First Capital, Inc. Reports Record Quarterly Earnings
MWN-AI** Summary
First Capital, Inc. (NASDAQ: FCAP), the parent company of First Harrison Bank, announced impressive financial results for the third quarter of 2025, reporting a record net income of $4.5 million, or $1.34 per diluted share, a significant increase from $2.9 million, or $0.87 per diluted share, in the same quarter last year.
The boost in net interest income, which rose by $2.1 million, was driven by a higher average tax-equivalent yield on interest-earning assets, increasing from 4.59% to 4.94%. The average balance of these assets also climbed from $1.17 billion to $1.20 billion year-over-year. Additionally, the reduction in interest expense by $397,000, along with an improved net interest margin, which jumped from 3.19% to 3.71%, contributed significantly to earnings growth.
Notably, the provision for credit losses decreased markedly from $463,000 in 2024 to $150,000 in 2025, reflecting management's positive assessment of credit quality. Furthermore, noninterest income rose by $506,000, bolstered by a gain on equity securities as well as increased loan sale gains and ATM fee income.
However, expenses also rose, with noninterest expenses up $540,000 primarily due to costs related to expanding branch facilities and elevated compensation expenses. The company's income tax expense increased by $530,000, resulting in a higher effective tax rate of 19.2%.
For the nine months ended September 30, net income also surged to $11.5 million, or $3.43 per diluted share, compared to $8.7 million, or $2.59 per diluted share, for the prior year. The total assets at the end of the quarter increased to $1.24 billion, demonstrating strong growth in the company's financial standing.
MWN-AI** Analysis
First Capital, Inc. (NASDAQ: FCAP) has reported record quarterly earnings for Q3 2025, showing significant improvements in net income and operational efficiency. The company achieved a net income of $4.5 million, or $1.34 per diluted share, a commendable rise from the $2.9 million reported for the same quarter in 2024. This upward trajectory in profitability is driven largely by a robust increase in net interest income, which rose by $2.1 million year-over-year, reflecting improvements in yields and asset management.
The company's effective tax rate has increased, primarily due to a higher proportion of net income being taxable, which indicates a potentially healthier bottom line moving forward as earnings grow. Additionally, a decrease in the provision for credit losses from $463,000 to $150,000 signifies better credit quality and reduced non-performing loans, reinforcing a positive outlook for loan portfolio stability.
Caution should be exercised, however, as noninterest expenses have also risen, attributed to increases in occupancy and equipment expenses, as well as compensation. This cost increment should be monitored closely, as it could impact overall profitability if not managed effectively.
The increase in the tax-equivalent net interest margin—from 3.19% to 3.71%—is particularly noteworthy and suggests improved asset yield coupled with lower interest-bearing liability costs. Given the rise in average tax-equivalent yields on interest-earning assets, investors may find value in FCAP as it moves to leverage its stronger earning capacity.
In light of the positive earnings report and operational strengths, I recommend a cautious buy for First Capital, Inc. However, investors should remain attentive to emerging trends in interest rates and cost management strategies that could influence future performance. With careful monitoring, FCAP appears well-positioned for continued growth.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
CORYDON, Ind., Oct. 24, 2025 (GLOBE NEWSWIRE) -- First Capital, Inc. (the “Company”) (NASDAQ: FCAP), the holding company for First Harrison Bank (the “Bank”), today reported net income of $4.5 million, or $1.34 per diluted share, for the quarter ended September 30, 2025, compared to net income of $2.9 million, or $0.87 per diluted share, for the quarter ended September 30, 2024.
