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FVCBankcorp Inc. Accelerates Organic Growth and Reports Record 2nd Quarter Results

FAIRFAX, Va.--(BUSINESS WIRE)--

FVCBankcorp Inc. ( FVCB ) (the “Company”) today reported second quarter 2018 earnings increased 45% from a year ago to $3.1 million, or $0.26 diluted earnings per share, compared to $2.1 million, or $0.19 diluted earnings per share, for the quarterly period ended June 30, 2017. For the six months ended June 30, 2018, earnings were $6.1 million, or $0.50 per diluted share, compared to $4.5 million, or $0.40 per diluted share, for the comparable six month period of 2017. Quarterly results include expenses of $397,000 which are associated with the Company’s upcoming acquisition of Colombo Bank. Excluding these merger-related expenses, operating income for the three and six months ended June 30, 2018 was $3.4 million and $6.4 million, respectively. Diluted earnings per share excluding merger expenses for the three and six months ended June 30, 2018 was $0.28 and $0.53, respectively. Results for June 30, 2018 reflect the new lower federal statutory tax rate.

Return on average assets was 1.13% and return on average equity was 12.00% for the second quarter of 2018. For the comparable June 30, 2017 period, return on average assets was 0.91% and return on average equity was 10.05%. Excluding merger-related expenses, return on average assets and return on average equity for the three months ended June 30, 2018 was 1.24% and 13.23%, respectively. For the six months ended June 30, 2018, return on average assets and return on average equity each excluding merger-related expenses was 1.19% and 12.64%, respectively.

Selected Highlights

  • Total loans, net of deferred fees, increased $157 million, or 20%, from June 30, 2017 to June 30, 2018. Asset quality remains strong with nonperforming loans and loans past due 90 days or more as a percentage of total assets being 0.08% at June 30, 2018, compared to 0.30% at June 30, 2017.
  • Total deposits increased $152 million, or 18%, from June 30, 2017 to June 30, 2018. This growth was primarily driven by an increase in noninterest-bearing deposits of $112 million year-over-year.
  • Tangible book value per share at June 30, 2018 was $9.38, a 13% increase from $8.31 at June 30, 2017.
  • Net income, before taxes and merger-related expenses, increased 24% year-over-year.
  • Efficiency ratio for the three months ended June 30, 2018 was 59.9%, and excluding merger-related expenses, was 55.8%.

“The second quarter of 2018 reflects the best overall performance of the Company since we opened our doors almost 11 years ago. Our strong performance is attributable to the team we have assembled and their continuous efforts to bring in new customers as well as providing continued excellent service to our longstanding customers,” stated David W. Pijor, Chairman and CEO.

Balance Sheet

Total assets increased to $1.14 billion compared to $970.9 million as of June 30, 2018 and 2017, respectively, an increase of $169 million, or 17%. Loans receivable, net of deferred fees, totaled $955.6 million as of June 30, 2018, compared to $798.5 million as of June 30, 2017, a year-over-year increase of $157 million, or 20%. For the second quarter of 2018, loans receivable, net of deferred fees, increased $34 million, or 15% on an annualized basis.

Total deposits increased to $1.01 billion as of June 30, 2018 compared to $856.4 million as of June 30, 2017, an increase of $152 million, or 18%. Noninterest-bearing deposits increased 65% to $284.5 million at June 30, 2018, or 28% of total deposits, compared to $172.6 million at June 30, 2017. Core deposits, which include total deposits less wholesale deposits, increased $169 million or 22% year-over-year. Wholesale deposits totaled $77.3 million, or 8% of total deposits at June 30, 2018, a decrease of $38 million from December 31, 2017 and a decrease of $27 million from March 31, 2018. The Company’s increase in deposits is a result of several promotions in addition to continued growth in core deposits.

