FVCBankcorp, Inc. Announces Fourth Quarter and Full Year 2025 Earnings; 46% Increase in Net Income Compared to Prior Year

FAIRFAX, Va.--( BUSINESS WIRE)--FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported net income of $5.6 million for the quarter ended December 31, 2025 compared to net income of $4.9 million for the quarter ended December 31, 2024, an increase of $747 thousand, or 15%. Diluted earnings per share were $0.31 for the quarter ended December 31, 2025 compared to $0.26 for the quarter ended December 31, 2024, an increase of 19%.

For the year ended December 31, 2025, the Company reported net income of $22.1 million, or $1.21 diluted earnings per share, an increase of $7.0 million, or 46%, compared to net income of $15.1 million, or $0.82 diluted earnings per share, for the year ended December 31, 2024.

Fourth Quarter Selected Financial Highlights

For the year ended December 31, 2025, the Company reported net income of $22.1 million, or $1.21 diluted earnings per share, compared to $15.1 million, or $0.82 diluted earnings per share, for the year ended December 31, 2024, an increase of $7.0 million, or 46%. During 2025, the Company unwound $80 million of its pay-fixed/receive floating interest rate swaps and the funding associated with that hedge, resulting in a gain of $91 thousand (which was recorded in non-interest income). During 2024, the Company surrendered $48.0 million in bank-owned life insurance (“BOLI”), which resulted in a nonrecurring increase of $2.4 million to the tax provisioning related to the loss of the tax favored status of prior appreciation. Excluding these nonrecurring items, net income for the years ended December 31, 2025 and 2024 was $22.0 million and $17.4 million, respectively, an increase of $4.5 million, or 26%.

The Company considers pre-tax pre-provision operating income a useful comparative financial measure of the Company’s operating performance over multiple periods. Pre-tax pre-provision operating income 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 measure in accordance with GAAP can be found in the tables below.

Management Comments

David W. Pijor, Esq., Chairman and Chief Executive Officer of the Company, said:

“Our 2025 results are indicative of our strategic focus, discipline, and execution, to enhance earnings while we continue to grow our core loan and deposit base. The fourth quarter of 2025 is our third consecutive quarter with annualized return on average assets of 1.00% or better and is our eighth consecutive quarter of net interest margin improvement. Loan growth of 4% for the fourth quarter and year ended December 31, 2025 resulted in continued revenue growth. Since our inception in November 2007, we have always been committed to maintaining and growing a strong financial services company for our employees, clients, shareholders and the communities we serve. We are extremely pleased with our 2025 results and especially proud of our team’s commitment to ongoing excellence.”

Patricia A. Ferrick, President of the Company, said:

“We remain focused on enhancing the customer experience and operating efficiencies to drive growth and profitability. We continue to prioritize our relationship banking strategy to selectively grow loans and deposits. We appreciate the expertise and market experience of our talented relationship managers as they promote our lending and digital banking solutions.”

Statement of Condition

Total assets were $2.29 billion at December 31, 2025 and $2.20 billion at December 31, 2024, an increase of $93.3 million, or 4%. On a linked quarter basis, total assets decreased $26.8 million, or 1%, from $2.32 billion at September 30, 2025 to $2.29 billion at December 31, 2025.

Loans receivable, net of deferred fees, were $1.94 billion at December 31, 2025 and $1.87 billion at December 31, 2024, an increase of $71.0 million, or 4%. For the fourth quarter of 2025, loan originations totaled $154.8 million with a weighted average rate of 7.84%. Loan renewals totaled $96.8 million and had a weighted average rate of 6.87%. Loans that paid off during the fourth quarter of 2025 totaled $85.3 million and had a weighted average rate of 6.47%, and were primarily comprised of commercial real estate and construction loans. Commercial lines of credit increased $44.0 million at December 31, 2025 when compared to September 30, 2025, contributing to net loan growth for the fourth quarter. At December 31, 2025, the Company's warehouse lending facility decreased $20.3 million from September 30, 2025 to end at $30.0 million, with a weighted average yield of 6.08% for the quarter ended December 31, 2025.

Investment securities were $153.4 million at December 31, 2025 and $156.7 million at December 31, 2024. For the year ended December 31, 2025, investment securities decreased due to principal repayments totaling $16.3 million, offset by security purchases totaling $2.9 million and a decrease in the portfolio’s unrealized losses totaling $10.1 million.

Total deposits were $2.00 billion at December 31, 2025 and $1.87 billion at December 31, 2024, an increase of $126.7 million, or 7%. Core deposits, which exclude wholesale deposits, increased $91.6 million, or 6%, for the year ended December 31, 2025. On a linked quarter basis, total deposits increased $19.4 million. Noninterest-bearing deposits decreased slightly by $2.4 million, or 1%, for the year ended December 31, 2025. At December 31, 2025 and December 31, 2024, reciprocal deposits, which are mostly comprised of interest checking and savings accounts, totaled $291.8 million and $269.6 million, respectively, and are considered part of the Company’s core deposit base. Time deposits increased $28.9 million to $271.2 million during 2025. The Company continues to build core deposits at lower interest rates.

At December 31, 2025, wholesale funding totaled $285.0 million, a decrease of $15.0 million, or 5%, from December 31, 2024. At December 31, 2024, wholesale funding included $249.9 million in wholesale deposits and $50.0 million in other borrowed funds (in the form of an advance from the Federal Home Loan Bank of Atlanta ("FHLB")). During the fourth quarter of 2025, when the Company’s FHLB advance matured, the Company replaced this funding with wholesale deposits.

Shareholders’ equity at December 31, 2025 was $253.6 million, an increase of $18.2 million, or 8%, from December 31, 2024. Earnings for the year ended December 31, 2025 contributed $22.1 million to the increase in shareholders’ equity. During 2025, the Company repurchased 572,310 shares of its common stock at a total cost of $6.6 million, decreasing shareholders’ equity. Accumulated other comprehensive loss decreased $3.7 million for the year ended December 31, 2025, and was primarily related to the change in the Company’s other comprehensive income associated with its available-for-sale investment securities portfolio at December 31, 2025.

