Profit Falls at Virginia Commerce Bancorp
Assets at Virginia Commerce Bancorp of Arlington are up 21.3 percent year-over-year as of March 31, to $2.5 billion. But the banking company's profit fell almost 36 percent, to $4.1 million from $6.5 million in the comparable period a year earlier.
Provisions for loan losses in the quarter were $4.1 million, up from $360,000. Non-performing assets and loans 90 days or more past due increased to $25.2 million from $3.9 million.
"Obviously, we are disappointed with the increase in non-performing assets and the resulting decline in earnings from higher loan loss provisioning, caused by the downturn in the residential real estate market. However, we feel we have a good grasp on the magnitude of risk in our real estate loan portfolio and are confident that we can navigate successfully through this challenging economic environment," said CEO Peter A. Converse. He said the company has avoided problem areas that include subprime loans, collateralized debt obligations and structured investment vehicles.
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