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EX-32 - EX-32 - FIRST CAPITAL BANCORP, INC.fcva-20150630xex32.htm
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EX-31.3 - EX-31.3 - FIRST CAPITAL BANCORP, INC.fcva-20150630ex313c59152.htm

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 June 30, 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:

12,918,892 shares of Common Stock, par value $.01 per share, were outstanding at August 11, 2015.


 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

Page

PART I – FINANCIAL INFORMATION 

 

 

 

 

Item 1 – Financial Statements

 

 

 

Consolidated Statements of Financial Condition

 

 

 

 

June 30, 2015 (unaudited) and December 31, 2014

3

 

 

Consolidated Statements of Operations

 

 

 

 

Three and Six Months Ended June 30, 2015 and 2014 (unaudited)

4

 

 

Consolidated Statements of Comprehensive Income  

 

 

 

 

Three and Six Months Ended June 30, 2015 and 2014 (unaudited)

5

 

 

Consolidated Statements of Stockholders’ Equity

 

 

 

 

Six Months Ended June  30, 2015 and 2014 (unaudited)

6

 

 

Consolidated Statements of Cash Flows

 

 

 

 

For the Six Months Ended June 30, 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

38

 

Item 4 – Controls and Procedures

38

 

 

PART II – OTHER INFORMATION 

 

 

 

 

Item 1 – Legal Proceedings – None to Report

39

 

Item 1A – Risk Factors

39

 

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

39

 

Item 3 – Defaults Upon Senior Securities – None to Report

39

 

Item 4 – Mine Safety Disclosures – None to Report

39

 

Item 5 – Other Information – None to Report

39

 

Item 6 – Exhibits

39

 

 

SIGNATURES 

41

 

 

 

 

 

 

 

 


 

PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements

 

First Capital Bancorp, Inc. and Subsidiary

Consolidated Statements of Financial Condition

June 30, 2015 (Unaudited) and December 31, 2014

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

ASSETS

 

 

 

 

 

Cash and due from banks

$

12,134 

 

$

11,093 

Federal funds sold

 

2,040 

 

 

 -

Total cash and cash equivalents

 

14,174 

 

 

11,093 

Time deposits in other banks

 

2,000 

 

 

2,000 

Investment securities:

 

 

 

 

 

Available-for-sale, at fair value

 

70,970 

 

 

74,283 

Held-to-maturity, at amortized cost (fair value of $2,601 in 2015 and $2,638 in 2014)

 

2,369 

 

 

2,371 

Restricted, at cost

 

4,161 

 

 

4,228 

Loans, net of allowance for losses of $7,865 in 2015 and $7,874 in 2014

 

492,808 

 

 

473,789 

Other real estate owned (OREO)

 

936 

 

 

1,810 

Premises and equipment, net

 

11,860 

 

 

11,461 

Accrued interest receivable

 

1,773 

 

 

1,736 

Bank owned life insurance

 

10,059 

 

 

9,900 

Deferred tax asset

 

3,992 

 

 

4,115 

Other assets

 

1,750 

 

 

1,752 

Total assets

$

616,852 

 

$

598,538 

LIABILITIES

 

 

 

 

 

Deposits

 

 

 

 

 

Noninterest-bearing

$

90,447 

 

$

70,770 

Interest-bearing

 

414,974 

 

 

408,737 

Total deposits

 

505,421 

 

 

479,507 

Securities sold under repurchase agreements

 

1,602 

 

 

1,761 

Federal funds purchased

 

 -

 

 

6,318 

Subordinated debt and trust preferred

 

10,011 

 

 

11,559 

Federal Home Loan Bank advances

 

45,000 

 

 

45,000 

Accrued expenses and other liabilities

 

2,974 

 

 

4,741 

Total liabilities

 

565,008 

 

 

548,886 

STOCKHOLDERS' EQUITY

 

 

 

 

 

Preferred stock (Note 10)

 

 -

 

 

 -

Common stock (Note 11)

 

129 

 

 

128 

Additional paid-in capital

 

48,591 

 

 

48,569 

Retained earnings

 

3,122 

 

 

1,020 

Accumulated other comprehensive income (loss), net of tax

 

 

 

(65)

Total stockholders' equity

 

51,844 

 

 

49,652 

Total liabilities and stockholders' equity

$

616,852 

 

$

598,538 

 

 

See notes to consolidated financial statements.

