Virginia Commerce Bancorp, Inc. (the “Company”), (Nasdaq: VCBI),
parent company of Virginia Commerce Bank (the “Bank”), today
reported net income to common stockholders of $3.7 million, or
$0.12 per diluted common share, for the first quarter of 2011,
compared with net income to common stockholders of $3.2 million, or
$0.11 per diluted common share, for the same period in 2010. A 20
basis point increase in the net interest margin, increased
non-interest income and containment of non-interest expense drove
the year-over-year improvement in earnings. However, earnings
improvement was still constrained by the Company’s provisions for
loan losses and an impairment loss in the Company’s securities
portfolio.
Peter A. Converse, President and Chief Executive Officer,
commented, “Our first quarter results are a good start to the year.
Our strong core operating earnings continued to benefit from
sequential increases in the net interest margin and expense
containment discipline, while asset quality metrics were fairly
positive across the board. Although credit costs as well as a
securities impairment loss had a dampening effect on the flow of
core earnings to the bottom line, it is anticipated that these
expenses, especially loan loss provisioning, will have less of an
impact as the year progresses and we continue to reduce our
non-performing asset exposure.”
“For this just completed quarter, non-performing assets and
loans 90+ days past due showed modest improvement, declining by
just over $1 million. However, Troubled Debt Restructurings
declined by $11.1 million, from $103.0 million to $91.9 million,
the second consecutive quarterly decrease in this category. Loans
30 – 89 days past due were $10.4 million as of March 31, 2011,
having declined sequentially and year-over-year from $11.6 million
and $13.5 million respectively. We expect that meaningful progress
in reducing problem assets will be made through the remainder of
the year, without necessarily incurring the same quarterly levels
of provisioning and charge-offs as experienced in the first
quarter.”
Converse continued, “As I indicated last quarter, our 2011 plans
include getting back on a growth track, especially in lending.
While this past quarter did not evidence progress in that regard in
all loan categories, we are encouraged by growth in commercial
loans and the current pipeline of loan approvals, as well as recent
and expected loan closings early in the second quarter. We should
also benefit from hiring four new commercial loan officers and a
seasoned commercial lending manager since the first of the year.
While two of those new loan officers were replacement hires, the
focus on commercial lending as a strategic shift is obvious.”
“As previously announced, VCBI raised approximately $2.5 million
in new capital at the end of the first quarter through a registered
direct placement of 426,000 shares of its common stock to one of
our Directors. In conjunction with that sale, the Company also
issued to this Director warrants exercisable for twice that number
of original shares, which would provide additional capital proceeds
of approximately $4.8 million to the Bank if fully exercised. This
capital raise was a one-off transaction to enable the Director to
make a substantial investment in the Company structured comparably
to the registered direct placement of $10 million in gross proceeds
at the end of last September. Neither transaction is indicative of
a Company strategy to raise incremental amounts of capital going
forward. The Board will continue to consider its options for paying
off our $71 million in TARP funding through either retained
earnings or a one-time capital raise. Again, the decision to
increase capital through a stock sale will largely be dependent on
satisfactory appreciation in our stock price and any prerequisite
regulatory approval. As an additional option, we have also applied
for funding under the Small Business Lending Fund to pay off our
TARP funding and take advantage of the currently known features of
that program.”
Converse concluded, “I would be remiss if I didn’t acknowledge
the recent passing on February 22 of Bill Beauchesne, our Chief
Financial Officer and Chief Operating Officer. Bill served Virginia
Commerce for almost sixteen years with the highest levels of
competency, dedication and integrity. The loss of our colleague is
deeply and profoundly felt by all of us here at the Bank. While we
conduct a thoughtful search for his permanent replacement, we have
been fortunate to bring in long-time local banker, Wilmer (“Bill”)
Tinley, as interim CFO. Bill has spent 44 years in banking,
primarily in local community bank CFO and CEO roles. Most recently
he was CFO for EagleBank in Bethesda, Maryland, from its founding
and until he retired four years ago. Bill has stepped right in and
is fulfilling the CFO role quite capably.”
SUMMARY REVIEW OF FINANCIAL PERFORMANCE
Net Income
For the three months ended March 31, 2011, the Company recorded
net income of $5.0 million. After an effective dividend of $1.3
million to the U.S. Treasury on preferred stock, the Company
reported net income to common stockholders of $3.7 million, or
$0.12 per diluted common share, compared to net income to common
shareholders of $3.2 million, or $0.11 per diluted common share in
the first quarter of 2010. The year-over-year earnings improvement
was largely attributable to a 5.5% increase in net interest income
over the previous year, which was principally due to reduced
interest expenses as more fully described below. However, the
Company’s net income was negatively impacted primarily by
provisions for loan losses and an impairment loss on securities of
$732 thousand.
Excluding taxes, loan loss provisions, the losses on other real
estate owned and securities and gain on sale of securities, the
Company generated core operating earnings for the three months
ended March 31, 2011, of $13.6 million, up $1.1 million, or 8.9%,
as compared to $12.5 million for the same period in 2010.
