7 million in mortgage-backed securities to invest excess liquidity and improve net interest margin.

Total deposits increased to $1.68 billion at June 30, 2021 compared to $1.53 billion at December 31, 2020, an increase of $147.7 million, or 10%. Core deposits, which represent total deposits less wholesale deposits, increased $162.7 million, or 11%, to $1.65 billion at June 30, 2021 compared to $1.48 billion at December 31, 2020. Wholesale deposits totaled $35.0 million, or 2% of total deposits at June 30, 2021, a decrease of $15.0 million from December 31, 2020. Noninterest-bearing deposits increased $101.6 million to $500.7 million at June 30, 2021 from $399.1 million at December 31, 2020, and represented 30% of total deposits at June 30, 2021.

The Company's bank subsidiary, FVCbank, remains well-capitalized at June 30, 2021 with a community bank leverage ratio of 11.48%.

Income Statement

Net income for the three months ended June 30, 2021 was $5.2 million, an increase of $2.3 million, or 79%, compared to $2.9 million for the same period of 2020. For the six months ended June 30, 2021, net income was $10.7 million, compared to $6.6 million for the same period of 2020. Both the three and six months' periods of 2020 were impacted by increased provision for loan losses and impairment on branch closures totaling $676 thousand.

Net interest income totaled $14.2 million, an increase of $1.5 million, for the quarter ended June 30, 2021, compared to the year ago quarter, and increased by $143 thousand, compared to the first quarter of 2021. Interest expense on deposits decreased $1.3 million for the three months ended June 30, 2021 compared to the same period of 2020, and decreased $147 thousand compared to the three months ended March 31, 2021. All decreases were a result of continued targeted rate reductions and the repricing of the Company's time deposits to lower interest rates upon renewal. Interest income includes loan mark accretion on acquired loans totaling $146 thousand, $132 thousand, and $126 thousand for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, respectively. Lastly, net interest income for the three months ended June 30, 2021 benefited from PPP loan income, which contributed $1.5 million to interest income, of which $811 thousand was related to recognition of net deferred fees on forgiven loans. This compares to interest income from PPP loans of $1.8 million for the first quarter of 2021, which included recognition of net deferred fees of $927 thousand on forgiven loans. Remaining net deferred fees related to PPP loan originations totaled $2.4 million at June 30, 2021 and are being recognized in interest income over the remaining lives of the PPP loans, or sooner upon PPP loan forgiveness or repayment. For the six months ended June 30, 2021 and 2020, net interest income was $28.2 million and $24.9 million, respectively, an increase of $3.3 million, year-over-year.

The Company's net interest margin decreased 9 basis points to 3.07% for the quarter ended June 30, 2021 compared to 3.16% for the quarter ended June 30, 2020. On a linked quarter basis, net interest margin decreased 15 basis points from 3.22% for the three months ended March 31, 2021. Excess liquidity continues to compress net interest margin, decreasing margin by 27 basis points during the second quarter of 2021. Despite the growth in both the Company's loan and investment securities portfolios to deploy excess liquidity, the Company's continued strong deposit growth offset this asset growth during the second quarter of 2021. The average yield on total loans for the second quarter of 2021 was 4.36%, compared to 4.38% for the linked quarter ended March 31, 2021, and 4.36% for the year ago quarter. Net deferred fees recognized from PPP loan forgiveness has contributed to the average yield of the loan portfolio, as the yield on PPP loans increased to 4.26% for the second quarter of 2021, compared to 2.63% for the year ago quarter ended June 30, 2020.

Cost of interest-bearing deposits for the second quarter of 2021 was 0.66%, compared to 1.20% for the second quarter of 2020, a decrease of 54 basis points, or 45%, primarily as a result of the Company having aggressively decreased its deposit rates during 2020 to offset the repricing of its variable rate loan portfolio. The cost of deposits, which includes noninterest-bearing deposits, decreased 6 basis points to 0.45% for the second quarter of 2021 as compared to 0.51% for the first quarter of 2021, and decreased 41 basis points from 0.86% for the year ago quarter of 2020.

Noninterest income totaled $685 thousand and $687 thousand for the quarters ended June 30, 2021 and 2020, respectively. Fee income from loans was $27 thousand, a decrease of $19 thousand, for the quarter ended June 30, 2021 compared to the second quarter of 2020. Service charges on deposit accounts and other fee income totaled $408 thousand for the second quarter of 2021, an increase of 14%, or $49 thousand, from the year ago quarter, primarily resulting from an increase in analysis fees. Income from bank-owned life insurance decreased $32 thousand to $250 thousand for the three months ended June 30, 2021 compared to $282 thousand for the same period of 2020. Noninterest income for the year-to-date period ended June 30, 2021 was $1.5 million, compared to $1.4 million for the 2020 year-to-date period, an increase of $95 thousand, or 7%, which was primarily driven by an increase in service charges on deposit accounts and other fee income, and offset by fair value losses on loans held for sale of $451 thousand recorded during the first quarter of 2020.

Noninterest expense totaled $8.2 million for the quarter ended June 30, 2021, compared to $8.0 million for the same three-month period of 2020, an increase of $230 thousand, or 3%. On a linked quarter basis, noninterest expense was $7.9 million for the quarter ended March 31, 2021, an increase of $346 thousand, or 4%. The increase in noninterest expense compared to the year ago quarter was primarily related to an increase in salaries and benefits expense of $476 thousand, which is primarily related to additions to business development staff and associated accruals for incentive compensation during the second quarter of 2021. In addition, professional fees increased $296 thousand to $503 thousand for the three months ended June 30, 2021 compared to $207 thousand for the year ago quarter as the Company recognized expenses related to its announced merger with Blue Ridge. These increases in noninterest expense during the quarter ended June 30, 2021 as compared to the same period of 2020 were partially offset by the branch impairment charges totaling $676 thousand that were recorded during the second quarter of 2020. Loan legal expenses of $193 thousand were recognized during the second quarter of 2021, which contributed to the increase in noninterest expense on a linked quarter basis. For the six months ended June 30, 2021 and 2020, noninterest expense, was $16.1 million and $15.2 million, respectively, an increase of $903 thousand, or 6%, primarily as a result of the aforementioned additions to business development staffing and associated increases in incentive accruals and the increase in professional fees associated with merger and acquisition costs.

