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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________

Form 10-Q

________________________________________

   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

FIRST CAPITAL BANCORP, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Virginia

001-33543

11-3782033

(State or other jurisdiction of

(Commission File Number)

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

4222 Cox Road, Glen Allen, Virginia 23060

(Address of principal executive offices)

804-273-1160

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   No 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes   No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

 

Large accelerated filer 

Accelerated filer 

Non‑accelerated filer    (Do not check if a smaller reporting company)

Smaller reporting company 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes   No 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

12,950,267 shares of Common Stock, par value $.01 per share, were outstanding at May 11, 2015.


 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

Page

PART I – FINANCIAL INFORMATION 

 

 

 

 

Item 1 – Financial Statements

 

 

 

Consolidated Statements of Financial Condition

 

 

 

 

March 31, 2015 (unaudited) and December 31, 2014

3

 

 

Consolidated Statements of Operations

 

 

 

 

Three Months Ended March 31, 2015 and 2014 (unaudited)

4

 

 

Consolidated Statements of Comprehensive Income  

 

 

 

 

Three Months Ended March 31, 2015 and 2014 (unaudited)

5

 

 

Consolidated Statements of Stockholders’ Equity

 

 

 

 

Three Months Ended March 31, 2015 and 2014 (unaudited)

6

 

 

Consolidated Statements of Cash Flows

 

 

 

 

For the Three Months Ended March 31, 2015 and 2014 (unaudited)

7

 

 

Notes to Unaudited Consolidated Financial Statements

9

 

Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations

30

 

Item 3 – Quantitative and Qualitative Disclosures About Market Risk – Not Applicable

36

 

Item 4 – Controls and Procedures

36

 

 

PART II – OTHER INFORMATION 

 

 

 

 

Item 1 – Legal Proceedings – None to Report

 

 

Item 1A – Risk Factors

37

 

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds-None to Report

37

 

Item 3 – Defaults Upon Senior Securities – None to Report

37

 

Item 4 – Mine Safety Disclosures – None to Report

37

 

Item 5 – Other Information – None to Report

37

 

Item 6 – Exhibits

37

 

 

SIGNATURES 

39

 

 

 

 

 

 

 

 


 

PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements

 

First Capital Bancorp, Inc. and Subsidiary

Consolidated Statements of Financial Condition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

2015

 

2014

 

(Unaudited)

 

 

 

(Dollars in thousands)

ASSETS

 

 

 

 

 

Cash and due from banks

$

11,450 

 

$

11,093 

Federal funds sold

 

8,490 

 

 

 -

Total cash and cash equivalents

 

19,940 

 

 

11,093 

Time deposits in other banks

 

2,000 

 

 

2,000 

Investment securities:

 

 

 

 

 

Available-for-sale, at fair value

 

65,292 

 

 

74,283 

Held-to-maturity, at amortized cost (fair value of $2,655 in 2015 and $2,638 in 2014)

 

2,370 

 

 

2,371 

Restricted, at cost

 

3,948 

 

 

4,228 

Loans, net of allowance for losses of $7,874 in 2015 and 2014

 

479,141 

 

 

473,789 

Other real estate owned (OREO)

 

1,243 

 

 

1,810 

Premises and equipment, net

 

11,547 

 

 

11,461 

Accrued interest receivable

 

1,773 

 

 

1,736 

Bank owned life insurance

 

9,978 

 

 

9,900 

Deferred tax asset

 

3,780 

 

 

4,115 

Other assets

 

2,087 

 

 

1,752 

Total assets

$

603,099 

 

$

598,538 

LIABILITIES

 

 

 

 

 

Deposits

 

 

 

 

 

Noninterest-bearing

$

81,070 

 

$

70,770 

Interest-bearing

 

414,910 

 

 

408,737 

Total deposits

 

495,980 

 

 

479,507 

Securities sold under repurchase agreements

 

763 

 

 

1,761 

Federal funds purchased

 

