Company: FCAP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001171843-25-003186
Chunk: 76

Company: FIRST CAPITAL INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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 2025, in addition to an increase in the average balance of interest-earning assets from $1.12 billion for the quarter ended March 31, 2024 to $1.17 billion for the same period in 2025.

Total interest expense increased $528,000 as the average cost of interest-bearing liabilities increased from 1.55% for the quarter ended March 31, 2024 to 1.71% for the same period in 2025, in addition to an increase in the average balance of interest-bearing liabilities from $833.7 million for the quarter ended March 31, 2024 to $881.6 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 increased from 3.14% for the quarter ended March 31, 2024 to 3.34% for the same period in 2025. 

Provision for credit losses.  Based on management’s analysis of the ACL on loans and unfunded loan commitments, the provision for credit losses increased from $280,000 for the quarter ended March 31, 2024 to $338,000 for the quarter ended March 31, 2025. The increase was due to loan growth during the period as well as management’s consideration of macroeconomic uncertainty. The Bank recognized net charge-offs of $84,000 and $55,000 for the quarters ended March 31, 2025 and 2024, respectively.

Noninterest income.  Noninterest income decreased $51,000 for the quarter ended March 31, 2025 as compared to the quarter ended March 31, 2024 primarily due to the Company recognizing a $55,000 loss on sale of available for sale securities for the quarter ended March 31, 2025 compared to a $32,000 gain on sale of available for sale securities for the quarter ended March 31, 2024.  The Company also recognized decreases of $38,000 and $24,000 in other income and ATM and debit card fees, respectively, when comparing the two periods. These were partially offset by the Company recognizing an $18,000 gain on equity securities during the quarter ended March 31, 2025 compared to a loss of $68,000 during the same period in 2024.

Noninterest expense.  Noninterest expenses increased $424,000 for the quarter ended March