Asset Quality and Provisions For Loan Losses
Provisions for loan losses were $5.8 million for the three
months ended March 31, 2011, compared to $4.2 million in the same
period in 2010, with total net charge-offs of $11.8 million in the
first quarter of 2011, versus $7.0 million for the first quarter of
2010. Total non-performing assets and loans 90+ days past due
declined from $108.8 million at March 31, 2010, to $73.5 million at
March 31, 2011, a reduction of 32.4%, and decreased $1.1 million
sequentially from $74.6 million as of December 31, 2010. Higher
provisioning for the quarter was primarily driven by the downgrade
of two mid-seven figure borrowing relationships, representing a
construction sub-contractor and a residential builder which
required specific reserves of $3.2 million based upon a collateral
analysis. Increased charge-offs were largely attributable to the
decision to write down certain identified problem loans with
substantial specific reserves totaling $8.2 million in anticipation
of negotiated settlements or pending sales of underlying collateral
properties. As of March 31, 2011, reserves for loan losses
represented 2.59% of total loans, down from 2.82% at December 31,
2010, with reserves covering 103.4% of total non-performing loans
as of March 31, 2011.
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 unemployment levels. Overall, as of
March 31, 2011, $32.9 million, or 60.2%, of non-performing loans
represented acquisition, development and construction (“ADC”)
loans, $10.0 million, or 18.3%, represented non-farm,
non-residential loans, $6.1 million, or 11.2%, represented loans on
one-to-four family residential properties, and $5.6 million, or
10.3%, represented commercial and industrial (“C&I”) loans.
Progress in reducing non-performing loans in non-farm,
non-residential loans and residential ADC loans was largely offset
by increases in 1) C&I non-performing loans of $1.9 million
resulting primarily from moving several loans to a specialty
contractor to non-accrual, 2) home equity non-performing loans of
$1.8 million all attributable to a single large first lien home
equity loan going to non-accrual and 3) an increase in commercial
ADC non-performing loans due to a stalled mixed use project moving
to non-accrual. Collateral for these new additions was evaluated
and carrying values and specific reserves adjusted accordingly.
Additionally, other real estate owned increased $1.7 million as a
small retail center and a commercial property were taken to
foreclosure during the quarter. The carrying value of these assets
was also adjusted to current market conditions based upon
appraisals.
Included in the loan portfolio at March 31, 2011, are loans
classified as troubled debt restructurings (“TDRs”), totaling $91.9
million, a sequential reduction of $11.1 million from $103.0
million at December 31, 2010. These are performing, accruing loans
that represent relationships for which a modification to the
contractual interest rate or repayment structure has been granted
to address a financial hardship. Over 85% of TDRs were performing
prior to modification. These loans make up 4.2% of the total loan
portfolio and represent $29.8 million in ADC loans, $46.5 million
in non-farm, non-residential real estate loans, $10.1 million in
C&I loans and $5.5 million in one-to-four family residential
loans. The reduction in TDRs was attributable to upgrades of
reviewable TDRs and adjustments to the carrying value of continuing
TDRs.
Net Interest Income
Net interest income for the first quarter of 2011 of $26.2
million was up $1.4 million, or 5.5%, over the same quarter last
year, as the net interest margin increased from 3.79% in the first
quarter of 2010 to 3.99% for the same period in 2011. On a
sequential basis, the margin was up three basis points. The
year-over-year increase in the net interest margin was driven by
lower deposit costs due to significant reductions in the level of
time deposits, and increased levels of demand deposits and lower
rate interest-bearing transaction accounts. Also, the average rate
paid on savings and time deposits decreased significantly from the
three-months ended March 31, 2010 to the same period 2011. As a
result, the average cost of interest-bearing deposits fell from
1.88% in the first quarter of 2010, to 1.44% in the current period,
while the yield on interest-earning assets declined twenty basis
points from 5.59% to 5.39%. Management anticipates the net interest
margin will range between 3.7% and 4.0% over the next two quarters,
but may come under some pressure later in the year if short-term
interest rates begin to rise.
Non-Interest Income
For the three months ended March 31, 2011, the Company
recognized $1.5 million in non-interest income, compared to
non-interest income of $607 thousand for the three months ended
March 31, 2010. Fees and net gains on loans held-for-sale were up
for the first quarter 2011 on a year-over-year basis by $175
thousand, or 50.1%. Sequentially, fees and net gains on loans
held-for-sale were down $1.2 million from the fourth quarter of
2010. Included in the current quarter income is an impairment loss
on securities of $732 thousand, which was partially offset by a
gain on sale of securities of $503 thousand. The impairment loss on
securities was due to additional deferrals and defaults by the
underlying issuers of four pooled trust preferred securities. For
the three months ended March 31, 2010, the Company recognized an
impairment loss of $851 thousand. Management is carefully
monitoring its holdings of the securities which caused the
impairment losses and at this time can not be assured that there
will not be further losses in the future.
Non-Interest Expense
Non-interest expense decreased $257 thousand, or 1.7%, from
$14.7 million in the first quarter of 2010, to $14.5 million in the
current period. The majority of the year-over-year decrease was due
to the $762 thousand decrease in losses on other real estate owned.
The reduction in losses on OREO offset an increase in salaries and
employee benefits related to commissions payable in connection with
greater than anticipated mortgage production. However, due to the
$1.4 million increase in net interest income and $870 thousand
increase in non-interest income year-over-year, the adjusted
efficiency ratio improved from 55.4% in the first quarter of 2010,
to 51.1% in the first quarter of 2011.
Investment Securities
Investment securities increased $82.9 million, or 24.8%,
year-over-year to $417.1 million at March 31, 2011. U.S. Government
agency securities, including callable step-up bonds,
mortgage-backed securities (MBS) and collateralized mortgage
obligations (CMOs) comprised a majority of the increases. The
portfolio contains four pooled trust preferred securities with an
amortized cost basis of $5.1 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. Since the first quarter of
2009, the Bank has recorded an aggregate impairment loss of $4.2
million on three of the four pools, including a $732 thousand
impairment during the first quarter of 2011.