 -

 

 

6,318 

Subordinated debt and trust preferred

 

11,535 

 

 

11,559 

Federal Home Loan Bank advances

 

40,000 

 

 

45,000 

Accrued expenses and other liabilities

 

3,614 

 

 

4,741 

Total liabilities

 

551,892 

 

 

548,886 

STOCKHOLDERS' EQUITY

 

 

 

 

 

Preferred stock (Note 10)

 

 -

 

 

 -

Common stock (Note 11)

 

129 

 

 

128 

Additional paid-in capital

 

48,653 

 

 

48,569 

Retained earnings

 

2,084 

 

 

1,020 

Accumulated other comprehensive income (loss), net of tax

 

341 

 

 

(65)

Total stockholders' equity

 

51,207 

 

 

49,652 

Total liabilities and stockholders' equity

$

603,099 

 

$

598,538 

 

 

See notes to consolidated financial statements.

3

 


 

First Capital Bancorp, Inc. and Subsidiary

Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

2015

 

2014

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

(Dollars in thousands,

 

 

except per share data)

Interest and dividend income

 

 

 

 

 

 

Loans

 

$

5,900 

 

$

5,436 

Investments:

 

 

 

 

 

 

Taxable interest income

 

 

301 

 

 

387 

Tax exempt interest income

 

 

28 

 

 

43 

Dividends

 

 

47 

 

 

48 

Interest bearing deposits

 

 

14 

 

 

Total interest income

 

 

6,290 

 

 

5,920 

Interest expense

 

 

 

 

 

 

Deposits

 

 

964 

 

 

1,082 

FHLB advances

 

 

134 

 

 

91 

Subordinated debt and other borrowings

 

 

112 

 

 

120 

Total interest expense

 

 

1,210 

 

 

1,293 

Net interest income

 

 

5,080 

 

 

4,627 

Recovery of provision for loan losses

 

 

(145)

 

 

(292)

Net interest income after

 

 

 

 

 

 

recovery of provision for loan losses

 

 

5,225 

 

 

4,919 

Noninterest income

 

 

 

 

 

 

Fees on deposits

 

 

77 

 

 

80 

Gain on sale of securities

 

 

70 

 

 

96 

Gain on sale of loans

 

 

 -

 

 

55 

Other

 

 

285 

 

 

235 

Total noninterest income

 

 

432 

 

 

466 

Noninterest expenses

 

 

 

 

 

 

Salaries and employee benefits

 

 

2,199 

 

 

2,334 

Occupancy expense

 

 

216 

 

 

204 

Data processing

 

 

263 

 

 

236 

Professional services

 

 

154 

 

 

117 

Advertising and marketing

 

 

100 

 

 

128 

FDIC assessment

 

 

93 

 

 

90 

Virginia franchise tax

 

 

132 

 

 

126 

Loss (gain) on sale and write down of OREO, net

 

 

145 

 

 

(24)

Depreciation

 

 

191 

 

 

137 

Other operating expenses

 

 

598 

 

 

618 

Total noninterest expense

 

 

4,091 

 

 

3,966 

Net income before income taxes

 

 

1,566 

 

 

1,419 

Income tax expense

 

 

502 

 

 

442 

Net income

 

 

1,064 

 

 

977 

Effective dividend on preferred stock

 

 

 -

 

 

24 

Net income available to common stockholders

 

$

1,064 

 

$

953 

Basic net income per common share (Note 3)

 

$

0.08 

 

$

0.08 

Diluted net income per common share (Note 3)

 

$

0.07 

 

$

0.06 

See notes to consolidated financial statements

4

 


 

First Capital Bancorp, Inc. and Subsidiary

Consolidated Statements of Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2015

 

2014

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

(Dollars in thousands)

 

 

 

Net income

 

$

1,064 

 

$

977 

Other comprehensive income:

 

 

 

 

 

 

Investment securities:

 

 

 

 

 

 

