FVCBankcorp CRE Concentration Reaches Recent Low

The Tip Desk · October 22, 2026 · 3 min read

Net interest income was $18.4 million in the third quarter as the margin held at 3.32% and CRE-plus-construction loans reached 275% of risk-based capital.

FVCBankcorp, Inc. (FVCB), the Fairfax, Virginia commercial lender, reported net interest income of $18.4 million for the quarter ended September 30, 2026, up 15% from $16.0 million a year earlier.

Versus the linked quarter, net interest income fell 4% from $19.1 million. The second quarter had included $1.0 million of loan fees from a commercial real estate prepayment; excluding those fees, third-quarter net interest income rose 2%. Net interest margin was 3.32%, up 41 basis points from 2.91% a year earlier. Excluding the same $1.0 million of prepayment fees, the second-quarter margin was 3.35%.

The company said the year-over-year margin gain reflected scheduled repricing and maturities in the loan book and a lower cost of funds. Cost of funds fell 36 basis points to 2.42% from 2.78% a year earlier and 5 basis points from 2.47% in the linked quarter. Cost of deposits was 2.36%, down 33 basis points from a year earlier.

Interest income was $30.4 million, up 2% from a year earlier. Loan interest income rose 4% to $28.0 million. The yield on loans was 5.99%, up 9 basis points from a year earlier. Interest expense was $12.0 million, down 13% from $13.8 million a year earlier.

Loans, net of fees, were $1.91 billion at September 30, 2026, up 3% from $1.86 billion a year earlier and $14.6 million from June 30. Average loans declined $50.7 million versus the linked quarter as expected closings slipped to the fourth quarter. Funds for those delayed originations were parked in lower-yielding interest-bearing deposits at other institutions, which rose $83.4 million on average.

Total deposits were $2.00 billion, down $55.2 million, or 3%, from June 30. Core deposits fell $45.1 million, or 2%, after a $42.8 million increase in the second quarter. The company said the decline was primarily large customer transactions at the end of the second quarter. Noninterest-bearing deposits were $427.3 million, up 14% from a year earlier, and 21% of total deposits.

Watchlist loans fell $32.4 million, or 56%, to $25.5 million from $57.9 million at December 31, 2025, primarily from a $31.3 million construction loan. Nonperforming loans were $11.0 million, or 0.48% of assets. Provision for credit losses was $186 thousand for the three months ended September 30, 2026. The allowance for credit losses to loans, net of fees, was 0.98%.

CRE and construction loans to total risk-based capital were 275%, which Chairman and Chief Executive Officer David W. Pijor said was the lowest in recent history. CRE loans were $935.3 million, or 49% of loans, and construction loans $143.8 million, or 8%.

Noninterest income was $303 thousand, down from $2.2 million in the linked quarter, which included an $847 thousand pre-tax gain on the sale of the bank’s interest in Bearing Insurance Group. The company recorded a $403 thousand loss from its Atlantic Coast Mortgage minority interest. Noninterest expense was $10.0 million. The efficiency ratio was 53.29%.

Net income was $6.6 million, or $0.37 a share, up 19% from $5.6 million, or $0.31 a share, a year earlier. Compared with June, net income fell $1.6 million, or 19%, from $8.2 million. Return on average assets was 1.17%.

The bank’s total risk-based capital ratio was 16.66% and CET1 15.64%. Tangible common equity to tangible assets was 11.99%. The company declared a $0.07 quarterly cash dividend payable November 16, 2026.