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Table of Contents
PART 1 - FINANCIAL INFORMATION
First Capital Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
March 31, 2008 and December 31, 2007
| 2008 | 2007 | ||||||
| (Unaudited) | |||||||
| ASSETS |
|||||||
| Cash and due from banks |
$ | 11,536,607 | $ | 16,779,538 | |||
| Federal funds sold |
13,277,000 | — | |||||
| Short term debt securities |
10,000,000 | — | |||||
| Total cash and cash equivalents |
34,813,607 | 16,779,538 | |||||
| Investment securities: |
|||||||
| Available for sale, at fair value |
33,007,576 | 32,824,537 | |||||
| Restricted, at cost |
3,804,040 | 3,183,739 | |||||
| Loans, net of allowance for losses |
314,390,784 | 294,234,285 | |||||
| Loans held for sale |
417,000 | — | |||||
| Premises and equipment, net |
3,700,618 | 2,077,820 | |||||
| Accrued interest receivable |
1,666,165 | 1,807,939 | |||||
| Deferred tax asset |
395,505 | 319,097 | |||||
| Other assets |
453,988 | 640,013 | |||||
| Total assets |
$ | 392,649,283 | $ | 351,866,968 | |||
| LIABILITIES |
|||||||
| Deposits |
|||||||
| Noninterest-bearing |
$ | 36,116,494 | $ | 36,541,568 | |||
| Interest-bearing |
258,799,448 | 218,566,755 | |||||
| Total deposits |
294,915,942 | 255,108,323 | |||||
| Accrued expenses and other liabilities |
2,618,557 | 3,380,648 | |||||
| Securities sold under repurchase agreements |
2,584,239 | 2,102,939 | |||||
| Federal funds purchased |
— | 9,261,000 | |||||
| Subordinated debt |
7,155,000 | 7,155,000 | |||||
| Federal Home Loan Bank advances |
50,000,000 | 40,000,000 | |||||
| Total liabilities |
357,273,738 | 317,007,910 | |||||
| STOCKHOLDERS’ EQUITY |
|||||||
| Common stock, $4.00 par value (authorized 5,000,000 shares; shares issued and outstanding, 2,971,171 at March 31, 2008 and December 31, 2007) |
11,884,684 | 11,884,684 | |||||
| Additional paid-in capital |
18,532,552 | 18,492,528 | |||||
| Retained earnings |
4,933,415 | 4,518,278 | |||||
| Accumulated other comprehensive income (loss), net of tax |
24,894 | (36,432 | ) | ||||
| Total stockholders’ equity |
35,375,545 | 34,859,058 | |||||
| Total liabilities and stockholders’ equity |
$ | 392,649,283 | $ | 351,866,968 | |||
See notes to consolidated financial statements.
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Table of Contents
First Capital Bancorp Inc. and Subsidiary
Consolidated Statements of Income
For the Three Months Ended March 31, 2008 and 2007
| Three Months Ended March 31, | ||||||
| 2008 | 2007 | |||||
| (Unaudited) | ||||||
| Interest income |
||||||
| Loans |
$ | 5,479,986 | $ | 3,964,356 | ||
| Investments: |
||||||
| Taxable interest income |
369,559 | 423,137 | ||||
| Tax exempt interest income |
13,473 | 10,264 | ||||
| Dividends |
47,470 | 30,601 | ||||
| Federal funds sold |
113,038 | 74,812 | ||||
| Total interest income |
6,023,526 | 4,503,170 | ||||
| Interest expense |
||||||
| Deposits |
2,615,823 | 2,034,447 | ||||
| FHLB advances |
457,065 | 255,824 | ||||
| Federal funds purchased |
25,902 | 7,023 | ||||
| Subordinated debt and other borrowed money |
123,865 | 141,638 | ||||
| Total interest expense |
3,222,655 | 2,438,932 | ||||
| Net interest income |
2,800,871 | 2,064,238 | ||||
| Provision for loan loss |
325,000 | 122,000 | ||||
| Net interest income after provision for loan loss |
2,475,871 | 1,942,238 | ||||
| Noninterest income |
||||||
| Fees on deposits |
63,901 | 49,631 | ||||
| Fees on mortgage loans |
12,383 | 46,386 | ||||
| Other |
95,956 | 70,895 | ||||
| Total noninterest income |
172,240 | 166,912 | ||||
| Noninterest expenses |
||||||
| Salaries and employee benefits |
1,039,622 | 818,605 | ||||
| Occupancy expense |
205,279 | 184,138 | ||||
| Data processing |
138,127 | 124,198 | ||||
| Professional services |
68,462 | 53,075 | ||||
| Advertising and marketing |
43,652 | 28,006 | ||||
| FDIC assessment |
51,000 | 20,871 | ||||
| Virginia franchise tax |
82,000 | 45,000 | ||||
| Depreciation |
85,831 | 85,562 | ||||
| Other expenses |
291,251 | 211,789 | ||||
| Total noninterest expense |
2,005,224 | 1,571,244 | ||||
| Net income before provision for income taxes |
642,887 | 537,906 | ||||
| Income tax expense |
227,750 | 187,900 | ||||
| Net income |
$ | 415,137 | $ | 350,006 | ||
| Basic income per share |
$ | 0.14 | $ | 0.19 | ||
| Diluted income per share |
$ | 0.14 | $ | 0.19 | ||
See notes to consolidated financial statements.
