First Capital Bancorp, Inc. Reports Continued Improvement in Core Operating Results

GLEN ALLEN, Va., Feb. 11, 2011 /PRNewswire/ -- First Capital Bancorp, Inc. (the "Company") (Nasdaq: FCVA) parent company to First Capital Bank ("the Bank") reported today its financial results for the Fourth Quarter and full year 2010.  For the three months ended December 31, 2010, the Company had net income of $312 thousand and net income available to common shareholders of $142 thousand, or $0.05 per fully diluted share, compared to net income of $532 thousand and net income available to common shareholders of $362 thousand, or $0.12 per fully diluted share, for the same period in 2009.  For the year ended December 31, 2010, the Company had a net loss of $2.2 million and net loss available to common shareholders of $2.8 million, or ($0.96) per fully diluted share, compared to a net income of $308 thousand and a net loss available to common shareholders of $195 thousand, or ($0.07) per fully diluted share, for the same period in 2009.  

Total assets at December 31, 2010 were $536 million, up $5.8 million, or 1.04% from December 31, 2009.  Total loans, net of allowance, decreased $10.9 million to $386.2 million down 2.75% from December 31, 2009.  Deposits increased $4.7 million to $426.9 million, up 1.12% from December 31, 2009.  The deposit growth was focused on noninterest-bearing deposits accounts which increased $2.8 million or 7.52% from December 31, 2009.

Core operating results as measured by pre-provision, pre-tax earnings continued to show significant improvement on a quarterly basis.  For the three months ended December 31, 2010, pre-provision, pre-tax earnings were $1.5 million, up $220 thousand from $1.3 million for the quarter ended December 31, 2009 and up $201 thousand from $1.3 million for the quarter ended September 30, 2010.  For the year ended December 31, 2010, pre-provision, pre-tax earnings were $4.7 million up from $2.7 million for the comparable period in 2009.

John Presley, Managing Director and CEO of First Capital Bancorp stated, "Core operating metrics continue to improve.  Net interest income continues to rise even as we position the balance sheet to be more neutral to changes in interest rates.  We feel that these metrics coupled with our elevated levels of Loan Loss Reserves and more than adequate levels of capital, position the company well as we come out of these extreme economic conditions."


Three Months Ended


Year Ended


Quarter Ended


December 31,


December 31,


September 30,


2010


2009


2010


2009


2010











Pre-provision, pre-tax income

$            1,489


$            1,269


$            4,713


$            2,710


$            1,288

Provision for loan losses

1,100


595


8,221


2,285


375

Income (loss) before income tax

389


674


$          (3,508)


425


913

Income tax (benefit)

77


142


(1336)


117


277

Net income (loss)

$               312


$               532


$          (2,172)


$               308


$               636























Contributing to the improvement in pre-provision, pre-tax earnings was the improvement in net interest margin.  For the quarter ended December 31, 2010, net interest margin increased 18 basis points to 3.26% from 3.08% for the fourth quarter of 2009 and increased 2 basis points from 3.24% for the third quarter of 2010.  This improvement in net interest margin is attributable to decreasing cost of interest-bearing liabilities.  Interest-bearing liabilities were 2.07% for the fourth quarter of 2010 down 68 basis points from 2.75% for the fourth quarter of 2009 and down 15 basis points from the third quarter of 2010.  In the fourth quarter the company charged off approximately $89 thousand of accrued interest for loans put into nonaccrual which prevented the decrease in funding costs to flow through to the net interest margin.  Without this charge off the net interest margin would have been 3.33%.

Net interest income increased $362 thousand or 9.5% to $4.2 million for the three months ended December 31, 2010 compared to $3.8 million for the three months ended December 31, 2009.  For the year ended December 31, 2010 net interest income increased to $16.2 million, a $3.6 million or 28.77% increase over the same period in 2009.  The increase in quarter over quarter net interest income was due to relatively stable loan portfolio yields and a decrease in total funding costs.  

Provisions for loan losses amounted to $1.1 million for the three months ended December 31, 2010 compared to $595 thousand for the same period in 2009.  For the year ended December 31, 2010 provisions for loan losses amounted to $8.2 million compared to $2.3 million for the year ended December 31, 2009.  We continue to focus on improving overall asset quality in these uncertain economic times while the level of nonperforming assets remains significant.  