The efficiency ratio for the quarter ended June 30, 2021 was 55.3%, an increase from 54.7% for the quarter ended June 30, 2020 (excluding branch closure costs), primarily as a result of increased professional fees recorded for the proposed merger with Blue Ridge. The efficiency ratios for the six months ended June 30, 2021 and 2020, excluding branch closure costs recorded during 2020 were 54.2% and 55.3%, respectively.

The Company recorded a provision for income taxes of $1.5 million for the three months ended June 30, 2021, compared to $754 thousand for the same period of 2020. The effective tax rates for the three months ended June 30, 2021 and 2020 were 22.2% and 20.7%, respectively. The effective tax rates for each of the three months ended June 30, 2021 and 2020 are less than the Company's combined federal and state statutory rate of 22.5% primarily because of discrete tax benefits recorded as a result of exercises of nonqualified stock options during 2021 and 2020. For the six months ended June 30, 2021 and 2020, provision for income taxes was $2.9 million and $1.7 million, respectively.

Asset Quality

The Company recorded no provision for loan losses for the three months ended June 30, 2021, compared to $1.8 million for the year ago quarter. The Company is not required to implement the provisions of the current expected credit losses accounting standard until January 1, 2023, and is continuing to account for the allowance for loans losses under the incurred loss model. The decrease in the provision for loan losses for the three months ended June 30, 2021 is primarily related to the improvement in certain credit quality metrics during the second quarter of 2021, specifically, a reduction in the Company's past due loans and specific reserves for certain watchlist loans which saw improvements in credit quality during the quarter. No provision for loan losses was recorded for the six months ended June 30, 2021 compared to $2.8 million for the six months ended June 30, 2020.

The allowance for loan losses to total loans, excluding PPP loans, was 1.04% at June 30, 2021, compared to 1.14% at December 31, 2020. The effective reserve coverage, which includes both the allowance for loan losses and the remaining unaccreted fair value discount on acquired loans, to total loans, excluding PPP loans, was 1.22% at June 30, 2021 compared to 1.27% at December 31, 2020. Net charge-offs of $62 thousand recorded during the second quarter of 2021 were related to purchased unsecured consumer loans.

Nonperforming loans and loans 90 days or more past due at June 30, 2021 totaled $4.1 million, or 0.21% of total assets. This compares to $5.6 million in nonperforming loans and loans 90 days or more past due at December 31, 2020, or 0.31% of total assets. All of the Company's nonperforming loans are secured and have specific reserves totaling $1.1 million, representing the expected losses associated with those loans. The Company has one troubled debt restructuring at June 30, 2021 totaling $95 thousand which is a consumer residential loan. Nonperforming assets (including other real estate owned) to total assets was 0.40% at June 30, 2021 compared to 0.52% for December 31, 2020.

About FVCBankcorp, Inc.

FVCBankcorp, Inc. is the holding company for FVCbank, a wholly-owned subsidiary that commenced operations in November 2007. FVCbank is a $1.98 billion asset-sized Virginia-chartered community bank serving the banking needs of commercial businesses, nonprofit organizations, professional service entities, their owners and employees located in the greater Baltimore and Washington D.C., metropolitan areas. FVCbank is based in Fairfax, Virginia, and has 9 full-service offices in Arlington, Fairfax, Manassas, Reston and Springfield, Virginia, Washington D.C., and Baltimore, Bethesda, and Rockville, Maryland.

For more information on the Company's selected financial information, please visit the Investor Relations page of FVCBankcorp, Inc.'s website, www.fvcbank.com.

Caution about Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited, statements of goals, intentions, and expectations as to future trends, plans, events or results of the Company's operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as "may," "will," "anticipates," "believes," "expects," "plans," "estimates," "potential," "continue," "should," and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company's market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. These forward-looking statements are based on current beliefs that involve significant risks, uncertainties, and assumptions. Factors that could cause the Company's actual results to differ materially from those indicated in these forward-looking statements, include, but are not limited to, the ability to close the Merger on the expected terms and schedule; difficulties, delays and unforeseen costs in completing the Merger and in integrating the company's and Blue Ridge's businesses; the ability to realize cost savings and other benefits of the Merger; business disruption during the pendency of or following the Merger, and the risk factors and other cautionary language included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and in other periodic and current reports filed with the Securities and Exchange Commission. Because of these uncertainties and the assumptions on which the forward-looking statements are based, actual operations and results in the future may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements.The Company's past results are not necessarily indicative of future performance.

FVCBankcorp, Inc.Selected Financial Data(Dollars in thousands, except share data and per share data)(Unaudited) At or For the Three Months At or For the Six Months At or For the Three Months Ended June 30, Ended June 30, Ended 6/30/2021 6/30/2020 6/30/2021 6/30/2020 3/31/2021 12/31/2020Selected BalancesTotal assets $ 1,975,251 $ 1,781,149 $ 1,884,517 $ 1,821,481

Total investment 207,044 128,690 141,745 132,978 securitiesTotal loans, net of 1,474,278 1,478,120 1,446,912 1,466,083 deferred feesAllowance for loan (14,359 ) (12,894 ) (14,421 ) (14,958 )lossesTotal deposits 1,680,209 1,519,036 1,594,639 1,532,493

Subordinated debt 44,146 24,527 44,116 44,085

Other borrowings 25,000 25,000 25,000 25,000

Total stockholders' 200,687 180,652 194,929 189,500 equitySummary Results ofOperationsInterest income $ 16,776 $ 16,281 $ 33,554 $ 33,212 $ 16,778 $ 17,129

Interest expense 2,590 3,586 5,325 8,306 2,735 3,010

Net interest income 14,186 12,695 28,229 24,906 14,043 14,119

Provision for loan - - 1,750 - 2,816 - 500 lossesNet interest income 14,186 10,945 28,229 22,090 14,043 13,619 after provision forloan lossesNoninterest income- loan fees, 435 405 978 1,170 543 476 service charges andotherNoninterest income 250 282 498 565 248 264 - bank owned lifeinsuranceNoninterest income- gain on sales of - - - - - - 97 - - - - securitiesavailable-for-saleNoninterest income - - - - - - (451 ) - - - - - loss on loansheld for saleNoninterest expense 8,228 7,998 16,110 15,207 7,882 7,885

