First Capital Bancorp (FCVA)

General

First Capital Bancorp, Inc. is a bank holding company that was incorporated under Virginia law in 2006. Pursuant to a statutory share exchange that was effective on September 8, 2006, we became a bank holding company. We conduct our primary operations through our wholly owned subsidiary, First Capital Bank, which is chartered under Virginia law. We have one other wholly owned subsidiary, FCRV Statutory Trust 1, which is a Delaware Business Trust that we formed in connection with the issuance of trust preferred debt in September, 2006.

Our principal executive offices are located at 4222 Cox Road, Suite 200, Glen Allen, Virginia 23060, and our telephone number is (804) 273-1160. We maintain a website at www.1capitalbank.com.

First Capital Bank, a Virginia banking corporation headquartered in Glen Allen, Virginia, was incorporated under the laws of the Commonwealth of Virginia as a state-chartered bank in 1997. The bank is a member of the Federal Reserve System and began banking operations in late 1998. The bank is a community oriented financial institution that offers a full range of banking and related financial services to small and medium-sized businesses, professionals and individuals located in its market area. This market area consists of the Richmond, Virginia metropolitan area, with a current emphasis on western Henrico County, Chesterfield County, the City of Richmond, the Town of Ashland, and the surrounding vicinity. The bank’s goal is to provide its customers with high quality, responsive and technologically advanced banking services. In addition, the bank strives to develop personal, knowledgeable relationships with its customers, while at the same time it offers products comparable to those offered by larger banks in its market area. We believe that the marketing of customized banking services has enabled the bank to establish a niche in the financial services marketplace in the Richmond metropolitan area.

The bank currently conducts business from its executive offices and seven branch locations. See “Item 2 – Description of Property”.

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Table of Contents

General

As a bank holding company, we are subject to regulation under the Bank Holding Company Act of 1956, as amended, and the examination and reporting requirements of the Board of Governors of the FRB. As a state-chartered commercial bank, First Capital Bank is subject to regulation, supervision and examination by the Virginia State Corporation Commission’s Bureau of Financial Institutions (the “BFI”). It is also subject to regulation, supervision and examination by the FRB. Other federal and state laws, including various consumer and compliance laws, govern the activities of the bank, the investments that it makes and the aggregate amount of loans that it may grant to one borrower.

The following description summarizes the significant federal and state laws applicable to us and our subsidiary. To the extent that statutory or regulatory provisions are described, the description is qualified in its entirety by reference to that particular statutory or regulatory provision.

General

Total assets increased 19.3% to $419,644,745 at September 30, 2008 when compared to assets of $351,866,968 at December 31, 2007. On an annual basis total assets increased 34.9% when compared to assets of $311,055,687 at September 30, 2007. Gross loans as of September 30, 2008 were $352,155,709, an increase of $55,250,990, or 18.6%, from $296,904,990 at year-end 2007. On an annual basis total loans increased $97,915,000 or 38.5%, from $254,241,000 at September 30, 2007. Investment securities were $32,031,973 at September 30, 2008, compared to $32,824,537 at year-end 2007. On an annual basis, investment securities decreased $2,282,317, or 6.7% over September 2007. Cash and cash equivalents were $26,244,591, an increase of $9,465,053, or 56.47% from $16,779,538 at December 31, 2007.

Deposits increased $67,755,224, or 26.6%, during the nine months ended September 30, 2008. On an annualized basis deposits increased $98,957,052 or 44.2%. Noninterest-bearing demand deposit accounts increased $1,399,861 to $37,941,429, a 3.8% increase over December 31, 2007 and $2,640,592 on an annual basis when compared to September 30, 2007. Interest-bearing deposits totaled $284,922,118 at September 30, 2008, compared to $218,566,755 at year-end 2007. Certificates of deposits are the major category of our interest-bearing deposits.

Stockholders’ equity was $34,662,811 at September 30, 2008, compared to $34,859,058 at December 31, 2007. Components of the change in stockholders’ equity include net income of $338,232, increases in net unrealized losses on available-for-sale securities totaling $650,835 and stock based compensation totaling $116,356.

General

Total assets increased 12.7% to $396,462,082 at June 30, 2008 when compared to assets of $351,866,968 at December 31, 2007. On an annual basis total assets increased 38.1% when compared to assets of $286,990,135 at June 30, 2007. Total loans as of June 30, 2008 were $335,719,956, an increase of $38,814,966, or 13.1%, from $296,904,990 at year-end 2007. On an annual basis total loans increased $107,062,922 or 46.8%, from $228,657,922 in June 2007. Investment securities were $29,736,569 at June 30, 2008, compared to $32,824,537 at year-end 2007. On an annual basis, investment securities decreased $853,409, or 2.8% over June 2007. Cash and cash equivalents were $21,430,497, an increase of $4,650,959, or 27.7% from $16,779,538 at December 31, 2007.

Deposits increased $33,112,680, or 13.0%, during the six months ended June 30, 2008. On an annualized basis deposits increased $69,177,367 or 31.6%. Noninterest-bearing demand deposit accounts increased $1,478,026 to $38,019,594, a 4.0% increase over December 31, 2007 and $339,231 on an annual basis when compared to June 30, 2007. Interest-bearing deposits totaled $250,201,409 at June 30, 2008, compared to $218,566,755 at year-end 2007. Certificates of deposits are the major category of our interest-bearing deposits.

Stockholders’ equity was $35,277,569 at June 30, 2008, compared to $34,859,058 at December 31, 2007. Components of the change in stockholders’ equity include net income of $801,308, increases in net unrealized losses on available-for-sale securities totaling $461,895 and stock based compensation totaling $79,098.