Results of Operations for the Three Months Ended September 30, 2025 and 2024
Net interest income after provision for credit losses increased $2.1 million for the quarter ended September 30, 2025 compared to the same period in 2024. Interest income increased $1.4 million when comparing the two periods due to an increase in the average tax-equivalent yield (1) on interest-earning assets from 4.59% for the quarter ended September 30, 2024 to 4.94% for the same period in 2025, in addition to an increase in the average balance of interest-earning assets from $1.17 billion for the quarter ended September 30, 2024 to $1.20 billion for the same period in 2025. Interest expense decreased $397,000 when comparing the two periods. The average cost of interest-bearing liabilities decreased from 1.87% for the quarter ended September 30, 2024 to 1.66% for the same period in 2025, while the average balance of interest-bearing liabilities increased from $875.8 million for the quarter ended September 30, 2024 to $891.3 million for the same period in 2025. As a result of the changes in interest-earning assets and interest-bearing liabilities, the tax-equivalent net interest margin (1) increased from 3.19% for the quarter ended September 30, 2024 to 3.71% for the same period in 2025. Refer to the accompanying average balance sheet for more information regarding changes in the composition of the Company’s balance sheet and resulting yields and costs from the quarter ended September 30, 2024 to the quarter ended September 30, 2025.
Based on management’s analysis of the Allowance for Credit Losses (“ACL”) on loans and unfunded loan commitments, the provision for credit losses decreased from $463,000 for the quarter ended September 30, 2024 to $150,000 for the quarter ended September 30, 2025. The Bank recognized net charge-offs of $17,000 and $64,000 for the quarters ended September 30, 2025 and 2024, respectively.
Noninterest income increased $506,000 for the quarter ended September 30, 2025 as compared to the quarter ended September 30, 2024 primarily due to the Company recognizing a $150,000 gain on equity securities for the quarter ended September 30, 2025 compared to a $196,000 loss on equity securities for the quarter ended September 30, 2024. In addition, the Company recognized a $119,000 increase in gains on sale of loans as well as an increase of $47,000 in ATM and debit card fee income when comparing the two periods. These increases were partially offset by the Company recognizing a net $39,000 loss on sale of available for sale securities during the quarter ended September 30, 2025. The Company did not sell any securities during the quarter ended September 30, 2024.
Noninterest expenses increased $540,000 for the quarter ended September 30, 2025 as compared to the same period in 2024. This was primarily due to increases in occupancy and equipment and compensation and benefits expenses of $331,000 and $202,000, respectively. The increase in occupancy and equipment expenses is primarily due to costs for the demolition and subsequent rebuilding of one of the Bank’s Bullitt County branches in addition to a loss recognized for the remaining net book value of assets associated with the branch. The increase in compensation and benefits is due to increases in salary and wages associated with annual cost of living and performance related adjustments.
Income tax expense increased $530,000 for the quarter ended September 30, 2025 as compared to the same period in 2024 resulting in an effective tax rate of 19.2% for the quarter ended September 30, 2025, compared to 15.6% for the same period in 2024. The increase in the Bank’s effective tax rate for the quarter reflects a higher proportion of net income being subject to taxation compared to the same period last year.
Results of Operations for the Nine Months Ended September 30, 2025 and 2024
For the nine months ended September 30, 2025, the Company reported net income of $11.5 million, or $3.43 per diluted share, compared to net income of $8.7 million, or $2.59 per diluted share, for the same period in 2024.
Net interest income after provision for credit losses increased $4.9 million for the nine months ended September 30, 2025 compared to the same period in 2024. Interest income increased $4.8 million when comparing the two periods due to an increase in the average tax-equivalent yield (1) on interest-earning assets from 4.44% for the nine months ended September 30, 2024 to 4.80% for the same period in 2025, in addition to an increase in the average balance of interest-earning assets from $1.14 billion for the nine months ended September 30, 2024 to $1.19 billion for the same period in 2025. Interest expense increased $198,000 as the average cost of interest-bearing liabilities decreased from 1.72% for the nine months ended September 30, 2024 to 1.67% for the same period in 2025 while the average balance of interest-bearing liabilities increased from $846.8 million for the nine months ended September 30, 2024 to $886.0 million for the same period in 2025. As a result of the changes in interest-earning assets and interest-bearing liabilities, the tax-equivalent net interest margin (1) increased from 3.16% for the nine months ended September 30, 2024 to 3.55% for the same period in 2025. Refer to the accompanying average balance sheet for more information regarding changes in the composition of the Company’s balance sheet and resulting yields and costs from the nine months ended September 30, 2024 to the nine months ended September 30, 2025.