Loans
Loans, net of allowance for loan losses, decreased $80.8
million, or 3.7%, from $2.20 billion at March 31, 2010, to $2.12
billion at March 31, 2011. Non-farm, non-residential real estate
loans decreased $9.5 million, or 0.8%, multifamily real estate
loans increased $17.2 million, or 23.7%, ADC loans fell by $76.2
million, or 18.1%, and C&I loans were up $2.3 million, or 1.0%.
Sequentially, net loans were down $27.3 million, or 1.3%. Loan
production in 2010 was 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, a strategic decision to restrict
acquisition, development and construction lending and an increased
emphasis on deposit generation and non-credit products. Lending
efforts in 2011 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, calling efforts and sales management
restructuring. Progress with this strategy is evident in the first
quarter of 2011 with commercial loans increasing $8.2 million
sequentially, while ADC loans and non-farm, non-residential
non-owner occupied loans decreased $18.5 million and $22.7 million,
respectively. Additionally, efforts to grow multi-family
residential, considered to be a strong local asset class, were
successful with a sequential increase of $12.4 million.
Deposits
For the twelve months ended March 31, 2011, total deposits
decreased $43.0 million, or 1.9%, from $2.30 billion to $2.26
billion, with demand deposits increasing $58.7 million, or 25.3%,
savings and interest-bearing demand deposits increasing by $99.1
million, or 9.1%, and time deposits falling $200.8 million, or
20.5%. Sequentially, from December 31, 2010, deposits rose $9.7
million, or 0.4%, with demand deposits increasing by $25.6 million,
or 9.7%, savings and interest-bearing demand accounts decreasing
$13.9 million, or 1.2%, and time deposits decreasing by $1.9
million, or 0.3%. While opportunities for balance sheet growth have
been limited in recent periods, the Company has focused on
improving deposit mix. Demand deposit growth has been the top
priority, with the year-over-year increase in demand deposits
primarily due to the successful efforts of the Company’s team of
eight business development officers, who are focused on acquisition
and retention of commercial operating funds, treasury management
services and other related cross-sales. In other deposit
categories, strategic pricing and customer preference for liquidity
has resulted in a desired reduction in time deposits and an
increase in NOW, savings and money market accounts. The decline in
time deposits as a percentage of total deposits, now at 34.5%, is
generally complete as evidenced by sequential results. At March 31,
2011, the Bank had no brokered certificates of deposit, down from
$80.1 million at March 31, 2010.
Capital Levels and Stockholders’ Equity
On March 31, 2011, the Company issued 426,000 shares of its
common stock at a price of $5.87 per share in a registered direct
placement with a Company director for total gross proceeds of
approximately $2.5 million. In addition, the Company issued to the
investor warrants exercisable for shares of common stock, which, if
fully exercised, would provide an additional $4.8 million in gross
proceeds to the Company. The warrants each have an exercise price
of $5.62 per share. The Series A warrants, exercisable for a total
of 426,000 shares of common stock, are exercisable for a period of
seven months following the closing date. The Series B warrants,
also exercisable for a total of 426,000 shares of common stock, are
exercisable for a period of twelve months following the closing
date.
On September 29, 2010, the Company issued 1,904,766 shares of
its common stock at a price of $5.25 per share in a registered
direct placement with several institutional investors for total
gross proceeds of $10.0 million. In addition, the Company issued to
the investors warrants exercisable for shares of common stock,
which, if fully exercised, would provide an additional $11.4
million in gross proceeds to the Company. The warrants each have an
exercise price of $6.00 per share, which represents a 14.3% premium
to the offering price of the shares of common stock sold in the
registered direct placement. The Series A warrants, exercisable for
a total of 952,383 shares of common stock, are exercisable for a
period of seven months following the closing date. The Series B
warrants, also exercisable for a total of 952,383 shares of common
stock, are exercisable for a period of twelve months following the
closing date.
Stockholders’ equity increased $29.1 million, or 13.0%, from
$224.3 million at March 31, 2010, to $253.4 million at March 31,
2011, with approximately $11.8 million in net proceeds from the
above referenced stock issuances, net income to common stockholders
of $17.0 million over the twelve-month period, a $2.5 million
decrease in other comprehensive income related to the investment
securities portfolio, and $2.8 million in proceeds and tax benefits
related to the exercise of options by the Company’s directors and
officers, and stock option expense credits. As a result of these
changes, the Company’s Tier 1 Capital ratio increased from 11.91%
at March 31, 2010, to 13.96% at March 31, 2011, and its total
qualifying capital ratio increased from 13.16% to 15.21%. The
Bank’s ratios increased by similar levels. Sequentially, the
Company’s Tier 1 and total qualifying capital ratios are each up 76
basis points, and its tangible common equity ratio is up 17 basis
points from December 31, 2010, to 6.74% as of March 31, 2011.
CONFERENCE CALL
The Company will host a teleconference call for the financial
community on April 20, 2011, at 11:00 a.m. Eastern Daylight Time to
discuss the first quarter 2011 financial results. The public is
invited to listen to this conference call by dialing 866-244-4519
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 20, 2011, until 11:59 p.m. Eastern
Daylight Time on April 27, 2011. The public is invited to listen to
this conference call replay by dialing 888-266-2081 and entering
access code 1525816.
