First Capital(US:FCAP)2025-10-24 20:45Financial Performance - For the quarter ended September 30, 2025, First Capital, Inc. reported net income of $4.5 million, or $1.34 per diluted share, a significant increase from $2.9 million, or $0.87 per diluted share, for the same period in 2024, representing a 55.2% increase in net income[1] - For the nine months ended September 30, 2025, net income was $11.5 million, or $3.43 per diluted share, compared to $8.7 million, or $2.59 per diluted share, for the same period in 2024, marking a 32.2% increase in net income[7] - Net income attributable to First Capital, Inc. increased to $4,478,000 in Q3 2025, a 54.7% rise compared to $2,898,000 in Q3 2024[24] Interest Income and Margin - Net interest income after provision for credit losses increased by $2.1 million for the quarter ended September 30, 2025, driven by an increase in interest income of $1.4 million and a tax-equivalent net interest margin increase from 3.19% to 3.71%[2] - Total interest income for Q3 2025 was $14,658,000, an increase of 10.9% from $13,224,000 in Q3 2024[24] - For the nine months ended September 30, 2025, net interest income was $30,949,000, an increase from $26,382,000 in the same period of 2024, representing a growth of 10.8%[34] - Total interest income for the nine months ended September 30, 2025, was $42,044,000, compared to $37,279,000 in 2024, reflecting an increase of 12.3%[34] - The net interest margin for the nine months ended September 30, 2025, was 3.48%, compared to 3.09% in 2024, showing an improvement of 12.6%[34] Credit Quality - The provision for credit losses decreased from $463,000 in Q3 2024 to $150,000 in Q3 2025, reflecting improved credit quality with net charge-offs of $17,000 in Q3 2025 compared to $64,000 in Q3 2024[3] - Non-performing assets included nonaccrual loans of $3,866,000 as of September 30, 2025, down from $4,382,000 at the end of 2024[25] - Nonperforming assets decreased from $4.4 million at December 31, 2024, to $3.9 million at September 30, 2025, indicating improved asset quality[15] Expenses and Tax - Noninterest expenses increased by $540,000 for the quarter ended September 30, 2025, mainly due to higher occupancy and equipment costs of $331,000 and compensation and benefits expenses of $202,000[5] - The effective tax rate increased to 19.2% for the quarter ended September 30, 2025, up from 15.6% in the same period last year, resulting in an increase in income tax expense of $530,000[6] Assets and Equity - Total assets increased to $1.24 billion at September 30, 2025, up from $1.19 billion at December 31, 2024, with deposits rising by $28.3 million to $1.09 billion[15] - Total assets grew to $1,235,477,000 as of September 30, 2025, compared to $1,187,523,000 at the end of 2024, reflecting a 4.0% increase[25] - Stockholders' equity as of September 30, 2025, was $120,614,000, an increase from $106,774,000 in 2024, representing a growth of 12.9%[31] Loans and Deposits - Gross loans increased to $652,193,000 as of September 30, 2025, up from $640,480,000 at the end of 2024, representing a growth of 1.1%[25] - Total deposits for the nine months ended September 30, 2025, were $885,953,000, compared to $811,447,000 in 2024, reflecting an increase of 9.2%[31] Operational Metrics - The Community Bank Leverage Ratio was 10.82% as of September 30, 2025, compared to 10.57% at the end of 2024[25] - Return on average assets (annualized) improved to 1.45% in Q3 2025 from 0.97% in Q3 2024[24] - The average yield on interest-earning assets for the nine months ended September 30, 2025, was 4.73%, up from 4.37% in 2024, indicating a rise of 8.2%[34] - The interest rate spread for the nine months ended September 30, 2025, was 3.06%, up from 2.65% in 2024, indicating an increase of 15.5%[34] - The average cost of interest-bearing liabilities for the nine months ended September 30, 2025, was 1.67%, a slight decrease from 1.72% in 2024[34] Dividends - Cash dividends per share rose to $0.31 in Q3 2025, compared to $0.29 in Q3 2024, marking a 6.9% increase[24] Market Presence - The company currently operates 17 offices across Indiana and Kentucky, supporting its market presence and customer accessibility[16]