Virginia Commerce Bancorp, Inc. (the “Company”), (Nasdaq: VCBI), parent company of Virginia Commerce Bank (the “Bank”), today reported net income to common stockholders of $4.3 million, or $0.15 per diluted common share, for the second quarter of 2010, compared with a net loss of $6.4 million, or $0.24 per diluted common share, for the same period in 2009. Lower loan loss provisions and a higher net interest margin drove the year-over-year increase in earnings, while non-performing assets and loans 90+ days past due declined $17.2 million during the quarter.
Peter A. Converse, Chief Executive Officer, commented, “It is gratifying to be able to report a third consecutive quarter of improved earnings as well as a meaningful reduction in non-performing assets. We are certainly encouraged by the earnings progress year-to-date as net income available to common stockholders for the six months ended June 30 exceeded $7.5 million as compared to a net loss of $9.6 million for the same period last year. The turnaround continues to benefit from lower provisioning expense and strong core earnings.”
Converse continued, “We remain optimistic that we can sustain the positive metrics that are driving our performance, especially our higher net interest margin and strong efficiency ratio. Additionally, continued progress in working through our problem assets should enable us to realize further reductions in loan loss provisioning and other credit costs. We still feel the most likely case for year-end NPAs and loans 90+ days past due to total assets will be in the 2.00 to 2.50% range.”
“The prospects for enhancing our banking franchise and stockholder value appear to be on the right track. We look forward to taking advantage of market opportunities as the economy strengthens.”
SUMMARY REVIEW OF FINANCIAL PERFORMANCE
Net Income (Loss)
For the three months ended June 30, 2010, the Company recorded net income of $5.6 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 $4.3 million, or $0.15 per diluted common share, compared to a net loss to common stockholders of $6.4 million, or $0.24 per diluted common share, in the second quarter of 2009. For the six months ended June 30, 2010, the Company reported net income to common stockholders of $7.5 million, or $0.26 per diluted common share, compared to a net loss to common stockholders of $9.6 million for the same period in 2009. Earnings improvement for both the three-and six-month periods were attributable to lower provisions for loan losses and a higher net interest margin.