Virginia Commerce Bancshares (VCBI) in Arlington recorded a slight dip in quarterly profit as it waited for final approval of its merger with United Bancshares (UBSI).
The $2.8 billion-asset Virginia Commerce earned $7 million in the third quarter, down from $7.1 million in the same period of 2012, it announced Thursday. Per-share earnings of 23 cents beat the average estimate of analysts polled by Bloomberg by 1 cent.
Virginia Commerce's net interest income fell 4%, to $25.3 million, as the company's net loans dropped by 4%, to $2 billion. Lending income decreased despite a widening in net interest margin of 26 basis points, to 3.88%.
Noninterest income dropped by 61%, to $1.8 million, as gains from securities sales fell. Noninterest expense decreased by 2%, to $14.9 million, as costs due to compensation and deposit insurance fell. It recorded $1.2 million in acquisition-related expenses.
The company lowered its loan-loss provision by 41%, to $1.8 million, as net chargeoffs dropped by 76%, to $2.1 million.
In January,