Income before taxes 6,643 3,634 13,595 8,264 6,952 6,474

Income tax expense 1,478 754 2,861 1,651 1,383 1,460

Net income 5,165 2,880 10,734 6,613 5,569 5,014

Per Share DataNet income, basic $ 0.38 $ 0.21 $ 0.79 $ 0.49 $ 0.41 $ 0.37

Net income, diluted $ 0.36 $ 0.21 $ 0.74 $ 0.46 $ 0.38 $ 0.36

Book value $ 14.70 $ 13.42 $ 14.29 $ 14.03

Tangible book value $ 14.10 $ 12.79 $ 13.69 $ 13.41 ^(1)Shares outstanding 13,647,600 13,459,317 13,638,934 13,510,760

Selected RatiosNet interest margin 3.07 % 3.16 % 3.15 % 3.26 % 3.22 % 3.28 %^(2)Return on average 1.06 % 0.67 % 1.13 % 0.81 % 1.19 % 1.11 %assets ^(2)Return on average 10.41 % 6.41 % 10.96 % 7.35 % 11.53 % 10.68 %equity ^(2)Efficiency ^(3) 55.33 % 59.77 % 54.23 % 57.85 % 53.13 % 53.07 %

Loans, net of 87.74 % 97.31 % 90.74 % 95.67 %deferred fees tototal depositsNoninterest-bearing 29.80 % 29.13 % 31.47 % 26.04 %deposits to totaldepositsReconciliation ofNet Income (GAAP)to OperatingEarnings(Non-GAAP) ^(4)Net income (from $ 5,165 $ 2,880 $ 10,734 $ 6,613 $ 5,569 $ 5,014 above)Add: Impairment on - - 676 - - 676 - - - - branch closuresLess: provision forincome taxes - - (142 ) - - (142 ) - - - - associated withnon-GAAPadjustmentsNet income, as $ 5,165 $ 3,414 $ 10,734 $ 7,147 $ 5,569 $ 5,014 adjustedNet income, $ 0.36 $ 0.25 $ 0.74 $ 0.50 $ 0.38 $ 0.36 diluted, on anoperating basisReturn on average 1.06 % 0.79 % 1.13 % 0.87 % 1.19 % 1.11 %assets (non-GAAPoperating earnings)Return on average 10.41 % 7.60 % 10.96 % 7.94 % 11.53 % 10.68 %equity (non-GAAPoperating earnings)Efficiency ratio 55.33 % 54.72 % 54.23 % 55.28 % 53.13 % 53.07 %(non-GAAP operatingearnings) ^(3)Capital Ratios -BankTangible common 9.79 % 9.71 % 9.95 % 9.99 %equity (to tangibleassets)Tier 1 leverage (to 11.48 % 11.05 % 11.65 % 11.65 %average assets)Asset QualityNonperforming loans $ 4,069 $ 8,493 $ 5,023 $ 5,621 and loans 90+ pastduePerforming troubled 95 99 96 97 debt restructurings(TDRs)Other real estate 3,866 3,866 3,866 3,866 ownedNonperforming loansand loans 90+ past 0.21 % 0.48 % 0.27 % 0.31 %due to total assets(excl. TDRs)Nonperforming 0.40 % 0.69 % 0.47 % 0.52 %assets to totalassetsNonperformingassets (including 0.41 % 0.70 % 0.48 % 0.53 %TDRs) to totalassetsAllowance for loan 0.97 % 0.87 % 1.00 % 1.02 %losses to loansAllowance for loan 352.89 % 151.82 % 287.10 % 266.11 %losses tononperforming loansNet charge-offs $ 62 $ 82 $ 599 $ 153 $ 537 $ 98

Net charge-offs to 0.02 % 0.02 % 0.08 % 0.02 % 0.15 % 0.03 %average loans ^(2)Selected AverageBalancesTotal assets $ 1,947,983 $ 1,721,612 $ 1,907,455 $ 1,636,284 $ 1,866,477 $ 1,812,298

Total earning 1,852,126 1,615,125 1,810,389 1,536,659 1,768,189 1,710,345 assetsTotal loans, net of 1,444,543 1,415,383 1,450,394 1,347,021 1,456,310 1,485,121 deferred feesTotal deposits 1,654,016 1,459,834 1,614,518 1,370,263 1,574,581 1,527,313

Other DataNoninterest-bearing $ 500,655 $ 442,443 $ 501,812 $ 399,062 depositsInterest-bearing 901,124 655,959 822,888 820,378 checking, savingsand money marketTime deposits 243,430 320,628 234,939 263,053

Wholesale deposits 35,000 100,006 35,000 50,000

^(1) Non-GAAP At June 30,Reconciliation(Dollars in 2021 2020 thousands, exceptper share data) Total stockholders' $ 200,687 $ 180,652 equityLess: goodwill and (8,199 ) (8,525 )intangibles, netTangible Common $ 192,488 $ 172,127 Equity Book value per $ 14.70 $ 13.42 common shareLess: intangible (0.60 ) (0.63 )book value percommon shareTangible book value $ 14.10 $ 12.79 per common share ^(2) Annualized.^(3) Efficiency ratio is calculated as noninterest expense divided by the sumof net interest income and noninterest income.^(4) Some of the financial measures discussed throughout the press release are"non-GAAP financial measures." In accordance with SEC rules, the Companyclassifies a financial measure as being a non-GAAP financial measure if thatfinancial measure excludes or includes amounts, or is subject to adjustmentsthat have the effect of excluding or including amounts, that are included orexcluded, as the case may be, in the most directly comparable measurecalculated and presented in accordance with GAAP in our consolidated statementsof income, balance sheets or statements of cash flows.FVCBankcorp, Inc.Summary Consolidated Statements of Condition(Dollars in thousands)(Unaudited)% Change% ChangeCurrentFrom6/30/20213/31/2021Quarter12/31/20206/30/2020Year AgoCash and due from banks$24,856

