Company: FCAP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001171843-25-001868
Chunk: 1380

Company: FIRST CAPITAL INC
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 1380
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 primarily in interest-bearing deposits with the FHLB and other financial institutions, federal funds sold, U.S. government and agency securities, local municipal obligations and mortgage-backed securities.

In recent years, the Company’s operating strategy has also included strategies designed to enhance profitability by increasing sources of noninterest income and improving operating efficiency while managing its capital and limiting its credit risk and interest rate risk exposures.  To accomplish these objectives, the Company has focused on the following:

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			Monitoring asset quality and credit risk in the loan and investment portfolios and originating high-quality commercial and consumer loans.  In 2025, management will continue to focus on maintaining a reduced level of nonperforming assets through improved collection efforts and underwriting on nonperforming loans.

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			Being active in the local community, particularly through our efforts 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.

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Critical Accounting Policies and Estimates

The accounting and