First Capital(FCAP) - 2025 Q4 - Annual Results

Financial Performance - First Capital, Inc. reported a net income of $16.4 million, or $4.89 per diluted share, for the year ended December 31, 2025, compared to $11.9 million, or $3.57 per diluted share, for 2024, representing a 37.5% increase in net income year-over-year [1]. - For the quarter ended December 31, 2025, net income was $4.9 million, or $1.46 per diluted share, compared to $3.3 million, or $0.97 per diluted share, for the same period in 2024 [7]. - Net income attributable to First Capital, Inc. for the year ended December 31, 2025, was $16,367,000, representing a 37.5% increase from $11,940,000 in 2024 [23]. Interest Income and Margin - Net interest income after provision for credit losses increased by $6.7 million for the year ended December 31, 2025, driven by an increase in average tax-equivalent yield on interest-earning assets from 4.49% in 2024 to 4.85% in 2025 [2]. - Total interest income for Q4 2025 was $14,803,000, an increase of 12.2% from $13,192,000 in Q4 2024 [23]. - Net interest income after provision for credit losses rose to $10,851,000 in Q4 2025, up 19.6% from $9,062,000 in Q4 2024 [23]. - Net interest margin (tax-equivalent basis) for the year ended December 31, 2025, was 3.61%, compared to 3.20% in 2024 [27]. - The net interest margin for the three months ended December 31, 2025, improved to 3.72%, compared to 3.26% in the same period of 2024 [33]. Asset and Liability Management - Total assets increased to $1.27 billion at December 31, 2025, up from $1.19 billion at December 31, 2024, with deposits rising by $56.6 million to $1.12 billion [14]. - Total assets increased to $1,271,995,000 as of December 31, 2025, up from $1,187,523,000 in 2024, reflecting a growth of 7.1% [24]. - Stockholders' equity increased to $134,931,000 as of December 31, 2025, compared to $115,130,000 in 2024 [33]. - The ratio of average interest earning assets to average interest bearing liabilities was 135.89% for Q4 2025, slightly up from 134.18% in Q4 2024 [33]. Noninterest Income and Expenses - Noninterest income increased by $809,000 for the year ended December 31, 2025, primarily due to a $149,000 gain on equity securities compared to a $374,000 loss in 2024 [4]. - Noninterest income for the quarter ended December 31, 2025, increased by $358,000, driven by a $148,000 increase in gains on the sale of loans and a $53,000 increase in ATM and debit card fee income [11]. - Noninterest expenses rose by $1.7 million for the year ended December 31, 2025, mainly due to increases in compensation and benefits ($1.3 million) and occupancy and equipment expenses ($472,000) [5]. Credit Losses and Taxation - The provision for credit losses for the year decreased from $1.4 million in 2024 to $1.1 million in 2025, reflecting a lower incremental change in estimated lifetime expected credit losses [3]. - The effective tax rate increased to 17.7% for the year ended December 31, 2025, compared to 15.6% for 2024, due to a higher proportion of net income being subject to taxation [6]. Loan Growth - Gross loans reached $664,208,000 in 2025, an increase of 3.7% from $640,480,000 in 2024 [24]. - Average interest earning assets increased to $1,204,381,000 in Q4 2025, compared to $1,153,409,000 in Q4 2024, reflecting a growth of 4.5% [33].