Back to GetFilings.com



Table of Contents

UNITED STATES

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, 2005

 

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 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

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 2,598,333 shares of common stock were outstanding as of April 29, 2005.

 

Table of Contents

FIRST CAPITAL, INC.

 

INDEX

 

          Page
Part I    Financial Information     
    

Item 1. Consolidated Financial Statements

    
    

Consolidated Balance Sheets as of March 31, 2005 and December 31, 2004 (unaudited)

   3
    

Consolidated Statements of Income for the three months ended March 31, 2005 and 2004 (unaudited)

   4
    

Consolidated Statements of Cash Flows for the three months ended March 31, 2005 and 2004 (unaudited)

   5
    

Notes to consolidated financial statements (unaudited)

   6-8
    

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

   9-12
    

Item 3. Quantitative and Qualitative Disclosures About Market Risk

   13
    

Item 4. Controls and Procedures

   13
Part II    Other Information     
    

Item 1. Legal Proceedings

   14
    

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

   14
    

Item 3. Defaults Upon Senior Securities

   14
    

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

   15
    

Item 5. Other Information

   15
    

Item 6. Exhibits

   15-16
Signatures    17

 

2

Table of Contents

PART I - FINANCIAL INFORMATION

FIRST CAPITAL, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

     March 31,
2005
     December 31,
2004
  
     (In thousands)  

ASSETS

                 

Cash and due from banks

    $ 15,078     $ 14,191  

Interest bearing deposits with banks

      11,993       2,175  

Fed funds sold

      1,203       1,059  
    
 

Total cash and cash equivalents

      28,274       17,425  

Securities available for sale, at fair value

      68,466       65,192  

Securities-held to maturity

      1,231       1,258  

Loans, net

      313,199       317,086  

Loans held for sale

      841       510  

Federal Home Loan Bank stock, at cost

      3,707       3,668  

Foreclosed real estate

      868       442  

Premises and equipment

      9,752       9,896  

Accrued interest receivable

      2,068       2,104  

Cash value of life insurance

      1,278       1,269  

Goodwill

      5,386       5,386  

Core deposit intangibles

      517       536  

Other assets

      1,046       530  
    
 

Total Assets

    $ 436,633     $ 425,302  
    
 

LIABILITIES

                 

Deposits:

                 

Noninterest-bearing

    $ 34,753     $ 33,801  

Interest-bearing

      286,566       282,661  
    
 

Total Deposits

      321,319       316,462  

Retail repurchase agreements

      8,583       635  

Advances from Federal Home Loan Bank

      63,399       65,099  

Accrued interest payable

      1,238       1,286  

Accrued expenses and other liabilities

      1,490       1,106  
    
 

Total Liabilities

      396,029       384,588  
    
 

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 2,848,107 shares (2,846,457 shares in 2004)

      28       28  

Additional paid-in capital

      19,315       19,278  

Retained earnings-substantially restricted

      27,360       26,888  

Unearned ESOP shares

      (307 )     (328 )

Unearned stock compensation

      (3 )     (3 )

Accumulated other comprehensive income

      (610 )     29  

Less treasury stock, at cost - 249,774 shares (249,742 shares in 2004)

      (5,179 )     (5,178 )
    
 

Total Stockholders’ Equity

      40,604       40,714  
    
 

Total Liabilities and Stockholders’ Equity

    $ 436,633     $ 425,302  
    
 

 

See accompanying notes to consolidated financial statements.

 

3

Table of Contents

PART I - FINANCIAL INFORMATION

FIRST CAPITAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

     Three Months Ended
March 31,
     2005
     2004
     (In thousands, except
per share data)

INTEREST INCOME

               

Loans, including fees

    $ 4,888     $ 4,741

Securities:

               

Taxable

      488       501

Tax-exempt

      158       144

Federal Home Loan Bank dividends

      39       39

Fed funds sold and interest bearing deposits with banks

      47       14
    
 

Total interest income

      5,620       5,439
    
 

INTEREST EXPENSE

               

Deposits

      1,597       1,430

Retail repurchase agreements

      16       —  

Advances from Federal Home Loan Bank

      788       796
    
 

Total interest expense

      2,401       2,226
    
 

Net interest income

      3,219       3,213

Provision for loan losses

      150       125
    
 

Net interest income after provision for loan losses

      3,069       3,088
    
 

NONINTEREST INCOME

               

Service charges on deposit accounts

      509       433

Commission income

      129       99

Gain on sale of mortgage loans

      87       —  

Mortgage brokerage fees

      42       38

Other income

      19       18
    
 

Total noninterest income

      786       588
    
 

NONINTEREST EXPENSE

               

Compensation and benefits

      1,511       1,424

Occupancy and equipment

      269       254

Data processing

      199       202

Professional fees

      85       95

Advertising

      65       53

Other operating expenses

      462       411
    
 

Total noninterest expense

      2,591       2,439
    
 

Income before income taxes

      1,264       1,237

Income tax expense

      408       404
    
 

Net Income

      856       833

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

               

Unrealized gain (loss) on securities:

               

Unrealized holding gains (losses) arising during the period

      (639 )     204

Less: reclassification adjustment

      —         —  
    
 

Other comprehensive income (loss)

      (639 )     204
    
 

Comprehensive Income

    $ 217     $ 1,037
    
 

Net income per common share, basic

    $ 0.33     $ 0.30
    
 

Net income per common share, diluted

    $ 0.33     $ 0.30
    
 

 

See accompanying notes to consolidated financial statements.

 

4

Table of Contents

PART I - FINANCIAL INFORMATION

FIRST CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     Three Months Ended
March 31,
  
     2005
     2004
  
     (In thousands)  

CASH FLOWS FROM OPERATING ACTIVITIES

         

Net income

    $ 856     $ 833  

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

                 

Amortization of premiums and accretion of discounts

      44       63  

Depreciation and amortization expense

      206       191  

Deferred income taxes

      187       35  

ESOP and stock compensation expense

      41       41  

Increase in cash value of life insurance

      (10 )     (11 )

Provision for loan losses

      150       125  

Proceeds from sales of mortgage loans

      6,546       —    

Mortgage loans originated for sale

      (6,790 )     —    

Net gain on sale of mortgage loans

      (87 )     —    

Stock dividends on Federal Home Loan Bank stock

      (39 )     (39 )

Decrease in accrued interest receivable

      36       159  

Decrease in accrued interest payable

      (48 )     —    

Net change in other assets/liabilities

      62       646  
    
 

Net Cash Provided By Operating Activities

      1,154       2,043  
    
 

CASH FLOWS FROM INVESTING ACTIVITIES

                 

Purchase of securities available for sale

      (6,964 )     (3,603 )

Proceeds from maturities of securities available for sale

      1,615       5,070  

Proceeds from maturities of securities held to maturity

      12       154  

Principal collected on mortgage-backed securities

      1,028       1,045  

Net decrease (increase) in loans receivable

      3,227       (7,874 )

Purchase of Federal Home Loan Bank stock

      —         (118 )

Proceeds from sale of foreclosed real estate

      84       32  

Purchase of premises and equipment

      (43 )     (104 )
    
 

Net Cash Used In Investing Activities

      (1,041 )     (5,398 )
    
 

CASH FLOWS FROM FINANCING ACTIVITIES

                 

Net increase in deposits

      4,857       3,292  

Net increase (decrease) in advances from Federal Home Loan Bank

      (1,700 )     1,320  

Net increase (decrease) in retail repurchase agreements

      7,948       (307 )

Exercise of stock options

      17       1  

Purchase of treasury stock

      (1 )     (148 )

Dividends paid

      (385 )     (417 )