Tangible book value per share (a non-GAAP financial measure which is defined in the tables below) at December 31, 2025 and December 31, 2024 was $13.74 and $12.52, respectively, an increase of 10%. Tangible book value per share, excluding accumulated other comprehensive loss (a non-GAAP financial measure which is defined in the tables below), at December 31, 2025 and December 31, 2024 was $14.83 and $13.80, respectively.

The Bank was well-capitalized at December 31, 2025, with total risk-based capital ratio of 15.38%, common equity tier 1 risk-based capital ratio of 14.37%, and tier 1 leverage ratio of 12.23%.

Asset Quality

For the three and twelve months ended December 31, 2025, the Company recorded a provision for credit losses totaling $909 thousand and $1.6 million, respectively. The Company recorded no reserves for the three months ended December 31, 2024 and recorded a provision for credit losses of $6 thousand for the year ended December 31, 2024. The increase in provision, particularly during the fourth quarter of 2025, was primarily related to loan growth during the period. At December 31, 2025 and December 31, 2024, the allowance for credit losses (“ACL”) was $18.9 million and $18.1 million, respectively. The ACL to total loans, net of fees, was 0.97% at each of December 31, 2025 and December 31, 2024. The Company generally does not record reserves for the warehouse lending facility it provides to Atlantic Coast Mortgage, LLC ("ACM"). Excluding the warehouse lending facility, the ACL to total loans, net of fees, was 1.00% at December 31, 2025. The Company recorded net recoveries of $5 thousand for the three months ended December 31, 2025 compared to net charge-offs of $937 thousand for the three months ended December 31, 2024. For the year ended December 31, 2025, net charge-offs totaled $871 thousand, or 0.05%, to average loans compared to net charge-offs of $839 thousand, or 0.04%, to average loans for the year ended December 31, 2024. Net charge-offs for the year ended December 31, 2025 were primarily comprised of two unsecured small business loans, and not indicative of a systemic issue with the Company’s loan portfolio credit quality.

The Company proactively assesses the credit risks within its loan portfolio through its established portfolio monitoring programs, working diligently with its customers to minimize losses. At December 31, 2025, the Company’s watch list loans increased to $57.9 million from $15.1 million at September 30, 2025. The increase is primarily comprised of 3 loans which are commercial real estate loans, with collateral in different asset classes, each located in Washington, D.C. One of the loans currently has collateral that is listed for sale, which the Company expects to close prior to the end of the second quarter of 2026. Each of these loans are rated as special mention, as these loans have not yet developed a well-defined weakness but warrant close attention. These loans are well secured with updated valuations at December 31, 2025, and are not individually impaired. The Company believes there will be satisfactory resolution to each of these loans.

Nonperforming loans at December 31, 2025 totaled $10.9 million, or 0.48% of total assets, compared to $12.8 million, or 0.58% of total assets, at December 31, 2024. The decrease in nonperforming loans at December 31, 2025 was due to nonaccrual loan payoffs totaling $1.0 million and a decrease in loans past due over 90 days of $871 thousand at December 31, 2025. Total classified loans decreased $1.0 million to $10.2 million at December 31, 2025 from $11.2 million at December 31, 2024. The Company had no other real estate owned at each of December 31, 2025 and December 31, 2024.

At December 31, 2025, commercial real estate loans totaled $1.03 billion, or 53% of total loans, net of fees, and construction loans totaled $153.0 million, or 8% of total loans, net of fees. Included in commercial real estate loans are loans secured by office properties totaling $149.2 million, or 8% of total loans, which are primarily located in the Virginia and Maryland suburbs of the Company’s market area, with $1.0 million, or 0.05% of total loans, located in Washington, D.C. Loans secured by retail properties totaled $215.5 million, or 12% of total loans, at December 31, 2025, with $8.9 million, or less than 0.46% of total loans, located in Washington, D.C. Loans secured by multi-family properties totaled $179.5 million, or 10% of total loans, at December 31, 2025, with $98.7 million, or 5% of total loans, located in Washington, D.C. The commercial real estate portfolio, including construction loans, is diversified by asset type and geographic concentration.

The Company manages the portfolio in a disciplined manner, and has comprehensive policies to monitor, measure, and mitigate its loan concentrations within its commercial real estate portfolio segment, including rigorous credit approval, monitoring and administrative practices. The following table provides further stratification of these and additional classes of real estate loans at December 31, 2025 (dollars in thousands).

Owner Occupied Commercial Real Estate (2)

Non-Owner Occupied Commercial Real Estate (2)

Construction

Asset Class

Average Loan-to-Value (1)

Number of Total Loans

Bank Owned Principal

Average Loan-to-Value (1)

Number of Total Loans

Bank Owned Principal

Top 3 Market Areas

Number of Total Loans

Bank Owned Principal

Total Bank Owned Principal

% of Total Loans

Office, Class A

67%

40,532

17%

2,894

Counties of Fairfax and Loudoun, VA and Montgomery County, MD

—

43,426

Office, Class B

49%

8,232

44%

44,776

—

53,008

Office, Class C

46%

5,081

30%

7,568

942

13,591

Office, Medical

33%

971

43%

24,616

13,583

39,170

Subtotal

54,816

79,854

14,525

149,195

Retail-Neighborhood/Community Shop

—

43%

91,965

Counties of Prince George's and Baltimore, MD and Fairfax County, VA

—

91,965

Retail- Restaurant

53%

4,331

40%

20,446

—

24,777

Retail- Single Tenant

54%

1,823

42%

27,143

—

28,966

Retail- Anchored,Other

—

51%

33,359

—

33,359

Retail- Grocery-anchored

—

40%

36,446

—

36,446

Subtotal

6,154

209,359

—

215,513

11%

Multi-family, Class A

—

30%

1,425

Washington, D.C., Baltimore City, MD and Richmond City, VA

33,087

34,512

Multi-family, Class B

—

61%

63,092

—

63,092

Multi-family, Class C

—

53%

71,598

982

71,598

Multi-Family-Affordable Housing

—

36%

9,321

—

9,321

Subtotal

—

145,436

34,069

178,523

Industrial

47%

124,217

53%

114,780

Counties of Prince William and Fairfax, VA and Howard County, MD

—

238,997

Warehouse

50%

6,951

27%

8,907

—

15,858

Flex

49%

10,350

52%

54,939

—

65,289

Subtotal

141,518

178,626

—

320,144

16%

Hotels

—

40%

35,383

7,635

43,018

Mixed Use

44%

6,719

59%

44,965

—

51,684

Land

1,680

605

33,572

35,857

1-4 Family construction

—

48,406

Other (including net deferred fees)

