 CORYDON, Ind., July 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 2.4 million or 0.73 per diluted share for the quarter ended June 30, 2020, compared to 2.9 million or 0.86 per diluted share for the quarter ended June 30, 2019. The decrease was primarily due to a decrease in net interest income after provision for loan losses partially offset by an increase in noninterest income and a decrease in noninterest expense. Net interest income after provision for loan losses decreased 1.3 million for the quarter ended June 30, 2020 as compared to the same period in 2019. Interest income decreased 845,000 when comparing the periods due to a decrease in the average tax-equivalent yield on interest-earning assets from 4.35 for the second quarter of 2019 to 3.61 for the second quarter of 2020 partially offset by an increase in the average balance of interest-earning assets from 767.0 million for the second quarter of 2019 to 834.1 million for the second quarter of 2020. The decrease in the tax-equivalent yield was due to the Federal Open Market Committee FOMC lowering interest rates due to the COVID-19 pandemic and the Bank originating 45.1 million in loans through the Small Business Administrations Paycheck Protection Program PPP which carry a fixed rate of 1.00. Interest expense decreased 87,000 when comparing the periods due to a decrease in the average cost of interest-bearing liabilities from 0.34 for the second quarter of 2019 to 0.27 for the second quarter of 2020. This was partially offset by an increase in the average balance of interest-bearing liabilities from 573.3 million for the second quarter of 2019 to 607.9 million for the second quarter of 2020. As a result of the changes in interest-earning assets and interest-bearing liabilities, the tax-equivalent interest rate spread decreased from 4.01 for the quarter ended June 30, 2019 to 3.34 for the same period in 2020. Based on managements analysis of the allowance for loan losses, the provision for loan losses increased from 300,000 for the quarter ended June 30, 2019 to 825,000 for the same period in 2020. The increase in provision for loan losses primarily reflects changes to qualitative factors within the Banks allowance for loan losses calculation related to uncertainties surrounding COVID-19. The Bank recognized net charge-offs of 68,000 for the quarter ended June 30, 2020 compared to 30,000 for the same period in 2019. Noninterest income increased 552,000 for the quarter ended June 30, 2020 as compared to the same period in 2019. The second quarter of 2020 included a 223,000 unrealized gain on equity securities compared to a 14,000 unrealized loss on equity securities during the same period in 2019. Gains on the sale of loans and ATM and debit card fees also increased 432,000 and 147,000, respectively, when comparing the two periods. This was partially offset by a 194,000 decrease in service charges on deposit accounts. Noninterest expense decreased 146,000 for the quarter ended June 30, 2020 as compared to the same period in 2019. Data processing expense, advertising expense and net loss on foreclosed real estate decreased 114,000, 110,000 and 86,000, respectively, when comparing the two periods partially offset by a 164,000 increase in compensation and benefits expense.Income tax expense decreased 163,000 for the second quarter of 2020 as compared to the second quarter of 2019 primarily due to an increase in nontaxable income and a decrease in taxable income for the quarter ended June 30, 2020. As a result, the effective tax rate for the quarter ended June 30, 2020 was 14.2 compared to 16.6 for the same period in 2019. For the six months ended June 30, 2020, the Company reported net income of 4.5 million or 1.35 per diluted share compared to net income of 5.0 million or 1.50 per diluted share for the same period in 2019. Net interest income after provision for loan losses decreased 1.2 million for the six months ended June 30, 2020 compared to the same period in 2019. Interest income decreased 829,000 when comparing the two periods, due to a decrease in the average tax-equivalent yield on interest-earning assets from 4.27 for the six months ended June 30, 2019 to 3.82 for the same period in 2020 partially offset by an increase in the average balance of interest-earning assets from 754.0 million for the six months ended June 30, 2019 to 797.9 million for the same period in 2020. Interest expense decreased 75,000 as the average cost of interest-bearing liabilities decreased from 0.33 for the six months ended June 30, 2019 to 0.30 for the same period in 2020, while the average balance of interest-bearing liabilities increased from 566.0 million for the six months ended June 30, 2019 to 589.6 million for the same period in 2020. As a result of the changes in interest-earning assets and interest-bearing liabilities, the tax-equivalent interest rate spread decreased from 3.94 for the six months ended June 30, 2019 to 3.52 for the six months ended June 30, 2020.Based on managements analysis of the allowance for loan losses, the provision for loan losses increased from 750,000 for the six months ended June 30, 2019 to 1.2 million for the six months ended June 30, 2020 primarily due to changes to qualitative factors within the Banks allowance for loan losses calculation related to uncertainties surrounding COVID-19. The Bank recognized net charge-offs of 173,000 for the six months ended June 30, 2020 compared to 206,000 for the same period in 2019. Noninterest income increased 503,000 for the six months ended June 30, 2020 as compared to the six months ended June 30, 2019. The increase was primarily due to increases in gains on loans sold and ATM and debit card fees of 633,000 and 265,000, respectively, partially offset by a 149,000 decrease in service charges on deposit accounts when comparing the two periods. In addition, the six months ended June 30, 2020 included a 171,000 unrealized loss on equity securities compared to a 117,000 unrealized gain on equity securities during the same period in 2019. Noninterest expenses increased 14,000 for the six months ended June 30, 2020 as compared to the same period in 2019. Compensation and benefit expense increased 624,000 when comparing the two periods. This was partially offset by decreases in net loss on foreclosed real estate, data processing expense and other expenses of 280,000, 156,000 and 134,000, respectively. Income tax expense decreased 216,000 for the six months ended June 30, 2020 as compared to the same period in 2019 primarily due to an increase in nontaxable income and a decrease in taxable income. This resulted in an effective tax rate of 14.9 for the six months ended June 30, 2020, compared to 16.8 for the same period in 2019. Total assets increased 92.1 million to 919.6 million at June 30, 2020 from 827.5 million at December 31, 2019. Cash and cash equivalents and net loans receivable increased 55.1 million and 32.3 million, respectively, from December 31, 2019 to June 30, 2020. The loan growth was primarily due to the previously mentioned 45.1 million in PPP loans originated. Deposits increased 85.5 million from December 31, 2019 to 807.6 million at June 30, 2020. Noninterest-bearing, interest-bearing demand deposits and savings accounts increased 44.6 million, 22.4 million and 22.7 million, respectively, from December 31, 2019. Nonperforming assets consisting of nonaccrual loans, accruing loans 90 days or more past due, troubled debt restructurings on accrual status, and foreclosed real estate increased from 3.1 million at December 31, 2019 to 4.0 million at June 30, 2020. The Bank has assisted customers experiencing a COVID-19 related hardship by approving payment extensions and waiving or refunding certain banking fees. As of June 30, 2020, the Bank had approved such extensions on loans totaling 68.1 million, primarily related to commercial real estate lending relationships. Of that total, 33.2 million had resumed normal payments.At June 30, 2020, the Bank was considered well-capitalized under applicable federal regulatory capital guidelines.The Bank currently has eighteen 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 Banks website at The Bank offers non-FDIC insured investments to complement its offering of traditional banking products and services through its business arrangement with LPL Financial LLC LPL, member SIPC. For more information and financial data about the Company, please visit Investor Relations at the Banks aforementioned website. The Bank can also be followed on Facebook.Cautionary Note Regarding Forward-Looking StatementsThis 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 Companys current beliefs, assumptions, and expectations regarding its business strategies and their intended results and its future performance. 