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EXHIBIT 99.1
FIRST CAPITAL, INC. REPORTS 15% INCREASE IN FIRST QUARTER EARNINGS
Corydon, Ind--(BUSINESS WIRE)--April 23, 2004--First Capital, Inc. (NASDAQ: FCAP
- - News), the holding company for First Harrison Bank (the "Bank"), today
reported net income of $833,000 or $0.30 per diluted share for the quarter ended
March 31, 2004, compared to $721,000 or $0.28 per diluted share for the quarter
ended March 31, 2003. This represents an increase of over 15%.
The increase in earnings is due to increases in net interest income after the
provision for loan losses and noninterest income partially offset by an increase
in noninterest expenses.
Net interest income after provision for loan losses increased $592,000 for the
quarter ended March 31, 2004 as compared to the prior year. Interest income
increased $731,000 while interest expense grew only $164,000 when comparing the
two periods. The provision for loan losses was virtually unchanged, decreasing
by $25,000 to a total of $125,000 for the quarter ended March 31, 2004.
Noninterest income increased $79,000 as compared to the quarter ended March 31,
2003. Service charges on deposits accounted for $63,000 of this increase.
Commission income and mortgage brokerage fees increased $39,000 and $38,000,
respectively. These were partially offset by a decrease of $51,000 in gains on
security sales as no securities were sold during the first quarter of 2004.
Noninterest expenses increased $521,000 for the quarter ended March 31, 2004 as
compared to the same period in 2003. This increase is primarily the result of
the additional staff and facilities from three new offices. The company acquired
Hometown Bancshares, the holding company for Hometown National Bank and their
two locations on March 20, 2003. The Bank opened a new office in Jeffersonville,
Indiana in May of 2003.
Compensation and benefits increased $395,000 for the first quarter of 2004
compared to the prior year, accounting for the largest increase in noninterest
expenses. Occupancy and equipment expenses for the March 31, 2004 quarter
increased $60,000 while other operating expenses increased $61,000. Fees for
professional services, telephone expenses and the amortization of the core
deposit intangibles relating to the Hometown acquisition were the primary
factors behind the increase in other operating expenses.
Total assets as of March 31, 2004 were $414.6 million compared to $409.1 million
at December 31, 2003. The primary factor behind the asset growth was an increase
in net loans receivable of $7.6 million. The funding for the loan increase was
provided primarily by increases in deposits and Federal Home Loan Bank advances
of $3.3 million and $1.3 million, respectively.
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
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.
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FIRST CAPITAL, INC. AND SUBSIDIARY
Consolidated Financial Highlights (Unaudited)
THREE MONTHS ENDED
MARCH 31,
OPERATING DATA 2004 2003
---- ----
(Dollars in thousands, except per share data)
Total interest income $ 5,439 $ 4,708
Total interest expense 2,226 2,062
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Net interest income 3,213 2,646
Provision for loan losses 125 150
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Net interest income after provision for loan losses 3,088 2,496
Total non-interest income 588 509
Total non-interest expense 2,439 1,918
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Income before income taxes 1,237 1,087
Income tax expense 404 366
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Net income $ 833 $ 721
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Net income per common share, basic $ 0.30 $ 0.29
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Weighted average common shares outstanding - basic 2,776,064 2,514,198
Net income per common share, diluted $ 0.30 $ 0.28
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Weighted average common shares outstanding - diluted 2,812,437 2,551,567
MARCH 31, DECEMBER 31,
BALANCE SHEET INFORMATION 2004 2003
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Cash and due from banks $ 8,337 $ 12,190
Interest bearing deposits with banks 5,610 1,371
Investment securities 65,359 67,751
Gross loans 314,223 306,633
Allowance for loan losses 2,468 2,433
Earning assets 385,975 376,416
Total assets 414,578 409,138
Deposits 305,760 302,468
FHLB debt 61,562 60,242
Stockholders' equity 44,407 43,895
Non-performing assets:
Nonaccrual loans 2,399 2,637
Foreclosed real estate 387 225
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Contact:
First Capital, Inc.
M. Chris Frederick, 812/738-2198, ext. 234