VCBI Virginia Commerce Bancorp (MM)

Virginia Commerce Bancorp, Inc. (the �Company�), (Nasdaq:VCBI), parent company of Virginia Commerce Bank (the �Bank�), today reported a net loss of $3.2 million, or $0.12 per diluted common share, for the first quarter of 2009, compared with earnings of $4.1 million, or $0.15 per diluted common share, a year ago. The 2009 first quarter loss was primarily due to $13.4 million in provisions for loan losses versus $4.1 million for the same period in 2008, as non-performing assets and loans 90+ days past due rose to 5.84% of total assets, and $12.4 million in net-charge-offs were taken. Year-over-year assets, loans and deposits were up 10.9%, 7.7% and 10.8%, respectively.

Peter A. Converse, Chief Executive Officer, commented, �Our first quarter results are disappointing but certainly not surprising, as we began the process of aggressively working through our asset quality issues in the quarter. In 2008, we spent most of the year trying to get our arms around the magnitude of our problem loans as deteriorating market conditions accelerated. We seemed to be in a catch-up mode until the beginning of 2009. While economic recovery does not appear to be imminent, we now have a better grasp of the level of problem loans and probable future deterioration and are committed to fully utilizing operating earnings and, if necessary, our capital cushion, to significantly reduce them. This approach will entail continued building of loan loss reserves to enable the expedited disposition of non-performing assets and associated charge-offs. We are determined to reverse the trend of increasing NPAs and the associated burden on franchise value.�

Converse continued, �While normalizing asset quality is our top priority, we are also embarking on franchise enhancing strategies that involve repositioning our deposit and loan portfolios. Our reliance on CD funding for historically strong loan growth peaked at the end of 2008, with time deposits representing 67% of total deposits. With a disciplined approach to significantly reducing that deposit category, it has declined to 61% of deposits as of March 31, 2009, and is expected to finish the year in the 50-55% range. That decrease will be offset with strategies to increase lower cost deposit categories and enabled with slower loan growth. The repositioning of our loan portfolio, which began in 2008, involves a heightened focus on commercial and industrial (C&I) and residential real estate lending, a transitional process that will evolve over the course of 2009 and 2010. Obviously, loan demand, market conditions and prudent underwriting will dictate the level of success. However, increased C&I lending at any level will benefit our efforts to develop lower cost deposits as commercial loans involve a greater degree of non-interest bearing deposit relationships than other lending categories.�

Converse added, �While we continue to maintain a relatively low efficiency ratio, we have been ever more diligent in looking for overhead reduction opportunities. We will not open any more branches in 2009 and have undertaken a number of other prudent cost-cutting measures without impairing our ability to service customers.�

SUMMARY REVIEW OF FINANCIAL PERFORMANCE

Net (Loss) Income

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.

Asset Quality and Provisions For Loan Losses

Provisions for loan losses were $13.4 million for the three months ended March 31, 2009, compared to $4.1 million in the same period in 2008. This was due to an increase in non-performing assets and loans 90+ days past due from $25.2 million at March 31, 2008, to $124.9 million at December 31, 2008, and further increasing by $37. 2 million to $162.1 million as of March 31, 2009. In addition, net charge-offs for the three months ended March 31, 2009, were $12.4 million, or 0.53% of average loans outstanding. As of March 31, 2009, reserves for loan losses represented 1.64% of total loans, up from 1.58% at December 31, 2008.

As noted, non-performing assets and loans 90+ days past due increased during the quarter by $37.2 million, to 5.84% of total assets, with $17.7 million of the increase in loans 90+ days past due and a $19.5 million increase in non-performing assets. Of the total of $23.8 million in loans 90+ days past due, $15.4 million consisting of four credits represented problem loan workouts in the final stages of negotiation and/or documentation and $1.1 million represented loans in the process of renewal, not identified as a problem asset. The $19.5 million increase in non-performing assets included two land development loans totaling $18.8 million, which experienced defaults on lot takedown contracts with national and regional builders; $7.8 million in residential construction loans with two infill builders where projects are ongoing but, forbearance agreements are required due to the inability to service interest carry; a $2.7 million commercial construction loan on a completed building experiencing slow lease up; and two non-farm, non-residential loans totaling $3.2 million on buildings occupied by businesses in financial distress.

