Virginia Commerce Bancorp (VCBI, Financial) filed Quarterly Report for the period ended 2010-09-30.
Virginia Commerce Bancorp has a market cap of $167.4 million; its shares were traded at around $5.8 with a P/E ratio of 10.2 and P/S ratio of 1.1.
Total assets increased $120.7 million, or 4.4%, from $2.73 billion at December 31, 2009, to $2.85 billion at September 30, 2010, as total deposits grew $94.2 million, or 4.2%, from $2.23 billion to $2.32 billion. Loans, net of allowance for loan losses, were down $32.0 million, or 1.4%, with one-to-four family residential real estate loans up $15.7 million, or 3.9%, non-farm, non-residential real estate loans up $13.6 million, or 1.2%, real estate construction loans down $52.8 million, or 12.3%, and commercial loans down $30.4 million, or 12.8%. Year-to-date loan production has been negatively impacted by lower economic activity and demand for credit in both the business and consumer sectors, a reallocation of lending personnel to problem loan identification and resolution and a strategic decision to restrict acquisition, development and construction lending and an increased emphasis on deposit generation and non-credit products. Lending efforts are being focused on building greater market share in commercial lending, especially in sectors forecast for growth, such as government contract lending, professional practices and associations and select service industries, with strategic hiring, marketing campaigns and calling efforts.
Total deposit growth of $94.2 million during the nine months ended September 30, 2010 included an increase in demand deposits of $30.1 million, or 12.6%, from $239.6 million at December 31, 2009, to $269.7 million at September 30, 2010, an increase in savings and interest-bearing demand deposits of $238.6 million, or 24.2%, and a decrease in time deposits of $174.5 million, or 17.4%. The majority of the Banks deposits are attracted from individuals and businesses in the Northern Virginia and the Metropolitan Washington, D.C. area. The increases in demand deposits are primarily due to successful deposit gathering efforts led by the Companys team of eight business development officers who are focused on acquisition and retention of commercial operating funds, cash management services and other related cross-sales. The increases in savings and interest-bearing demand deposits were due primarily to success with the Companys MEGA Savings and MEGA Checking account products as well as its Premier Interest Checking for non-profits. The declines in time deposits are reflective of lower loan volume requiring lower levels of funding, and strategic pricing of certificates of deposits relative to both the competitive market and the Companys pricing on interest-bearing transaction accounts. The proportionate share of time deposits to total deposits has declined from a peak of 67.2% at year-end 2008, to 45.1% at December 31, 2009, and to 35.7% as of September 30, 2010. Brokered certificates of deposit represent $30.0 million of total time deposits, or 1.3% of total deposits, at September 30, 2010.
As noted, for the nine months ended September 30, 2010, the Company recorded net income to common stockholders of $13.2 million as compared to a net loss of $40.8 million for the nine months ended September 30, 2009, as net interest income increased $12.1 million, or 18.2%, non-interest income increased $5.9 million, and non-interest expense rose $2.6 million, or 6.5%, and provisions for loan losses were down $67.3 million. The Companys annualized return on average assets and return on average equity were 0.81% and 9.92% for the current nine month period compared to a negative 1.83% and a negative 20.36% for the nine months ended September 30, 2009.
For the three months ended September 30, 2010, the Company recorded net income to common stockholders of $5.7 million compared to a net loss of $31.1 million for the same period in 2009 as net interest income rose $3.8 million, or 16.1%, non-interest income increased $10.0 million, or 131.6%, non-interest expense increased $1.7 million, or 13.0%, and provisions for loan losses were down $43.9 million, or 89.6%. The return on average assets and return on average equity were 0.97% and 11.66% for the three months ended September 30, 2010, compared to negative 4.34% and negative 49.33% for the same period in 2009.
Stockholders equity increased $28.1 million, or 12.9%, from $218.9 million at December 31, 2009, to $247.0 million at September 30, 2010, with $9.3 million in net proceeds from the above referenced stock issuance, net income to common stockholders of $13.2 million, a $3.6 million increase in other comprehensive income related to the investment securities portfolio, and $969 thousand in proceeds and tax benefits related to the exercise of options by company directors and officers, and stock option expense credits. As a result of these changes the Companys Tier 1 capital ratio increased from 11.48% at December 31, 2009, to 12.96% at September 30, 2010, and its total qualifying capital ratio increased from 12.73% to 14.21%.
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Virginia Commerce Bancorp has a market cap of $167.4 million; its shares were traded at around $5.8 with a P/E ratio of 10.2 and P/S ratio of 1.1.
