First Capital, Inc. Reports Quarterly Earnings Increase

First Capital, Inc. Reports Quarterly Earnings Increase

CORYDON, Ind., April 25, 2014 (GLOBE NEWSWIRE) -- First Capital, Inc.
(Nasdaq:FCAP) (the "Company"), the holding company for First Harrison Bank
(the "Bank"), today reported net income of $1.3 million or $0.47 per diluted
share for the quarter ended March 31, 2014, compared to $1.2 million or $0.43
per diluted share for the quarter ended March 31, 2013. The increase in net
income is primarily due to an increase in net interest income after provision
for loan losses.

Net interest income after provision for loan losses increased $311,000 for the
quarter ended March 31, 2014 as compared to the same prior year period.
Interest income decreased $74,000 when comparing the periods as the average
tax-equivalent yield on interest-earning assets decreased from 4.48% for the
three-month period ended March 31, 2013 to 4.44% for the same period in 2014
and the average balance of interest-earning assets decreased from $422.4
million to $420.3 million when comparing the same two periods.The decrease in
the average balance was primarily due to decreases in investment securities
and federal funds sold partially offset by an increase in loans
receivable.Interest expense decreased $160,000 when comparing the periods as
the average cost of interest-bearing liabilities decreased from 0.53% to 0.36%
and the average balance of interest-bearing liabilities decreased from $343.8
million to $335.6 million, primarily due to a decrease in time deposits
partially offset by increases in the average balance of savings accounts and
interest-bearing demand deposits. As a result, the interest-rate spread
increased from 3.95% for the quarter ended March 31, 2013 to 4.08% for the
same period in 2014.The provision for loan losses decreased from $250,000 for
the quarter ended March 31, 2013 to $25,000 for the quarter ended March 31,
2014 primarily due to a decrease in net charge-offs from $194,000 during the
quarter ended March 31, 2013 to a net recovery of $65,000 during the same
period in 2014.

Noninterest income decreased $183,000 for the three months ended March 31,
2014 as compared to the same period in 2013.Gains on the sale of loans and
commission income decreased $116,000 and $41,000, respectively, when comparing
the two periods.The decrease in the gains on the sale of loans is primarily
due to the overall slowdown in mortgage activity in the Bank's primary lending
market.

Noninterest expense decreased $23,000 for the three months ended March 31,
2014 as compared to the three months ended March 31, 2013, due primarily to a
decrease in other operating expenses partially offset by an increase in
compensation and benefits expense.Other operating expenses decreased $129,000
primarily due to reductions in costs associated with the maintenance and
disposal of other real estate owned and losses on ATM and debit cards.During
the quarter ended March 31, 2013, the card processing system of a local
business was compromised.The Bank reimbursed all of its customers for any
fraudulent charges as a result of the breach, which resulted in losses
totaling $54,000 during the quarter.Compensation and benefits expense
increased $84,000 for the three months ended March 31, 2014 as compared to the
same period in 2013 primarily due to normal increases in salaries and employee
benefits.

Total assets increased $4.5 million to $448.9 million at March 31, 2014
compared to $444.4 million at December 31, 2013.Total assets increased
primarily due to an increase of $7.8 million in cash and cash
equivalents.This increase was partially offset by decreases of $1.3 million
and $1.1 million in net loans receivable and loans held for sale,
respectively.Deposits increased $9.3 million to $383.1 million at March 31,
2014 which was partially offset by the repayment of $5.5 million of advances
from the Federal Home Loan Bank during the quarter ended March 31,
2014.Nonperforming assets (consisting of nonaccrual loans, accruing loans 90
days or more past due, troubled debt restructurings on accrual status, and
foreclosed real estate) decreased from $7.6 million at December 31, 2013 to
$7.0 million at March 31, 2014.

At March 31, 2014, 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 Investment Centers of America, 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)
                                                                
                                                       Three Months Ended
                                                        March 31,
OPERATING DATA                                          2014      2013
(Dollars in thousands, except per share data)                    
                                                                
Total interest income                                   $4,502  $4,576
Total interest expense                                  298      458
Net interest income                                     4,204    4,118
Provision for loan losses                               25       250
Net interest income after provision for loan losses    4,179    3,868
                                                                
Total non-interest income                               979      1,162
Total non-interest expense                              3,299    3,322
Income before income taxes                              1,859    1,708
Income tax expense                                      559      511
Net income                                              1,300    1,197
Less net income attributable to the noncontrolling      3        3
interest
Net income attributable to First Capital, Inc.          $1,297  $1,194
                                                                
Net income per share attributable to First Capital,              
Inc.common shareholders:
Basic                                                   $0.47   $0.43
                                                                
Diluted                                                 $0.47   $0.43
                                                                
Weighted average common shares outstanding:                      
Basic                                                   2,784,088 2,784,997
                                                                
Diluted                                                 2,784,088 2,784,997
                                                                
OTHER FINANCIAL DATA                                             
                                                                
Cash dividends per share                                $0.21   $0.20
Return on average assets (annualized)                   1.16%     1.05%
Return on average equity (annualized)                   9.60%     8.99%
Net interest margin                                     4.15%     4.04%
Interest rate spread                                    4.08%     3.95%
Net overhead expense as a percentage of average assets  2.94%     2.92%
(annualized)
                                                                
BALANCE SHEET INFORMATION                               March 31, December 31,
                                                        2014      2013
(Dollars in thousands)                                           
                                                                
Cash and cash equivalents                               $18,888 $11,136
Interest-bearing time deposits                          4,425    4,425
Investment securities                                   108,601  108,771
Gross loans                                             292,235  293,428
Allowance for loan losses                               5,011    4,922
Earning assets                                          414,156  407,211
Total assets                                            448,887  444,384
Deposits                                                383,088  373,830
FHLB debt                                               0        5,500
Repurchase agreements                                   8,832    9,310
Stockholders' equity, net of noncontrolling interest    54,528   53,227
Non-performing assets:                                           
Nonaccrual loans                                        4,747    5,256
Accruing loans past due 90 days                         182      227
Foreclosed real estate                                  249      466
Troubled debt restructurings on accrual status          1,836    1,662
Regulatory capital ratios (Bank only):                           
Tier I - adjusted total assets                          10.94%    10.89%
Tier I - risk based                                     15.30%    14.86%
Total risk-based                                        16.55%    16.11%

CONTACT: Chris Frederick
         Chief Financial Officer
         812-734-3464
 
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