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FOR IMMEDIATE RELEASE:
Virginia Commerce Bancorp, Inc. Reports A Fourth Quarter Profit and Continued Reductions in Non-Performing Assets
ARLINGTON, Va., Tuesday, January 26, 2010Virginia Commerce Bancorp, Inc. (the Company) (Nasdaq: VCBI), parent company of Virginia Commerce Bank (the Bank), today reported net income to common stockholders of $2.9 million, or $0.11 per diluted common share, for the fourth quarter of 2009, compared with earnings of $1.1 million, or $0.04 per diluted common share, for the same period in 2008. Net interest margin expansion and reduced provisions for loan losses, as non-performing assets declined during the quarter, drove the improvement in earnings on a year-over-year and sequential basis. Fourth quarter earnings were impacted by $1.1 million in loan loss provisions, a $1.4 million impairment loss on securities and a $3.0 million provision for a contingent liability related to an off-balance sheet letter-of-credit. However, overall results represent a significant turnaround as total non-performing assets and loans 90+ days past due decreased $25.4 million, or 20.6%, from $123.5 million at September 30, 2009, to $98.1 million, and net-charge-offs of $6.1 million were down from $17.9 million in the third quarter.
Peter A. Converse, Chief Executive Officer, commented, We are encouraged by our continued progress in reducing problem assets and being able to finish the year on a profitable note. This quarter represents the third consecutive quarterly reduction in NPAs and 90+ days past due loans from the first quarter peak of $162 million to our previously stated goal of less than $100 million by year-end. Notable progress was also made in decreasing loans past due 30 to 89 days from $30.1 million as of September 30, 2009, to $4.7 million at December 31. Barring any unforeseen escalation in credit deterioration, it appears that meaningful improvement in asset quality metrics will be sustainable through 2010 without the significant level of provisioning and charge-offs incurred last year. With the fourth quarter reduction in non-performing loans, the loan loss reserve coverage ratio has risen from 80.5% as of September 30, 2009, to 93.6% at year-end with minimal provisioning. Additionally, the percent of NPAs and loans 90+ days past due to total assets declined further, from 4.52% to 3.60% on a sequential basis, and is anticipated to be in the 1.50 2.00% range by year-end.
Converse continued, With our profit in the fourth quarter, the prospects for improved performance in 2010 are promising. We feel were on the right track with positive trends in problem loans and credit costs. Our core earnings were again over $12 million for the quarter, driven largely by an increasing net interest margin and stringent operating expense containment. As provisioning, collection, impairment and FDIC insurance expenses normalize over time, the strength of our core earnings portends well for our return to stronger bottom line performance.
SUMMARY REVIEW OF FINANCIAL PERFORMANCE
Net Income (Loss)
For the three months ended December 31, 2009, the Company recorded net income of $4.1 million. After an effective dividend of $1.2 million to the U.S. Treasury on preferred stock, the Company reported net income to common stockholders of $2.9 million, or $0.11 per diluted common share, compared to earnings of $1.1 million, or $0.04 per diluted common share, in the fourth quarter of 2008. For the year ended December 31, 2009, the Company reported a net loss to common stockholders of $37.9 million compared to earnings of $12.8 million for the same period in 2008. Earnings for the year were significantly impacted by loan loss provisions of $81.9 million, taken in consideration of the level of non-
The following information was filed by Virginia Commerce Bancorp Inc (VCBI) on Tuesday, January 26, 2010 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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