Non-performing loans continue to be concentrated in residential and commercial construction and land development loans in outer sub-markets hardest hit by the residential downturn and commercial and consumer credits experiencing the after shocks in sub-contracting businesses and workforce employment. Overall, as of March 31, 2009, $107.2 million or 85.2% of non-performing loans represented acquisition, development and construction loans.

Charge-offs for the quarter primarily related to the write-down to current fair market value of acquisition, development and construction loans or related other real estate owned by $9.2 million; the recognition of losses on $2.1 million in commercial and industrial loans predominantly to real estate-related or small business concerns; the write down to current fair market value of non-farm, non-residential loans and related other real estate owned by $200 thousand; and the balance attributable to residential mortgage, home equity line and consumer loan loss recognition totaling $1.1 million.

Other sectors, including non-farm, non-residential real estate and inner sub-markets of the broader loan portfolio, continue to perform well, with low levels of delinquencies at the present time. Additionally, the increase in loans 30-89 days past due appears to be decelerating on a quarter-to-quarter basis, and was significantly comprised of loans in the process of renewal not identified as problem assets in the current quarter. The market decline remains dynamic and Management intends to pursue more aggressive strategies for problem loan resolution and is committed to utilize earnings to the maximum extent necessary to absorb losses recognized in the pursuit of this strategy. The Company�s increased capital levels gives it an added cushion to do so.

Net Interest Income

Net interest income for the first quarter of $20.8 million was up $1.3 million, or 6.6% over the same quarter last year, due to overall balance sheet growth, as the net interest margin declined from 3.34% in the first quarter of 2008 to 3.15% for the three-month period ended March 31, 2009. On a sequential basis, the margin was down four basis points from 3.19% in the fourth quarter of 2008, with the reversal of $420 thousand (or six basis points of yield) in previously accrued interest on loans placed on non-accrual.

The year-over-year decline in the net interest margin is primarily the result of lower yields on loans due to reductions in the prime rate and increases in the level of non-performing loans. As a result, the yield on loans fell from 7.10% for the three months ended March 31, 2008, to 5.87% in the current period, and was down twenty-six basis points sequentially.

On the funding side, strong competition for deposits in the local market did not allow for the same level of decline in the cost of interest-bearing liabilities year-over-year, which declined from 4.06% for the three months ended March 31, 2008, to 2.98% in the current period. Sequentially, the margin was affected by the reversal of $420 thousand in previously accrued interest on non-performing loans and the carrying of a high level of Fed funds sold as net loans outstanding declined by $29.1 million during the quarter. With market interest rates expected to remain mostly unchanged through the remainder of 2009, and high levels of time deposits declining while repricing downward, Management anticipates the margin to average 3.25% for the year.

Non-Interest Income

Non-interest income for the first quarter was up $189 thousand, or 11.6%, from $1.6 million in 2008, to $1.8 million with a $370 thousand increase in fees and net gains on mortgage loans held-for-sale and a $125 thousand decline in other miscellaneous income items. Compared to the three months ended December 31, 2008, non-interest income was higher by $346 thousand with fees and net gains on mortgage loans held-for-sale again accounting for the majority of the increase.

Non-Interest Expense

Non-interest expense increased $2.2 million, or 20.7%, from $10.8 million in the first quarter of 2008, to $13.0 million in the current period, and was up $1.5 million from the three months ended December 31, 2008. The majority of the year-over-year increase was due to the opening of two new branch locations, one-time costs associated with the cancellation of a lease obligation for another branch location, collections expense associated with non-performing loans and OREO, and significantly higher FDIC insurance premiums. As a result of these increases in expenses, as well as slower overall revenue growth, the efficiency ratio rose from 51.2% in the first quarter of 2008 to 57.7% in the current period.

Loans

Loans, net of allowance for loan losses, increased $160.8 million, or 7.7%, from $2.1 billion at March 31, 2008, to $2.3 billion at March 31, 2009. Non-farm, non-residential real estate loans increased $94.9 million, or 10.2%, one-to-four family residential loans increased $71.1 million, or 24.8%, while real estate construction loans fell by $12.8 million, or 2.2%. Since December 31, 2008, net loans are down $29.1 million, or 1.3%, with non-farm non-residential loans up $11.2 million, construction loans down $23.9 million, one-to-four family residential 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 market rates enabled an increase in residential mortgage lending from $38.7 million in the first quarter of 2008 to $67.3 million for the quarter ending March 31, 2009, of which $61.1 million was available for sale.