$16,593

49.8

%

$20,835

$25,613

-3.0

%

Interest-bearing deposits atother financial institutions190,553

203,285

-6.3

%

120,228

64,989

193.2

%

Investment securities200,672

135,368

48.2

%

126,415

122,082

64.4

%

Restricted stock, at cost6,372

6,377

-0.1

%

6,563

6,608

-3.6

%

Loans held for sale, at fair value- -

- -

0.0

%

- -

- -

0.0

%

Loans, net of fees:Commercial real estate829,683

782,005

6.1

%

788,218

779,036

6.5

%

Commercial and industrial140,611

109,737

28.1

%

119,200

105,957

32.7

%

Paycheck protection program99,455

163,470

-39.2

%

152,978

169,425

-41.3

%

Commercial construction207,790

218,507

-4.9

%

221,523

227,746

-8.8

%

Consumer real estate184,560

159,790

15.5

%

168,531

177,366

4.1

%

Consumer nonresidential12,179

13,403

-9.1

%

15,633

18,590

-34.5

%

Total loans, net of fees1,474,278

1,446,912

1.9

%

1,466,083

1,478,120

-0.3

%

Allowance for loan losses(14,359)

(14,421)

-0.4

%

(14,958)

(12,894)

11.4

%

Loans, net1,459,919

1,432,491

1.9

%

1,451,125

1,465,226

-0.4

%

Premises and equipment, net1,527

1,520

0.5

%

1,654

1,818

-16.0

%

Goodwill and intangibles, net8,199

8,277

-0.9

%

8,357

8,525

-3.8

%

Bank owned life insurance (BOLI)38,675

38,425

0.7

%

38,178

37,633

2.8

%

Other real estate owned3,866

3,866

0.0

%

3,866

3,866

0.0

%

Other assets40,612

38,315

6.0

%

44,260

44,789

-9.3

%

Total Assets$1,975,251

$1,884,517

4.8

%

$1,821,481

$1,781,149

10.9

%

Deposits:Noninterest-bearing$500,655

$501,812

-0.2

%

$399,062

$442,443

13.2

%

Interest-bearing checking610,823

534,436

14.3

%

537,834

387,683

57.6

%

Savings and money market290,301

288,452

0.6

%

282,544

268,276

8.2

%

Time deposits243,430

234,939

3.6

%

263,053

320,628

-24.1

%

Wholesale deposits35,000

35,000

0.0

%

50,000

100,006

-65.0

%

Total deposits1,680,209

1,594,639

5.4

%

1,532,493

1,519,036

10.6

%

Other borrowed funds25,000

25,000

0.0

%

25,000

25,000

0.0

%

Subordinated notes, net ofissuance costs44,146

44,116

0.1

%

44,085

24,527

80.0

%

Other liabilities25,209

25,833

-2.4

%

30,403

31,934

-21.1

%

Stockholders' equity200,687

194,929

3.0

%

189,500

180,652

11.1

%

Total Liabilities & Stockholders'Equity$1,975,251

$1,884,517

4.8

%

$1,821,481

$1,781,149

10.9

%

FVCBankcorp, Inc.Summary Consolidated Statements of Condition(Dollars in thousands)(Unaudited) % % Change Change Current From 6/30/2021 3/31/2021 Quarter 12/31/2020 6/30/2020 Year Ago Cash and due from $ 24,856 $ 16,593 49.8 % $ 20,835 $ 25,613 -3.0 %banksInterest-bearingdeposits atother financial 190,553 203,285 -6.3 % 120,228 64,989 193.2 %institutionsInvestment 200,672 135,368 48.2 % 126,415 122,082 64.4 %securitiesRestricted stock, 6,372 6,377 -0.1 % 6,563 6,608 -3.6 %at costLoans held for - - - - 0.0 % - - - - 0.0 %sale, at fair valueLoans, net of fees:Commercial real 829,683 782,005 6.1 % 788,218 779,036 6.5 %estateCommercial and 140,611 109,737 28.1 % 119,200 105,957 32.7 %industrialPaycheck protection 99,455 163,470 -39.2 % 152,978 169,425 -41.3 %programCommercial 207,790 218,507 -4.9 % 221,523 227,746 -8.8 %constructionConsumer real 184,560 159,790 15.5 % 168,531 177,366 4.1 %estateConsumer 12,179 13,403 -9.1 % 15,633 18,590 -34.5 %nonresidentialTotal loans, net of 1,474,278 1,446,912 1.9 % 1,466,083 1,478,120 -0.3 %feesAllowance for loan (14,359) (14,421) -0.4 % (14,958) (12,894) 11.4 %lossesLoans, net 1,459,919 1,432,491 1.9 % 1,451,125 1,465,226 -0.4 %

Premises and 1,527 1,520 0.5 % 1,654 1,818 -16.0 %equipment, netGoodwill and 8,199 8,277 -0.9 % 8,357 8,525 -3.8 %intangibles, netBank owned life 38,675 38,425 0.7 % 38,178 37,633 2.8 %insurance (BOLI)Other real estate 3,866 3,866 0.0 % 3,866 3,866 0.0 %ownedOther assets 40,612 38,315 6.0 % 44,260 44,789 -9.3 %

Total Assets $ 1,975,251 $ 1,884,517 4.8 % $ 1,821,481 $ 1,781,149 10.9 %

Deposits:Noninterest-bearing $ 500,655 $ 501,812 -0.2 % $ 399,062 $ 442,443 13.2 %

Interest-bearing 610,823 534,436 14.3 % 537,834 387,683 57.6 %checkingSavings and money 290,301 288,452 0.6 % 282,544 268,276 8.2 %marketTime deposits 243,430 234,939 3.6 % 263,053 320,628 -24.1 %

Wholesale deposits 35,000 35,000 0.0 % 50,000 100,006 -65.0 %

Total deposits 1,680,209 1,594,639 5.4 % 1,532,493 1,519,036 10.6 %

Other borrowed 25,000 25,000 0.0 % 25,000 25,000 0.0 %fundsSubordinated notes,net ofissuance costs 44,146 44,116 0.1 % 44,085 24,527 80.0 %

