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 and year ended December
31, 2014.
Earnings
For the three months ended December 31, 2014, the Company's net
income available to common stockholders was $1.3 million, or $0.08
per diluted share, compared to net income available to common
stockholders of $916 thousand, or $0.06 per diluted share, for the
same period in 2013. This represents an increase of $335 thousand,
or 36.57%, in net income available to common stockholders for the
fourth quarter of 2014 compared to the fourth quarter of 2013.
For the year ended December 31, 2014, the Company's net income
available to common shareholders was $4.4 million, or $0.29 per
diluted share, compared to net income available to common
shareholders of $3.5 million, or $0.25 per diluted share, for the
same period in 2013. This represents an increase in net income
available to common stockholders of $835 thousand, or 23.66%, over
the year ended December 31, 2013.
Factors contributing to the increase in net income available to
common stockholders, described above, for the quarter ended
December 31, 2014 are as follows:
- Net interest income improved to $5.0 million for the fourth
quarter of 2014, compared to $4.8 million in the fourth quarter of
2013, an increase of $279 thousand or 5.87%.
- The increase in net interest income was somewhat offset by a
decrease in non interest income. Non interest income was $443
thousand for the fourth quarter of 2014 compared to $597 thousand
for the fourth quarter of 2013, a decrease of $154 thousand or
25.80%.
- The net interest margin was 3.58% for the quarter ended
December 31, 2014, compared to 3.72% for the quarter ended December
31, 2013, a 14 basis point decrease. This decrease was driven by
continued market pressure on loan yield as well as decreases in the
investments portfolio yield because the duration of the portfolio
has been intentionally shortened to be better positioned for rising
interest rates.
- Noninterest expense decreased to $3.6 million in the quarter
ended December 31, 2014 compared to $4.1 million in the same period
of 2013, a $490 thousand or 11.95% decrease.
Factors contributing to the increase in net income available for
common stockholders, described above, for the year ended December
31, 2014 are as follows:
- Net interest income improved to $19.4 million for the year
ended December 31, 2014, compared to $18.0 million for the year
ended December 31, 2013, an increase of $1.4 million or 7.87%.
- The increase in net interest income was somewhat offset by a
decrease in noninterest income. Noninterest income was $1.8 million
for the year ended December 31, 2014 compared to $2.4 million in
2013, a decrease of $580 thousand or 24.15%.
- The net interest margin was 3.60% for the year ended December
31, 2014, compared to 3.64% for the year ended December 31, 2013, a
4 basis point decrease. This decrease was driven by continued
market pressure on loan yield as well as decreases in the
investments portfolio yield because the duration of the portfolio
has been intentionally shortened to be better positioned for rising
interest rates.
- Noninterest expense was essentially the same in 2014 as it was
in 2013, with only a slight increase of less than 1% year over
year.
Growth
At December 31, 2014, total assets were $598.5 million, compared
to $547.9 million at December 31, 2013, a $50.6 million or 9.25%
increase. This growth is primarily attributable to the Bank's
increased commitment and visibility in the local marketplace and
the continued improvement in the market area's economic stability.
For the year ended December 31, 2014, loan growth, net of the
allowance, was $50.6 million, or an increase of 11.96% over the
December 31, 2013 balance of $423.2 million.
Gross loans at December 31, 2014, were $481.8 million compared
to $431.3 million at December 31, 2013, a $50.5 million or 11.71%
increase. The Bank continued to see loan demand in the market as
the economy and consumer confidence improved.
Total deposits at December 31, 2014, were $479.5 million, an
increase of $23.5 million or 5.16%, from $456.0 million at December
31, 2013. Non-interest bearing deposits increased to $70.8 million
compared to $67.7 million at December 31, 2013, an increase of $3.1
million or 4.54%. Core demand deposit accounts were $97.2 million
at December 31, 2014 compared to $83.1 million at December 31,
2013, an increase of $14.1 million or 16.98%.
Asset Quality
The allowance for loan losses was $7.9 million or 1.63% of total
loans at December 31, 2014, compared to $8.2 million or 1.89% of
total loans at December 31, 2013.