Deposits

For the 12 months ended March 31, 2009, deposits increased $218.8 million, or 10.8%, from $2.0 billion to $2.2 billion, with demand deposits increasing $26.5 million, or 13.8%, savings and interest-bearing demand deposits increasing by $109.4 million, or 20.3%, and time deposits rising $82.9 million, or 6.4%. Sequentially, deposits rose $67.2 million, or 3.1%, with demand deposits increasing by $23.8 million, or 12.2%, savings and interest-bearing demand accounts growing $130.2 million, or 25.1%, and time deposits decreasing by $86.7 million, or 5.9%. The slower growth in time deposits for the 12-month period and the decline in the first quarter are reflective of a strategy to reduce the Bank's 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 and Fed Funds Purchased

Repurchase agreements, the majority of which represent sweep funds of significant commercial demand deposit customers, and Fed funds purchased decreased $40.9 million, or 18.2%, year-over-year, to $184.2 million at March 31, 2009, and were down $3.7 million since December 31, 2008.

Investment Securities

Investment securities increased $28.6 million, or 8.9%, from $322.9 million at March 31, 2008, to $351.5 million at March 31, 2009, and were up $14.7 million during the three months ended March 31, 2009. The majority of the current period and year-over-year growth in securities was concentrated in bank-qualified municipals. The portfolio contains four pooled trust preferred collateralized debt obligations totaling $8.9 million for which the Bank performs a quarterly analysis for other than temporary impairment due to significantly depressed current market quotes. The analysis includes stress tests on the underlying collateral and cash flow estimates based on the current and projected future levels of deferrals and defaults within each pool. Based on the most recent analysis, the Bank recorded a $30 thousand impairment loss on one of the four pools.

Capital and Stockholders� Equity

Stockholders� equity increased $74.7 million, or 42.6%, from $175.2 million at March 31, 2008, to $249.9 million at March 31, 2009, with net income to common stockholders of $5.5 million over the twelve-month period, a $4.4 million decrease in other comprehensive income related to the investment securities portfolio, and $71 million in preferred stock issued to the U.S. Treasury under the Treasury�s Capital Purchase Program. In connection with the issuance of the preferred stock, the Company also issued warrants to purchase an aggregate of 2.7 million shares of common stock to the Treasury. In addition, in September 2008, the Company raised $25 million in qualifying capital through the sale of trust preferred securities to the Company�s directors and certain of its executive officers. In connection with the issuance of the trust preferred securities, the Company also issued warrants to purchase an aggregate of 1.5 million shares of common stock to the purchasers. As a result of this issuance, the issuance of the preferred shares and the other noted factors increasing stockholder�s equity, the Company�s Tier 1 Capital ratio increased from 9.39% at March 31, 2008, to 12.95%, and its total qualifying capital ratio increased from 10.51% to 14.35%.

CONFERENCE CALL

Virginia Commerce Bancorp will host a teleconference call for the financial community on April 23, 2009, at 11:00 a.m. Eastern Daylight Time to discuss the first quarter 2009 financial results. The public is invited to listen to this conference call by dialing 866-219-5260 at least 10 minutes prior to the call.

A replay of the conference call will be available from 2:00 p.m. Eastern Daylight Time on April 23, 2009, until 11:59 p.m. Eastern Daylight Time on April 30 2009. The public is invited to listen to this conference call replay by dialing 888-266-2081 and entering access code 1354021.

ABOUT VIRGINIA COMMERCE BANCORP, INC.

Virginia Commerce Bancorp, Inc. is the parent bank holding company for Virginia Commerce Bank, a Virginia state chartered bank that commenced operations in May 1988. The Bank pursues a traditional community banking strategy, offering a full range of business and consumer banking services through twenty-seven branch offices, one residential mortgage office and one investment services office, principally to individuals and small-to-medium size businesses in Northern Virginia and the Metropolitan Washington, D.C. area.

NON-GAAP PRESENTATIONS

This press release refers to the efficiency ratio, which is computed by dividing non-interest expense by the sum of net interest income on a tax equivalent basis and non-interest income. This is a non-GAAP financial measure that we believe provides investors with important information regarding our operational efficiency. Comparison of our efficiency ratio with those of other companies may not be possible because other companies may calculate the efficiency ratio differently. The Company, in referring to its net income, is referring to income under accounting principals generally accepted in the United States, or �GAAP�.

