Business Wire | Nov 5, 2021 08:28AM EDT

FVCBankcorp, Inc. Announces Third Quarter 2021 Earnings; Record Quarterly and Year-to-Date Operating Earnings for 2021

Nov. 05, 2021

FAIRFAX, Va.--(BUSINESS WIRE)--Nov. 05, 2021--FVCBankcorp, Inc. (NASDAQ: FVCB) (the "Company") today reported third quarter 2021 net income of $4.7 million, or $0.32 diluted earnings per share, compared to $3.9 million, or $0.28 diluted earnings per share, for the quarterly period ended September 30, 2020, an increase of 21%. For the nine months ended September 30, 2021, the Company reported net income of $15.4 million, or $1.06 diluted earnings per share, compared to $10.5 million or $0.74 diluted earnings per share, for the same period of 2020, a year-over-year increase of $4.9 million, or 47%. Net income for the three and nine months ended September 30, 2021 include merger-related expenses of $1.1 million which are associated with the Company's previously announced proposed merger (the "merger") with Blue Ridge Bankshares, Inc. (NYSEAM:BRBS) ("Blue Ridge"), and $380 thousand of accelerated recognition of debt issuance costs related to its 2016 subordinated debt issuance, which was redeemed at the Company's option on September 30, 2021.

Operating earnings, which exclude merger-related expenses and accelerated debt issuance costs, net of tax, for the three months ended September 30, 2021 and 2020 were $5.8 million and $3.9 million, respectively, an increase of $1.9 million, or 51%. Diluted earnings per share excluding merger-related expenses and accelerated debt issuance costs, net of tax, for the three months ended September 30, 2021 and 2020 were $0.40 and $0.28, respectively. On a linked quarter basis, operating earnings increased $684 thousand, or 13%, for the three months ended September 30, 2021 as compared to the operating earnings of June 30, 2021. Operating earnings return on average assets for the three months ended September 30, 2021 and 2020 was 1.14% and 0.89%, respectively. Operating earnings return on average equity for the three months ended September 30, 2021 and 2020 was 11.46% and 8.44%, respectively. The Company believes that operating earnings is a financial measure that is more reflective of the Company's operating performance than net income. Operating earnings is determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"). A reconciliation of non-GAAP financial measures to their most comparable financial measures in accordance with GAAP can be found in the tables below.

For the nine months ended September 30, 2021 and 2020, operating earnings (which excludes merger-related expenses and accelerated debt issuance costs during 2021, and branch closure costs recorded during 2020) was $16.6 million and $11.0 million, respectively, an increase of $5.6 million, or 50%. Diluted earnings per share on an operating earnings basis for the nine months ended September 30, 2021 and 2020 were $1.14 and $0.78, respectively. Operating earnings annualized return on average assets for the nine months ended September 30, 2021 and 2020 was 1.13% and 0.88%, respectively. Operating earnings annualized return on average equity for the nine months ended September 30, 2021 and 2020 was 11.13% and 8.11%, respectively.

Annualized return on average assets was 0.91% and annualized return on average equity was 9.18% for the third quarter of 2021. For the comparable quarterly September 30, 2020 period, annualized return on average assets was 0.89% and annualized return on average equity was 8.44%. For the year-to-date September 30, 2021 period, annualized return on average assets was 1.05% and annualized return on average equity was 10.35% compared to annualized return on average assets of 0.84% and annualized return on average equity of 7.72% for the nine months ended September 30, 2020.

On August 31, 2021, the Company announced its wholly-owned subsidiary, FVCbank (the "Bank") had acquired a membership interest in Atlantic Coast Mortgage, LLC ("ACM") for $20.4 million. As a result of this investment, the Bank has obtained a 28.7% ownership interest in ACM. The Bank began providing a warehouse lending facility to ACM during the second quarter of 2021, which includes a construction-to-permanent financing line, and has developed portfolio mortgage products to diversify its held for investment loan portfolio. At September 30, 2021, the warehouse facility totaled $41.8 million, portfolio loans totaled $9.8 million, and noninterest income attributable to the Bank's investment in ACM totaled $364 thousand.

On July 14, 2021, the Company announced the signing of a definitive merger agreement with Blue Ridge, 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, the Bank 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. The Company has learned that the Office of the Comptroller of the Currency (the "OCC") identified certain regulatory concerns with Blue Ridge Bank that could impact the application process and timing of the merger. Blue Ridge Bank has already commenced an initiative intended to fully address the OCC's concerns. The Company anticipates the merger will close in the second or third quarter of 2022.

Third Quarter Selected Highlights

* Continued 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 $1.41 billion at September 30, 2021, compared to $1.31 billion at December 31, 2020, an increase of $97.7 million, or 10%, annualized. During the third quarter of 2021, when excluding PPP loans and ACM's warehouse lending facility, loans receivable, net of deferred fees, increased $52.3 million, or 16% annualized. * Strong Credit Quality Metrics. During the third quarter of 2021, past due loans 30 days or more decreased to $652 thousand from $2.2 million at June 30, 2021, a decrease of $1.6 million, or 71%. No commercial loans were past due at September 30, 2021. Nonperforming loans and loans past due 90 days or more and still accruing decreased to 0.18% of total assets at September 30, 2021, compared to 0.31% at December 31, 2020, and decreased $1.4 million, or 28%, from June 30, 2021. Further, as of the date of this press release, the Bank sold its other real estate owned totaling $3.9 million at September 30, 2021, with no loss incurred. * Strong Core Deposit Growth. Deposits increased 13% year over year, of which noninterest-bearing deposits increased 27%. During the quarter ended September 30, 2021, noninterest-bearing deposits increased $48.0 million, or 10%, to $548.7 million, representing 32% of total deposits at September 30, 2021. * Increased Net Interest Income. Net interest income increased $884 thousand to $14.5 million for the third quarter of 2021, compared to $13.6 million for the same 2020 period. Net interest margin was 2.97% for the quarter ended September 30, 2021, compared to 3.30% for the year ago quarter of 2020 and 3.07% for the second quarter of 2021, as increased excess liquidity continued to impact net interest margin for the third quarter of 2021. The previously mentioned accelerated recognition of debt issuance costs decreased net interest income for the third quarter of 2021 by $380 thousand and decreased net interest margin by 8 basis points.

"We see strong economic growth in our markets as exemplified by our robust loan pipeline. During the third quarter of 2021, we originated over $220 million in new loans, more than twice what we originated during the second quarter of 2021. Achieving this growth, all while our teams are working with their counterparts at Blue Ridge to make progress on a successful merger integration, is a testament to the customer-centric team we have created over the past 14 years of FVCbank's history," stated David W. Pijor, Chairman and CEO.

Balance SheetTotal assets were $2.00 billion at September 30, 2021, $1.82 billion at December 31, 2020, and $1.79 billion at September 30, 2020. Total asset growth year-to-date 2021 was $176.4 million, or 13% annualized. For the year-over-year period, total assets increased $203.7 million, or 11%. During the quarter ended September 30, 2021, total assets increased $22.7 million, or 5% annualized.

