First Capital, Eastern Virginia call off merger

First Capital Bancorp Inc., the bank holding company for First Capital Bank, and Eastern Virginia Bankshares Inc. today called off their merger, citing the long process to get regulatory approval.

The merger was announced April 3 and shareholders from Glen Allen-based First Capital and Tappahannock-based Eastern Virginia had approved the transaction. The combination would have created the second-largest community bank based in the Richmond area and one of the 10 largest in Virginia, based on total assets.

Joe Shearin, president and chief executive officer of Eastern Virginia, and John Presley, managing director and chief executive of First Capital, said in a joint statement today that the combination of the two banks was considered to be in the best interest of customers, shareholders, employees and the community.

"We still believe that today. However, the current regulatory and economic environment is such that obtaining regulatory approval has taken much longer than we ever anticipated and has reached a point . . . that continuing to wait for this approval is not in the best interest of either company."