Highlight of Business Operations:
For the three months ended September 30, 2010, the Company recorded net income of $7.0 million. After an effective dividend of $1.3 million to the Treasury on preferred stock, the Company reported net income to common stockholders of $5.7 million, or $0.20 per diluted common share, compared to a net loss to common stockholders of $31.1 million, or $1.17 per diluted common share, in the third quarter of 2009. For the nine months ended September 30, 2010, the Company reported net income to common stockholders of $13.2 million, or $0.46 per diluted common share, compared to a net loss to common stockholders of $40.8 million, or $1.53 per diluted common share, for the same period in 2009. Earnings improvement for both the three- and nine-month periods were attributable to lower provisions for loan losses and a higher net interest margin. Core operating earnings for the three months ended September 30, 2010, were $14.6 million, up $2.3 million, or 18.7%, compared to $12.3 million for the three months ended September 30, 2009. The Company calculates core operating earnings by excluding taxes, provisions for loan losses, losses on other real estate owned and impairment losses on securities from net income. In the current three-month period, the Company is also excluding from net income $1.0 million in bank-owned life insurance death benefits received.Total assets increased $120.7 million, or 4.4%, from $2.73 billion at December 31, 2009, to $2.85 billion at September 30, 2010, as total deposits grew $94.2 million, or 4.2%, from $2.23 billion to $2.32 billion. Loans, net of allowance for loan losses, were down $32.0 million, or 1.4%, with one-to-four family residential real estate loans up $15.7 million, or 3.9%, non-farm, non-residential real estate loans up $13.6 million, or 1.2%, real estate construction loans down $52.8 million, or 12.3%, and commercial loans down $30.4 million, or 12.8%. Year-to-date loan production has been negatively impacted by lower economic activity and demand for credit in both the business and consumer sectors, a reallocation of lending personnel to problem loan identification and resolution and a strategic decision to restrict acquisition, development and construction lending and an increased emphasis on deposit generation and non-credit products. Lending efforts are being focused on building greater market share in commercial lending, especially in sectors forecast for growth, such as government contract lending, professional practices and associations and select service industries, with strategic hiring, marketing campaigns and calling efforts.
Total deposit growth of $94.2 million during the nine months ended September 30, 2010 included an increase in demand deposits of $30.1 million, or 12.6%, from $239.6 million at December 31, 2009, to $269.7 million at September 30, 2010, an increase in savings and interest-bearing demand deposits of $238.6 million, or 24.2%, and a decrease in time deposits of $174.5 million, or 17.4%. The majority of the Banks deposits are attracted from individuals and businesses in the Northern Virginia and the Metropolitan Washington, D.C. area. The increases in demand deposits are primarily due to successful deposit gathering efforts led by the Companys team of eight business development officers who are focused on acquisition and retention of commercial operating funds, cash management services and other related cross-sales. The increases in savings and interest-bearing demand deposits were due primarily to success with the Companys MEGA Savings and MEGA Checking account products as well as its Premier Interest Checking for non-profits. The declines in time deposits are reflective of lower loan volume requiring lower levels of funding, and strategic pricing of certificates of deposits relative to both the competitive market and the Companys pricing on interest-bearing transaction accounts. The proportionate share of time deposits to total deposits has declined from a peak of 67.2% at year-end 2008, to 45.1% at December 31, 2009, and to 35.7% as of September 30, 2010. Brokered certificates of deposit represent $30.0 million of total time deposits, or 1.3% of total deposits, at September 30, 2010.
As noted, for the nine months ended September 30, 2010, the Company recorded net income to common stockholders of $13.2 million as compared to a net loss of $40.8 million for the nine months ended September 30, 2009, as net interest income increased $12.1 million, or 18.2%, non-interest income increased $5.9 million, and non-interest expense rose $2.6 million, or 6.5%, and provisions for loan losses were down $67.3 million. The Companys annualized return on average assets and return on average equity were 0.81% and 9.92% for the current nine month period compared to a negative 1.83% and a negative 20.36% for the nine months ended September 30, 2009.
For the three months ended September 30, 2010, the Company recorded net income to common stockholders of $5.7 million compared to a net loss of $31.1 million for the same period in 2009 as net interest income rose $3.8 million, or 16.1%, non-interest income increased $10.0 million, or 131.6%, non-interest expense increased $1.7 million, or 13.0%, and provisions for loan losses were down $43.9 million, or 89.6%. The return on average assets and return on average equity were 0.97% and 11.66% for the three months ended September 30, 2010, compared to negative 4.34% and negative 49.33% for the same period in 2009.
Stockholders equity increased $28.1 million, or 12.9%, from $218.9 million at December 31, 2009, to $247.0 million at September 30, 2010, with $9.3 million in net proceeds from the above referenced stock issuance, net income to common stockholders of $13.2 million, a $3.6 million increase in other comprehensive income related to the investment securities portfolio, and $969 thousand in proceeds and tax benefits related to the exercise of options by company directors and officers, and stock option expense credits. As a result of these changes the Companys Tier 1 capital ratio increased from 11.48% at December 31, 2009, to 12.96% at September 30, 2010, and its total qualifying capital ratio increased from 12.73% to 14.21%.
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