Unrealized gains on investment securities

 

 

 

 

 

 

available for sale

 

 

663 

 

 

632 

Tax effect

 

 

(211)

 

 

(215)

Reclassification of gains recognized in net income

 

 

(70)

 

 

(96)

Tax effect

 

 

24 

 

 

33 

Total other comprehensive income

 

 

406 

 

 

354 

Comprehensive income

 

$

1,470 

 

$

1,331 

 

See notes to consolidated financial statements

5

 


 

First Capital Bancorp, Inc. and Subsidiary

Consolidated Statements of Stockholders’ Equity

Three Months Ended March 31, 2015 and 2014

(Unaudited)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retained

 

 

Discount 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Earnings

 

 

on

 

 

Other

 

 

 

 

 

Preferred

 

 

Common

 

 

Paid-in

 

 

(Accumulated

 

 

Preferred

 

 

Comprehensive

 

 

 

 

 

Stock

 

 

Stock

 

 

Capital

 

 

Deficit)

 

 

Stock

 

 

Income (Loss)

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances December 31, 2013

$

22 

 

$

50,208 

 

$

4,448 

 

$

(4,590)

 

$

(16)

 

$

(390)

 

$

49,682 

Net income

 

 -

 

 

 -

 

 

 -

 

 

977 

 

 

 -

 

 

 -

 

 

977 

Other comprehensive income

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

354 

 

 

354 

Preferred stock dividend

 

 -

 

 

 -

 

 

 -

 

 

(8)

 

 

 -

 

 

 -

 

 

(8)

Accretion of discount on

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   preferred stock

 

 -

 

 

 -

 

 

 -

 

 

(16)

 

 

16 

 

 

 -

 

 

 -

Stock based compensation

 

 -

 

 

 -

 

 

84 

 

 

 -

 

 

 -

 

 

 -

 

 

84 

Redemption of preferred stock

 

(22)

 

 

 -

 

 

(4,260)

 

 

(1,249)

 

 

 -

 

 

 -

 

 

(5,531)

Exercise of warrants issued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in connection with

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

rights offering

 

 -

 

 

545 

 

 

(272)

 

 

 -

 

 

 -

 

 

 -

 

 

273 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances March 31, 2014

$

 -

 

$

50,753 

 

$

 -

 

$

(4,886)

 

$

 -

 

$

(36)

 

$

45,831 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances December 31, 2014

$

 -

 

$

128 

 

$

48,569 

 

$

1,020 

 

$

 -

 

$

(65)

 

$

49,652 

Net income

 

 -

 

 

 -

 

 

 -

 

 

1,064 

 

 

 -

 

 

 -

 

 

1,064 

Other comprehensive income

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

406 

 

 

406 

Stock based compensation

 

 -

 

 

 -

 

 

85 

 

 

 -

 

 

 -

 

 

 -

 

 

85 

Issuance of 94,000 shares of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

restricted common stock

 

 -

 

 

 

 

(1)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Balances March 31, 2015

$

 -

 

$

129 

 

$

48,653 

 

$

2,084 

 

$

 -

 

$

341 

 

$

51,207 

 

See notes to consolidated financial statements

6

 


 

First Capital Bancorp, Inc. and Subsidiary

Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2015 and 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

(Unaudited)

 

(Dollars in thousands)

Cash flows from operating activities

 

 

Net income

$

1,064 

 

$

977 

Adjustments to reconcile net income to net cash

 

 

 

 

 

provided by operating activities:

 

 

 

 

 

Recovery of provision for loan losses

 

(145)

 

 

(292)

Depreciation of premises and equipment

 

191 

 

 

137 

Net amortization of bond premiums/discounts

 

179 

 

 

139 

Stock based compensation expense

 

85 

 

 

84 

Deferred income tax expense

 

148 

 

 

442 

Gain on sale of securities

 

(70)

 

 

(96)

Gain on loans sold

 

 -

 

 

(55)

