8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 26, 2013

FIRST CAPITAL, INC.

(Exact name of registrant as specified in its charter)

Indiana	0-25023	35-2056949
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

220 Federal Drive N.W., Corydon, Indiana 47112

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (812) 738-2198

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02Results of Operations and Financial Condition.

On July 26, 2013, First Capital, Inc., the holding company for First Harrison Bank, announced its financial results for the quarter ended June 30, 2013.  The press release announcing financial results for the quarter ended June 30, 2013 is furnished as Exhibit 99.1 and is furnished herewith.

Item 9.01Financial Statements and Exhibits.

(a) Financial Statements of Businesses Acquired: Not applicable

(b) Pro Forma Financial Information: Not applicable

(c) Shell Company Transactions: Not applicable

(d) Exhibits

Number Description

99.1 Press Release Dated July 26, 2013

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FIRST CAPITAL, INC.
Dated:  July 29, 2013	By:	/s/ M. Chris Frederick
		M. Chris Frederick
		Senior Vice President and Chief Financial Officer

EX-99.1

FIRST CAPITAL, INC. REPORTS QUARTERLY EARNINGS INCREASE

Corydon, Indiana—July 26, 2013.  First Capital, Inc. (NASDAQ:  FCAP - news), the holding company for First Harrison Bank (the “Bank”), today reported net income of $1.2 million or $0.43 per diluted share for the quarter ended June 30, 2013, compared to $1.0 million or $0.37 per diluted share for the same period in 2012.

The increase in net income is primarily due to increases in net interest income after provision for loan losses and noninterest income and a decrease in noninterest expense.

Net interest income after provision for loan losses increased $163,000 for the quarter ended June 30, 2013 as compared to the quarter ended June 30, 2012. Interest income decreased $122,000 when comparing the two periods as the average tax-equivalent yield of interest-earning assets decreased from 4.53% for the three-month period ended June 30, 2012 to 4.43% for the same period in 2013.  Interest expense decreased $210,000 as the average cost of interest-bearing liabilities decreased from 0.75% to 0.50% when comparing the same two periods.  As a result, the interest-rate spread increased from 3.78% for the quarter ended June 30, 2012 to 3.93% for the same period in 2013.  The provision for loan losses decreased from $300,000 for the quarter ended June 30, 2012 to $225,000 for the quarter ended June 30, 2013 primarily due to a decrease in impaired loans and the related allowance for loan losses during the quarter.

Noninterest income increased $88,000 for the three months ended June 30, 2013 as compared to the same period in 2012.  Commission income and service charges on deposit accounts increased by $40,000 and $39,000, respectively, when comparing the two periods.

Noninterest expenses decreased $54,000 for the three months ended June 30, 2013 as compared to the three months ended June 30, 2012.  Compensation and benefits expense decreased $90,000 when comparing the two periods primarily due to a pre-tax savings of $130,000 recognized as a result of the voluntary early retirement program which took effect on September 30, 2012.  This was partially offset by increases in professional service fees of $43,000 and data processing expenses of $32,000 when comparing the two periods.  The increase in professional fees includes a compensation study, costs associated with an evaluation of the Bank’s asset liability model and increased expenses associated with the management of the Nevada investment subsidiary.  The increase in data processing expenses was primarily due to an increase in ATM processing fees and an increase in the number of customers using alternative delivery channels for their banking products.

For the six months ended June 30, 2013, the Company reported net income of $2.4 million or $0.86 per diluted share compared to net income of $2.0 million or $0.70 per diluted share for the same period in 2012.

Net interest income after provision for loan losses increased $488,000 for the six months ended June 30, 2013 compared to the same period in 2012.  Interest income decreased $267,000 when comparing the two periods, due to a decrease in the average tax-equivalent yield on interest-earning assets from 4.69% for 2012 to 4.44% for 2013.  This was partially offset by an increase in the average balance of interest-earning assets from $412.3 million for the six-months ended June 30, 2012 to $424.6 million for the six months ended June 30, 2013.  Interest expense decreased $455,000 as the average cost of interest-bearing liabilities decreased from 0.79% to 0.52% when comparing the same two periods while the average balance of the interest-bearing liabilities increased from $340.6 million for the six months ended June 30, 2012 to $348.1 million for the same period in 2013.  The provision for loan losses decreased from $775,000 for the six months ended June 30, 2012 to $475,000 for the same period in 2013 as net charge offs decreased from $525,000 for the six months ended June 30, 2012 to $376,000 for the six months ended June 30, 2013.

Noninterest income increased $175,000 for the six months ended June 30, 2013 as compared to the six months ended June 30, 2012.  The increase was primarily due to increases in commission income and service charges on deposit accounts of $115,000 and $73,000, respectively.