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Table of Contents
First Capital Bancorp, Inc. and Subsidiary
Consolidated Statements of Stockholders’ Equity and Comprehensive Income
Three Months Ended March 31, 2008 and 2007
(Unaudited)
| Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total Stockholders’ Equity | ||||||||||||
| Balance January 1, 2007 |
$ | 7,184,084 | $ | 6,010,352 | $ | 2,776,277 | ($ | 311,598 | ) | $ | 15,659,115 | |||||
| Net income |
— | — | 350,006 | 350,006 | 350,006 | |||||||||||
| Other comprehensive loss |
||||||||||||||||
| Unrealized holding gain arising during period, (net of tax, $31,230) |
— | — | — | 60,622 | 60,622 | |||||||||||
| Total comprehensive income |
$ | 410,628 | ||||||||||||||
| Stock based compensation expense |
— | 11,828 | — | — | 11,828 | |||||||||||
| Balance March 31, 2007 |
$ | 7,184,084 | $ | 6,022,180 | $ | 3,126,283 | ($ | 250,976 | ) | $ | 16,081,571 | |||||
| Balance January 1, 2008 |
$ | 11,884,684 | $ | 18,492,528 | $ | 4,518,278 | ($ | 36,432 | ) | $ | 34,859,058 | |||||
| Net income |
— | — | 415,137 | 415,137 | 415,137 | |||||||||||
| Other comprehensive loss |
||||||||||||||||
| Unrealized holding gain arising during period, (net of tax, $31,592) |
— | — | — | 61,326 | 61,326 | |||||||||||
| Total comprehensive income |
$ | 476,463 | ||||||||||||||
| Stock based compensation expense |
— | 40,024 | — | — | 40,024 | |||||||||||
| Balance at March 31, 2008 |
$ | 11,884,684 | $ | 18,532,552 | $ | 4,933,415 | $ | 24,894 | $ | 35,375,545 | ||||||
See notes to consolidated financial statements.
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Table of Contents
First Capital Bancorp, Inc. and Subsidiary
Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2008 and 2007
(Unaudited)
| 2008 | 2007 | |||||||
| Cash flows from operating activities |
||||||||
| Net income |
$ | 415,137 | $ | 350,006 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
| Provision for loan losses |
325,000 | 122,000 | ||||||
| Depreciation of premises and equipment |
85,831 | 85,562 | ||||||
| Stock based compensation expense |
40,024 | 11,828 | ||||||
| Deferred income taxes |
(108,000 | ) | — | |||||
| Net accretion of bond premiums/discounts |
(36,775 | ) | (1,257 | ) | ||||
| Decrease (increase) in other assets |
186,025 | (233,697 | ) | |||||
| Increase in accrued interest receivable |
141,774 | 191,951 | ||||||
| Increase (decrease) in accrued expenses and other liabilities |
(762,091 | ) | 214,638 | |||||
| Net cash provided by operating activities |
286,925 | 741,031 | ||||||
| Cash flows from investing activities |
||||||||
| Proceeds from maturities and calls of securities |
17,614,286 | 8,000,000 | ||||||
| Proceeds from paydowns of securities available-for-sale |
725,265 | 588,017 | ||||||
| Purchase of securities available-for-sale |
(18,392,898 | ) | — | |||||
| Redemption (purchase) of FHLB Stock |
(620,300 | ) | 181,300 | |||||
| Purchases of property and equipment |
(195,081 | ) | (149,679 | ) | ||||
| Purchase of land |
(1,513,548 | ) | — | |||||
| Increase in loans held for sale |
(417,000 | ) | — | |||||
| Net increase in loans |
(20,481,499 | ) | (11,578,893 | ) | ||||
| Net cash used in investing activities |
(23,280,775 | ) | (2,959,255 | ) | ||||
| Cash flows from financing activities |
||||||||
| Net (decrease) increase in demand, savings and money market accounts |
(3,618,504 | ) | 14,444,187 | |||||
| Net increase in certificates of deposit |
43,426,123 | 15,538,787 | ||||||
| Advances from FHLB |
10,000,000 | 5,000,000 | ||||||
| FHLB advances called |
— | (10,000,000 | ) | |||||
| Decrease in Federal funds purchased |
(9,261,000 | ) | (6,026,000 | ) | ||||
| Net increase in repurchase agreements |
481,300 | 69,644 | ||||||
| Net cash provided by financing activities |
41,027,919 | 19,026,618 | ||||||
| Net increase in cash and cash equivalents |
18,034,069 | 16,808,394 | ||||||
| Cash and cash equivalents, beginning of period |
16,779,538 | 12,032,026 | ||||||
| Cash and cash equivalents, end of period |
$ | 34,813,607 | $ | 28,840,420 | ||||
| Supplemental disclosure of cash flow information |
||||||||
| Interest paid during the period |
$ | 2,410,961 | $ | 2,488,163 | ||||
| Taxes paid during the period |
$ | 100,000 | $ | 228,533 | ||||
See notes to consolidated financial statements.
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