Loss (gain) on sale and write down of OREO, net

 

145 

 

 

(24)

Increase in cash surrender value of bank owned life insurance

 

(78)

 

 

(81)

Proceeds from sale of loans held for sale

 

 -

 

 

7,167 

Origination of loans held for sale

 

 -

 

 

(6,120)

(Increase) decrease in other assets

 

(335)

 

 

163 

Increase in accrued interest receivable

 

(37)

 

 

(38)

Decrease in accrued expenses and other liabilities

 

(1,127)

 

 

(1,159)

Net cash provided by operating activities

 

20 

 

 

1,244 

Cash flows from investing activities

 

 

 

 

 

Proceeds from paydowns of securities available-for-sale

 

3,036 

 

 

2,267 

Purchase of securities available-for-sale

 

 -

 

 

(6,195)

Proceeds from sale of securities available-for-sale

 

6,440 

 

 

10,137 

Proceeds from sale of OREO

 

422 

 

 

233 

Improvements in OREO

 

 -

 

 

(29)

Proceeds from sale of equipment

 

39 

 

 

 -

Purchase of Federal Home Loan Bank (FHLB) Stock, net

 

280 

 

 

(291)

Purchase of Federal Reserve Stock

 

 -

 

 

(116)

Purchases of premises and equipment

 

(316)

 

 

(41)

Net increase in loans

 

(5,207)

 

 

(13,561)

Net cash provided by (used in) investing activities

 

4,694 

 

 

(7,596)

Cash flows from financing activities

 

 

 

 

 

Net increase in deposits

 

16,473 

 

 

4,522 

FHLB advances

 

12,000 

 

 

10,000 

FHLB advance repayments

 

(17,000)

 

 

 -

Federal funds purchased, net

 

(6,318)

 

 

 -

Dividends on preferred stock

 

 -

 

 

(8)

Cash paid for redemption of common stock warrants and preferred stock, net of expenses

 

 -

 

 

(5,531)

Proceeds from issuance of subordinated debt, net of payments

 

(24)

 

 

6,476 

Warrants exercised in connection with the rights offering

 

 -

 

 

273 

Net (decrease) increase in repurchase agreements

 

(998)

 

 

393 

Net cash provided by financing activities

 

4,133 

 

 

16,125 

Net increase in cash and cash equivalents

 

8,847 

 

 

9,773 

Cash and cash equivalents, beginning of period

 

11,093 

 

 

14,187 

Cash and cash equivalents, end of period

$

19,940 

 

$

23,960 

 

 

7

 


 

First Capital Bancorp, Inc. and Subsidiary

Consolidated Statements of Cash Flows

For the Three Months March 31, 2015 and 2014

(Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

 

 

 

 

 

 

(Unaudited)

 

(Dollars in thousands)

Supplemental disclosure of cash flow information

 

 

Interest paid during the period

$

1,204 

 

$

1,294 

Taxes paid during the period

$

100 

 

$

 -

Supplemental schedule of noncash investing and financing activities

 

 

 

 

 

Company financed sales of OREO

$

 -

 

$

32 

 

 

See notes to consolidated financial statements

 

 

8

 


 

First Capital Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

March 31, 2015

Note 1 – Basis of Presentation

First Capital Bancorp, Inc. (the Company) is the holding company of and successor to First Capital Bank (the Bank).  In 2006, the Company acquired all of the outstanding stock of the Bank in a statutory share exchange transaction pursuant to an Agreement and Plan of Reorganization dated September 5, 2006, between the Company and the Bank (the Agreement).  Under the terms of the Agreement, the shares of the Bank’s common stock were exchanged for shares of the Company’s common stock on a one-for-one basis.  As a result, the Bank became a wholly owned subsidiary of the Company, the Company became the holding company of the Bank and the stockholders of the Bank became stockholders of the Company. 