Loans receivable, net of deferred fees were $1.47 billion at each of September 30, 2021 and December 31, 2020, and $1.50 billion at September 30, 2020. Excluding PPP loans, loans receivable, net of deferred fees totaled $1.41 billion at September 30, 2021, $1.31 billion at December 31, 2020, and $1.33 billion at September 30, 2020. Loans receivable, net of deferred fees and excluding PPP loans, increased $97.7 million, or 10% annualized, for the year-to-date 2021 period, and increased $83.5 million, or 6% annualized, year-over-year. For the quarter, loans receivable, net of deferred fees and excluding PPP loans increased $36.0 million, or 10% annualized. During the second quarter of 2021, the Company began originating loans under a warehouse lending facility to ACM, which contributed $58.0 million to second quarter 2021 loan growth. At September 30, 2021, this warehouse facility decreased to $41.8 million due to the timing of repayments having occurred late in the quarter. During the third quarter of 2021, loans receivable, net of fees and excluding PPP loans and the warehouse lending facility, increased $52.3 million, or 16% annualized. Loans originated during the third quarter of 2021 totaled $200.0 million, of which $119.8 million were funded.

PPP loans, net of fees, totaled $58.2 million at September 30, 2021, a decrease from $99.5 million at June 30, 2021, and a decrease from $153.0 million at December 31, 2020. Loans forgiven during the third quarter of 2021 totaled $41.2 million, and totaled $94.7 million for year-to-date 2021. Net deferred fees associated with PPP loans totaled $1.4 million at September 30, 2021.

Investment securities were $270.2 million at September 30, 2021, $126.4 million at December 31, 2020, and $111.2 million at September 30, 2020. Investment securities increased $69.5 million during the three months ended September 30, 2021, and increased $143.8 million year-to-date. The Company has been investing in fixed income securities funded through its increase in deposits and PPP forgiveness to deploy excess liquidity while improving net interest margin.

Total deposits were $1.71 billion at September 30, 2021, $1.53 billion at December 31, 2020, and $1.51 billion at September 30, 2020. Total deposits increased $177.0 million, or 15% annualized, year-to-date, and increased $195.2 million, or 13% annualized, year-over-year. For the quarter, total deposits increased $29.3 million, or 7% annualized. Noninterest-bearing deposits were $548.7 million at September 30, 2021, an increase of $48.0 million, or 38% annualized, for the quarter ended September 30, 2021, and increased $149.6 million, or 50% annualized, year-to-date. Wholesale deposits continue to be at historic lows totaling $35.0 million, or 2% of total deposits, at September 30, 2021, a decrease of $15.0 million from December 31, 2020.

The Company's bank subsidiary, FVCbank, remains well-capitalized at September 30, 2021 with a community bank leverage ratio of 10.67%.

Income StatementNet income for the three months ended September 30, 2021 was $4.7 million, an increase of $808 thousand, or 21%, compared to $3.9 million for the same period of 2020. Operating income, a non-GAAP measure that excludes merger-related expenses of $1.1 million and accelerated debt issuance costs of $380 thousand for the redemption of the 2016 subordinated debt, net of tax, for the three months ended September 30, 2021 was $5.8 million, an increase of $1.9 million, or 51%, when compared to the same period of 2020. A reconciliation of GAAP to non-GAAP financial measures can be found in the tables below. For the nine months ended September 30, 2021, net income was $15.4 million, an increase of $4.9 million, or 47%, compared to $10.5 million for the same period of 2020. Both the three and nine months' periods of 2020 were impacted by increased provision for loan losses and the nine month period of 2020 was impacted by the impairment on branch closures totaling $676 thousand.

Net interest income totaled $14.5 million, an increase of $884 thousand, or 7%, for the quarter ended September 30, 2021, compared to the year ago quarter, and increased by $293 thousand, or 2%, compared to the second quarter of 2021. Net interest income for the three months ended September 30, 2021 was impacted by the one-time recognition of accelerated debt issuance costs totaling $380 thousand as a result of the Company's redemption of its 2016 subordinated debt on September 30, 2021. Interest expense on deposits decreased $842 thousand for the three months ended September 30, 2021 compared to the same period of 2020. The decrease in deposit costs 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 $62 thousand, $146 thousand, and $469 thousand for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively.

Net interest income for the three months ended September 30, 2021 benefited from PPP loan income, which contributed $1.2 million to interest income, of which $712 thousand was related to recognition of net deferred fees on forgiven loans. This compares to interest income from PPP loans of $1.5 million for the second quarter of 2021, which included recognition of net deferred fees of $811 thousand on forgiven loans. Remaining net deferred fees related to PPP loan originations totaled $1.4 million at September 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 nine months ended September 30, 2021 and 2020, net interest income was $42.7 million and $38.5 million, respectively, an increase of $4.2 million, or 11%, year-over-year. Net interest income was impacted by the aforementioned accelerated debt issuance costs of $380 thousand for the nine months ended September 30, 2021. Interest expense on deposits decreased $4.3 million for the nine months ended September 30, 2021 compared to the same period of 2020. Interest income includes loan mark accretion on acquired loans totaling $341 thousand and $758 thousand for the nine months ended September 30, 2021 and September 30, 2020, respectively. PPP loan income contributed $4.5 million to interest income, of which $2.4 million was related to recognition of net deferred fees on forgiven loans for the nine months ended September 30, 2021. This compares to interest income from PPP loans of $1.8 million for the nine months ended September 30, 2020.

The Company's net interest margin decreased 33 basis points to 2.97% for the quarter ended September 30, 2021, compared to 3.30% for the quarter ended September 30, 2020. On a linked quarter basis, net interest margin decreased 10 basis points from 3.07% for the three months ended June 30, 2021. The accelerated debt issuance costs recorded during the third quarter of 2021 decreased net interest margin by 8 basis points. Excess liquidity continues to compress net interest margin, decreasing margin by 26 basis points during the third 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 and level of PPP loan forgiveness continues to offset this asset growth.

The average yield on total loans for the third quarter of 2021 was 4.42%, compared to 4.36% for the linked quarter ended June 30, 2021, and 4.30% 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 6.08% for the third quarter of 2021, compared to 2.31% for the year ago quarter ended September 30, 2020.

Cost of interest-bearing deposits for the third quarter of 2021 was 0.61%, compared to 1.01% for the third quarter of 2020, a decrease of 40 basis points, or 40%, 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 3 basis points to 0.42% for the third quarter of 2021 as compared to 0.45% for the second quarter of 2021, and decreased 31 basis points from 0.73% for the year ago quarter of 2020.

Noninterest income totaled $1.1 million and $770 thousand for the quarters ended September 30, 2021 and 2020, respectively. The increase in noninterest income is primarily attributable to the Bank's income associated with its investment in ACM, recording $364 thousand during the third quarter of 2021. Fee income from loans was $26 thousand, a decrease of $9 thousand, for the quarter ended September 30, 2021, compared to the third quarter of 2020. Service charges on deposit accounts and other fee income totaled $422 thousand for the third quarter of 2021, an increase of $11 thousand, from the year ago quarter. Income from bank-owned life insurance decreased $31 thousand to $249 thousand for the three months ended September 30, 2021 compared to $280 thousand for the same period of 2020. Noninterest income for the year-to-date period ended September 30, 2021 was $2.5 million, compared to $2.2 million for the 2020 year-to-date period, an increase of $386 thousand, or 18%, which was primarily driven by the aforementioned income associated with the Bank's membership interest in ACM.