Income Statement

Net interest income totaled $9.4 million, an increase of $1.5 million, or 19%, for the quarter ended June 30, 2018, compared to the year ago quarter. The Company’s net interest margin was 3.50% and 3.47% for the quarters ended June 30, 2018 and 2017, respectively. On a linked quarter basis, the margin increased 11 basis points from 3.39% for the three months ended March 31, 2018, a result of increases in yields on earning assets and growth in noninterest-bearing deposits offset by modest increases in the cost of deposits.

Noninterest income totaled $363 thousand and $358 thousand for the quarters ended June 30, 2018 and 2017, respectively. Fee income from fees on loans, service charges on deposits, and other fee income was $255 thousand, an increase of 14% for the quarter ended June 30, 2018 compared to 2017. This increase in fee income is primarily due to initiatives the Company began during 2017 to enhance fee income through ancillary services designed to assist its clients’ financial needs.

Noninterest expense totaled $5.8 million for the quarter ended June 30, 2018, compared to $4.8 million for the same three-month period of 2017. On a linked quarter basis, noninterest expense excluding merger-related expenses increased 3% from the three months ended March 31, 2018. The increase in noninterest expense is primarily attributable to the Company strategically hiring business development officers and back office staff during 2017 to support the Company’s growth plans. As a result, salary and compensation related expenses increased $317 thousand, or 11%, for the quarter ended June 30, 2018, compared to the same three-month period of 2017. In addition, the Company recorded merger-related expenses of $397 thousand for the three months ended June 30, 2018 which contributed to the increase in noninterest expense for the quarter. Professional fees increased slightly year-over-year as a result of implementation costs related to regulatory compliance over the Company’s internal control environment. Increases in data processing and network administration, franchise taxes and other operating expenses for the quarter ended June 30, 2018 compared to the same three-month period of 2017 is primarily growth related. The efficiency ratio for the quarter ended June 30, 2018 was 59.9%, an increase from 58.9% from the year ago quarter, or 55.8% excluding merger-related expenses.

Asset Quality

Asset quality remains strong as nonperforming loans and loans ninety days or more past due totaled $938 thousand, or 0.08% of total assets. Troubled debt restructurings (“TDR”) decreased to $1.6 million at June 30, 2018, compared to $4.7 million at June 30, 2017. Nonperforming assets (including TDRs and other real estate owned) to total assets was 0.56% and 0.78% at June 30, 2018 and 2017, respectively. The allowance for loan losses to total loans was 0.87% at June 30, 2018, reflecting the Company’s continued low level of problem loans and stable economic environment.

About FVCBankcorp Inc.

Celebrating 10 years of sound financial performance and continued growth, FVCbank commenced operations in November 2007 and is the wholly-owned subsidiary of FVCBankcorp Inc. FVCbank is a $1.14 billion Virginia-chartered community bank serving the banking needs of commercial businesses, nonprofit organizations, professional service entities, their owners and employees located in the greater Washington, D.C., metropolitan and Northern Virginia area. Locally owned and managed, it is based in Fairfax, Virginia, and has six full-service offices in Arlington, Ashburn, Fairfax, Manassas, Reston and Springfield, Virginia. Visit www.fvcbank.com for more information.

For more information on the Company’s 2018 selected financial information, please visit the Investor Relations page of FVCBankcorp Inc.’s website, www.fvcbank.com .

Caution about Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited, to statements about the Company’s plans, objectives, estimates, intentions and expectations as to future trends, plans, events or results of the Company’s operations and policies and regarding general economic conditions. These forward-looking statements are based on current beliefs that involve significant risks, uncertainties, and assumptions. Because of these uncertainties and the assumptions on which the forward-looking statements are based, actual operations and results in the future may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements.

