Announcement (April 3, 2009):

EVB has signed an agreement to merge with FCB.

Under the terms of the agreement, FCB common stockholders will receive 0.98 shares of EVB for each of their shares in FCB, valued at approximately $27 million as on April 2, 2009.

Keefe, Bruyette and Woods, Inc. and Williams Mullen, LLP are acting as financial and legal advisors to EVB, respectively. Burke Capital Group and Davenport & Company LLC are acting as financial advisors, while Cantor Arkema P.C. is acting as legal advisor to FCB on this transaction.

The transaction is expected to close by the end of the year 2009.

Deal Value (US$ Million) 27
Deal Type                Merger
Deal Status              Terminated: 2009-11-09

Deal Participants

Target 1 (Company) First Capital Bancorp, Inc.
Target 2 (Company) Eastern Virginia Bankshares, Inc.

Deal Rationale

The merger would result in a stronger financial services provider and the complementary strengths of the companies would allow the combined company to take advantage of these to provide expanded products and services for customers and the communities in which they operate. The merger would also enable the combined company to increase its capabilities and would position it to be a significant bank for the small business market.

First Capital Bancorp recently reported financial results for the third quarter of 2009, in which the company reported profits of $405 thousand, improved credit metrics regarding its loan portfolio and a continuation of building reserves for loan losses. The company also reported strong capital ratios, total risk based capital was 14.26% at September 30, 2009 (well capitalized is considered 10%), tier one risk based capital was 12.52% and Tangible Common Equity of 6.93%.

First Capital Bank President and CEO Bob Watts stated, "We are disappointed about the termination of the merger and still believe in the merits of the proposed combination, however, we are extremely pleased by the overall performance of our company. The bank was profitable for the quarter and outside of merger expenses and FDIC assessments, the bank has been profitable for the year as it was profitable in 2008. This is in light of loan loss provisions of over $3.7 million in the same time period. While the bank has only incurred year to date charge-offs of $442 thousand and nonperforming assets total $9.9 million and represent 2.52% percent of our loan portfolio at the end of the quarter, the current economic conditions dictate extreme caution, and as a result, we have adjusted our underlying reserve calculations."

John Presley, Managing Director and CEO of the First Capital Bancorp said, "Our Board of Directors and Employees have a great admiration for EVB and we hope to maintain a close relationship in the future. And while a great deal of effort has gone into the integration of the two companies, we have remained focused on five critical areas of our company, Liquidity, Capital, Funding Costs, adequacy of the Allowance for Loans Losses and Profitability. I am very pleased with our accomplishments to date. We have grown our deposit base, lowered our costs of funds, increased our capital and positioned the balance sheet for future success, all the while increasing our level of loan loss reserve to reflect the environment we live in today."

The Company currently operates seven branches in WestMark, Chesterfield Towne Center, near Willow Lawn on Staples Mill Road, in Ashland, at Three Chopt and Patterson in Henrico County, at the James Center in downtown, Richmond, and our newest branch in Bon Air, Chesterfield County.

Readers are cautioned that this press release contains forward-looking statements made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current knowledge, assumptions, and analyses, which it believes are appropriate in the circumstances regarding future events, and may address issues that involve significant risks including, but not limited to: changes in interest rates; changes in accounting principles, policies, or guidelines; significant changes in general economic, competitive, and business conditions; significant changes in or additions to laws and regulatory requirements; and significant changes in securities markets. Additionally, such aforementioned uncertainties, assumptions, and estimates, may cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements.

SOURCE First Capital Bancorp, Inc.

http://www.1capitalbank.com