Noninterest expense totaled $9.4 million for the quarter ended September 30, 2021, compared to $7.7 million for the same three-month period of 2020, an increase of $1.7 million, or 22%. On a linked quarter basis, noninterest expense was $8.2 million for the quarter ended June 30, 2021, an increase of $1.2 million, or 15%. The increase in noninterest expense compared to the year ago and linked quarters was primarily related to merger-related expenses of $1.1 million recorded during the third quarter of 2021. In addition, salaries and benefits expense increased $373 thousand and $259 thousand compared to the year ago and linked quarters, respectively, which are primarily related to additions to business development staff earlier in the year and associated accruals for incentive compensation during the third quarter of 2021. Legal expenses related to loan workouts (which is included in other operating expense on the income statement) increased $138 thousand during the third quarter of 2021 when compared to the year ago quarter.

For the nine months ended September 30, 2021 and 2020, noninterest expense, was $25.5 million and $23.0 million, respectively, an increase of $2.6 million, or 11%, primarily as a result of the aforementioned merger-related expenses and additions to business development staffing and associated increases in incentive accruals.

The efficiency ratio, excluding merger-related expenses and the accelerated subordinated debt issuance costs, for the quarter ended September 30, 2021 was 52.3%, a decrease from 53.9% for the quarter ended September 30, 2020. The efficiency ratios for the nine months ended September 30, 2021 and 2020, excluding merger-related costs and accelerated subordinated debt issuance costs recorded during 2021, and branch closure costs recorded during 2020 were 53.5% and 54.8%, respectively. A reconciliation of GAAP to non-GAAP financial measures can be found in the tables below.

The Company recorded a provision for income taxes of $1.4 million for the three months ended September 30, 2021, compared to $1.0 million for the same period of 2020. The effective tax rates for the three months ended September 30, 2021 and 2020 were 23.4% and 21.2%, respectively. The effective tax rate for the third quarter of 2021 is greater than the Company's combined federal and state statutory rate of 22.5% primarily because of nondeductible merger-related expenses recognized during the quarter. For the nine months ended September 30, 2021 and 2020, provision for income taxes was $4.3 million and $2.7 million, respectively.

Asset QualityThe Company recorded no provision for loan losses for the three months and nine months ended September 30, 2021, compared to $1.7 million for the year ago quarter and $4.5 million for the nine months ended September 30, 2020. 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 September 30, 2021 is primarily related to the improvement in certain credit quality metrics during the third quarter of 2021; specifically, a reduction in the Company's past due loans and specific reserves for certain watchlist loans which improved in credit quality during the quarter. In addition, the Company completed reviews of its COVID-impacted portfolio segments and reduced certain qualitative factors as a result of the improved performance of these portfolio segments.

The allowance for loan losses to total loans, excluding PPP loans, was 1.02% at September 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 1.08% at September 30, 2021 compared to 1.27% at December 31, 2020. The decrease in this effective reserve coverage was a result of the payoff of one acquired loan with a credit mark of over $500 thousand during the third quarter of 2021. Net recoveries of $4 thousand were recorded during the third quarter of 2021.

Nonperforming loans and loans 90 days or more past due at September 30, 2021 totaled $3.6 million, or 0.18% 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 $993 thousand, representing the expected losses associated with those loans. The Company has one troubled debt restructuring at September 30, 2021 totaling $94 thousand, which is a consumer residential loan. Nonperforming assets (including the Bank's other real estate owned property sold in October) to total assets was 0.38% at September 30, 2021 compared to 0.52% at 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 $2.00 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 StatementsThis 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 Nine Months At or For the Three Months Ended, Ended, Ended 9/30/2021 9/30/2020 9/30/2021 9/30/2020 6/30/2021 12/31/2020Selected Balances Total assets $ 1,997,902 $ 1,794,172 $ 1,975,251 $ 1,821,481

Total investment 276,579 117,746 207,044 132,978 securitiesTotal loans, net of 1,469,086 1,497,634 1,474,278 1,466,083 deferred feesAllowance for loan (14,363 ) (14,556 ) (14,359 ) (14,958 )lossesTotal deposits 1,709,498 1,514,348 1,680,209 1,532,493

Subordinated debt 19,551 24,547 44,146 44,085

Other borrowings 25,000 40,000 25,000 25,000

Total stockholders' 204,194 184,490 200,687 189,500 equitySummary Results of OperationsInterest income $ 17,386 $ 16,761 $ 50,940 $ 49,974 $ 16,776 $ 17,129

Interest expense 2,907 3,166 8,232 11,473 2,590 3,010

Net interest income 14,479 13,595 42,708 38,501 14,186 14,119

Provision for loan - - 1,700 - 4,516 - 500 lossesNet interest income 14,479 11,895 42,708 33,985 14,186 13,619 after provision forloan lossesNoninterest income- loan fees, 448 446 1,427 1,616 435 476 service charges andotherNoninterest income 249 280 746 845 250 264 - bank owned lifeinsuranceNoninterest income 364 - - 364 - - - - - - - minority membership interestNoninterest income- gain on sales of - - 44 - - 141 - - - - securitiesavailable-for-saleNoninterest income - - - - - - (451 ) - - - - - loss on loansheld for saleNoninterest expense 9,426 7,746 25,535 22,953 8,228 7,885

Income before taxes 6,114 4,919 19,710 13,183 6,643 6,474

Income tax expense 1,432 1,045 4,294 2,696 1,478 1,460

Net income 4,682 3,874 15,416 10,487 5,165 5,014

Per Share Data Net income, basic $ 0.34 $ 0.29 $ 1.13 $ 0.77 $ 0.38 $ 0.37

Net income, diluted $ 0.32 $ 0.28 $ 1.06 $ 0.74 $ 0.36 $ 0.36

Book value $ 14.92 $ 13.69 $ 14.70 $ 14.03

Tangible book value $ 14.33 $ 13.06 $ 14.10 $ 13.41 ^(1)Shares outstanding 13,686,752 13,478,115 13,647,600 13,510,760

Selected Ratios Net interest margin 2.97 % 3.30 % 3.08 % 3.27 % 3.07 % 3.28 %^(2)Return on average 0.91 % 0.89 % 1.05 % 0.84 % 1.06 % 1.11 %assets ^(2)Return on average 9.18 % 8.44 % 10.35 % 7.72 % 10.41 % 10.68 %equity ^(2)Efficiency ^(3) 60.66 % 53.92 % 56.44 % 56.46 % 55.33 % 53.07 %