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-eight branch
offices, one residential mortgage office and one wealth management
services office, principally to individuals and small-to-medium
size businesses in Northern Virginia and the Metropolitan
Washington, D.C. area.
NON-GAAP PRESENTATIONS
The Company prepares its financial statements under accounting
principles generally accepted in the United States, or “GAAP”.
However, this press release also refers to certain non-GAAP
financial measures that we believe, when considered together with
GAAP financial measures, provide investors with important
information regarding our operational performance. An analysis of
any non-GAAP financial measure should be used in conjunction with
results presented in accordance with GAAP.
Core operating earnings is a non-GAAP financial measure that
reflects net income excluding taxes, loan loss provisions, losses
on other real estate owned, impairment losses on securities and
gain on sale of securities. These excluded items are difficult to
predict and we believe that core operating earnings provides the
Company and investors with a valuable measure of the Company’s
operational performance and a valuable tool to evaluate the
Company’s financial results. Calculation of core operating earnings
for the three months ended March 31, 2011, March 31, 2010 and
December 31, 2010 is as follows:
Three Months Ended March 31, (in thousands)
2011
2010 Net Income $ 4,966 $ 4,469
Adjustments to net income: Provision for loan losses 5,843 4,238
Loss on other real estate owned 156 918 Impairment loss on
securities 732 851 Gain on sale of securities (503 ) -- Provision
for income taxes 2,400 2,009
Core Operating Earnings
$ 13,594 $ 12,485
The adjusted efficiency ratio is a non-GAAP financial measure
that is computed by dividing non-interest expense, by the sum of
net interest income on a tax equivalent basis and non-interest
income before losses on other real estate owned, impairment losses
on securities and gain on sale of securities. We believe that this
measure provides investors with important information about our
operating efficiency. Comparison of our adjusted efficiency ratio
with those of other companies may not be possible because other
companies may calculate the adjusted efficiency ratio differently.
Calculation of the adjusted efficiency ratio for the three months
ended March 31, 2011 and March 31, 2010 is as follows:
Three Months Ended (in thousands) March 31,
2011 2010 Summary
Operating Results: Non-interest expense $ 14,450 $
14,707 Net interest income $ 26,183 $ 24,816 Non-interest
income 1,476 607 Impairment loss on securities 732 851 Gain on sale
of securities (503 ) -- Total (1) $ 27,888 $ 26,274
Efficiency Ratio, adjusted 51.1 % 55.4 %
(1) Tax Equivalent Income of $28,254 for 2011 and $26,564 for
2010.
The tangible common equity ratio is a non-GAAP financial measure
representing the ratio of tangible common equity to tangible
assets. Tangible common equity and tangible assets are non-GAAP
financial measures derived from GAAP-based amounts. We calculate
tangible common equity for the Company by excluding the balance of
intangible assets and outstanding preferred stock issued to the
U.S. Treasury from total stockholders’ equity. We calculate
tangible assets by excluding the balance of intangible assets from
total assets. We had no intangible assets for the periods
presented. We believe that this is consistent with the treatment by
bank regulatory agencies, which exclude intangible assets from the
calculation of regulatory capital ratios. Accordingly, we believe
that these non-GAAP financial measures provide information that is
important to investors and that is useful in understanding our
capital position and ratios. However, these non-GAAP financial
measures are supplemental and are not substitutes for an analysis
based on a GAAP measure. As other companies may use different
calculations for non-GAAP measures, our presentation may not be
comparable to other similarly titled measures reported by other
companies. Calculation of the Company’s tangible common equity
ratio as of March 31, 2011, March 31, 2010, December 31, 2010 and
September 30, 2010 is as follows:
(in thousands)
As of March 31,
December 31, September 30, 2011
2010 2010
2010 Tangible common
equity: Total stockholders’ equity $ 253,373 $ 224,259 $
245,594 $ 247,012 Less: Outstanding TARP senior preferred
stock 65,873 64,356 65,445 65,082 Intangible assets -- -- -- --
Tangible common equity $ 187,500 $ 159,903 $ 180,149 $ 181,930
Total tangible assets $ 2,783,633 $ 2,803,004 $ 2,741,648 $
2,846,003
Tangible common equity ratio 6.74 %
5.70 % 6.57 % 6.39 %
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains 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, including but not limited to our outlook on earnings,
including our future net interest margin, and statements regarding
asset quality, projected growth, capital position, our plans
regarding and expected future levels of our non-performing assets,
business opportunities in our markets, and general economic
conditions. When we use words such as “may”, “will”, “anticipates”,
“believes”, “expects”, “plans”, “estimates”, “potential”,
“continue”, “should”, and similar words or phrases, you should
consider them as identifying forward-looking statements. These
forward-looking statements are not guarantees of future
performance. These statements are based upon current and
anticipated economic conditions, nationally and in the Company’s
market, interest rates and interest rate policy, expected yields on
loans and investment securities, 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 release 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. For additional
information regarding factors that could affect the Company's
operations and results, see the Company’s Annual Report on Form
10-K for the year ended December 31, 2010, and other reports filed
with and furnished to the Securities and Exchange Commission.
