FVCBankcorp, Inc. (NASDAQ:FVCB) completed a private placement of $25 million of 6.75% fixed‑rate senior unsecured notes due March 1, 2029. The notes were sold to qualified institutional buyers and accredited investors and were oversubscribed, underscoring investor confidence in the bank’s financial strength.
The proceeds will be used for general corporate purposes, including bolstering the capital ratios of its subsidiary, FVCbank. The company also redeemed a $19 million outstanding subordinated debt on January 15, 2026 that had been converted to a floating‑rate instrument (3‑month SOFR plus 471 basis points, or 8.59%). By replacing the higher‑cost subordinated debt with lower‑rate senior notes, FVCBankcorp reduces its interest expense and improves its debt profile, providing a more stable, long‑term funding source to backfill the redeemed debt and support future lending and growth initiatives.
FVCBankcorp’s recent earnings reinforce the strategic value of the transaction. Net income rose 15% in Q4 2025 to $5.6 million, and the full‑year 2025 net income increased 46% to $22.1 million. Net interest income grew 13% in Q3 2025, while the efficiency ratio improved to 55.5% from 61.2% a year earlier, indicating tighter cost control and stronger profitability. These results demonstrate the bank’s solid performance and support the rationale for strengthening capital ratios.
FVCbank, a Virginia‑chartered community bank with $2.29 billion in assets, serves the greater Baltimore and Washington, D.C. metropolitan areas. Its capital ratios have consistently exceeded “well‑capitalized” thresholds, and the new notes will help maintain that position while providing flexibility for strategic expansion. The transaction also signals to investors that the bank can access capital markets on favorable terms even in a competitive environment.
"We are extremely pleased with the success of this transaction. This offering was oversubscribed, which demonstrates the confidence our investors have in our financial strength. The notes issuance allows us to be supportive of the communities we serve through continued organic and strategic growth of the Company," said David W. Pijor, Chairman and CEO of FVCBankcorp.
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