Loans, net of 85.94 % 98.90 % 87.74 % 95.67 %deferred fees to total depositsNoninterest-bearing 32.09 % 28.48 % 29.80 % 26.04 %deposits to total depositsReconciliation ofNet Income (GAAP)to Operating Earnings (Non-GAAP)^(4)Net income (from $ 4,682 $ 3,874 $ 15,416 $ 10,487 $ 5,165 $ 5,014 above)Add: Merger and 1,107 - - 1,107 - - - - - - acquisition expenseAdd: Impairment on - - - - - - 676 - - - - branch closuresAdd: Accelerated 380 - - 380 - - - - - - debt issuance costsLess: provision forincome taxes (320 ) - - (320 ) (142 ) - - - - associated withnon-GAAPadjustmentsNet income, as $ 5,849 $ 3,874 $ 16,583 $ 11,021 $ 5,165 $ 5,014 adjustedNet income, $ 0.40 $ 0.28 $ 1.14 $ 0.78 $ 0.36 $ 0.36 diluted, on anoperating basisReturn on average 1.14 % 0.89 % 1.13 % 0.88 % 1.06 % 1.11 %assets (non-GAAPoperating earnings)Return on average 11.46 % 8.44 % 11.13 % 8.11 % 10.41 % 10.68 %equity (non-GAAPoperating earnings)Efficiency ratio 53.14 % 53.92 % 53.86 % 54.80 % 55.33 % 53.07 %(non-GAAP operatingearnings) ^(3)Capital Ratios - BankTangible common 9.85 % 9.86 % 9.79 % 9.99 %equity (to tangible assets)Tier 1 leverage (to 10.67 % 11.02 % 11.48 % 11.65 %average assets)Asset Quality Nonperforming loans $ 3,638 $ 8,005 $ 4,069 $ 5,621 and loans 90+ past duePerforming troubled 94 98 95 97 debt restructurings (TDRs)Other real estate 3,866 3,866 3,866 3,866 ownedNonperforming loansand loans 90+ past 0.18 % 0.45 % 0.21 % 0.31 %due to total assets(excl. TDRs)Nonperforming 0.38 % 0.66 % 0.40 % 0.52 %assets to total assetsNonperformingassets (including 0.38 % 0.67 % 0.41 % 0.53 %TDRs) to totalassetsAllowance for loan 0.98 % 0.97 % 0.97 % 1.02 %losses to loansAllowance for loan 394.80 % 181.84 % 352.89 % 266.11 %losses to nonperforming loansNet (recoveries) $ (4 ) $ 38 $ 594 $ 191 $ 62 $ 98 charge-offsNet charge-offs to (0.00 ) % 0.01 % 0.05 % 0.02 % 0.02 % 0.03 %average loans ^(2)Selected Average BalancesTotal assets $ 2,048,531 $ 1,749,005 $ 1,954,997 $ 1,674,132 $ 1,947,983 $ 1,812,298

Total earning 1,935,083 1,642,025 1,852,410 1,572,038 1,852,126 1,710,345 assetsTotal loans, net of 1,466,155 1,484,853 1,455,705 1,393,301 1,444,543 1,485,121 deferred feesTotal deposits 1,748,994 1,481,899 1,659,835 1,407,747 1,654,016 1,527,313

Other Data Noninterest-bearing $ 548,662 $ 431,322 $ 500,655 $ 399,062 depositsInterest-bearing 910,198 686,592 901,124 820,378 checking, savings and money marketTime deposits 215,638 301,431 243,430 263,053

Wholesale deposits 35,000 95,003 35,000 50,000

^(1) Non-GAAP At September 30, Reconciliation(Dollars in 2021 2020 thousands, except per share data) Total stockholders' $ 204,194 $ 184,490 equityLess: goodwill and (8,124 ) (8,440 ) intangibles, netTangible Common $ 196,070 $ 176,050 Equity Book value per $ 14.92 $ 13.69 common shareLess: intangible (0.59 ) (0.63 )book value per common shareTangible book value $ 14.33 $ 13.06 per common share (2) Annualized.(3) Efficiency ratio is calculated as noninterest expense divided by the sum of 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 Company classifies a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP in our consolidated statements of income, balance sheets or statements of cash flows.^(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% ChangeCurrentFrom9/30/20216/30/2021Quarter12/31/20209/30/2020Year AgoCash and due from banks$30,382

$24,856

22.2

%

$20,835

$22,121

37.3

%

Interest-bearing deposits atother financial institutions122,487

190,553

-35.7

%

120,228

73,774

66.0

%

Investment securities270,207

200,672

34.7

%

126,415

111,183

143.0

%

Restricted stock, at cost6,372

6,372

0.0

%

6,563

6,563

-2.9

%

Loans, net of fees:Commercial real estate868,324

829,683

4.7

%

788,218

805,946

7.7

%

Commercial and industrial161,961

140,611

15.2

%

119,200

111,736

44.9

%

Paycheck protection program58,248

99,455

-41.4

%

152,978

170,338

-65.8

%

Commercial construction205,750

207,790

-1.0

%

221,523

214,740

-4.2

%

Consumer real estate166,721

184,560

-9.7

%

168,531

177,730

-6.2

%

Consumer nonresidential8,082

12,179

-33.6

%

15,633

17,144

-52.9

%

Total loans, net of fees1,469,086

1,474,278

-0.4

%

1,466,083

1,497,634

-1.9

%

Allowance for loan losses(14,363)

(14,359)

0.0

%

(14,958)

(14,556)

-1.3

%

Loans, net1,454,723

1,459,919

-0.4

%

1,451,125

1,483,078

-1.9

%

Premises and equipment, net1,655

1,527

8.4

%

1,654

1,747

-5.3

%

Goodwill and intangibles, net8,124

8,199

-0.9

%

8,357

8,440

-3.7

%

Bank owned life insurance (BOLI)38,924

38,675

0.6

%

38,178

37,913

2.7

%

Other real estate owned3,866

3,866

0.0

%

3,866

3,866

0.0

%

Other assets61,162

40,612

50.6

%

44,260

45,487

34.5

%

Total Assets$1,997,902

$1,975,251

1.1

%

$1,821,481

$1,794,172

11.4

%

Deposits:Noninterest-bearing$548,662

$500,655

9.6

%

$399,062

$431,322

27.2

%

Interest-bearing checking588,650

610,823

-3.6

%

537,834

388,531

51.5

%

Savings and money market321,548

290,301

10.8

%

282,544

298,061

7.9

%

Time deposits215,638

243,430

-11.4

%

263,053

301,431

-28.5

%

Wholesale deposits35,000

35,000

0.0

%

50,000

95,003

-63.2

%

Total deposits1,709,498

1,680,209

1.7

%

1,532,493

1,514,348

12.9

%

Other borrowed funds25,000

25,000

0.0

%

25,000

40,000

-37.5

%

Subordinated notes, net ofissuance costs19,551

44,146

-55.7

%

44,085

24,547

-20.4

%

Other liabilities39,659

25,209

57.3

%

30,403

30,787

28.8

%

Stockholders' equity204,194

200,687

1.7

%

189,500

184,490

10.7

%

Total Liabilities & Stockholders'Equity$1,997,902

$1,975,251

1.1

%

$1,821,481

$1,794,172

11.4

%

FVCBankcorp, Inc.Summary Consolidated Statements of Condition(Dollars in thousands)(Unaudited) % % Change Change Current From 9/30/2021 6/30/2021 Quarter 12/31/2020 9/30/2020 Year Ago Cash and due from $ 30,382 $ 24,856 22.2 % $ 20,835 $ 22,121 37.3 %banksInterest-bearingdeposits atother financial 122,487 190,553 -35.7 % 120,228 73,774 66.0 %institutionsInvestment 270,207 200,672 34.7 % 126,415 111,183 143.0 %securitiesRestricted stock, 6,372 6,372 0.0 % 6,563 6,563 -2.9 %at costLoans, net of fees:Commercial real 868,324 829,683 4.7 % 788,218 805,946 7.7 %estateCommercial and 161,961 140,611 15.2 % 119,200 111,736 44.9 %industrialPaycheck protection 58,248 99,455 -41.4 % 152,978 170,338 -65.8 %programCommercial 205,750 207,790 -1.0 % 221,523 214,740 -4.2 %constructionConsumer real 166,721 184,560 -9.7 % 168,531 177,730 -6.2 %estateConsumer 8,082 12,179 -33.6 % 15,633 17,144 -52.9 %nonresidentialTotal loans, net of 1,469,086 1,474,278 -0.4 % 1,466,083 1,497,634 -1.9 %feesAllowance for loan (14,363) (14,359) 0.0 % (14,958) (14,556) -1.3 %lossesLoans, net 1,454,723 1,459,919 -0.4 % 1,451,125 1,483,078 -1.9 %