Virginia Commerce Bancorp, Inc. Financial Highlights
(Dollars in thousands, except per share data) (Unaudited)
Three Months Ended March 31,
2011
2010 % Change
Summary Operating Results:
Interest and dividend income $ 35,517 $ 36,727 -3.3 % Interest
expense 9,334 11,911 -21.6 % Net interest income 26,183 24,816 5.5
% Provision for loan losses 5,843 4,238 37.9 % Non-interest income
(charges) 1,476 607 143.2 % Non-interest expense 14,450 14,707 -1.7
% Income before income taxes 7,366 6,478 13.7 % Net income $ 4,966
$ 4,469 11.1 % Effective dividend on preferred stock 1,315 1,250
5.1 % Net income available to common stockholders $ 3,651 $ 3,219
13.5 %
Performance Ratios: Return on average assets
0.73 % 0.65 % Return on average equity 8.09 % 8.16 % Net interest
margin 3.99 % 3.79 % Efficiency ratio, adjusted 51.14 % 55.36 %
Per Share Data: Earnings per common share-basic $
0.13 $ 0.12 8.3 % Earnings per common share-diluted $ 0.12 $ 0.11
9.1 % Average number of shares outstanding: Basic 29,264,610
26,933,923 Diluted 30,404,089 28,010,878 As of
March 31,
As of
2011 2010 % Change
12/31/10 09/30/10
Selected Balance
Sheet Data: Loans, net $ 2,122,309 $ 2,203,156 -3.7 % $
2,149,591 $ 2,178,034 Investment securities 417,071 334,160 24.8 %
411,761 380,915 Assets 2,783,633 2,803,004 -0.7 % 2,741,648
2,846,003 Deposits 2,256,970 2,299,989 -1.9 % 2,247,201 2,323,478
Stockholders’ equity 253,373 224,259 13.0 % 245,594 247,012 Book
value per common share $ 6.18 $ 5.69 8.6 % $ 6.03 $ 6.09
Capital Ratios (% of risk weighted assets): Tier 1 capital:
Company 13.96 % 11.91 % 13.20 % 12.96 % Bank 13.57 % 11.81 % 12.87
% 12.55 % Total qualifying capital: Company 15.21 % 13.16 % 14.45 %
14.21 % Bank 14.82 % 13.06 % 14.12 % 13.80 % Tier 1 leverage:
Company 11.48 % 10.34 % 11.07 % 10.84 % Bank 11.16 % 10.29 % 10.76
% 10.52 % Tangible common equity: Company 6.74 % 5.70 % 6.57 % 6.39
% Bank (1) 11.09 % 10.20 % 11.01 % 10.60 %
(1) Calculated by dividing total stockholders’ equity by
total assets, as the Bank has no intangible assets or non-common
equity.
As of March 31, As of 2011
2010 12/31/10
09/30/10
Asset Quality: Non-performing
assets: Non-accrual loans: Commercial $ 5,622 $ 9,931 $ 3,719 $
5,176 Real estate-one-to-four family residential: Closed end first
and seconds 2,781 4,610 5,285 6,554 Home equity lines
3,325 693
1,529 724 Total Real
estate-one-to-four family residential $ 6,106 $ 5,303 $ 6,814 $
7,278 Real estate-multi-family residential -- -- -- -- Real
estate-non-farm, non-residential: Owner Occupied 8,016 9,019 8,942
5,251 Non-owner occupied
1,988
14,871 4,114
1,204 Total Real estate-non-farm,
non-residential $ 10,004 $ 23,890 $ 13,056 $ 6,455 Real
estate-construction: Residential-Owner Occupied -- -- -- --
Residential-Builder 24,234 36,078 27,189 31,138 Commercial
8,625 6,911
6,361 6,861 Total
Real estate-construction: $ 32,859 $ 42,989 $ 33,550 $ 37,999
Consumer
18 119
19 110
Total Non-accrual loans 54,609 82,232 57,158 57,018 OREO
18,879 26,269
17,165 24,395 Total
non-performing assets $ 73,488 $ 108,501 $ 74,323 $ 81,413
Loans 90+ days past due and still accruing: Commercial $ -- $ 45 $
-- $ 149 Real estate-one-to-four family residential: Closed end
first and seconds -- 238 -- -- Home equity lines
-- --
242 369 Total Real
estate-one-to-four family residential $ -- $ 238 $ 242 $ 369 Real
estate-multi-family residential -- -- -- -- Real estate-non-farm,
non-residential: Owner Occupied 25 -- -- 361 Non-owner occupied
-- --
-- -- Total Real
estate-non-farm, non-residential $ 25 $ -- $ -- $ 361 Real
estate-construction: Residential-Owner Occupied -- -- -- --
Residential-Builder -- 26 -- -- Commercial
--
-- --
-- Total Real estate-construction: $ --
$ 26 $ -- $ -- Consumer
--
9 --
100 Total loans 90+ days past due and still
accruing $ 25 $ 318 $ 242 $ 979 Total non-performing assets
and past due loans $ 73,513 $ 108,819 $ 74,565 $ 82,392
Troubled debt restructurings $ 91,876 $ 80,993 $ 102,996 $ 105,617
Non-performing assets to total loans: 3.37 % 4.78 % 3.36 %
3.63 % to total assets: 2.64 % 3.87 % 2.71 % 2.86 % Non-performing
assets and past due loans to total loans: 3.37 % 4.79 % 3.37 % 3.67
% to total assets: 2.64 % 3.88 % 2.72 % 2.90 % Allowance for loan
