First Capital Bancorp, Inc. Reports Net Income of $641 thousand for the Fourth Quarter 2012

First Capital Bancorp, Inc. Reports Net Income of $641 thousand for the Fourth
                                 Quarter 2012

PR Newswire

GLEN ALLEN, Va., Feb. 1, 2013

GLEN ALLEN, Va., Feb. 1, 2013 /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 2012. For the
three months ended December 31, 2012, the Company had net income of $641
thousand and net income available to common shareholders of $555 thousand, or
$0.04 per diluted share, compared to net income of $406 thousand and net
income available to common shareholders of $236 thousand, or $0.08 per diluted
share, for the same period in 2011.

Earnings

For the year ended December 31, 2012, the Company had a net loss of $6.0
million and net loss allocable to common shareholders of $6.6 million, or
($0.76.) per diluted share, compared to a net loss of $3.1 million and a net
loss allocable to common shareholders of $3.8 million, or ($1.26) per diluted
share, for the same period in 2011.

The loss for 2012 was due primarily to the implementation of the Asset
Resolution Plan associated with the May 2012 Rights offering.

The improvement in quarter over quarter earnings resulted primarily from the
decrease in the provision for loan losses to $165 thousand in the fourth
quarter of 2012 compared to $869 thousand in the fourth quarter of 2011.
Additional factors contributing to our increase in net income during the
fourth quarter of 2012 are as follows. Net interest income improved to $4.2
million for the quarter compared to $3.9 million in the fourth quarter of
2011, an increase of $331 thousand or 8.47%. Noninterest income was $634
thousand for the fourth quarter of 2012 compared to $272 thousand (net of
securities gains) in the fourth quarter of 2011, an increase of $362 thousand
or 133.09%, driven by the increase in gain on sale of mortgage loans
experienced in the fourth quarter of 2012. Total noninterest expense was $3.7
million for the fourth quarter of 2012 compared to $3.2 million in the fourth
quarter of 2011, an increase of $452 thousand or 13.95%, primarily due to an
increase in salaries and employment benefits and a negative fourth quarter
2011 FDIC accrual caused by the change in the calculation of the premium base,
offset by an improvement in losses on sales and write down of other real
estate owned.

The net interest margin was 3.46% for the quarter ended December 31, 2012
compared to 3.19% for the quarter ended December 31, 2011, a 27 basis point
increase. This was a direct result of the actions taken in the second quarter
of 2012, specifically the restructuring of FHLB advances, the reduction in
nonperforming assets and the increase in noninterest bearing deposits.

Growth

At December 31, 2012 total assets were $542.9 million compared to $541.7
million at December 31, 2011, a $1.2 million or .23% increase from December
31, 2011. This increase was driven primarily by the increase in loans,
including loans held for sale, net of the allowance of $16.5 million or 4.55%,
offset by the decrease in deposits in other banks of $14.4 million or 35.04%.

Gross loans, excluding loans held for sale, at the end of the fourth quarter
of 2012 were $376.2 million compared to $370.2 million at December 31, 2011, a
$6.0 million or 1.63% increase. The increase in loan balance was due
primarily to increased production resulting primarily from a new lending team
member hired in the middle of 2012.

Total deposits at the end of the fourth quarter grew $18.9 million or 4.30% to
$459.1 million compared to $440.2 million at December 31, 2011. Noninterest
bearing deposits increased $13.7 million or 29.45% to $60.1 million compared
to $46.4 million at December 31, 2011.

In a joint statement, First Capital Bancorp, Inc. CEO John Presley and First
Capital Bank President and CEO, Bob Watts stated "The second half of 2012 was
a new beginning for the Company. The results of the fourth quarter confirm
our belief that a bright future is ahead for the shareholders, customers and
employees of First Capital. We are encouraged by the underlying earnings
power of the Company and by the continuing improvement in our credit metrics."

Asset Quality

The allowance for loan losses was $7.3 million or 1.93% of total loans for the
period ended December 31, 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 chargeoffs associated with the implementation 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 December 31, 2012, the Company had charge-offs of
$196 thousand, recoveries of $91.9 thousand and a provision for loan losses of
$165 thousand.

The following table reflects details related to asset quality and the
allowance for loan losses:

                                              December 31,
                                              2012         2011
                                              (Dollars in thousands)
Nonaccrual loans                              $8,014       $17,691
Loans past due 90 days and accruing interest  1,338        -
Total nonperforming loans                     9,352        17,691
Other real estate owned                       3,770        7,646
Total nonperforming assets                    $13,122      $25,337
Allowance for loan losses to period end loans 1.93%        2.51%
Nonperforming assets to total loans & OREO   3.45%        6.71%
Nonperforming assets to total assets          2.42%        4.68%
Allowance for loan losses to nonaccrual loans 90.70%       52.41%
                                              Twelve Months Ended
                                              December 31,
                                              2012         2011
Allowance for loan losses
Beginning balance                             $9,271       $11,036
Provision for loan losses                     9,196        9,441
Net charge-offs                               11,198       11,206
Ending balance                                $7,269       $9,271

Subsequent to year end the company disposed of its largest nonaccrual loan,
reducing nonperforming assets by $1.5 million in January of 2013.

