Company: FCAP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001171843-25-001868
Chunk: 23

Company: FIRST CAPITAL INC
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 23
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 of an institution’s net worth or on the FHLB’s assessment of the institution’s creditworthiness.  Under its current credit policies, the FHLB generally limits advances to 20% of a member’s assets, and short-term borrowing of less than one year may not exceed 10% of the institution’s assets.  The FHLB determines specific lines of credit for each member institution.

On March 12, 2023, the FRB created the Bank Term Funding Program (“BTFP”) to make additional funding available to eligible depository institutions. The BTFP offered loans of up to one year in length to banks, savings associations, credit unions and other depository institutions that pledge collateral, such as U.S. Treasuries, U.S. agency notes and bonds and U.S. agency mortgage-backed securities. The collateral was valued at par, and advances under this program did not include any fees or prepayment penalties. Effective March 11, 2024, the BTFP ceased making new loans.

The Bank also has access to the FRB’s Discount Window for borrowings. The Bank has pledged certain U.S. Treasuries and U.S. agency notes and bonds to secure borrowings through the Discount Window, if needed. While the Bank has conducted a test borrowing through the Discount Window, at December 31, 2024, there were no borrowings outstanding through the Discount Window.

On February 28, 2024, the Bank entered into an Overdraft Line of Credit Agreement with the FHLB which established a line of credit not to exceed $10.0 million secured under a blanket collateral agreement.  This agreement expires on February 28, 2025.  At December 31, 2024, there were no borrowings under the agreement.

The Bank utilized both advances from the FHLB and borrowings under the BTFP throughout the year ended December 31, 2024.  The Bank had no outstanding borrowings at December 31, 2024.  See Note 10 in the accompanying Notes to Consolidated Financial Statements for additional information regarding the Bank’s utilization of borrowed funds during the year ended December 31, 2024.

The Bank also has an unsecured federal funds purchased line of credit through Independent Correspondent Bankers’ Bank with a maximum borrowing amount of $5.0 million and a $2.0 million revolving line of credit with Stock Yards Bank & Trust Company.  At December 31,