Premises and 1,655 1,527 8.4 % 1,654 1,747 -5.3 %equipment, netGoodwill and 8,124 8,199 -0.9 % 8,357 8,440 -3.7 %intangibles, netBank owned life 38,924 38,675 0.6 % 38,178 37,913 2.7 %insurance (BOLI)Other real estate 3,866 3,866 0.0 % 3,866 3,866 0.0 %ownedOther assets 61,162 40,612 50.6 % 44,260 45,487 34.5 %

Total Assets $ 1,997,902 $ 1,975,251 1.1 % $ 1,821,481 $ 1,794,172 11.4 %

Deposits:Noninterest-bearing $ 548,662 $ 500,655 9.6 % $ 399,062 $ 431,322 27.2 %

Interest-bearing 588,650 610,823 -3.6 % 537,834 388,531 51.5 %checkingSavings and money 321,548 290,301 10.8 % 282,544 298,061 7.9 %marketTime deposits 215,638 243,430 -11.4 % 263,053 301,431 -28.5 %

Wholesale deposits 35,000 35,000 0.0 % 50,000 95,003 -63.2 %

Total deposits 1,709,498 1,680,209 1.7 % 1,532,493 1,514,348 12.9 %

Other borrowed 25,000 25,000 0.0 % 25,000 40,000 -37.5 %fundsSubordinated notes,net ofissuance costs 19,551 44,146 -55.7 % 44,085 24,547 -20.4 %

Other liabilities 39,659 25,209 57.3 % 30,403 30,787 28.8 %

Stockholders' 204,194 200,687 1.7 % 189,500 184,490 10.7 %equity Total Liabilities &Stockholders'Equity $ 1,997,902 $ 1,975,251 1.1 % $ 1,821,481 $ 1,794,172 11.4 %

FVCBankcorp, Inc.Summary Consolidated Income Statements(In thousands, except per share data)(Unaudited)For the Three Months Ended% Change% ChangeCurrentFrom9/30/20216/30/2021Quarter9/30/2020Year AgoNet interest income$14,479

$14,186

2.1

%

$13,595

6.5

%

Provision for loan losses- -

- -

0.0

%

1,700

-100.0

%

Net interest income after provision for loan losses14,479

14,186

2.1

%

11,895

21.7

%

Noninterest income:Fees on loans26

27

-3.7

%

35

-25.7

%

Service charges on deposit accounts278

247

12.6

%

275

1.1

%

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

- -

0.0

%

44

-100.0

%

BOLI income249

250

-0.4

%

280

-11.1

%

Income from minority membership interest364

- -

100.0

%

- -

100.0

%

Other fee income144

161

-10.6

%

136

5.9

%

Total noninterest income1,061

685

54.9

%

770

37.8

%

Noninterest expense:Salaries and employee benefits4,717

4,458

5.8

%

4,344

8.6

%

Occupancy and equipment expense810

820

-1.2

%

811

-0.1

%

Data processing and network administration520

551

-5.6

%

538

-3.3

%

State franchise taxes496

487

1.8

%

466

6.4

%

Professional fees356

503

-29.2

%

303

17.5

%

Merger and acquisition expense1,107

- -

100.0

%

- -

100.0

%

Other operating expense1,420

1,409

0.8

%

1,284

10.6

%

Total noninterest expense9,426

8,228

14.6

%

7,746

21.7

%

Net income before income taxes6,114

6,643

-8.0

%

4,919

24.3

%

Income tax expense1,432

1,478

-3.1

%

1,045

37.0

%

Net Income$4,682

$5,165

-9.4

%

$3,874

20.9

%

Earnings per share - basic$0.34

$0.38

-9.6

%

$0.29

19.0

%

Earnings per share - diluted$0.32

$0.36

-9.9

%

$0.28

14.9

%

Weighted-average common shares outstanding - basic13,682,727

13,647,193

13,476,639

Weighted-average common shares outstanding - diluted14,611,735

14,517,154

13,891,474

Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP):GAAP net income reported above$4,682

$5,165

$3,874

Add: Merger and acquisition expense1,107

- -

- -

Add: Accelerated debt issuance costs380

- -

- -

Subtract: provision for income taxes associated with non-GAAP adjustments(320)

- -

-

Net Income, Operating earnings (non-GAAP)$5,849

$5,165

$3,874

Earnings per share - basic (non-GAAP operating earnings)$0.43

$0.38

$0.29

Earnings per share - diluted (non-GAAP operating earnings)$0.40

$0.36

$0.28

Return on average assets (non-GAAP operating earnings)1.14%

1.06%

0.89%

Return on average equity (non-GAAP operating earnings)11.46%

10.41%

8.44%

Efficiency ratio (non-GAAP operating earnings)53.14%

55.33%

53.92%

Reconciliation of Net Income (GAAP) to Pre-Tax Pre-Provision Income (Non-GAAP):GAAP net income reported above$4,682

$5,165

$3,874

Add: Provision for loan losses- -

- -

1,700

Add: Merger and acquisition expense1,107

- -

- -

Add: Accelerated debt issuance costs380

- -

- -

Add: Income tax expense1,432

1,478

1,045

Pre-tax pre-provision income$7,601

$6,643

$6,619

Earnings per share - basic (non-GAAP pre-tax pre-provision)$0.56

$0.49

$0.49

Earnings per share - diluted (non-GAAP pre-tax pre-provision)$0.52

$0.46

$0.48

Return on average assets (non-GAAP operating earnings)1.48%

1.36%

1.51%

Return on average equity (non-GAAP operating earnings)14.90%

13.39%

14.43%

FVCBankcorp, Inc.Summary Consolidated Income Statements(In thousands, except per share data)(Unaudited) For the Three Months Ended % % Change Change Current From 9/30/2021 6/30/2021 Quarter 9/30/2020 Year Ago Net interest $ 14,479 $ 14,186 2.1 % $ 13,595 6.5 %incomeProvision for loan - - - - 0.0 % 1,700 -100.0 %lossesNet interestincome after 14,479 14,186 2.1 % 11,895 21.7 %provision for loanlosses Noninterestincome:Fees on loans 26 27 -3.7 % 35 -25.7 %

Service charges on 278 247 12.6 % 275 1.1 %deposit accountsGain on sale of - - - - 0.0 % 44 -100.0 %securitiesavailable-for-saleBOLI income 249 250 -0.4 % 280 -11.1 %

Income fromminority 364 - - 100.0 % - - 100.0 %membershipinterestOther fee income 144 161 -10.6 % 136 5.9 %

Total noninterest 1,061 685 54.9 % 770 37.8 %income Noninterestexpense:Salaries and 4,717 4,458 5.8 % 4,344 8.6 %employee benefitsOccupancy and 810 820 -1.2 % 811 -0.1 %equipment expenseData processing 520 551 -5.6 % 538 -3.3 %and networkadministrationState franchise 496 487 1.8 % 466 6.4 %taxesProfessional fees 356 503 -29.2 % 303 17.5 %

