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SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 10-Q

 

 

(Mark One)

x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

  For the quarterly period ended MARCH 31, 2003

 

OR

 

¨   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

  For the transition period from              to             

 

Commission File No. 0-25023

 

 

First Capital, Inc.

(Exact name of registrant as specified in its charter)

 

 

Indiana

  

35-2056949

(State or other jurisdiction of
incorporation or organization)

  

(I.R.S. Employer
Identification Number)

 

220 Federal Drive NW, Corydon, Indiana 47112

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code 1-812-738-2198

 

Not applicable

Former name, former address and former fiscal year, if changed since last report

 

 

Indicate by check mark whether the registrant (1) has filed all required reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    NO  ¨             

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    NO  x

 

APPLICABLE ONLY TO CORPORATE ISSUERS; Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 2,825,519 shares of common stock were outstanding as of April 30, 2003.

 

Table of Contents

 

FIRST CAPITAL, INC.

 

INDEX

 

         

Page

Part I

   

Financial Information

     
    

Item 1. Consolidated Financial Statements

     
    

     Consolidated Balance Sheets as of March 31, 2003 and December 31, 2002 (unaudited)

   

3

    

     Consolidated Statements of Income for the three months ended March 31, 2003 and 2002 (unaudited)

   

4

    

     Consolidated Statements of Cash Flows for the three months ended March 31, 2003 and 2002 (unaudited)

  

5

    

     Notes to consolidated financial statements (unaudited)

   

6-9

    

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

  

10-13

    

Item 3. Quantitative and Qualitative Disclosures About Market Risk

  

14

    

Item 4. Controls and Procedures

  

14

Part II

   

Other Information

     
    

Item 1. Legal Proceedings

  

15

    

Item 2. Changes in Securities and Use of Proceeds

  

15

    

Item 3. Defaults Upon Senior Securities

  

15

    

Item 4. Submission of Matters to a Vote of Security Holders

  

15

    

Item 5. Other Information

  

16

    

Item 6. Exhibits and Reports of Form 8-K

  

16

Signatures

  

17

Certifications

  

18-19

 

2

Table of Contents

 

PART I—FINANCIAL INFORMATION

 

FIRST CAPITAL, INC. AND SUBSIDIARY

 

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

    

March 31,
2003

     

December 31,
2002

  
    

(In thousands)

  

ASSETS

                  

Cash and due from banks

   

$

8,051

 

   

$

6,610

 

Interest bearing deposits with banks

   

 

16,943

 

   

 

6,044

 

Securities available for sale, at fair value

   

 

66,466

 

   

 

64,980

 

Securities—held to maturity

   

 

1,568

 

   

 

1,474

 

Loans receivable, net

   

 

280,629

 

   

 

215,996

 

Federal Home Loan Bank stock, at cost

   

 

2,980

 

   

 

2,716

 

Foreclosed real estate

   

 

363

 

   

 

102

 

Premises and equipment

   

 

10,207

 

   

 

7,001

 

Accrued interest receivable:

                  

Loans

   

 

1,316

 

   

 

956

 

Securities

   

 

671

 

   

 

839

 

Cash value of life insurance

   

 

1,280

 

   

 

1,267

 

Goodwill

   

 

5,307

 

   

 

—  

 

Core deposit intangibles

   

 

663

 

   

 

102

 

Other assets

   

 

465

 

   

 

466

 

    
  

Total Assets

   

$

396,909

 

   

$

308,553

 

    
  

LIABILITIES

                  

Deposits:

                  

Noninterest—bearing

   

$

26,026

 

   

$

20,052

 

Interest—bearing

   

 

271,281

 

   

 

196,150

 

    
  

Total Deposits

   

 

297,307

 

   

 

216,202

 

Retail repurchase agreements

   

 

192

 

   

 

457

 

Advances from Federal Home Loan Bank

   

 

54,595

 

   

 

53,320

 

Accrued interest payable

   