Other liabilities 25,209 25,833 -2.4 % 30,403 31,934 -21.1 %

Stockholders' 200,687 194,929 3.0 % 189,500 180,652 11.1 %equity Total Liabilities &Stockholders'Equity $ 1,975,251 $ 1,884,517 4.8 % $ 1,821,481 $ 1,781,149 10.9 %

FVCBankcorp, Inc.Summary Consolidated Income Statements(In thousands, except per share data)(Unaudited)For the Three Months Ended% Change% ChangeCurrentFrom6/30/20213/31/2021Quarter6/30/2020Year AgoNet interest income$14,186

$14,043

1.0

%

$12,695

11.7

%

Provision for loan losses- -

- -

0.0

%

1,750

-100.0

%

Net interest income after provision for loan losses14,186

14,043

1.0

%

10,945

29.6

%

Noninterest income:Fees on loans27

20

35.0

%

46

-41.3

%

Service charges on deposit accounts247

243

1.6

%

223

10.8

%

BOLI income250

248

0.8

%

282

-11.3

%

Other fee income161

280

-42.5

%

136

18.4

%

Total noninterest income685

791

-13.4

%

687

-0.3

%

Noninterest expense:Salaries and employee benefits4,458

4,548

-2.0

%

3,982

12.0

%

Occupancy and equipment expense820

807

1.6

%

859

-4.5

%

Data processing and network administration551

563

-2.1

%

494

11.5

%

State franchise taxes487

504

-3.4

%

466

4.5

%

Professional fees503

354

42.1

%

207

143.0

%

Impairment on branch closures- -

- -

0.0

%

676

-100.0

%

Other operating expense1,409

1,106

27.4

%

1,314

7.2

%

Total noninterest expense8,228

7,882

4.4

%

7,998

2.9

%

Net income before income taxes6,643

6,952

-4.4

%

3,634

82.8

%

Income tax expense1,478

1,383

6.9

%

754

96.0

%

Net Income$5,165

$5,569

-7.3

%

$2,880

79.3

%

Earnings per share - basic$0.38

$0.41

-7.7

%

$0.21

76.8

%

Earnings per share - diluted$0.36

$0.38

-7.1

%

$0.21

72.0

%

Weighted-average common shares outstanding - basic13,647,193

13,578,279

13,455,053

Weighted-average common shares outstanding - diluted14,517,154

14,536,449

13,924,239

Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP):GAAP net income reported above$5,165

$5,569

$2,880

Add: Impairment loss- -

- -

676

Subtract: provision for income taxes associated with non-GAAP adjustments-

-

(142)

Net Income, Operating earnings (non-GAAP)$5,165

$5,569

$3,414

Earnings per share - basic (non-GAAP operating earnings)$0.38

$0.41

$0.25

Earnings per share - diluted (non-GAAP operating earnings)$0.36

$0.38

$0.25

Return on average assets (non-GAAP operating earnings)1.06%

1.19%

0.79%

Return on average equity (non-GAAP operating earnings)10.41%

11.53%

7.60%

Efficiency ratio (non-GAAP operating earnings)55.33%

53.13%

54.72%

Reconciliation of Net Income (GAAP) to Pre-Tax Pre-Provision Income (Non-GAAP):GAAP net income reported above$5,165

$5,569

$2,880

Add: Provision for loan losses- -

- -

1,750

Add: Impairment losses- -

- -

676

Add: Income tax expense1,478

1,383

754

Pre-tax pre-provision income$6,643

$6,952

$6,060

Earnings per share - basic (non-GAAP pre-tax pre-provision)$0.49

$0.51

$0.45

Earnings per share - diluted (non-GAAP pre-tax pre-provision)$0.46

$0.48

$0.44

Return on average assets (non-GAAP operating earnings)1.36%

1.49%

1.41%

Return on average equity (non-GAAP operating earnings)13.39%

14.40%

13.49%

FVCBankcorp, Inc.Summary Consolidated Income Statements(In thousands, except per share data)(Unaudited) For the Three Months Ended % % Change Change Current From 6/30/2021 3/31/2021 Quarter 6/30/2020 Year Ago Net interest $ 14,186 $ 14,043 1.0 % $ 12,695 11.7 %incomeProvision for - - - - 0.0 % 1,750 -100.0 %loan lossesNet interestincome after 14,186 14,043 1.0 % 10,945 29.6 %provision forloan losses Noninterestincome:Fees on loans 27 20 35.0 % 46 -41.3 %

Service charges 247 243 1.6 % 223 10.8 %on depositaccountsBOLI income 250 248 0.8 % 282 -11.3 %

Other fee income 161 280 -42.5 % 136 18.4 %

Total 685 791 -13.4 % 687 -0.3 %noninterestincome Noninterestexpense:Salaries and 4,458 4,548 -2.0 % 3,982 12.0 %employeebenefitsOccupancy and 820 807 1.6 % 859 -4.5 %equipmentexpenseData processing 551 563 -2.1 % 494 11.5 %and networkadministrationState franchise 487 504 -3.4 % 466 4.5 %taxesProfessional 503 354 42.1 % 207 143.0 %feesImpairment on - - - - 0.0 % 676 -100.0 %branch closuresOther operating 1,409 1,106 27.4 % 1,314 7.2 %expenseTotal 8,228 7,882 4.4 % 7,998 2.9 %noninterestexpenseNet income 6,643 6,952 -4.4 % 3,634 82.8 %before incometaxesIncome tax 1,478 1,383 6.9 % 754 96.0 %expenseNet Income $ 5,165 $ 5,569 -7.3 % $ 2,880 79.3 %

