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FIRST CAPITAL, INC. REPORTS THIRD QUARTER EARNINGS
Corydon, Indiana--(BUSINESS WIRE)--October 22, 2004. First Capital, Inc.
(NASDAQ: FCAP - news), the holding company for First Harrison Bank (the "Bank"),
today reported net income of $856,000 or $0.30 per diluted share for the quarter
ended September 30, 2004, compared to $886,000 or $0.32 per diluted share during
the same period in 2003.
The reduction in earnings was caused by an increase in noninterest expense,
partially offset by increases in noninterest income and net interest income
after provision for loan losses.
Net interest income after provision for loan losses increased $98,000 for the
quarter ended September 30, 2004 as compared to the quarter ended September 30,
2003. Interest income increased $24,000 while interest expense increased
$101,000 when comparing the two periods. The provision for loan losses decreased
from $275,000 during the quarter ended September 30, 2003 compared to $100,000
for the same period in 2004. The main reason for this difference is during the
quarter ended September 30, 2003, the total of nonaccrual loans increased
$550,000, while the nonaccrual loans decreased $24,000 during the same period in
2004.
Noninterest income increased $94,000 for the quarter ended September 30, 2004 as
compared to the quarter ended September 30, 2003. The Bank realized a $60,000
gain on the sale of mortgage loans during the quarter ended September 30, 2004
while no mortgages were sold during the quarter ended September 30, 2003.
Noninterest expenses increased $263,000 as compared to the quarter ended
September 30, 2003. Compensation and benefits accounted for $217,000 of the
increase. The large number of refinancings during 2003 resulted in a reduction
of compensation and benefits of $187,000 during the quarter ended September 30,
2003 due to the deferral of the costs associated with underwriting loans. The
same quarter of 2004 resulted in a reduction of only $62,000 as loan
originations declined.
For the nine months ended September 30, 2004, the Company earned $2.6 million or
$0.91 per diluted share compared to $2.6 million or $0.96 per diluted share for
the same period in 2003.
Net interest income after provision for loan loss increased $543,000 for the
nine months ended September 30, 2004 compared to the nine months ended September
30, 2003. Interest income increased $535,000 when comparing the two periods,
primarily due to an increase in the average balance of interest-earning assets
from $348.0 million during the first nine months of 2003 to $388.2 million for
the same period in 2004. Interest expense increased $247,000 when comparing the
two periods primarily due to a $35.0 million increase in the average balance of
interest-bearing liabilities. Most of these increases were the result of the
March 2003 acquisition of Hometown Bancshares, Inc. (Hometown), the holding
company for Hometown National Bank, in New Albany, Indiana. The provision for
loan losses decreased $255,000 when comparing the two periods.
Noninterest income increased $286,000 when comparing the nine months ended
September 30, 2004 to the same period in 2003. Service charges on deposits
increased $108,000 while gains on the sale of mortgage loans and mortgage
brokerage fees increased $83,000 and $65,000, respectively.
Noninterest expenses increased $967,000 when comparing the two periods.
Compensation and benefits were responsible for $813,000 of this increase. The
additional employees from the two former Hometown locations, as well as the
Jeffersonville office, opened in May 2003, contributed to this increase as did
the reduction of the deferral of costs associated with underwriting loans. Other
operating expenses increased $93,000 as charitable contributions and expenses on
other real estate owned each increased $28,000.
Total assets as of September 30, 2004 were $424.2 million compared to $409.1
million at December 31, 2003. Net loans receivable increased $16.5 million
during the period and was the primary factor behind the asset growth. The
funding for loan growth was provided by increases in deposits of $9.6 million
and Federal Home Loan Bank advances of $4.0 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.
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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.
FIRST CAPITAL, INC. AND SUBSIDIARY
Consolidated Financial Highlights (Unaudited)
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
OPERATING DATA 2004 2003 2004 2003
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(Dollars in thousands, except per share data)
Total interest income $ 16,387 $ 15,852 $ 5,530 $ 5,506
Total interest expense 6,749 6,502 2,290 2,189
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Net interest income 9,638 9,350 3,240 3,317
Provision for loan losses 345 600 100 275
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Net interest income after provision for loan losses 9,293 8,750 3,140 3,042
Total non-interest income 1,975 1,689 679 585
Total non-interest expense 7,408 6,441 2,520 2,257
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Income before income taxes 3,860 3,998 1,299 1,370
Income tax expense 1,310 1,391 443 484
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Net income $ 2,550 $ 2,607 $ 856 $ 886
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Net income per common share, basic $ 0.92 $ 0.97 $ 0.31 $ 0.32
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Weighted average common shares outstanding - basic 2,774,604 2,686,597 2,774,524 2,772,387
Net income per common share, diluted $ 0.91 $ 0.96 $ 0.30 $ 0.32
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Weighted average common shares outstanding - diluted 2,809,512 2,722,501 2,807,355 2,806,214
SEPTEMBER 30, DECEMBER 31,
BALANCE SHEET INFORMATION 2004 2003
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Cash and due from banks $ 13,244 $ 12,190
Interest bearing deposits with banks 2,849 1,371
Investment securities 63,242 67,751
Gross loans 323,187 306,633
Allowance for loan losses 2,416 2,433
Earning assets 390,492 376,416
Total assets 424,234 409,138
Deposits 312,055 302,468
FHLB debt 64,249 60,242
Stockholders' equity 44,965 43,895
Non-performing assets:
Nonaccrual loans 2,703 2,637
Foreclosed real estate 706 225
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Contact:
First Captial, Inc.
M. Chris Frederick, 812/738-2198, ext. 234