FVCBankcorp, Inc. Announces Sixth Consecutive Quarter of Improved Earnings; Return on Average Assets 1.02% for the Second Quarter of 2025

FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported its financial results for the second quarter of 2025.

Second Quarter Selected Financial Highlights

• Net Income Increased 10% Compared to the Prior Quarter. Net income totaled $5.7 million, or $0.31 diluted earnings per share, for the quarter ended June 30, 2025, compared to net income of $5.2 million, or $0.28 diluted earnings per share, for the quarter ended March 31, 2025. Compared to the year ago quarter, net income increased 36%, or $1.5 million, from $4.2 million for the three months ended June 30, 2024.
• Return on Average Assets Improved to 1.02%. Return on average assets for the quarter ended June 30, 2025 was 1.02%, an increase from 0.94% for the quarter ended March 31, 2025, and up from 0.77% for the quarterly period ended June 30, 2024.
• Net Interest Margin Up 12% and Net Interest Income Improved 15%, Compared to the Year Ago Quarter. For the quarter ended June 30, 2025, net interest margin improved 7 basis points to 2.90% from 2.83% for the three months ended March 31, 2025, the sixth consecutive quarter of margin improvement, and increased 31 basis points, or 12%, compared to 2.59% for the second quarter of 2024. Net interest income increased $2.1 million, or 15%, to $15.8 million for the second quarter of 2025, compared to $13.7 million for the year ago quarter ended June 30, 2024.
• Strong Credit Quality. Loans past due 30 days or more totaled $2.8 million at June 30, 2025, a decrease of $5.7 million, or 67%, from $8.4 million at December 31, 2024. Past due loans at June 30, 2025 were primarily consumer real estate secured. Nonperforming loans at June 30, 2025 decreased to $10.5 million, or 18%, from $12.8 million at December 31, 2024. Nonperforming loans to total assets decreased to 0.46% at June 30, 2025 from 0.58% at December 31, 2024.
• Sound, Well Capitalized Balance Sheet. All of FVCbank’s (the “Bank”) regulatory capital components and ratios were in excess of thresholds required to be considered "well capitalized", with total risk-based capital to risk-weighted assets of 15.28% at June 30, 2025, compared to 14.73% at December 31, 2024. The tangible common equity ("TCE") to tangible assets ("TA") ratio for the Bank increased to 11.16% at June 30, 2025, from 10.87% at December 31, 2024. The Bank’s investment securities are classified as available-for-sale, and therefore the unrealized losses on these securities are fully reflected in the TCE/TA ratio.
• Shares Repurchased During the Second Quarter. During the second quarter of 2025, the Company repurchased 415,000 shares of its common stock at a total cost of $4.6 million. All of these shares have been canceled and returned to the status of authorized but unissued. These share repurchases reduced weighted average shares outstanding for the second quarter of 2025 by 279,066 shares.
• Initiation of Quarterly Cash Dividend. On July 17, 2025, the Company announced it was initiating a quarterly cash dividend program. The initial quarterly cash dividend of $0.06 was declared for each share of its common stock outstanding. The dividend is payable on August 18, 2025 to shareholders of record on July 28, 2025. Based on the current number of shares outstanding, the aggregate payment will be approximately $1.1 million.

For the three months ended June 30, 2025, the Company recorded net income of $5.7 million, or $0.31 diluted earnings per share, compared to net income of $4.2 million, or $0.23 diluted earnings per share, for the quarter ended June 30, 2024, an increase of $1.5 million, or 36%. During the second quarter of 2025, the Company unwound $15 million of its pay-fixed/receive floating interest rate swaps and the funding associated with that hedge, resulting in a gain of $154 thousand (which was recorded in non-interest income).

For the six months ended June 30, 2025, the Company reported net income of $10.8 million, or $0.59 diluted earnings per share, compared to $5.5 million, or $0.30 diluted earnings per share, for the six months ended June 30, 2024, an increase of $5.3 million, or 97%. 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.

Commercial bank operating earnings (non-GAAP) exclude the above noted derivative gain recorded during 2025 for the three months ended June 30, 2025. Excluding this nonrecurring item, commercial bank operating earnings for the three months ended June 30, 2025 and 2024 were $5.5 million and $4.2 million, respectively, an increase of $1.3 million, or 34%. Diluted commercial bank operating earnings per share (non-GAAP) for the three months ended June 30, 2025 and 2024 were $0.30 and $0.23, respectively. Adjusted return on average assets for the three months ended June 30, 2025 and 2024 was 1.00% and 0.77%, respectively.

