Continued Growth in Profitability, Net Interest Income and Margin

FVCBankcorp, Inc. (NASDAQ: FVCB) (the “Company”) today reported its financial results for the fourth quarter and full year of 2024.

Fourth Quarter Selected Financial Highlights

• Net Income Increased 5% Compared to the Prior Quarter. Net income totaled $4.9 million, or $0.26 diluted earnings per share, for the quarter ended December 31, 2024, compared to net income of $4.7 million, or $0.25 diluted earnings per share, for the quarter ended September 30, 2024. Return on average assets for the quarter ended December 31, 2024 was 0.90%, an increase from 0.85% for the quarter ended September 30, 2024.
• Net Interest Margin Improved 17% Compared to the Year Ago Quarter. Net interest income increased $2.3 million, or 18%, to $14.9 million for the fourth quarter 2024, compared to $12.7 million for the year ago quarter ended December 31, 2024. Net interest margin increased 40 basis points, or 17%, to 2.77% for the fourth quarter of 2024, compared to 2.37% for the fourth quarter of 2023. On a linked quarter basis, net interest margin increased 13 basis points, or 5%, from 2.64% for the three months ended September 30, 2024, the fourth consecutive quarter of margin improvement.
• Noninterest Expense Decreased 2% for Both Fourth Quarter and Full Year 2024. Noninterest expense for the quarter ended December 31, 2024 totaled $9.0 million, a decrease of $194 thousand, or 2%, when compared to the linked quarter ended September 30, 2024 and decreased $400 thousand, or 4%, when compared to the year ago quarter ended December 31, 2023. The efficiency ratio for the quarter ended December 31, 2024 improved to 58.6%. Year-over-year, noninterest expense decreased $842 thousand, or 2%.
• 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 14.73% at December 31, 2024, compared to 13.83% at December 31, 2023, an increase of 7%. The tangible common equity ("TCE") to tangible assets ("TA") ratio for the Bank increased to 10.87% at December 31, 2024, from 10.12% at December 31, 2023. The Bank’s investment securities are classified as available-for-sale, and therefore the unrealized losses on these securities is fully reflected in the TCE/TA ratio.

For the three months ended December 31, 2024, the Company recorded net income of $4.9 million, or $0.26 diluted earnings per share, compared to a net loss of $5.1 million, or $0.28 diluted loss per share, for the quarter ended December 31, 2023. During the fourth quarter of 2023, the Company sold a portion of its investment portfolio totaling $61.4 million of book value available-for-sale securities which resulted in an after-tax loss of $8.5 million. In addition, the Company reduced excess office space and consolidated two branch locations which resulted in $336 thousand in lease write-offs and severance costs.

For the year ended December 31, 2024, the Company reported net income of $15.1 million, or $0.82 diluted earnings per share, an increase of $11.2 million, compared to net income of $3.8 million, or $0.21 diluted earnings per share for the year ended December 31, 2023. 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 Company’s tax provisioning related to the gain associated with the cash payout. For the year ended December 31, 2023, net income included after-tax losses totaling $12.2 million related to sale of $101.7 million in book value available-for-sale investment securities and nonrecurring noninterest expense totaling $457 thousand for office space reductions and severance costs.

Commercial bank operating earnings (non-GAAP) exclude the above noted taxes recorded for the aforementioned BOLI surrender during 2024 and the losses on the sale of available-for-sale investment securities during 2023 along with the office space reductions and severance costs. Excluding these nonrecurring items, commercial bank operating earnings for the quarters ended December 31, 2024 and 2023 were $4.9 million and $3.8 million, respectively, an increase of $1.1 million, or 30%. Commercial bank operating earnings for the year ended December 31, 2024 and 2023 were $17.4 million and $16.3 million, respectively, an increase of $1.1 million, or 7%. Diluted commercial bank operating earnings per share (non-GAAP) for the three months ended December 31, 2024 and 2023 were $0.26 and $0.21, respectively. Diluted commercial bank operating earnings per share (non-GAAP) for the year ended December 31, 2024 and 2023 were $0.95 and $0.90, 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 made extensive progress during 2024 to improve our profitability due to our continued focus on quality core growth, increased net interest margin, and improved efficiency. 2024 proved that the difficult decisions we made on balance sheet repositionings during 2023 were appropriate. We are focused on improving upon the progress made during 2024, with continued core loan and deposit growth. Our relationship banking model has allowed us to increase our commercial loan outstandings and commitments, and reduce our reliance on commercial real estate loans. In addition, our approach to balance technology offerings with exceptional personalized customer service continues to support the expansion of our client base. Each of these strategies continues to increase shareholder value, still the driver of every core initiative of FVCbank.”

