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FOR IMMEDIATE RELEASE:
Virginia Commerce Bancorp, Inc. Reports Record Fourth Quarter
Earnings, Improved Asset Quality and Strong 2006 Results
as Total Assets Approach $2 Billion
ARLINGTON, VA,Tuesday, January 23, 2007 Virginia Commerce Bancorp, Inc. (Nasdaq: VCBI), parent company of Virginia Commerce Bank (the Bank), today reported its financial results for the fourth quarter and year ended December 31, 2006.
Fourth Quarter 2006 Highlights:
· Net income of $6.4 million representing a 15.3% increase over fourth quarter 2005
· Diluted earnings per share up 12.0% to $0.28
· Loans increased $85.0 million during the quarter, a 5.5% sequential increase
· Total non-performing loans and loans past due 90+ days declined $3.9 million, or 49.7%
Year 2006 Highlights:
· Net income of $24.5 million representing a 24.6% increase over 2005
· Diluted earnings per share up 24.1% to $1.08
· Assets, loans and deposits up 28.4%, 28.3%, and 29.1%
· Efficiency ratio improved from 46.5% to 45.0%
· Two new branches opened
Peter A. Converse, Chief Executive Officer, commented, Were quite pleased with our quarterly and annual results, especially considering the challenging banking environment we faced in 2006. The fourth quarter results included earnings rising 15.3% over the prior year and a 50% reduction in non-performing loans and loans past due 90+ days. For the year, net income and EPS increased over 24%, loans and deposits increased 28% and 29%, respectively, and the efficiency ratio improved to 45%. While local deposit rates have receded somewhat since the summer, competition for deposits remains keen and net interest margin pressure continues as the key challenge for 2007.
Converse continued, Looking forward, we feel we can continue to report strong earnings relative to peers as we focus on strategies to counter the effect of margin pressure. Those strategies include lower cost deposit generation via multiple promotions and employee incentives as well as increasing non-interest income. Were also optimistic about continued strong balance sheet growth and asset quality and our ability to continue to attract top notch talent to maintain our momentum. Already this month, weve added two more seasoned, in-market commercial lenders and are continuing to beef up our residential mortgage loan operation. In fact, were looking to significantly increase our mortgage loan origination volume this year which, despite some necessary build-up in support infrastructure, still should add nicely to that departments contribution to non-interest income. And finally, we will be expanding our presence into new markets with at least five new branches this year starting with the first in April.
The following information was filed by Virginia Commerce Bancorp Inc (VCBI) on Tuesday, January 23, 2007 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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