Company: FCAP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001171843-25-001868
Chunk: 1044

Company: FIRST CAPITAL INC
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 1044
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 also be affected by the monetary and fiscal policies of the U.S. Government and its agencies, particularly the FRB. 

An element in the Company’s ongoing process is to measure and monitor interest rate risk using a Net Interest Income at Risk simulation to model the interest rate sensitivity of the balance sheet and to quantify the impact of changing interest rates on the Company.  The model quantifies the effects of various possible interest rate scenarios on projected net interest income over a one-year horizon. The model assumes a semi-static balance sheet and measures the impact on net interest income relative to a base case scenario of hypothetical changes in interest rates over twelve months and provides no effect given to any steps that management might take to counter the effect of the interest rate movements.  The scenarios include prepayment assumptions, changes in the level of interest rates, the shape of the yield curve, and spreads between market interest rates in order to capture the impact from re-pricing, yield curve, option, and basis risks. 

Results of the Company’s simulation modeling, which assumes an immediate and sustained parallel shift in market interest rates, project that the Company’s net interest income could change as follows over a one-year horizon, relative to our base case scenario, based on December 31, 2024 and 2023 financial information. 

			At December 31, 2024

			At December 31, 2023

			Immediate Change

			One Year Horizon

			One Year Horizon

			in the Level

			Dollar

			Percent

			Dollar

			Percent

			of Interest Rates

			Change

			Change

			Change

			Change

			(Dollars in thousands)

			300bp

			$
			1,314

			3.56
			%
			 
			$
			503

			1.44
			%

			200bp

			1,154

			3.13

			354

			1.01

			100bp

			656

			1.78

			199

			0.57

			Static

			-

			-

			-

			-

			(100)bp

			(897
			)

			(2.43
			)

			72

			0.21

			(200)bp

			(1,681