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 2013. For the three
months ended December 31, 2013, the Company had net income of $1.0
million and net income available to common shareholders of $916
thousand, or $0.06 per diluted share, compared to net income of
$641 thousand and net income available to common shareholders of
$555 thousand, or $0.04 per diluted share, for the same period in
2012. This represents a $361 thousand or 56.32% increase in net
income in the fourth quarter of 2013 compared to the fourth quarter
of 2012 and a $360 thousand or 64.75% increase in net income
available to common shareholders.
Earnings
For the year ended December 31, 2013, the Company had net income
of $3.9 million and net income available to common shareholders of
$3.5 million or $0.25 per diluted share compared to a net loss of
$6.0 million and a net loss allocable to common shareholders of
$6.6 million or ($0.76) per diluted share for the same period in
2012. The loss for 2012 was due primarily to the implementation of
the Asset Resolution Plan associated with the Company's May 2012
Rights offering.
Factors contributing to the Company's increase in net income
during the fourth quarter of 2013 are as follows:
- Net interest income improved to $4.8 million for the fourth
quarter of 2013, compared to $4.2 million in the fourth quarter of
2012, an increase of $516 thousand or 12.17%.
- A recovery of the provision for loan losses of $200 thousand
during the 2013 quarter was recognized, compared to a provision for
loan losses of $165 thousand in the fourth quarter of 2012,
resulting in a $365 thousand quarter over quarter improvement.
- Noninterest income totaled $437 thousand for the fourth quarter
of 2013 compared to $634 thousand in the fourth quarter of 2012, a
decrease of $197 thousand or 31.2%, driven by the decrease in gains
on sales of mortgage loans experienced in the fourth quarter of
2013.
- Total noninterest expense was $4.1 million for the fourth
quarter of 2013, compared to $3.7 million in the fourth quarter of
2012, an increase of $408 thousand or 11.05%, primarily due to an
increase in salaries and employment benefits related to incentive
accruals and a one-time accelerated restricted stock vesting
expense of approximately $205 thousand. These increases were
partially offset by decreases in professional services, marketing
and FDIC assessments.
The net interest margin was 3.72% for the quarter ended December
31, 2013, compared to 3.46% for the quarter ended December 31,
2012, a 26 basis point increase. For the year ended December 31,
2013 the net interest margin was 3.64% compared to 3.39% for the
year ended December 31, 2012. This increase was driven by increases
in loans outstanding, decreases in the bond portfolio, decreases in
nonaccrual loans, and increases in demand deposit.
Growth
At December 31, 2013, total assets were $547.9 million, compared
to $542.9 million at December 31, 2012, a $4.9 million or 0.91%
increase. This increase was driven primarily by an increase in
loans, net of the allowance, of $54.2 million or 14.7%, which was
offset by a decrease in interest-bearing deposits in other banks of
$22.8 million or 85.1% and a decrease in investment securities
outstanding of $15.8 million or 17.64%.
Gross loans, excluding loans held for sale, at the end of 2013
were $431.3 million compared to $376.1 million at December 31,
2012, a $55.2 million or a 14.68% increase. The increase in loans
was due primarily to an increase in demand from our customers and
an improvement in the overall business environment.
Total deposits at the end of 2013 decreased by $3.1 million or
0.69% to $456.0 million compared to $459.1 million at December 31,
2012. However, and more importantly, noninterest bearing deposits
increased $7.6 million or 12.64% to $67.7 million compared to $60.1
million at December 31, 2012.
First Capital Bank President and CEO, Bob Watts stated "2013 was
a solid year for our teammates and customers. Our teammates
were able to use their expertise and the strength of the Bank to
help new and existing customers 'make it work' and set the stage
for an exciting future."
Asset Quality
The allowance for loan losses was $8.2 million or 1.89% of total
loans at December 31, 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 from
previously charged off loans and the Company believes it was
prudent in light of the loan growth experienced in 2013.
During the quarter ended December 31, 2013, the Company had
charge-offs of $353 thousand, recoveries of $127 thousand and a
recovery of provision for loan losses of $200 thousand.
