Virginia Commonwealth Financial Corporation Announces First Quarter Earnings

Apr 18, 2001, 01:00 ET from Virginia Commonwealth Financial Corporation

    CULPEPER, Va., April 18 /PRNewswire/ -- Virginia Commonwealth Financial
 Corporation (Nasdaq: VCFC) today reported first quarter 2001 earnings of $1.22
 million or $.53 per share, compared to earnings of $1.22 million or $.52 per
 share for the quarter ended March 31, 2000. Improvements in non-interest
 income were offset by relatively flat net interest income growth due to net
 interest margin pressure and an increase in non-interest expenses. VCFC's
 earnings for the first quarter produced a return on average assets of 1.08%
 and a return on average equity of 9.72%, compared to prior year ratios of
 1.17% and 10.40%, respectively.
     "While earnings were relatively static on a quarter to quarter comparison,
 we are quite pleased with certain performance aspects of our business model,
 and are optimistic for the remainder of the year" stated Jeffrey W. Farrar,
 Executive Vice President and Chief Financial Officer. "We continue to focus on
 diversification of our business lines, resulting in a 29% increase in
 recurring non-interest income for the quarter. Last year's rate environment
 continued to impact our net interest margin during the quarter, but we began
 to see some easing near the end of the quarter, and anticipate a more
 favorable result in the current rate environment. We have implemented some
 cost cutting measures on the operations side to facilitate a return to
 expected levels of profitability growth."
     VCFC's trust and investment advisory affiliate, Virginia Commonwealth
 Trust Company, reported a 68% increase in fee income for the quarter, with
 gross fees of $360 thousand compared to $214 thousand in 2000. Assets under
 management were valued at $146.4 million at March 31, 2001, an increase of
 $20.6 million or 16.36% from $125.9 million at December 31, 2000. Mortgage
 operations also showed growth on the strength of refinance activity, with fee
 income growth of $104 thousand to $183 thousand for the first quarter,
 compared to $83 thousand in 2000.
     At March 31, VCFC had $465.9 million in assets and fourteen banking
 offices in north central Virginia. VCFC's common stock is traded on the NASDAQ
 Small Cap Market under the trading symbol VCFC. The closing price of the stock
 on April 17, 2001 was $26.50 per share.
     For additional information about VCFC's financial performance, stock price
 and organization, please visit the website at http://www.VCFC.com .
 
     This press release contains forward-looking statements as defined by
 federal securities laws. These statements may address issues that involve
 significant risks, uncertainties, estimates and assumptions made by
 management. Actual results could differ materially from current projections.
 Please refer to VCFC's filings with the Securities and Exchange Commission for
 additional information.
 
                         Selected Financial Information
                 (dollars in thousands, except per share data)
 
                                                      3/31/01       12/31/00
     Balance Sheets
       Investment securities - available
        for sale at fair value                       $100,517        $87,593
       Investment securities - held to
        maturity at amortized cost                                    22,040
       Loans, net                                     316,784        304,917
       Total assets                                   465,853        459,221
       Deposits                                       394,907        389,895
       Other borrowings                                14,787         15,149
       Stockholders' equity                            51,530         49,960
 
                                                      For the quarter ended
                                                      3/31/01        3/31/00
     Statements of Income
       Interest income                                 $8,547         $7,754
       Interest expense                                 4,139          3,430
       Provision for loan losses                          204            155
       Other operating income                           1,127            756
       Other operating expenses                         3,648          3,242
       Income tax expense                                 455            461
       Net income                                      $1,228         $1,222
       Earnings per common share
        - basic and diluted                              $.53           $.52
 
                                                      For the quarter ended
                                                      3/31/01        3/31/00
     Selected Ratios
       Net income per share                              $.53           $.52
       Dividend per share                                 .26            .25
       Return on average assets                          1.08%          1.17%
       Return on average equity                          9.72%         10.40%
       Net interest margin                               4.37%          4.62%
       Efficiency ratio                                 63.53%         60.64%
 