The Company conducts all of its business activities through the branch offices of its wholly owned subsidiary bank, First Capital Bank.  First Capital Bank created RE1, LLC, and RE2, LLC, wholly owned Virginia limited liability companies for the sole purpose of taking title to property acquired in lieu of foreclosure.  RE1, LLC, and RE2, LLC have been consolidated with First Capital Bank.  The Company exists primarily for the purpose of holding the stock of its subsidiary, the Bank, and such other subsidiaries that it may acquire or establish.

The Company has one other wholly owned subsidiary, FCRV Statutory Trust 1 (the Trust), a Delaware Business Trust that was formed in connection with the issuance of trust preferred debt in 2006.  Pursuant to current accounting standards, the Company does not consolidate the Trust.

The consolidated financial statements include the accounts of First Capital Bancorp, Inc. and its wholly owned subsidiary, First Capital Bank.  All material intercompany balances and transactions have been eliminated.

In management’s opinion the accompanying unaudited consolidated financial statements, reflect all adjustments, consisting solely of normal recurring accruals, necessary for a fair presentation of the financial information as of March 31, 2015, and December 31, 2014, and for the three months ended March 31, 2015 and 2014, in conformity with accounting principles generally accepted in the United States of America (GAAP).  Results for the three-month period ended March 31, 2015, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2015.  

The organization and business of the Company, accounting policies followed, and other related information are contained in the notes to the consolidated financial statements of the Company as of and for the year ended December 31, 2014, filed as part of the Company’s annual report on Form 10-K.  These interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements.

Certain reclassifications have been made to amounts presented in the Consolidated Statements of Financial Condition as of December 31, 2014 to conform to the current period presentation.

 

Note 2 – Use of Estimates

To prepare financial statements in conformity with GAAP management makes estimates and assumptions based on available information.  These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual results may be different.  In particular, the allowance for loan losses, valuation of other real estate owned, income taxes, and fair values of financial instruments are subject to change.

9

 


 

First Capital Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

March 31, 2015

 

 

Note 3 – Earnings per common share

Basic earnings per share (EPS) excludes potential dilution and is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period.  Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock that have a dilutive impact on shares outstanding were exercised or converted into common stock, or resulted in the issuance of common stock that then shared in the earnings of the Company.  

The basic and diluted EPS calculations are as follows:

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

(in thousands,

 

 

 

except per share amounts)

 

 

2015

 

2014

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

1,064 

 

$

953 

Weighted average number of shares outstanding

 

 

12,650 

 

 

12,423 

Net income per common share - basic

 

$

0.08 

 

$

0.08 

 

 

 

 

 

 

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

12,650 

 

 

12,423 

Effect of stock options, warrants and restricted stock

 

 

2,125 

 

 

2,457 

Diluted average common shares outstanding

 

 

14,775 

 

 

14,880 

Net income per common share - diluted

 

$

0.07 

 

$

0.06 

 

 

 

 

 

 

 

 

The Company has excluded options convertible into 30 thousand shares of common stock for the three months ended March 31, 2015, from the calculation of diluted earnings per share because they were anti-dilutive.

The Company excluded options convertible into 33 thousand shares of common stock for the three months ended March 31, 2014, from the calculation of diluted earnings per share because they were anti-dilutive. 

 

 

10

 


 

First Capital Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

March 31, 2015

Note 4 – Stock-Based Compensation

 

Accounting standards require the Company to measure compensation cost for the type of stock-based awards the Company issues at fair value on the date of grant and recognize compensation expense in the consolidated statements of operations over the service period that the awards are expected to vest.

Stock-based compensation expense during the three months ended March 31, 2015 and 2014, was $85 thousand and $84 thousand, respectively.   Stock-based compensation is included in salaries and employee benefits in the accompanying consolidated statements of operations.