FVCBankcorp, Inc.
Selected Financial Data
(Dollars in thousands, except share data and per share data)

For the Three Months Ended,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

March 31,

December 31,

(Unaudited) (Unaudited) (Unaudited)
2018 2017 2018 2017 2018 2017
Selected Balances
Total assets $ 1,139,449 $ 970,896 $ 1,078,697 $ 1,053,224
Total investment securities 118,844 111,995 119,806 117,712
Total loans, net of deferred fees 955,641 798,510 921,231 888,677
Allowance for loan losses (8,298 ) (7,012 ) (8,102 ) (7,725 )
Total deposits 1,008,896 856,443 938,661 928,163
Subordinated debt 24,367 24,287 24,347 24,327
Other borrowings - - 4,100 12,500 - -
Total stockholders’ equity 103,966 85,048 100,651 98,283
Summary Results of Operations
Interest income $ 12,070 $ 9,801 $ 23,411 $ 19,189 $ 11,341 $ 10,801
Interest expense 2,714 1,913 5,292 3,704 2,578 2,350
Net interest income 9,356 7,888 18,119 15,485 8,763 8,451
Provision for loan losses 281 165 639 515 358 435
Net interest income after provision for loan losses 9,075 7,723 17,480 14,970 8,405 8,016
Noninterest income - loan fees, service charges and other 255 224 529 407 275 252
Noninterest income - bank owned life insurance 108 111 219 625 110 114
Noninterest income - gains on securities sold - - 23 - - 119 - - 30

Noninterest income - gains on foreclosure of other real estate owned

- - - - - - - - - - 1,076
Noninterest expense 5,822 4,844 11,082 9,561 5,260 4,925
Income before taxes 3,616 3,237 7,146 6,560 3,530 4,563
Income tax expense 539 1,117 1,072 2,110 533 3,558
Net income 3,077 2,120 6,074 4,450 2,997 1,005

Per Share Data (2)

Net income, basic $ 0.28 $ 0.21 $ 0.55 $ 0.44 $ 0.27 $ 0.09
Net income, diluted $ 0.26 $ 0.19 $ 0.50 $ 0.40 $ 0.25 $ 0.08
Book value $ 9.39 $ 8.32 $ 9.17 $ 9.04
Tangible Book value $ 9.38 $ 8.31 $ 9.16 $ 9.03
Shares outstanding 11,076,266 10,224,971 10,980,707 10,868,984
Selected Ratios

Net interest margin (3)

3.50 % 3.47 % 3.45 % 3.45 % 3.39 % 3.43

Return on average assets (3)

1.13 % 0.91 % 1.13 % 0.96 % 1.13 % 0.40

Return on average equity (3)

12.00 % 10.05 % 12.02 % 10.72 % 12.03 % 4.06

Efficiency (1)

59.90 % 58.91 % 58.74 % 57.89 % 57.50 % 55.86
Loans, net of deferred fees, to total deposits 94.72 % 93.24 % 98.14 % 95.75
Noninterest-bearing deposits to total deposits 28.19 % 20.15 % 19.11 % 18.90
Reconciliation of Net Income (GAAP) to Operating Earnings (Non-GAAP)
Net income (from above) $ 3,077 $ 2,120 $ 6,074 $ 4,450 $ 2,997 $ 1,005
Add: Merger and acquisition expense 397 - - 397 - - - - - -
Subtract: provision for income taxes associated with merger and acquisition expense (83 ) - - (83 ) - - - - - -
NET INCOME, excluding above merger and acquisition charges $ 3,391 $ 2,120 $ 6,388 $ 4,450 $ 2,997 $ 1,005
Net income, diluted, on an operating basis $ 0.28 $ 0.19 $ 0.53 $ 0.40 $ 0.25 $ 0.08
Return on average assets (non-GAAP operating earnings) 1.24 % 0.91 % 1.19 % 0.96 % 1.13 % 0.40
Return on average equity (non-GAAP operating earnings) 13.23 % 10.05 % 12.64 % 10.72 % 12.03 % 4.06
Capital Ratios - Bank
Tangible common equity (to tangible assets) 9.12 % 8.75 % 9.32 % 9.33
Total capital (to risk weighted assets) 12.79 % 13.11 % 12.97 % 12.83
Common equity tier 1 capital (to risk weighted assets) 12.00 % 12.30 % 12.17 % 12.05
Tier 1 capital (to risk weighted assets) 12.00 % 12.30 % 12.17 % 12.05
Tier 1 leverage (to average assets) 11.58 % 11.50 % 11.62 % 11.79
Asset Quality
Nonperforming loans and loans 90+ past due 938 2,897 1,003 789
Performing troubled debt restructurings (TDRs) 1,600 4,723 1,624 1,657
Other real estate owned 3,866 - - 3,866 3,866
Nonperforming loans and loans 90+ past due to total assets (excl. TDRs) 0.08 % 0.30 % 0.09 % 0.07
Nonperforming assets to total assets 0.42 % 0.30 % 0.45 % 0.44
Nonperforming assets (including TDRs) to total assets 0.56 % 0.78 % 0.60 % 0.60
Allowance for loan losses to loans 0.87 % 0.88 % 0.88 % 0.87
Allowance for loan losses to nonperforming loans 884.65 % 242.04 % 807.68 % 979.09
Net charge-offs (recovery) $ 85 $ (71 ) $ 66 $ (45 ) $ (19 ) $ (19 )

