GLEN ALLEN, Va., Feb. 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 fourth quarter of 2011. For the three months
ended December 31, 2011, the Company
had net income of $406 thousand and
net income available to common shareholders of $236 thousand, or $0.08 per diluted share, compared to net income
of $312 thousand and net income
available to common shareholders of $142
thousand, or $0.05 per diluted
share, for the same period in 2010.
For the year ended December 31,
2011, the Company had a net loss of $3.1 million and net loss allocable to common
shareholders of $3.8 million, or
($1.26) per diluted share, compared
to a net loss of $2.2 million and a
net loss allocable to common shareholders of $2.9 million, or ($0.96) per diluted share, for the same period in
2010.
The loss for 2011 was due primarily to losses incurred on
several nonaccrual loans and properties included in other real
estate owned during the second and third quarters.
First Capital Bancorp, Inc. Managing Director and CEO
John Presley stated, "The economic
downturn has been very difficult for Banks and their customers and
it has had its effects on the Company's earnings. However, we
are pleased that we have been able to manage through the difficulty
with adequate levels of capital and liquidity."
The Company has been keenly focused on five primary objectives
for the last three years. In order of importance those areas
are asset quality, capital preservation, liquidity, reducing
exposure to real estate acquisition and development loans and
improving core earnings.
Asset Quality
The Company continues to make improvement in most of its key
asset ratios during the quarter which are highlighted below and
presented in an attached spreadsheet.
- Total adversely classified items, those items ranked according
to an internally assigned grade of substandard or worse, as a
percent of Tier 1 capital plus the allowance decreased to 85.6% at
the end of the fourth quarter, compared to 90.0% at the end of the
third quarter of 2011 and 105.3% at the end of the second quarter
of 2011.
- Total adversely classified loans decreased by approximately
$1 million to $38.3 million compared to the third quarter
decrease of $13.0 million (or 25%)
from $52.1 million at the end of the
second quarter of 2011.
- Total non-accrual loans decreased by $679 thousand to $17.7
million at the end of the fourth quarter compared to the
decrease of $3.3 million or 16% from
$21.8 million at the end of the
second quarter of 2011 to $18.5
million at the end of the third quarter of 2011.
- Of the $17.7 million in
non-accrual loans, $9.9 million
required, and have already been subject to, a write-down to their
estimated current market value.
- OREO decreased approximately $890
thousand during the fourth quarter of 2011 to $7.6 million.
- Loans past due 30 to 89 days dropped to its lowest level in two
years from $7.6 million at the end of
the second quarter of 2011 to $2.3
million at the end of the fourth quarter of 2011.
We remain encouraged by the continued improvement in our asset
quality, and will continue to aggressively take measures to further
improve the Company's asset quality.
Capital Preservation
Through the growth in our core earnings and reduction in risk
weighted assets, the Company and the Bank have been able to
maintain relatively strong capital levels despite the
aforementioned losses recognized in the loan portfolio and other
real estate owned.
- At the end of the fourth quarter the Company's total risk based
capital was 13.17% compared to 13.74% at the end of the fourth
quarter of 2010, while the Company's Tier 1 capital ratio was
11.60% compared to 12.08% at the end of the fourth quarter of
2010.
- For the Bank, total risk based capital was 12.97% at the end of
the fourth quarter 2011 compared to 13.38% at the end of the fourth
quarter of 2010, while the Bank's Tier 1 capital levels were 11.40%
at the end of the fourth quarter of 2011 compared to 11.71%
at the end of the fourth quarter of last year.
Liquidity
The Company continues to maintain high levels of liquidity and
closely monitors its sensitivity to interest rate risk.
- As of December 31, 2011 the
Company had approximately $50.3
million in cash and cash equivalents on the balance
sheet.
- The loan to deposit ratio was 84.3%.
- Loans to deposits and borrowings was 75.4%.
- Loans to available funds was 55.7%.
- Unpledged securities were $72.6
million.
Reducing Exposure to Real Estate Acquisition and Development
Loans
As a result of various actions, we have reduced real estate
acquisition and development loan balances from a high of
approximately 195% of capital to 108% at December 31, 2011. We will continue to
make every effort to further reduce the level of the Company's
exposure to these types of loans.
Improving Core Earnings
During the third quarter of 2011 the Company started a wholesale
and retail mortgage operation which we expect to substantially
improve the levels of our noninterest income.
First Capital Bank CEO Bob Watts
stated "We are excited about the opportunity to bring mortgage
products to our First Capital customers. We are pleased that
we have been able to attract such well respected mortgage
professionals to our First Capital Team."