Noninterest expenses decreased $65,000 for the six months ended June 30, 2013 as compared to the same period in 2012, primarily due to a decrease in compensation and benefit expenses of $225,000.  This was partially offset by increases in other operating expenses, professional fees and data processing expenses of $63,000, $58,000 and $54,000, respectively.

Total assets as of June 30, 2013 were $460.6 million compared to $459.1 million at December 31, 2012.  Cash and cash equivalents increased $10.5 million during the six months ended June 30, 2013, while securities available for sale decreased $9.3 million.  Deposits increased $5.3 million during the six months ended June 30, 2013.  Nonperforming assets (consisting of nonaccrual loans, accruing loans 90 days or more past due, troubled debt restructurings on accrual status, and foreclosed real estate) totaled $7.8 million and $8.4 million at June 30, 2013 and December 31, 2012, respectively.

At June 30, 2013, the Bank was considered well-capitalized under applicable federal regulatory capital guidelines.

First Harrison Bank currently has thirteen offices in the Indiana communities of Corydon, Edwardsville, Greenville, Floyds Knobs, Hardinsburg, Palmyra, New Albany, New Salisbury, Jeffersonville, Salem and Lanesville.  Access to First Harrison Bank accounts, including online banking and electronic bill payments, is available anywhere with Internet access through the Bank’s website at www.firstharrison.com.  First Harrison Bank, through its business arrangement with Lincoln Investments, member SIPC, continues to offer non FDIC insured investments to complement the Bank’s offering of traditional banking products and services.  You can also follow us now on Facebook.

This release may contain forward-looking statements within the meaning of the federal securities laws.  These statements are not historical facts; rather, they are statements based on the Company’s current expectations regarding its business strategies and their intended results and its future performance.  Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions.

Forward-looking statements are not guarantees of 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 the forward-looking statements.  Factors that may cause or contribute to these differences include, without limitation, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; 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 report or made elsewhere from time to time by the Company or on its behalf.  Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

FIRST CAPITAL, INC. AND SUBSIDIARY

Consolidated Financial Highlights (Unaudited)

	Six Months Ended						Three Months Ended
	June 30,						June 30,
OPERATING DATA	2013			2012			2013			2012
(Dollars in thousands, except per share data)
Total interest income	$	9,130		$	9,397		$	4,554		$	4,676
Total interest expense		898			1,353			440			650
Net interest income		8,232			8,044			4,114			4,026
Provision for loan losses		475			775			225			300
Net interest income after provision for loan losses		7,757			7,269			3,889			3,726
Total non-interest income		2,350			2,175			1,188			1,100
Total non-interest expense		6,628			6,693			3,306			3,360
Income before income taxes		3,479			2,751			1,771			1,466
Income tax expense		1,068			790			557			427
Net income	$	2,411		$	1,961		$	1,214		$	1,039
Less net income attributable to the noncontrolling interest		7			7			4			4
Net income attributable to First Capital, Inc.	$	2,404		$	1,954		$	1,210		$	1,035
Net income per share attributable to
First Capital, Inc. common shareholders:
Basic	$	0.86		$	0.70		$	0.43		$	0.37
Diluted	$	0.86		$	0.70		$	0.43		$	0.37
Weighted average common shares outstanding:
Basic		2,784,997			2,785,574			2,784,997			2,785,458
Diluted		2,784,997			2,785,574			2,784,997			2,785,458
OTHER FINANCIAL DATA
Cash dividends per share	$	0.40		$	0.38		$	0.20		$	0.19
Return on average assets (annualized)		1.05	%		0.88	%		1.04	%		0.91	%
Return on average equity (annualized)		9.01	%		7.58	%		9.04	%		8.00	%
Net interest margin		4.02	%		4.03	%		4.01	%		3.92	%
Interest rate spread		3.92	%		3.90	%		3.93	%		3.78	%
Net overhead expense as a percentage
of average assets (annualized)		2.88	%		3.00	%		2.85	%		2.95	%

	June 30,			December 31,
BALANCE SHEET INFORMATION	2013			2012
Cash and cash equivalents	$	33,700		$	23,211
Investment securities		113,675			122,985
Gross loans		287,995			285,143
Allowance for loan losses		4,835			4,736
Earning assets		424,632			421,755
Total assets		460,577			459,132
Deposits		389,613			384,343
FHLB debt		5,000			5,100
Repurchase agreements		11,437			14,092
Stockholders' equity, net of noncontrolling interest		52,396			52,824
Non-performing assets:
Nonaccrual loans		5,377			7,578
Accruing loans past due 90 days		481			289
Foreclosed real estate		403			295
Troubled debt restructurings on accrual status		1,535			221
Regulatory capital ratios (Bank only):
Tier I - adjusted total assets		10.26	%		10.00	%
Tier I - risk based		14.65	%		14.35	%
Total risk-based		15.91	%		15.60	%

Contact:

Chris Frederick

Chief Financial Officer

812-734-3464