Virginia Commerce Bancorp (VCBI, Financial) filed Quarterly Report for the period ended 2009-03-31.
Virginia Commerce Bancorp Inc. is the holding company for Virginia Commerce Bank. The Company engages in a general commercial banking business through its sole direct subsidiary the Bank. Virginia Commerce Bancorp has a market cap of $88.9 million; its shares were traded at around $3.3299 with a P/E ratio of 16.7 and P/S ratio of 0.5. Virginia Commerce Bancorp had an annual average earning growth of 25.3% over the past 5 years.
Total assets increased $57.0 million, or 2.1%, from $2.72 billion at December 31, 2008, to $2.77 billion at March 31, 2009, as total deposits grew $67.2 million, or 3.1%, from $2.17 billion to $2.24 billion, while loans, net of allowance for loan losses, were down $29.1 million, or 1.3%, with non-farm, non-residential real estate loans up $11.2 million, construction loans down $23.9 million, one-to-four family residential real estate loans mostly unchanged and commercial loans down $14.2 million. Loan production for the quarter was negatively impacted by declining demand in both the business and consumer sectors and higher than normal run-off. However, favorable
Total deposit growth of $67.2 million included an increase in demand deposits of $23.8 million, or 12.2%, from $194.8 million at December 31, 2008, to $218.6 million at March 31, 2009, an increase in interest-bearing demand deposits of $130.2 million, or 25.1%, and a decrease in time deposits of $86.8 million, or 5.9%. The majority of the Banks deposits are attracted from individuals and businesses in the Northern Virginia and the Metropolitan Washington, D.C. area. The decline in time deposits in the first quarter is reflective of a strategy to reduce the Banks historically heavy reliance on certificates of deposit to achieve deposit growth. The proportionate share of time deposits relative to total deposits declined from 67.2% at year-end 2008 to 61.3% as of March 31, 2009. We anticipate a further decline in that percentage as our deposit gathering efforts are increasingly focused on demand deposits as well as cross-selling activities tied to the acquisition of savings and interest-bearing demand accounts. Repurchase agreements, the majority of which represent sweep funds of significant commercial demand deposit customers, and Fed funds purchased decreased $3.8 million from $188.0 million at December 31, 2008, to $184.2 million.
As noted, for the three months ended March 31, 2009, the Company recorded a net loss to common stockholders of $3.2 million compared to earnings of $4.1 million for the three months ended March 31, 2008, as net interest income increased $1.3 million, or 6.6%, non-interest income increased $189 thousand, or 11.6%, non-interest expense rose $2.2 million, or 20.7% and provisions for loan losses were up $9.3 million. The Company also paid an effective dividend on preferred shares of $787 thousand. Stockholders equity decreased $3.4 million, or 1.3%, from $253.3 million at December 31, 2008, to $249.9 million at March 31, 2009.
Net Interest Income Net interest income is the excess of interest earned on loans and investments over the interest paid on deposits and borrowings and is the Companys primary revenue source. Net interest income is thereby affected by overall balance sheet growth, changes in interest rates and changes in the mix of investments, loans, deposits and borrowings. Net interest income increased $1.3 million, or 6.6%, from $19.5 million for the three months ended March 31, 2008, to $20.8 million for the current three month period due to overall balance sheet growth as the Companys net interest margin declined nineteen basis points from 3.34% in the first quarter of 2008 to 3.15% for the current three-month period, and was down four basis points from 3.19% in the fourth quarter of 2008.
The provision for loan losses is based upon managements estimate of the amount required to maintain an adequate allowance for loan losses reflective of the risks in the loan portfolio. For the three months ended March 31, 2009, provisions for loan losses were $13.4 million compared to $4.1 in the same period in 2008. This was due to a $37.2 million increase in non-performing assets and loans 90+ days past due from $124.9 million at December 31, 2008, to $162.1 million at March 31, 2009, and $12.4 million in net charge-offs during the quarter, or 0.53% of average loans outstanding. In addition, other potential problem loans, which, although well-secured and currently performing, are classified as impaired, and in some instances require higher reserve levels, increased from $49.3 million at December 31, 2008, to $53.8 million at March 31, 2009. As a result, the allowance for loan losses to total loans rose from 1.58% at December 31, 2008, to 1.64% as of March 31, 2009. See Risk Elements and Non-performing Assets for additional discussion relating to the increase in non-performing assets and potential problem loans.