Statement of Condition

Total assets were $2.20 billion at December 31, 2024 and $2.19 billion at December 31, 2023, an increase of $8.4 million.

Loans receivable, net of deferred fees, were $1.87 billion at December 31, 2024 and $1.83 billion at December 31, 2023, an increase of $41.7 million, or 2%. During the fourth quarter of 2024, loan originations totaled $36.5 million with a weighted average rate of 7.84%, and were primarily comprised of commercial and industrial loans. Loan renewals totaled $21.5 million and had a weighted average rate of 8.45%. Loans that paid off during the fourth quarter of 2024 totaled $44.4 million and had a weighted average rate of 6.12%, and were primarily comprised of commercial real estate and construction loans.

Investment securities were $156.7 million at December 31, 2024 and $171.9 million at December 31, 2023. During the year ended December 31, 2024, investment securities decreased $15.1 million, due primarily to principal repayments and maturities totaling $15.7 million, and an increase in the portfolio’s unrealized losses totaling $1.3 million.

Total deposits were $1.87 billion at December 31, 2024 and $1.85 billion at December 31, 2023, an increase of $25.3 million. Noninterest-bearing deposits were $365.7 million at December 31, 2024, or 19.5% of total deposits, and decreased $31.1 million during 2024, as customers continue to move to interest-bearing deposit products. New noninterest-bearing deposits totaled $10.2 million for the quarter ended December 31, 2024. As a member of the IntraFi Network, the Bank offers products to its customers who seek to maximize FDIC insurance protection (“reciprocal deposits”). At December 31, 2024 and December 31, 2023, reciprocal deposits totaled $269.7 million and $254.1 million, respectively, and are considered part of the Company’s core deposit base. Time deposits decreased $58.2 million to $248.2 million during 2024 as time deposits that were originated during 2023 with a weighted average rate of 4.81% matured during 2024. The Company continues to have consistent core deposit inflows at lower interest rates.

At December 31, 2024, wholesale funding totaled $299.9 million and had a weighted average rate of 3.44% (including $250 million in pay-fixed/receive-floating interest rate swaps at an average rate of 3.25%). Wholesale funding at December 31, 2024 includes wholesale deposits totaling $249.9 million and other borrowed funds totaling $50.0 million. For the quarter ended December 31, 2024, the cost of wholesale funding was 3.57% compared to a cost of 3.73% for the year ended December 31, 2024.

Shareholders’ equity at December 31, 2024 was $235.4 million, an increase of $18.2 million, or 8%, from December 31, 2023. Earnings for the full year of 2024 earnings contributed $15.1 million to the increase in shareholders’ equity. Common stock issued during 2024 for stock options exercised contributed $2.1 million to shareholders’ equity. Accumulated other comprehensive loss decreased $894 thousand for the year ended December 31, 2024, which was primarily related to the change in the Company’s other comprehensive income associated with its cash flow hedges at December 31, 2024.

Tangible book value per share (a non-GAAP financial measure which is defined in the tables below) at December 31, 2024 and December 31, 2023 was $12.52 and $11.77, respectively, an increase of 6%. 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, 2024 and December 31, 2023 was $13.80 and $13.12, respectively.

The Bank was well-capitalized at December 31, 2024, with total risk-based capital ratio of 14.73%, common equity tier 1 risk-based capital ratio of 13.74%, and tier 1 leverage ratio of 11.74%.

Asset Quality

For each of the three month periods ended December 31, 2024 and 2023, the Company recorded no provision for credit losses. For the years ended December 31, 2024 and 2023, the Company recorded provision for credit losses totaling $6 thousand and $132 thousand, respectively At December 31, 2024 and 2023, the allowance for credit losses (“ACL”) was $18.1 million and $18.9 million, respectively. The ACL to total loans, net of fees, was 0.97% at December 31, 2024, compared to 1.03% at December 31, 2023. The decrease in the ACL was primarily attributable to the improved economic forecast used for the quantitative portion of the ACL calculation during 2024 and a decrease in reserves for individually evaluated loans due to two loan charge-offs recorded during the fourth quarter of 2024.