Net charge-offs (recovery) to average loans (3)

0.04 % (0.04 ) % 0.01 % (0.01 ) % (0.01 ) % (0.01 )
Selected Average Balances
Total assets $ 1,092,950 $ 936,590 $ 1,074,807 $ 922,496 $ 1,056,463 $ 1,013,070
Total earning assets 1,069,035 910,653 1,051,330 899,152 1,033,427 986,648
Total loans, net of deferred fees 930,133 791,732 912,025 778,422 893,716 851,123
Total deposits 958,304 793,504 940,066 788,672 921,625 878,482
Other Data
Noninterest-bearing deposits $ 284,452 $ 172,584 $ 179,406 $ 175,446
Interest-bearing checking, savings and money market 396,667 380,261 401,060 379,101
Time deposits 250,492 209,548 253,444 258,127
Wholesale deposits 77,285 94,050 104,751 115,489

(1)

Efficiency ratio is calculated as noninterest expense divided by the sum of net interest income and noninterest income, excluding gains on sales of investment securities and other real estate owned.

(2)

All per share data calculations have been retroactively adjusted for the five-for-four stock split declared September 2017.

(3)

Annualized.

FVCBankcorp, Inc.
Summary Consolidated Statements of Condition
(Dollars in thousands)
(Unaudited)
% Change % Change
Current From
6/30/2018 3/31/2018 Quarter 12/31/2017 6/30/2017 Year Ago

Cash and due from banks

$ 6,309 $ 8,258 -23.6 % $ 7,428 $ 8,885 -29.0 %

Interest-bearing deposits at other financial institutions

30,734 3,898 688.5 % 15,139 29,072 5.7 %
Investment securities 118,844 119,806 -0.8 % 117,712 111,995 6.1 %
Restricted stock, at cost 3,800 4,225 -10.1 % 3,438 3,613 5.2 %
Loans, net of fees:
Commercial real estate 572,039 560,085 2.1 % 526,065 498,540 14.7 %
Commercial and industrial 110,359 94,228 17.1 % 98,150 87,304 26.4 %
Commercial construction 138,973 126,251 10.1 % 123,444 91,423 52.0 %
Consumer residential 106,747 110,404 -3.3 % 108,786 104,778 1.9 %
Consumer nonresidential 27,523 30,263 -9.1 % 32,232 16,465 67.2 %
Total loans, net of fees 955,641 921,231 3.7 % 888,677 798,510 19.7 %
Allowance for loan losses (8,298 ) (8,102 ) 2.4 % (7,725 ) (7,012 ) 18.3 %