3

 


 

First Capital Bancorp, Inc. and Subsidiary

Consolidated Statements of Operations

(Unaudited)

(Dollars in Thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

Loans

$

6,017 

 

$

5,661 

 

$

11,917 

 

$

11,096 

Investments:

 

 

 

 

 

 

 

 

 

 

 

Taxable interest income

 

286 

 

 

336 

 

 

587 

 

 

723 

Tax exempt interest income

 

30 

 

 

32 

 

 

58 

 

 

75 

Dividends

 

52 

 

 

46 

 

 

98 

 

 

94 

Interest bearing deposits

 

20 

 

 

 

 

35 

 

 

11 

Total interest and dividend income

 

6,405 

 

 

6,080 

 

 

12,695 

 

 

11,999 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

982 

 

 

1,080 

 

 

1,947 

 

 

2,162 

FHLB advances

 

183 

 

 

111 

 

 

317 

 

 

202 

Subordinated debt and other borrowings

 

86 

 

 

125 

 

 

198 

 

 

245 

Total interest expense

 

1,251 

 

 

1,316 

 

 

2,462 

 

 

2,609 

Net interest income

 

5,154 

 

 

4,764 

 

 

10,233 

 

 

9,390 

Recovery of provision for loan losses

 

 -

 

 

 -

 

 

(145)

 

 

(292)

Net interest income after

 

 

 

 

 

 

 

 

 

 

 

recovery of provision for loan losses

 

5,154 

 

 

4,764 

 

 

10,378 

 

 

9,682 

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

Fees on deposits

 

72 

 

 

87 

 

 

148 

 

 

167 

Gain on sale of securities

 

 

 

175 

 

 

71 

 

 

271 

Gain on sale of loans

 

 -

 

 

 -

 

 

 -

 

 

55 

Other

 

299 

 

 

221 

 

 

583 

 

 

456 

Total noninterest income

 

373 

 

 

483 

 

 

802 

 

 

949 

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

1,987 

 

 

2,079 

 

 

4,186 

 

 

4,413 

Occupancy expense

 

204 

 

 

214 

 

 

420 

 

 

418 

Data processing

 

269 

 

 

237 

 

 

532 

 

 

472 

Professional services

 

144 

 

 

142 

 

 

298 

 

 

259 

Advertising and marketing

 

130 

 

 

127 

 

 

230 

 

 

255 

FDIC assessment

 

89 

 

 

90 

 

 

182 

 

 

180 

Virginia franchise tax

 

122 

 

 

128 

 

 

254 

 

 

254 

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

 

(5)

 

 

(54)

 

 

140 

 

 

(78)

Depreciation

 

200 

 

 

147 

 

 

391 

 

 

283 

Other operating expenses

 

666 

 

 

648 

 

 

1,260 

 

 

1,267 

Total noninterest expense

 

3,806 

 

 

3,758 

 

 

7,893 

 

 

7,723 

Net income before income taxes

 

1,721 

 

 

1,489 

 

 

3,287 

 

 

2,908 

Income tax expense

 

554 

 

 

480 

 

 

1,056 

 

 

922 

Net income

 

1,167 

 

 

1,009 

 

 

2,231 

 

 

1,986 

Effective dividend on preferred stock

 

 -

 

 

 -

 

 

 -

 

 

24 

Net income available to common stockholders

$

1,167 

 

$

1,009 

 

$

2,231 

 

$

1,962 

Basic net income per common share (Note 3)

$

0.09 

 

$

0.08 

 

$

0.18 

 

$

0.16 

Diluted net income per common share (Note 3)

$

0.08 

 

$

0.07 

 

$

0.15 

 

$

0.13 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to consolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

4

 


 

First Capital Bancorp, Inc. and Subsidiary

Consolidated Statements of Comprehensive Income

(Unaudited)

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

1,167 

 

$

1,009 

 

$

2,231 

 

$

1,986 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

Unrealized (losses) gains on investment securities

 

 

 

 

 

 

 

 

 

 

 

available for sale

 

(512)

 

 

377 

 

 

150 

 

 

1,009 

Tax effect

 

174 

 

 

(128)

 

 

(36)

 

 

(343)

Reclassification of gains recognized in net income

 

(2)

 

 

(175)

 

 

(71)

 

 

(271)

Tax effect

 

 

 

59 

 

 

24 

 

 

92 

Total other comprehensive income

 

(339)

 

 

133 

 

 

67 

 

 

487 

Comprehensive income

$

828 

 

$

1,142 

 

$

2,298 

 

$

2,473 

 

 

See notes to consolidated financial statements

5

 


 

First Capital Bancorp, Inc. and Subsidiary

Consolidated Statements of Stockholders’ Equity

Six Months Ended June 30, 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

 

 -

 

 

 -

 

 

 -

 

 

1,986 

 

 

 -

 

 