Merger and 1,107 - - 100.0 % - - 100.0 %acquisitionexpenseOther operating 1,420 1,409 0.8 % 1,284 10.6 %expenseTotal noninterest 9,426 8,228 14.6 % 7,746 21.7 %expenseNet income before 6,114 6,643 -8.0 % 4,919 24.3 %income taxesIncome tax expense 1,432 1,478 -3.1 % 1,045 37.0 %

Net Income $ 4,682 $ 5,165 -9.4 % $ 3,874 20.9 %

Earnings per share $ 0.34 $ 0.38 -9.6 % $ 0.29 19.0 %- basicEarnings per share $ 0.32 $ 0.36 -9.9 % $ 0.28 14.9 %- dilutedWeighted-averagecommon shares 13,682,727 13,647,193 13,476,639outstanding -basicWeighted-averagecommon shares 14,611,735 14,517,154 13,891,474outstanding -diluted Reconciliation of Net Income(GAAP) to Operating Earnings(Non-GAAP):GAAP net income $ 4,682 $ 5,165 $ 3,874reported aboveAdd: Merger and 1,107 - - - -acquisitionexpenseAdd: Accelerated 380 - - - -debt issuancecostsSubtract:provision forincome taxes (320) - - -associated withnon-GAAPadjustmentsNet Income, 5,849 5,165 3,874Operating earnings $ $ $(non-GAAP)Earnings per share- basic (non-GAAP $ 0.43 $ 0.38 $ 0.29operatingearnings)Earnings per share- diluted 0.40 0.36 0.28(non-GAAP $ $ $operatingearnings) Return on averageassets (non-GAAP 1.14% 1.06% 0.89%operatingearnings)Return on averageequity (non-GAAP 11.46% 10.41% 8.44%operatingearnings)Efficiency ratio(non-GAAP 53.14% 55.33% 53.92%operatingearnings) Reconciliation of Net Income(GAAP) to Pre-Tax Pre-ProvisionIncome (Non-GAAP):GAAP net income $ 4,682 $ 5,165 $ 3,874reported aboveAdd: Provision for - - - - 1,700loan lossesAdd: Merger and 1,107 - - - -acquisitionexpenseAdd: Accelerated 380 - - - -debt issuancecostsAdd: Income tax 1,432 1,478 1,045expensePre-tax 7,601 6,643 6,619pre-provision $ $ $incomeEarnings per share- basic (non-GAAP $ 0.56 $ 0.49 $ 0.49pre-taxpre-provision)Earnings per share- diluted $ 0.52 $ 0.46 $ 0.48(non-GAAP pre-taxpre-provision) Return on averageassets (non-GAAP 1.48% 1.36% 1.51%operatingearnings)Return on averageequity (non-GAAP 14.90% 13.39% 14.43%operatingearnings) FVCBankcorp, Inc.Summary Consolidated Income Statements(In thousands, except per share data)(Unaudited)For the Nine Months Ended% ChangeFrom9/30/20219/30/2020Year AgoNet interest income$42,708

$38,501

10.9

%

Provision for loan losses- -

4,516

-100.0

%

Net interest income after provision for loan losses42,708

33,985

25.7

%

Noninterest income:Fees on loans74

477

-84.5

%

Service charges on deposit accounts768

738

4.1

%

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

141

-100.0

%

Loss on loans held for sale- -

(451)

-100.0

%

BOLI income746

845

-11.7

%

Income from minority membership interest364

- -

100.0

%

Other fee income585

401

45.9

%

Total noninterest income2,537

2,151

17.9

%

Noninterest expense:Salaries and employee benefits13,723

12,354

11.1

%

Occupancy and equipment expense2,437

2,525

-3.5

%

Data processing and network administration1,633

1,466

11.4

%

State franchise taxes1,487

1,398

6.4

%

Professional fees1,213

734

65.3

%

Merger and acquisition expense1,107

- -

100.0

%

Impairment on branch closures- -

676

-100.0

%

Other operating expense3,935

3,800

3.6

%

Total noninterest expense25,535

22,953

11.2

%

Net income before income taxes19,710

13,183

49.5

%

Income tax expense4,294

2,696

59.3

%

Net Income$15,416

$10,487

47.0

%

Earnings per share - basic$1.13

$0.77

46.2

%

Earnings per share - diluted$1.06

$0.74

42.8

%

Weighted-average common shares outstanding - basic13,636,066

13,561,153

Weighted-average common shares outstanding - diluted14,555,113

14,137,053

Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP):GAAP net income reported above$15,416

$10,487

Add: Merger and acquisition expense1,107

- -

Add: Impairment loss- -

676

Add: Accelerated debt issuance costs380

- -

Subtract: provision for income taxes associated with non-GAAP adjustments(320)

(142)

Net Income, Operating earnings (non-GAAP)$16,583

$11,021

Earnings per share - basic (non-GAAP operating earnings)$1.22

$0.81

Earnings per share - diluted (non-GAAP operating earnings)$1.14

$0.78

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

0.88%

Return on average equity (non-GAAP operating earnings)11.13%

8.11%

Efficiency ratio (non-GAAP operating earnings)53.86%

54.80%

Reconciliation of Net Income (GAAP) to Pre-Tax Pre-Provision Income (Non-GAAP):GAAP net income reported above$15,416

$10,487

Add: Merger and acquisition expense1,107

- -

Add: Provision for loan losses- -

4,516

Add: Impairment losses- -

676

Add: Accelerated debt issuance costs380

- -

Add: Income tax expense4,294

2,696

Pre-tax pre-provision income$21,197

$18,375

Earnings per share - basic (non-GAAP pre-tax pre-provision)$1.55

$1.35

Earnings per share - diluted (non-GAAP pre-tax pre-provision)$1.46

$1.30

Return on average assets (non-GAAP operating earnings)1.45%

1.46%

Return on average equity (non-GAAP operating earnings)14.23%

13.53%

FVCBankcorp, Inc.Summary Consolidated Income Statements(In thousands, except per share data)(Unaudited) For the Nine Months Ended % Change From 9/30/2021 9/30/2020 Year Ago Net interest income $ 42,708 $ 38,501 10.9 %

Provision for loan losses - - 4,516 -100.0 %

Net interest income after provision for 42,708 33,985 25.7 %loan losses Noninterest income:Fees on loans 74 477 -84.5 %

Service charges on deposit accounts 768 738 4.1 %

Gain on sale of securities - - 141 -100.0 %available-for-saleLoss on loans held for sale - - (451) -100.0 %

BOLI income 746 845 -11.7 %

Income from minority membership interest 364 - - 100.0 %

Other fee income 585 401 45.9 %

Total noninterest income 2,537 2,151 17.9 %

Noninterest expense:Salaries and employee benefits 13,723 12,354 11.1 %

Occupancy and equipment expense 2,437 2,525 -3.5 %

Data processing and network 1,633 1,466 11.4 %administrationState franchise taxes 1,487 1,398 6.4 %

Professional fees 1,213 734 65.3 %

Merger and acquisition expense 1,107 - - 100.0 %

Impairment on branch closures - - 676 -100.0 %

Other operating expense 3,935 3,800 3.6 %

Total noninterest expense 25,535 22,953 11.2 %

Net income before income taxes 19,710 13,183 49.5 %

Income tax expense 4,294 2,696 59.3 %

Net Income $ 15,416 $ 10,487 47.0 %

Earnings per share - basic $ 1.13 $ 0.77 46.2 %

Earnings per share - diluted $ 1.06 $ 0.74 42.8 %

Weighted-average common shares 13,636,066 13,561,153outstanding - basicWeighted-average common shares 14,555,113 14,137,053outstanding - diluted Reconciliation of Net Income (GAAP) to OperatingEarnings (Non-GAAP):GAAP net income reported above $ 15,416 $ 10,487

