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Table of Contents

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, 2004

 

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: 2,818,579 shares of common stock were outstanding as of April 30, 2004.

 

Table of Contents

FIRST CAPITAL, INC.

 

INDEX

 

          Page

Part I

    Financial Information     
     Item 1. Consolidated Financial Statements     
          Consolidated Balance Sheets as of March 31, 2004 and December 31, 2003 (unaudited)    3
          Consolidated Statements of Income for the three months ended March 31, 2004 and 2003 (unaudited)    4
          Consolidated Statements of Cash Flows for the three months ended March 31, 2004 and 2003 (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, Use of Proceeds and Issuer Purchases of Equity Securities    15
     Item 3. Defaults Upon Senior Securities    15
     Item 4. Submission of Matters to a Vote of Security Holders    16
     Item 5. Other Information    16
     Item 6. Exhibits and Reports on Form 8-K    16-17

Signatures

   18

 

- 2 -

Table of Contents

PART I - FINANCIAL INFORMATION

FIRST CAPITAL, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

     March 31,
2004
     December 31,
2003
  
     (In thousands)  

ASSETS

                 

Cash and due from banks

    $ 8,337     $ 12,190  

Interest bearing deposits with banks

      5,610       1,371  

Securities available for sale, at fair value

      64,026       66,244  

Securities-held to maturity

      1,333       1,507  

Loans, net

      311,755       304,200  

Federal Home Loan Bank stock, at cost

      3,251       3,094  

Foreclosed real estate

      387       225  

Premises and equipment

      10,221       10,291  

Accrued interest receivable:

                 

Loans

      1,425       1,407  

Securities

      590       767  

Cash value of life insurance

      1,239       1,228  

Goodwill

      5,386       5,386  

Core deposit intangibles

      590       609  

Other assets

      428       619  
    
 

Total Assets

    $ 414,578     $ 409,138  
    
 

LIABILITIES

                 

Deposits:

                 

Noninterest-bearing

    $ 30,849     $ 30,535  

Interest-bearing

      274,911       271,933  
    
 

Total Deposits

      305,760       302,468  

Retail repurchase agreements

      213       520  

Advances from Federal Home Loan Bank

      61,562       60,242  

Accrued interest payable

      1,160       1,160  

Accrued expenses and other liabilities

      1,476       853  
    
 

Total Liabilities

      370,171       365,243  
    
 

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 2,843,863 shares (2,843,763 shares in 2003)

      28       28  

Additional paid-in capital

      19,195       19,183  

Retained earnings-substantially restricted

      25,508       25,092  

Unearned ESOP shares

      (389 )     (400 )

Unearned stock compensation

      (56 )     (73 )

Accumulated other comprehensive income

      584       380  

Less treasury stock, at cost - 25,284 shares (18,639 shares in 2003)

      (463 )     (315 )
    
 

Total Stockholders’ Equity

      44,407       43,895  
    
 

Total Liabilities and Stockholders’ Equity

    $ 414,578     $ 409,138  
    
 

 

See accompanying notes to consolidated financial statements.

 

- 3 -

Table of Contents

PART I - FINANCIAL INFORMATION

FIRST CAPITAL, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

   

Three Months Ended

March 31,

  
    2004
   2003
  
   

(In thousands, except

per share data)

  

INTEREST INCOME

              

Loans, including fees

   $ 4,741   $ 3,916  

Securities:

              

Taxable

     501     588  

Tax-exempt

     144     125  

Federal Home Loan Bank dividends

     39     37  

Interest bearing deposits with banks

     14     42  
   
 

Total interest income

     5,439     4,708  
   
 

INTEREST EXPENSE

              

Deposits

     1,430     1,327  

Advances from Federal Home Loan Bank

     796     735  
   
 

Total interest expense

     2,226     2,062  
   
 

Net interest income

     3,213     2,646  

Provision for loan losses

     125     150  
   
 

Net interest income after provision for loan losses

     3,088     2,496  
   
 

NONINTEREST INCOME

              

Service charges on deposit accounts

     433     370  

Commission income

     99     60  

Gain on sale of securities

     —       51  

Mortgage brokerage fees

     38     —    

Other income

     18     28  
   
 

Total noninterest income

     588     509  
   
 

NONINTEREST EXPENSE

              

Compensation and benefits

     1,424     1,029  

Occupancy and equipment

     254     194  

Data processing

     202     197  

Other operating expenses

     559     498  
   
 

Total noninterest expense

     2,439     1,918  
   
 

Income before income taxes

     1,237     1,087  

Income tax expense

     404     366  
   
 

Net Income

     833     721  

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

              

Unrealized gain (loss) on securities:

              

Unrealized holding gains (losses) arising during the period

     204     (149 )

Less: reclassification adjustment

     —       (31 )
   
 

Other comprehensive income (loss)

     204     (180 )
   
 

Comprehensive Income

   $ 1,037   $ 541  
   
 

Net income per common share, basic

   $ 0.30   $ 0.29  
   
 

Net income per common share, diluted

   $ 0.30   $ 0.28  
   
 

See accompanying notes to consolidated financial statements.

 

- 4 -

Table of Contents

PART I - FINANCIAL INFORMATION

FIRST CAPITAL, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     Three Months Ended
March 31,
  
     2004
     2003
  
     (In thousands)  

CASH FLOWS FROM OPERATING ACTIVITIES

                 

Net income

    $ 833     $ 721  

Adjustments to reconcile net income to net cash provided by operating activities:

                 

Amortization of premiums and accretion of discounts

      63       87  

Depreciation and amortization expense

      191       135  

Deferred income taxes

      35       296  

ESOP compensation expense

      23       22  

Stock compensation expense

      18       17  

Increase in cash value of life insurance

      (11 )     (13 )

Provision for loan losses

      125       150  

Net gain on sale of securities available for sale

      —         (51 )

Stock dividends on Federal Home Loan Bank stock

      (39 )     —    

Decrease in accrued interest receivable

      159       137  

Decrease in accrued interest payable

      —         (111 )

Net change in other assets/liabilities

      646       130  
    
 

Net Cash Provided By Operating Activities

      2,043       1,520  
    
 

CASH FLOWS FROM INVESTING ACTIVITIES

                 

Net (increase) decrease in interest bearing deposits with banks

      (4,239 )     7,260  

Purchase of securities available for sale

      (3,603 )     (8,143 )

Proceeds from maturities of securities available for sale

      5,070       6,000  

Proceeds from maturities of securities held to maturity

      154       107  

Proceeds from sale of securities available for sale

      —         2,551  

Principal collected on mortgage-backed securities

      1,045       2,104  

Net increase in loans receivable

      (7,874 )     (663 )

Purchase of Federal Home Loan Bank stock

      (118 )     (64 )

Proceeds from sale of Federal Reserve Bank stock

      —         180  

Proceeds from sale of foreclosed real estate

      32       —    

Purchase of premises and equipment

      (104 )     (689 )

Net cash paid in acquisition of Hometown Bancshares, Inc.

      —         (5,726 )
    
 

Net Cash Provided (Used) By Investing Activities

      (9,637 )     2,917  
    
 

CASH FLOWS FROM FINANCING ACTIVITIES

                 

Net increase (decrease) in deposits

      3,292       (3,568 )

Net increase in advances from Federal Home Loan Bank

      1,320       1,275  

Net decrease in retail repurchase agreements

      (307 )     (265 )

Exercise of stock options

      1       32  

Purchase of treasury stock

      (148 )     (146 )

Dividends paid

      (417 )     (324 )
    
 

Net Cash Provided (Used) By Financing Activities

      3,741       (2,996 )
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