Business
First Capital, Inc. Reports Record Earnings for 2019
CORYDON, Ind., Jan. 23, 2020 (GLOBE NEWSWIRE) -- First Capital, Inc. (the “Company”) (NASDAQ: FCAP), the holding company for First Harrison Bank (the “Bank”),
About this update from First Capital, Inc.
[{"type":"text","content":"CORYDON, Ind., Jan. 23, 2020 (GLOBE NEWSWIRE) -- First Capital, Inc. (the “Company”) (NASDAQ: FCAP), the holding company for First Harrison Bank (the “Bank”), today reported net income of $10.3 million, or $3.09 per diluted share, for the year ended December 31, 2019, compared to net income $9.3 million, or $2.77 per diluted share, for the year ended December 31, 2018. The increase in net income is primarily due to increases in net interest income after provision for loan losses and noninterest income partially offset by an increase in noninterest expense.\n Net interest income after provision for loan losses increased $2.6 million for 2019 as compared to 2018. Interest income increased $3.2 million when comparing the two periods due to increases in the average balance of interest-earning assets from $730.5 million for 2018 to $760.8 million for 2019 and the average tax-equivalent yield of interest-earning assets from 4.01% for 2018 to 4.27% for 2019. The increase in the average tax-equivalent yield for 2019 compared to 2018 is primarily due to growth in the loan portfolio, which carries a higher yield than investment securities. Interest expense increased $349,000 when comparing the periods as the average cost of interest-bearing liabilities increased from 0.29% to 0.35% and the average balance of interest-bearing liabilities increased from $552.2 million for 2018 to $567.6 million for 2019. As a result of the changes in interest-earning assets and interest-bearing liabilities, the interest rate spread increased from 3.72% for 2018 to 3.92% for 2019. Based on management’s analysis of the allowance for loan losses and due primarily to growth in the loan portfolio, the provision for loan losses increased from $1.2 million for 2018 to $1.4 million for 2019. The Bank recognized net charge-offs of $737,000 for 2018 compared to $429,000 for 2019. Noninterest income increased $758,000 for 2019 as compared to 2018 primarily due to increases in ATM and debit card fees and unrealized gains on equity securities of $248,000 and $239,000, respectively. There was also a loss on a tax credit investment of $270,000 recorded in 2018. Those changes were partially offset by an $89,000 decrease in service charges on customer accounts. Noninterest expenses increased $1.7 million for 2019 compared to 2018 primarily due to increases in compensation a...