FORWARD LOOKING STATEMENTS

This press release may contain forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as �may,� �will,� �anticipates,� �believes,� �expects,� �plans,� �estimates,� �potential,� �continue,� �should,� and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company�s market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast, and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company�s past results are not necessarily indicative of future performance.

� Virginia Commerce Bancorp, Inc. Financial Highlights (Dollars in thousands, except per share data) (Unaudited) � Three Months Ended March 31, 2009 � 2008 � % Change Summary Operating Results: � � Interest and dividend income $ 37,554 $ 40,063 -6.3 % Interest expense 16,797 20,598 -18.5 % Net interest and dividend income 20,757 19,465 6.6 % Provision for loan losses 13,390 4,112 225.6 % Non-interest income 1,820 1,631 11.6 % Non-interest expense 13,023 10,792 20.7 % (Loss) income before income taxes (3,836 ) 6,192 -162.0 % Net (loss) income $ (2,409 ) $ 4,148 -158.1 % Effective dividend on preferred stock 787 -- n/a Net (loss) income available to common stockholders $ (3,196 ) $ 4,148 -177.1 % � Performance Ratios: Return on average assets -0.35 % 0.69 % Return on average equity -3.86 % 9.61 % Net interest margin 3.15 % 3.34 % Efficiency ratio (1) 57.68 % 51.16 % � Per Share Data: (2) Net (loss) income per common share-basic $ (0.12 ) $ 0.16 -175.0 % Net (loss) income per common share-diluted $ (0.12 ) $ 0.15 -180.0 % Average number of common shares outstanding: Basic 26,688,143 26,532,920 Diluted 26,688,143 27,269,248 � As of March 31, 2009 � 2008 � % Change Selected Balance Sheet Data: Loans, net $ 2,243,960 $ 2,083,149 7.7 % Investment securities 351,472 322,880 8.9 % Assets 2,772,888 2,501,358 10.9 % Deposits 2,239,365 2,020,614 10.8 % Stockholders� equity 249,868 175,241 42.6 % Book value per common share (2) $ 6.70 $ 6.60 1.5 % � Capital Ratios (% of risk weighted assets): Tier 1 capital: Company 12.95 % 9.39 % Bank 13.07 % 7.58 % Total qualifying capital: Company 14.35 % 10.51 % Bank 14.32 % 10.47 % Tier 1 leverage: Company 11.31 % 8.78 % Bank 11.44 % 7.12 % Tangible common equity: Company 6.45 % 7.01 % Bank 11.35 % 6.97 % � � � As of March 31, 2009 � 2008 � Asset Quality: Non-performing assets: Non-accrual loans: Commercial $ 10,433 $ 4,635 Real estate-one-to-four family residential: Closed end first and seconds 735 588 Home equity lines � 319 � � 395 � Total Real estate-one-to-four family residential $ 1,054 $ 983 Real estate-multi-family residential -- -- Real estate-non-farm, non-residential: Owner Occupied 6,319 125 Non-owner occupied � 792 � � 411 � Total Real estate-non-farm, non-residential $ 7,111 $ 536 Real estate-construction: Residential-Owner Occupied 5,115 3,889 Residential-Builder 67,274 7,396 Commercial � 34,829 � � -- � Total Real estate-construction: $ 107,218 $ 11,285 Farmland -- -- Consumer � (2 ) � 41 � Total Non-accrual loans $ 125,814 $ 17,480 OREO � 12,455 � � 5,720 � Total non-performing assets $ 138,269 $ 23,200 Loans 90+ days past due and still accruing � 23,790 � � 2,000 � Total non-performing assets and loans 90+ days past due $ 162,059 $ 25,200 � Non-performing assets to total loans: 6.05 % 1.10 % to total assets: 4.99 % 0.93 % Non-performing assets and loans 90+ days past due to total loans: 7.09 % 1.19 % to total assets: 5.84 % 1.01 % Allowance for loan losses to total loans 1.64 % 1.20 % � � Net charge-offs Commercial $ 2,097 $ 665 Real estate-one-to-four family residential: Closed end first and seconds 115 -- Home equity lines � 826 � � -- � Total Real estate-one-to-four family residential $ 941 $ -- Real estate-multi-family residential -- -- Real estate-non-farm, non-residential: Owner Occupied 211 -- Non-owner occupied � -- � � -- � Total Real estate-non-farm, non-residential $ 211 $ -- Real estate-construction: Residential-Owner Occupied 40 -- Residential-Builder 3,542 219 Commercial � 5,509 � � -- � Total real estate-construction: $ 9,091 $ 219 Farmland -- -- Consumer � 31 � � 62 � Total Net charge-offs $ 12,371 $ 946 Net charge-offs to average loans outstanding 0.53 % 0.05 % � � � � � � As of March 31, 2009 � 2008 � % Change � 12/31/08 � % Change � Loan Portfolio: Commercial $ 265,279 $ 254,294 4.3 % $ 279,470 -5.1 % Real estate-one to four family residential: Closed end first and seconds 229,062 189,622 20.8 % 233,887 -2.1 % Home equity lines � 128,291 � 96,633 32.8 % � 123,366 4.0 % Total Real estate-one-to-four family residential $ 357,353 $ 286,255 24.8 % $ 357,253 0.0 % Real estate-multifamily residential 66,577 62,321 6.8 % 66,611 -0.1 % Real estate-non-farm, non-residential: Owner Occupied 428,112 390,460 9.6 % 418,372 2.3 % Non-owner occupied � 594,423 � 537,147 10.7 % � 592,953 0.3 % Total Real estate-non-farm, non-residential $ 1,022,535 $ 927,607 10.2 % $ 1,011,325 1.1 % Real estate-construction: Residential-Owner Occupied 24,119 21,059 14.5 % 20,691 16.6 % Residential-Builder 289,375 308,423 -6.2 % 296,266 -2.3 % Commercial � 247,695 � 244,529 1.3 % � 268,119 -7.6 % Total Real estate-construction: $ 561,189 $ 574,011 -2.2 % $ 585,076 -4.1 % Farmland 2,498 1,686 48.2 % 2,498 0.0 % Consumer � 9,934 � 7,700 29.0 % � 11,698 -15.1 % Total loans $ 2,285,365 $ 2,113,874 8.1 % $ 2,313,931 -1.2 % Less unearned income 3,911 5,299 -26.2 % 4,370 -10.5 % Less allowance for loan losses � 37,494 � 25,426 47.5 % � 36,475 2.8 % Loans, net $ 2,243,960 $ 2,083,149 7.7 % $ 2,273,086 -1.3 % � � � � � � As of March 31, 2009