Based on management’s analysis of the ACL on loans and unfunded loan commitments, the provision for credit losses decreased from $1.1 million for the nine months ended September 30, 2024 to $794,000 for the nine months ended September 30, 2025. The decrease was due to a decrease in non-performing loans and management’s assessment of the macroeconomic environment. The Bank recognized net charge-offs of $214,000 and $149,000 for the nine months ended September 30, 2025 and 2024, respectively.
Noninterest income increased $450,000 for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The increase is primarily due to the Company recognizing a $127,000 gain on equity securities for the nine months ended September 30, 2025 compared to a loss of $270,000 for the same period in 2024. In addition, the Company also recognized a $90,000 increase in gains on sale of loans and a $39,000 increase in service charges on deposits when comparing the two periods. These were partially offset by the Company recognizing a net $94,000 loss on sale of available for sale securities for the nine months ended September 30, 2025 compared to a net gain of $32,000 on sale of available for sale securities for the same period in 2024.
Noninterest expenses increased $1.5 million for the nine months ended September 30, 2025 as compared to the same period in 2024. This was primarily due to increases in compensation and benefits and occupancy and equipment expenses of $769,000 and $560,000, respectively, when comparing the two periods. The increase in compensation and benefits is due to increases in salary and wages associated with annual cost of living and performance related adjustments as well as increases in the cost of Company-provided health insurance benefits. The increase in occupancy and equipment expenses is primarily due to costs associated with snow removal across the Company’s branch network in the first quarter of 2025, as well as losses on the disposal of premises and equipment associated with two of the Bank’s branches, the upgrade of the Company’s call center system, and the demolition of one of the Bank’s branches.
Income tax expense increased $1.1 million for the nine months ended September 30, 2025 as compared to the same period in 2024 resulting in an effective tax rate of 18.4% for the nine months ended September 30, 2025, compared to 15.0% for the same period in 2024. The increase in the Bank’s effective tax rate for the nine months ended September 30, 2025 reflects a higher proportion of net income being subject to taxation compared to the same period last year.
Comparison of Financial Condition at September 30, 2025 and December 31, 2024
Total assets were $1.24 billion at September 30, 2025 compared to $1.19 billion at December 31, 2024. Securities available for sale, net loans receivable and cash and cash equivalents increased $32.4 million, $11.1 million, and $6.3 million, respectively, from December 31, 2024 to September 30, 2025. Deposits increased $28.3 million from $1.07 billion at December 31, 2024 to $1.09 billion at September 30, 2025. Nonperforming assets (consisting of nonaccrual loans, accruing loans 90 days or more past due, and foreclosed real estate) decreased from $4.4 million at December 31, 2024 to $3.9 million at September 30, 2025.
The Bank currently has 17 offices in the Indiana communities of Corydon, Edwardsville, Greenville, Floyds Knobs, Palmyra, New Albany, New Salisbury, Jeffersonville, Salem, Lanesville and Charlestown and the Kentucky communities of Shepherdsville, Mt. Washington and Lebanon Junction.
Access to First Harrison Bank accounts, including online banking and electronic bill payments, is available through the Bank’s website at www.firstharrison.com. For more information and financial data about the Company, please visit Investor Relations at the Bank’s aforementioned website. The Bank can also be followed on Facebook.
(1) Reconciliations of the non–U.S. Generally Accepted Accounting Principles (“GAAP”) measures are set forth at the end of this press release.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,” “could” and “should,” and other words of similar meaning. Forward-looking statements are not historical facts nor guarantees of future performance; rather, they are statements based on the Company’s current beliefs, assumptions, and expectations regarding its business strategies and their intended results and its 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 these 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; competition; the ability of the Company to execute its business plan; legislative and regulatory changes; the quality and composition of the loan and investment portfolios; loan demand; deposit flows; changes in accounting principles and guidelines; 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 press release, the Company’s reports, or made elsewhere from time to time by the Company or on its behalf. These forward-looking statements are made only as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements after the date of this press release.