55,430

72,104

14,799

142,333

Total commercial real estate and construction loans, net of fees, at December 31, 2025

266,317

766,332

153,006

1,184,673

61%

At December 31, 2024

188,182

850,125

162,367

1,200,674

64%

(1) Loan-to-value is determined at origination date against current bank-owned principal.

(2) Minimum debt service coverage policy is 1.30x for owner occupied and 1.25x for non-owner occupied at origination.

The loans shown in the above table exhibit strong credit quality, with one nonaccrual loan at December 31, 2025 totaling $10.1 million. During its assessment of the ACL, the Company addressed the credit risks associated with these portfolio segments and believes that as a result of its conservative underwriting discipline at loan origination and its ongoing loan monitoring procedures, the Company has appropriately reserved for possible credit concerns in the event of a downturn in economic activity.

Minority Investment in Mortgage Banking Operation

For the three and twelve months ended December 31, 2025, the Company recorded income of $247 thousand and $1.2 million, respectively, compared to a loss of $49 thousand and income of $352 thousand, respectively, for the three and twelve months ended December 31, 2024, related to its investment in ACM. The increase in earnings at ACM is a direct result of continued success in executing their strategic growth and geographic diversification initiatives, resulting in a 19% increase in loan originations for the year ended December 31, 2025 compared to the year ended December 31, 2024.

During the fourth quarter of 2025, ACM announced its acquisition of Tidewater Mortgage Services, Inc. ("TMS"), a Coastal Virginia based mortgage lender serving the Mid‑Atlantic and Southeast. The transaction combines ACM's innovative, client-focused lending model and broad product suite with TMS's strong reputation for excellent customer service and community engagement. The acquisition had minimal impact to earnings for the fourth quarter of 2025 and is expected to be immediately accretive in 2026.

The Company’s investment in ACM is reflected as a nonconsolidated minority investment, and as such, the Company’s income generated from the investment is included in non-interest income.

Income Statement

The Company recorded net income of $5.6 million for the three months ended December 31, 2025 compared to net income of $4.9 million for the three months ended December 31, 2024, an increase of $747 thousand, or 15%. Compared to the linked quarter, net income for the three months ended December 31, 2025 increased $68 thousand, or 1%, from $5.6 million for the three months ended September 30, 2025.

Net interest income increased $2.0 million, or 13%, to $16.9 million for the quarter ended December 31, 2025, compared to $14.9 million for the same period of 2024, and increased $892 thousand, or 6%, compared to the linked quarter ended September 30, 2025. The increase in net interest income for the fourth quarter of 2025 compared to the year ago quarter was primarily due to an increase in interest income from both increased yields on and level of average earnings assets. Additionally, interest expense decreased during the fourth quarter of 2025 compared to the year ago quarter as deposits continue to reprice to lower interest rates. On a linked quarter basis, net interest income increased primarily as a result of an increase interest income from average loans outstanding for the fourth quarter of 2025.

The Company's net interest margin increased 28 basis points to 3.05% for the quarter ended December 31, 2025 compared to 2.77% for the quarter ended December 31, 2024, and increased 14 basis points from 2.91% for the linked quarter ended September 30, 2025. The increase in net interest margin is a result of improved yields on earning assets, primarily from the loan portfolio, in addition to continued improvement in the cost of funding sources. Yields on loans increased 13 basis points to 6.00% for the quarter ended December 31, 2025 as compared to the quarter ended December 31, 2024, and increased 10 basis points from the linked quarter ended September 30, 2025. Cost of funds decreased to 2.74% for the quarter ended December 31, 2025, from 2.78% for the quarter ended September 30, 2025, and from 2.96% for the year ago quarter ended December 31, 2024. The decrease in the cost of funds during the quarter and year ended December 31, 2025 is a direct result of the Company decreasing its deposit costs concurrently with the Federal Reserve’s decrease in its targeted short term interest rate during 2025.

Compared to the year ago quarter, interest income increased $1.3 million, or 4%, to $30.6 million, for the fourth quarter of 2025, and increased $755 thousand, or 3%, compared to the linked quarter ended September 30, 2025. Loan interest income increased $829 thousand, or 3%, to $28.3 million for the three months ended December 31, 2025, compared to $27.5 million for the three months ended December 31, 2024, primarily as a result of an increase in the average yield on loans as the Company originates loans with higher interest rates and continues to reduce low yielding loans as they mature. The yield on earning assets increased 8 basis points to 5.55% for the three months ended December 31, 2025 when compared to the same period of 2024, and increased 9 basis points compared to the linked quarter ended September 30, 2025, a result of loans repricing upwards as compared to the prior and year ago quarters.

The Company anticipates continued increase in loan yields due to scheduled loan repricings. Within 12 months of December 31, 2025, $112.1 million in fixed rate commercial loans with a weighted average rate of 5.07% and $26.2 million in variable rate commercial loans with a weighted average rate of 4.86% are expected to reprice. Within the following 24-36 months of December 31, 2025, $327.1 million in fixed rate commercial loans with a weighted average rate of 5.86% and an additional $131.8 million in variable rate commercial loans with a weighted average rate of 5.32% are scheduled to reprice. In the near-term, the Company’s efforts to attain appropriate yields on new originations and the repricing of the commercial loan portfolio are expected to provide continued improvement in loan yields.