Residential, Acquisition, Development and Construction

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By County/Jurisdiction of Origination:

Total

Outstandings

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Percentage

of Total

Non-accrual

Loans

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Non-accruals

as a % of

Outstandings

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Net charge-

offs as a % of

Outstandings

District of Columbia $ 25,007 8.0 % $ -- -- --

Montgomery, MD

14,601 4.7 % 5,667 1.8 % -- Prince Georges, MD 36,584 11.7 % 8,680 2.8 % -- Other Counties in MD 9,351 3.0 % 2,265 0.7 % -- Arlington/Alexandria, VA 44,810 14.3 % 6,301 2.0 % -- Fairfax, VA 80,729 25.8 % 12,673 4.0 % 0.1 % Culpeper/Fauquier, VA 1,766 0.6 % 446 0.1 % 0.1 % Frederick, VA -- -- 8,922 2.8 % -- Loudoun, VA 33,723 10.8 % 8,946 2.9 % 0.8 % Prince William, VA 16,480 5.3 % 3,150 1.0 % 0.2 %

Spotsylvania, VA

1,476 0.5 % -- -- -- Stafford, VA 22,880 7.3 % 9,896 3.2 % -- Other Counties in VA 24,975 8.0 % 4,443 1.4 % -- Outside VA, D.C. & MD � 1,112 0.4 % � 1,000 0.3 % -- � $ 313,494 100 % $ 72,389 23.1 % 1.2 % � � � � � � As of March 31, 2009 Commercial, Acquisition, Development and Construction

�

By County/Jurisdiction of Origination:

Total

Outstandings

�

Percentage

of Total

Non-accrual

Loans

�

Non-accruals

as a % of

Outstandings

�

Net charge-

offs as a % of

Outstandings

District of Columbia $ 10,631 4.3 % $ -- -- --

Montgomery, MD

1,431 0.6 % -- -- -- Prince Georges, MD 10,009 4.0 % -- -- -- Other Counties in MD 1,118 0.5 % -- -- -- Arlington/Alexandria, VA 3,224 1.3 % -- -- -- Fairfax, VA 29,210 11.8 % 1,513 0.6 % -- Henrico, VA 18,744 7.5 % -- -- -- Loudoun, VA 49,688 20.1 % 18,304 7.4 % 1.4 % Prince William, VA 69,660 28.1 % 12,260 5.0 % 0.8 %

