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<SEC-DOCUMENT>0000909654-08-001225.txt : 20080725
<SEC-HEADER>0000909654-08-001225.hdr.sgml : 20080725
<ACCEPTANCE-DATETIME>20080725144010
ACCESSION NUMBER:		0000909654-08-001225
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080724
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080725
DATE AS OF CHANGE:		20080725

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FIRST CAPITAL INC
		CENTRAL INDEX KEY:			0001070296
		STANDARD INDUSTRIAL CLASSIFICATION:	SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
		IRS NUMBER:				352056949
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25023
		FILM NUMBER:		08970596

	BUSINESS ADDRESS:	
		STREET 1:		220 FEDERAL DRIVE N W
		CITY:			CORYDON
		STATE:			IN
		ZIP:			47112
		BUSINESS PHONE:		8127382198

	MAIL ADDRESS:	
		STREET 1:		220 FEDERAL DRIVE N W
		CITY:			CORYDON
		STATE:			IN
		ZIP:			47112
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>firstcapital8kjuly25-08.txt
<TEXT>
<PAGE>


                                  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 24, 2008
                                                          -------------

                               FIRST CAPITAL, INC.
                               -------------------
             (Exact name of registrant as specified in its charter)

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

      220 Federal Drive N.W., Corydon, Indiana               47112
      ----------------------------------------              ------
      (Address of principal executive offices)            (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))


<PAGE>


ITEM 2.02     RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
              ---------------------------------------------

         On July 24, 2008, First Capital, Inc., the holding company for First
Harrison Bank, announced its financial results for the quarter ended June 30,
2008. The press release announcing financial results for the quarter ended June
30, 2008 is included as Exhibit 99.1 and is incorporated herein by reference.

ITEM 9.01     FINANCIAL 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 24, 2008



<PAGE>



                                   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 24, 2008                    By: /s/ M. Chris Frederick
                                             ---------------------------------
                                             M. Chris Frederick
                                             Senior Vice President and Chief
                                             Financial Officer


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>firstcapital8kjuly25-08ex99.txt
<TEXT>
<PAGE>


          FIRST CAPITAL, INC. REPORTS SECOND QUARTER EARNINGS INCREASE

Corydon, Indiana--July 24, 2008. First Capital, Inc. (NASDAQ: FCAP - news), the
holding company for First Harrison Bank (the "Bank"), today reported net income
of $889,000 or $0.32 per diluted share for the quarter ended June 30, 2008,
compared to $869,000 or $0.31 per diluted share during the same period in 2007.

The increase in earnings is due to an increase in noninterest income and a
decrease in noninterest expense, partially offset by a decrease in net interest
income after the provision for loan losses.

Net interest income after provision for loan losses decreased $59,000 for the
quarter ended June 30, 2008 as compared to the quarter ended June 30, 2007.
Interest income decreased $280,000 when comparing the two periods as the average
tax-equivalent yield of interest-earning assets decreased from 6.57% during the
quarter ended June 30, 2007 to 6.25% for the same period in 2008. Interest
expense decreased $699,000 as the average cost of interest-bearing liabilities
decreased from 3.75% to 2.93% when comparing the same two periods. The provision
for loan losses increased from $35,000 during the quarter ended June 30, 2007 to
$513,000 for the three months ended June 30, 2008. This increase is due to
deteriorating general economic conditions such as depreciating collateral
values, job losses and continued pressures on household budgets in the Bank's
market area.

Noninterest income increased $15,000 for the quarter ended June 30, 2008 as
compared to the quarter ended June 30, 2007. Service charges on deposit accounts
and the earnings from bank-owned life insurance increased $37,000 and $33,000,
respectively, when comparing the two periods. The increase in cash surrender
value of bank-owned life insurance was due to the purchase of $3.6 million of
bank-owned life insurance in May 2007. This was partially offset by a decrease
of $62,000 in mortgage brokerage fees.

Noninterest expenses decreased $32,000 as compared to the quarter ended June 30,
2007. Advertising and other operating expenses decreased $63,000 and $41,000,
respectively, when comparing the quarters ended June 30, 2008 and June 30, 2007.
The decrease in advertising expense was primarily due to the decision to
eliminate television advertising while other operating expenses decreased
primarily due to a reduction in expenses related to the maintenance and sale of
foreclosed real estate properties. This was partially offset by a $47,000
increase in professional fees when comparing the two periods primarily due to an
increase in legal fees relating to problem loan collections.

For the six months ended June 30, 2008, the Company earned $1.8 million or $0.63
per diluted share compared to $1.6 million or $0.57 for the same period in 2007.

Net interest income after provision for loan loss increased $159,000 during the
first six months of 2008 compared to the same period in 2007. Interest income
decreased $390,000 when comparing the two periods, due to a decrease in the
average tax-equivalent yield on interest-earning assets from 6.53% during the
first six months of 2007 to 6.31% in the same period of 2008. The average
balance of interest-earning assets increased, from $421.1 million in 2007 to
$424.3 million in 2008. Interest expense decreased $1.0 million as the average
cost of interest-bearing liabilities decreased from 3.74% in 2007 to 3.14% in
2008. The average balance of interest-bearing liabilities increased $5.0 million
when comparing the two periods. The provision for loan losses increased $478,000
from $260,000 for 2007 to $738,000 for 2008.