Capital

Total Risk Based Capital at December 31, 2012, was 13.75%, 375 basis points
above the regulatory minimum for well capitalized institutions. Tier One Risk
Based Capital at December 31, 2012, was 12.29%. Additionally, tangible common
equity increased to 7.67% at the end of the fourth 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 December 31, 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 December 31, 2012
 Total capital to risk
 weighted assets
      Consolidated         $ 54,929  13.75%  $      8.00%  $ 39,944  10.00%
                                              31,955
 Tier 1 capital to risk
 weighted assets
      Consolidated         $ 49,108  12.29%  $      4.00%  $ 23,966  6.00%
                                              15,978
 Tier 1 capital to average
 adjusted assets
      Consolidated         $ 49,108  9.19%   $      4.00%  $ 26,714  5.00%
                                              21,371
                                                             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%  $      8.00%  $ 38,974  10.00%
                                              31,179
 Tier 1 capital to risk
 weighted assets
      Consolidated         $ 45,195  11.60%  $      4.00%  $ 23,384  6.00%
                                              15,589
 Tier 1 capital to average
 adjusted assets
      Consolidated         $ 45,195  8.37%   $      4.00%  $ 26,989  5.00%
                                              21,591

Non-Interest Income

Non-interest income, including gains on sales of securities, totaled $634
thousand for the quarter ended December 31, 2012 a decrease of $73 thousand or
10.33% from $707 thousand earned in the quarter ended December 31, 2011. The
improvement in gains on sale of mortgage loans in 2012 were offset by gains
recognized on the sale of securities in 2011.

For the year ended December 31, 2012, non-interest income was $2.0 million
compared to $2.1 million for the year ended December 31, 2011. The
improvement in gains on sale of mortgage loans in 2012 were offset by gains on
the sale of securities in 2011.

Non-interest Expense

Non-interest expense totaled $3.7 million for the quarter ended December 31,
2012 which compares to $3.2 million for the quarter ended December 31, 2011,
an increase of $452 thousand or 13.95%.

For the year ended December 31, 2012 noninterest expense was $18.4 million
compared to $13.5 million for the year ended December 31, 2011. The increase
resulted primarily from prepayment penalties associated with the prepayment of
FHLB advances, write-downs of OREO in connection with the Asset Resolution
Plan, and personnel expenses.

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.
Financial Highlights
(Dollars in thousands, except per share data)
                          Three Months Ended          Twelve Months Ended
                          December 31,               December 31,
                          2012           2011         2012         2011
Selected Operating Data:
Interest income           $         $        $         $   
                          5,711          5,921       23,013      24,327
Interest expense          1,470          2,010        6,674        8,379
Net interest income     4,241          3,911        16,339       15,948
Provision for loan        165            869          9,196        9,441
losses
Other noninterest income  634            272          1,903        1,001
Securities gains          -              435          79           1,079
Noninterest expense       3,691          3,236        18,421       13,549
Income (Loss) before      1,019          513          (9,296)      (4,962)
income tax
Income tax expense        378            107          (3,290)      (1,886)
(benefit)
Net income (loss)         $        $       $         $   
                          641            406        (6,006)     (3,076)
Less: Preferred dividends $        $       $       $     
                           86           170         623         679
Net income (loss)         $        $       $         $   
available to common       555            236        (6,629)     (3,755)
shareholders
Basic net income (loss)   $        $       $        $    
per common share          0.05           0.08        (0.76)      (1.26)
Diluted net income (loss) $        $       $        $    
per common share          0.04           0.08        (0.76)      (1.26)
                          As of and for the Three     As of and for the Twelve
                          Months Ended                Months Ended
                          December 31,               December 31,
                          2012           2011         2012         2011
Balance Sheet Data:
Total assets              $542,947       $541,690     $542,947     $541,690
Loans, net                368,919        360,969      368,919      360,969
Deposits                  459,113        440,199      459,113      440,199
Borrowings                33,026         58,763       33,026       58,763
Stockholders' equity      47,088         40,683       47,088       40,683
Book value per share      $3.49          $10.11       $3.49        $10.11
Tangible Common Equity to 7.67%          5.54%        7.67%        5.54%
Assets
Total shares outstanding, 11,927         2,971        11,927       2,971
in thousands
Asset Quality Ratios
Allowance for loan losses $7,269         $9,271       $7,269       $9,271
Nonperforming assets   13,122         25,337       13,122       25,337
Net charge-offs           104            623          11,198       11,206
Net charge-off to average 0.03%          0.17%        2.97%        2.92%
loans
Allowance for loan losses 1.93%          2.51%        1.93%        2.51%
to period end loans
Nonperforming assets to   3.45%          6.71%        3.45%        6.71%
total loans & OREO
Selected Performance
Ratios:
Return on average assets  0.48%          0.30%        -1.13%       -0.58%
Return on average equity  5.43%          3.89%        -13.01%      -7.11%
Net interest margin (tax  3.46%          3.19%        3.39%        3.26%
equivalent basis)



SOURCE First Capital Bancorp, Inc.

Contact: John M. Presley, Managing Director and CEO, +1-804-273-1254,
JPresley@1capitalbank.com, or William W. Ranson, Senior Vice President and
CFO, +1-804-273-1160, WRanson@1capitalbank.com
 
Press spacebar to pause and continue. Press esc to stop.