Company: FCAP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001171843-25-001868
Chunk: 1438

Company: FIRST CAPITAL INC
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 1438
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 In addition, the Company established an ACL related to unfunded loan commitments of $131,000 upon adoption of CECL. The use of the modified retrospective method of adoption resulted in the Company recording a $529,000 reduction (net of tax) in retained earnings as of January 1, 2023. Results for reporting periods after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP.

F-19

FIRST CAPITAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(1 - continued)

Recent Accounting Pronouncements – continued

The Company expanded the loan portfolio segments used to determine the ACL on loans into eight loan segments as opposed to seven loan segments under the incurred loss methodology. The following table illustrates the impact of the segment expansion as of January 1, 2023.

			Segment

			Amortized Cost at

			Amortized Cost at

			Portfolio

			December 31, 2022

			(In thousands)

			December 31, 2022

			Reclassification

			after Reclassification

			Residential

			$
			155,445

			$
			(155,445
			)
			 
			$
			-

			1-4 Family Residential Mortgage

			-

			116,392

			116,392

			Multifamily Residential

			-

			38,962

			38,962

			Home Equity and Second Mortgage

			58,985

			92

			59,077

			Commercial Real Estate

			161,332

			(62
			)

			161,270

			Construction

			42,259

			(42,259
			)

			-

			Land

			21,874

			(21,874
			)

			-

			1-4 Family Residential Construction

			-

			16,575

			16,575

			Other Construction, Development and Land

			-

			47,633

			47,633

			Commercial Business

			60,806

			7,248

			68,054

			Consumer and Other

			64,029

			(7,262