First Capital, Inc. Reports Record Earnings for 2022
First Capital, Inc. (NASDAQ: FCAP) reported a net income of $11.9 million, or $3.55 per diluted share for 2022, compared to $11.4 million or $3.41 per share in 2021. This increase is attributed to a $2.7 million rise in net interest income after provisions for loan losses, driven by higher interest income from a rise in average interest-earning assets. Despite this, noninterest income decreased by $1.6 million due to a decline in loan sale gains, and noninterest expenses rose $557,000. As of December 31, total assets were $1.15 billion, with deposits growing by $24.8 million. The Company remains well-capitalized under regulatory guidelines.
- Net income increased by $0.5 million year-over-year.
- Net interest income after provision for loan losses rose by $2.7 million.
- Average tax-equivalent yield on interest-earning assets increased from 2.95% to 3.10%.
- Deposits grew by $24.8 million in 2022.
- Noninterest income decreased by $1.6 million compared to 2021.
- Noninterest expenses increased by $557,000.
- Net charge-offs rose from $217,000 in 2021 to $261,000 in 2022.
CORYDON, Ind., Jan. 26, 2023 (GLOBE NEWSWIRE) -- First Capital, Inc. (the “Company”) (NASDAQ: FCAP), the holding company for First Harrison Bank (the “Bank”), today reported net income of
Net interest income after provision for loan losses increased
Based on management’s analysis of the allowance for loan losses, a provision for loan losses of
Noninterest income decreased
Noninterest expenses increased
Income tax expense increased
The Company’s net income was
Net interest income after provision for loan losses increased
Noninterest income decreased
Noninterest expenses decreased
Income tax expense increased
Total assets as of December 31, 2022 were
At December 31, 2022, the Bank was considered well-capitalized under applicable federal regulatory capital guidelines.
The Bank currently has 18 offices in the Indiana communities of Corydon, Edwardsville, Greenville, Floyds Knobs, Palmyra, New Albany, New Salisbury, Jeffersonville, Salem, Lanesville and Charlestown and the Kentucky communities of Shepherdsville, Mt. Washington and Lebanon Junction.
Access to First Harrison Bank accounts, including online banking and electronic bill payments, is available through the Bank’s website at www.firstharrison.com. For more information and financial data about the Company, please visit Investor Relations at the Bank’s aforementioned website. The Bank can also be followed on Facebook.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,” “could” and “should,” and other words of similar meaning. Forward-looking statements are not historical facts nor guarantees of future performance; rather, they are statements based on the Company’s current beliefs, assumptions, and expectations regarding its business strategies and their intended results and its future performance.
Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by these forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations and personnel, and on commercial activity and demand across our and our customers’ businesses, market, economic, operational, liquidity, credit and interest rate risks associated with the Company’s business (including developments and volatility arising from the COVID-19 pandemic), general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; competition; the ability of the Company to execute its business plan; legislative and regulatory changes; and other factors disclosed periodically in the Company’s filings with the Securities and Exchange Commission.
Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release, the Company’s reports, or made elsewhere from time to time by the Company or on its behalf. These forward-looking statements are made only as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements after the date of this press release.
Contact:
Chris Frederick
Chief Financial Officer
812-734-3464
| FIRST CAPITAL, INC. AND SUBSIDIARY | |||||||||||||
| Consolidated Financial Highlights (Unaudited) | |||||||||||||
| Year Ended | Three Months Ended | ||||||||||||
| December 31, | December 31, | ||||||||||||
| OPERATING DATA | 2022 | 2021 | 2022 | 2021 | |||||||||
| (Dollars in thousands, except per share data) | |||||||||||||
| Total interest income | $ | 33,940 | $ | 29,460 | $ | 9,789 | $ | 7,290 | |||||
| Total interest expense | 1,594 | 1,128 | 684 | 273 | |||||||||