Interest expense decreased $708 thousand, or 5%, to $13.7 million, for the quarter ended December 31, 2025, compared to $14.4 million for the quarter ended December 31, 2024, which is primarily attributable to the decrease in deposit costs, all while growing core deposits 6% since the 2024 year end. Interest expense on deposits decreased $366 thousand to $13.2 million for the three months ended December 31, 2025, compared to $13.6 million for the three months ended December 31, 2024, as average interest-bearing total deposits increased $85.9 million for the three months ended December 31, 2025 when compared to the year ago quarter. On a linked quarter basis, interest expense decreased $135 thousand, or 1%, compared to the quarter ended September 30, 2025, primarily due to the strong deposit growth during the fourth quarter. The cost of deposits (which includes noninterest-bearing deposits) for the fourth quarter ended December 31, 2025 was 2.68%, a decrease of 23 basis points from the year ago quarter ended December 31, 2024, and a decrease of 5 basis points compared to the linked quarter ended September 30, 2025, demonstrating the Company's ability to grow its customer base while reducing deposit costs.

Net interest income for the year ended December 31, 2025 and 2024 was $63.8 million and $55.6 million, respectively, an increase of $8.2 million, or 15%, year-over-year. Interest income increased $5.1 million, or 4%, to $118.4 million for the year ended December 31, 2025 compared to $113.3 million for the comparable 2024 period. Interest expense totaled $54.6 million for the year ended December 31, 2025, a decrease of $3.1 million, or 5%, compared to $57.7 million for the year ended December 31, 2024. The Company’s net interest margin for the year ended December 31, 2025 was 2.92% compared to 2.62% for the year ended December 31, 2024, an increase of 30 basis points, or 11%.

Noninterest income for the three months ended December 31, 2025 and 2024 totaled $926 thousand and $452 thousand, respectively, an increase of $474 thousand. Noninterest income for the three months ended December 31, 2025 included a nonrecurring loss totaling $62 thousand from the termination of derivative contracts. Noninterest income for the three months ended December 31, 2025 decreased $107 thousand, or 10%, compared to $1.0 million for the three months ended September 30, 2025.

Fee income from loans was $76 thousand for the quarter ended December 31, 2025, compared to $43 thousand for the fourth quarter of 2024. Service charges on deposit accounts totaled $376 thousand for the fourth quarter of 2025, an increase of $91 thousand, or 32%, compared to $285 thousand for the year ago quarter, and increased $55 thousand, or 17%, compared to $321 thousand for the linked quarter ended September 30, 2025. Income from BOLI increased to $74 thousand for the three months ended December 31, 2025, compared to $71 thousand for the same period of 2024. Income from the minority interest in ACM for the quarter ended December 31, 2025 was $247 thousand, an increase of $296 thousand from a loss of $49 thousand for the year ago quarter ended December 31, 2024, and decreased $261 thousand compared to the linked quarter ended September 30, 2025.

For the year ended December 31, 2025, the Company recorded noninterest income totaling $3.6 million, an increase of $1.1 million, or 44%, compared to $2.5 million for the year ended December 31, 2024. Fee income from loans was $220 thousand for the year ended December 31, 2025, compared to $185 thousand for the year ended December 31, 2024, an increase of $35 thousand, or 19%. Service charges on deposit accounts totaled $1.2 million for the year ended December 31, 2025, an increase of $122 thousand, or 11%, compared to $1.1 million for the year ended December 31, 2024. Income from BOLI decreased to $289 thousand for the year ended December 31, 2025, compared to $397 thousand for the year ended December 31, 2024, a direct result of the BOLI surrendered during 2024. Income from the Company's minority interest in ACM increased to $1.2 million for the year ended December 31, 2025, compared to $352 thousand for the same period of 2024. Lastly, the Company recorded a gain from the termination of derivative instruments totaling $91 thousand during 2025. No comparable gain was recorded during 2024.

Noninterest expense totaled $9.5 million for the quarter ended December 31, 2025, an increase of $535 thousand, or 6%, compared to $9.0 million for the year ago quarter ended December 31, 2024. On a linked quarter basis, noninterest expense increased $65 thousand, or 0.7%, from $9.5 million for the three months ended September 30, 2025. Compared to the year ago quarter, salaries and benefits expense increased $513 thousand, or 11%, for the three months ended December 31, 2025, and increased $77 thousand, or 2%, compared to the linked quarter ended September 30, 2025. The increase in salaries and benefits expense for the fourth quarter of 2025 as compared to both the year ago and linked quarters is primarily a result of an increase in incentive accruals for the fourth quarter of 2025 along with the filling of open positions that were vacant in the previous periods. Full-time equivalent employees have increased from 112 at December 31, 2024, and 118 at September 30, 2025, to 122 at December 31, 2025.

Data processing and network administration expense decreased $181 thousand to $509 thousand for the three months ended December 31, 2025 compared to the same period of 2024, primarily as a result of contract renewals with certain service providers for the Bank. All other operating expenses have remained fairly constant or minimally unchanged for the three months ended December 31, 2025 as compared to the year ago and linked quarters. The Company continues to identify and assess opportunities to reduce operating expenses.

For the year ended December 31, 2025 and 2024, noninterest expense was $37.6 million and $35.8 million, respectively, an increase of $1.8 million, or less than 5%, primarily as a result of the aforementioned increases in salaries and benefits expenses. Internet banking and software expense increased $461 thousand, or 15%, to $3.5 million for the year ended December 31, 2025 compared to the year ended December 31, 2024, primarily as a result of the implementation of enhanced customer software, including comprehensive online banking solutions. Data processing and network administration expense decreased $483 thousand, or 18%, to $2.2 million for the year ended December 31, 2025 compared to the same period of 2024, primarily as a result of contract renewals with certain service providers for the Bank.

The efficiency ratio for the quarters ended December 31, 2025, September 30, 2025, and December 31, 2024, was 53.4%, 55.5%, and 58.6%, respectively. For the years ended December 31, 2025 and 2024, the efficiency ratio was 55.7% and 61.6%, respectively. A reconciliation of the aforementioned efficiency ratios, a non-GAAP financial measure, can be found in the tables below.