Add: Merger and acquisition expense 1,107 - -

Add: Impairment loss - - 676

Add: Accelerated debt issuance costs 380 - -

Subtract: provision for income taxes (320) (142)associated with non-GAAP adjustmentsNet Income, Operating earnings (non-GAAP) $ 16,583 $ 11,021

Earnings per share - basic (non-GAAP $ 1.22 $ 0.81operating earnings)Earnings per share - diluted (non-GAAP $ 1.14 $ 0.78operating earnings) Return on average assets (non-GAAP 1.13% 0.88%operating earnings)Return on average equity (non-GAAP 11.13% 8.11%operating earnings)Efficiency ratio (non-GAAP operating 53.86% 54.80%earnings) Reconciliation of Net Income (GAAP) to Pre-TaxPre-Provision Income (Non-GAAP):GAAP net income reported above $ 15,416 $ 10,487

Add: Merger and acquisition expense 1,107 - -

Add: Provision for loan losses - - 4,516

Add: Impairment losses - - 676

Add: Accelerated debt issuance costs 380 - -

Add: Income tax expense 4,294 2,696

Pre-tax pre-provision income $ 21,197 $ 18,375

Earnings per share - basic (non-GAAP $ 1.55 $ 1.35pre-tax pre-provision)Earnings per share - diluted (non-GAAP $ 1.46 $ 1.30pre-tax pre-provision) Return on average assets (non-GAAP 1.45% 1.46%operating earnings)Return on average equity (non-GAAP 14.23% 13.53%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 Ended9/30/20216/30/20219/30/2020AverageInterestAverageAverageInterestAverageAverageInterestAverageBalanceIncome/ExpenseYieldBalanceIncome/ExpenseYieldBalanceIncome/ExpenseYieldInterest-earning assets:Loans receivable, net of fees (1)Commercial real estate$858,179

$8,902

4.15

%

$796,220

$8,616

4.33

%

$784,990

$9,005

4.59

%

Commercial and industrial141,665

1,617

4.56

%

120,021

1,421

4.74

%

107,716

1,356

5.04

%

Paycheck protection program79,225

1,205

6.08

%

138,550

1,474

4.26

%

170,071

981

2.31

%

Commercial construction211,656

2,641

4.99

%

212,004

2,382

4.49

%

225,711

2,421

4.29

%

Consumer real estate163,901

1,642

4.01

%

164,938

1,633

3.96

%

178,531

1,850

4.15

%

Consumer nonresidential11,529

210

7.29

%

12,810

225

7.04

%

17,834

345

7.72

%

Total loans1,466,155

16,217

4.42

%

1,444,543

15,751

4.36

%

1,484,853

15,958

4.30

%

Investment securities (2)(3)225,519

1,082

1.92

%

178,875

956

2.14

%

119,846

793

2.65

%

Interest-bearing deposits atother financial institutions243,409

89

0.15

%

228,708

71

0.12

%

37,326

16

0.17

%

Total interest-earning assets1,935,083

17,388

3.59

%

1,852,126

16,778

3.62

%

1,642,025

16,767

4.08

%

Non-interest earning assets:Cash and due from banks24,325

15,954

18,769

Premises and equipment, net1,544

1,525

1,816

Accrued interest and otherassets101,963

92,805

99,512

Allowance for loan losses(14,384)

(14,427)

(13,117)

Total Assets$2,048,531

$1,947,983

$1,749,005

Interest-bearing liabilities:Interest checking$616,422

$845

0.54

%

$565,074

$742

0.53

%

$379,218

$659

0.69

%

Savings and money market308,092

344

0.44

%

297,003

351

0.47

%

284,665

386

0.54

%

Time deposits233,539

618

1.05

%

238,113

722

1.22

%

311,615

1,458

1.86

%

Wholesale deposits35,000

41

0.46

%

35,000

39

0.45

%

83,044

187

0.90

%

Total interest-bearing deposits1,193,053

1,848

0.61

%

1,135,190

1,854

0.66

%

1,058,542

2,690

1.01

%

Other borrowed funds25,000

89

1.41

%

25,000

85

1.36

%

27,400

81

1.17

%

Subordinated notes, net ofissuance costs43,889

970

8.77

%

44,127

651

5.92

%

24,534

395

6.40

%

Total interest-bearing liabilities1,261,942

2,907

0.92

%

1,204,317

2,590

0.86

%

1,110,476

3,166

1.13

%

Noninterest-bearing liabilities:Noninterest-bearing deposits555,941

518,826

423,357

Other liabilities26,581

26,374

31,673

Stockholders' equity204,067

198,466

183,499

Total Liabilities and Stockholders' Equity$2,048,531

$1,947,983

$1,749,005

Net Interest Margin14,481

2.97

%

14,188

3.07

%

13,601

3.30

%

FVCBankcorp, Inc.Average Statements of Condition and Yields on Earning Assets andInterest-Bearing Liabilities(Dollars in thousands)(Unaudited) For the Three Months Ended 9/30/2021 6/30/2021 9/30/2020 Average Interest Average Average Interest Average Average Interest Average Balance Income/ Yield Balance Income/ Yield Balance Income/ Yield Expense Expense ExpenseInterest-earning assets:Loans receivable, net offees ^(1)Commercial real estate $ 858,179 $ 8,902 4.15 % $ 796,220 $ 8,616 4.33 % $ 784,990 $ 9,005 4.59 %

Commercial and industrial 141,665 1,617 4.56 % 120,021 1,421 4.74 % 107,716 1,356 5.04 %

Paycheck protection program 79,225 1,205 6.08 % 138,550 1,474 4.26 % 170,071 981 2.31 %

Commercial construction 211,656 2,641 4.99 % 212,004 2,382 4.49 % 225,711 2,421 4.29 %

Consumer real estate 163,901 1,642 4.01 % 164,938 1,633 3.96 % 178,531 1,850 4.15 %

Consumer nonresidential 11,529 210 7.29 % 12,810 225 7.04 % 17,834 345 7.72 %

Total loans 1,466,155 16,217 4.42 % 1,444,543 15,751 4.36 % 1,484,853 15,958 4.30 %

Investment securities^ (2) 225,519 1,082 1.92 % 178,875 956 2.14 % 119,846 793 2.65 %(3)Interest-bearing deposits atother financial institutions 243,409 89 0.15 % 228,708 71 0.12 % 37,326 16 0.17 %

Total interest-earning 1,935,083 17,388 3.59 % 1,852,126 16,778 3.62 % 1,642,025 16,767 4.08 %assets Non-interest earning assets:Cash and due from banks 24,325 15,954 18,769

Premises and equipment, net 1,544 1,525 1,816

Accrued interest and otherassets 101,963 92,805 99,512

Allowance for loan losses (14,384) (14,427) (13,117)

Total Assets $ 2,048,531 $ 1,947,983 $ 1,749,005

Interest-bearingliabilities:Interest checking $ 616,422 $ 845 0.54 % $ 565,074 $ 742 0.53 % $ 379,218 $ 659 0.69 %