Total assets at December 31, 2011
were $541.7 million, an increase from
December 31, 2010 of $5.7 million or 1.06%. Net loans decreased
$25.2 million to $361.0 million down 6.5% from December 31, 2010. This was the result of a
focused effort by the Bank to decrease its exposure to speculative
real estate loans and dispose of nonperforming assets, while at the
same time maintaining our already strong capital levels and the
level of our allowance for loan losses.
Deposits have increased $13.3
million to $440.2 million, up
3.12% from December 31, 2010.
Our deposit strategy was focused on decreasing noncore
funding sources and single service CD relationships and increasing
noninterest-bearing deposits accounts, which increased $6 million or 15.0% from December 31, 2010, a reflection of the growth of
the First Capital franchise in our marketplace.
For the year ended December 31,
2011 pre-provision, pre-tax, pre-mortgage operation start up
expense earnings were $4.8 million,
up $95 thousand from $4.7 million for the year ended December 31, 2010.
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2011
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2010
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Income before tax and
provision
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$
4,808
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$
4,713
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Mortgage operation start
up
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329
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-
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Provision for loan
losses
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9,441
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8,221
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(Loss) before income
tax
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(4,962)
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(3,508)
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Income tax (benefit)
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(1,886)
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(1,336)
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Net (loss)
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$
(3,076)
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$
(2,172)
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For the quarter ended December 31,
2011, the net interest margin decreased to 3.19% compared to
3.26% in the fourth quarter of 2010. For the year ended
December 31, 2011 the net interest
margin increased 6 basis points to 3.26% from 3.20% the year ended
December 31, 2010. This net interest
margin stability is attributable to the decreasing cost of
interest-bearing liabilities realized. The costs of
interest-bearing liabilities were 1.77% for the fourth quarter of
2011, down 30 basis points from 2.07% for the fourth quarter of
2010. The yield on earning assets decreased 31 basis points
from 5.06% during the fourth quarter of 2010 to 4.75% during the
fourth quarter of 2011.
Net interest income decreased $273
thousand or 6.5% to $3.9
million for the three months ended December 31, 2011 compared to $4.2 million for the three months ended
December 31, 2010. This
decrease is directly attributed to the decrease in the loan
portfolio. For the year ended December
31, 2011 net interest income decreased $265 thousand or 1.6% to $15.9 million.
The provision for loan losses amounted to $869 thousand for the three months ended
December 31, 2011 compared to
$1.1 million for the same period in
2010. For the year ended December 31,
2011 the provision for loan losses was $9.4 million compared to $8.2 million for the same period in 2010. For the
quarter ended December 31, 2011, the
Company had net charge-offs of $623
thousand. For the year ended December
31, 2011 the Company had net charge-offs of $11.2 million. The allowance for loan
losses ended the year at 2.51% of total loans compared to 2.78% at
the end of 2010. This decrease in the level of the allowance
as a percentage of total loans resulted primarily from the decrease
in the level of our nonperforming loans of $6.2 million from $23.9
million at December 31, 2011
to $17.7 million at December 31, 2010. We continue to focus on
improving overall asset quality in these uncertain economic times.
The following table reflects details related to asset quality
and the allowance for loan losses of the Bank:
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Dec.
31,
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2011
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2010
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(Dollars in
thousands)
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Nonaccrual loans
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$17,691
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$22,355
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Loans past due 90 days and
accruing interest
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-
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1,556
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Total nonperforming
loans
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17,691
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23,911
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Other real estate
owned
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7,646
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2,615
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Total nonperforming
assets
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$25,337
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$26,526
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Allowance for loan losses to
period end loans
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2.51%
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2.78%
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Nonperforming assets to total
loans & OREO
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6.71%
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6.63%
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Nonperforming assets to total
assets
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4.68%
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4.95%
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Allowance for loan losses to
nonaccrual loans
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52.41%
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49.37%
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Allowance for loan
losses
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Beginning balance
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$11,036
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$6,600
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Provision for loan
losses
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9,441
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8,221
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Net charge-offs
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11,206
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3,785
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Ending balance
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$9,271
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$11,036
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The Company's regulatory capital ratios remain well above the
regulatory minimum for well capitalized institutions. Total
Risk Based Capital was 13.17% down 42 basis points from
December 31, 2010, yet 317 basis
points above the regulatory minimum for well capitalized
institutions. Tier 1 Risk capital decreased 48 basis points
over the prior year to 11.60%. The capital ratios for the
Company and the Bank as of December 31,
2011 are presented below:
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Minimum To
Be Well
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Minimum
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Capitalized
Under
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Capital
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Prompt
Corrective
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Actual
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Requirement
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Action
Provision
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Amount
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Ratio
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Amount
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Ratio
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Amount
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Ratio
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(dollars in
thousands)
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As of December 31,
2011
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Total capital to risk
weighted
assets
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Consolidated
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$51,321
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13.17%
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$31,179
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8.00%
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$38,974
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10.00%
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First Capital Bank
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$50,526
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12.97%
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$31,165
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8.00%
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$38,956
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10.00%
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Tier 1 capital to risk
weighted
assets
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Consolidated
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$45,195
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11.60%
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$15,589
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4.00%
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$23,384
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6.00%
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First Capital Bank
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$44,402
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11.40%
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$15,583
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4.00%
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$23,374
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6.00%
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Tier 1 capital to
average
adjusted assets
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Consolidated
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$45,195
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8.37%
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$21,591
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4.00%
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$26,989
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5.00%
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First Capital Bank
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$44,402
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8.23%
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$21,588
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4.00%
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$26,985
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5.00%
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The Bank 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 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.