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Virginia Commerce Bancorp Inc. is the holding company for Virginia Commerce Bank. The Company engages in a general commercial banking business through its sole direct subsidiary the Bank. Virginia Commerce Bancorp has a market cap of $88.9 million; its shares were traded at around $3.3299 with a P/E ratio of 16.7 and P/S ratio of 0.5. Virginia Commerce Bancorp had an annual average earning growth of 25.3% over the past 5 years.
Highlight of Business Operations:
For the three months ended March 31, 2009, the Company recorded a net operating loss of $2.4 million. After an effective dividend of $787 thousand on preferred stock, the Company reported a net loss to common stockholders of $3.2 million, or $0.12 per diluted common share, compared to earnings of $4.1 million, or $0.15 per diluted common share in the first quarter of 2008. Earnings for the quarter were significantly impacted by $13.4 million in loan loss provisions due to increases in the level of non-performing assets and $12.4 million in net charge-offs.Total assets increased $57.0 million, or 2.1%, from $2.72 billion at December 31, 2008, to $2.77 billion at March 31, 2009, as total deposits grew $67.2 million, or 3.1%, from $2.17 billion to $2.24 billion, while loans, net of allowance for loan losses, were down $29.1 million, or 1.3%, with non-farm, non-residential real estate loans up $11.2 million, construction loans down $23.9 million, one-to-four family residential real estate loans mostly unchanged and commercial loans down $14.2 million. Loan production for the quarter was negatively impacted by declining demand in both the business and consumer sectors and higher than normal run-off. However, favorable
Total deposit growth of $67.2 million included an increase in demand deposits of $23.8 million, or 12.2%, from $194.8 million at December 31, 2008, to $218.6 million at March 31, 2009, an increase in interest-bearing demand deposits of $130.2 million, or 25.1%, and a decrease in time deposits of $86.8 million, or 5.9%. The majority of the Banks deposits are attracted from individuals and businesses in the Northern Virginia and the Metropolitan Washington, D.C. area. The decline in time deposits in the first quarter is reflective of a strategy to reduce the Banks historically heavy reliance on certificates of deposit to achieve deposit growth. The proportionate share of time deposits relative to total deposits declined from 67.2% at year-end 2008 to 61.3% as of March 31, 2009. We anticipate a further decline in that percentage as our deposit gathering efforts are increasingly focused on demand deposits as well as cross-selling activities tied to the acquisition of savings and interest-bearing demand accounts. Repurchase agreements, the majority of which represent sweep funds of significant commercial demand deposit customers, and Fed funds purchased decreased $3.8 million from $188.0 million at December 31, 2008, to $184.2 million.
As noted, for the three months ended March 31, 2009, the Company recorded a net loss to common stockholders of $3.2 million compared to earnings of $4.1 million for the three months ended March 31, 2008, as net interest income increased $1.3 million, or 6.6%, non-interest income increased $189 thousand, or 11.6%, non-interest expense rose $2.2 million, or 20.7% and provisions for loan losses were up $9.3 million. The Company also paid an effective dividend on preferred shares of $787 thousand. Stockholders equity decreased $3.4 million, or 1.3%, from $253.3 million at December 31, 2008, to $249.9 million at March 31, 2009.
Net Interest Income Net interest income is the excess of interest earned on loans and investments over the interest paid on deposits and borrowings and is the Companys primary revenue source. Net interest income is thereby affected by overall balance sheet growth, changes in interest rates and changes in the mix of investments, loans, deposits and borrowings. Net interest income increased $1.3 million, or 6.6%, from $19.5 million for the three months ended March 31, 2008, to $20.8 million for the current three month period due to overall balance sheet growth as the Companys net interest margin declined nineteen basis points from 3.34% in the first quarter of 2008 to 3.15% for the current three-month period, and was down four basis points from 3.19% in the fourth quarter of 2008.
The provision for loan losses is based upon managements estimate of the amount required to maintain an adequate allowance for loan losses reflective of the risks in the loan portfolio. For the three months ended March 31, 2009, provisions for loan losses were $13.4 million compared to $4.1 in the same period in 2008. This was due to a $37.2 million increase in non-performing assets and loans 90+ days past due from $124.9 million at December 31, 2008, to $162.1 million at March 31, 2009, and $12.4 million in net charge-offs during the quarter, or 0.53% of average loans outstanding. In addition, other potential problem loans, which, although well-secured and currently performing, are classified as impaired, and in some instances require higher reserve levels, increased from $49.3 million at December 31, 2008, to $53.8 million at March 31, 2009. As a result, the allowance for loan losses to total loans rose from 1.58% at December 31, 2008, to 1.64% as of March 31, 2009. See Risk Elements and Non-performing Assets for additional discussion relating to the increase in non-performing assets and potential problem loans.
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