 

1,245

 

   

 

1,128

 

Accrued expenses and other liabilities

   

 

957

 

   

 

1,116

 

    
  

Total Liabilities

   

 

354,296

 

   

 

272,223

 

    
  

STOCKHOLDERS' EQUITY

                  

Preferred stock of $.01 par value per share Authorized 1,000,000 shares; none issued

   

 

—  

 

   

 

—  

 

Common stock of $.01 par value per share Authorized 5,000,000 shares; issued 2,840,129 shares (2,551,763 shares in 2002)

   

 

28

 

   

 

26

 

Additional paid-in capital

   

 

19,142

 

   

 

12,955

 

Retained earnings—substantially restricted

   

 

23,471

 

   

 

23,079

 

Unearned ESOP shares

   

 

(430

)

   

 

(441

)

Unearned stock compensation

   

 

(126

)

   

 

(143

)

Accumulated other comprehensive income

   

 

791

 

   

 

971

 

Less treasury stock, at cost—15,952 shares (8,980 shares in 2002)

   

 

(263

)

   

 

(117

)

    
  

Total Stockholders’ Equity

   

 

42,613

 

   

 

36,330

 

    
  

Total Liabilities and Stockholders’ Equity

   

$

396,909

 

   

$

308,553

 

    
  

 

3

Table of Contents

 

PART I—FINANCIAL INFORMATION

 

FIRST CAPITAL, INC. AND SUBSIDIARY

 

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

    

Three Months Ended
March 31,

  
    

2003

     

2002

  
    

(In thousands, except per share data)

  

INTEREST INCOME

                  

Loans receivable, including fees

   

$

3,916

 

   

$

3,836

 

Securities

                  

Taxable

   

 

588

 

   

 

659

 

Tax-exempt

   

 

125

 

   

 

93

 

Federal Home Loan Bank dividends

   

 

37

 

   

 

33

 

Interest bearing deposits with banks

   

 

42

 

   

 

56

 

    
  

Total interest income

   

 

4,708

 

   

 

4,677

 

    
  

INTEREST EXPENSE

                  

Deposits

   

 

1,327

 

   

 

1,584

 

Advances from Federal Home Loan Bank

   

 

735

 

   

 

641

 

    
  

Total interest expense

   

 

2,062

 

   

 

2,225

 

    
  

Net interest income

   

 

2,646

 

   

 

2,452

 

Provision for loan losses

   

 

150

 

   

 

45

 

    
  

Net interest income after provision for loan losses

   

 

2,496

 

   

 

2,407

 

    
  

NON-INTEREST INCOME

                  

Service charges on deposit accounts

   

 

370

 

   

 

311

 

Commission income

   

 

60

 

   

 

66

 

Gain on sale of securities

   

 

51

 

   

 

—  

 

Other income

   

 

28

 

   

 

19

 

    
  

Total non-interest income

   

 

509

 

   

 

396

 

    
  

NON-INTEREST EXPENSE

                  

Compensation and benefits

   

 

1,024

 

   

 

877

 

Occupancy and equipment

   

 

194

 

   

 

179

 

Data processing

   

 

197

 

   

 

110

 

Other operating expenses

   

 

503

 

   

 

432

 

    
  

Total non-interest expense

   

 

1,918

 

   

 

1,598

 

    
  

Income before income taxes

   

 

1,087

 

   

 

1,205

 

Income tax expense

   

 

366

 

   

 

412

 

    
  

Net Income

   

 

721

 

   

 

793

 

OTHER COMPREHENSIVE LOSS, NET OF TAX

                  

Unrealized loss on securities:

                  

Unrealized holding losses arising during the period

   

 

(149

)

   

 

(303

)

Less: reclassification adjustment

   

 

(31

)

   

 

—  

 

    
  

Other comprehensive loss

   

 

(180

)

   

 

(303

)

    
  

Comprehensive Income

   

$

541

 

   

$

490

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