FIRST CAPITAL, INC. REPORTS 2007 EARNINGS RESULTS
Corydon, Indiana--February 1, 2008. First Capital, Inc. (NASDAQ: FCAP - news)
(the "Company"), the holding company for First Harrison Bank (the "Bank"), today
reported net income of $3.4 million or $1.20 per diluted share for the year
ended December 31, 2007, compared to $3.7 million or $1.30 per diluted share for
the year ended December 31, 2006.
Net interest income after provision for loan losses increased $168,000 for the
year ended December 31, 2007 as compared to the year ended December 31, 2006.
Interest income increased $874,000 when comparing the two periods as the average
tax-equivalent yield of interest-earning assets increased from 6.38% during the
year ended December 31, 2006 to 6.58% for 2007. The average balance of those
earning assets increased from $417.9 million in 2006 to $419.0 million in 2007.
Interest expense increased $958,000 as the average cost of interest-bearing
liabilities increased from 3.48% to 3.76% when comparing the same two periods.
The average balance of those liabilities decreased from $365.8 million in 2006
to $364.5 in 2007. The provision for loan losses decreased from $810,000 for the
year ended December 31, 2006 to $558,000 for the year ended December 31, 2007.
Noninterest income increased $53,000 for the year ended December 31, 2007 as
compared to the year ended December 31, 2006. Service charges on deposits
accounts and the cash surrender value of life insurance increased $163,000 and
$108,000, respectively, when comparing the two periods. The increase in cash
surrender value of life insurance was due to the purchase of $3.6 million of
bank-owned life insurance in May 2007. Other income and commission income
decreased $168,000 and $140,000, respectively, primarily due to the sale of the
Company's insurance agency in December 2006.
Noninterest expenses increased $798,000 during 2007 compared to the year ended
December 31, 2006. An increase in compensation and benefits expense represented
$361,000 of the additional expenses, primarily due to an increase in staff and
normal salary increases. Other operating expenses increased $212,000 during the
year ended December 31, 2007 as compared to the year ended December 31, 2006
primarily due to losses on the sale of foreclosed assets and other expenses
associated with those assets.
For the quarter ended December 31, 2007, the Company earned $901,000 or $0.32
per diluted share compared to $986,000 or $0.35 per diluted share for the same
period in 2006.
Net interest income after provision for loan losses increased $143,000 during
the quarter ended December 31, 2007 as compared to the quarter ended December
31, 2006. Interest income decreased $6,000 when comparing the two periods as a
result of an increase in the average tax-equivalent yield on interest earning
assets from 6.50% during the fourth quarter of 2006 to 6.61% during the same
period of 2007 that was offset by a decrease in the average balance of those
earning assets from $425.7 million in the fourth quarter of 2006 to $418.6
million during the same period of 2007. Interest expense decreased $104,000 as
the average cost of interest-bearing liabilities decreased from 3.77% to 3.72%
and the average balance of those liabilities decreased from $371.6 million to
$365.9 million when comparing the two periods. The provision for loan losses
decreased $45,000 when comparing the two periods.
Noninterest income decreased $162,000 primarily due to a decrease in other
income attributable to the previously mentioned sale of the Company's insurance
agency.
Noninterest expenses increased $186,000 when comparing the quarter ended
December 31, 2007 to the quarter ended December 31, 2006, primarily due to an
increase of $103,000 in compensation and benefits expense attributable to normal
salary increases and the increased staff due to the opening of the new office in
Salem, Indiana during the quarter.
Total assets as of December 31, 2007 were $453.2 million compared to $457.1
million at December 31, 2006. Cash and cash equivalents decreased $9.4 million
while cash value of life insurance increased $3.8 million. Retail repurchase
agreements and deposits decreased $3.7 million and $3.0 million, respectively.
First Harrison Bank currently has twelve offices in the Indiana communities of
Corydon, Georgetown, Greenville, Floyds Knobs, Hardinsburg, Palmyra, New Albany,
New Salisbury, Jeffersonville and Salem. 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 Bank, through its business arrangement with Great American Advisors,
continues to offer non FDIC insured investments to complement 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.
FIRST CAPITAL, INC. AND SUBSIDIARY
Consolidated Financial Highlights (Unaudited)
TWELVE MONTHS ENDED THREE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2007 2006 2007 2006
OPERATING DATA ---- ---- ---- ----
(Dollars in thousands, except per share data)
Total interest income $ 27,085 $ 26,211 $ 6,785 $ 6,791
Total interest expense 13,699 12,741 3,400 3,504
----------------------------- -----------------------------
Net interest income 13,386 13,470 3,385 3,287
Provision for loan losses 558 810 180 225
----------------------------- -----------------------------
Net interest income after provision for loan losses 12,828 12,660 3,205 3,062
Total non-interest income 3,524 3,471 903 1,065
Total non-interest expense 11,349 10,551 2,802 2,616
----------------------------- -----------------------------
Income before income taxes 5,003 5,580 1,306 1,511
Income tax expense 1,591 1,872 405 525
----------------------------- -----------------------------
Net income $ 3,412 $ 3,708 $ 901 $ 986
============================= =============================
Net income per common share, basic $ 1.21 $ 1.31 $ 0.32 $ 0.35
============================= =============================
Weighted average common shares outstanding - basic 2,814,691 2,823,372 2,802,178 2,824,424
Net income per common share, diluted $ 1.20 $ 1.30 $ 0.32 $ 0.35
============================= =============================
Weighted average common shares outstanding - diluted 2,836,601 2,848,229 2,820,724 2,850,449
OTHER FINANCIAL DATA
Cash dividends per share $ 0.68 $ 0.68 $ 0.17 $ 0.17
Return on average assets (three month data, annualized) 0.76% 0.84% 0.80% 0.88%
Return on average equity (three month data, annualized) 7.74% 8.64% 7.92% 9.01%
Net interest margin 3.31% 3.34% 3.36% 3.20%
Net overhead expense as a percentage of average assets
(three month data, annualized) 2.54% 2.37% 2.49% 2.33%
DECEMBER 31, DECEMBER 31,
BALANCE SHEET INFORMATION 2007 2006
---- ----
Cash and cash equivalents $ 15,055 $ 24,468
Investment securities 74,041 72,480
Gross loans 336,695 335,895
Allowance for loan losses 2,232 2,320
Earning assets 417,358 422,347
Total assets 453,179 457,105
Deposits 328,151 331,143
FHLB debt 60,694 59,461
Repurchase agreements 15,562 19,228
Stockholders' equity 45,736 44,089
Non-performing assets:
Nonaccrual loans 4,879 3,245
Accruing loans past due 90 days 795 1,125
Foreclosed real estate 833 941
Contact:
- -------
Chris Frederick
Chief Financial Officer
812-734-3464