The Company recorded a provision for income taxes of $1.8 million and $1.5 million for the three months ended December 31, 2025 and 2024, respectively. For the years ended December 31, 2025 and 2024, the provision for income taxes was $6.2 million and $7.2 million, respectively. The 2024 period included an additional $2.4 million which was associated with the Company’s surrender of BOLI policies in the first quarter of 2024.

About FVCBankcorp, Inc.

FVCBankcorp, Inc. is the holding company for FVCbank, a wholly-owned subsidiary that commenced operations in November 2007. FVCbank is a $2.29 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 8 full-service offices in Arlington, Fairfax, Manassas, Reston and Springfield, Virginia, Washington, D.C., and Baltimore, and Bethesda, Maryland.

For more information about the Company, please visit the Investor Relations page of FVCBankcorp, Inc.’s website, www.fvcbank.com.

Cautionary Note About Forward-Looking Statements

This press release may contain statements relating to future events or future results of the Company that are considered “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. The following factors, among others, could cause our financial performance to differ materially from that expressed in such forward-looking statements: general business and economic conditions, including higher inflation and its impacts, nationally or in the markets that we serve could adversely affect, among other things, real estate valuations, unemployment levels, the ability of businesses to remain viable, consumer and business confidence, and consumer or business spending, which could lead to decreases in demand for loans, deposits, and other financial services that we provide and increases in loan delinquencies and defaults; the concentration of our business in and around the Washington, D.C. metropolitan area and the effects of changes in the economic, political, and environmental conditions on this market, including potential reductions in spending by the U.S. government and related reductions in the federal workforce; the impact of the interest rate environment on our business, financial condition and results of operation, and its impact on the composition and costs of deposits, loan demand, and the values and liquidity of loan collateral, securities, and interest sensitive assets and liabilities; changes in our liquidity requirements could be adversely affected by changes in our assets and liabilities; changes in the assumptions underlying the establishment of reserves for possible credit losses and the possibility that future credit losses may be higher than currently expected; the management of risks inherent in our real estate loan portfolio, and the risk of a prolonged downturn in the real estate market, which could impair the value of loan collateral and the ability to sell collateral upon any foreclosure; changes in market conditions, specifically declines in the commercial and residential real estate market, volatility and disruption of the capital and credit markets, and soundness of other financial institutions that we do business with; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetary fluctuations; our investment securities portfolio is subject to credit risk, market risk, and liquidity risk as well as changes in the estimates used to value the securities in the portfolio; declines in our common stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause us to record a noncash impairment charge to earnings in future periods; potential exposure to fraud, negligence, computer theft and cyber-crime, and our ability to maintain the security of our data processing and information technology systems; the impact of changes in bank regulatory conditions, including laws, regulations and policies concerning capital requirements, deposit insurance premiums, taxes, securities, and the application thereof by regulatory bodies; the effect of changes in accounting policies and practices, as may be adopted from time to time by bank regulatory agencies, the Securities and Exchange Commission (the “SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setting bodies; competitive pressures among financial services companies, including the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; the effect of acquisitions and partnerships we may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions; our involvement, from time to time, in legal proceedings and examination and remedial actions by regulators; geopolitical conditions, including trade restrictions and tariffs, and acts or threats of terrorism, or actions taken by the United States or other governments in response to trade restrictions and tariffs, and acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; and the occurrence of significant natural disasters, including severe weather conditions, floods, health related issues or emergencies, and other catastrophic events. The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, including those discussed in the section entitled “Risk Factors,” and in the Company’s other periodic and current reports filed with the SEC. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on our forward-looking information and statements. We will not update the forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict their occurrence or how they will affect the Company’s operations, financial condition or results of operations.

FVCBankcorp, Inc.

Selected Financial Data

(Dollars in thousands, except share and per share data)

(Unaudited)

At or For the Three Months Ended,

For the Year Ended,

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Selected Balances

Total assets

2,292,256

2,198,950

Total investment securities

158,870

164,926

Total loans, net of deferred fees

1,941,283

1,870,235

Allowance for credit losses on loans

(18,886

)

(18,129

)

Total deposits

1,997,277

1,870,605

Subordinated debt

18,750

18,695

Other borrowings

—

50,000

Reserve for unfunded commitments

471

510

Total shareholders' equity

253,600

235,354

Summary Results of Operations

Interest income

30,583

29,281

118,397

113,313

Interest expense

13,658

14,368

54,628

57,723

Net interest income

16,925

14,913

63,769

55,589

Provision for credit losses

909

—

1,589

Net interest income after provision for credit losses

16,016

14,913

62,180

55,583

Noninterest income - loan fees, service charges and other

667

422

2,010

1,752

Noninterest income - bank owned life insurance

289

397

Noninterest income gain (loss) on minority membership interest

247

(49

)

1,247

376

Noninterest gain on redemption of subordinated debt

—

Noninterest income - gain (loss) on termination of derivative instruments

(62

)

—

Noninterest expense

9,537

9,002

37,570

35,820

Income before taxes

7,405

6,363

28,248

22,297

Income tax expense

1,758

1,463

6,190

7,233

Net income

5,647

4,900

22,057

15,064

Per Share Data

Net income, basic

0.31

0.27

1.22

0.83

Net income, diluted

0.31

0.26

1.21

0.82

Book value

14.15

12.93

Tangible book value (1)

13.74

12.52

Tangible book value, excluding accumulated other comprehensive losses (1)

14.83

13.80

Shares outstanding

17,917,504

18,204,455

Selected Ratios

Net interest margin (2)

3.05

2.77

2.92

2.62

Return on average assets (2)

1.00

0.90

0.99

0.69

Return on average equity (2)

8.94

8.37

8.99

6.64

Efficiency (3)

53.43

58.58

55.74

61.63

Loans, net of deferred fees to total deposits

97.20

99.98

Noninterest-bearing deposits to total deposits

18.19

19.55

Reconciliation of Net Income (GAAP) to Core Operating Earnings (Non-GAAP) (4)

GAAP net income reported above

5,647

4,900

22,057

15,064

(Gain) loss on termination of derivative instruments

—

(91

)

