Virginia Commerce Bancorp, Inc. (the “Company”), (Nasdaq: VCBI), parent company of Virginia Commerce Bank (the “Bank”), today reported net income to common stockholders of $5.2 million, or $0.17 per diluted common share, for the third quarter of 2011, compared with a net income to common stockholders of $5.7 million, or $0.20 per diluted common share, for the same period in 2010. Non-performing assets and loans 90+ days past due decreased 25.3% sequentially, from $74.7 million at June 30, 2011, to $55.9 million at the current quarter-end.
Peter A. Converse, President and Chief Executive Officer, commented, “The Company’s third quarter represented a rather well-rounded performance. Net income to stockholders was relatively strong at $5.2 million, asset quality improved markedly across the board, and the resumption of modest loan growth during the third quarter is encouraging.”
“First of all, net income to stockholders of $5.2 million was relatively strong, albeit less, as compared to the prior quarter and the same period last year. The sequential decline was mostly due to a $2.5 million increase in loan loss provisioning expense and a $660 thousand OREO write-down, that were necessary to facilitate transactions resulting in greater quarterly progress in problem loan resolution. Additionally, the higher earnings a year ago included $1.0 million of death benefits received from bank-owned life insurance during that quarter. Secondly, asset quality exhibited meaningful overall improvement in the third quarter. As already indicated, non-performing assets and loans 90+ days past due decreased 25.3% sequentially to $55.9 million, or 1.9% of total assets. Troubled debt restructuring (“TDRs”) declined 13.1%, from $81.1 million at June 30, 2011, to $71.7 million at the end of the third quarter. Loans 30-89 days past due improved to $12.8 million as of September 30, 2011, from $15.1 million the prior quarter. Based on this asset quality improvement, our analysis of current portfolio risk and other asset resolution strategies currently being implemented, we anticipate maintaining a healthy rate of progress in reducing problem assets. Finally, despite various headwinds to loan growth since 2009, we see progress in the modest sequential growth of 0.1% in net loans during the third quarter, which we believe may represent the inflection point after 2½ years of negative growth. Taking into account our current loan pipeline and business development activity, we are cautiously optimistic that we have turned the corner and that loan production will exceed run-off on an ongoing basis."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV