Company: FCAP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001171843-25-001868
Chunk: 248

Company: FIRST CAPITAL INC
Filing Date: 2025-03-31
Form: 10-K
Item: Item 10
Chunk 248
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			)

			(246
			)

			Acquisition purchase accounting adjustments

			(228
			)

			(270
			)

			Other

			(23
			)

			(58
			)

			Deferred tax liabilities

			(1,682
			)

			(1,768
			)

			Net deferred tax asset

			$
			8,283

			$
			8,278

At December 31, 2024 and 2023, the Company had state tax credit carryforwards of $305,000 and $381,000, respectively, that may be carried forward nine years and expire in 2032 if unused.

At December 31, 2024 and 2023, the Company had no liability for unrecognized income tax benefits related to uncertain tax positions and does not anticipate any increase in the liability for unrecognized tax benefits during the next twelve months.   The Company believes that its income tax positions would be sustained upon examination and does not anticipate any adjustments that would result in a material change to its financial position or results of operations.  The Company files consolidated U.S. federal income tax returns and Indiana and Kentucky state income tax returns.  Returns filed in these jurisdictions for tax years ended on or after December 31, 2021 are subject to examination by the relevant taxing authorities.  Each entity included in the consolidated federal, Indiana and Kentucky state income tax returns filed by the Company are charged or given credit for the applicable tax as though separate returns were filed.

Retained earnings of the Bank at December 31, 2024 and 2023 include approximately $909,000 for which no deferred federal income tax liability has been recognized.  This amount represents an allocation of income to bad debt deductions as of December 31, 1987 for tax purposes only.  Reduction of such allocated amounts for purposes other than tax bad debt losses, including redemption of bank stock, excess dividends or loss of “bank” status, would create income for tax purposes only, subject to the then-current corporate income tax rate.  The unrecorded deferred liability on these amounts was approximately $191,000 at December 31, 2024 and 2023.

F-45

FIRST CAPITAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

			(13)

			EMPLOYEE BENEFIT PLANS

Defined Contribution Plan:

The