losses to total loans 2.59 % 2.75 % 2.82 % 2.80 % Allowance for
loan losses to non-performing loans 103.35 % 75.60 % 108.79 %
108.24 % Total allowance for loan losses $ 56,465 $ 62,407 $
62,442 $ 62,776 As of March 31,
As of
2011 2010 12/31/10
09/30/10 Loans 30 to 89 days past due
and still accruing Commercial $ 1,063 $ 393 $ 2,622 $ 1,237 Real
estate-one-to-four family residential: Closed end first and seconds
2,376 1,223 4,109 1,813 Home equity lines
89
3,225 2,605
786 Total Real estate-one-to-four
family residential $ 2,465 $ 4,458 $ 6,714 $ 2,599 Real
estate-multi-family residential 495 -- -- -- Real estate-non-farm,
non-residential: Owner Occupied -- 2,184 1,909 12,463 Non-owner
occupied
5,940 5,277
-- 174
Total Real estate-non-farm, non-residential $ 5,940 $ 7,461 $ 1,909
$ 12,637 Real estate-construction: Residential-Owner Occupied -- --
-- -- Residential-Builder 378 1,079 -- 1,372 Commercial
-- --
-- -- Total real
estate-construction: $ 378 $ 1,079 $ -- $ 1,372 Farmland -- -- --
-- Consumer
63 110
347 36
Total loans 30 to 89 days past due $ 10,404 $ 13,501 $ 11,592 $
17,881 For twelve For nine For the three months months
months ended March 31, ended ended 2011
2010 12/31/10 09/30/10
Net charge-offs Commercial $ 395 $ 2,491 $ 4,903 $
3,919 Real estate-one-to-four family residential: Closed end first
and seconds 1,597 1,964 3,402 2,368 Home equity lines
729 (14 )
254 77 Total
Real estate-one-to-four family residential $ 2,326 $ 1,950 $ 3,656
$ 2,445 Real estate-multi-family residential -- -- 1,050 -- Real
estate-non-farm, non-residential: Owner Occupied 54 760 2,663 1,350
Non-owner occupied
1,530
188 2,540
1,479 Total Real estate-non-farm,
non-residential $ 1,584 $ 948 $ 5,203 $ 2,829 Real
estate-construction: Residential-Owner Occupied -- 116 324 368
Residential-Builder 910 953 8,077 6,361 Commercial
6,595 (125 )
(233 ) (233
) Total real estate-construction: $ 7,505 $ 944 $
8,168 $ 6,496 Farmland -- -- -- -- Consumer
10
650 324
225 Total net charge-offs $
11,820 $ 6,983 $ 23,304 $ 15,914 Net charge-offs to average loans
outstanding 0.54 % 0.31 % 1.03 0.70 % Total provision for
loan losses $ 5,843 $ 4,238 $ 20,594 $ 13,538 As of
March 31,
As of
2011 2010 % Change 12/31/10 % Change
Loan Portfolio: Commercial $ 226,845 $
224,498 1.0 % $ 218,600 3.8 % Real estate-one to four family
residential: Closed end first and seconds 265,696 278,708 -4.7 %
269,514 -1.4 % Home equity lines
126,413
134,638 -6.1 %
131,397 -3.8 %
Total Real estate-one-to-four family residential $ 392,109 $
413,346 -5.1 % $ 400,911 -2.2 % Real estate-multifamily residential
89,771 72,560 23.7 % 77,316 16.1 % Real estate-non-farm,
non-residential: Owner Occupied 462,744 464,338 -0.3 % 464,368 -0.3
% Non-owner occupied
651,729
659,687 -1.2 %
674,448 -3.4 %
Total Real estate-non-farm, non-residential $ 1,114,473 $ 1,124,025
-0.8 % $ 1,138,816 -2.1 % Real estate-construction:
Residential-Owner Occupied 16,285 17,707 -8.0 % 16,819 -3.2 %
Residential-Builder 149,262 210,600 -29.1 % 160,763 -7.2 %
Commercial
180,544 194,019
-6.9 %
187,028 -3.5 % Total Real
estate-construction: $ 346,091 $ 422,326 -18.1 % $ 364,610 -5.1 %
Farmland 2,456 2,673 -8.1 % 2,418 1.6 % Consumer
10,650 10,014 6.4
% 12,557 -15.2 % Total loans $
2,182,395 $ 2,269,442 -3.8 % $ 2,215,228 -1.5 % Less unearned
income 3,621 3,879 -6.7 % 3,195 13.3 % Less allowance for loan
losses
56,465 62,407
-9.5 % 62,442 -9.6 %
Loans, net $ 2,122,309 $ 2,203,156 -3.7 % $ 2,149,591 -1.3 %
As of March 31, 2011
Residential, Acquisition,
Development and Construction Non-accruals
Net charge- Total
Percentage
Non-accrual as a % of offs as a % of
By County/Jurisdiction of
Origination: Outstandings
of Total
Loans Outstandings Outstandings District of Columbia
$ 3,347 2.0 % $ -- -- -- Montgomery, MD 1,250 0.8 % 535 0.3 % --
Prince Georges, MD 18,887 11.4 % 5,283 3.2 % -- Other Counties in
MD 4,796 2.9 % -- -- -- Arlington/Alexandria, VA 24,240 14.6 %
2,236 1.4 % -- Fairfax, VA 39,405 23.7 % 826 0.5 % 0.1 %
Culpeper/Fauquier, VA 4,445 2.7 % 3,695 2.2 % -- Frederick, VA
6,281 3.8 % 6,250 3.8 % -- Loudoun, VA 32,456 19.6 % -- -- 0.4 %
Prince William, VA 7,864 4.8 % 1,045 0.6 % -- Spotsylvania, VA 297
0.2 % -- -- -- Stafford, VA 20,411 12.3 % 4,364 2.6 % -- Other
