First Capital Bancorp, Inc. announced today, earnings for the quarter ended March 31, 2009 totaled $102 thousand or $.03 per share compared to $415 thousand or $.14 per diluted share for the same period in 2008.

Nonperforming assets totaled $8.2 million at March 31, 2009, consisted of nonaccrual loans of $3.9 million and other real estate owned of $4.3 million, represented 1.7% of assets as of March 31, 2009, up from 1.5% of assets as of December 31, 2008. It should be noted that subsequent to the end of the quarter, nonperforming assets were reduced by $2.6 million to $5.6 million or 32.0% without any additional loss to the Company. There were no loans 90 days past due and still accruing at March 31, 2009. Nonperforming assets totaled $59 thousand at March 31, 2008.

Loans charged-off totaled $198 thousand during the first quarter of 2009 as compared to no charge-offs in the quarter ended March 31, 2008. The allowance for loan losses stood at 1.34% as of March 31, 2009 compared to .89% at March 31, 2008 reflecting the continued deterioration of the economy in the fourth quarter of 2008 and the first quarter of 2009. The provision for loans losses was $215 thousand in the first quarter of 2009. 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.

Net interest margin deteriorated to 2.38% for the quarter ended March 31, 2009 down from 2.60% for the fourth quarter of 2008 and 3.16% from the first quarter of 2008 primarily due to the following factors:

   --  Increase in nonaccrual loans during the quarter resulting in reversal       of interest income.    --  Rapid reduction of interest rates in the past year as assets repriced       more quickly than liabilities.     --  Excess liquidity averaging $17.7 million for the quarter resulting       from deposit growth outpacing loan growth during the quarter.  This       cost the Company approximately $96 thousand in net income during the       quarter.   

Net interest income is down 9.4%, or $263 thousand compared to the first quarter of 2008. Interest income declined $149 thousand, or 2.5%, with a $59 thousand decline in loan interest income, and a $90 thousand decline in investment and federal funds sold income. Interest expense increased $114 thousand as deposit increases more than offset rate decreases. The average rate on interest bearing deposits decreased from 4.33% for the first quarter of 2008 to 3.55% for the quarter ended March 31, 2009. The year over year decline in net interest income, reflects the rapidly declining rate environment of 2008.