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 September 30, 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 | (I.R.S. Employer | |
| incorporation or organization) | Identification Number) |
220 Federal Drive NW, Corydon, Indiana 47112
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code 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 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
The Registrant had 2,816,109 shares of common stock, par value $0.01 per share, outstanding as of October 28, 2004.
INDEX
| Page | ||||||
| Part I |
Financial Information | |||||
| Item 1. | Consolidated Financial Statements | |||||
| Consolidated Balance Sheets as of September 30, 2004 and December 31, 2003 (unaudited) |
3 | |||||
| 4 | ||||||
| 5 | ||||||
| 6 | ||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 10 | ||||
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 15 | ||||
| Item 4. | Controls and Procedures | 17 | ||||
| Part II |
Other Information | |||||
| Item 1. |
Legal Proceedings | 18 | ||||
| Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds | 18 | ||||
| Item 3. |
Defaults Upon Senior Securities | 19 | ||||
| Item 4. |
Submission of Matters to a Vote of Security Holders | 19 | ||||
| Item 5. |
Other Information | 19 | ||||
| Item 6. |
Exhibits | 19 | ||||
| 21 | ||||||
| Exhibits |
||||||
- 2 -
PART I - FINANCIAL INFORMATION
FIRST CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 30, 2004 |
December 31, 2003 |
|||||||
| (In thousands) | ||||||||
| ASSETS |
||||||||
| Cash and due from banks |
$ | 13,244 | $ | 12,190 | ||||
| Interest bearing deposits with banks |
2,849 | 1,371 | ||||||
| Securities available for sale, at fair value |
61,978 | 66,244 | ||||||
| Securities-held to maturity |
1,264 | 1,507 | ||||||
| Loans held for sale |
574 | — | ||||||
| Loans, net |
320,197 | 304,200 | ||||||
| Federal Home Loan Bank stock, at cost |
3,630 | 3,094 | ||||||
| Foreclosed real estate |
706 | 225 | ||||||
| Premises and equipment |
10,070 | 10,291 | ||||||
| Accrued interest receivable: |
||||||||
| Loans |
1,437 | 1,407 | ||||||
| Securities |
560 | 767 | ||||||
| Cash value of life insurance |
1,259 | 1,228 | ||||||
| Goodwill |
5,386 | 5,386 | ||||||
| Core deposit intangibles |
554 | 609 | ||||||
| Other assets |
526 | 619 | ||||||
| Total Assets |
$ | 424,234 | $ | 409,138 | ||||
| LIABILITIES |
||||||||
| Deposits: |
||||||||
| Noninterest-bearing |
$ | 34,162 | $ | 30,535 | ||||
| Interest-bearing |
277,893 | 271,933 | ||||||
| Total Deposits |
312,055 | 302,468 | ||||||
| Retail repurchase agreements |
295 | 520 | ||||||
| Advances from Federal Home Loan Bank |
64,249 | 60,242 | ||||||
| Accrued interest payable |
1,173 | 1,160 | ||||||
| Accrued expenses and other liabilities |
1,497 | 853 | ||||||
| Total Liabilities |
379,269 | 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 2,845,331 shares (2,843,763 shares in 2003) |
28 | 28 | ||||||
| Additional paid-in capital |
19,249 | 19,183 | ||||||
| Retained earnings-substantially restricted |
26,392 | 25,092 | ||||||
| Unearned ESOP shares |
(348 | ) | (400 | ) | ||||
| Unearned stock compensation |
(21 | ) | (73 | ) | ||||
| Accumulated other comprehensive income |
212 | 380 | ||||||
| Less treasury stock, at cost - 29,194 shares (18,639 shares - 2003) |
(547 | ) | (315 | ) | ||||
| Total Stockholders’ Equity |
44,965 | 43,895 | ||||||
| Total Liabilities and Stockholders’ Equity |
$ | 424,234 | $ | 409,138 | ||||
See accompanying notes to consolidated financial statements.