Commercial bank operating earnings (non-GAAP) for the six months ended June 30, 2025 and 2024 exclude the 2025 derivative gain and tax provisioning recorded for the BOLI surrender during 2024. Excluding these nonrecurring items, commercial bank operating earnings for the six months ended June 30, 2025 and 2024 were $10.7 million and $7.9 million, respectively, an increase of $2.8 million, or 36%. Diluted commercial bank operating earnings per share (non-GAAP) for the six months ended June 30, 2025 and 2024 were $0.58 and $0.43, respectively.

The Company considers commercial bank operating earnings a useful comparative financial measure of the Company’s operating performance over multiple periods. Commercial bank operating earnings are 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:

“We are pleased to see our annualized return on average assets reach 1.02% for the quarter ended June 30, 2025. The strategic initiatives we have deployed have contributed to our attaining a sixth quarter of consecutive earnings growth. We remain focused on improved profitability and disciplined lending while supporting and growing our customer base. Additionally, in July, the Board approved the initiation of a quarterly cash dividend, reflecting the Bank's financial strength and its maturity. This quarterly cash dividend also demonstrates our continued commitment to enhance shareholder value.”

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

“We continue to deepen our customer relationships with personalized service and technology solutions that improve the customer experience and streamline processes. Our online banking platform, with upgraded security features, combined with process automation across the Bank, have contributed to the 9% improvement in our efficiency ratio to 56.2% for the quarter ended June 30, 2025, compared to 61.9% for the year ago quarter ended June 30, 2024.”

Statement of Condition

Total assets were $2.24 billion at June 30, 2025 and $2.20 billion at December 31, 2024, an increase of $38.3 million. Compared to June 30, 2024, total assets decreased $61.9 million from $2.30 billion, year-over-year.

Loans receivable, net of deferred fees, were $1.87 billion at each of June 30, 2025 and December 31, 2024, and $1.89 billion at June 30, 2024. During the second quarter of 2025, loan originations totaled $29.2 million with a weighted average rate of 7.66%, and were primarily comprised of commercial and industrial loans. Loan renewals totaled $37.9 million and had a weighted average rate of 7.72%. Loans that paid off during the second quarter of 2025 totaled $38.5 million and had a weighted average rate of 6.01%, and were primarily comprised of commercial real estate and construction loans. At June 30, 2025, the Company's warehouse lending facility increased $8.4 million to end at $52.5 million, with a weighted average yield of 6.39% for the quarter ended June 30, 2025.

Investment securities were $157.1 million at June 30, 2025, $156.7 million at December 31, 2024 and $162.4 million at June 30, 2024. For the six months ended June 30, 2025, investment securities increased primarily due to a decrease in the portfolio’s unrealized losses totaling $6.0 million, security purchases totaling $2.0 million, offset by principal repayments totaling $7.5 million.

Total deposits were $1.90 billion at June 30, 2025, $1.87 billion at December 31, 2024, and $1.97 billion at June 30, 2024. Core deposits, which exclude wholesale deposits, increased $47.8 million, or 6% an annualized basis, for the six months ended June 30, 2025. During the second quarter of 2025, wholesale deposits decreased $15.0 million, as the Company unwound $15 million of its pay-fixed/receive floating interest rate swaps and the funding associated with that hedge, resulting in a gain of $154 thousand. As a member of the IntraFi Network, the Bank offers products to its customers who seek to maximize FDIC insurance protection (“reciprocal deposits”). At June 30, 2025 and December 31, 2024, reciprocal deposits, which are mostly comprised of interest checking and savings accounts, totaled $320.7 million and $269.7 million, respectively, and are considered part of the Company’s core deposit base. Time deposits increased $30.0 million to $278.8 million during the first six months of 2025. The Company continues to build core deposits at lower interest rates.

