First Capital, Inc. Reports Quarterly Record Earnings

First Capital, Inc. Reports Quarterly Record Earnings

CORYDON, Ind., Oct. 30, 2013 (GLOBE NEWSWIRE) -- First Capital, Inc.
(Nasdaq:FCAP), the holding company for First Harrison Bank (the "Bank"), today
reported record net income of $1.4 million or $0.51 per diluted share for the
quarter ended September 30, 2013, compared to $719,000 or $0.26 per diluted
share for the same period in 2012.

The increase in net income is primarily due to increases in net interest
income after provision for loan losses and noninterest income and a decrease
in noninterest expense. Earnings for the quarter ended September 30, 2012 were
negatively impacted by the Bank's voluntary early retirement program which
resulted in a pre-tax charge to earnings of $693,000. Had that nonrecurring
expense not occurred, the Company would have recognized net income of $1.1
million or $0.41 per diluted share for the quarter ended September 30, 2012.

Net interest income after provision for loan losses increased $344,000 for the
quarter ended September 30, 2013 as compared to the quarter ended September
30, 2012. Interest income decreased $73,000 when comparing the two periods as
the average tax-equivalent yield of interest-earning assets decreased from
4.59% for the three-month period ended September 30, 2012 to 4.50% for the
same period in 2013. Interest expense decreased $167,000 as the average cost
of interest-bearing liabilities decreased from 0.67% to 0.48% when comparing
the same two periods. As a result, the interest-rate spread increased from
3.92% for the quarter ended September 30, 2012 to 4.02% for the same period in
2013. The provision for loan losses decreased from $350,000 for the quarter
ended September 30, 2012 to $100,000 for the quarter ended September 30, 2013
primarily due to a decrease in net charge-offs from $191,000 for the quarter
ended September 30, 2012 to $32,000 for the quarter ended September 30, 2013.

Noninterest income increased $85,000 for the three months ended September 30,
2013 as compared to the same period in 2012. Service charges on deposit
accounts and commission income increased by $67,000 and $39,000, respectively,
when comparing the two periods.

Noninterest expenses decreased $713,000 for the three months ended September
30, 2013 as compared to the three months ended September 30, 2012.
Compensation and benefits expense decreased $714,000 when comparing the two
periods primarily due to the absence in 2013 of the $693,000 pre-tax charge
related to the aforementioned voluntary early retirement program which took
effect on September 30, 2012. Occupancy and equipment expenses also decreased
by $40,000 for 2013 when comparing the two periods, while data processing
expenses increased by $37,000 primarily due to an increase in ATM processing.

For the nine months ended September 30, 2013, the Company reported net income
of $3.8 million or $1.38 per diluted share compared to net income of $2.7
million or $0.96 per diluted share for the same period in 2012. Excluding the
aforementioned charge to earnings for the voluntary early retirement program,
the Company would have reported net income of $3.1 million or $1.11 per
diluted share for the nine months ended September 30, 2012.

Net interest income after provision for loan losses increased $832,000 for the
nine months ended September 30, 2013 compared to the same period in 2012.
Interest income decreased $340,000 when comparing the two periods, due to a
decrease in the average tax-equivalent yield on interest-earning assets from
4.65% for 2012 to 4.46% for 2013. This was partially offset by an increase in
the average balance of interest-earning assets from $416.2 million for the
nine months ended September 30, 2012 to $425.1 million for the nine months
ended September 30, 2013. Interest expense decreased $622,000 as the average
cost of interest-bearing liabilities decreased from 0.75% to 0.50% when
comparing the same two periods while the average balance of interest-bearing
liabilities increased from $341.7 million for the nine months ended September
30, 2012 to $345.2 million for the same period in 2013. The provision for loan
losses decreased from $1.1 million for the nine months ended September 30,
2012 to $575,000 for the same period in 2013 as net charge offs decreased from
$716,000 for the nine months ended September 30, 2012 to $408,000 for the nine
months ended September 30, 2013.

Noninterest income increased $260,000 for the nine months ended September 30,
2013 as compared to the nine months ended September 30, 2012. The increase was
primarily due to increases in commission income and service charges on deposit
accounts of $154,000 and $140,000, respectively.

Noninterest expenses decreased $778,000 for the nine months ended September
30, 2013 as compared to the same period in 2012, primarily due to a decrease
in compensation and benefit expenses of $939,000 due to the absence of the
pre-tax charge incurred in 2012 attributable to the voluntary early retirement
program mentioned previously. This was partially offset by increases in data
processing expenses and professional fees of $91,000 and $72,000,
respectively.

