First Capital Bancorp, Inc. Reports Third Quarter 2012 Financial
Results
GLEN ALLEN, Va., Oct. 22,
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 Third
Quarter of 2012.
Earnings
For the three month period ended September 30, 2012 the Company had net income of
$828 thousand before preferred stock
dividends compared to a net loss of approximately $2.6 million in the third quarter of
2011. Net income allocable to common shareholders was
$742 thousand or $.06 per share compared to a net loss of
$2.8 million or $.93 per share in the same period of 2011.
This improvement resulted primarily from the decrease in the
provision for loan losses from $156
thousand in the third quarter of 2012 compared to
approximately $4.7 million in the
third quarter of 2011. Additional factors contributing to our
increase in net income during the 2012 period are as follows.
Net interest income improved to approximately $4.2 million for the quarter compared to
approximately $4.0 million in the
third quarter of 2011, an increase of approximately $200 thousand or 4.97%. Noninterest income
including gains on sales of securities was $621 thousand for the third quarter of 2012
compared to $313 thousand in the
third quarter of 2011, an increase of $308
thousand or 98.40%. Total noninterest expense was
approximately $3.4 million for the
third quarter of 2012 compared to approximately $3.6 million in the third quarter of 2011, a
decrease of $140 thousand or
3.91%. These positive impacts to our earnings were offset by
an increase in income tax expense of approximately $1.8 million between the two quarters.
The net interest margin was 3.54% for the quarter ended
September 30, 2012 compared to 3.29%
for the third quarter of 2011, a 25 basis point increase.
This was a direct result of the actions taken in the second quarter
of 2012, specifically the repayment of $40
million of FHLB advances, the reduction in nonperforming
assets and the increase in noninterest bearing deposits.
First Capital Bancorp, Inc. Managing Director and CEO,
John Presley stated, "After the
capital raise, the asset resolution plan, the balance sheet
restructure and the repayment of TARP in the second quarter, the
Company viewed the third quarter of 2012 as a new beginning.
We are encouraged by the third quarter results and look forward to
building on these results in the future."
Growth
At September 30, 2012 total assets
were approximately $529.4 million
compared to approximately $541.7
million at December 31, 2011,
a $12.2 million or 2.26% decrease
from December 31, 2011.
This decrease was driven primarily by the prepayment of FHLB
advances and the corresponding decrease in cash on the balance
sheet during the second quarter of 2012.
Gross loans at the end of the third quarter of 2012 were
approximately $366.6 million compared
to approximately $370.1 million at
December 31, 2011, a $3.5 million or 0.94% decrease. The
decrease in loan balance was due primarily to write downs
associated with the asset resolution plan of $7.4 million offset by net loan growth for the
first nine months of 2012 of $3.9
million.
Total deposits at the end of the third quarter grew $7.1 million or 1.61% to $447.3 million compared to $440.2 million at December
31, 2011. Noninterest bearing deposits increased
$5.1 million or 10.99% to
$51.5 million compared to
$46.4 million at December 31, 2011.
First Capital Bank President and CEO, Bob Watts stated, "The moves we made in the
second quarter allowed us to focus on our customers, both existing
and potential, as we seek to grow our business. We were also
fortunate to add two new teammates during the quarter who will help
us broaden our reach. Jeanie
Bode joined us as Senior Vice President of Commercial
Lending and Raleigh Hobson joined us
as a credit analyst. We are pleased that two bankers of this
quality were attracted to our company."
Asset Quality
The allowance for loan losses was $7.2
million or 1.97% of total loans for the period ended
September 30, 2012 compared to
$9.3 million or 2.51% of total loans
at December 31, 2011. The
decrease in the allowance for loan losses was primarily a result of
the asset resolution plan executed in the second quarter of
2012. The allowance for loan losses at the end of the second
quarter of 2012 was $7.3 million or
1.97% of total loans.
During the quarter ended September 30,
2012, the Company had charge-offs of approximately
$440 thousand, recoveries of
approximately $239 thousand and a
provision for loan losses of $156
thousand.
The following table reflects details related to asset quality
and the allowance for loan losses:
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
|
2012
|
|
2011
|
|
(Dollars
in thousands)
|
Nonaccrual
loans
|
$9,279
|
|
$17,691
|
|
$18,456
|
Loans past
due 90 days and accruing interest
|
-
|
|
-
|
|
-
|
Total
nonperforming loans
|
9,279
|
|
17,691
|
|
18,456
|
Other real
estate owned
|
4,502
|
|
7,646
|
|
8,536
|
Total
nonperforming assets
|
$13,781
|
|
$25,337
|
|
$26,992
|
|
|
|
|
|
|
Allowance
for loan losses to period end loans
|
1.97%
|
|
2.51%
|
|
2.42%
|
Nonperforming assets to total loans &
OREO
|
3.71%
|
|
6.71%
|
|
7.07%
|
Nonperforming assets to total assets
|
2.60%
|
|
4.68%
|
|
5.04%
|
Allowance
for loan losses to nonaccrual loans
|
77.69%
|
|
52.41%
|
|
48.91%
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
|
2012
|
|
2011
|
Allowance
for loan losses
|
|
|
|
|
|
Beginning
balance
|
$7,253
|
|
$9,026
|
|
$10,153
|
Provision
for loan losses
|
156
|
|
868
|
|
4,726
|
Net
charge-offs
|
201
|
|
623
|
|
5,853
|
Ending
balance
|
$7,208
|
|
$9,271
|
|
$9,026
|
|
|
|
|
|
|
Capital
Total Risk Based Capital at September 30,
2012, was 13.94%, 394 basis points above the regulatory
minimum for well capitalized institutions. Tier One Risk
Based Capital at September 30, 2012,
was 12.37%. Additionally, tangible common equity increased to
7.77% at the end of the third quarter of 2012 compared to 5.54% at
December 31, 2011, due to the capital
raised in the rights offering and results of the aforementioned
activities.