Earnings per $ 0.38 $ 0.41 -7.7 % $ 0.21 76.8 %share - basicEarnings per $ 0.36 $ 0.38 -7.1 % $ 0.21 72.0 %share - dilutedWeighted-averagecommon shares 13,647,193 13,578,279 13,455,053outstanding -basicWeighted-averagecommon shares 14,517,154 14,536,449 13,924,239outstanding -diluted Reconciliation of Net Income(GAAP) to Operating Earnings(Non-GAAP):GAAP net income $ 5,165 $ 5,569 $ 2,880reported aboveAdd: Impairment - - - - 676lossSubtract:provision forincome taxes - - (142)associated withnon-GAAPadjustmentsNet Income,Operating $ 5,165 $ 5,569 $ 3,414earnings(non-GAAP)Earnings pershare - basic 0.38 0.41 0.25(non-GAAP $ $ $operatingearnings)Earnings pershare - diluted 0.36 0.38 0.25(non-GAAP $ $ $operatingearnings) Return onaverage assets 1.06% 1.19% 0.79%(non-GAAPoperatingearnings)Return onaverage equity 10.41% 11.53% 7.60%(non-GAAPoperatingearnings)Efficiency ratio(non-GAAP 55.33% 53.13% 54.72%operatingearnings) Reconciliation of Net Income(GAAP) to Pre-TaxPre-Provision Income(Non-GAAP):GAAP net income $ 5,165 $ 5,569 $ 2,880reported aboveAdd: Provision - - - - 1,750for loan lossesAdd: Impairment - - - - 676lossesAdd: Income tax 1,478 1,383 754expensePre-tax 6,643 6,952 6,060pre-provision $ $ $incomeEarnings pershare - basic 0.49 0.51 0.45(non-GAAP $ $ $pre-taxpre-provision)Earnings pershare - diluted 0.46 0.48 0.44(non-GAAP $ $ $pre-taxpre-provision) Return onaverage assets 1.36% 1.49% 1.41%(non-GAAPoperatingearnings)Return onaverage equity 13.39% 14.40% 13.49%(non-GAAPoperatingearnings)FVCBankcorp, Inc.Summary Consolidated Income Statements(In thousands, except per share data)(Unaudited)For the Six Months Ended% ChangeFrom6/30/20216/30/2020Year AgoNet interest income$28,229

$24,906

13.3

%

Provision for loan losses- -

2,816

-100.0

%

Net interest income after provision for loan losses28,229

22,090

27.8

%

Noninterest income:Fees on loans47

442

-89.4

%

Service charges on deposit accounts490

463

5.8

%

Gain on sale of securities available-for-sale- -

97

-100.0

%

Loss on loans held for sale- -

(451)

-100.0

%

BOLI income498

565

-11.9

%

Other fee income441

265

66.4

%

Total noninterest income1,476

1,381

6.9

%

Noninterest expense:Salaries and employee benefits9,006

8,010

12.4

%

Occupancy and equipment expense1,627

1,715

-5.1

%

Data processing and network administration1,114

928

20.0

%

State franchise taxes991

932

6.3

%

Professional fees857

432

98.4

%

Impairment on branch closures- -

676

-100.0

%

Other operating expense2,515

2,514

0.0

%

Total noninterest expense16,110

15,207

5.9

%

Net income before income taxes13,595

8,264

64.5

%

Income tax expense2,861

1,651

73.3

%

Net Income$10,734

$6,613

62.3

%

Earnings per share - basic$0.79

$0.49

62.2

%

Earnings per share - diluted$0.74

$0.46

59.3

%

Weighted-average common shares outstanding - basic13,612,736

13,603,411

Weighted-average common shares outstanding - diluted14,526,801

14,259,843

Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP):GAAP net income reported above$10,734

$6,613

Add: Impairment loss- -

676

Subtract: provision for income taxes associated with non-GAAP adjustments-

(142)

Net Income, Operating earnings (non-GAAP)$10,734

$7,147

Earnings per share - basic (non-GAAP operating earnings)$0.79

$0.53

Earnings per share - diluted (non-GAAP operating earnings)$0.74

$0.50

Return on average assets (non-GAAP operating earnings)1.13%

0.87%

Return on average equity (non-GAAP operating earnings)10.96%

7.94%

Efficiency ratio (non-GAAP operating earnings)54.23%

55.28%

Reconciliation of Net Income (GAAP) to Pre-Tax Pre-Provision Income (Non-GAAP):GAAP net income reported above$10,734

$6,613

Add: Provision for loan losses- -

2,816

Add: Impairment losses- -

676

Add: Income tax expense2,861

1,651

Pre-tax pre-provision income$13,595

$11,756

Earnings per share - basic (non-GAAP pre-tax pre-provision)$1.00

$0.86

Earnings per share - diluted (non-GAAP pre-tax pre-provision)$0.94

$0.82

Return on average assets (non-GAAP operating earnings)1.43%

1.44%

Return on average equity (non-GAAP operating earnings)13.88%

13.07%

FVCBankcorp, Inc.Summary Consolidated Income Statements(In thousands, except per share data)(Unaudited) For the Six Months Ended % Change From 6/30/2021 6/30/2020 Year Ago Net interest income $ 28,229 $ 24,906 13.3 %

Provision for loan losses - - 2,816 -100.0 %

Net interest income after provision for 28,229 22,090 27.8 %loan losses Noninterest income:Fees on loans 47 442 -89.4 %

Service charges on deposit accounts 490 463 5.8 %

Gain on sale of securities - - 97 -100.0 %available-for-saleLoss on loans held for sale - - (451) -100.0 %

BOLI income 498 565 -11.9 %

Other fee income 441 265 66.4 %

Total noninterest income 1,476 1,381 6.9 %

Noninterest expense:Salaries and employee benefits 9,006 8,010 12.4 %

Occupancy and equipment expense 1,627 1,715 -5.1 %

Data processing and network 1,114 928 20.0 %administrationState franchise taxes 991 932 6.3 %

Professional fees 857 432 98.4 %

Impairment on branch closures - - 676 -100.0 %

Other operating expense 2,515 2,514 0.0 %

Total noninterest expense 16,110 15,207 5.9 %

Net income before income taxes 13,595 8,264 64.5 %

Income tax expense 2,861 1,651 73.3 %

Net Income $ 10,734 $ 6,613 62.3 %

Earnings per share - basic $ 0.79 $ 0.49 62.2 %

Earnings per share - diluted $ 0.74 $ 0.46 59.3 %

Weighted-average common shares 13,612,736 13,603,411outstanding - basicWeighted-average common shares 14,526,801 14,259,843outstanding - diluted Reconciliation of Net Income (GAAP) to OperatingEarnings (Non-GAAP):GAAP net income reported above $ 10,734 $ 6,613