At June 30, 2025, wholesale funding totaled $284.9 million, a decrease of $15.0 million, or 5%, from March 31, 2025. Wholesale funding at June 30, 2025 includes wholesale deposits totaling $234.9 million and other borrowed funds totaling $50.0 million. For the quarter ended June 30, 2025, the cost of wholesale funding (including $235 million in pay-fixed/receive-floating interest rate swaps at an average rate of 3.26%) was 3.46% compared to a cost of 3.54% for the quarter ended March 31, 2025.

Shareholders’ equity at June 30, 2025 was $243.2 million, an increase of $7.8 million, or 3%, from December 31, 2024. Earnings for the six months ended June 30, 2025 contributed $10.8 million to the increase in shareholders’ equity. During the second quarter of 2025, the Company repurchased 415,000 shares of its common stock at a total cost of $4.6 million, decreasing shareholders’ equity. Accumulated other comprehensive loss decreased $1.0 million for the six months ended June 30, 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 June 30, 2025.

Tangible book value per share (a non-GAAP financial measure which is defined in the tables below) at June 30, 2025 and December 31, 2024 was $13.08 and $12.52, respectively. Tangible book value per share, excluding accumulated other comprehensive loss (a non-GAAP financial measure which is defined in the tables below), at June 30, 2025 and December 31, 2024 was $14.32 and $13.80, respectively.

The Bank was well-capitalized at June 30, 2025, with total risk-based capital ratio of 15.28%, common equity tier 1 risk-based capital ratio of 14.29%, and tier 1 leverage ratio of 11.97%.

Asset Quality

For the three and six months ended June 30, 2025, the Company recorded a provision for credit losses totaling $105 thousand and $305 thousand, respectively, compared to $206 thousand for each of the three and six months ended June 30, 2024. At June 30, 2025 and December 31, 2024, the allowance for credit losses (“ACL”) was $18.1 million. The ACL to total loans, net of fees, was 0.97% at each of June 30, 2025 and December 31, 2024. The Company generally does not record reserves for the warehouse lending facility it provides to ACM. Excluding the warehouse lending facility, the ACL to total loans, net of fees, was 0.99% at June 30, 2025. The reserve for unfunded commitments and the ACL on loans combined at June 30, 2025 was 0.99% of total loans, net of fees. The Company recorded net charge-offs of $517 thousand, or 0.11% annualized to average loans, for the three months ended June 30, 2025. Net charge-offs for the quarter ended June 30, 2025 were primarily comprised of one commercial loan, and not indicative of a systemic issue with the Company’s loan portfolio credit quality. For the six months ended June 30, 2025, net charge-offs totaled $378 thousand, or 0.04% annualized to average loans.

Nonperforming loans at June 30, 2025 totaled $10.5 million, or 0.46% of total assets, compared to $12.8 million, or 0.58% of total assets, at December 31, 2024. The decrease in nonperforming loans at June 30, 2025 was due to a decrease in nonaccrual loans of $990 thousand, and a decrease in loans past due over 90 days of $1.3 million at June 30, 2025. Total watchlist loans decreased to $12.6 million, or 13%, from $14.5 million at December 31, 2024. The Company had no other real estate owned at June 30, 2025 and December 31, 2024.

At June 30, 2025, commercial real estate loans totaled $981.5 million, or 53% of total loans, net of fees, and construction loans totaled $177.1 million, or 9% of total loans, net of fees. Included in commercial real estate loans are loans secured by office properties totaling $119.8 million, or 6% of total loans, which are primarily located in the Virginia and Maryland suburbs of the Company’s market area, with $1.6 million, or 0.09% of total loans, located in Washington, D.C. Loans secured by retail properties totaled $236.9 million, or 13% of total loans, at June 30, 2025, with $12.3 million, or less than 1% of total loans, located in Washington, D.C. Loans secured by multi-family properties totaled $155.7 million, or 8% of total loans, at June 30, 2025, with $73.3 million, or 4% 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 June 30, 2025 (dollars in thousands).

The loans shown in the above table exhibit strong credit quality, with one nonaccrual loan at June 30, 2025 totaling $10.2 million, which has a specific reserve totaling $365 thousand. 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 six months ended June 30, 2025, the Company recorded income of $350 thousand and $491 thousand, respectively, compared to income of $350 thousand and $123 thousand, respectively, for the three and six months ended June 30, 2024, related to its investment in Atlantic Coast Mortgage, LLC ("ACM"). The increase in earnings at ACM are a direct result of continued success in executing their strategic growth and geographic diversification initiatives, resulting in a 15% increase in loan originations for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. As of June 30, 2025, ACM is now licensed in 38 states with four additional state license applications currently in process.

