CORYDON, Ind., Jan. 25, 2007 (PRIME NEWSWIRE) -- First Capital, Inc. (Nasdaq:FCAP), the holding company for First Harrison Bank (the "Bank"), today reported net income of $3.7 million or $1.30 per diluted share for the year ended December 31, 2006, compared to $3.7 million or $1.29 per diluted share for the year ended December 31, 2005. The earnings per share figure for 2005 has been adjusted to account for the stock dividend declared on June 19, 2006.
Net interest income after provision for loan losses decreased $93,000 for the year ended December 31, 2006 as compared to the year ended December 31, 2005. Interest income increased $2.6 million when comparing the two periods as the average tax-equivalent yield of interest-earning assets increased from 5.95% during the year ended December 31, 2005 to 6.38% for 2006. The average balance of interest-earning assets increased from $403.5 million in 2005 to $417.9 million in 2006. Interest expense increased $2.4 million as the average cost of interest-bearing liabilities increased from 2.93% to 3.48% when comparing the same two periods. The average balance of those liabilities increased from $353.6 million in 2005 to $365.8 in 2006. The provision for loan losses increased $247,000 to $810,000 for the year ended December 31, 2006.
Non interest income increased $469,000 for the year ended December 31, 2006 as compared to the year ended December 31, 2005. Service charges on deposit accounts increased $254,000 while gains on the sale of mortgage loans and other income increased $184,000 and $129,000, respectively, when comparing the two periods.
Noninterest expenses increased $398,000 during 2006 compared to the year ended December 31, 2005. An increase in compensation and benefits represented $283,000 of the additional expenses, primarily due to normal salary increases and an increase in the cost of employee insurance. Other operating expenses increased $95,000 during the year ended December 31, 2006 as compared to the year ended December 31, 2005 primarily due to losses on the sale of foreclosed assets and other expenses associated with those assets.
For the quarter ended December 31, 2006, the Company earned $986,000 or $0.35 per diluted share compared to $985,000 or $0.35 per diluted share for the same period in 2005. The earnings per share figure for 2005 has been adjusted to account for the stock dividend declared on June 19, 2006.
Net interest income after provision for loan loss decreased $226,000 during the quarter ended December 31, 2006 as compared to the quarter ended December 31, 2005. Interest income increased $663,000 when comparing the two periods, due to an increase in the average tax-equivalent yield on interest earning assets from 6.12% during the fourth quarter of 2005 to 6.50% during the same period of 2006. Interest expense increased $764,000 as the average cost of interest-bearing liabilities increased from 3.08% to 3.77% when comparing the two periods. The provision for loan losses increased $125,000 when comparing the two periods.
Noninterest income increased $361,000 when comparing the quarter ended December 31, 2006 to the quarter ended December 31, 2005, primarily due to increases in other income and gains on the sale of mortgage loans of $147,000 and $145,000, respectively.
Noninterest expenses increased $141,000 when comparing the quarter ended December 31, 2006 to the quarter ended December 31, 2005, primarily due to increases of $55,000 in compensation and benefits expense and $38,000 in other operating expenses. The increase in other operating expenses is primarily due to losses and expenses on foreclosed assets.
Total assets as of December 31, 2006 were $457.1 million compared to $438.4 million at December 31, 2005. Net loans receivable and cash and cash equivalents increased $11.1 million and $9.8 million, respectively. The primary funding for this growth was provided by increases in deposits and retail repurchase agreements of $13.9 million and $8.5 million, respectively.
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 has received regulatory approval to open a new office in Salem, Indiana. Construction is expected to begin on or around April 1, 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 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)
(Dollars in thousands,
except per share data)
Twelve Months Ended Three Months Ended
December 31, December 31,
OPERATING DATA 2006 2005 2006 2005
---- ---- ---- ----
Total interest
income $26,211 $23,659 $ 6,791 $ 6,128
Total interest
expense 12,741 10,343 3,504 2,740
--------------------- ---------------------
Net interest
income 13,470 13,316 3,287 3,388
Provision for
loan losses 810 563 225 100
--------------------- ---------------------
Net interest
income after
provision for
loan losses 12,660 12,753 3,062 3,288
Total
non-interest
income 3,430 2,961 1,054 693
Total
non-interest
expense 10,510 10,112 2,605 2,464
--------------------- ---------------------
Income before
income taxes 5,580 5,602 1,511 1,517
Income tax
expense 1,872 1,914 525 532
--------------------- ---------------------
Net income $ 3,708 $ 3,688 $ 986 $ 985
===================== =====================
Net income per
common share,
basic $ 1.31 $ 1.31 $ 0.35 $ 0.35
===================== =====================
Weighted average
common shares
outstanding -
basic 2,823,372 2,821,772 2,824,424 2,820,147
Net income per
common share,
diluted $ 1.30 $ 1.29 $ 0.35 $ 0.35
======================= =======================
Weighted average
common shares
outstanding -
diluted 2,848,229 2,848,640 2,850,449 2,842,689
OTHER FINANCIAL DATA
Cash dividends
per share $ 0.68 $ 0.62 $ 0.17 $ 0.16
Return on average
assets (three
month data,
annualized) 0.84% 0.86% 0.88% 0.91%
Return on average
equity (three
month data,
annualized) 8.64% 8.91% 9.01% 9.40%
Net interest
margin 3.34% 3.39% 3.20% 3.42%
Net overhead
expense as a
percentage of
average assets
(three month
data, annualized) 2.37% 2.35% 2.33% 2.27%
BALANCE SHEET December 31,
INFORMATION 2006 2005
---- ----
Cash and cash
equivalents $ 24,468 $14,673
Investment
securities 72,480 76,915
Gross loans 335,895 324,557
Allowance for
loan losses 2,320 2,104
Earning assets 422,347 405,162
Total assets 457,105 438,354
Deposits 331,143 317,264
FHLB debt 59,461 65,947
Repurchase
agreements 19,228 10,704
Stockholders'
equity 44,089 41,957
Non-performing
assets:
Nonaccrual loans 3,245 1,906
Foreclosed real
estate 941 749