1
FIRST CAPITAL, INC. REPORTS QUARTERLY EARNINGS INCREASE
Corydon, Indiana--(BUSINESS WIRE)--January 22, 2004. First Capital, Inc.
(NASDAQ: FCAP - news), the holding company for First Harrison Bank (the "Bank"),
today reported net income of $926,000 or $0.33 per diluted share for the quarter
ended December 31, 2003. This represents an increase of over 8% compared to
$852,000 or $0.34 per diluted share for the quarter ended December 31, 2002.
The increase in net income is attributed to increases in interest and
noninterest income, partially offset by an increase in noninterest expense.
Net interest income after provision for loan losses increased $623,000 for the
quarter ended December 31, 2003 as compared to the prior year. Interest income
increased $695,000 when comparing the two periods while interest expense
increased only $97,000. The provision for loan losses was virtually unchanged,
decreasing by $25,000 to a total of $125,000 for the quarter ended December 31,
2003.
Noninterest income increased $120,000 as compared to the quarter ended December
31, 2002. Service charges on deposits accounted for $94,000 of this increase and
commission income increased $43,000 while other sources of noninterest income
decreased by $17,000.
Noninterest expense increased $657,000 during the quarter ended December 31,
2003 as compared to December 31, 2002. Compensation and benefits increased
$365,000 when comparing the same two periods, primarily due to the addition of
staff associated with the March 2003 acquisition of the two former Hometown
National Bank locations and the May 2003 opening of the new office in
Jeffersonville, Indiana. These three locations, which represent a 30% increase
in the number of offices, were also the primary factors in the $153,000 increase
in occupancy and equipment expense. Other operating expenses increased $140,000
when comparing the quarter ended December 31, 2003 to the same period in 2002.
The primary causes were increases in charitable contributions, advertising and
in losses on the sale of foreclosed assets.
For the year ended December 31, 2003, the Company reported net income of $3.5
million or $1.29 per diluted share compared to $3.2 million or $1.30 per diluted
share for 2002.
Net interest income after provision for loan losses increased $2.0 million
during 2003 as compared to 2002. Interest income increased $2.4 million while
interest expense decreased $87,000. The provision for loan losses in 2003 was
$725,000 compared to $305,000 during 2002, primarily due to the $2.0 million
increase in nonaccrual loans.
Noninterest income increased $539,000 during 2003. Service charges on deposits
accounted for $400,000 of that increase. Noninterest expense increased $2.2
million during 2003 as compared to 2002. Compensation and benefits accounted for
$1.2 million and occupancy and equipment $530,000 of the increase. The
additional personnel and offices were again the primary influence behind the
increases. Other operating expenses increased $542,000 during 2003. Increases in
advertising costs, telephone and office supply expenses contributed greatly to
this additional expense.
Total assets grew from $308.6 million at December 31, 2002 to $409.1 million at
December 31, 2003. 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
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.
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
2
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)
TWELVE MONTHS ENDED THREE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
OPERATING DATA 2003 2002 2003 2002
---- ---- ---- ----
(Dollars in thousands, except per share data)
Total interest income $ 21,302 $ 18,912 $ 5,450 $ 4,755
Total interest expense 8,715 8,802 213 2,116
--------------------------------- ------------------------------
Net interest income 12,587 10,110 3,237 2,639
Provision for loan losses 725 305 125 150
--------------------------------- ------------------------------
Net interest income after provision for loan losses 11,862 9,805 3,112 2,489
Total non-interest income 2,276 1,737 587 467
Total non-interest expense 8,735 6,531 2,294 1,637
--------------------------------- ------------------------------
Income before income taxes 5,403 5,011 1,405 1,319
Income tax expense 1,870 1,763 479 467
--------------------------------- ------------------------------
Net income $ 3,533 $ 3,248 $ 926 $ 852
================================= ==============================
Net income per common share, basic $ 1.30 $ 1.31 $ 0.33 $ 0.34
================================= ==============================
Weighted average common shares outstanding - basic 2,708,356 2,475,938 2,772,941 2,479,659
Net income per common share, diluted $ 1.29 $ 1.30 $ 0.33 $ 0.34
================================= ==============================
Weighted average common shares outstanding - diluted 2,743,469 2,504,353 2,807,802 2,517,675
DECEMBER 31, DECEMBER 31,
BALANCE SHEET INFORMATION 2003 2002
---- ----
Cash and due from banks $ 12,190 $ 6,610
Interest bearing deposits with banks 1,371 6,044
Investment securities 67,751 66,454
Gross loans 306,633 217,214
Allowance for loan losses 2,433 1,218
Earning assets 376,416 291,210
Total assets 409,138 308,553
Deposits 302,468 216,202
FHLB debt 60,242 53,320
Stockholders' equity 43,895 36,330
Non-performing assets:
Nonaccrual loans 2,637 607
Foreclosed real estate 225 102
________________________
Contact:
First Capital, Inc.
M. Chirs Frederick, 812-738-2198, ext. 234