Contact:
Joshua P. Stevens
Chief Financial Officer
812-738-1570
| FIRST CAPITAL, INC. AND SUBSIDIARIES Consolidated Financial Highlights (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| OPERATING DATA | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||
| Total interest income | $ | 14,658 | $ | 13,224 | $ | 42,044 | $ | 37,279 | ||||||||
| Total interest expense | 3,702 | 4,099 | 11,095 | 10,897 | ||||||||||||
| Net interest income | 10,956 | 9,125 | 30,949 | 26,382 | ||||||||||||
| Provision for credit losses | 150 | 463 | 794 | 1,103 | ||||||||||||
| Net interest income after provision for credit losses | 10,806 | 8,662 | 30,155 | 25,279 | ||||||||||||
| Total non-interest income | 2,306 | 1,800 | 6,172 | 5,722 | ||||||||||||
| Total non-interest expense | 7,564 | 7,024 | 22,239 | 20,781 | ||||||||||||
| Income before income taxes | 5,548 | 3,438 | 14,088 | 10,220 | ||||||||||||
| Income tax expense | 1,067 | 537 | 2,591 | 1,532 | ||||||||||||
| Net income | 4,481 | 2,901 | 11,497 | 8,688 | ||||||||||||
| Less net income attributable to the noncontrolling interest | 3 | 3 | 9 | 10 | ||||||||||||
| Net income attributable to First Capital, Inc. | $ | 4,478 | $ | 2,898 | $ | 11,488 | $ | 8,678 | ||||||||
| Net income per share attributable to | ||||||||||||||||
| First Capital, Inc. common shareholders: | ||||||||||||||||
| Basic | $ | 1.34 | $ | 0.87 | $ | 3.43 | $ | 2.59 | ||||||||
| Diluted | $ | 1.34 | $ | 0.87 | $ | 3.43 | $ | 2.59 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 3,348,618 | 3,347,236 | 3,347,380 | 3,345,863 | ||||||||||||
| Diluted | 3,350,008 | 3,347,236 | 3,349,321 | 3,345,863 | ||||||||||||
| OTHER FINANCIAL DATA | ||||||||||||||||
| Cash dividends per share | $ | 0.31 | $ | 0.29 | $ | 0.89 | $ | 0.83 | ||||||||
| Return on average assets (annualized) | 1.45 | % | 0.97 | % | 1.26 | % | 0.99 | % | ||||||||
| Return on average equity (annualized) | 14.29 | % | 10.48 | % | 12.70 | % | 10.84 | % | ||||||||
| Net interest margin | 3.64 | % | 3.12 | % | 3.48 | % | 3.09 | % | ||||||||
| Net interest margin (tax-equivalent basis) (1) | 3.71 | % | 3.19 | % | 3.55 | % | 3.16 | % | ||||||||
| Interest rate spread | 3.21 | % | 2.66 | % | 3.06 | % | 2.65 | % | ||||||||
| Interest rate spread (tax-equivalent basis) (1) | 3.28 | % | 2.72 | % | 3.13 | % | 2.72 | % | ||||||||
| Net overhead expense as a percentage of average assets (annualized) | 2.44 | % | 2.35 | % | 2.44 | % | 2.38 | % |
| September 30, | December 31, | |||||||
| BALANCE SHEET INFORMATION | 2025 | 2024 | ||||||
| Cash and cash equivalents | $ | 112,177 | $ | 105,917 | ||||
| Interest-bearing time deposits | 2,205 | 2,695 | ||||||
| Investment securities | 428,627 | 396,243 | ||||||
| Gross loans | 652,193 | 640,480 | ||||||
| Allowance for credit losses | 9,861 | 9,281 | ||||||
| Earning assets | 1,167,634 | 1,119,944 | ||||||
| Total assets | 1,235,477 | 1,187,523 | ||||||
| Deposits | 1,094,733 | 1,066,439 | ||||||
| Stockholders' equity, net of noncontrolling interest | 132,441 | 114,599 | ||||||
| Allowance for credit losses as a percentage of gross loans | 1.51 | % | 1.45 | % | ||||
| Non-performing assets: | ||||||||
| Nonaccrual loans | 3,866 | 4,382 | ||||||
| Accruing loans past due 90 days | — | — | ||||||
| Foreclosed real estate | — | — | ||||||
| Regulatory capital ratios (Bank only): | ||||||||
| Community Bank Leverage Ratio (2) | 10.82 | % | 10.57 | % |
________________
(1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to the calculation of this item.