Spotsylvania, VA

13,035 5.3 % -- -- -- Stafford, VA 35,745 14.4 % -- -- -- Other Counties in VA � 5,200 2.1 % � 2,752 1.1 % -- � $ 247,695 100.0 % $ 34,829 14.1 % 2.2 % � � � � � � As of March 31, 2009 � 2008 � % Change � 12/31/08 � % Change � Investment Securities (at book value): Available-for-sale: U.S. Government Agency obligations $ 239,346 $ 243,490 -1.7 % $ 235,434 1.7 % Domestic corporate debt obligations 1,239 7,792 -84.1 % 3,948 -68.6 % Obligations of states and political subdivisions 33,473 23,319 43.5 % 29,454 13.6 % Restricted stock: Federal Reserve Bank 5,597 1,442 288.1 % 5,597 -- Federal Home Loan Bank 6,009 5,334 12.7 % 5,334 12.7 % Community Bankers� Bank � 145 � 55 163.6 % � 145 -- � $ 285,809 $ 281,432 1.6 % $ 279,912 2.1 % Held-to-maturity: U.S. Government Agency obligations $ 17,382 $ 22,445 -22.6 % $ 18,764 -7.4 % Obligations of states and political subdivisions � 48,281 � 19,003 154.1 % � 38,143 26.6 % $ 65,663 $ 41,448 58.4 % $ 56,907 15.4 % � � � � � (1) � Computed by dividing non-interest expense by the sum of net interest income on a tax equivalent basis using a 35% rate and non-interest income. � (2) Adjusted to give effect to a 10% stock dividend in May 2008 � Virginia Commerce Bancorp, Inc. Consolidated Balance Sheets (Dollars in thousands, except per share data) As of March 31, (Unaudited) � � 2009 2008 Assets Cash and due from banks $ 29,595 $ 34,785 Interest-bearing deposits with other banks -- 1,154 Securities (fair value: 2009, $352,606; 2008, $323,698) 351,472 322,880 Federal funds sold 67,720 -- Loans held-for-sale 7,936 3,432 Loans, net of allowance for loan losses of $37,494 in 2009 and $25,426 in 2008 2,243,960 2,083,149 Bank premises and equipment, net 14,833 13,463 Accrued interest receivable 10,596 11,091 Other assets � 46,776 � � 31,404 Total assets $ 2,772,888 � $ 2,501,358 Liabilities and Stockholders� Equity Deposits Demand deposits $ 218,560 $ 192,095 Savings and interest-bearing demand deposits 648,251 538,872 Time deposits � 1,372,554 � � 1,289,647 Total deposits $ 2,239,365 $ 2,020,614 Securities sold under agreement to repurchase and federal funds purchased 184,224 225,099 Other borrowed funds 25,000 25,000 Trust preferred capital notes 65,865 41,244 Accrued interest payable 6,923 8,333 Other liabilities � 1,643 � � 5,827 Total liabilities $ 2,523,020 � $ 2,326,117 Stockholders� Equity Preferred stock, net of discount, $1.00 par, 1,000,000 shares authorized, Series A; $1,000.00 stated value; 71,000 issued and outstanding $ 62,904 $ -- Common stock, $1.00 par, 50,000,000 shares authorized, issued and outstanding 2009, 26,688,143; 2008, 24,122,262 26,688 24,122 Surplus 96,039 73,916 Warrants 8,520 -- Retained earnings 57,339 74,387 Accumulated other comprehensive (loss) income, net � (1,622 ) � 2,816 Total stockholders� equity $ 249,868 $ 175,241 Total liabilities and stockholders� equity $ 2,772,888 � $ 2,501,358 � � � Virginia Commerce Bancorp, Inc. Consolidated Statements of Operations (Dollars in thousands except per share data) Three Months Ended March 31, (Unaudited) � 2009 2008 Interest and dividend income: Interest and fees on loans $ 33,443 $ 35,891 Interest and dividends on investment securities: Taxable 3,662 3,779 Tax-exempt 345 271 Dividends 84 92 Interest on deposits with other banks -- 17 Interest on federal funds sold � 20 � � 13 Total interest and dividend income $ 37,554 � $ 40,063 Interest expense: Deposits $ 14,631 $ 18,030 Securities sold under agreement to repurchase and federal funds purchased 620 1,683 Other borrowed funds 265 194 Trust preferred capital notes � 1,281 � � 691 Total interest expense $ 16,797 � $ 20,598 Net interest income: $ 20,757 $ 19,465 Provision for loan losses � 13,390 � � 4,112 Net interest income after provision for loan losses $ 7,367 � $ 15,353 Non-interest income: Service charges and other fees $ 887 $ 921 Non-deposit investment services commissions 157 150 Fees and net gains on loans held-for-sale 807 436 Impairment loss on of securities (30 ) -- Other � (1 ) � 124 Total non-interest income $ 1,820 � $ 1,631 Non-interest expense: Salaries and employee benefits $ 5,921 $ 5,856 Occupancy expense 2,767 2,147 Data processing 600 539 Other operating expense � 3,735 � � 2,250 Total non-interest expense $ 13,023 � $ 10,792 (Loss) income before taxes $ (3,836 ) $ 6,192 (Benefit) provision for income taxes � (1,427 ) � 2,044 Net (loss) income $ (2,409 ) $ 4,148 Effective dividend on preferred stock � 787 � � -- Net (loss) income available to common stockholders $ (3,196 ) $ 4,148 Earnings per common share, basic (1) $ (0.12 ) $ 0.16 Earnings per common share, diluted (1) $ (0.12 ) $ 0.15 � (1) Adjusted to give effect to a 10% stock dividend in May 2008 � � � � � � � Virginia Commerce Bancorp, Inc. Consolidated Average Balances, Yields, and Rates Three Months Ended March 31, (Unaudited) � � � � � � � � � � 2009 2008 (Dollars in thousands)