Nonaccrual loans and loans 90 days or more past due at December 31, 2024 totaled $12.8 million, or 0.58% of total assets, compared to $1.8 million, or 0.08% of total assets, at December 31, 2023. The increase in nonperforming loans at December 31, 2024 is primarily a result of one commercial real estate loan placed on nonaccrual during the fourth quarter of 2024, totaling $10.3 million, which is well collateralized. Total watchlist loans decreased $14.3 million, or 50%, to $14.5 million at December 31, 2024 compared to December 31, 2023. The Company had no other real estate owned at December 31, 2024 and 2023.

The Company recorded net charge-offs of $937 thousand and $839 thousand for the three and twelve months ended December 31, 2024, respectively. The increase in net charge-offs for the quarter and year ended December 31, 2024 is a result of two loan relationships that were individually evaluated in prior periods and for which reserves had been established for the shortfall of the related collateral. Each loan relationship had specific circumstances that are not indicative of any systemic issues within the Company’s loan portfolio. The specific reserves on these loans totaled $802 thousand, and contributed to the decrease in the ACL as these specific reserves were applied to the loans when they were determined uncollectible.

At December 31, 2024, commercial real estate loans totaled $1.04 billion, or 56% of total loans, net of fees, and construction loans totaled $162.4 million, or 9% of total loans, net of fees. Included in commercial real estate loans are loans secured by office properties totaling $123.8 million, or 7% of total loans, which are primarily located in the Virginia and Maryland suburbs of the Company’s market area, with only $2.3 million, or 0.12% of total loans, located in Washington, D.C. Loans secured by retail properties totaled $251.0 million, or 13% of total loans, at December 31, 2024. Loans secured by multi-family properties totaled $162.8 million, or 9% of total loans, at December 31, 2024. The commercial real estate portfolio, including construction loans, is diversified by asset type and geographic concentration. The Company manages this portion of the portfolio in a disciplined manner, and has comprehensive policies to monitor, measure, and mitigate its loan concentrations within this 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, 2024 (dollars in thousands).

The loans shown in the above table exhibit strong credit quality, with one classified delinquency at December 31, 2024 totaling $10.2 million, which has a specific reserve totaling $468 thousand. During its assessment of the allowance for credit losses, 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 year ended December 31, 2024, the Company recorded income of $376 thousand compared to a loss of $1.1 million for the year ended December 31, 2023, related to its investment in Atlantic Coast Mortgage (“ACM”). For the three months ended December 31, 2024 and 2023, the Company reported a loss of $49 thousand and income of $321 thousand, respectively. 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 $4.9 million for the three months ended December 31, 2024 compared to a loss of $5.1 million for the three months ended December 31, 2023. Compared to the linked quarter, net income for the three months ended December 31, 2024 increased $231 thousand, or 5%, from $4.7 million for the three months ended September 30, 2024.

Net interest income increased $2.3 million, or 18%, to $14.9 million for the quarter ended December 31, 2024, compared to $12.7 million for the fourth quarter of 2023, and increased $699 thousand, or 5%, compared to the linked quarter ended September 30, 2024. Compared to the year ago quarter ended December 31, 2023, the increase in net interest income for the fourth quarter of 2024 was primarily due to an increase in loan interest income as the loan portfolio reprices in this high interest rate environment.

The Company's net interest margin increased 40 basis points to 2.77% for the quarter ended December 31, 2024 compared to 2.37% for the quarter ended December 31, 2023, and increased 13 basis points from 2.64% for the linked quarter ended September 30, 2024. The increase in net interest margin is a result of continued improvement in the yields of the Company’s loan portfolio and its management to control funding costs.

Compared to the year ago quarter, interest income increased $2.6 million, or 10%, to $29.3 million, for the fourth quarter of 2024 compared to the quarter ended December 31, 2023. Loan interest income increased $2.8 million, or 11%, to $27.5 million for the three months ended December 31, 2024, compared to $24.7 million for the three months ended December 31, 2023, as average total loans increased $49.9 million during this same comparable period. The Company has actively managed its maturing commercial real estate loan portfolio and further diversified its loan mix toward commercial & industrial loans, which generally earn higher yields. For the sixth consecutive quarter, the Company recorded an increase in loan yields. Loan yields increased 45 basis points to 5.87% for the three months ended December 31, 2024 compared to the same period of 2023. The yield on earning assets increased 45 basis points to 5.47% for the three months ended December 31, 2024 compared to 5.02% for the same period of 2023, partially as a result of the balance sheet repositionings completed during 2023 along with the repricing of the Company’s variable rate loan portfolio and new loan originations.