(2) Effective March 31, 2020, the Bank opted in to the Community Bank Leverage Ratio (CBLR) framework. As such, the other regulatory ratios are no longer provided.
| FIRST CAPITAL, INC. AND SUBSIDIARIES Consolidated Average Balance Sheets (Unaudited) | ||||||||||||||||||||
| For the Three Months ended September 30, | ||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||
| Average | Average | |||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||
| Loans (1) (2): | ||||||||||||||||||||
| Taxable | $ | 640,178 | $ | 10,323 | 6.45 | % | $ | 627,244 | $ | 9,633 | 6.14 | % | ||||||||
| Tax-exempt (3) | 10,328 | 109 | 4.22 | % | 10,405 | 105 | 4.04 | % | ||||||||||||
| Total loans | 650,506 | 10,432 | 6.41 | % | 637,649 | 9,738 | 6.11 | % | ||||||||||||
| Investment securities: | ||||||||||||||||||||
| Taxable (4) | 318,628 | 2,282 | 2.86 | % | 328,441 | 1,757 | 2.14 | % | ||||||||||||
| Tax-exempt (3) | 118,840 | 866 | 2.91 | % | 118,360 | 795 | 2.69 | % | ||||||||||||
| Total investment securities | 437,468 | 3,148 | 2.88 | % | 446,801 | 2,552 | 2.28 | % | ||||||||||||
| Interest bearing deposits with banks (5) | 115,623 | 1,283 | 4.44 | % | 83,761 | 1,123 | 5.36 | % | ||||||||||||
| Total interest earning assets | 1,203,597 | 14,863 | 4.94 | % | 1,168,211 | 13,413 | 4.59 | % | ||||||||||||
| Non-interest earning assets | 33,930 | 28,584 | ||||||||||||||||||
| Total assets | $ | 1,237,527 | $ | 1,196,795 | ||||||||||||||||
| Interest bearing liabilities: | ||||||||||||||||||||
| Interest-bearing demand deposits | $ | 437,040 | $ | 1,318 | 1.21 | % | $ | 452,173 | $ | 1,777 | 1.57 | % | ||||||||
| Savings accounts | 227,997 | 154 | 0.27 | % | 226,683 | 205 | 0.36 | % | ||||||||||||
| Time deposits | 226,309 | 2,230 | 3.94 | % | 163,271 | 1,706 | 4.18 | % | ||||||||||||
| Total deposits | 891,346 | 3,702 | 1.66 | % | 842,127 | 3,688 | 1.75 | % | ||||||||||||
| FHLB Advances | — | — | — | — | — | — | ||||||||||||||
| Bank Term Funding Program Borrowings | — | — | — | 33,625 | 411 | 4.89 | % | |||||||||||||
| Total interest bearing liabilities | 891,346 | 3,702 | 1.66 | % | 875,752 | 4,099 | 1.87 | % | ||||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||||
| Non-interest bearing deposits | 211,573 | 202,404 | ||||||||||||||||||
| Other liabilities | 9,236 | 8,004 | ||||||||||||||||||
| Total liabilities | 1,112,155 | 1,086,160 | ||||||||||||||||||
| Stockholders' equity (6) | 125,372 | 110,635 | ||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,237,527 | $ | 1,196,795 | ||||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 11,161 | $ | 9,314 | ||||||||||||||||
| Less: tax equivalent adjustment | (205 | ) | (189 | ) | ||||||||||||||||
| Net interest income | $ | 10,956 | $ | 9,125 | ||||||||||||||||
| Interest rate spread | 3.21 | % | 2.66 | % | ||||||||||||||||
| Interest rate spread (tax-equivalent basis) (7) | 3.28 | % | 2.72 | % | ||||||||||||||||
| Net interest margin | 3.64 | % | 3.12 | % | ||||||||||||||||
| Net interest margin (tax-equivalent basis) (7) | 3.71 | % | 3.19 | % | ||||||||||||||||
| Ratio of average interest earning assets to average interest bearing liabilities | 135.03 | % | 133.40 | % |
________________
(1) Interest income on loans includes fee income of $202,000 and $159,000 for the three months ended September 30, 2025 and 2024, respectively.