—

Gain on redemption of subordinated debt

—

)

—

)

Non-recurring tax and 10% modified endowment contract penalty on early surrender of BOLI policies

—

2,386

Income tax (benefit) expense associated with non-GAAP adjustments

(14

)

—

Adjusted Net Income, core operating earnings (non-GAAP)

5,695

4,891

21,986

17,441

Adjusted Earnings per share - basic (non-GAAP core operating earnings)

0.32

0.27

1.21

0.97

Adjusted Earnings per share - diluted (non-GAAP core operating earnings)

0.31

0.26

1.20

0.95

Adjusted Return on average assets (non-GAAP core operating earnings) (2)

1.01

0.90

0.99

0.80

Adjusted Return on average equity (non-GAAP core operating earnings) (2)

9.02

8.36

8.96

7.69

Adjusted Efficiency ratio (non-GAAP core operating earnings) (3)

53.24

58.62

55.81

61.63

Capital Ratios - Bank

Tangible common equity (to tangible assets)

11.38

10.87

Total risk-based capital (to risk weighted assets)

15.38

14.73

Common equity tier 1 capital (to risk weighted assets)

14.37

13.74

Tier 1 leverage (to average assets)

12.23

11.74

Asset Quality

Nonperforming loans

10,926

12,823

Nonperforming loans to total assets

0.48

0.58

Nonperforming assets to total assets

0.48

0.58

Allowance for credit losses on loans

0.97

Allowance for credit losses to nonperforming loans

172.86

141.38

Net charge-offs (recoveries)

)

937

871

839

Net charge-offs (recoveries) to average loans (2)

—

0.20

0.05

0.04

Selected Average Balances

Total assets

2,253,977

2,185,879

2,231,297

2,175,987

Total earning assets

2,202,453

2,139,505

2,181,291

2,122,236

Total loans, net of deferred fees

1,890,939

1,875,328

1,862,377

1,869,470

Total deposits

1,953,693

1,851,402

1,905,024

1,823,247

Other Data

Noninterest-bearing deposits

363,228

365,666

Interest-bearing checking, savings and money market

1,072,082

1,006,898

Time deposits

277,010

248,154

Wholesale deposits

284,957

249,887

(1) Non-GAAP Reconciliation

Total shareholders’ equity

253,600

235,354

Goodwill and intangibles, net

(7,295

)

(7,420

)

Tangible Common Equity (non-GAAP)

246,305

227,934

Accumulated Other Comprehensive Loss ("AOCI")

(19,581

)

(23,266

)

Tangible Common Equity excluding AOCI (non-GAAP)

265,886

251,200

Book value per common share

14.15

12.93

Intangible book value per common share

(0.41

)

(0.41

)

Tangible book value per common share (non-GAAP)

13.74

12.52

AOCI (loss) per common share

(1.09

)

(1.28

)

Tangible book value per common share, excluding AOCI (non-GAAP)

14.83

13.80

(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, condition, or statements of cash flows.

FVCBankcorp, Inc.

Summary Consolidated Statements of Condition

(Dollars in thousands)

(Unaudited)

December 31, 2025

September 30, 2025

% Change Current Quarter

December 31, 2024

% Change From Year Ago

Cash and due from banks

5,684

14,917

(61.9

8,161

(30.4

Interest-bearing deposits at other financial institutions

121,947

214,007

(43.0

82,789

47.3

Investment securities

153,424

157,165

(2.4

156,740

(2.1

Restricted stock, at cost

5,446

7,774

(29.9

8,186

(33.5

Loans, net of fees:

Commercial real estate

1,032,649

994,552

3.8

1,038,307

(0.5

Commercial and industrial

423,360

335,813

26.1

314,274

34.7

Commercial construction

153,006

170,252

(10.1

162,367

(5.8

Consumer real estate

297,018

301,993

(1.6

325,313

(8.7

Warehouse facilities

30,033

50,336

(40.3

22,388

34.1

Consumer nonresidential

5,217

5,476

(4.7

7,586

(31.2

Total loans, net of fees

1,941,283

1,858,422

4.5

1,870,235

3.8

Allowance for credit losses on loans

(18,886

)

(17,943

)

5.3

(18,129

)

4.2

Loans, net

1,922,397

1,840,479

4.5

1,852,106

3.8

Premises and equipment, net

693

723

(4.1

858

(19.2

Goodwill and intangibles, net

7,295

7,322

(0.4

7,420

(1.7

Bank owned life insurance (BOLI)

9,508

9,434

0.8

9,219

3.1

Other assets

65,862

67,231

(2.0

73,471

(10.4

Total Assets

2,292,256

2,319,052

(1.2

2,198,950

4.2

Deposits:

Noninterest-bearing

363,228

374,414

(3.0

365,666

(0.7

Interest checking

741,034

803,291

(7.8

623,811

18.8

Savings and money market

331,048

291,391

13.6

383,087

(13.6

Time deposits

277,010

273,837

1.2

248,154

11.6

Wholesale deposits

284,957

234,949

21.3

249,887

14.0

Total deposits

1,997,277

1,977,882

1.0

1,870,605

6.8

Other borrowed funds

—

50,000

(100.0

50,000

(100.0

Subordinated notes, net of issuance costs

18,750

18,737

0.1

18,695

0.3

Reserve for unfunded commitments

471

502

(6.2

510

(7.6

Other liabilities

22,158

22,127

0.1

23,786

(6.8

Shareholders’ equity

253,600

249,804

1.5

235,354

7.8

Total Liabilities & Shareholders' Equity

2,292,256

2,319,052

(1.2

2,198,950

4.2

FVCBankcorp, Inc.

