GLEN ALLEN, Va., July 22 /PRNewswire-FirstCall/ -- First Capital Bancorp, Inc. (the 'Company') (Nasdaq: FCVA), the bank holding company for First Capital Bank, announced today a 6.7% increase in earnings for the three months ended June 30, 2008 to $386 thousand or $0.13 per diluted share, compared to $362 thousand or $0.18 per diluted share for the same period in 2007. Earnings for the first six months of 2008 increased 12.5% to $801 thousand or $0.27 per diluted share, compared to earnings of $712 thousand or $0.37 per diluted share for the same period in 2007. The decrease in diluted earnings per share was the result of the issuance of 1,020,000 shares of common stock as the result of a stock offering in 2007.

Total assets at June 30, 2008 were $396.5 million, up $44.6 million, or 12.7%, from total assets at December 31, 2007 and up $109.5 million, or 38.1%, from the same period in 2007. Total loans increased $107.0 million to $335.5 million, up 46.8% from the same period in 2007. Deposits increased $69.2 million to $288.2 million, up 31.6% from the same period in 2007. Federal Home Loan Bank advances increased $25.0 million to $50.0 million, up 100.0% from the same period in 2007. The Company's capital position remains strong as Stockholders Equity increased $4.0 million, up 12.7% from June 30, 2007 as earnings over the last twelve months totaled $1.8 million and the Company exercised an over-allotment in July 2007, increasing net worth by $2.1 million. At June 30, 2008, the Company exceeded all regulatory capital requirements.

Net interest income increased 29.4% to $5.5 million from $4.3 million for the six months ended June 30, 2007. This increase in net interest income is attributable to the 46.8% growth of the loan portfolio from $228.6 million at June 30, 2007 to $335.5 million at June 30, 2008, offset by the effects of drastic reductions in the prime lending rate. The Federal Reserve Bank dropped the federal funds target rate and the associated prime rate of interest 300 basis points late in 2007 and the first quarter of 2008. An additional 25 basis point drop occurred in the second quarter of 2008 resulting in a decrease of 325 basis points for the last twelve months. At June 30, 2008, approximately 39.5% of the Bank's loan portfolio is tied to this key rate. Although the vast majority of our time deposits are set to reprice in the next six months and will continue to lower funding costs, this rapid reduction in rates put pressure on our net interest margin during the first and second quarter. The net interest margin for the second quarter of 2008 was 2.96%, a decline from 3.36% in the second quarter of 2007.