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FIRST CAPITAL, INC. REPORTS FIRST QUARTER EARNINGS
Corydon, Indiana--(BUSINESS WIRE)--April 26, 2007. First Capital, Inc. (NASDAQ:
FCAP - news), the holding company for First Harrison Bank (the "Bank"), today
reported net income of $749,000 or $0.26 per diluted share for the quarter ended
March 31, 2007, compared to $934,000 or $0.33 per diluted share for the quarter
ended March 31, 2006.
The decrease in earnings is due to an increase in noninterest expense and a
decrease in net interest income after provision for loan losses partially offset
by an increase in noninterest income.
Net interest income after provision for loan losses decreased $164,000 for the
quarter ended March 31, 2007 as compared to the prior year. Interest income
increased $473,000 when comparing the periods as the average tax-equivalent
yield of interest-earning assets increased from 6.23% in the three-month period
ended March 31, 2006 to 6.48% during the same period in 2007. Interest expense
increased $582,000 when comparing the periods as the average cost of
interest-bearing liabilities increased from 3.18% to 3.74%. The provision for
loan losses increased from $170,000 for the quarter ended March 31, 2006 to
$225,000 for the same period in 2007.
Noninterest income increased $66,000 for the three months ended March 31, 2007
as compared to the same period in 2006. Gains on mortgage loan sales increased
$97,000 when comparing the two periods while commission income decreased
$38,000. The decrease in commission income is primarily due to the Bank selling
its property and casualty insurance business in December 2006.
Noninterest expenses increased $208,000 during the three months ended March 31,
2007 as compared to the three months ended March 31, 2006. Compensation and
benefits increased $125,000 when comparing the two periods primarily due to
normal increases in salaries and benefits. Other operating expenses increased
$64,000 when comparing the two periods due primarily to expenses related to the
maintenance and sale of foreclosed real estate properties.
Total assets as of March 31, 2007 were $450.5 million compared to $457.1 million
at December 31, 2006. The primary factor behind the decline in assets was a $5.3
million decrease in gross loans receivable due to net loan repayments. These
funds were used primarily to pay down Federal Home Loan Bank debt by $3.0
million and retail repurchase agreements by $2.9 million.
First Harrison Bank currently has eleven offices in the Indiana communities of
Corydon, Georgetown, Greenville, Floyds Knobs, Hardinsburg, Palmyra, New Albany,
New Salisbury and Jeffersonville. The Bank also has received regulatory approval
to open a new office in Salem, Indiana, and construction is expected to begin in
the second quarter of 2007. 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 division of the Bank, offers non-FDIC insured investments
to compliment the Bank's offering of traditional banking products and services.
This release may contain forward-looking statements within the meaning of the
federal securities laws. These statements are not historical facts; rather, they
are 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 2007 2006
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(Dollars in thousands, except per share data)
Total interest income $ 6,764 $ 6,291
Total interest expense 3,445 2,863
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Net interest income 3,319 3,428
Provision for loan losses 225 170
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Net interest income after provision for loan losses 3,094 3,258
Total non-interest income 803 737
Total non-interest expense 2,791 2,583
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Income before income taxes 1,106 1,412
Income tax expense 357 478
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Net income 749 934
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Net income per common share, basic $ 0.27 $ 0.33
Weighted average common shares outstanding - basic 2,823,487 2,820,781
Net income per common share, diluted $ 0.26 $ 0.33
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Weighted average common shares outstanding - diluted 2,848,301 2,844,985
OTHER FINANCIAL DATA
Cash dividends per share $ 0.17 $ 0.17
Return on average assets (annualized) 0.67% 0.85%
Return on average equity (annualized) 6.75% 8.83%
Net interest margin 3.23% 3.44%
Net overhead expense as a percentage
of average assets (annualized) 2.49% 2.36%
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MARCH 31, DECEMBER 31,
BALANCE SHEET INFORMATION 2007 2006
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(Dollars in thousands)
Cash and cash equivalents $ 21,196 $ 24,468
Investment securities 75,704 72,480
Gross loans receivable 330,628 335,895
Allowance for loan losses 2,469 2,320
Earning assets 421,924 422,347
Total assets 450,515 457,105
Deposits 330,023 331,143
FHLB debt 56,436 59,461
Repurchase agreements 16,337 19,228
Stockholders' equity 44,415 44,089
Non-performing assets:
Nonaccrual loans 3,128 3,245
Foreclosed real estate 695 941
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Contact:
First Capital, Inc.
Chris Frederick, CFO
812-734-3464
cfrederick@firstharrison.com