First Capital, Inc. (First Capital) serves as a holding company for First Federal Bank (the Bank), a federal savings bank. The Bank’s primary market area is Harrison, Floyd, Clark and Washington counties in Indiana. The Bank has organized three wholly owned subsidiaries to manage a portion of the investment securities portfolio. First Harrison Investments, Inc. and First Harrison Holdings, Inc. jointly own First Harrison, LLC, a Nevada limited liability corporation that holds and manages an investment securities portfolio. The Bank’s lending activities have concentrated on the origination of residential mortgages, both for sale in the secondary market and for retention in the Bank’s loan portfolio. The Bank periodically invests in mortgage-backed securities, including mortgage-backed securities guaranteed or insured by Ginnie Mae, Fannie Mae or Freddie Mac. Deposits and loan repayments are the major source of the Bank’s funds for lending and investment activities.