 

 

Note 5 – Investment Securities

The amortized costs, gross unrealized gains, gross unrealized losses, and fair values for securities are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2015

 

Amortized

 

Gross Unrealized

 

Fair

 

Costs

 

Gains

 

Losses

 

Values

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

$

25,770 

 

$

263 

 

$

26 

 

$

26,007 

Corporate bonds

 

3,502 

 

 

 

 

21 

 

 

3,487 

Collateralized mortgage obligation (CMO) securities

 

16,878 

 

 

236 

 

 

16 

 

 

17,098 

State and political subdivisions - taxable

 

14,979 

 

 

148 

 

 

96 

 

 

15,031 

SBA pools

 

3,659 

 

 

18 

 

 

 

 

3,669 

 

$

64,788 

 

$

671 

 

$

167 

 

$

65,292 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

Amortized

 

Gross Unrealized

 

Fair

 

Costs

 

Gains

 

Losses

 

Values

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

$

29,447 

 

$

190 

 

$

73 

 

$

29,564 

Corporate bonds

 

3,502 

 

 

 

 

12 

 

 

3,498 

Collateralized mortgage obligation (CMO) securities

 

19,686 

 

 

196 

 

 

91 

 

 

19,791 

State and political subdivisions - taxable

 

18,046 

 

 

37 

 

 

329 

 

 

17,754 

SBA pools

 

3,690 

 

 

 

 

17 

 

 

3,676 

 

$

74,371 

 

$

434 

 

$

522 

 

$

74,283 

 

 

 

 

 

 

 

 

11

 


 

First Capital Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2015

 

Amortized

 

Gross Unrealized

 

Fair

 

Costs

 

Gains

 

Losses

 

Values

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity

 

(Dollars in thousands)

Tax-exempt municipal bonds

$

2,370 

 

$

285 

 

$

 -

 

$

2,655 

 

$

2,370 

 

$

285 

 

$

 -

 

$

2,655 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

Amortized

 

Gross Unrealized

 

Fair

 

Costs

 

Gains

 

Losses

 

Values

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity

 

(Dollars in thousands)

Tax-exempt municipal bonds

$

2,371 

 

$

267 

 

$

 -

 

$

2,638 

 

$

2,371 

 

$

267 

 

$

 -

 

$

2,638 

 

The following table summarizes securities with unrealized losses at March 31, 2015, and December 31, 2014, aggregated by major security type and length of time in a continuous unrealized loss position. The unrealized losses are largely due to changes in interest rates and other market conditions.  At March 31, 2015,  18 out of 101 securities the Company held had fair values less than amortized cost, primarily in municipal securities.  At December 31, 2014,  55 out of 111 securities the Company held had fair values less than amortized cost, primarily in municipal and mortgage-backed securities.  All unrealized losses are considered by management to be temporary given investment security credit ratings, the intent and ability to retain these securities for a period of time sufficient to recover all unrealized losses, and because it is unlikely that the Company will be required to sell the impaired securities before their anticipated recovery.  As such, management’s assessment of other than temporary impairment (OTTI) for the quarter ended March 31, 2015, resulted in no recognition of an impairment loss.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2015

 

Less than 12 Months

 

12 Months or More

 

Total

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

Value

 

Losses

 

Value

 

Losses

 

Value

 

Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

$

2,618 

 

$

14 

 

$

752 

 

$

12 

 

$

3,370 

 

$

26 

Corporate bonds

 

500 

 

 

 

 

1,981 

 

 

19 

 

 

2,481 

 

 

21 

CMO securities

 

 -

 

 

 -

 

 

3,401 

 

 

16 

 

 

3,401 

 

 

16 

State and political subdivisions-taxable

 

273 

 

 

 

 

4,456 

 

 

92 

 

 

4,729 

 

 

96 

SBA Pools

 

2,664 

 

 

 

 

 -

 

 

 -

 

 

2,664 

 

 

  All securities

$

6,055 

 

$

28 

 

$

10,590 

 

$

139 

 

$

16,645 

 

$

167 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

 


 

First Capital Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

March 31, 2015

 

December 31, 2014

 

Less than 12 Months