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 2013. For the three
months ended September 30, 2013, the Company had net income of $1.1
million compared to $828 thousand for the same period in 2012, an
increase of $249 thousand or 30.07%. Net income available to common
shareholders was $991 thousand or $.07 per diluted share for the
three months ended September 30, 2013 compared to $743 thousand or
$.06 per diluted share for the same period in 2012, an increase of
$248 thousand or 33.38%.
Earnings
Net interest income improved to $4.5 million for the quarter
ended September 30, 2013, compared to $4.2 million in the third
quarter of 2012, an increase of $358 thousand or 8.55%. The net
interest margin for the third quarter of 2013 was 3.65% compared to
3.54% in the third quarter of 2012, an 11 basis point improvement
year over year and a 4 basis point improvement over the 3.61% net
interest margin reported in the second quarter of 2013.
Recoveries during the quarter ended September 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 allowance for loan losses at September 30, 2013,
increased to $8.6 million or 2.06% of total loans from $7.2 million
or 1.97% of total loans at September 30, 2012, and from $7.3
million or 1.93% of total loans at December 31, 2012.
Noninterest income was $459 thousand for the quarter ended
September 30, 2013, compared to $621 thousand in the third quarter
of 2012, a decrease of $162 thousand or 26.09%, driven by the
decrease in gain on sale of mortgage loans to $142 thousand in the
third quarter of 2013 compared to $253 thousand in the third
quarter of 2012, and a decrease on gains on the sale of securities
of a loss of $7 thousand compared to a gain of $53 thousand for the
third quarter of 2012.
Total noninterest expense was $3.5 million for the quarter ended
September 30, 2013, compared to $3.4 million in the third quarter
of 2012, an increase of $51 thousand or 1.48%. Salaries and
employee benefits increased $276 thousand or 14.78% to $2.1 million
for the third quarter of 2013 compared to $1.9 million in the third
quarter of 2012. This increase was primarily due to incentive
accruals in 2013 that did not exist in 2012. This increase was
offset by decreases in FDIC assessments and gains on the sale of
Other Real Estate Owned.
First Capital Bancorp, Inc. Chief Executive Officer, John
Presley commented: "The Board of Directors and management are
pleased with the results for both the third quarter and for the
first nine months 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 September 30, 2013, total assets were $536.7 million compared
to $529.5 million at September 30, 2012, a $7.2 million or 1.37%
increase.
Gross loans, excluding loans held for sale, at September 30,
2013, were $417.2 million compared to $366.6 million at September
30, 2012, a $50.6 million or 13.82% increase year over year. The
increase in loan balances was due primarily to increased production
resulting largely from a new lending team member hired in the
middle of 2012 and an increase in demand from our customers.
Investment securities at September 30, 2013, were $82.8 million
compared to $93.1 million at September 30, 2012, a decrease of
$10.3 million or 11.01%. 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 third quarter of 2013 decreased
$434 thousand or 0.10% to $446.9 million compared to $447.3 million
at September 30, 2012; however, noninterest bearing deposits
increased $10.9 million or 21.25% to $62.4 million from $51.5
million at September 30, 2012.
The decrease in the bond portfolio and increase in noninterest
bearing deposits contributed to the favorable rise in net interest
margin during the third quarter of 2013.
First Capital Bank President and CEO, Bob Watts stated, "We are
very pleased with the performance of our team as they attract new
relationships, expand and enhance existing relationships and
overall grow the Bank. It is gratifying to see the demand for the
products and customer service a community bank such as ours can
provide. We continue to embrace helping more customers in Central
Virginia get to work."
Asset Quality
The allowance for loan losses was $8.6 million or 2.06% of total
loans at September 30, 2013, compared to $7.2 million or 1.97% of
total loans at September 30, 2012. The increase in the
allowance for loan losses was primarily a result of recoveries of
amounts previously charged off. 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 $665 thousand, or
0.16% of gross loans, at the end of the third quarter of 2013, down
from $1.7 million, or 0.47% of gross loans, at the end of the same
period last year.
