First Capital Bancorp, Inc. Reports Earnings and Continued Improvement in Credit Metrics

GLEN ALLEN, Va., May 1, 2012 /PRNewswire/ -- First Capital Bancorp, Inc. (the "Company") (NASDAQ: FCVA) parent company to First Capital Bank ("the Bank") reported today its financial results for the first quarter of 2012.  For the three months ended March 31, 2012, the Company had net income of $304 thousand and net income available to common shareholders of $134 thousand, or $0.05 per fully diluted common share, compared to net income of $452 thousand and net income available to common shareholders of $282 thousand, or $0.10 per fully diluted common share, for the same period in 2011.  These results were relatively stable compared to the fourth quarter of 2011, which had net income of $406 thousand and net income available to common shareholders of $236 thousand.

Total assets at March 31, 2012 were $530.1 million, down $11.6 million, or 2.15% from December 31, 2011.  Total loans, net of allowance, increased $6.5 million to $367.5 million up 1.81% from December 31, 2011.  The increase in net loans was the result of new loan origination and the diminishing number of problem loans requiring resolution during the quarter.   Deposits decreased $12.2 million to $428.0 million, down 2.76% from December 31, 2011.  Our deposit strategy was focused on decreasing noncore funding sources and single service CD relationships and increasing noninterest-bearing deposits accounts, which have remained consistent since December 31, 2011.

Core operating results as measured by pre-provision, pre-tax earnings declined when compared to the first quarter of 2011 due to an approximate $17.4 million decline in the loan portfolio, OREO expenses and start up costs for the mortgage division.  For the three months ended March 31, 2012, pre-provision, pre-tax earnings were $877 thousand, down $453 thousand or 34.06%, from $1.3 million for the quarter ended March 31, 2011.




Three Months Ended




March 31,




2012


2011







Income before tax and provision

$ 877


$ 1,330

Provision for loan losses

565


700

Income before income tax

312


630

Income tax (benefit)

8


178

Net income


$ 304


$ 452

The net interest margin continues to remain relatively stable.  For the quarter ended March 31, 2012, net interest margin decreased 6 basis points to 3.27% from 3.33% for the first quarter of 2011. 

Net interest income decreased $178 thousand or 4.33% to $3.9 million for the three months ended March 31, 2012, compared to $4.1 million for the three months ended March 31, 2011.   The decrease in quarter over quarter net interest income was due to a reduction in the gross loan portfolio of approximately $17.4 million as we continue to focus on decreasing our exposure to speculative acquisition and development loans. 

Provisions for loan losses amounted to $565 thousand for the three months ended March 31, 2012 compared to $700 thousand for the same period in 2011.  For the quarter ended March 31, 2012 the Company had net charge-offs of $1.8 million.  The allowance for loan losses at the end of the first quarter of 2012 was 2.13% of total loans compared to 2.69% at the end of the same period in 2011.  We continue to focus on improving overall asset quality in these uncertain economic times while we also continue to work on reducing the level of nonperforming assets.

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






March 31,


December 31,


March 31,






2012


2011






(Dollars in thousands)

Nonaccrual loans



$16,410


$17,691


$20,518

Loans past due 90 days and accruing interest

-


-


41


Total nonperforming loans


16,410


17,691


20,559

Other real estate owned



6,369


7,646


2,739


Total nonperforming assets


$22,779


$25,337


$23,298











Allowance for loan losses to period end loans

2.13%


2.51%


2.69%

Nonperforming assets to total loans & OREO

5.97%


6.71%


5.89%

Nonperforming assets to total assets

4.30%


4.68%


4.40%

Allowance for loan losses to nonaccrual loans

48.76%


52.41%


51.52%











Allowance for loan losses








Beginning balance



$9,271


$9,025


$11,036


Provision for loan losses


565


868


700


Net charge-offs



1,834


622


1,166


Ending balance



$8,002


$9,271


$10,570











Total Risk Based Capital was 13.0%, which is 300 basis points above the regulatory minimum for well capitalized institutions.  Tier 1 Risk Based capital for the first quarter of 2012 was 11.44%.














Minimum To Be Well










Minimum


Capitalized Under










Capital


Prompt Corrective






Actual


Requirement


Action Provision






Amount


Ratio


Amount


Ratio


Amount


Ratio






(Dollars in thousands)

As of March 31, 2012















Total capital to risk weighted assets















Consolidated



$ 51,585


13.00%


$ 31,733


8.00%


$ 39,667


10.00%


Tier 1 capital to risk weighted assets















Consolidated



$ 45,389


11.44%


$ 15,867


4.00%


$ 23,800


6.00%


Tier 1 capital to average adjusted assets














Consolidated



$ 45,389


8.53%


$ 21,290


4.00%


$ 26,613


5.00%














Minimum To Be Well










Minimum


Capitalized Under










Capital


Prompt Corrective






Actual


Requirement


Action Provision






Amount


Ratio


Amount


Ratio


Amount


Ratio






(Dollars in thousands)

As of December 31, 2011














Total capital to risk weighted assets















Consolidated



$ 51,321


13.17%


$ 31,179


8.00%


$ 38,974


10.00%


Tier 1 capital to risk weighted assets















Consolidated



$ 45,195


11.60%


$ 15,589


4.00%


$ 23,384


6.00%


Tier 1 capital to average adjusted assets














Consolidated



$ 45,195


8.37%


$ 21,591


4.00%


$ 26,989


5.00%

In a joint statement, First Capital Bancorp, Inc. Managing Director and CEO, John Presley, and First Capital Bank President, Bob Watts stated, "The Bank and its associates as well as its customers continue to work diligently through the effects of the economic downturn.  We are encouraged that for the third quarter in a row we have seen improvement in our credit metrics." 

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)








Three Months Ended



March 31,



2012


2011

Selected Operating Data:







Interest income

$5,821


$6,295

Interest expense

1,887


2,183

Net interest income 

3,934


4,112

Provision for loan losses

565


700

Noninterest income

340


221

Noninterest expense

3,397


3,003

Income before income tax

312


630

Income tax expense

8


178

Net income


$304


$452

Less: Effective dividend on preferred stock

$170


$170

Net income available to common shareholders

$134


$282






 

First Capital Bancorp, Inc.

Financial Highlights

(Amounts in thousands, except per common share data)








Three Months Ended



March 31,



2012


2011

Per Common Share Data




Income per common share




     Basic


$0.05


$0.10

     Diluted


0.05


0.10

Book value per common share

10.33


11.36






Balance Sheet Data:




Total assets


$530,053


$529,003

Cash and cash equivalents

21,434


33,654

Securities available for sale

94,573


82,244

Securities held to maturity

2,884


2,887

Loans, net


367,518


382,324

Allowance for loan losses

8,002


10,570

Foreclosed assets

6,369


2,739

Bank owned life insurance

8,999


452

Deposits


428,033


418,751

Borrowings


57,952


63,312

Stockholders' equity

41,376


44,294

Total common shares outstanding

2,971


2,971






Asset Quality Ratios




Nonperforming assets  

22,779


23,298

Net charge-offs

1,834


1,166

Allowance for loan losses to total loans

2.13%


2.69%

Nonperforming assets % of total loans & OREO

5.97%


5.89%

Net charge-off to average loans

0.48%


0.30%






Selected Performance Ratios:




Return on average assets

0.23%


0.35%

Return on average equity

2.98%


4.19%

Net interest margin

3.27%


3.33%

Equity to assets

7.81%


8.37%

Tangible common equity to assets

5.79%


6.38%

SOURCE First Capital Bancorp, Inc.



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