The following table reflects details related to asset quality
and the allowance for loan losses:
|
December 31, |
|
2013 |
2012 |
|
(Dollars in thousands) |
Nonaccrual loans |
$ 4,467 |
$ 8,014 |
Loans past due 90 days and accruing
interest |
-- |
1,338 |
Total nonperforming loans |
4,467 |
9,352 |
Other real estate owned |
2,658 |
3,770 |
Total nonperforming assets |
$ 7,125 |
$ 13,122 |
|
|
|
Allowance for loan losses to period end
loans |
1.89% |
1.93% |
Nonperforming assets to total loans &
OREO |
1.64% |
3.45% |
Nonperforming assets to total assets |
1.30% |
2.42% |
Allowance for loan losses to nonaccrual
loans |
182.80% |
90.70% |
|
|
|
|
Twelve Months
Ended |
|
December 31, |
|
2013 |
2012 |
Allowance for loan losses |
|
|
Beginning balance |
$ 7,269 |
$ 9,271 |
Provision for
loan losses |
(186) |
9,196 |
Net charge-offs
(recoveries) |
(1,082) |
11,198 |
Ending balance |
$ 8,165 |
$ 7,269 |
Capital
Total Risk Based Capital at December 31, 2013 was 13.78%,
compared to 13.75% at December 31, 2012. Tier 1 Risk Based
Capital at December 31, 2013 was 12.34% compared to 12.29%, at
December 31, 2012. Additionally, tangible common equity
increased to 8.06% at December 31, 2013 compared to 7.67% at
December 31, 2012.
First Capital Bancorp, Inc. Managing Director and CEO John
Presley commented "It was gratifying to see the Company grow and
expand its reach in 2013 while at the same time achieving
profitability levels that not only supported that growth but
achieve increases in capital levels across the board and continued
the improvement in asset quality."
The following table reflects the regulatory capital ratios of
the Company as of December 31, 2013 and December 31, 2012.
|
|
|
|
|
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, 2013 |
|
|
|
|
|
|
Total capital to risk weighted
assets |
$ 61,060 |
13.78% |
$ 35,446 |
8.00% |
$ 44,307 |
10.00% |
Tier 1 capital to risk weighted
assets |
$ 54,689 |
12.34% |
$ 17,723 |
4.00% |
$ 26,584 |
6.00% |
Tier 1 capital to average
adjusted assets |
$ 54,689 |
10.04% |
$ 21,796 |
4.00% |
$ 27,244 |
5.00% |
|
|
|
|
|
|
|
As of December 31, 2012 |
|
|
|
|
|
|
Total capital to risk weighted
assets |
$ 54,929 |
13.75% |
$ 31,955 |
8.00% |
$ 39,944 |
10.00% |
Tier 1 capital to risk weighted
assets |
$ 49,108 |
12.29% |
$ 15,978 |
4.00% |
$ 23,966 |
6.00% |
Tier 1 capital to average
adjusted assets |
$ 49,108 |
9.19% |
$ 21,371 |
4.00% |
$ 26,714 |
5.00% |
On January 10, 2014, First Capital Bancorp, Inc. (the "Company")
redeemed the remaining 5,531 shares of its Cumulative Perpetual
Preferred Stock, Series A ("Preferred Stock"), for $5.6
million. The Preferred Stock paid a cumulative dividend
quarterly at a rate of 5% per annum. Effective April 2014, the
dividend rate would have increased to 9% per annum. The
Preferred Stock was redeemable at the option of the Company subject
to regulatory approval which was received in November 2013. No
shares of the Preferred Stock remain outstanding.
The Company funded the redemption by executing a variable rate
subordinated note for $6.5 million with a financial
institution. The subordinated note, which qualifies as Tier 2
capital for regulatory purposes, carries an interest rate of 30-day
Libor plus 5.00% per annum with a floor of 5.50% and a maturity of
10 years. Principal is repaid $8 thousand per month for the
first 60 months and $103 thousand per month for the remaining 60
months.
Non-Interest Income
Non-interest income, including gains on sales of securities,
totaled $597 thousand for the quarter ended December 31, 2013, a
decrease of $38 thousand or 5.98% from $634 thousand earned in the
quarter ended December 31, 2012. A decrease in gains on sales
of mortgage loans in 2013 was largely offset by an increase in the
level of gains recognized on the sales of securities in 2013.
Subsequent to the end of 2013, the Company closed its wholesale
mortgage operation. The slowdown in the mortgage originations
business coupled with the increased regulatory burden made the
business difficult to sustain. The Company expects this
decision will be accretive to 2014 earnings.
For the year ended December 31, 2013, non-interest income was
$2.4 million compared to $2.0 million for the year ended December
31, 2012. The improvement was due to an increase in the gains
on sales of mortgage loans in the first half of 2013 of $493
thousand and an increase in the gains from sales of securities of
approximately $250 thousand.