Loans, net

947,343 913,129 3.7 % 880,952 791,498 19.7 %
Premises and equipment, net 1,401 1,349 3.9 % 1,236 1,378 1.7 %
Bank owned life insurance (BOLI) 16,187 16,079 0.7 % 15,969 15,739 2.8 %
Other real estate owned 3,866 3,866 0.0 % 3,866 - - 100.0 %
Other assets 10,965 8,087 35.6 % 7,484 8,716 25.8 %
Total Assets $ 1,139,449 $ 1,078,697 5.6 % $ 1,053,224 $ 970,896 17.4 %
Deposits:

Noninterest-bearing

$ 284,452 $ 179,406 58.6 % $ 175,446 $ 172,584 64.8 %
Interest-bearing checking 222,522 201,950 10.2 % 185,528 236,471 -5.9 %
Savings and money market 174,145 199,110 -12.5 % 193,573 143,790 21.1 %
Time deposits 250,492 253,444 -1.2 % 258,127 209,548 19.5 %
Wholesale deposits 77,285 104,751 -26.2 % 115,489 94,050 -17.8 %
Total deposits 1,008,896 938,661 7.5 % 928,163 856,443 17.8 %
Other borrowed funds - - 12,500 -100.0 % - - 4,100 -100.0 %

Subordinated notes, net of issuance costs

24,367 24,347 0.1 % 24,327 24,287 0.3 %
Other liabilities 2,220 2,538 -12.5 % 2,451 1,018 118.1 %
Stockholders’ equity 103,966 100,651 3.3 % 98,283 85,048 22.2 %
Total Liabilities & Stockholders’ Equity $ 1,139,449 $ 1,078,697 5.6 % $ 1,053,224 $ 970,896 17.4 %
FVCBankcorp, Inc.
Summary Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
For the Three Months Ended
% Change % Change
Current From
6/30/2018 3/31/2018 Quarter 6/30/2017 Year Ago
Net interest income $ 9,356 $ 8,763 6.8 % $ 7,888 18.6 %
Provision for loan losses 281 358 -21.5 % 165 70.3 %
Net interest income after provision for loan losses 9,075 8,405 8.0 % 7,723 17.5 %
Noninterest income:
Fees on Loans 4 58 -93.1 % 11 -63.6 %
Service charges on deposit accounts 152 141 7.8 % 140 8.6 %
Gains on sale of securities available-for-sale - - - - 0.0 % 23 -100.0 %
BOLI income 108 110 -1.8 % 111 -2.7 %
Other fee income 99 76 30.3 % 73 35.6 %
Total noninterest income 363 385 -5.7 % 358 1.4 %
Noninterest expense:
Salaries and employee benefits 3,324 3,185 4.4 % 3,007 10.5 %
Occupancy and equipment expense 580 571 1.6 % 539 7.6 %
Data processing and network administration 272 269 1.1 % 246 10.6 %
State franchise taxes 296 296 0.0 % 260 13.8 %
Professional fees 132 156 -15.4 % 111 18.9 %
Merger and acquisition expense 397 - - 100.0 % - - 100.0 %
Other operating expense 821 783 4.9 % 681 20.6 %

Total non-interest expense

5,822 5,260 10.7 % 4,844 20.2 %
Net income before income taxes 3,616 3,530 2.4 % 3,237 11.7 %
Income tax expense 539 533 1.1 % 1,117 -51.7 %
Net Income $ 3,077 $ 2,997 2.7 % $ 2,120 45.1 %
Earnings per share - basic $ 0.28 $ 0.27 3.7 % $ 0.21 33.3 %
Earnings per share - diluted $ 0.26 $ 0.25 4.0 % $ 0.19 36.8 %

