Company: FCAP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001171843-25-001868
Chunk: 780

Company: FIRST CAPITAL INC
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 780
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. The ACL on loans was 1.45% of total outstanding loans and 211.8% of nonaccrual loans at December 31, 2024 compared to 1.29% of total outstanding loans and 457.2% of nonaccrual loans at December 31, 2023.

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			Shareholder return – Total annual shareholder return, including the increase in the Company’s stock price from $27.90 at December 31, 2023 to $32.25 at December 31, 2024 and dividends of $1.12 per share, was 19.6% for 2024 compared to 16.4% for 2023 and -36.0% for 2022.  The total return for the three-year period was -10.8%.

Management’s discussion and analysis of financial condition and results of operations is intended to assist in understanding the financial condition and results of operations of the Company and the Bank.  The information contained in this section should be read in conjunction with the consolidated financial statements and the accompanying Notes to Consolidated Financial Statements included in this report.

41

Operating Strategy

The Company is the parent company of an independent community-oriented financial institution that delivers quality customer service and offers a wide range of deposit, loan and investment products to its customers.  The commitment to customer needs, the focus on providing consistent customer service, and community service and support are the keys to the Bank’s past and future success.  The Company has no other material income other than that generated by the Bank and its subsidiaries.

The Bank’s primary business strategy is attracting deposits from the general public and using those funds to originate residential mortgage loans, multi-family residential loans, commercial real estate and business loans and consumer loans.  The Bank invests excess liquidity 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