Non-interest Expense
Non-interest expense totaled $4.1 million for the quarter ended
December 31, 2013, compared to $3.7 million for the quarter ended
December 31, 2012, an increase of $408 thousand or
11.05%.
For the year ended December 31, 2013, noninterest expense was
$14.9 million compared to $18.4 million for the year ended December
31, 2012. The decrease resulted primarily from prepayment
penalties associated with the prepayment of FHLB advances and
write-downs of OREO in connection with the Asset Resolution Plan in
2012, net of increased personnel expenses in 2013.
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…Let's Make it Work.
First Capital Bancorp,
Inc. |
Financial Highlights |
(Dollars in thousands, except
per share data) |
|
|
|
|
|
|
Three Months Ended |
Twelve Months Ended |
|
December
31, |
December
31, |
|
2013 |
2012 |
2013 |
2012 |
Selected Operating
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ 6,008 |
$ 5,711 |
$ 23,096 |
$ 23,013 |
Interest expense |
1,252 |
1,470 |
5,144 |
6,674 |
Net interest income |
4,756 |
4,241 |
17,952 |
16,339 |
(Recovery of) provision for loan losses |
(200) |
165 |
(186) |
9,196 |
Other noninterest income |
437 |
634 |
2,073 |
1,903 |
Securities gains |
160 |
-- |
329 |
79 |
Noninterest expense |
4,099 |
3,691 |
14,912 |
18,421 |
Income (loss) before income tax |
1,454 |
1,019 |
5,628 |
(9,296) |
Income tax expense (benefit) |
452 |
378 |
1,754 |
(3,290) |
Net income (loss) |
$ 1,002 |
$ 641 |
$ 3,874 |
$ (6,006) |
Less: Preferred dividends |
$ 86 |
$ 86 |
$ 345 |
$ 623 |
Net income available/(loss) allocable to
common shareholders |
$ 916 |
$ 555 |
$ 3,529 |
$ (6,629) |
Basic net income (loss) per common share |
$ 0.08 |
$ 0.05 |
$ 0.29 |
$ (0.76) |
Diluted net income (loss) per common
share |
$ 0.06 |
$ 0.04 |
$ 0.25 |
$ (0.76) |
|
|
|
|
|
|
As of and for the Three Months
Ended |
As of and for the Twelve Months
Ended |
|
December
31, |
December
31, |
|
2013 |
2012 |
2013 |
2012 |
Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
Total assets |
$547,885 |
$542,947 |
$547,885 |
$542,947 |
Loans, net |
423,160 |
368,919 |
423,160 |
368,919 |
Deposits |
455,968 |
459,113 |
455,968 |
459,113 |
Borrowings |
38,548 |
33,026 |
38,548 |
33,026 |
Stockholders' equity |
49,682 |
47,088 |
49,682 |
47,088 |
Book value per share |
$3.52 |
$3.49 |
$3.52 |
$3.49 |
Tangible Common Equity to Assets |
8.06% |
7.67% |
8.06% |
7.67% |
Total shares outstanding, in thousands |
12,552 |
11,927 |
12,552 |
11,927 |
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
Allowance for loan losses |
$8,165 |
$7,269 |
$8,165 |
$7,269 |
Nonperforming assets |
7,125 |
13,122 |
7,125 |
13,122 |
Net charge-offs (recoveries) |
226 |
104 |
(1,082) |
11,198 |
Net charge-off (recoveries) to average
loans |
0.05% |
0.03% |
-0.26% |
2.97% |
Allowance for loan losses to period end
loans |
1.89% |
1.93% |
1.89% |
1.93% |
Nonperforming assets to total loans &
OREO |
1.64% |
3.45% |
1.64% |
3.45% |
|
|
|
|
|
Selected Performance
Ratios: |
|
|
|
|
Return on average assets |
0.73% |
0.48% |
0.73% |
-1.13% |
Return on average equity |
8.05% |
5.43% |
8.05% |
-13.01% |
Net interest margin (tax equivalent
basis) |
3.72% |
3.46% |
3.64% |
3.39% |
|
|
|
|
|
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
(MM) (NASDAQ:FCVA)
Historical Stock Chart
From Jun 2024 to Jul 2024
(MM) (NASDAQ:FCVA)
Historical Stock Chart
From Jul 2023 to Jul 2024