Summary Consolidated Statements of Income

(Dollars in thousands, except share and per share data)

(Unaudited)

For the Three Months Ended

December 31, 2025

September 30, 2025

% Change Current Quarter

December 31, 2024

% Change From Year Ago

Net interest income

16,925

16,033

5.6

14,913

13.5

Provision for credit losses

909

375

142.4

—

Net interest income after provision for credit losses

16,016

15,658

2.3

14,913

7.4

Noninterest income:

Fees on loans

117.1

76.7

Service charges on deposit accounts

376

321

17.1

285

31.9

BOLI income

1.4

4.2

Income from minority membership interests

247

508

51.4

(49

)

604.1

Gain on redemption of sub debt

—

(100.0

Loss on termination of derivative instruments

(62

)

—

Other fee income

215

124.0

131.2

Total noninterest income

926

1,033

(10.4

452

104.9

Noninterest expense:

Salaries and employee benefits

5,192

5,115

1.5

4,679

11.0

Occupancy expense

520

—

525

(1.0

Internet banking and software expense

871

890

(2.1

860

1.3

Data processing and network administration

509

559

(8.9

690

(26.2

State franchise taxes

583

—

589

(1.0

Professional fees

283

294

(3.7

233

21.5

Other operating expense

1,579

1,511

4.5

1,426

10.8

Total noninterest expense

9,537

9,472

0.7

9,002

5.9

Net income before income taxes

7,405

7,219

2.6

6,363

16.4

Income tax expense

1,758

1,640

7.2

1,463

20.2

Net Income

5,647

5,579

1.2

4,900

15.3

Earnings per share - basic

0.31

0.3

0.27

14.8

Earnings per share - diluted

0.31

1.0

0.26

19.2

Weighted-average common shares outstanding - basic

18,008,781

18,049,623

(0.2

18,204,455

(1.1

Weighted-average common shares outstanding - diluted

18,138,550

18,179,295

(0.2

18,493,616

(1.9

Reconciliation of Net Income (GAAP) to Core Operating Earnings (Non-GAAP):

GAAP net income reported above

5,647

5,579

4,900

Loss on termination of derivative instruments

—

Gain on the redemption of subordinated debt

—

)

Income tax benefit associated with non-GAAP adjustments

(14

)

—

Adjusted Net Income, core operating earnings (non-GAAP)

5,696

5,579

4,891

Adjusted Earnings per share - basic (non-GAAP core operating earnings)

0.32

0.31

0.27

Adjusted Earnings per share - diluted (non-GAAP core operating earnings)

0.31

0.26

Adjusted Return on average assets (non-GAAP core operating earnings) (2)

1.01

1.00

0.90

Adjusted Return on average equity (non-GAAP core operating earnings) (2)

9.02

9.05

8.36

Adjusted Efficiency ratio (non-GAAP core operating earnings) (3)

53.24

55.50

58.62

Reconciliation of Net Income (GAAP) to Pre-Tax Pre-Provision Income (Non-GAAP):

GAAP net income reported above

5,647

5,579

4,900

Provision for credit losses

909

375

—

Loss on termination of derivative instruments

—

Gain on redemption of subordinated debt

—

)

Income tax expense

1,758

1,640

1,463

Adjusted Pre-tax pre-provision income

8,376

7,594

6,354

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

0.47

0.42

0.35

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

0.46

0.42

0.34

Adjusted Return on average assets (non-GAAP pre-tax pre-provision) (2)

1.49

1.36

1.16

Adjusted Return on average equity (non-GAAP pre-tax pre-provision) (2)

13.26

12.32

10.85

FVCBankcorp, Inc.

Summary Consolidated Statements of Income

(Dollars in thousands, except share and per share data)

(Unaudited)

For the Year Ended

December 31, 2025

December 31, 2024

% Change

Net interest income

63,769

55,589

14.7

Provision for credit losses

1,589

26383.3

Net interest income after provision for credit losses

62,180

55,583

11.9

Noninterest income:

Fees on loans

220

185

18.9

Service charges on deposit accounts

1,248

1,126

10.8

BOLI income

289

397

(27.2

Income from minority membership interests

1,247

376

231.6

Gain on redemption of sub debt

—

(100.0

Gain on termination of derivative instruments

—

Other fee income

542

450

20.4

Total noninterest income

3,637

2,534

43.5

Noninterest expense:

Salaries and employee benefits

20,125

18,752

7.3

Occupancy expense

2,108

2,027

4.0

Internet banking and software expense

3,451

2,990

15.4

Data processing and network administration

2,236

2,719

(17.8

State franchise taxes

2,344

2,358

(0.6

Professional fees

1,147

927

23.7

Other operating expense

6,159

6,047

1.9

Total noninterest expense

37,570

35,820

4.9

Net income before income taxes

28,247

22,297

26.7

Income tax expense

6,190

7,233

(14.4

Net Income

22,057

15,064

46.4

Earnings per share - basic

1.22

0.83

47.0

Earnings per share - diluted

1.21

0.82

47.6

Weighted-average common shares outstanding - basic

18,120,790

18,057,202

0.4

Weighted-average common shares outstanding - diluted

18,260,212

18,396,533

(0.7

Reconciliation of Net Income (GAAP) to Core Operating Earnings (Non-GAAP):

GAAP net income reported above

22,057

15,064

Gain on termination of derivative instruments

(91

)

—

Gain on redemption of subordinated debt

—

)

Non-recurring tax and 10% modified endowment contract penalty on early surrender of BOLI policies

—

2,386

Provision for income taxes associated with non-GAAP adjustments

—

Adjusted Net Income, core bank operating earnings (non-GAAP)

21,987

17,441

Adjusted Earnings per share - basic (non-GAAP core operating earnings)

1.21

0.97

Adjusted Earnings per share - diluted (non-GAAP core operating earnings)

1.20

0.95

Adjusted Return on average assets (non-GAAP core operating earnings)

0.99

0.80

Adjusted Return on average equity (non-GAAP core operating earnings)

8.96

7.69

Adjusted Efficiency ratio (non-GAAP core operating earnings)

55.81

61.63

Reconciliation of Net Income (GAAP) to Pre-Tax Pre-Provision Income (Non-GAAP):

GAAP net income reported above

22,057

15,064

Provision for credit losses

1,589

Gain on termination derivative instruments

(91

)

—

Gain on redemption of subordinated debt

—

)

Non-recurring tax and 10% modified endowment contract penalty on early surrender of BOLI policies

—

2,386

Income tax expense

6,190

4,847

Adjusted Pre-tax pre-provision income

29,745

22,294

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

1.64

1.23

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

1.63

1.21

Adjusted Return on average assets (non-GAAP pre-tax pre-provision)

1.33

1.02

Adjusted Return on average equity (non-GAAP pre-tax pre-provision)

12.12

9.83

FVCBankcorp, Inc.

Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities

(Dollars in thousands)

(Unaudited)

For the Three Months Ended

12/31/2025

9/30/2025

12/31/2024

Average Balance

Interest Income/Expense

Average Yield

Average Balance

Interest Income/Expense

Average Yield

Average Balance

Interest Income/Expense

Average Yield

Interest-earning assets:

Loans receivable, net of fees (1)

Commercial real estate

1,012,184

13,902

5.49

965,153

12,425

5.15

1,050,985

13,792

5.25

Commercial and industrial

384,873

7,674

7.98

340,510

6,906

8.11

300,781

6,157

8.19

Commercial construction

160,773

2,658

6.61

177,620

3,310

7.45

176,973

3,200

7.23

Consumer real estate

297,956

3,541

4.75

301,687

3,618

4.80

327,164

4,012

4.91

Warehouse facilities

29,828

453

6.08

39,104

617

6.31

13,010

224

6.89

Consumer nonresidential

5,325

117

8.79

5,513

108

7.83

6,415

131

8.17

Total loans

1,890,939

28,345

6.00

1,829,587

26,984

5.90

1,875,328

27,516

5.87

Investment securities (2)

188,324

1,000

2.12

193,262

1,026

2.12

202,060

1,046

2.07

Interest-bearing deposits at other financial institutions

123,190

1,238

3.98

163,878

1,817

4.40

62,117

719

4.60

Total interest-earning assets

2,202,453

30,583

5.55

2,186,727

29,827

5.46

2,139,505

29,281

5.47

Non-interest earning assets:

Cash and due from banks

12,250

14,265

8,938

Premises and equipment, net

711

755

875

Accrued interest and other assets

56,698

55,379

55,380

Allowance for credit losses

(18,135

)

(17,988

)

(18,819

)

Total Assets

2,253,977

2,239,138

2,185,879

Interest-bearing liabilities:

Interest checking

764,430

5,987

3.11

702,037

5,496

3.11

615,456

5,310

3.43

Savings and money market

316,175

2,450

3.07

321,399

2,755

3.40

378,847

3,313

3.48

Time deposits

262,852

2,599

3.92

277,760

2,783

3.97

249,650

2,740

4.37

Wholesale deposits

236,247

2,169

3.64

234,925

2,037

3.44

249,870

2,209

3.52

Total interest-bearing deposits

1,579,704

13,205

3.32

1,536,121

13,071

3.38

1,493,823

13,572

3.61

Other borrowed funds

7,103

3.07

50,011

478

3.78

55,429

542

3.88

Subordinated notes, net of issuance costs

18,741

398

8.43

18,728

245

5.20

19,531

254

5.18

Total interest-bearing liabilities

1,605,548

13,658

3.38

1,604,860

13,794

3.41

1,568,783

14,368

3.64

Noninterest-bearing liabilities:

Noninterest-bearing deposits

373,989

364,614

357,579

Other liabilities

21,812

23,121

25,362

Shareholders’ equity

252,628

246,543

234,155

Total Liabilities and Shareholders' Equity

2,253,977

2,239,138

2,185,879

Net Interest Margin

16,925

3.05

16,033

2.91

14,913

2.77

(1)

Non-accrual loans are included in average balances.

(2)

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 Years Ended

12/31/2025

12/31/2024

Average Balance

Interest Income/Expense

Average Yield

Average Balance

Interest Income/Expense

Average Yield

Interest-earning assets:

Loans receivable, net of fees (1)

Commercial real estate

1,000,330

51,836

5.18

1,076,027

55,116

5.12

Commercial and industrial

347,464

27,796

8.00

262,844

21,099

8.03

Commercial construction

168,747

12,112

7.18

165,134

12,044

7.29

Consumer real estate

307,653

14,644

4.76

341,843

16,616

4.86

Warehouse facilities

31,638

1,987

6.28

17,408

1,284

7.38

Consumer nonresidential

6,545

537

8.20

6,214

509

8.19

Total loans

1,862,377

108,912

5.85

1,869,470

106,668

5.71

Investment securities (2)

194,232

4,104

2.11

208,406

4,351

2.09

Interest-bearing deposits at other financial institutions

124,682

5,381

4.32

44,360

2,293

5.17

Total interest-earning assets

2,181,291

118,397

5.43

2,122,236

113,312

5.34

Non-interest earning assets:

Cash and due from banks

12,167

7,474

Premises and equipment, net

778

930

Accrued interest and other assets

55,241

64,310

Allowance for credit losses

(18,180

)

(18,963

)

Total Assets

2,231,297

2,175,987

Interest-bearing liabilities:

Interest checking

683,069

21,329

3.12

571,432

19,526

3.42

Savings and money market

347,461

11,357

3.27

344,272

12,384

3.60

Time deposits

268,621

10,884

4.05

275,288

11,979

4.35

Wholesale deposits

242,109

8,456

3.49

263,664

9,317

3.53

Total interest-bearing deposits

1,541,260

52,026

3.38

1,454,656

53,206

3.66

Other borrowed funds

39,193

1,468

3.75

79,874

3,490

4.37

Subordinated notes, net of issuance costs

18,721

1,134

6.06

19,613

1,027

5.23

Total interest-bearing liabilities

1,599,174

54,628

3.42

1,554,143

57,723

3.71

Noninterest-bearing liabilities:

Noninterest-bearing deposits

363,764

368,591

Other liabilities

23,021

26,408

Shareholders’ equity

245,338

226,845

Total Liabilities and Shareholders' Equity

2,231,297

2,175,987

Net Interest Margin

63,769

2.92

55,589

2.62

(1)

Non-accrual loans are included in average balances.

(2)

The average balances for investment securities includes restricted stock.