Company: FCAP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001171843-25-003186
Chunk: 49

Company: FIRST CAPITAL INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 49
---

			Total

			(In thousands) 

			ACL on Loans:

			Beginning balance

			$
			1,490

			$
			406

			$
			332

			$
			208

			$
			804

			$
			2,119

			$
			1,431

			$
			1,215

			$
			8,005

			Provision for credit losses

			(152
			)

			35

			91

			(16
			)

			7

			634

			(129
			)

			(190
			)

			280

			Charge-offs

			(1
			)

			-

			-

			-

			-

			-

			-

			(99
			)

			(100
			)

			Recoveries

			1

			3

			-

			-

			-

			1

			-

			40

			45

			Ending balance

			$
			1,338

			$
			444

			$
			423

			$
			192

			$
			811

			$
			2,754

			$
			1,302

			$
			966

			$
			8,230

Accrued interest on loans of $2.4 million at March 31, 2025 and December 31, 2024 is included in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses.

-17-

FIRST CAPITAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(4 – continued)

The Company utilizes the Weighted Average Remaining Maturity (“WARM”) method in determining expected future credit losses. The WARM method uses average annual charge-off rates and the remaining life of the loan to estimate the ACL.  For the Company’s loan portfolios, the remaining contractual life for each loan is adjusted by the expected scheduled payments and estimated prepayments.  The average annual charge-off rate is applied to the amortization adjusted remaining life of the loan to determine the unadjusted lifetime historical charge-off rate. The Company’s expected loss estimate is anchored in historical credit loss experience, with an