At December 31, 2024, approximately $459.8 million, or 30%, of the Company’s commercial loan portfolio, which is comprised of the following, is expected to reprice in the next 12 months: $113.1 million in fixed rate commercial loans, and $24.1 million in variable rate commercial loans, with an additional $322.6 million in floating rate loans priced currently at market rates. Within the following 24-36 months, $253.1 million in fixed rate commercial loans are scheduled to reprice and an additional $101.0 million in variable rate commercial loans are scheduled to reprice, representing 23% of the current 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.

Interest expense increased $376 thousand, or 3%, to $14.4 million, for the quarter ended December 31, 2024, compared to $14.0 million for the quarter ended December 31, 2023. On a linked quarter basis, interest expense decreased $651 thousand, or 4%, compared to the quarter ended September 30, 2024. Interest expense on deposits increased $819 thousand to $13.6 million for the three months ended December 31, 2024 compared to the three months ended December 31, 2023, reflecting the increase in average balances of non-maturity deposits during 2024. On a linked quarter basis, interest expense on deposits decreased $627 thousand, or 4%, from $14.2 million for the quarter ended September 30, 2024. The cost of deposits (which includes noninterest-bearing deposits) for the fourth quarter ended December 31, 2024 was 2.92%, a decrease of 12 basis points from the previous quarter end. Interest expense on other borrowed funds for the quarter ended December 31, 2024 decreased $440 thousand, or 45%, to $542 thousand from $982 thousand, for the quarter ended December 31, 2023. The cost of interest-bearing liabilities for the fourth quarter of 2024 was 3.64% compared to 3.80% for the third quarter of 2024, a decrease of 16 basis points compared to an increase of 9 basis points from 3.55% for the year ago quarter, demonstrating the Company’s ability to reprice funding costs downward simultaneously with federal funds rate decisions during 2024. The Company continues to decrease interest rates on its various deposit products going into 2025.

Net interest income for the twelve months ended December 31, 2024 and 2023 was $55.6 million and $54.4 million, respectively, an increase of $1.2 million, or 2%, year-over-year. Interest income increased $6.7 million, or 6%, to $113.3 million for the twelve months ended December 31, 2024 as compared to $106.6 million for the comparable 2023 period. Interest expense totaled $57.7 million for the twelve months ended December 31, 2024, an increase of $5.5 million, compared to $52.2 million for the twelve months ended December 31, 2023. The Company’s net interest margin for the twelve months ended December 31, 2024 increased 13 basis points, or 5%, to 2.62% compared to 2.49% for the year ago twelve month period of 2023.

Noninterest income for the three months ended December 31, 2024 totaled $452 thousand compared a loss of $9.9 million for the three months ended December 31, 2023 and $815 thousand for the three months ended September 30, 2024.

Fee income from loans was $43 thousand for the quarter ended December 31, 2024, compared to $35 thousand for the fourth quarter of 2023. Service charges on deposit accounts totaled $285 thousand for the fourth quarter of 2024, compared to $296 thousand for the year ago quarter. Income from BOLI decreased $314 thousand to $71 thousand for the three months ended December 31, 2024, compared to $385 thousand for the same period of 2023, a direct result of the Company's surrender of BOLI policies in the first quarter of 2024. As previously mentioned, the Company recorded a loss of $49 thousand in connection with its minority interest in ACM for the three months ended December 31, 2024, compared to income of $321 thousand for the same period of 2023, and income of $278 thousand for the linked quarter ended September 30, 2024.

