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FIRST CAPITAL, INC. REPORTS INCREASE IN FIRST QUARTER EARNINGS
Corydon, Indiana--(BUSINESS WIRE)--April 21, 2005. First Capital, Inc. (NASDAQ:
FCAP - news), the holding company for First Harrison Bank (the "Bank"), today
reported net income of $856,000 or $0.33 per diluted share for the quarter ended
March 31, 2005, compared to $833,000 or $0.30 per diluted share for the quarter
ended March 31, 2004.
The increase in earnings is due to an increase in noninterest income partially
offset by an increase in noninterest expense and a slight decrease in net
interest income after the provision for loan losses.
Net interest income after provision for loan losses decreased $19,000 for the
quarter ended March 31, 2005 as compared to the prior year. Interest income
increased $181,000 while interest expense increased $175,000 when comparing the
two periods. The provision for loan losses increased from $125,000 during the
quarter ended March 31, 2004 to $150,000 for the same period in 2005.
Noninterest income increased $198,000 for the three months ended March 31, 2005
as compared to the same period in 2004. Gains on loans sold for the quarter
ended March 31, 2005 were $87,000 while the Bank sold no loans during the same
period of 2004. Service charges on deposit accounts and commission income
increased $76,000 and $30,000 when comparing the same two periods.
Noninterest expenses increased $152,000 during the three months ended March 31,
2005 as compared to the three months ended March 31, 2004. Compensation and
benefits accounted for $87,000 of this increase primarily due to increases in
wages, the cost of health insurance and acceleration of the release of ESOP plan
shares. Other operating expenses increased $53,000 when comparing the two
periods. The primary causes were increases in advertising, employee training and
postage expense.
Total assets as of March 31, 2005 were $436.6 million compared to $425.3 million
at December 31, 2004. The primary factors behind the asset growth were increases
in interest bearing deposits with banks and available-for-sale securities of
$9.8 million and $3.3 million, respectively. The funding for the growth was
provided by increases of $7.9 million in retail repurchase agreements and $4.9
million in deposits.
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 press release 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 2005 2004
(Dollars in thousands, except per share data) ---- ----
Total interest income $ 5,620 $ 5,439
Total interest expense 2,401 2,226
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Net interest income 3,219 3,213
Provision for loan losses 150 125
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Net interest income after provision for loan losses 3,069 3,088
Total non-interest income 786 588
Total non-interest expense 2,591 2,439
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Income before income taxes 1,264 1,237
Income tax expense 408 404
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Net income $ 856 $ 833
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Net income per common share, basic $ 0.33 $ 0.30
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Weighted average common shares outstanding - basic 2,564,467 2,775,847
Net income per common share, diluted $ 0.33 $ 0.30
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Weighted average common shares outstanding - diluted 2,591,884 2,812,220
MARCH 31, DECEMBER 31,
BALANCE SHEET INFORMATION 2005 2004
(Dollars in thousands) ---- ----
Cash and cash equivalents $ 28,274 $ 17,425
Investment securities 69,697 66,450
Gross loans receivable 315,428 319,564
Allowance for loan losses 2,228 2,478
Earning assets 400,640 390,948
Total assets 436,633 425,302
Deposits 321,319 316,462
FHLB debt 63,399 65,099
Repurchase agreements 8,583 635
Stockholders' equity 40,604 40,714
Non-performing assets:
Nonaccrual loans 1,480 2,075
Foreclosed real estate 868 442
Contact:
First Capital, Inc.
M. Chris Frederick, 812-738-2198, ext. 234