SOURCE: First Capital, Inc.

December 28, 2006 09:46 ET

First Harrison Bank Agrees to Sell Insurance Business

CORYDON, IN -- (MARKET WIRE) -- December 28, 2006 -- First Harrison Bank, the subsidiary of First Capital, Inc. (NASDAQ: FCAP), announced today it has agreed to sell its property casualty business, which operates under the name First Harrison Insurance and Investments, to Bennett and Bennett Insurance Agency located in Corydon, Indiana. The transaction is scheduled to close on December 28, 2006.

William W. Harrod, Chief Operating Officer of First Harrison Bank, said, "Bennett and Bennett is an excellent local agency and will take very good care of our insurance customers. This is a very small part of our financial services business and we do not expect that this transaction will have a material impact on our earnings."

In addition to the property and casualty business, First Harrison Insurance and Investments offers wealth management services. With the sale of the property and casualty business, First Harrison Bank will discontinue operations under the name First Harrison Insurance and Investments. First Harrison Bank will continue to focus on wealth management for its customers and its investment representatives will work from its offices. Helen Strong will work from the Corydon Office, Mickie Vallandingham will work from the Charleston Road Office in New Albany and David Hurst will work from the Palmyra Office.

Forward-Looking Statements

This news release contains certain forward-looking statements. These statements include statements regarding the anticipated closing date of the transaction and anticipated future results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include delays in completing the transaction and changes in general economic conditions.

Contact Information

  • For further information contact:
    William W. Harrod
    Chief Operating Officer
    First Harrison Bank
    (812) 738-2198