Add: Impairment loss - - 676

Subtract: provision for income taxes - (142)associated with non-GAAP adjustmentsNet Income, Operating earnings (non-GAAP) $ 10,734 $ 7,147

Earnings per share - basic (non-GAAP $ 0.79 $ 0.53operating earnings)Earnings per share - diluted (non-GAAP $ 0.74 $ 0.50operating earnings) Return on average assets (non-GAAP 1.13% 0.87%operating earnings)Return on average equity (non-GAAP 10.96% 7.94%operating earnings)Efficiency ratio (non-GAAP operating 54.23% 55.28%earnings) Reconciliation of Net Income (GAAP) to Pre-TaxPre-Provision Income (Non-GAAP):GAAP net income reported above $ 10,734 $ 6,613

Add: Provision for loan losses - - 2,816

Add: Impairment losses - - 676

Add: Income tax expense 2,861 1,651

Pre-tax pre-provision income $ 13,595 $ 11,756

Earnings per share - basic (non-GAAP $ 1.00 $ 0.86pre-tax pre-provision)Earnings per share - diluted (non-GAAP $ 0.94 $ 0.82pre-tax pre-provision) Return on average assets (non-GAAP 1.43% 1.44%operating earnings)Return on average equity (non-GAAP 13.88% 13.07%operating earnings)FVCBankcorp, Inc.Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities(Dollars in thousands)(Unaudited)For the Three Months Ended6/30/20213/31/20216/30/2020AverageInterestAverageAverageInterestAverageAverageInterestAverageBalanceIncome/ExpenseYieldBalanceIncome/ExpenseYieldBalanceIncome/ExpenseYieldInterest-earning assets:Loans receivable, net of fees (1)Commercial real estate$796,220

$

8,616

4.33

%

$782,639

$

8,396

4.29

%

$770,326

$

8,355

4.34

%

Commercial and industrial120,021

1,421

4.74

%

111,360

1,344

4.83

%

103,226

1,287

4.99

%

Paycheck protection program138,550

1,474

4.26

%

162,066

1,832

4.52

%

121,843

801

2.63

%

Commercial construction212,004

2,382

4.49

%

220,835

2,427

4.40

%

222,685

2,588

4.65

%

Consumer real estate164,938

1,633

3.96

%

165,211

1,676

4.06

%

177,783

2,023

4.55

%

Consumer nonresidential12,810

225

7.04

%

14,199

258

7.27

%

19,520

360

7.37

%

Total loans1,444,543

15,751

4.36

%

1,456,310

15,933

4.38

%

1,415,383

15,414

4.36

%

Investment securities (2)(3)178,875

956

2.14

%

128,988

806

2.50

%

128,797

852

2.65

%

Interest-bearing deposits atother financial institutions228,708

71

0.12

%

182,891

45

0.10

%

70,945

21

0.12

%

Total interest-earning assets1,852,126

16,778

3.62

%

1,768,189

16,784

3.80

%

1,615,125

16,287

4.03

%

Non-interest earning assets:Cash and due from banks15,954

15,346

19,645

Premises and equipment, net1,525

1,610

2,050

Accrued interest and otherassets92,805

96,226

96,362

Allowance for loan losses(14,427

)

(14,894

)

(11,570

)

Total Assets$1,947,983

$1,866,477

$1,721,612

Interest-bearing liabilities:Interest checking$565,074

$

742

0.53

%

$523,712

$

717

0.56

%

$341,081

597

0.70

%

Savings and money market297,003

351

0.47

%

278,774

324

0.47

%

263,588

435

0.66

%

Time deposits238,113

722

1.22

%

246,486

917

1.51

%

321,775

1,724

2.15

%

Wholesale deposits35,000

39

0.45

%

45,778

43

0.38

%

132,072

369

1.13

%

Total interest-bearing deposits1,135,190

1,854

0.66

%

1,094,750

2,001

0.74

%

1,058,516

3,125

1.19

%

Other borrowed funds25,000

85

1.36

%

25,000

83

1.35

%

25,000

35

0.50

%

Subordinated notes, net ofissuance costs44,127

651

5.92

%

44,096

651

5.99

%

24,514

426

6.48

%

Total interest-bearing liabilities1,204,317

2,590

0.86

%

1,163,846

2,735

0.95

%

1,108,030

3,586

1.30

%

Noninterest-bearing liabilities:Noninterest-bearing deposits518,826

479,831

401,318

Other liabilities26,374

29,625

32,585

Stockholders' equity198,466

193,175

179,679

Total Liabilities and Stockholders' Equity$1,947,983

$1,866,477

$1,721,612

Net Interest Margin14,188

3.07

%

14,049

3.22

%

12,701

3.16

%

(1) Non-accrual loans are included in average balances.(2) The average yields for investment securities are reported on a fully taxable-equivalent basis at a rate of 21%. The taxable equivalent adjustment to interest income for the three months ended June 30, 2021 and 2020 iss $2 and $6, respectively.For the three months ended March 31, 2021, the taxable equivalent adjustment to interest income is $6.(3) The average balances for investment securities includes restricted stock.FVCBankcorp, Inc.Average Statements of Condition and Yields on Earning Assets andInterest-Bearing Liabilities(Dollars in thousands)(Unaudited) For the Three Months Ended 6/30/2021 3/31/2021 6/30/2020 Average Interest Average Average Interest Average Average Interest Average Balance Income/ Yield Balance Income/ Yield Balance Income/ Yield Expense Expense ExpenseInterest-earningassets:Loans receivable,net of fees ^(1)Commercial real $ 796,220 $ 8,616 4.33 % $ 782,639 $ 8,396 4.29 % $ 770,326 $ 8,355 4.34 %estateCommercial and 120,021 1,421 4.74 % 111,360 1,344 4.83 % 103,226 1,287 4.99 %industrialPaycheck protection 138,550 1,474 4.26 % 162,066 1,832 4.52 % 121,843 801 2.63 %programCommercial 212,004 2,382 4.49 % 220,835 2,427 4.40 % 222,685 2,588 4.65 %constructionConsumer real 164,938 1,633 3.96 % 165,211 1,676 4.06 % 177,783 2,023 4.55 %estateConsumer 12,810 225 7.04 % 14,199 258 7.27 % 19,520 360 7.37 %nonresidentialTotal loans 1,444,543 15,751 4.36 % 1,456,310 15,933 4.38 % 1,415,383 15,414 4.36 %