 -

 

 

1,986 

Other comprehensive income

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

487 

 

 

487 

Preferred stock dividend

 

 -

 

 

 -

 

 

 -

 

 

(8)

 

 

 -

 

 

 -

 

 

(8)

Accretion of discount on

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   preferred stock

 

 -

 

 

 -

 

 

 -

 

 

(16)

 

 

16 

 

 

 -

 

 

 -

Stock based compensation

 

 -

 

 

 -

 

 

159 

 

 

 -

 

 

 -

 

 

 -

 

 

159 

Redemption of preferred stock

 

(22)

 

 

 -

 

 

(5,509)

 

 

 -

 

 

 -

 

 

 -

 

 

(5,531)

Change in par value

 

 

 

 

(50,083)

 

 

48,837 

 

 

1,246 

 

 

 

 

 

 

 

 

 

Exercise of warrants issued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in connection with

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

rights offering

 

 -

 

 

 

 

394 

 

 

 -

 

 

 -

 

 

 -

 

 

396 

Balances June 30, 2014

$

 -

 

$

127 

 

$

48,329 

 

$

(1,382)

 

$

 -

 

$

97 

 

$

47,171 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances December 31, 2014

$

 -

 

$

128 

 

$

48,569 

 

$

1,020 

 

$

 -

 

$

(65)

 

$

49,652 

Net income

 

 -

 

 

 -

 

 

 -

 

 

2,231 

 

 

 -

 

 

 -

 

 

2,231 

Other comprehensive income

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

67 

 

 

67 

Stock based compensation

 

 -

 

 

 -

 

 

194 

 

 

 -

 

 

 -

 

 

 -

 

 

194 

Repurchase of common stock

 

 -

 

 

 -

 

 

(182)

 

 

 -

 

 

 -

 

 

 -

 

 

(182)

Exercise of rights offering warrants

 

 -

 

 

 -

 

 

11 

 

 

 -

 

 

 -

 

 

 -

 

 

11 

Payment of dividend ($0.01/share)

 

 -

 

 

 -

 

 

 -

 

 

(129)

 

 

 -

 

 

 -

 

 

(129)

Issuance of 94 thousand shares of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

restricted common stock

 

 -

 

 

 

 

(1)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Balances June 30, 2015

$

 -

 

$

129 

 

$

48,591 

 

$

3,122 

 

$

 -

 

$

 

$

51,844 

 

 

See notes to consolidated financial statements

6

 


 

First Capital Bancorp, Inc. and Subsidiary

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2015 and 2014

(Unaudited)

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

Cash flows from operating activities

 

 

Net income

$

2,231 

 

$

1,986 

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

 

391 

 

 

283 

Net amortization of bond premiums/discounts

 

354 

 

 

293 

Stock based compensation expense

 

194 

 

 

159 

Deferred income tax expense

 

111 

 

 

512 

Gain on sale of securities

 

(71)

 

 

(271)

Gain on loans sold

 

 -

 

 

(55)

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

 

140 

 

 

(78)

Increase in cash surrender value of bank owned life insurance

 

(159)

 

 

(162)

Proceeds from sale of loans held for sale

 

 -

 

 

7,167 

Origination of loans held for sale

 

 -

 

 

(6,120)

Decrease (increase) in other assets

 

 

 

(68)

Increase in accrued interest receivable

 

(37)

 

 

(20)

Decrease in accrued expenses and other liabilities

 

(1,767)

 

 

(1,078)

Net cash provided by operating activities

 

1,244 

 

 

2,256 

Cash flows from investing activities

 

 

 

 

 

Proceeds from paydowns of securities available-for-sale

 

6,285 

 

 

5,312 

Purchase of securities available-for-sale

 

(10,618)

 

 

(18,253)

Proceeds from sale of securities available-for-sale

 

7,444 

 

 

15,165 

Proceeds from sale of OREO

 

831 

 

 

575 

Improvements in OREO

 

(97)

 

 

(118)

Proceeds from sale of equipment

 

64 

 

 

 -

Redemption (purchase) of Federal Home Loan Bank (FHLB) Stock, net

 

67 

 

 

(516)

Purchase of Federal Reserve Stock

 

 -

 

 

(116)

Payment of stock dividend

 

(129)

 

 

 -

Purchases of premises and equipment

 

(854)

 

 

(593)

Net increase in loans

 

(18,874)

 

 

(30,236)

Net cash used in investing activities

 

(15,881)

 

 

(28,780)

Cash flows from financing activities

 

 

 

 

 

Net increase in deposits

 

25,914 

 

 

11,821 

FHLB advances

 