For the year ended December 31, 2024, the Company recorded noninterest income totaling $2.5 million, compared to a loss of $13.4 million for the year ended December 31, 2023, which was primarily associated with its securities sales transaction executed during 2023. Fee income from loans was $185 thousand for the year ended December 31, 2024, compared to $388 thousand for the year ended December 31, 2023, which included fee income from back-to-back loan swap transactions entered into during 2023 totaling $187 thousand. Service charges on deposit accounts totaled $1.1 million for the year ended December 31, 2024, compared to $1.0 million for the prior year. Income from BOLI decreased $1.1 million to $397 thousand for the year ended December 31, 2024, compared to $1.5 million for the year ended December 31, 2023, a direct result of the surrendered BOLI that occurred during the first quarter of 2024. Income from the Company’s minority interest in ACM was $376 thousand for the year ended December 31, 2024, compared to a loss of $1.1 million for the same period of 2023.

Noninterest expense totaled $9.0 million for the quarter ended December 31, 2024, a decrease of $400 thousand, or 4%, compared to $9.4 million for the year ago quarter ended December 31, 2023, which included $336 thousand in costs associated with the Company’s office space reduction efforts in 2023. On a linked quarter basis, noninterest expense decreased $194 thousand, or 2%, from $9.2 million for the three months ended September 30, 2024, primarily due to a decrease in salaries and benefits expense during the fourth quarter of 2024. Compared to the year ago quarter, salaries and benefits expense decreased $590 thousand, or 11%, for the three months ended December 31, 2024. The decreases in salaries and benefits expense is primarily a result of reduced staffing and process improvement through the use of technology. Full-time equivalent employees have decreased from 118 at December 31, 2023 to 112 at December 31, 2024, which includes vacancies that are in the process of being filled.

Internet banking and software expense increased $159 thousand to $860 thousand for the fourth quarter of 2024 compared to the quarter ended December 31, 2023, primarily as a result of the implementation of enhanced customer software solutions. Other operating expenses totaled $1.4 million for fourth quarter of 2024 compared to $1.2 million for the year ago quarter ended December 31, 2023, an increase of $270 thousand, which was primarily a result of loan workout expenses that were collected by the Bank during the fourth quarter of 2023. The Company continues to identify and assess opportunities to reduce operating expenses.

For the years ended December 31, 2024 and 2023, noninterest expense was $35.8 million and $36.7 million, respectively, a decrease of $842 thousand, or 2%, primarily as a result of the aforementioned decreases in salaries and benefits expenses. Additionally, occupancy expense decreased $330 thousand to $2.0 million for the year ended December 31, 2024 as compared to $2.4 million for the year ended December 31, 2023, a direct result of the reduction in office space that occurred during 2023. Internet banking and software expense increased $485 thousand to $3.0 million for full year 2024 compared to $2.5 million for 2023, primarily as a result of the implementation of enhanced customer software solutions. Other operating expenses totaled $6.0 million for the year ended December 31, 2024 compared to $5.2 million for the year ended December 31, 2023, an increase of $827 thousand, which was primarily a result of loan workout expenses that were reimbursed to the Bank during 2023.

The efficiency ratio for core bank operating earnings (non-GAAP) for the quarters ended December 31, 2024, September 30, 2024, and December 31, 2023, was 58.6%, 61.2%, and 65.8%, respectively. For the years ended December 31, 2024 and 2023, the efficiency ratio for core bank operating earnings (non-GAAP), was 61.6% and 64.0%, respectively. A reconciliation of the aforementioned efficiency ratio, a non-GAAP financial measure, can be found in the tables below.

The Company recorded a provision for income taxes of $1.5 million for the three months ended December 31, 2024 and a tax benefit of $1.5 million for the three months ended December 31, 2023. For the years ended December 31, 2024 and 2023, provisions for income taxes were $7.2 million and $410 thousand, respectively. The 2024 period includes an additional $2.4 million which is 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 $2.20 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 the Company serves 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 the Company provides and increases in loan delinquencies and defaults; 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 the Company’s liquidity requirements could be adversely affected by changes in its 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; 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 the Company does 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; the Company’s 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 the Company’s 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; geopolitical conditions, including acts or threats of terrorism, or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; the occurrence of significant natural disasters, including severe weather conditions, floods, health related issues or emergencies, and other catastrophic events; the management of risks inherent in the Company’s 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; 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 the Company may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions; the Company’s involvement, from time to time, in legal proceedings and examination and remedial actions by regulators; and potential exposure to fraud, negligence, computer theft and cyber-crime, and the Company’s ability to maintain the security of its data processing and information technology systems. 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, 2023, 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.