Investment 178,875 956 2.14 % 128,988 806 2.50 % 128,797 852 2.65 %securities^ (2)(3)Interest-bearingdeposits atother financial 228,708 71 0.12 % 182,891 45 0.10 % 70,945 21 0.12 %institutionsTotal 1,852,126 16,778 3.62 % 1,768,189 16,784 3.80 % 1,615,125 16,287 4.03 %interest-earningassets Non-interestearning assets:Cash and due from 15,954 15,346 19,645 banksPremises and 1,525 1,610 2,050 equipment, netAccrued interestand otherassets 92,805 96,226 96,362

Allowance for loan (14,427 ) (14,894 ) (11,570 )losses Total Assets $ 1,947,983 $ 1,866,477 $ 1,721,612

Interest-bearingliabilities:Interest checking $ 565,074 $ 742 0.53 % $ 523,712 $ 717 0.56 % $ 341,081 597 0.70 %

Savings and money 297,003 351 0.47 % 278,774 324 0.47 % 263,588 435 0.66 %marketTime deposits 238,113 722 1.22 % 246,486 917 1.51 % 321,775 1,724 2.15 %

Wholesale deposits 35,000 39 0.45 % 45,778 43 0.38 % 132,072 369 1.13 %

Total 1,135,190 1,854 0.66 % 1,094,750 2,001 0.74 % 1,058,516 3,125 1.19 %interest-bearingdeposits Other borrowed 25,000 85 1.36 % 25,000 83 1.35 % 25,000 35 0.50 %fundsSubordinated notes,net ofissuance costs 44,127 651 5.92 % 44,096 651 5.99 % 24,514 426 6.48 %

Total 1,204,317 2,590 0.86 % 1,163,846 2,735 0.95 % 1,108,030 3,586 1.30 %interest-bearingliabilities Noninterest-bearingliabilities:Noninterest-bearing 518,826 479,831 401,318 depositsOther liabilities 26,374 29,625 32,585

Stockholders' 198,466 193,175 179,679 equity Total Liabilities 1,947,983 1,866,477 1,721,612 and Stockholders' $ $ $Equity Net Interest Margin 14,188 3.07 % 14,049 3.22 % 12,701 3.16 %

^(1) Non-accrual loans areincluded in average balances.^(2) The average yields for investment securities are reported on afully taxable-equivalent basis at a rate of 21%. The taxableequivalent adjustment to interest income for the three months endedJune 30, 2021 and 2020 iss $2 and $6, respectively.For the three months ended March 31, 2021, the taxableequivalent adjustment to interest income is $6.^(3) The average balances for investmentsecurities includes restricted stock.FVCBankcorp, Inc.Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities(Dollars in thousands)(Unaudited)For the Six Months Ended6/30/20216/30/2020AverageInterestAverageAverageInterestAverageBalanceIncome/ExpenseYieldBalanceIncome/ExpenseYieldInterest-earning assets:Loans receivable, net of fees (1)Commercial real estate$789,467

$17,011

4.31

%

$763,658

$17,382

4.55

%

Commercial and industrial115,715

2,765

4.78

%

106,705

2,858

5.36

%

Paycheck protection program150,243

3,307

4.40

%

60,921

801

2.63

%

Commercial construction216,395

4,808

4.44

%

221,395

5,389

4.87

%

Consumer real estate165,074

3,308

4.01

%

180,897

4,145

4.58

%

Consumer nonresidential13,500

484

7.16

%

13,445

488

7.26

%

Total loans1,450,394

31,683

4.37

%

1,347,021

31,063

4.61

%

Investment securities (2)(3)154,069

1,763

2.29

%

136,160

1,823

2.68

%

Loans held for sale, at fair value- -

- -

- -

%

6,899

236

6.84

%

Interest-bearing deposits atother financial institutions205,926

116

0.11

%

46,579

102

0.44

%

Total interest-earning assets1,810,389

33,562

3.71

%

1,536,659

33,224

4.32

%

Non-interest earning assets:Cash and due from banks15,652

16,537

Premises and equipment, net1,567

1,996

Accrued interest and otherassets94,506

92,018

Allowance for loan losses(14,659)

(10,926)

Total Assets$1,907,455

$1,636,284

Interest-bearing liabilities:Interest checking$544,507

$1,459

0.54

%

$307,528

1,478

0.97

%

Savings and money market287,939

675

0.47

%

245,542

1,070

0.88

%

Time deposits242,277

1,640

1.36

%

337,792

3,804

2.27

%

Wholesale deposits40,359

81

0.41

%

126,560

949

1.52

%

Total interest-bearing deposits1,115,082

3,855

0.70

%

1,017,422

7,301

1.45

%

Other borrowed funds25,000

168

1.35

%

32,071

215

1.34

%

Subordinated notes, net ofissuance costs44,111

1,302

5.95

%

24,504

790

6.48

%

Total interest-bearing liabilities1,184,193

5,325

0.91

%

1,073,997

8,306

1.56

%

Noninterest-bearing liabilities:Noninterest-bearing deposits499,436

352,841

Other liabilities27,991

29,529

Stockholders' equity195,835

179,917

Total Liabilities and Stockholders' Equity$1,907,455

$1,636,284

Net Interest Margin28,237

3.15

%

24,918

3.26

%

(1) Non-accrual loans are included in average balances.(2) The average yields for investment securities are reported on a fully taxable-equivalent basis at a rate of 21%. The taxableequivalent adjustment to interest income was $8 and $12 for the six months ended June 30, 2021 and 2020, respectively.(3) The average balances for investment securities includes restricted stock. View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005497/en/

CONTACT: David W. Pijor, Esq., Chairman and Chief Executive Officer Phone: (703) 436-3802 Email: dpijor@fvcbank.com

CONTACT: Patricia A. Ferrick, President Phone: (703) 436-3822 Email: pferrick@fvcbank.com