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Financial
Highlights
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(Dollars in
thousands, except per share data)
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Three Months
Ended
|
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Year
Ended
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December
31,
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December
31,
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2011
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2010
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2011
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2010
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Selected Operating
Data:
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Interest income
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$
5,921
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$
6,528
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$
24,327
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$
26,430
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Interest expense
|
2,010
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|
2,344
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|
8,379
|
|
10,217
|
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Net interest income
|
3,911
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|
4,184
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|
15,948
|
|
16,213
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Provision for loan
losses
|
869
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|
1,100
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9,441
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8,221
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Noninterest income
|
707
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251
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2,080
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|
1,050
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Noninterest expense
|
3,236
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2,946
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13,549
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12,550
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Income (loss) before income
tax
|
513
|
|
389
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(4,962)
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(3,508)
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Income tax expense
(benefit)
|
107
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|
77
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(1,886)
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(1,336)
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Net (loss) income
|
$
406
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|
$
312
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$
(3,076)
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$
(2,172)
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Less: Effective dividend on
preferred stock
|
$
170
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$
170
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$
679
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$
678
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Net income (loss) available to
common shareholders
|
$
236
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$
142
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$
(3,755)
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$
(2,850)
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Per Share Data
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Income (loss) per
share
|
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Basic
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$
0.08
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$
0.05
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$
(1.26)
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$
(0.96)
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Diluted
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0.08
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0.05
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(1.26)
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(0.96)
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Book value per share
|
10.11
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11.16
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10.11
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11.16
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Balance Sheet
Data:
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Total assets
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$
541,690
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$
536,025
|
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$
541,690
|
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$
536,025
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Cash and cash
equivalents
|
50,359
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32,367
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50,359
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32,367
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Securities available for
sale
|
84,035
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86,787
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84,035
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86,787
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Securities held to
maturity
|
2,884
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|
2,389
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2,884
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2,389
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Loans, net
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360,969
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386,209
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360,969
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386,209
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Allowance for loan
losses
|
9,271
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11,036
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9,271
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11,036
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Foreclosed assets
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7,646
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2,615
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7,646
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2,615
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Bank owned life
insurance
|
8,917
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|
448
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8,917
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|
448
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Deposits
|
|
440,199
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|
426,870
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440,199
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426,870
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Borrowings
|
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58,763
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63,232
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58,763
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63,232
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Stockholders' equity
|
40,683
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|
43,675
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40,683
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43,675
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Total shares
outstanding
|
2,971
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|
2,971
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|
2,971
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2,971
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Asset Quality
Ratios
|
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Nonperforming assets
|
25,337
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|
26,527
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25,337
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|
26,527
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Net charge-offs
|
|
623
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|
1,087
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|
11,206
|
|
3,785
|
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Allowance for loan losses to
total loans
|
2.51%
|
|
2.78%
|
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2.51%
|
|
2.78%
|
|
Nonperforming assets % of total
loans & OREO
|
6.71%
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|
6.63%
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|
6.71%
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|
6.63%
|
|
Net charge-off to average
loans
|
0.17%
|
|
0.27%
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2.91%
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|
0.92%
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Selected Performance
Ratios:
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Return on average
assets
|
0.30%
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0.23%
|
|
-0.58%
|
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-0.41%
|
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Return on average
equity
|
3.89%
|
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2.75%
|
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-7.11%
|
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-4.74%
|
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Net interest margin
|
3.19%
|
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3.26%
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3.26%
|
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3.20%
|
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Equity to assets
|
7.51%
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8.15%
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7.51%
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8.15%
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SOURCE First Capital Bancorp, Inc.