Savings and money market 308,092 344 0.44 % 297,003 351 0.47 % 284,665 386 0.54 %

Time deposits 233,539 618 1.05 % 238,113 722 1.22 % 311,615 1,458 1.86 %

Wholesale deposits 35,000 41 0.46 % 35,000 39 0.45 % 83,044 187 0.90 %

Total interest-bearing 1,193,053 1,848 0.61 % 1,135,190 1,854 0.66 % 1,058,542 2,690 1.01 %deposits Other borrowed funds 25,000 89 1.41 % 25,000 85 1.36 % 27,400 81 1.17 %

Subordinated notes, net ofissuance costs 43,889 970 8.77 % 44,127 651 5.92 % 24,534 395 6.40 %

Total interest-bearing 1,261,942 2,907 0.92 % 1,204,317 2,590 0.86 % 1,110,476 3,166 1.13 %liabilities Noninterest-bearingliabilities:Noninterest-bearing deposits 555,941 518,826 423,357

Other liabilities 26,581 26,374 31,673

Stockholders' equity 204,067 198,466 183,499

Total Liabilities and $ 2,048,531 $ 1,947,983 $ 1,749,005Stockholders' Equity Net Interest Margin 14,481 2.97 % 14,188 3.07 % 13,601 3.30 %

(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 September 30, 2021 and 2020 is $2 and $6, respectively.For the three months ended June 30, 2021, the taxable equivalent adjustment to interest income is $2.(3) The average balances for investment securities includes restricted stock.^(1) Non-accrual loans are included in average balances.^(2) The average yields for investment securities are reported on a fullytaxable-equivalent basis at a rate of 21%. The taxable equivalent adjustment tointerest income for the three months ended September 30, 2021 and 2020 is $2and $6, respectively.For the three months ended June 30, 2021, the taxable equivalent adjustment tointerest income is $2.^(3) The average balances for investment securities includes restricted stock.FVCBankcorp, Inc.Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities(Dollars in thousands)(Unaudited)For the Nine Months Ended9/30/20219/30/2020AverageInterestAverageAverageInterestAverageBalanceIncome/ExpenseYieldBalanceIncome/ExpenseYieldInterest-earning assets:Loans receivable, net of fees (1)Commercial real estate$812,623

$25,913

4.25

%

$770,820

$26,387

4.56

%

Commercial and industrial124,460

4,382

4.69

%

107,045

4,214

5.25

%

Paycheck protection program126,310

4,511

4.76

%

97,570

1,782

2.44

%

Commercial construction214,798

7,449

4.62

%

222,844

7,810

4.67

%

Consumer real estate164,678

4,950

4.01

%

180,103

5,995

4.44

%

Consumer nonresidential12,836

694

7.21

%

14,919

833

7.44

%

Total loans1,455,705

47,899

4.39

%

1,393,301

47,021

4.50

%

Investment securities (2)(3)178,148

2,846

2.13

%

130,682

2,616

2.67

%

Loans held for sale, at fair value- -

- -

- -

%

4,583

236

6.86

%

Interest-bearing deposits atother financial institutions218,557

205

0.13

%

43,472

119

0.36

%

Total interest-earning assets1,852,410

50,950

3.67

%

1,572,038

49,992

4.24

%

Non-interest earning assets:Cash and due from banks18,575

17,287

Premises and equipment, net1,559

1,935

Accrued interest and otherassets97,020

94,534

Allowance for loan losses(14,567)

(11,662)

Total Assets$1,954,997

$1,674,132

Interest-bearing liabilities:Interest checking$568,742

$2,304

0.54

%

$331,600

$2,137

0.86

%

Savings and money market294,730

1,019

0.46

%

258,678

1,456

0.75

%

Time deposits239,332

2,257

1.26

%

329,003

5,262

2.14

%

Wholesale deposits38,553

123

0.43

%

111,948

1,172

1.40

%

Total interest-bearing deposits1,141,357

5,703

0.67

%

1,031,229

10,027

1.30

%

Other borrowed funds25,000

257

1.37

%

30,502

261

1.14

%

Subordinated notes, net ofissuance costs44,037

2,272

6.90

%

24,514

1,185

6.46

%

Total interest-bearing liabilities1,210,394

8,232

0.91

%

1,086,245

11,473

1.41

%

Noninterest-bearing liabilities:Noninterest-bearing deposits518,478

376,518

Other liabilities27,516

30,249

Stockholders' equity198,609

181,120

Total Liabilities and Stockholders' Equity$1,954,997

$1,674,132

Net Interest Margin42,718

3.08

%

38,519

3.27

%

FVCBankcorp, Inc.Average Statements of Condition and Yields on Earning Assets andInterest-Bearing Liabilities(Dollars in thousands)(Unaudited) For the Nine Months Ended 9/30/2021 9/30/2020 Average Interest Average Average Interest Average Balance Income/ Yield Balance Income/ Yield Expense ExpenseInterest-earningassets:Loans receivable,net of fees ^(1)Commercial real $ 812,623 $ 25,913 4.25 % $ 770,820 $ 26,387 4.56 %estateCommercial and 124,460 4,382 4.69 % 107,045 4,214 5.25 %industrialPaycheck protection 126,310 4,511 4.76 % 97,570 1,782 2.44 %programCommercial 214,798 7,449 4.62 % 222,844 7,810 4.67 %constructionConsumer real 164,678 4,950 4.01 % 180,103 5,995 4.44 %estateConsumer 12,836 694 7.21 % 14,919 833 7.44 %nonresidentialTotal loans 1,455,705 47,899 4.39 % 1,393,301 47,021 4.50 %

Investment 178,148 2,846 2.13 % 130,682 2,616 2.67 %securities^ (2)(3)Loans held for - - - - - - % 4,583 236 6.86 %sale, at fair valueInterest-bearingdeposits atother financial 218,557 205 0.13 % 43,472 119 0.36 %institutionsTotal 1,852,410 50,950 3.67 % 1,572,038 49,992 4.24 %interest-earningassets Non-interestearning assets:Cash and due from 18,575 17,287banksPremises and 1,559 1,935equipment, netAccrued interestand otherassets 97,020 94,534

Allowance for loan (14,567) (11,662)losses Total Assets $ 1,954,997 $ 1,674,132

Interest-bearingliabilities:Interest checking $ 568,742 $ 2,304 0.54 % $ 331,600 $ 2,137 0.86 %

Savings and money 294,730 1,019 0.46 % 258,678 1,456 0.75 %marketTime deposits 239,332 2,257 1.26 % 329,003 5,262 2.14 %

Wholesale deposits 38,553 123 0.43 % 111,948 1,172 1.40 %

Total 1,141,357 5,703 0.67 % 1,031,229 10,027 1.30 %interest-bearingdeposits Other borrowed 25,000 257 1.37 % 30,502 261 1.14 %fundsSubordinated notes,net ofissuance costs 44,037 2,272 6.90 % 24,514 1,185 6.46 %

Total 1,210,394 8,232 0.91 % 1,086,245 11,473 1.41 %interest-bearingliabilities Noninterest-bearingliabilities:Noninterest-bearing 518,478 376,518depositsOther liabilities 27,516 30,249

Stockholders' 198,609 181,120equity Total Liabilities 1,954,997 1,674,132and Stockholders' $ $Equity Net Interest Margin 42,718 3.08 % 38,519 3.27 %

(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 was $10 and $17 for the nine months ended September 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/20211104006319/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