(2) Average loan balances include loans held for sale and nonperforming loans.
(3) Tax-exempt income has been adjusted to a tax-equivalent basis using the federal marginal tax rate of 21%.
(4) Includes taxable debt and equity securities and FHLB Stock.
(5) Includes interest-bearing deposits with banks and interest-bearing time deposits.
(6) Stockholders' equity attributable to First Capital, Inc.
(7) Reconciliations of the non–U.S. GAAP measures are set forth at the end of this press release.
| FIRST CAPITAL, INC. AND SUBSIDIARIES Consolidated Average Balance Sheets (Unaudited) | ||||||||||||||||||||
| For the Nine Months ended September 30, | ||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||
| Average | Average | |||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||
| Loans (1) (2): | ||||||||||||||||||||
| Taxable | $ | 638,950 | $ | 30,172 | 6.30 | % | $ | 623,208 | $ | 28,226 | 6.04 | % | ||||||||
| Tax-exempt (3) | 10,632 | 337 | 4.23 | % | 9,290 | 254 | 3.65 | % | ||||||||||||
| Total loans | 649,582 | 30,509 | 6.26 | % | 632,498 | 28,480 | 6.00 | % | ||||||||||||
| Investment securities: | ||||||||||||||||||||
| Taxable (4) | 312,409 | 6,146 | 2.62 | % | 339,525 | 5,179 | 2.03 | % | ||||||||||||
| Tax-exempt (3) | 118,714 | 2,529 | 2.84 | % | 122,115 | 2,491 | 2.72 | % | ||||||||||||
| Total investment securities | 431,123 | 8,675 | 2.68 | % | 461,640 | 7,670 | 2.22 | % | ||||||||||||
| Interest bearing deposits with banks (5) | 104,396 | 3,462 | 4.42 | % | 42,962 | 1,706 | 5.29 | % | ||||||||||||
| Total interest earning assets | 1,185,101 | 42,646 | 4.80 | % | 1,137,100 | 37,856 | 4.44 | % | ||||||||||||
| Non-interest earning assets | 32,472 | 27,721 | ||||||||||||||||||
| Total assets | $ | 1,217,573 | $ | 1,164,821 | ||||||||||||||||
| Interest bearing liabilities: | ||||||||||||||||||||
| Interest-bearing demand deposits | $ | 438,971 | $ | 4,061 | 1.23 | % | $ | 432,126 | $ | 4,551 | 1.40 | % | ||||||||
| Savings accounts | 227,231 | 482 | 0.28 | % | 232,382 | 650 | 0.37 | % | ||||||||||||
| Time deposits | 219,751 | 6,552 | 3.98 | % | 146,939 | 4,396 | 3.99 | % | ||||||||||||
| Total deposits | 885,953 | 11,095 | 1.67 | % | 811,447 | 9,597 | 1.58 | % | ||||||||||||
| FHLB Advances | — | — | — | 2,319 | 99 | 5.69 | % | |||||||||||||
| Bank Term Funding Program Borrowings | — | — | — | 33,055 | 1,201 | 4.84 | % | |||||||||||||
| Total interest bearing liabilities | 885,953 | 11,095 | 1.67 | % | 846,821 | 10,897 | 1.72 | % | ||||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||||
| Non-interest bearing deposits | 202,719 | 204,267 | ||||||||||||||||||
| Other liabilities | 8,287 | 6,959 | ||||||||||||||||||
| Total liabilities | 1,096,959 | 1,058,047 | ||||||||||||||||||
| Stockholders' equity (6) | 120,614 | 106,774 | ||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,217,573 | $ | 1,164,821 | ||||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 31,551 | $ | 26,959 | ||||||||||||||||
| Less: tax equivalent adjustment | (602 | ) | (577 | ) | ||||||||||||||||
| Net interest income | $ | 30,949 | $ | 26,382 | ||||||||||||||||
| Interest rate spread | 3.06 | % | 2.65 | % | ||||||||||||||||
| Interest rate spread (tax-equivalent basis) (7) | 3.13 | % | 2.72 | % | ||||||||||||||||
| Net interest margin | 3.48 | % | 3.09 | % | ||||||||||||||||
| Net interest margin (tax-equivalent basis) (7) | 3.55 | % | 3.16 | % | ||||||||||||||||
| Ratio of average interest earning assets to average interest bearing liabilities | 133.77 | % | 134.28 | % |
________________
(1) Interest income on loans includes fee income of $599,000 and $517,000 for the nine months ended September 30, 2025 and 2024, respectively.