The following table reflects details related to asset quality and allowance for loan losses of First Capital Bank:



Dec 31,


Sept 30,


June 30,


March 31,



2010



(Dollars in thousands)

Nonaccrual loans

$22,355


$13,146


$11,185


$6,505

Restructured loans

303


3,390


3,390


3,390

Loans past due 90 days and accruing interest

1,556


765


50


3,336


Total nonperforming loans

24,214


17,301


14,625


13,231

Other real estate owned

2,615


2,851


2,102


3,014


Total nonperforming assets

$26,829


$20,152


$16,727


$16,245










Allowance for loan losses









Beginning balance

$11,023


$11,481


$6,800


$6,600


Provision for loan losses

1,100


375


6,285


461


Net charge-offs

1,087


833


1,604


261


Ending balance

$11,036


$11,023


$11,481


$6,800










Allowance for loan losses to period end loans

2.78%


2.70%


2.78%


1.65%

Nonperforming assets to total loans & OREO

6.71%


4.90%


4.03%


3.90%

Nonperforming assets to total assets

5.01%


3.72%


3.06%


3.03%

Allowance for loan losses to nonaccrual loans

49.37%


83.85%


102.65%


104.53%



In the last 12 quarters, the company has increased its allowance for loan losses by $13.4 million while net charge-offs totaled $4.9 million over the same period.  At the same time, the Company's capital position remains strong.  At December 31, 2010, the Company and the Bank continue to exceed all regulatory capital requirements and were classified as well-capitalized for regulatory capital purposes.

First Capital Bank President and CEO Bob Watts noted, "Our focus in this environment continues to be protecting shareholder value and managing asset quality.  While fighting the battles of a heavily depressed real estate market, we are encouraged by the results of our special assets team, and we remain well capitalized, with sound liquidity, strong reserves, and highly valued relationships."

The Company currently operates seven branches in Innsbrook, Chesterfield Towne Center, near Willow Lawn on Staples Mill Road, in Ashland, at Three Chopt and Patterson in Henrico County, at the James Center in downtown, Richmond, and our newest branch in Bon Air, Chesterfield County.  

Readers are cautioned that this press release contains forward-looking statements made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current knowledge, assumptions, and analyses, which it believes are appropriate in the circumstances regarding future events, and may address issues that involve significant risks including, but not limited to: changes in interest rates; changes in accounting principles, policies, or guidelines; significant changes in general economic, competitive, and business conditions; significant changes in or additions to laws and regulatory requirements; and significant changes in securities markets. Additionally, such aforementioned uncertainties, assumptions, and estimates, may cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements.

First Capital Bank…Where People Matter.

First Capital Bancorp, Inc.

Financial Highlights

(Dollars in thousands, except per share data)










Three Months Ended


Year Ended


December 31,


December 31,


2010


2009


2010


2009

Selected Operating Data:












Interest income

$             6,527


$             6,772


$           26,430


$          25,401

Interest expense

2,344


2,950


10,217


12,811

Net interest income  

4,183


3,822


16,213


12,590

Provision for loan losses

1,100


595


8,221


2,285

Noninterest income

251


159


1,050


747

Noninterest expense

2,946


2,712


12,550


10,628

Income before income tax

388


674


(3,508)


424

Income tax expense

76


142


(1,336)


117

Net (loss) income

$                312


$                532


$           (2,172)


$               307

Less: Preferred dividends

$                170


$                170


$                677


$               503

Net (loss) income available to common shareholders

$                142


$                362


$           (2,849)


$             (196)

Income per share








    Basic

$               0.05


$               0.12


$             (0.96)


$            (0.07)

    Diluted

$               0.05


$               0.12


$             (0.96)


$            (0.07)










Three Months Ended


Year Ended


December 31,


December 31,


2010


2009


2010


2009

Balance Sheet Data:
















Total assets

$         535,922


$         530,171


$         535,922


$        530,171

Loans, net

386,209


397,120


$         386,209


397,120

Deposits

426,871


422,135


$         426,871


422,135

Borrowings

63,232


58,390


$           63,232


58,390

Stockholders' equity

43,675


46,458


$           43,675


46,458

Book value per share

$             11.16


$             12.14


$             11.16


$            12.14

Total shares outstanding

2,971,171


2,971,171


$      2,971,171


2,971,171









Asset Quality Ratios








Allowance for loan losses

$           11,036


$             6,600


$           11,036


$            6,600

Nonperforming assets  

26,829


10,384


26,829


10,384

Net charge-offs

1,087


312


3,785


745

Allowance for loan losses to total loans

2.78%


1.64%


2.78%


1.64%

Nonperforming assets % of total loans & OREO

6.71%


2.55%


6.71%


2.55%

Net charge-off to average loans

0.27%


0.08%


0.92%


0.19%









Selected Performance Ratios:








Return on average assets

0.23%


0.06%


-0.41%


0.06%

Return on average equity

2.75%


0.71%


-4.74%


0.71%

Net interest margin

3.26%


2.69%


3.20%


2.69%

Equity to assets

8.15%


8.76%


8.15%


8.76%











SOURCE First Capital Bancorp, Inc.



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