Profile: Virginia Commerce Bancorp Inc (VCBI.OQ)
5 Dec 2013
Virginia Commerce Bancorp, Inc. is the holding company for Virginia Commerce Bank (the Bank). The Bank is a full-service community bank that provides loan and deposit products to commercial and retail customers in the Washington Metropolitan Area, with the primary focus on Northern Virginia. The Bank offers a range of business and consumer banking services through 28 branch offices, one residential mortgage office and one wealth management office. The Bank’s customer base includes small-to-medium sized businesses, including firms that have contracts with the United States Government, associations, retailers and industrial businesses, professionals and their firms, business executives, investors and consumers. The Bank’s primary service area consists of the Northern Virginia suburbs of Washington, D.C., including Arlington, Fairfax, Fauquier, Loudoun, Prince William, Spotsylvania and Stafford Counties and the cities of Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas and Manassas Park. Its service area also covers, to a lesser extent, Washington, D.C. and the nearby Maryland counties of Montgomery and Prince Georges.
The Bank’s lending activities are its principal source of income. Real estate loans, including residential permanents and construction, and commercial permanents, represent the major portion of the Bank’s loan portfolio. At December 31, 2011, $136.7 million of real estate construction loans were to commercial builders of single-family housing, $14.4 million were to individuals on single-family properties and $175.3 million were related to commercial properties. The majority of the Bank’s loan portfolio consists of construction and commercial mortgage real estate loans. At December 31, 2011, the Bank had $136.7 million of construction loans to commercial builders of single family housing in the Northern Virginia market, representing 6.3% of total loans.
The Bank had $1.13 billion, or 52.2%, of the loan portfolio at December 31, 2011, secured by non-farm non-residential properties with $460.8 million, or 21.2%, of the loan portfolio representing owner-occupied non-farm, non-residential properties. In addition, the Bank had $252.4 million, or 11.6%, of commercial loans to businesses and organizations, including trade associations, professional corporations, community associations, government contractors, medical practitioners, property management companies, religious organizations and houses of worship, heavy equipment contractors and others primarily located in the Northern Virginia market.
The securities portfolio serves as a primary source of liquidity. The securities portfolio consists of two components, securities held-to-maturity and securities available-for-sale. As of December 31, 2011, its securities portfolio included the United States Government Agency obligations, obligations of states/political subdivisions and pooled trust preferred securities. The United States Government Agency obligations include senior debt issuances, mortgage-backed pass-through securities and collateralized mortgage obligations issued by the Federal Home Loan Banks, Federal Home Loan Mortgage Corporation and Federal National Mortgage Association.
Sources of Funds
The Company’s principal source of funds is deposit accounts consisting of demand deposits, savings and money market accounts, and time deposits. The majority of the Bank’s deposits are attracted from individuals and businesses in the Northern Virginia and the metropolitan Washington D.C. area. At December 31, 2011, the Bank had no brokered time deposits, exclusive of reciprocal deposits. Reciprocal deposits totaled $95.9 million at December 31, 2011. Short-term borrowings also include Federal funds purchased, which are unsecured overnight borrowings from other banks and are generally used to accommodate short-term liquidity needs.
Virginia Commerce Bancorp Inc
5350 LEE HIGHWAY
ARLINGTON VA 22207