<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>9
<FILENAME>dex993.txt
<DESCRIPTION>EXHIBIT 99.3
<TEXT>
<PAGE>

                                                                    Exhibit 99.3

                      [LETTERHEAD OF FIRST CAPITAL, INC.]

To the Holders of Hometown Bancshares, Inc. Common Stock:

     In connection with the proposed merger of Hometown Bancshares, Inc. into
First Capital, Inc., we are pleased to offer you the opportunity to indicate
whether you prefer to receive shares of First Capital common stock or cash in
exchange for your shares of Hometown common stock. This election will be
effective only upon the consummation of the merger, which is subject to the
satisfaction of several conditions, including the approval of Hometown
stockholders. A complete description of the merger and of the election and
proration procedures is included in the proxy statement-prospectus.

     Enclosed is an Election Form and Letter of Transmittal which you must
complete, sign and return with all of your Hometown stock certificates to our
exchange agent, Registrar and Transfer Company, in order to make an election.
Please use the green envelope enclosed herewith to return your Election Form and
Letter of Transmittal and your stock certificates.

     For your election to be effective, the exchange agent must receive your
Election Form and Letter of Transmittal, together with your Hometown stock
certificates, before 5:00 p.m., New York City time, on March 10, 2003. If
you hold your shares through a broker or other nominee or in "street name,"
there may be an earlier election deadline. Please follow the instructions on the
Election Form and Letter of Transmittal carefully. If your Hometown stock
certificates are not immediately available or time will not permit the Election
Form and Letter of Transmittal to be delivered to the exchange agent prior to
the election deadline, you may make an election if you submit the Notice of
Guaranteed Delivery included in this package and follow the instructions in that
document. If you need assistance, please call the exchange agent at (800)
368-5948.


     If you do not make an election, the exchange agent will send you additional
forms for the surrender of your Hometown stock certificates after consummation
of the merger, and you will receive First Capital common stock or cash in
exchange for your shares pursuant to the agreed-upon allocation procedures
described in the proxy statement-prospectus.

     Pursuant to the terms of the merger, 50% of the outstanding shares of
Hometown will be exchanged for First Capital common stock and 50% of the
outstanding shares of Hometown will be exchanged for cash. Since it is unlikely
that elections will be made exactly in these proportions, the merger agreement
describes allocation and proration procedures to be followed if Hometown
stockholders elect to receive more or less of the First Capital common stock
than First Capital has agreed to issue.

     Your submission of an Election Form and Letter of Transmittal does not
constitute a vote on the merger. In order to vote your shares, you must sign,
date and return the proxy card included with the proxy statement-prospectus or
attend the special meeting described in the proxy statement-prospectus and vote
in person.

     To those of you who will receive First Capital common stock in the merger,
we look forward to having you as stockholders of First Capital.

                                     Very truly yours,

                                     /s/ William W. Harrod

                                     William W. Harrod
                                     President and Chief Executive Officer
                                     First Capital, Inc.

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