During the quarter ended December 31, 2014, the Company had
charge-offs of $111 thousand, recoveries of $82 thousand and no
provision was made for loan losses.
During the year ended December 31, 2014, the Company had
charge-offs of $773 thousand, recoveries of $834 thousand and a
recovery of provision for loan losses of $352 thousand.
The following table reflects details related to asset quality
and the allowance for loan losses:
|
|
|
|
December 31 |
December 31 |
|
2014 |
2013 |
|
(Dollars in thousands) |
Nonaccrual loans |
$ 3,430 |
$ 4,467 |
Loans past due 90 days and accruing
interest |
-- |
-- |
Total nonperforming loans |
3,430 |
4,467 |
Other real estate owned |
1,810 |
2,658 |
Total nonperforming assets |
$ 5,240 |
$ 7,125 |
|
|
|
Allowance for loan losses to period end
loans |
1.63% |
1.89% |
Nonperforming assets to total loans &
OREO |
1.09% |
1.64% |
Nonperforming assets to total assets |
0.88% |
1.30% |
Allowance for loan losses to nonaccrual
loans |
229.56% |
182.80% |
|
|
|
|
Twelve Months Ended |
|
December 31 |
December 31 |
|
2014 |
2013 |
Allowance for loan losses |
|
|
Beginning balance |
$ 8,165 |
$ 7,269 |
Recovery of provision for loan
losses |
(352) |
(186) |
Net Charge offs / (Recoveries) |
(61) |
(1,082) |
Ending balance |
$ 7,874 |
$ 8,165 |
Capital
Total Risk Based Capital at December 31, 2014, was 13.53%,
compared to 13.78% at December 31, 2013. Tier 1 Risk Based Capital
at December 31, 2014, was 11.00%, compared to 12.34% at December
31, 2013. Additionally, tangible common equity increased to 8.30%
at December 31, 2014 from 8.06% at December 31, 2013.
In a joint statement First Capital Bancorp, Inc. Managing
Director and Chief Executive Officer, John Presley, and First
Capital Bank President and CEO, Bob Watts, commented, "2014 was a
banner year for our company; we achieved record earnings and
outperformed 2013 by 23%. We saw double digit loan growth and
double digit core deposit growth which positions the Company well
for the future, and we are excited about the prospects. We are also
pleased, as we announced last month, about our intent to pay a
dividend in the second quarter of 2015."
On January 10, 2014, 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.
During the third quarter of 2014, the Bank retired $2.0 million
of subordinated debt which had an interest rate of 1.60%.
Noninterest Income
Noninterest income, including gains on sales of securities,
totaled $443 thousand for the quarter ended December 31, 2014, a
decrease of $154 thousand or 25.80% from $597 thousand earned in
the quarter ended December 31, 2013. The primary drivers in this
decrease were a decline of $69 thousand in gain on sale of loans
from wholesale mortgage and a decrease of $87 thousand in gain on
sale of securities.
For the year ended December 31, 2014, noninterest income,
including gains on sales of securities, totaled $1.8 million, a
decrease of $580 thousand or 24.15% compared to $2.4 million earned
in the year ended December 31, 2013. The primary drivers in this
decrease were a $743 thousand decline in gain on sale of loans from
wholesale mortgage slightly offset by a $96 thousand increase in
gain on sale of securities. During the first quarter of 2014, 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.
Noninterest Expense
Total noninterest expense was $3.6 million for the fourth
quarter of 2014, compared to $4.1 million in the fourth quarter of
2013, a decrease of $490 thousand or 11.95%. The primary drivers of
this decrease were the closure of the mortgage division in the
first quarter of 2014, and acceleration of restricted stock expense
incurred in the fourth quarter of 2013.
For the year ended December 31, 2014, total noninterest expense
totaled $15.1 million compared to $14.9 million for the year ended
December 31, 2013, a $143 thousand or 0.96% increase.
