GLEN ALLEN, Va., Nov. 3 /PRNewswire-FirstCall/ -- First Capital Bancorp, Inc. (the 'Company') (Nasdaq: FCVA), the bank holding company for First Capital Bank (the 'Bank'), today reported third quarter and nine month earnings.

Nationwide, concerns over asset quality, precipitated by issues related to declining real estate activity and general economic conditions, continued to increase in the banking industry during the third quarter. The impact of these concerns is reflected in the economic markets in which the Company operates, principally through slowing real estate activity. Residential acquisition and development lending and builder/construction lending have been significantly scaled back as housing activity across our markets has declined. Management will continue to monitor delinquencies, risk rating changes, charge-offs, market trends and other indicators of risk in the Company's portfolio, particularly those tied to residential real estate, and adjust the allowance for loan losses accordingly.

First Capital Bancorp, Inc. announced today, due primarily to a significant increase in the allowance for loan losses, a net loss of $463 thousand or $.16 per diluted share for the three months ending September 30, 2008, compared to net income of $501 thousand for the same period in 2007. Earnings for the first nine months of 2008 totaled $338 thousand or $.11 per share which is a 72% decrease from $1.2 million or $.53 per diluted share for the same period in 2007.

First Capital Bank President and CEO Bob Watts noted, 'While these are clearly some of the most challenging times our industry has dealt with in decades, we're well capitalized and to date have experienced uniquely strong asset quality and operate in a market with a proven history of stability. At quarter end, the non-performing assets of the Bank are represented by two 30-day past due loans totaling $112 thousand and $2.1 million in nonaccrual loans which are predominantly secured by residential real estate. However, the current economy has put stress on the banking industry and we feel we have to react with caution and will continue to be cautious until the economy strengthens and increase our reserve levels in light of the uncertainty in the market.'

As a result, the Company significantly increased its provision for loan losses by $1.4 million for the three months ended September 30, 2008 compared to $186 thousand for the same period in 2007. The provision for loan losses totals $2.0 million for the first nine months of 2008 compared to $438 thousand for the same period last year. The allowance for loan losses increased to 1.25 % of total loans as of September 30, 2008 as compared to .93% at the end of June, 2008 and .88% at the end of the same period last year.

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