Virginia Commerce Bancorp Inc. said Tuesday that strong loan growth powered it to record first-quarter earnings of $6.5 million, up 13.3% from a year earlier.
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The $2 billion-asset company said loans jumped 23.5% overall, to $1.4 billion, largely because of strong growth in commercial and real estate construction lending.
Net interest income rose 10.8%, to $17.9 million, though the net interest margin fell 53 basis points, to 3.74%, because of higher funding costs.
Like many banking companies, Virginia Commerce has responded to competition for deposits by raising rates on savings, money market, and time deposit accounts.
The Arlington company's shares fell 1.5% Tuesday, closing at $19.63.