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

GAAP net income reported above $ 3,077
Add: Merger and acquisition expense above 397
Subtract: provision for income taxes associated with merger and acquisition expense (83 )
NET INCOME, excluding above merger and acquisition charges $ 3,391
Earnings per share - basic (excluding merger and acquisition charges) $ 0.31
Earnings per share - diluted (excluding merger and acquisition charges) $ 0.28
Return on average assets (non-GAAP operating earnings) 1.24 %
Return on average equity (non-GAAP operating earnings) 13.23 %
FVCBankcorp, Inc.
Summary Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
For the Six Months Ended
% Change
From
6/30/2018 6/30/2017 Year Ago
Net interest income $ 18,119 $ 15,485 17.0 %
Provision for loan losses 639 515 24.1 %
Net interest income after provision for loan losses 17,480 14,970 16.8 %
Noninterest income:
Fees on Loans 62 27 129.6 %
Service charges on deposit accounts 293 256 14.5 %
Gains on sale of securities available-for-sale - - 119 -100.0 %
BOLI income 219 625 -65.0 %
Other fee income 174 124 40.3 %
Total noninterest income 748 1,151 -35.0 %
Noninterest expense:
Salaries and employee benefits 6,509 5,848 11.3 %
Occupancy and equipment expense 1,152 1,113 3.5 %
Data processing and network administration 541 471 14.9 %
State franchise taxes 592 536 10.4 %
Professional fees 288 229 25.8 %
Merger and acquisition expense 397 - - 100.0 %
Other operating expense 1,603 1,364 17.5 %
Total non-interest expense 11,082 9,561 15.9 %
Net income before income taxes 7,146 6,560 8.9 %
Income tax expense 1,072 2,110 -49.2 %
Net income $ 6,074 $ 4,450 36.5 %
Earnings per share - basic $ 0.55 $ 0.44 25.0 %
Earnings per share - diluted $ 0.50 $ 0.40 25.0 %

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

GAAP net income reported above $ 6,074
Add: Merger and acquisition expense above 397
Subtract: provision for income taxes associated with merger and acquisition expense (83)
NET INCOME, excluding above merger and acquisition charges $ 6,388
Earnings per share - basic (excluding merger and acquisition charges) $ 0.58
Earnings per share - diluted (excluding merger and acquisition charges) $ 0.53
Return on average assets (non-GAAP operating earnings) 1.19%
Return on average equity (non-GAAP operating earnings) 12.64%
FVCBankcorp, Inc.
Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities
(Dollars in thousands)
(Unaudited)
For the Three Months Ended
6/30/2018 3/31/2018 6/30/2017
Average Average Average Average Average Average
Balance Yield Balance Yield Balance Yield
Interest-earning assets:

Loans receivable, net of fees (1)

Commercial real estate $ 564,251 4.59 % $ 538,334 4.63 % $ 487,250 4.64 %
Commercial and industrial 105,175 5.65 % 94,596 5.17 % 88,854 4.98 %
Commercial construction 123,262 5.32 % 122,182 4.85 % 92,778 4.70 %
Consumer residential 108,451 4.51 % 108,815 4.31 % 105,681 4.22 %
Consumer nonresidential 28,994 6.40 % 29,789 6.22 % 17,169 3.87 %
Total loans 930,133 4.86 % 893,716 4.73 % 791,732 4.61 %

Investment securities (2)(3)

123,488 2.43 % 122,860 2.37 % 113,721 2.36 %

Interest-bearing deposits at other financial institutions

15,414 0.83 % 16,851 1.09 % 5,200 0.91 %
Total interest-earning assets 1,069,035 4.52 % 1,033,427 4.39 % 910,653 4.31 %
Non-interest earning assets:
Cash and due from banks 2,348 2,532 7,306
Premises and equipment, net 1,394 1,229 1,455

