FVCBankcorp beats Q2 pretax profit expectations, net income up 36%

Overview

• FVCBankcorp Q2 net income rises 36% yr/yr to $5.67 mln

• Pretax profit for Q2 beats analysts' expectations, per LSEG data

• Company initiates quarterly cash dividend program

Outlook

• Company anticipates continued improvement in loan yields due to repricings

• Company focused on profitability and disciplined lending to grow customer base

Result Drivers

• NET INTEREST INCOME - Increased 15% due to higher loan interest income as portfolio reprices to higher rates

• CREDIT QUALITY - Strong credit quality with significant reductions in past due and nonperforming loans

• EFFICIENCY IMPROVEMENT - 9% improvement in efficiency ratio due to enhanced customer service and technology solutions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for FVCBankcorp Inc is $14.50, about 8.7% above its July 21 closing price of $13.24

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw81lvvGa