First Capital Bancorp, Inc. (the "Company") (Nasdaq:FCVA) parent
company to First Capital Bank (the "Bank") reported today its
financial results for the second quarter of 2013. For the three
months ended June 30, 2013, the Company had net income of $1.0
million and net income available to common shareholders of $915
thousand, or $0.07 per diluted share, compared to a net loss of
$7.8 million and a net loss available to common shareholders of
$7.9 million, or $0.99 per diluted share, for the same period in
2012.
Earnings
The improvement in quarter over quarter earnings was driven by
the overall condition of the Company's business and business
environment and by the actions taken in the second quarter of 2012
during which the Company raised capital of $17.8 million and
implemented the Asset Resolution Plan. During the four quarters
since the capital raise and implementation of the Asset Resolution
Plan, net income has totaled $3.3 million and net income per common
shareholder has amounted to $.23 per share on a fully diluted
basis. This represents an 11.5% return over that period of time for
those shareholders who participated in the 2012 capital raise.
Net interest income improved to $4.4 million for the quarter
ended June 30, 2013, compared to $4.0 million in the second quarter
of 2012, an increase of $432 thousand or 10.85%. The net interest
margin for the second quarter of 2013 was 3.61% compared to 3.29%
in the second quarter of 2012, a 32 basis point improvement year
over year and a 3 basis point improvement over the 3.58% net
interest margin reported in the first quarter of 2013.
Recoveries during the quarter ended June 30, 2013 resulting from
previously charged off loans provided an increase in the allowance
for loan losses such that a provision was not needed. The provision
for loan losses was $8.3 million for the second quarter of
2012. The allowance for loan losses increased at June 30,
2013, to $8.6 million or 2.08% of total loans from $7.3 million or
1.97% of total loans at June 30, 2012, and from $7.3 million or
1.93% of total loans at December 31, 2012.
Noninterest income was $744 thousand for the quarter ended June
30, 2013, compared to $388 thousand in the second quarter of 2012,
an increase of $356 thousand or 91.75%, driven by the increase in
gain on sale of mortgage loans to $303 thousand in the second
quarter of 2013 compared to $55 thousand in the second quarter of
2012.
Total noninterest expense was $3.7 million for the quarter ended
June 30, 2013, compared to $7.9 million in the second quarter of
2012, a decrease of $4.2 million, primarily due to the
non-recurring expenses related to the Asset Resolution Plan and
FHLB prepayment penalties incurred during the second quarter of
2012.
First Capital Bancorp, Inc. Chief Executive Officer, John
Presley commented: "The Board of Directors and management are
pleased with the results for both the second quarter and first half
of 2013. Earnings are strong, credit quality metrics are
solid, and the growth in core deposits and loans have us well
positioned for the rest of the year."
Growth
At June 30, 2013, total assets were $538.9 million compared to
$542.9 million at December 31, 2012, a $4.0 million or 0.74%
decrease.
Gross loans, excluding loans held for sale, at June 30, 2013
were $412.6 million compared to $376.1 million at December 31,
2012, a $36.5 million or 9.71% increase year to date, and an
annualized increase of 19.45%. The increase in
loan balances was due primarily to increased production resulting
primarily from a new lending team member hired in the middle of
2012 and an increase in demand from our customers.
Investment securities at June 30, 2013, were $74.9 million
compared to $89.7 million at December 31, 2012, a decrease of $14.8
million or 16.00%. To fund the increased loan demand, some
higher risk rated bonds were sold and cash flows generated from the
investment portfolio were redirected to meet this demand.
Total deposits at the end of the second quarter of 2013
decreased $4.2 million or 0.91% to $454.9 million compared to
$459.1 million at December 31, 2012, however, noninterest bearing
deposits increased $13.0 million or 21.57% to $73.1 million from
$60.1 million at December 31, 2012, representing a 43.14%
annualized growth rate in a strategic area of growth for the
Bank.
The decrease in the bond portfolio and increase in noninterest
bearing deposits contributed to the favorable rise in net interest
margin during the second quarter of 2013.
First Capital Bank President and CEO, Bob Watts stated "We are
very pleased with the performance of our team as they bring new
customers into the bank and we remain proud of the service we are
able to provide all of our customers. It is gratifying to see
the demand for the products and customer service a community bank
such as ours can provide. We look forward to helping more
customers in Central Virginia get to work."
Asset Quality
The allowance for loan losses was $8.6 million or 2.08% of total
loans at June 30, 2013, compared to $7.3 million or 1.93% of total
loans at December 31, 2012. The increase in the allowance for
loan losses was primarily a result of recoveries of amounts
previously charged off. The allowance for loan loss activity
during the second quarter of 2013 was comprised of recoveries of
$2.3 million offset by charge-offs of $1.2 million. We believe
that the growth in the level of the allowance for loan losses is
reasonable in light of our loan growth and the uncertainty that
remains in the economy.
Delinquencies, categorized as loans past due 30-89 days,
continue to show improvement as well, reported at $1.1 million, or
0.27% of gross loans, at the end of the second quarter of 2013 down
from $2.1 million, or 0.55% of gross loans, at the end of the 2012
year.