Accrued interest and other assets

28,361 27,102 24,037
Allowance for loan losses (8,188 ) (7,827 ) (6,861 )
Total Assets $ 1,092,950 $ 1,056,463 $ 936,590
Interest-bearing liabilities:
Interest checking $ 195,130 1.00 % $ 187,251 0.87 % $ 223,563 0.78 %
Savings and money market 194,327 1.03 % 188,911 0.96 % 137,845 0.63 %
Time deposits 249,664 1.47 % 263,736 1.40 % 190,984 1.26 %
Wholesale deposits 91,028 1.70 % 107,265 1.47 % 73,970 0.94 %
Total interest-bearing deposits 730,149 1.26 % 747,163 1.17 % 626,362 0.91 %
Other borrowed funds 6,627 2.00 % 8,327 1.75 % 32,447 1.20 %

Subordinated notes, net of issuance costs

24,354 6.51 % 24,334 6.58 % 24,274 6.53 %
Total interest-bearing liabilities 761,130 1.43 % 779,824 1.34 % 683,083 1.12 %
Noninterest-bearing liabilities:
Noninterest-bearing deposits 228,155 174,462 167,142
Other liabilities 1,132 2,519 1,967
Stockholders’ equity 102,533 99,658 84,398
Total Liabilities and Stockholders' Equity $ 1,092,950 $ 1,056,463 $ 936,590

Net Interest Margin (2)

3.50 % 3.39 % 3.47 %

(1)

Non-accrual loans are included in average balances.

(2)

The average yields for investment securities are reported on a fully taxable-equivalent basis at a rate of 21% for 2018 and 34.5% for 2017.

(3)

The average balances for investment securities includes restricted stock.

FVCBankcorp, Inc.
Average Statements of Condition and Yields on Earning Assets and Interest-Bearing Liabilities
(Dollars in thousands)
(Unaudited)
For the Six Months Ended
6/30/2018 6/30/2017
Average Average Average Average
Balance Yield Balance Yield
Interest-earning assets:

Loans receivable, net of fees (1)

Commercial real estate $ 551,364 4.61 % $ 482,895 4.61 %
Commercial and industrial 99,915 5.42 % 95,285 4.77 %
Commercial construction 122,725 5.08 % 76,268 5.04 %
Consumer residential 108,632 4.41 % 105,902 4.11 %
Consumer nonresidential 29,389 6.31 % 18,072 3.76 %
Total loans 912,025 4.79 % 778,422 4.58 %

Investment securities (2)(3)

123,176 2.40 % 114,725 2.36 %

Interest-bearing deposits at other financial institutions

16,129 0.96 % 6,005 0.87 %
Total interest-earning assets 1,051,330 4.46 % 899,152 4.27 %
Non-interest earning assets:
Cash and due from banks 2,440 6,942
Premises and equipment, net 1,312 1,454

Accrued interest and other assets

27,734 21,654
Allowance for loan losses (8,009 ) (6,706 )
Total Assets $ 1,074,807 $ 922,496
Interest-bearing liabilities:
Interest checking $ 191,212 0.94 % $ 214,194 0.78 %
Savings and money market 191,634 0.99 % 155,678 0.63 %
Time deposits 256,661 1.43 % 186,339 1.25 %
Wholesale deposits 99,102 1.57 % 69,185 0.92 %
Total interest-bearing deposits 738,609 1.21 % 625,396 0.90 %
Other borrowed funds 7,472 1.84 % 24,574 1.08 %

Subordinated notes, net of issuance costs

24,344 6.54 % 24,265 6.57 %
Total interest-bearing liabilities 770,425 1.39 % 674,235 1.11 %
Noninterest-bearing liabilities:
Noninterest-bearing deposits 201,457 163,276
Other liabilities 1,821 1,987
Stockholders’ equity 101,104 82,998
Total Liabilities and Stockholders' Equity $ 1,074,807 $ 922,496

Net Interest Margin (2)

3.45 % 3.45 %

(1)

Non-accrual loans are included in average balances.

(2)

The average yields for investment securities are reported on a fully taxable-equivalent basis at a rate of 21% for 2018 and 34.5% for 2017.

(3)

The average balances for investment securities includes restricted stock.

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