Counties in VA 1,762 1.1 % -- -- -- Outside VA, D.C. & MD
106 0.1 %
-- -- -- $
165,547 100.0 % $ 24,234 14.5 % 0.5 % As of March 31,
2011
Commercial, Acquisition, Development and Construction
Non-accruals Net charge- Total
Percentage
Non-accrual as a % of offs as a % of
By County/Jurisdiction of
Origination: Outstandings
of Total
Loans Outstandings Outstandings District of Columbia
$ 10,084 5.6 % $ -- -- -- Montgomery, MD -- 0.0 % -- -- -- Prince
Georges, MD 12,491 6.9 % -- -- -- Other Counties in MD 3,376 1.9 %
-- -- -- Arlington/Alexandria, VA 9,312 5.2 % 3,153 1.8 % --
Fairfax, VA 27,799 15.4 % 2,800 1.6 % -- Culpeper/Fauquier, VA
3,020 1.7 % -- -- -- Frederick, VA 2,399 1.3 % -- -- -- Henrico, VA
864 0.5 % -- -- -- Loudoun, VA 20,153 11.2 % 608 0.3 % 2.5 % Prince
William, VA 55,992 30.9 % 2,064 1.1 % 1.2 % Spotsylvania, VA 1,740
1.0 % -- -- Stafford, VA 28,301 15.6 % -- -- -- Other Counties in
VA 5,013 2.8 % -- -- -- Outside VA, D.C. & MD
-- 0.0 %
-- -- -- $
180,544 100.0 % $ 8,625 4.8 % 3.7 % As of March 31,
2011
Non-Farm/Non-Residential
Non-accruals Net charge- Total Percentage Non-accrual as a %
of offs as a % of
By County/Jurisdiction of Origination:
Outstandings of Total Loans Outstandings
Outstandings District of Columbia $ 81,357 7.3 % $ -- -- --
Montgomery, MD 34,534 3.1 % -- -- -- Prince Georges, MD 47,778 4.3
% -- -- -- Other Counties in MD 44,482 4.0 % -- -- --
Arlington/Alexandria, VA 180,094 16.2 % 2,296 0.2 % -- Fairfax, VA
257,562 23.0 % 4,847 0.4 % -- Culpeper/Fauquier, VA 5,709 0.5 % --
-- -- Frederick, VA 6,347 0.6 % -- -- -- Henrico, VA 28,565 2.6 %
-- -- -- Loudoun, VA 113,903 10.2 % 1,952 0.2 % 0.1 % Prince
William, VA 209,558 18.8 % 909 0.1 % -- Spotsylvania, VA 16,922 1.5
% -- -- -- Stafford, VA 20,737 1.9 % -- -- -- Other Counties in VA
58,151 5.2 % -- -- -- Outside VA, D.C. & MD
8,774 0.8 %
-- -- -- $
1,114,473 100.0 % $ 10,004 0.9 % 0.1 %
Of this total of $1.1 billion in non-farm/non-residential real
estate loans, approximately $56.0 million will mature in 2011,
$73.9 million in 2012 and $99.1 million in 2013.
As of March 31, As
of 2011 2010 % Change 12/31/10
% Change
Investment Securities (at book
value): Available-for-sale: U.S. Government Agency obligations
$ 316,868 $ 234,811 34.9 % $ 310,610 2.0 % Pooled trust preferred
securities 444 1,772 -74.9 % 430 3.3 % Obligations of states and
political subdivisions
64,584
43,209 49.5 %
63,463 1.8 % $ 381,896 $
279,792 36.5 % $ 374,503 2.0 % Held-to-maturity: U.S. Government
Agency obligations $ 5,459 $ 10,906 -49.9 % $ 6,113 -10.7 %
Obligations of states and political subdivisions
29,717 43,462 -31.6
% 31,145 -4.6
% $ 35,176 $ 54,368 -35.3 % $ 37,258 -5.6 %
Virginia Commerce Bancorp, Inc. Consolidated Balance Sheets
(Dollars in thousands, except per share data) As of March 31,
(Unaudited) 2011 2010
Assets Cash and
due from banks $ 41,089 $ 24,347 Investment securities (fair value:
2011, 418,124; 2010, $335,262) 417,072 334,160 Restricted stocks,
at cost 11,751 11,751 Federal funds sold 85,399 108,645 Loans
held-for-sale 4,650 3,005 Loans, net of allowance for loan losses
of $56,465 in 2011 and $62,407 in 2010 2,122,309 2,203,156 Bank
premises and equipment, net 11,666 13,253 Accrued interest
receivable 10,832 10,013
Other real estate owned, net of valuation
allowance of $6,543 in 2011, and $5,771 in 2010
18,879 26,269 Other assets 59,986 68,405
Total assets $ 2,783,633 $ 2,803,004
Liabilities and Stockholders’ Equity Deposits
Demand deposits $ 290,385 $ 231,726 Savings and interest-bearing
demand deposits 1,187,395 1,088,254 Time deposits 779,190
980,009 Total deposits $ 2,256,970 $ 2,299,989
Securities sold under agreement to repurchase and federal funds
purchased $ 177,732 179,073 Other borrowed funds $ 25,000 25,000
Trust preferred capital notes 66,378 66,121 Accrued interest
payable 2,753 3,697 Other liabilities 1,427
4.865 Total liabilities $ 2,530,260 $ 2,578,745
Stockholders’ Equity Preferred stock, net of discount, $1.00
par, 1,000,000 shares authorized, Series A; $1,000 stated value;
71,000 issued and outstanding $ 65,873 $ 64,356 Common stock, $1.00
par, 50,000,000 shares authorized, issued and outstanding 2011,
