The Washington Post today talks about local community banks (hattip 'Joel and Sonia'):
"By the end of 2007, construction loans accounted for about 28 percent of Arlington-based Virginia Commerce Bancorp's loan portfolio, analysts said. Shares for the Virginia bank are well off their 52-week high of $20.32 as the banking environment has weakened. The stock closed at $12.12 Friday. Bank executives did not return calls seeking comment.I would think a large number of local residents use federal credit unions; in many places of federal employment they're conveniently on the premises.
'Virginia Commerce historically has been one of the best performing banks in the country and it has really been growing at a blistering pace over the last five to 10 years,' said Mark Muth, an analyst with FTN Midwest. 'With the real estate slowdown, obviously that growth has also slowed down and they have hit a wall.'
The number of troubled loans at both Reston-based Millennium Bankshares and Chantilly-based Alliance Bankshares have ticked up as well over the last year. Investors have reacted and their shares have fallen.
. . .
Cardinal Financial has weathered the turbulent credit markets and had essentially no nonperforming loans on its books at year's end. The McLean company's mortgage-banking subsidiary, George Mason, also remained profitable last year, though profits declined.
Bernard H. Clineburg, chief executive of the company, said Northern Virginia will remain a difficult place for community banks for at least the rest of the year.
'I think there is a bomb waiting to blow,' Clineburg said. 'I can feel it. I can smell it. I just don't know where it is going to be.'"