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EXHIBIT 99.1
FIRST CAPITAL, INC. REPORTS 7% INCREASE IN QUARTERLY EARNINGS
Corydon, Indiana--(BUSINESS WIRE)--October 21, 2003. First Capital, Inc.
(NASDAQ: FCAP - news), the holding company for First Harrison Bank (the "Bank"),
today reported net income of $886,000 or $0.32 per diluted share for the quarter
ended September 30, 2003. This represents an increase of 7% compared to $829,000
or $0.33 per diluted share for the quarter ended September 30, 2002.
The increase in net income was provided by increases in net interest income
after provision for loan losses and noninterest income, partially offset by an
increase in noninterest expenses.
Net interest income after provision for loan losses increased $573,000 for the
quarter ended September 30, 2003 as compared to the quarter ended September 30,
2002. Interest income increased $738,000 while interest expense decreased
$45,000 when comparing the same two periods. This was partially offset by an
increase of $210,000 in the provision for loan losses during the quarter ended
September 30, 2003 compared to the same period in 2002. The primary factor in
the increase in the provision is due to an increase of $550,000 in the amount of
nonaccrual loans during the quarter ended September 30, 2003. During the same
period in 2002, nonaccrual loans increased by only $7,000.
Noninterest income increased $141,000 for the quarter ended September 30, 2003
as compared to the quarter ended September 30, 2002. Service charges on deposits
accounted for a $116,000 increase and mortgage brokerage fees increased $38,000.
Noninterest expenses increased $629,000 during the quarter ended September 30,
2003 as compared to September 30, 2002. Compensation and benefits represented
$331,000 of this increase. The bank has increased the staff by over 20% when
comparing September 30, 2003 to September 2002 staffing levels due to the
additional personnel in the three new locations; two acquired through the
Hometown National Bank acquisition in March and the other being the new branch
opened in Jeffersonville, Indiana in May. These new locations also contributed
to a $145,000 increase in occupancy and equipment expenses. Other operating
expenses increased $153,000 compared to the same period last year primarily due
to increases in advertising, consulting fees and telephone and data line
expenses.
For the nine months ended September 30, 2003, the Company earned $2.6 million or
$0.96 per diluted share compared to $2.4 million or $0.96 for the same period in
2002.
Net interest income after provision for loan loss increased $1.4 million during
the first nine months of 2003 compared to the same period in 2002. Interest
income provided an increase of $1.7 million which was partially offset by an
increase of $445,000 to the loss provision when comparing the two periods.
Noninterest income increased $426,000 primarily due to an increase of $306,000
in service charges on deposits. Noninterest expenses increased by $1.5 million
when compared to the same period one year ago. Compensation and benefits
increased $786,000 and occupancy and equipment costs increased $377,000. Again,
the primary factors contributing to these increases were the additional offices
and personnel as compared to one year ago. Other operating expenses increased
$383,000 when comparing the two periods. Advertising expenses accounted for
$145,000 of this increase as the Bank adopted a more aggressive print and
television campaign in the newly expanded areas.
Total assets as of September 30, 2003 were $399.0 million compared to $308.6
million at December 31, 2002. At the time of the Hometown acquisition, Hometown
National Bank had assets of $90.5 million, including gross loans receivable of
$65.4 million, an allowance for loan losses of $1.1 million, nonaccrual loans of
$518,000, foreclosed real estate of $80,000 and short-term investments totaling
$18.2 million. Hometown deposits at the acquisition date totaled $84.7 million.
First Harrison Bank currently has twelve offices in the Indiana communities of
Corydon, Crandall, Georgetown, Greenville, Floyds Knobs, Hardinsburg, Palmyra,
New Albany, New Salisbury and Jeffersonville. Access to First Harrison Bank
accounts, including online banking and electronic bill payments, is available
anywhere with Internet access through the Bank's website at
www.firstharrison.com. First Harrison Financial Services, a subsidiary of the
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Bank, offers a full array of property, casualty and life insurance products, as
well as non FDIC insured investments to compliment the Bank's offering of
traditional banking products and services.
This report may contain forward-looking statements within the meaning of the
federal securities laws. These statements are not historical facts, rather
statements based on the Company's current expectations regarding its business
strategies and their intended results and its future performance.
Forward-looking statements are preceded by terms such as "expects," "believes,"
"anticipates," "intends" and similar expressions.
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Forward-looking statements are not guarantees of future performance. Numerous
risks and uncertainties could cause or contribute to the Company's actual
results, performance and achievements to be materially different from those
expressed or implied by the forward-looking statements. Factors that may cause
or contribute to these differences include, without limitation, general economic
conditions, including changes in market interest rates and changes in monetary
and fiscal policies of the federal government; legislative and regulatory
changes; and other factors disclosed periodically in the Company's filings with
the Securities and Exchange Commission.
Because of the risks and uncertainties inherent in forward-looking statements,
readers are cautioned not to place undue reliance on them, whether included in
this report or made elsewhere from time to time by the Company or on its behalf.
Except as may be required by applicable law or regulation, the Company assumes
no obligation to update any forward-looking statements.
FIRST CAPITAL, INC. AND SUBSIDIARY
Consolidated Financial Highlights (Unaudited)
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
OPERATING DATA 2003 2002 2003 2002
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(Dollars in thousands, except per share data)
Total interest income $ 15,852 $ 14,165 $ 5,506 $ 4,768
Total interest expense 6,502 6,686 2,189 2,234
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Net interest income 9,350 7,479 3,317 2,534
Provision for loan losses 600 155 275 65
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Net interest income after provision for loan losses 8,750 7,324 3,042 2,469
Total non-interest income 1,689 1,263 585 444
Total non-interest expense 6,441 4,895 2,257 1,628
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Income before income taxes 3,998 3,692 1,370 1,285
Income tax expense 1,391 1,296 484 456
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Net income $ 2,607 $ 2,396 $ 886 $ 829
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Net income per common share, basic $ 0.97 $ 0.97 $ 0.32 $ 0.33
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Net income per common share, diluted $ 0.96 $ 0.96 $ 0.32 $ 0.33
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SEPTEMBER 30, DECEMBER 31,
BALANCE SHEET INFORMATION 2003 2002
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Cash and due from banks $ 7,092 $ 6,610
Interest bearing deposits with banks 6,620 6,044
Investment securities 66,876 66,454
Gross loans 297,072 217,214
Allowance for loan losses 2,548 1,218
Earning assets 371,077 291,210
Total assets 399,012 308,553
Deposits 299,646 216,202
FHLB debt 53,341 53,320
Stockholders' equity 43,410 36,330
Non-performing assets:
Nonaccrual loans 2,039 607
Foreclosed real estate 260 102
Contact:
First Capital, Inc., Corydon
M. Chris Frederick, 812/738-2198, ext. 234