Noninterest income increased $79,000 to $1.8 million during the six months ended
June 30, 2008 compared to the six months ended June 30, 2007. The increase was
primarily due to a $101,000 increase in service charges on deposits and an
increase of $78,000 in earnings on bank-owned life insurance when comparing the
two periods. These increases were partially offset by a decrease of $68,000 in
mortgage brokerage fees.

Noninterest expenses increased $48,000 when comparing the six months ended June
30, 2008 to the same period in 2007, primarily due to increases in professional
fees and occupancy expenses of $77,000 and $73,000, respectively. The increase
in professional fees is primarily due to an increase in legal fees relating to
problem loan collections. The increase in occupancy expenses is primarily due to
the opening of the Salem, Indiana branch in November, 2007. These were partially
offset by a decrease in advertising expense of $92,000 when comparing the two
periods due to the elimination of television advertising.

Total assets as of June 30, 2008 were $452.2 million compared to $453.2 million
at December 31, 2007. The primary factor behind this decrease was a decrease of
$6.1 million in net loans receivable, partially offset by an increase of $4.9
million in cash and cash equivalents. Federal Home Loan Bank advances and retail
repurchase agreements decreased $9.6 million and $1.5 million, respectively,
while deposit accounts increased $9.9 million from December 31, 2007 to June 30,
2008.


<PAGE>


First Harrison Bank currently has twelve offices in the Indiana communities of
Corydon, Edwardsville, Greenville, Floyds Knobs, Hardinsburg, Palmyra, New
Albany, New Salisbury, Jeffersonville and Salem. The Bank also has received
regulatory approval to relocate its Edwardsville office within that town.
Construction began on the new office in the first quarter of 2008 and it is
expected to open in the third quarter of this year. 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 Financial Services, a division of the
Bank, offers non-FDIC insured investments to compliment the Bank's offering of
traditional banking products and services.

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.


<PAGE>
<TABLE>
<CAPTION>


                                       FIRST CAPITAL, INC. AND SUBSIDIARY
                                  Consolidated Financial Highlights (Unaudited)

                                                                  SIX MONTHS ENDED                   THREE MONTHS ENDED
                                                                      JUNE 30,                            JUNE 30,
OPERATING DATA                                                 2008             2007                 2008          2007
   (Dollars in thousands, except per share data)               ----             ----                 ----          ----

<S>                                                         <C>             <C>                    <C>           <C>
Total interest income                                       $    13,121     $    13,511            $    6,467    $    6,747
Total interest expense                                            5,816           6,843                 2,699         3,398
                                                            ---------------------------            --------------------------
Net interest income                                               7,305           6,668                 3,768         3,349
Provision for loan losses                                           738             260                   513            35
                                                            ---------------------------            --------------------------
Net interest income after provision for loan losses               6,567           6,408                 3,255         3,314

Total non-interest income                                         1,801           1,722                   923           908
Total non-interest expense                                        5,783           5,735                 2,901         2,933
                                                            ---------------------------            --------------------------
Income before income taxes                                        2,585           2,395                 1,277         1,289
Income tax expense                                                  797             777                   388           420
                                                            ---------------------------            --------------------------
Net income                                                  $     1,788     $     1,618            $      889    $      869
                                                            ===========================            ==========================

Net income per common share, basic                          $      0.64     $      0.57            $     0.32    $     0.31
                                                            ===========================            ==========================
Weighted average common shares outstanding - basic            2,804,940       2,821,926             2,802,727     2,820,396

Net income per common share, diluted                        $      0.63            0.57                  0.32          0.31
                                                            ===========================            ==========================
Weighted average common shares outstanding - diluted          2,820,170       2,846,264             2,816,620     2,844,236

OTHER FINANCIAL DATA


Cash dividends per share                                    $      0.35     $      0.34            $     0.18    $     0.17
Return on average assets (annualized)                              0.78%           0.72%                 0.78%         0.78%
Return on average equity (annualized)                              7.67%           7.28%                 7.59%         7.79%
Net interest margin                                                3.57%           3.28%                 3.69%         3.32%
Net overhead expense as a percentage
   of average assets (annualized)                                  2.54%           2.57%                 2.55%         2.64%

                                                               JUNE 30,       DECEMBER 31,
BALANCE SHEET INFORMATION                                        2008             2007
                                                                 ----             ----

Cash and cash equivalents                                   $    19,983     $    15,055
Investment securities                                            73,296          74,041
Gross loans                                                     330,782         336,695
Allowance for loan losses                                         2,451           2,232
Earning assets                                                  414,029         417,358
Total assets                                                    452,233         453,179
Deposits                                                        338,008         328,151
FHLB debt                                                        51,119          60,694
Repurchase agreements                                            14,059          15,562
Stockholders' equity                                             46,318          45,736
Non-performing assets:
  Nonaccrual loans                                                4,408           4,879
  Accruing loans past due 90 days                                 1,419             795
  Foreclosed real estate                                          1,006             833

</TABLE>

Contact:
- --------
Chris Frederick
Chief Financial Officer
812-734-3464
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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