Equity and Capital - Total stockholders' equity increased from 116.8 million at September 30, 2024, driven by a 5.5 million net unrealized gain on available-for-sale securities[151] - The Bank's Community Bank Leverage Ratio (CBLR) was 10.24% as of September 30, 2024, compared to 9.92% as of December 31, 2023, and the Bank was considered "well-capitalized" under regulatory guidelines[173] Net Income and Earnings - Net income for Q3 2024 was 0.87 per diluted share), compared to 0.94 per diluted share) in Q3 2023[151] - Net income for the nine months ended September 30, 2024, was 2.59 per diluted share), compared to 2.89 per diluted share) for the same period in 2023[161] Interest Income and Expense - Net interest income after provision for credit losses increased by 2.0 million in Q3 2024, driven by a rise in the average yield on interest-earning assets from 3.96% to 4.53% and an increase in the average balance of interest-earning assets from 1.17 billion[153] - Total interest expense increased by 813.2 million to 290,000 in Q3 2023 to 147,000 in Q3 2024, primarily due to a 131,000 loss in Q3 2023[157] Interest Rate Sensitivity and Risk Management - The company uses a Net Interest Income at Risk simulation to model interest rate sensitivity, quantifying the impact of changing interest rates on projected net interest income over a one-year horizon[179] - The Economic Value of Equity (EVE) interest rate sensitivity analysis is used to evaluate the impact of interest rate risk on earnings and capital, measuring changes in net EVE for cash flows from assets, liabilities, and off-balance sheet items[182] - A 300 basis point increase in interest rates would result in a 6.134 million decrease in EVE, representing a 2.91% decline[185] - A 100 basis point increase in interest rates would result in a 1.569 million decrease in EVE, representing a 0.74% decline[185] - A 200 basis point decrease in interest rates would result in a 19.668 million decrease in EVE, representing a 9.33% decline[185] - The company adjusted deposit rate betas, interest rate spreads, and rate index ties in its scenarios to better reflect the current interest rate environment and increased competitive pressure for deposits[185] Internal Controls - There have been no material changes to the company's internal control over financial reporting during the quarter ended September 30, 2024[189]
First Capital(FCAP) - 2024 Q3 - Quarterly Report