Company: FCAP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001171843-25-001868
Chunk: 657

Company: FIRST CAPITAL INC
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 657
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 with local schools, to uphold our high standing in our community and marketing to our next generation of customers.

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			Improving profitability by expanding our product offerings to customers and leveraging recent investments in technology to increase the productivity and efficiency of our staff.  We continue to implement recommendations from a previously completed profit improvement project conducted by an outside consulting firm that we believe will improve overall profitability in future periods through increased noninterest income and decreased noninterest expenses.

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			Continuing to emphasize commercial real estate and other commercial business lending as well as consumer lending.  The Bank will also continue to focus on increasing secondary market lending as a source of noninterest income.  Management intends to continue to focus on growth in the loan portfolio and the secondary market lending programs in our market areas.  

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			Growing commercial and personal demand deposit accounts which provide a low-cost funding source.

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			Continuing to evaluate vendor contracts for potential cost savings and efficiencies.

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			Continuing our capital management strategy to enhance shareholder value through the repurchase of Company stock and the payment of dividends.

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			Evaluating growth opportunities to expand the Bank’s market area and market share through acquisitions of other financial institutions or branches of other institutions.  Our focus in 2025 will be to continue the enhancement and expansion of our customer relationships in these and surrounding markets.

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			Ensuring that the Company attracts and retains talented personnel and that an optimal level of performance and customer service is promoted at all levels of the Company.

42

Critical Accounting Policies and Estimates

The accounting and reporting policies of the Company comply with U.S. GAAP and conform to general practices within the banking industry.  The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions.  The financial position and results of operations can be affected by these estimates and assumptions, which are integral to understanding reported results.  Critical accounting policies are those policies that require management to make assumptions about matters that are highly uncertain at the time an accounting estimate is made; and different estimates that the Company reasonably could have used in the current period, or changes in the accounting estimate that are reasonably likely to occur from period to period, would have a material impact on the Company’s financial condition, changes in financial condition or results of operations.  Most accounting policies are not considered by management to be critical accounting policies.  Several factors are considered in determining