- 3 -
PART I - FINANCIAL INFORMATION
FIRST CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| INTEREST INCOME |
|||||||||||||||
| Loans receivable, including fees |
$ | 4,845 | $ | 4,746 | $ | 14,331 | $ | 13,509 | |||||||
| Securities: |
|||||||||||||||
| Taxable |
486 | 548 | 1,462 | 1,706 | |||||||||||
| Tax-exempt |
152 | 141 | 443 | 394 | |||||||||||
| Federal Home Loan Bank dividends |
38 | 37 | 110 | 112 | |||||||||||
| Interest bearing deposits with banks |
9 | 34 | 41 | 131 | |||||||||||
| Total interest income |
5,530 | 5,506 | 16,387 | 15,852 | |||||||||||
| INTEREST EXPENSE |
|||||||||||||||
| Deposits |
1,482 | 1,460 | 4,340 | 4,299 | |||||||||||
| Retail repurchase agreements |
1 | — | 2 | 1 | |||||||||||
| Advances from Federal Home Loan Bank |
807 | 729 | 2,407 | 2,202 | |||||||||||
| Total interest expense |
2,290 | 2,189 | 6,749 | 6,502 | |||||||||||
| Net interest income |
3,240 | 3,317 | 9,638 | 9,350 | |||||||||||
| Provision for loan losses |
100 | 275 | 345 | 600 | |||||||||||
| Net interest income after provision for loan losses |
3,140 | 3,042 | 9,293 | 8,750 | |||||||||||
| NON-INTEREST INCOME |
|||||||||||||||
| Service charges on deposit accounts |
498 | 471 | 1,427 | 1,319 | |||||||||||
| Commission income |
58 | 63 | 241 | 208 | |||||||||||
| Gain on sale of securities |
— | — | — | 51 | |||||||||||
| Gain on sale of mortgage loans |
60 | — | 97 | 14 | |||||||||||
| Mortgage brokerage fees |
33 | 38 | 103 | 38 | |||||||||||
| Other income |
30 | 13 | 107 | 59 | |||||||||||
| Total non-interest income |
679 | 585 | 1,975 | 1,689 | |||||||||||
| NON-INTEREST EXPENSE |
|||||||||||||||
| Compensation and benefits |
1,444 | 1,228 | 4,288 | 3,475 | |||||||||||
| Occupancy and equipment |
264 | 280 | 775 | 730 | |||||||||||
| Data processing |
201 | 189 | 582 | 566 | |||||||||||
| Other operating expenses |
611 | 560 | 1,763 | 1,670 | |||||||||||
| Total non-interest expense |
2,520 | 2,257 | 7,408 | 6,441 | |||||||||||
| Income before income taxes |
1,299 | 1,370 | 3,860 | 3,998 | |||||||||||
| Income tax expense |
443 | 484 | 1,310 | 1,391 | |||||||||||
| Net Income |
$ | 856 | $ | 886 | $ | 2,550 | $ | 2,607 | |||||||
| OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX |
|||||||||||||||
| Unrealized gain (loss) on securities: |
|||||||||||||||
| Unrealized holding gains (losses) arising during the period |
650 | (674 | ) | (169 | ) | (561 | ) | ||||||||
| Less: reclassification adjustment |
— | — | — | (31 | ) | ||||||||||
| Other comprehensive income (loss) |
650 | (674 | ) | (169 | ) | (592 | ) | ||||||||
| Comprehensive Income |
$ | 1,506 | $ | 212 | $ | 2,381 | $ | 2,015 | |||||||
| Net income per common share, basic |
$ | 0.31 | $ | 0.32 | $ | 0.92 | $ | 0.97 | |||||||
| Net income per common share, diluted |
$ | 0.30 | $ | 0.32 | $ | 0.91 | $ | 0.96 | |||||||
See accompanying notes to consolidated financial statements.
- 4 -
PART I - FINANCIAL INFORMATION