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 $5.7 million for the three months ended June 30, 2025 compared to net income of $4.2 million for the three months ended June 30, 2024, an increase of $1.5 million, or 36%. Compared to the linked quarter, net income for the three months ended June 30, 2025 increased $502 thousand, or 10%, from $5.2 million for the three months ended March 31, 2025.

Net interest income increased $2.1 million, or 15%, to $15.8 million for the quarter ended June 30, 2025, compared to $13.7 million for the same period of 2024, and increased $707 thousand, or 5%, compared to the linked quarter ended March 31, 2025. The increase in net interest income for the second quarter of 2025 compared to both the year ago and linked quarters was primarily due to an increase in loan interest income as the loan portfolio reprices to higher interest rates.

The Company's net interest margin increased 31 basis points to 2.90% for the quarter ended June 30, 2025 compared to 2.59% for the quarter ended June 30, 2024, and increased 7 basis points from 2.83% for the linked quarter ended March 31, 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. Cost of funds decreased to 2.79% for the quarter ended June 30, 2025, a decrease from 2.83% for the quarter ended March 31, 2025, and a decrease from 3.00% for the year ago quarter ended June 30, 2024.

Compared to the year ago quarter, interest income increased $1.5 million, or 5%, to $29.4 million, for the second quarter of 2025, and increased $873 thousand, or 3%, compared to the linked quarter ended March 31, 2025. Loan interest income increased $571 thousand, or 2%, to $27.0 million for the three months ended June 30, 2025, compared to $26.5 million for the three months ended June 30, 2024, as average loan yields increased during this same comparable period. Loan yields increased 18 basis points to 5.80% for the three months ended June 30, 2025 compared to 5.62% for the same period of 2024, and increased 11 basis points from 5.69% for the three months ended March 31, 2025. The yield on earning assets increased 12 basis points to 5.39% for the three months ended June 30, 2025 compared to 5.27% for the same period of 2024. Compared to the linked quarter, the yield on earnings assets increased 8 basis points to 5.39% for the quarter ended June 30, 2025, compared to 5.31% for the quarter ended March 31, 2025, a result of loans repricing upwards as compared to the prior quarter.

The Company anticipates continued increase in loan yields due to scheduled loan repricings. Within 12 months of June 30, 2025, $81.3 million in fixed rate commercial loans with a weighted average rate of 4.74% and $21.0 million in variable rate commercial loans with a weighted average rate of 4.00% are expected to reprice. Within the following 24-36 months of June 30, 2025, $268.0 million in fixed rate commercial loans with a weighted average rate of 4.83% and an additional $129.9 million in variable rate commercial loans with a weighted average rate of 4.95% are scheduled to reprice. These scheduled repricings represent 33% of the Company’s total commercial loan portfolio. 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.

The Company has actively managed its maturing commercial real estate loan portfolio and further diversified its loan mix toward commercial & industrial loans. Commercial real estate loan maturities scheduled for 2024 totaling $36.0 million with a weighted average interest rate of 6.04% paid off as expected. Through June 30, 2025, scheduled commercial real estate maturities totaling $22.5 million with a weighted average interest rate of 5.31% have paid off or are expected to pay off later in 2025.

Interest expense decreased $630 thousand, or 4%, to $13.7 million, for the quarter ended June 30, 2025, compared to $14.3 million for the quarter ended June 30, 2024, which is attributable to the decrease in other borrowed funds. On a linked quarter basis, interest expense increased $166 thousand, or 1%, compared to the quarter ended March 31, 2025. Interest expense on deposits increased slightly by $64 thousand to $13.0 million for the three months ended June 30, 2025, compared to $12.9 million for the three months ended June 30, 2024, as average total deposits increased $114.2 million for the three months ended June 30, 2025 when compared to the year ago quarter. On a linked quarter basis, interest expense on deposits increased $166 thousand, or 1%, from $12.8 million for the quarter ended March 31, 2025. The cost of deposits (which includes noninterest-bearing deposits) for the second quarter ended June 30, 2025 was 2.74%, a decrease of 27 basis points from the year ago quarter ended June 30, 2024, and a decrease of 4 basis points compared to the linked quarter ended March 31, 2025, demonstrating the Company's ability to grow its customer base while reducing deposit costs.