29,552,737 including 38,748 in unvested restricted stock issued;
2010, 26,933,923 29,514 26,934 Surplus 107,372 96,868 Warrants
8,520 8,520 Retained earnings 42,859 25,890 Accumulated other
comprehensive income, net (765 ) 1,691 Total
stockholders’ equity $ 253,373 $ 224,259 Total
liabilities and stockholders’ equity $ 2,783,633 $ 2,803,004
Virginia Commerce Bancorp, Inc. Consolidated
Statements of Operations (Dollars in thousands except per share
data) (Unaudited) Three Months Ended March 31, 2011
2010
Interest and dividend
income: Interest and fees on loans $ 31,923 $ 32,905
Interest and dividends on investment securities: Taxable 2,861
3,280 Tax-exempt 592 426 Dividends on restricted stocks 96 88
Interest on federal funds sold 45 28
Total interest and dividend income $ 35,517 $
36,727
Interest expense: Deposits $ 7,023 $ 9,428
Securities sold under agreement to
repurchase and federal funds purchased
934 989 Other borrowed funds 266 266 Trust preferred capital notes
1,111 1,228 Total interest
expense $ 9,334 $ 11,911
Net interest
income $ 26,183 $ 24,816 Provision for loan losses 5,843
4,238 Net interest income after
provision for loan losses $ 20,340 $ 20,578
Non-interest income (charges): Service charges and other
fees $ 792 $ 876 Non-deposit investment services commissions 253
129 Fees and net gains on loans held-for-sale 521 346 Gain on sale
of securities 503 -- Impairment loss on securities (732 ) (851 )
Other 139 107 Total non-interest
income (charges) $ 1,476 $ 607
Non-interest
expense: Salaries and employee benefits $ 6,659 $ 5,995
Occupancy expense 2,470 2,710 FDIC insurance 1,289 1,309 Loss on
other real estate owned 156 918 Franchise tax expense 772 717 Data
processing expense 655 674 Other operating expense 2,449
2,384 Total non-interest expense $
14,450 $ 14,707 Income before taxes $ 7,366 $
6,478 Provision for income taxes 2,400
2,009
Net income $ 4,966 $ 4,469
Effective dividend on preferred stock $ 1,315
1,250
Net income available to common stockholders $
3,651 $ 3,219 Earnings per common share, basic $ 0.13 $ 0.12
Earnings per common share, diluted $ 0.12 $ 0.11
Virginia Commerce Bancorp, Inc.
Consolidated Average Balances, Yields, and Rates Three Months Ended
March 31, (Unaudited)
2011 2010 Interest Average Interest
Average Average Income- Yields Average Income- Yields (Dollars in
thousands) Balance Expense /Rates Balance
Expense /Rates
Assets Securities (1) $ 406,103 $
3,453 3.59 % $ 338,138 $ 3,706 4.55 % Restricted stock 11,752 96
3.31 % 11,752 88 3.00 % Loans, net of unearned income (2) 2,203,117
31,923 5.89 % 2,280,980 32,905 5.86 % Interest-bearing deposits in
other banks 388 -- 0.13 % 98 -- 0.04 % Federal funds sold
67,622 45 0.27 % 48,732
28 0.23 %
Total interest-earning assets $ 2,688,982 $
35,517 5.39 % $ 2,679,700 $ 36,727 5.59 % Other assets
84,679 93,712
Total Assets $ 2,773,661 $ 2,773,412
Liabilities and Stockholders’ Equity Interest-bearing
deposits: NOW accounts $ 321,564 $ 653 0.82 % $ 281,142 $ 812 1.17
% Money market accounts 177,183 469 1.07 % 146,609 492 1.36 %
Savings accounts 692,647 1,916 1.12 % 603,703 2,497 1.68 % Time
deposits 783,462 3,985 2.06 %
1,002,008 5,627 2.28 % Total interest-bearing
deposits $ 1,974,856 $ 7,023 1.44 % $ 2,033,462 $ 9,428 1.88 %
Securities sold under agreement to repurchase and federal funds
purchased 166,272 934 2.28 % 181,955 989 2.20 % Other borrowed
funds 25,000 266 4.25 % 25,000 266 4.25 % Trust preferred capital
notes 66,346 1,111 6.70 % 66,090
1,228 7.43 %
Total interest-bearing
liabilities $ 2,232,474 $ 9,334 1.70 % $ 2,306,507 $ 11,911
2.09 % Demand deposits and other liabilities 292,094
244,836
Total liabilities $ 2,524,568 $ 2,551,343
Stockholders’ equity 249,093 222,069
Total
liabilities and stockholders’ equity $ 2,773,661 $ 2,773,412
Interest rate spread 3.69 % 3.50 % Net interest income and margin $
26,183 3.99 % $ 24,816 3.79 %
(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.
(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 $687 thousand and $747 thousand
for the three months ended March 31, 2011 and 2010,
respectively.
Virginia Commerce Bancorp (MM) (NASDAQ:VCBI)
過去 株価チャート
から 8 2024 まで 9 2024
Virginia Commerce Bancorp (MM) (NASDAQ:VCBI)
過去 株価チャート
から 9 2023 まで 9 2024