AverageBalance

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InterestIncome-Expense

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AverageYields/Rates

AverageBalance

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InterestIncome-Expense

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AverageYields/Rates

Assets Securities (1) $ 338,688 $ 4,091 4.96 % $ 320,765 $ 4,142 5.26 % Loans, net of unearned income (2) 2,312,936 33,443 5.87 % 2,030,623 35,891 7.10 % Interest-bearing deposits in other banks 102 -- 0.12 % 1,369 17 4.84 % Federal funds sold � 41,386 � � 20 � 0.19 % � 2,204 � � 13 � 2.32 % Total interest-earning assets $ 2,693,112 $ 37,554 5.68 % $ 2,354,961 $ 40,063 6.85 % Other assets � 61,865 � 64,005 Total Assets $ 2,754,977 $ 2,418,966 � Liabilities and Stockholders� Equity Interest-bearing deposits: NOW accounts $ 190,817 $ 610 1.30 % $ 146,319 $ 512 1.40 % Money market accounts 149,739 577 1.56 % 206,536 1,655 3.21 % Savings accounts 241,424 1,439 2.42 % 164,836 1,441 3.51 % Time deposits � 1,424,332 � � 12,005 � 3.42 % � 1,215,738 � � 14,422 � 4.76 % Total interest-bearing deposits $ 2,006,312 $ 14,631 2.96 % $ 1,733,429 $ 18,030 4.17 % Securities sold under agreement to repurchase and federal funds purchased 185,210 620 1.36 % 234,194 1,683 2.88 % Other borrowed funds 25,000 265 4.25 % 25,000 194 3.07 % Trust preferred capital notes � 65,832 � � 1,281 � 7.78 % � 40,000 � � 691 � 6.83 % Total interest-bearing liabilities $ 2,282,354 $ 16,797 2.98 % $ 2,032,623 $ 20,598 4.06 % Demand deposits and other liabilities � 219,344 � 213,240 Total liabilities $ 2,501,698 $ 2,245,863 Stockholders� equity � 253,279 � 173,103 Total liabilities and stockholders� equity $ 2,754,977 $ 2,418,966 Interest rate spread 2.70 % 2.79 % Net interest income and margin $ 20,787 3.15 % $ 19,465 3.34 % � � � � �

(1) Yields on securities available-for-sale have been calculated on the basis of historical cost and do not give effect to changes in the fair value of those securities, which are reflected as a component of stockholders� equity. Average yields on securities are stated on a tax equivalent basis, using a 35% rate.

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(2) Loans placed on non-accrual status are included in the average balances. Net loan fees and late charges included in interest income on loans totaled $829 thousand and $1.29 million for the three months ended March 31, 2009 and 2008, respectively.

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