Company: FCAP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001171843-25-001868
Chunk: 779

Company: FIRST CAPITAL INC
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 779
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 The Bank’s results of operations are also significantly affected by general economic and competitive conditions, particularly changes in market interest rates, government legislation and policies concerning monetary and fiscal affairs, housing and financial institutions and the intended actions of the regulatory authorities.

Management uses various indicators to evaluate the Company’s financial condition and results of operations.  Indicators include the following:

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			Net income and earnings per share – Net income attributable to the Company was $11.9 million, or $3.57 per diluted share for 2024 compared to $12.8 million, or $3.82 per diluted share for 2023 and $11.9 million, or $3.55 per diluted share for 2022.  

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			Return on average assets and return on average equity – Return on average assets for 2024 was 1.02% compared to 1.12% for 2023 and 1.03% for 2022, and return on average equity for 2024 was 10.97% compared to 14.03% for 2023 and 13.07% for 2022.  

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			Efficiency ratio – The Company’s efficiency ratio (defined as noninterest expenses divided by net interest income plus noninterest income) was 64.1% for 2024 compared to 61.6% for 2023 and 62.3% for 2022.

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			Asset quality – Net loan charge-offs totaled $261,000 for 2022, $469,000 for 2023 and $173,000 for 2024, and the ratio of net charge-offs to average loans outstanding remained virtually unchanged at 0.05% for 2022, 0.08% for 2023 and 0.03% for 2024.  In addition, total nonperforming assets (consisting of nonperforming loans and foreclosed real estate) increased from $1.8 million, or 0.15% of total assets, at December 31, 2023 to $4.4 million, or 0.37% of total assets, at December 31, 2024. The increase was primarily due to the nonaccrual classification of two commercial loan relationships totaling $2.6 million. Loans in the relationships are secured by a variety of real estate and business assets