The following table reflects details related to asset quality
and the allowance for loan losses:
|
June 30, |
|
2013 |
2012 |
|
(Dollars in thousands) |
Nonaccrual loans |
$5,108 |
$9,778 |
Loans past due 90 days and accruing
interest |
-- |
-- |
Total nonperforming loans |
5,108 |
9,778 |
Other real estate owned |
2,158 |
4,787 |
Total nonperforming assets |
$7,266 |
$14,565 |
|
|
|
Allowance for loan losses to period end
loans |
2.08% |
1.97% |
Nonperforming assets to total loans &
OREO |
1.75% |
3.90% |
Nonperforming assets to total assets |
1.35% |
2.80% |
Allowance for loan losses to nonaccrual
loans |
168.01% |
74.18% |
|
|
|
|
Three Months Ended |
|
June 30 |
|
2013 |
2012 |
Allowance for loan losses |
|
|
Beginning balance |
$7,467 |
$8,002 |
Provision for loan losses |
-- |
8,310 |
Net charge-offs (recoveries) |
(1,116) |
9,059 |
Ending balance |
$8,583 |
$7,253 |
Capital
Total Risk Based Capital at June 30, 2013, was 13.64%, 364 basis
points above the regulatory minimum for well capitalized
institutions. Tier One Risk Based Capital at June 30, 2013,
was 12.19%. Additionally, tangible common equity increased to
7.82% at the end of the second quarter of 2013 compared to 7.72% at
June 30, 2012.
The Bank currently operates seven branches in Innsbrook,
near Chesterfield Towne Center on Koger Center Boulevard, 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...Let's Make it Work
First Capital Bancorp,
Inc. |
Financial Highlights |
(Dollars in thousands, except
per share data) |
|
|
|
|
|
|
Three Months Ended |
Six Months Ended |
|
June 30, |
June 30, |
|
2013 |
2012 |
2013 |
2012 |
Selected Operating
Data: |
|
|
|
|
|
|
|
|
|
Interest income |
$ 5,696 |
$ 5,785 |
$ 11,307 |
$ 11,604 |
Interest expense |
1,283 |
1,804 |
2,654 |
3,693 |
Net interest income |
4,413 |
3,981 |
8,653 |
7,911 |
Provision for loan losses |
-- |
8,310 |
100 |
8,875 |
Other noninterest income |
599 |
388 |
1,169 |
700 |
Securities gains |
145 |
-- |
176 |
27 |
Noninterest expense |
3,710 |
7,894 |
7,320 |
11,286 |
Income (Loss) before income tax |
1,447 |
(11,835) |
2,578 |
(11,523) |
Income tax expense (benefit) |
446 |
(4,056) |
783 |
(4,048) |
Net income (loss) |
$ 1,001 |
$ (7,779) |
$ 1,795 |
$ (7,475) |
Less: Preferred dividends |
$ 86 |
$ 129 |
$ 172 |
$ 266 |
Net income (loss) available to common
shareholders |
$ 915 |
$ (7,908) |
$ 1,623 |
$ (7,741) |
Basic net income (loss) per common share |
$ 0.08 |
$ (0.99) |
$ 0.14 |
$ (1.42) |
Diluted net income (loss) per common
share |
$ 0.07 |
$ (0.99) |
$ 0.12 |
$ (1.42) |
|
|
|
|
|
|
As of and for the Three Months
Ended |
As of and for the Six Months
Ended |
|
June 30, |
June 30, |
|
2013 |
2012 |
2013 |
2012 |
Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
Total assets |
$538,937 |
$520,529 |
$538,937 |
$520,529 |
Loans, net |
404,037 |
361,712 |
404,037 |
361,712 |
Deposits |
454,918 |
438,417 |
454,918 |
438,417 |
Borrowings |
33,287 |
33,081 |
33,287 |
33,081 |
Stockholders' equity |
47,625 |
45,607 |
47,625 |
45,607 |
Book value per share |
$3.51 |
$3.38 |
$3.51 |
$3.38 |
Tangible Common Equity to Assets |
7.82% |
7.72% |
7.82% |
7.72% |
Total shares outstanding, in thousands |
12,023 |
11,885 |
12,023 |
11,885 |
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
Allowance for loan losses |
$8,582 |
$7,253 |
$8,582 |
$7,253 |
Nonperforming assets |
7,266 |
14,565 |
7,266 |
14,565 |
Net charge-offs (recoveries) |
(1,115) |
9,059 |
(1,213) |
10,893 |
Net charge-off (recoveries) to average
loans |
-0.27% |
2.39% |
-0.30% |
2.89% |
Allowance for loan losses to period end
loans |
2.08% |
1.97% |
2.08% |
1.97% |
Nonperforming assets to total loans &
OREO |
1.75% |
3.90% |
1.75% |
3.90% |
|
|
|
|
|
Selected Performance
Ratios: |
|
|
|
|
Return on average assets |
0.75% |
-5.83% |
0.68% |
-2.81% |
Return on average equity |
8.35% |
-61.99% |
7.60% |
-32.87% |
Net interest margin (tax equivalent
basis) |
3.61% |
3.29% |
3.59% |
3.23% |
CONTACT: John M. Presley
Managing Director and CEO
804-273-1254
JPresley@1capitalbank.com
Or
William W. Ranson
Executive Vice President and CFO
804-273-1160
WRanson@1capitalbank.com
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