 

SOURCE Virginia Commonwealth Financial Corporation
    CULPEPER, Va., April 18 /PRNewswire/ -- Virginia Commonwealth Financial
 Corporation (Nasdaq: VCFC) today reported first quarter 2001 earnings of $1.22
 million or $.53 per share, compared to earnings of $1.22 million or $.52 per
 share for the quarter ended March 31, 2000. Improvements in non-interest
 income were offset by relatively flat net interest income growth due to net
 interest margin pressure and an increase in non-interest expenses. VCFC's
 earnings for the first quarter produced a return on average assets of 1.08%
 and a return on average equity of 9.72%, compared to prior year ratios of
 1.17% and 10.40%, respectively.
     "While earnings were relatively static on a quarter to quarter comparison,
 we are quite pleased with certain performance aspects of our business model,
 and are optimistic for the remainder of the year" stated Jeffrey W. Farrar,
 Executive Vice President and Chief Financial Officer. "We continue to focus on
 diversification of our business lines, resulting in a 29% increase in
 recurring non-interest income for the quarter. Last year's rate environment
 continued to impact our net interest margin during the quarter, but we began
 to see some easing near the end of the quarter, and anticipate a more
 favorable result in the current rate environment. We have implemented some
 cost cutting measures on the operations side to facilitate a return to
 expected levels of profitability growth."
     VCFC's trust and investment advisory affiliate, Virginia Commonwealth
 Trust Company, reported a 68% increase in fee income for the quarter, with
 gross fees of $360 thousand compared to $214 thousand in 2000. Assets under
 management were valued at $146.4 million at March 31, 2001, an increase of
 $20.6 million or 16.36% from $125.9 million at December 31, 2000. Mortgage
 operations also showed growth on the strength of refinance activity, with fee
 income growth of $104 thousand to $183 thousand for the first quarter,
 compared to $83 thousand in 2000.
     At March 31, VCFC had $465.9 million in assets and fourteen banking
 offices in north central Virginia. VCFC's common stock is traded on the NASDAQ
 Small Cap Market under the trading symbol VCFC. The closing price of the stock
 on April 17, 2001 was $26.50 per share.
     For additional information about VCFC's financial performance, stock price
 and organization, please visit the website at http://www.VCFC.com .
 
     This press release contains forward-looking statements as defined by
 federal securities laws. These statements may address issues that involve
 significant risks, uncertainties, estimates and assumptions made by
 management. Actual results could differ materially from current projections.
 Please refer to VCFC's filings with the Securities and Exchange Commission for
 additional information.
 
                         Selected Financial Information
                 (dollars in thousands, except per share data)
 
                                                      3/31/01       12/31/00
     Balance Sheets
       Investment securities - available
        for sale at fair value                       $100,517        $87,593
       Investment securities - held to
        maturity at amortized cost                                    22,040
       Loans, net                                     316,784        304,917
       Total assets                                   465,853        459,221
       Deposits                                       394,907        389,895
       Other borrowings                                14,787         15,149
       Stockholders' equity                            51,530         49,960
 
                                                      For the quarter ended
                                                      3/31/01        3/31/00
     Statements of Income
       Interest income                                 $8,547         $7,754
       Interest expense                                 4,139          3,430
       Provision for loan losses                          204            155
       Other operating income                           1,127            756
       Other operating expenses                         3,648          3,242
       Income tax expense                                 455            461
       Net income                                      $1,228         $1,222
       Earnings per common share
        - basic and diluted                              $.53           $.52
 
                                                      For the quarter ended
                                                      3/31/01        3/31/00
     Selected Ratios
       Net income per share                              $.53           $.52
       Dividend per share                                 .26            .25
       Return on average assets                          1.08%          1.17%
       Return on average equity                          9.72%         10.40%
       Net interest margin                               4.37%          4.62%
       Efficiency ratio                                 63.53%         60.64%
 
 SOURCE  Virginia Commonwealth Financial Corporation