The following table reflects the regulatory capital ratios of
the Company as of September 30, 2012
and December 31, 2011.
|
|
|
|
|
|
|
|
|
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
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
Total capital to risk weighted
assets
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$54,081
|
|
13.94%
|
|
$31,008
|
|
8.00%
|
|
$38,760
|
|
10.00%
|
Tier 1 capital to risk weighted
assets
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$47,963
|
|
12.37%
|
|
$15,504
|
|
4.00%
|
|
$23,256
|
|
6.00%
|
Tier 1 capital to average adjusted
assets
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$47,963
|
|
9.26%
|
|
$20,711
|
|
4.00%
|
|
$25,889
|
|
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%
|
Non Interest Income
Noninterest income including gains on sales of securities
totaled $621 thousand for the quarter
ended September 30, 2012 an increase
of $308 thousand or 98.40% from
$313 thousand earned in the quarter
ended September 30, 2011. The
improvement was due to an increase of $253
thousand in gains on the sale of mortgage loans and a gain
on sale of investment securities of $53
thousand.
Noninterest Expense
Noninterest expense totaled $3.4
million for the quarter ended September 30, 2012 which compares to $3.6 million for the quarter ended September 30, 2011, a decrease of $140 thousand or 3.91%.
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 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
|
|
Nine
Months Ended
|
|
September
30,
|
|
September
30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Selected Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
5,697
|
|
$
6,054
|
|
$
17,304
|
|
$
18,406
|
Interest
expense
|
1,512
|
|
2,067
|
|
5,204
|
|
6,369
|
Net
interest income
|
4,185
|
|
3,987
|
|
12,100
|
|
12,037
|
Provision
for loan losses
|
156
|
|
4,726
|
|
9,031
|
|
8,572
|
Noninterest income
|
568
|
|
313
|
|
1,267
|
|
729
|
Securities
gains
|
53
|
|
-
|
|
79
|
|
644
|
Noninterest expense
|
3,442
|
|
3,582
|
|
14,729
|
|
10,313
|
Income
(loss) before income tax
|
1,208
|
|
(4,008)
|
|
(10,314)
|
|
(5,475)
|
Income tax
expense (benefit)
|
380
|
|
(1,416)
|
|
(3,668)
|
|
(1,993)
|
Net income
(loss)
|
$
828
|
|
$
(2,592)
|
|
$
(6,646)
|
|
$
(3,482)
|
Less:
Preferred dividends
|
$
86
|
|
$
170
|
|
$
412
|
|
$
509
|
Net income
(loss) available to
common shareholders
|
$
742
|
|
$
(2,762)
|
|
$
(7,058)
|
|
$
(3,991)
|
Basic and
diluted net income
(loss) per common
share
|
$
0.06
|
|
$
(0.93)
|
|
$
(0.93)
|
|
$
(1.34)
|
|
|
|
|
|
|
|
|
|
As of and
for the Three
Months Ended
|
|
As of and
for the
Nine Months Ended
|
|
September
30,
|
|
September
30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Balance
Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$529,449
|
|
$535,631
|
|
$529,449
|
|
$535,631
|
Loans,
net
|
359,544
|
|
363,986
|
|
359,544
|
|
363,986
|
Deposits
|
447,305
|
|
432,469
|
|
447,305
|
|
432,469
|
Borrowings
|
33,094
|
|
58,632
|
|
33,094
|
|
58,632
|
Stockholders' equity
|
46,567
|
|
41,157
|
|
46,567
|
|
41,157
|
Book value
per share
|
$
3.46
|
|
$
10.28
|
|
$
3.46
|
|
$
10.28
|
Tangible
Common Equity to Assets
|
7.77%
|
|
5.70%
|
|
7.77%
|
|
5.70%
|
Total
shares outstanding, in thousands
|
11,885
|
|
2,971
|
|
11,885
|
|
2,971
|
|
|
|
|
|
|
|
|
Asset
Quality Ratios
|
|
|
|
|
|
|
|
Allowance
for loan losses
|
$
7,208
|
|
$
9,026
|
|
$
7,208
|
|
$
9,026
|
Nonperforming assets
|
13,781
|
|
26,992
|
|
13,781
|
|
26,992
|
Net
charge-offs
|
201
|
|
5,853
|
|
11,094
|
|
10,583
|
Net
charge-off to average loans
|
0.05%
|
|
1.54%
|
|
2.95%
|
|
2.73%
|
Allowance
for loan losses to period end loans
|
1.97%
|
|
2.42%
|
|
1.97%
|
|
2.42%
|
Nonperforming assets to total loans &
OREO
|
3.71%
|
|
7.10%
|
|
3.71%
|
|
7.10%
|
|
|
|
|
|
|
|
|
Selected Performance Ratios:
|
|
|
|
|
|
|
|
Return on
average assets
|
0.63%
|
|
-1.93%
|
|
-1.68%
|
|
-0.88%
|
Return on
average equity
|
7.13%
|
|
-23.68%
|
|
-19.34%
|
|
-10.59%
|
SOURCE First Capital Bancorp, Inc.