First Capital, Inc. Reports Quarterly Earnings

CORYDON, Ind., April 22, 2010 (GLOBE NEWSWIRE) -- First Capital, Inc.
(Nasdaq:FCAP) (the "Company"), the holding company for First Harrison Bank (the
"Bank"), today reported net income of $1.0 million or $0.36 per diluted share
for the quarter ended March 31, 2010, compared to $803,000 or $0.29 per diluted
share for the quarter ended March 31, 2009.

The increase in earnings is primarily due to increases in net interest income
and noninterest income, partially offset by an increase in noninterest expense.

Net interest income after provision for loan losses increased $216,000 for the
quarter ended March 31, 2010 as compared to the same prior year period. Interest
income decreased $464,000 when comparing the periods as the average
tax-equivalent yield of interest-earning assets decreased from 5.76% in the
three-month period ended March 31, 2009 to 5.25% during the same period in 2010.
Interest expense decreased $715,000 when comparing the periods as the average
cost of interest-bearing liabilities decreased from 2.42% to 1.62%. These
decreases in the average tax-equivalent yield on interest-earning assets and
average cost of interest-bearing liabilities were primarily due to the Federal
Reserve's Open Market Committee continuing to hold interest rates near historic
lows which affects new accounts as well as existing accounts repricing to lower
rates. The provision for loan losses increased from $425,000 for the quarter
ended March 31, 2009 to $460,000 for the quarter ended March 31, 2010. This
increase reflects increased inherent loss exposure due to weakened 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 $17,000 for the three months ended March 31, 2010
as compared to the same period in 2009. Service charges on deposit accounts and
commission income increased $22,000 and $10,000, respectively, when comparing
the two periods, while gains on the sale of mortgage loans decreased $16,000
from 2009 to 2010.

Noninterest expense decreased $141,000 during the three months ended March 31,
2010 as compared to the three months ended March 31, 2009. Compensation and
benefits and professional fees increased $130,000 and $51,000, respectively,
when comparing the two periods. The increase in compensation and benefits is
primarily due to normal salary increases and an increase in the cost of health
insurance. The increase in professional fees is due to an increase in legal fees
associated with problem loans. Other operating expenses decreased $302,000 for
2010 as compared to 2009, primarily due to a $278,000 refund received in the
first quarter of 2010 from disputed ATM charges paid by the Bank in 2009.

Total assets increased $7.2 million to $462.7 million at March 31, 2010 compared
to $455.5 million at December 31, 2009. Total assets increased primarily due to
increases of $7.9 million and $4.8 million in securities available for sale and
interest bearing deposits with banks, respectively. These changes were partially
offset by a $4.0 million decrease in net loans receivable. The funding for the
asset growth was provided primarily by deposit growth of $8.2 million.
Nonperforming assets (consisting of nonaccrual loans, accruing loans 90 days or
more past due and foreclosed real estate) decreased from $10.4 million at
December 31, 2009 to $10.3 million at March 31, 2010.

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 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.

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

Three Months Ended
March 31,

OPERATING DATA 2010 2009
--------- ---------
(Dollars in thousands,
except per share data)

Total interest income $ 5,479 $ 5,943

Total interest expense 1,509 2,224
--------- ---------
Net interest income 3,970 3,719

Provision for loan losses 460 425
--------- ---------
Net interest income after
provision for loan losses 3,510 3,294

Total non-interest income 823 806

Total non-interest expense 2,890 3,031
--------- ---------
Income before income taxes 1,443 1,069

Income tax expense 439 264
--------- ---------
Net income 1,004 805
Less net income attributable
to the noncontrolling
interest 3 2
--------- ---------
Net income attributable to
First Capital, Inc. $ 1,001 $ 803
========= =========

Net income per share
attributable to First
Capital, Inc.
common shareholders:

Basic $ 0.36 $ 0.29
========= =========

Diluted $ 0.36 $ 0.29
========= =========

Weighted average common
shares outstanding:
Basic 2,777,467 2,789,282

Diluted 2,781,306 2,799,561

OTHER FINANCIAL DATA

Cash dividends per share $ 0.18 $ 0.18
Return on average assets
(annualized) 0.87% 0.71%
Return on average equity
(annualized) 8.58% 6.69%
Net interest margin 3.84% 3.65%
Net overhead expense as a
percentage
of average assets
(annualized) 2.51% 2.66%

December
March 31, 31,

BALANCE SHEET INFORMATION 2010 2009
--------- ---------
(Dollars in thousands)

Cash and cash equivalents $ 20,548 $ 15,857
Investment securities 101,666 93,791
Gross loans receivable 312,128 316,023
Allowance for loan losses 5,043 4,931
Earning assets 423,469 415,324
Total assets 462,713 455,534
Deposits 382,716 374,476
FHLB debt 23,726 24,776
Repurchase agreements 6,974 7,949
Stockholders' equity, net of
noncontrolling interest 46,987 45,944
Non-performing assets:
Nonaccrual loans 8,612 8,374
Accruing loans past due 90
days 666 1,118
Foreclosed real estate 983 877
Regulatory capital ratios
(Bank only):
Tier I - adjusted total
assets 8.75% 8.66%
Tier I - risk based 13.90% 13.39%
Total risk-based 14.48% 13.99%

CONTACT: First Capital, Inc.
Chris Frederick, Chief Financial Officer
812-734-3464