Net interest income for the six months ended June 30, 2025 and 2024 was $30.8 million and $26.5 million, respectively, an increase of $4.3 million, or 16%, year-over-year. Interest income increased $3.2 million, or 6%, to $58.0 million for the six months ended June 30, 2025 compared to $54.8 million for the comparable 2024 period. Interest expense totaled $27.2 million for the six months ended June 30, 2025, a decrease of $1.2 million, or 4%, compared to $28.3 million for the six months ended June 30, 2024. The Company’s net interest margin for the six months ended June 30, 2025 was 2.87% compared to 2.53% for the year-ago six month period of 2024, an increase of 34 basis points, or 13%.

Noninterest income for the three months ended June 30, 2025 totaled $1.0 million compared to income of $671 thousand for the three months ended March 31, 2025, and $871 thousand for the three months ended June 30, 2024.

Fee income from loans was $33 thousand for the quarter ended June 30, 2025, compared to $38 thousand for the second quarter of 2024. Service charges on deposit accounts totaled $282 thousand for the second quarter of 2025, compared to $279 thousand for the year ago quarter, and $270 thousand for the linked quarter ended March 31, 2025. Income from BOLI increased to $71 thousand for the three months ended June 30, 2025, compared to $66 thousand for the same period of 2024. Income from the minority interest in ACM for both of the quarters ended June 30, 2025 and 2024 was $350 thousand. As mentioned previously, during the quarter ended June 30, 2025, the Company unwound $15 million of its pay-fixed/receive floating interest rate swaps and the funding associated with that hedge, resulting in a gain of $154 thousand.

For the six months ended June 30, 2025, the Company recorded noninterest income totaling $1.7 million, compared to $1.3 million for the six months ended June 30, 2024. Fee income from loans was $110 thousand for the six months ended June 30, 2025, compared to $87 thousand for the same period of 2024. Service charges on deposit accounts totaled $552 thousand for the six months ended June 30, 2025, compared to $540 thousand for the six months ended June 30, 2024. Income from BOLI decreased to $141 thousand for the six months ended June 30, 2025 compared to $256 thousand for the same period of 2024, a direct result of the BOLI surrendered during 2024. Income from its minority interest in ACM was $491 thousand for the six months ended June 30, 2025, compared to $123 thousand for the same period of 2024.

Noninterest expense totaled $9.4 million for the quarter ended June 30, 2025, an increase of $432 thousand, or 5%, compared to $9.0 million for the year ago quarter ended June 30, 2024. On a linked quarter basis, noninterest expense increased $295 thousand, or 3%, from $9.1 million for the three months ended March 31, 2025, primarily due to an increase in salaries and benefits expense during the second quarter of 2025. Compared to the year ago quarter, salaries and benefits expense increased $346 thousand, or 7%, for the three months ended June 30, 2025, and increased $253 thousand, or 5%, compared to the linked quarter ended March 31, 2025. The increase in salaries and benefits expense for the second 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 second quarter of 2025 along with the filling of open positions that were vacant in the previous periods.

Internet banking and software expense increased $134 thousand to $864 thousand for the second quarter of 2025 compared to the year ago quarter ended June 30, 2024, primarily as a result of the implementation of enhanced customer software solutions. Data processing and network administration expense decreased $117 thousand to $550 thousand for the three months ended June 30, 2025 compared to the same period of 2024, primarily as a result of contract renewals with certain service providers for the Bank. The Company continues to identify and assess opportunities to reduce operating expenses.

For the six months ended June 30, 2025 and 2024, noninterest expense was $18.6 million and $17.6 million, respectively, an increase of $940 thousand, or 5%, primarily as a result of the aforementioned increases in salaries and benefits expenses and internet banking and software expense.

The efficiency ratio for the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024, was 56.2%, 58.1%, and 61.9%, respectively. For the six months ended June 30, 2025 and 2024, the efficiency ratio was 57.1% and 63.5%, 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 $1.6 million and $1.2 million for the three months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025 and 2024, provision for income taxes was $2.8 million and $4.4 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 $2.24 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.