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

01 May, 2012, 16:00 ET from First Capital Bancorp, Inc.

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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