Morningstar DBRS announced on December 1, 2025 that it has assigned initial long‑term issuer ratings of BBB (low) with a stable outlook to FVCBankcorp, Inc. and BBB with a stable outlook to its subsidiary FVCbank. The ratings place both entities within the investment‑grade spectrum, indicating a moderate level of credit risk that is expected to remain unchanged barring significant adverse developments.
The agency’s rationale centers on the banks’ recent financial turnaround. Net income rose 19% year‑over‑year in the third quarter of 2025, and the net interest margin climbed to 2.91%. Capital strength is robust, with a common equity tier 1 ratio of 15.07% as of March 31, 2025, comfortably above regulatory minimums. Asset quality has improved, with non‑performing loans falling and net recoveries increasing. Liquidity is diversified, with brokered deposits accounting for 11% of total funding and a sizable portfolio of investment securities.
Morningstar DBRS noted that FVCBank’s exposure to commercial real estate (CRE) is a key risk factor. As of September 30, 2025, CRE loans represented 63% of total loans and 330% of risk‑based capital. The holding company’s rating is one notch below the bank’s intrinsic assessment and carries a Support Assessment of SA3, meaning timely systemic support is not expected. These factors justify the “low” designation within the BBB range.
CEO David W. Pijor welcomed the ratings, stating they reflect the bank’s improved profitability, strong asset quality, well‑capitalized balance sheet, and diverse liquidity profile. He added that the ratings will support continued growth and help secure financing at competitive rates. President Patricia A. Ferrick highlighted the deepening of customer relationships through personalized service and technology solutions, underscoring the bank’s focus on customer‑centric growth.
The ratings are expected to reinforce market confidence in the bank’s strategy and financial health. While the investment‑grade status and stable outlook are positive, the significant CRE concentration remains a headwind that the bank is actively working to reduce. The rating upgrade should aid FVCBankcorp and FVCbank in accessing capital markets more favorably and in strengthening depositor and counterparty confidence.
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