| Net interest income | 32,346 | 28,332 | 9,105 | 7,017 | |||||||||
| Provision (credit) for loan losses | 950 | (325 | ) | 400 | (400 | ) | |||||||
| Net interest income after provision (credit) for loan losses | 31,396 | 28,657 | 8,705 | 7,417 | |||||||||
| Total non-interest income | 7,927 | 9,551 | 1,942 | 2,291 | |||||||||
| Total non-interest expense | 25,088 | 24,531 | 6,300 | 6,357 | |||||||||
| Income before income taxes | 14,235 | 13,677 | 4,347 | 3,351 | |||||||||
| Income tax expense | 2,320 | 2,240 | 804 | 529 | |||||||||
| Net income | 11,915 | 11,437 | 3,543 | 2,822 | |||||||||
| Less net income attributable to the noncontrolling interest | 13 | 13 | 3 | 3 | |||||||||
| Net income attributable to First Capital, Inc. | $ | 11,902 | $ | 11,424 | $ | 3,540 | $ | 2,819 | |||||
| Net income per share attributable to | |||||||||||||
| First Capital, Inc. common shareholders: | |||||||||||||
| Basic | $ | 3.55 | $ | 3.41 | $ | 1.05 | $ | 0.84 | |||||
| Diluted | $ | 3.55 | $ | 3.41 | $ | 1.05 | $ | 0.84 | |||||
| Weighted average common shares outstanding: | |||||||||||||
| Basic | 3,355,023 | 3,346,038 | 3,359,662 | 3,349,623 | |||||||||
| Diluted | 3,355,023 | 3,346,495 | 3,359,662 | 3,349,623 | |||||||||
| OTHER FINANCIAL DATA | |||||||||||||
| Cash dividends per share | $ | 1.04 | $ | 1.04 | $ | 0.26 | $ | 0.26 | |||||
| Return on average assets (annualized) (1) | 1.03 | % | 1.05 | % | 1.24 | % | 0.99 | % | |||||
| Return on average equity (annualized) (1) | 13.07 | % | 10.15 | % | 18.19 | % | 9.95 | % | |||||
| Net interest margin (tax-equivalent basis) | 2.95 | % | 2.84 | % | 3.31 | % | 2.69 | % | |||||
| Interest rate spread (tax-equivalent basis) | 2.90 | % | 2.80 | % | 3.21 | % | 2.65 | % | |||||
| Net overhead expense as a percentage | |||||||||||||
| of average assets (annualized) (1) | 2.17 | % | 2.26 | % | 2.21 | % | 2.24 | % | |||||
| December 31, | December 31, | ||||||||||||
| BALANCE SHEET INFORMATION | 2022 | 2021 | |||||||||||
| Cash and cash equivalents | $ | 66,298 | $ | 172,509 | |||||||||
| Interest-bearing time deposits | 3,677 | 4,839 | |||||||||||
| Investment securities | 467,819 | 449,335 | |||||||||||
| Gross loans | 564,730 | 489,370 | |||||||||||
| Allowance for loan losses | 6,772 | 6,083 | |||||||||||
| Earning assets | 1,073,150 | 1,090,874 | |||||||||||
| Total assets | 1,151,400 | 1,156,603 | |||||||||||
| Deposits | 1,060,396 | 1,035,562 | |||||||||||
| Stockholders' equity, net of noncontrolling interest | 85,158 | 113,828 | |||||||||||
| Non-performing assets: | |||||||||||||
| Nonaccrual loans | 1,403 | 1,327 | |||||||||||
| Accruing loans past due 90 days | 87 | 3 | |||||||||||
| Foreclosed real estate | - | 36 | |||||||||||
| Troubled debt restructurings on accrual status | 529 | 975 | |||||||||||
| Regulatory capital ratios (Bank only): | |||||||||||||
| Community Bank Leverage Ratio (2) | 9.18 | % | 8.84 | % | |||||||||
| (1) See reconciliation of GAAP and non-GAAP financial measures for additional information | |||||||||||||
| relating to the calculation of this item. | |||||||||||||
| (2) Effective December 31, 2022 and 2021, the Bank opted in to the Community Bank Leverage Ratio (CBLR) framework. | |||||||||||||
| As such, the other regulatory ratios are no longer provided. | |||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company's performance. Management believes that these non-GAAP financial measures allow for better comparability with prior periods, as well as with peers in the industry who provide a similar presentation, and provide a further understanding of the Company's ongoing operations. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.
| Three Months Ended | ||||
| December 31, | ||||
| 2022 | 2021 | |||
| Return on average assets before annualization | 0.31 | % | 0.25 | % |
| Annualization factor | 4.00 | 4.00 | ||
| Annualized return on average assets | 1.24 | % | 0.99 | % |
| Return on average equity before annualization | 4.55 | % | 2.49 | % |
| Annualization factor | 4.00 | 4.00 | ||
| Annualized return on average equity | 18.19 | % | 9.95 | % |
| Net overhead expense as a % of average assets before | ||||
| annualization | 0.55 | % | 0.56 | % |
| Annualization factor | 4.00 | 4.00 | ||
| Annualized net overhead expense as a % of average assets | 2.21 | % | 2.24 | % |
FAQ
What was First Capital's net income for 2022?
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