27,000 

 

 

15,000 

FHLB advance repayments

 

(27,000)

 

 

 -

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

 

(48)

 

 

6,452 

Repurchase of common stock

 

(182)

 

 

 -

Retirement of subordinated debt

 

(1,500)

 

 

 -

Warrants exercised in connection with the rights offering

 

11 

 

 

396 

Net (decrease) increase in repurchase agreements

 

(159)

 

 

532 

Net cash provided by financing activities

 

17,718 

 

 

28,662 

Net increase in cash and cash equivalents

 

3,081 

 

 

2,138 

Cash and cash equivalents, beginning of period

 

11,093 

 

 

14,187 

Cash and cash equivalents, end of period

$

14,174 

 

$

16,325 

 

 

7

 


 

First Capital Bancorp, Inc. and Subsidiary

Consolidated Statements of Cash Flows

For the Six Months Ended June 30,  2015 and 2014

(Dollars in Thousands)

(Unaudited)

(Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

 

 

 

 

 

 

(Unaudited)

 

(Dollars in thousands)

Supplemental disclosure of cash flow information

 

 

Interest paid during the period

$

2,458 

 

$

2,609 

Taxes paid during the period

$

960 

 

$

410 

 

 

See notes to consolidated financial statements

 

 

8

 


 

First Capital Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

June 30, 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 the bank.  The 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 the 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 June 30, 2015, and December 31, 2014, and for the three and six months ended June 30, 2015 and 2014, in conformity with accounting principles generally accepted in the United States of America (GAAP).  Results for the three and six-month periods ended June 30, 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 Consolidated Financial Statements (Unaudited)

June 30, 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

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

(in thousands,

 

 

(in thousands,

 

 

except per share amounts)

 

 

except per share amounts)

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

$

1,167 

 

$

1,009 

 

$

2,231 

 

$

1,962 

Weighted average number of shares outstanding

 

12,636 

 

 

12,544 

 

 

12,643 

 

 

12,484 

Net income per common share - basic

$

0.09 

 

$

0.08 

 

$

0.18 

 

$

0.16 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

12,636 

 

 

12,544 

 

 

12,643 

 

 

12,484 

Effect of stock options, warrants and restricted stock

 

2,212 

 

 

2,397 

 

 

2,170 

 

 

2,410 

Diluted average common shares outstanding

 

14,848 

 

 

14,941 

 

 

14,813 

 

 

14,894 

Net income per common share - diluted

$

0.08 

 

$

0.07 

 

$

0.15 

 

$

0.13 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three and six months ended June 30, 2015,  The Company has excluded options convertible into 29 thousand shares of common stock from the calculation of diluted earnings per share because they were anti-dilutive.

For the three and six months ended June 30, 2014, the Company excluded options convertible into 31 thousand shares of common stock from the calculation of diluted earnings per share because they were anti-dilutive. 

 

 

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 and six months ended June 30, 2015 was $109  thousand and $194 thousand, respectively, and the amount expensed during the three and six months ended June 30, 2014, was $76 thousand and $159 thousand, respectively.   Stock-based compensation is included in salaries and employee benefits in the accompanying consolidated statements of operations.

10

 


 

First Capital Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

 

 

Note 5 – Investment Securities

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

 

Amortized

 

Gross Unrealized

 

Fair

 

Cost

 

Gains

 

Losses

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

$

27,617 

 

$

167 

 

$

128 

 

$

27,656 

Corporate bonds

 

3,502 

 

 

 

 

30 

 

 

3,476 

Collateralized mortgage obligation (CMO) securities

 

17,919 

 

 

192 

 

 

31 

 

 

18,080 

State and political subdivisions - taxable

 

16,076 

 

 

56 

 

 

219 

 

 

15,913 

State and political subdivisions - tax exempt

 

2,268 

 

 

 -

 

 

24 

 

 

2,244 

SBA pools

 

3,597 

 

 

 

 

 

 

3,601 

 

$

70,979 

 

$

425 

 

$

434 

 

$

70,970 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

Amortized

 

Gross Unrealized

 

Fair

 

Cost

 

Gains

 

Losses

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 

State and political subdivisions - tax exempt

 

 -

 

 

 -

 

 

 -

 

 

 -

SBA pools

 

3,690 

 

 

 

 

17 

 

 

3,676 

 

$

74,371 

 

$

434 

 

$

522 

 

$

74,283 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

 

Amortized

 

Gross Unrealized

 

Fair

 

Cost

 

Gains

 

Losses

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity

 

(Dollars in thousands)

Tax-exempt municipal bonds

$

2,369 

 

$

232 

 

$

 -