First Capital(FCAP) - 2024 Q3 - Quarterly Results

Net Income and Earnings Per Share - Net income for Q3 2024 was $2.9 million, or$ 0.87 per diluted share, compared to $3.1 million, or$ 0.94 per diluted share, in Q3 2023[1] - For the nine months ended September 30, 2024, net income was $8.7 million, or$ 2.59 per diluted share, compared to $9.7 million, or$ 2.89 per diluted share, in the same period in 2023[7] - Net income attributable to First Capital, Inc. for the nine months ended September 30, 2024, was $8,678, compared to$ 9,680 for the same period in 2023[17] - Basic net income per share for the nine months ended September 30, 2024, was $2.59, compared to$ 2.89 for the same period in 2023[18] Net Interest Income and Margin - Net interest income after provision for credit losses increased by $415,000 in Q3 2024 compared to Q3 2023, driven by a rise in the average yield on interest-earning assets from 3.96% to 4.53%[2] - The average balance of interest-earning assets increased from$ 1.13 billion in Q3 2023 to $1.17 billion in Q3 2024, with loans yielding 6.09% compared to 5.74% in the same period last year[2] - Net interest margin decreased slightly from 3.10% for the nine months ended September 30, 2023, to 3.09% for the same period in 2024[8] - Net interest margin for the nine months ended September 30, 2024, was 3.09%, compared to 3.10% for the same period in 2023[19] Provision for Credit Losses and Loan Performance - Provision for credit losses increased from$ 290,000 in Q3 2023 to $463,000 in Q3 2024 due to loan growth and macroeconomic uncertainty[3] - Nonperforming assets increased from$ 1.8 million at December 31, 2023, to $4.5 million at September 30, 2024, primarily due to the nonaccrual classification of two commercial loan relationships totaling$ 2.6 million[12] - Gross loans as of September 30, 2024, were $639,566, compared to$ 622,414 as of December 31, 2023[21] - Allowance for credit losses as a percent of gross loans was 1.40% as of September 30, 2024, compared to 1.29% as of December 31, 2023[21] Noninterest Income and Expenses - Noninterest income decreased by $147,000 in Q3 2024, primarily due to a$ 196,000 loss on equity securities compared to a $131,000 loss in Q3 2023[4] - Noninterest expenses increased by$ 543,000 in Q3 2024, driven by higher professional fees ( $213,000) and compensation and benefits ($ 160,000)[5] - Net overhead expense as a percentage of average assets (annualized) for the nine months ended September 30, 2024, was 2.38%, compared to 2.28% for the same period in 2023[19] Asset and Liability Management - Total assets increased from $1.16 billion at December 31, 2023, to$ 1.19 billion at September 30, 2024, with net loans receivable and cash equivalents rising by $16.2 million and$ 51.3 million, respectively[12] - Total assets as of September 30, 2024, were $1,189,295, compared to$ 1,157,880 as of December 31, 2023[21] - Community Bank Leverage Ratio (CBLR) as of September 30, 2024, was 10.25%, compared to 9.92% as of December 31, 2023[22] Return on Equity and Dividends - Return on average equity (annualized) for the nine months ended September 30, 2024, was 10.84%, compared to 14.14% for the same period in 2023[19] - Cash dividends per share for the nine months ended September 30, 2024, were $0.83, compared to$ 0.81 for the same period in 2023[19]