(2) Average loan balances include loans held for sale and nonperforming loans.
(3) Tax-exempt income has been adjusted to a tax-equivalent basis using the federal marginal tax rate of 21%.
(4) Includes taxable debt and equity securities and FHLB Stock.
(5) Includes interest-bearing deposits with banks and interest-bearing time deposits.
(6) Stockholders' equity attributable to First Capital, Inc.
(7) Reconciliations of the non–U.S. GAAP measures are set forth at the end of this press release.
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company's performance. Management believes that these non-GAAP financial measures allow for better comparability with prior periods, as well as with peers in the industry who provide a similar presentation, and provide a further understanding of the Company's ongoing operations. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Net interest income (A) | $ | 10,956 | $ | 9,125 | $ | 30,949 | $ | 26,382 | ||||||||
| Add: Tax-equivalent adjustment | 205 | 189 | 602 | 577 | ||||||||||||
| Tax-equivalent net interest income (B) | 11,161 | 9,314 | 31,551 | 26,959 | ||||||||||||
| Average interest earning assets (C) | 1,203,597 | 1,168,211 | 1,185,101 | 1,137,100 | ||||||||||||
| Net interest margin (A)/(C) | 3.64 | % | 3.12 | % | 3.48 | % | 3.09 | % | ||||||||
| Net interest margin (tax-equivalent basis) (B)/(C) | 3.71 | % | 3.19 | % | 3.55 | % | 3.16 | % | ||||||||
| Total interest income (D) | $ | 14,658 | $ | 13,224 | $ | 42,044 | $ | 37,279 | ||||||||
| Add: Tax-equivalent adjustment | 205 | 189 | 602 | 577 | ||||||||||||
| Total interest income tax-equivalent basis (E) | 14,863 | 13,413 | 42,646 | 37,856 | ||||||||||||
| Average interest earning assets (F) | 1,203,597 | 1,168,211 | 1,185,101 | 1,137,100 | ||||||||||||
| Average yield on interest earning assets (D)/(F); (G) | 4.87 | % | 4.53 | % | 4.73 | % | 4.37 | % | ||||||||
| Average yield on interest earning assets tax-equivalent (E)/(F); (H) | 4.94 | % | 4.59 | % | 4.80 | % | 4.44 | % | ||||||||
| Average cost of interest bearing liabilities (I) | 1.66 | % | 1.87 | % | 1.67 | % | 1.72 | % | ||||||||
| Interest rate spread (G)-(I) | 3.21 | % | 2.66 | % | 3.06 | % | 2.65 | % | ||||||||
| Interest rate spread tax-equivalent (H)-(I) | 3.28 | % | 2.72 | % | 3.13 | % | 2.72 | % |
FAQ**
What factors contributed to the increase in net income for First Capital Inc. (FCAP) from $2.9 million in Q3 2024 to $4.5 million in Q3 2025, and how sustainable do you believe this growth is moving forward?
How does First Capital Inc. (FCAP) plan to address the increase in noninterest expenses, particularly in compensation and benefits, which rose by $540,000 in Q3 20compared to the same period in 2024?
Given the significant increase in interest income for First Capital Inc. (FCAP), what strategies are in place to maintain or further enhance the average tax-equivalent yield on interest-earning assets in the upcoming quarters?
What are the primary risks identified by First Capital Inc. (FCAP) that could impact future performance, especially in light of the decrease in nonperforming assets and changes in the macroeconomic environment?
**MWN-AI FAQ is based on asking OpenAI questions about First Capital Inc. (NASDAQ: FCAP).
NASDAQ: FCAP
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