Company: FCAP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001171843-25-003186
Chunk: 59

Company: FIRST CAPITAL INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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 December 31, 2025.

The investments are accounted for using the proportional amortization method.  During the three month periods ended March 31, 2025 and 2024, the Bank recognized amortization expense of $299,000 and $505,000, respectively, as a component of income tax expense on the consolidated statements of income.  Additionally, during the three month periods ended March 31, 2025 and 2024, the Bank recognized income tax credits and other income tax benefits from its solar energy tax credit investment of $304,000 and $596,000, respectively, which was included in income tax expense on the consolidated statements of income. 

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FIRST CAPITAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

			7.

			Borrowed Funds

At March 31, 2025 and December 31, 2024, the Company had no outstanding borrowings. 

On March 12, 2023, the FRB created the 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 which pledged collateral, such as U.S. Treasuries, U.S. agency notes and bonds and U.S. agency mortgage-backed securities. The collateral is valued at par, and advances under this program did not include any fees or prepayment penalties.  In January 2024, the Company repaid all outstanding borrowings under the BTFP and advances from the FHLB and then borrowed $33.6 million under the BTFP at a fixed rate of 4.85% for a one-year period. Effective March 11, 2024, the BTFP ceased making new loans.  All BTFP advances were repaid in October and November 2024.

The Company also has access to the FRB Discount Window for Borrowings.  The Company has pledged certain U.S Treasuries and U.S. agency notes and bonds with a carrying value of $16.7 million to secure borrowings through the Discount Window, if needed. While the Company has conducted a test of borrowing through the Discount Window, there were no borrowings outstanding through the Discount Window at March 31, 2025 or December 31, 2024.

FHLB advances are secured under a blanket collateral agreement. At March 31,