First Capital Bancorp, Inc. reported its second quarter earnings for the period ending June 30, 2009. The bank reported a net loss of $731,000, or $0.29 per diluted share, compared to net income of $0.13 per share in the same quarter in 2008.
John Presley, the CEO of First Capital Bancorp, Inc. said, “While we are encouraged by positive trends in net interest income, decreased funding cost and reductions in nonperforming assets and delinquencies, we continue to be cautious in our view of the economy and the effects on the portfolio.”
The bank said that the loss relative to the profitable quarter achieved in 2008 was due to costs related to its merger with Eastern Virginia Bankshares, Inc., higher Federal Deposit Insurance Corporation (FDIC) insurance assessments, higher loan loss provisions and legal fees.
There were some encouraging signs regarding the credit cycle for First Capital Bancorp, Inc. as nonperforming assets fell from the previous quarters total of $8.2 million to $6.0 million. This was 1.2% of total assets, down from 1.7% in the previous quarter.
First Capital Bancorp, Inc. is a commercial bank headquartered in Virginia. The bank has eight branches located throughout the state, with total assets of $492 million. The bank is in the process of obtaining regulatory approvals for its merger with Eastern Virginia Bankshares, Inc. The combined institution will have assets of $1.2 billion and 32 branch offices in Virginia.