The following table reflects details related to asset quality
and the allowance for loan losses:
|
September 30, |
|
2013 |
2012 |
|
(Dollars in thousands) |
Nonaccrual loans |
$3,933 |
$9,279 |
Loans past due 90 days and accruing
interest |
-- |
-- |
Total nonperforming loans |
3,933 |
9,279 |
Other real estate owned |
2,602 |
4,502 |
Total nonperforming assets |
$6,535 |
$13,781 |
|
|
|
Allowance for loan losses to period end
loans |
2.06% |
1.97% |
Nonperforming assets to total loans &
OREO |
1.56% |
3.71% |
Nonperforming assets to total assets |
1.22% |
2.60% |
Allowance for loan losses to nonaccrual
loans |
218.44% |
77.69% |
|
|
|
|
Three Months Ended |
|
September 30 |
|
2013 |
2012 |
Allowance for loan losses |
|
|
Beginning balance |
$8,582 |
$7,253 |
Provision for loan losses |
(86) |
156 |
Net charge-offs
(recoveries) |
(96) |
201 |
Ending balance |
$8,591 |
$7,208 |
Capital
Total Risk Based Capital at September 30, 2013, was 13.91%,
compared to 13.94% at September 30, 2012. Tier One Risk Based
Capital at September 30, 2013, was 12.46% compared to 12.37% at
September 30, 2012. Additionally, tangible common equity
increased to 8.08% at the end of the third quarter of 2013 compared
to 7.77% at September 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 |
Nine Months Ended |
|
September 30, |
September 30, |
|
2013 |
2012 |
2013 |
2012 |
Selected Operating
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ 5,781 |
$ 5,697 |
$ 17,088 |
$ 17,304 |
Interest expense |
1,238 |
1,512 |
3,892 |
5,204 |
Net interest income |
4,543 |
4,185 |
13,196 |
12,100 |
Provision for loan losses |
(86) |
156 |
14 |
9,031 |
Other noninterest income |
466 |
568 |
1,636 |
1,267 |
Securities gains |
(7) |
53 |
169 |
79 |
Noninterest expense |
3,493 |
3,442 |
10,813 |
14,729 |
Income (Loss) before income tax |
1,595 |
1,208 |
4,174 |
(10,314) |
Income tax expense (benefit) |
518 |
380 |
1,301 |
(3,668) |
Net income (loss) |
$ 1,077 |
$ 828 |
$ 2,873 |
$ (6,646) |
Less: Preferred dividends |
$ 86 |
$ 85 |
$ 258 |
$ 412 |
Net income (loss) available to common
shareholders |
$ 991 |
$ 743 |
$ 2,615 |
$ (7,058) |
Basic net income (loss) per common share |
$ 0.08 |
$ 0.06 |
$ 0.22 |
$ (0.93) |
Diluted net income (loss) per common
share |
$ 0.07 |
$ 0.06 |
$ 0.19 |
$ (0.93) |
|
|
|
|
|
|
As of and for the Three Months
Ended |
As of and for the Nine Months
Ended |
|
September 30, |
September 30, |
|
2013 |
2012 |
2013 |
2012 |
Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
Total assets |
$ 536,694 |
$ 529,449 |
$ 536,694 |
$ 529,449 |
Loans, net |
408,605 |
359,544 |
408,605 |
359,544 |
Deposits |
446,871 |
447,305 |
446,871 |
447,305 |
Borrowings |
38,071 |
33,094 |
38,071 |
33,094 |
Stockholders' equity |
48,888 |
46,567 |
48,888 |
46,567 |
Book value per share |
$ 3.56 |
$ 3.46 |
$ 3.56 |
$ 3.46 |
Tangible Common Equity to Assets |
8.08% |
7.77% |
8.08% |
7.77% |
Total shares outstanding, in thousands |
12,180 |
11,885 |
12,180 |
11,885 |
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
Allowance for loan losses |
$ 8,591 |
$ 7,208 |
$ 8,591 |
$ 7,208 |
Nonperforming assets |
6,535 |
13,782 |
6,535 |
13,782 |
Net (recoveries) charge-offs |
(96) |
201 |
(1,308) |
11,094 |
Net (recoveries) charge-off to average
loans |
-0.02% |
0.05% |
-0.32% |
2.95% |
Allowance for loan losses to period end
loans |
2.06% |
1.97% |
2.06% |
1.97% |
Nonperforming assets to total loans &
OREO |
1.56% |
3.71% |
1.56% |
3.71% |
|
|
|
|
|
Selected Performance
Ratios: |
|
|
|
|
Return on average assets |
0.80% |
0.63% |
0.72% |
-1.68% |
Return on average equity |
8.95% |
7.13% |
8.05% |
-19.34% |
Net interest margin (tax equivalent
basis) |
3.65% |
3.54% |
3.61% |
3.36% |
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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