Total assets as of September 30, 2013 were $447.7 million compared to $459.1
million at December 31, 2012. Net loans receivable increased $8.5 million
during the nine months ended September 30, 2013, while securities available
for sale and cash and cash equivalents decreased $10.7 million and $6.4
million, respectively.Deposits and borrowed funds, consisting of retail
repurchase agreements and Federal Home Loan Bank advances, decreased $7.3
million and $3.8 million, respectively, during the nine months ended September
30, 2013. Nonperforming assets (consisting of nonaccrual loans, accruing loans
90 days or more past due, troubled debt restructurings on accrual status, and
foreclosed real estate) totaled $7.0 million and $8.4 million at September 30,
2013 and December 31, 2012, respectively.

At September 30, 2013, the Bank was considered well-capitalized under
applicable federal regulatory capital guidelines.

First Harrison Bank currently has thirteen offices in the Indiana communities
of Corydon, Edwardsville, Greenville, Floyds Knobs, Hardinsburg, Palmyra, New
Albany, New Salisbury, Jeffersonville, Salem and Lanesville. 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 Lincoln Investments, member SIPC, continues to offer non FDIC insured
investments to complement the Bank's offering of traditional banking products
and services. You can also follow us now on Facebook.

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)
                                                                 
                               Nine Months Ended          Three Months Ended
                               September 30,              September 30,
OPERATING DATA                  2013          2012         2013      2012
(Dollars in thousands, except                                    
per share data)
                                                                 
Total interest income           $13,779     $14,119    $4,649  $4,722
Total interest expense          1,306        1,928       408      575
Net interest income             12,473       12,191      4,241    4,147
Provision for loan losses       575          1,125       100      350
Net interest income after       11,898       11,066      4,141    3,797
provision for loan losses
                                                                 
Total non-interest income       3,561        3,301       1,211    1,126
Total non-interest expense      9,898        10,676      3,270    3,983
Income before income taxes      5,561        3,691       2,082    940
Income tax expense             1,721        1,008       653      218
Net income                     $3,840      $2,683     $1,429  $722
Less net income attributable to 10           10          3        3
the noncontrolling interest
Net income attributable to      $3,830      $2,673     $1,426  $719
First Capital, Inc.
                                                                 
Net income per share
attributable toFirst Capital,                                    
Inc. common shareholders:
Basic                          $1.38       $0.96      $0.51   $0.26
                                                                 
Diluted                        $1.38       $0.96      $0.51   $0.26
                                                                 
Weighted average common shares                                    
outstanding:
Basic                          2,784,849     2,785,383    2,784,560 2,785,001
                                                                 
Diluted                        2,784,849     2,785,383    2,784,560 2,785,001
                                                                 
OTHER FINANCIAL DATA                                              
                                                                 
Cash dividends per share        $0.60       $0.57      $0.20   $0.19
Return on average assets        1.12%         0.79%        1.26%     0.63%
(annualized)
Return on average equity        9.64%         6.88%        10.92%    5.49%
(annualized)
Net interest margin             4.06%         4.03%        4.12%     4.04%
Interest rate spread            3.96%         3.90%        4.02%     3.92%
Net overhead expense as a
percentage of average assets    2.89%         3.17%        2.89%     3.51%
(annualized)
                                                                 
                               September 30, December 31,          
BALANCE SHEET INFORMATION       2013          2012                  
                                                                 
Cash and cash equivalents       $16,808     $23,211             
Investment securities           112,299      122,985              
Gross loans                     293,841      285,143              
Allowance for loan losses       4,904        4,736                
Earning assets                  413,150      421,755              
Total assets                    447,703      459,132              
Deposits                        377,007      384,343              
FHLB debt                       5,000        5,100                
Repurchase agreements           10,437       14,092               
Stockholders' equity, net of    52,779       52,824               
noncontrolling interest
Non-performing assets:                                            
Nonaccrual loans               4,679        7,578                
Accruing loans past due 90     483          289                  
days
Foreclosed real estate         364          295                  
Troubled debt restructurings   1,491        221                  
on accrual status
Regulatory capital ratios (Bank                                   
only):
Tier I - adjusted total assets 10.76%        10.00%                
Tier I - risk based            14.84%        14.35%                
Total risk-based               16.09%        15.60%                

CONTACT: Chris Frederick
         Chief Financial Officer and Executive Vice President
         812-734-3464