On December 22, 2014 First Capital Bancorp, Inc. announced that
its Board of Directors approved an annual cash dividend policy,
with the first dividend expected to be paid in the second quarter
of 2015. The Board anticipates that the initial annual dividend
will be $.04 per share.
John Presley, First Capital Bancorp, Inc. Chief Executive
Officer, commented, "The Board's decision to initiate an annual
dividend reflects our confidence in the earnings growth we are
experiencing from our core business of community banking. We also
expect these earnings to support the growth we have enjoyed and
expect to continue."
The Board of Directors also authorized the repurchase of up to
300,000 shares of its outstanding common stock. The company intends
and expects to accomplish the repurchases through open market
transactions, though it could affect the repurchases through other
means such as privately negotiated transactions.
About First Capital Bank:
The Bank currently operates eight 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 Chesterfield County, in
Bon Air and inside the Village at Swift Creek Kroger
store.
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, |
|
2014 |
2013 |
2014 |
2013 |
Selected Operating
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ 6,285 |
$ 6,008 |
$ 24,532 |
$ 23,096 |
Interest expense |
1,250 |
1,252 |
5,168 |
5,144 |
Net interest income |
5,035 |
4,756 |
19,364 |
17,952 |
(Recovery of) provision for loan losses |
-- |
(200) |
(352) |
(186) |
Other noninterest income |
370 |
437 |
1,397 |
2,073 |
Securities gains (losses) |
73 |
160 |
425 |
329 |
Noninterest expense |
3,609 |
4,099 |
15,055 |
14,912 |
Income before income tax |
1,869 |
1,454 |
6,483 |
5,628 |
Income tax expense |
618 |
452 |
2,095 |
1,754 |
Net income |
$ 1,251 |
$ 1,002 |
$ 4,388 |
$ 3,874 |
Less: Preferred dividends |
$ -- |
$ 86 |
$ 24 |
$ 345 |
Net income available to common
shareholders |
$ 1,251 |
$ 916 |
$ 4,364 |
$ 3,529 |
Basic net income per common share |
$ 0.10 |
$ 0.08 |
$ 0.35 |
$ 0.29 |
Diluted net income per common share |
$ 0.08 |
$ 0.06 |
$ 0.29 |
$ 0.25 |
|
|
|
|
|
|
As of and for the Three Months
Ended |
As of and for the Twelve Months
Ended |
|
December 31, |
December 31, |
|
2014 |
2013 |
2014 |
2013 |
Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
Total assets |
$ 598,538 |
$ 547,885 |
$ 598,538 |
$ 547,885 |
Loans, net |
473,789 |
423,160 |
473,789 |
423,160 |
Deposits |
479,507 |
455,968 |
479,507 |
455,968 |
Borrowings |
64,638 |
38,548 |
64,638 |
38,548 |
Stockholders' equity |
49,652 |
49,682 |
49,652 |
49,682 |
Book value per share |
$ 3.86 |
$ 3.52 |
$ 3.86 |
$ 3.52 |
Tangible Common Equity to Assets |
8.30% |
8.06% |
8.30% |
8.06% |
Total shares outstanding, in thousands |
12,864 |
12,552 |
12,864 |
12,552 |
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
Allowance for loan losses |
$ 7,874 |
$ 8,165 |
$ 7,874 |
$ 8,165 |
Nonperforming assets |
5,240 |
7,125 |
5,240 |
7,125 |
Net chargeoffs (recoveries) |
29 |
226 |
(61) |
(1,082) |
Net chargeoffs (recoveries) to average
loans |
0.01% |
0.05% |
-0.01% |
-0.26% |
Allowance for loan losses to period end
loans |
1.63% |
1.89% |
1.64% |
1.89% |
Nonperforming assets to total loans &
OREO |
1.09% |
1.64% |
1.09% |
1.64% |
|
|
|
|
|
Selected Performance
Ratios: |
|
|
|
|
Return on average assets |
0.83% |
0.73% |
0.76% |
0.73% |
Return on average equity |
10.12% |
8.05% |
9.30% |
8.05% |
Net interest margin (tax equivalent
basis) |
3.58% |
3.72% |
3.60% |
3.64% |
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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