First Capital(FCAP) - 2021 Q1 - Quarterly Report

Financial Performance - Net income for Q1 2021 was $2,942 thousand, compared to $2,097 thousand in Q1 2020, indicating a year-over-year increase of 40.38%[12] - Earnings per common share attributable to First Capital, Inc. for Q1 2021 were $0.88, up from $0.63 in Q1 2020, reflecting a growth of 39.68%[12] - Net income for the three months ended March 31, 2021, was $2,942,000, an increase of 40.4% compared to $2,097,000 for the same period in 2020[16] - The company reported a net increase in deposits of $40,061,000 for the three months ended March 31, 2021, compared to $441,000 for the same period in 2020[20] - Total noninterest income for the three months ended March 31, 2021, was $2,438 thousand, an increase of 67.4% compared to $1,456 thousand in the same period of 2020[157] Assets and Liabilities - Total assets as of March 31, 2021, were $1,055,676 thousand, compared to $1,017,551 thousand as of December 31, 2020, reflecting an increase of 3.74%[9] - Total liabilities as of March 31, 2021, were $945,790 thousand, compared to $906,800 thousand as of December 31, 2020, representing an increase of 4.30%[9] - The cash and cash equivalents totaled $205,956 thousand as of March 31, 2021, compared to $175,888 thousand as of December 31, 2020, an increase of 17.09%[9] - Total deposits increased to $940,522 thousand as of March 31, 2021, from $900,461 thousand as of December 31, 2020, marking a growth of 4.44%[9] Loan Performance - Total gross loans as of March 31, 2021, amounted to $520.9 million, a decrease from $525.8 million at December 31, 2020[69] - The principal loan balance decreased to $489.1 million as of March 31, 2021, from $506.6 million at December 31, 2020[69] - The allowance for loan losses was $6.628 million as of March 31, 2021, slightly increased from $6.625 million at December 31, 2020[69] - Total nonperforming loans increased to $1,860,000 as of March 31, 2021, compared to $1,465,000 as of December 31, 2020, representing a 27% increase[93] Provision for Loan Losses - The company reported a provision for loan losses of $75 thousand in Q1 2021, down from $351 thousand in Q1 2020, indicating a decrease of 78.63%[12] - The provisions for loan losses for the three months ended March 31, 2021, were $75,000, compared to $351,000 for the same period in 2020[87] - The allowance for loan losses related to TDRs was established at $9,000 during the three months ended March 31, 2021, due to one second mortgage loan TDR moving to nonaccrual status[107] Securities and Investments - As of March 31, 2021, the total securities available for sale amounted to $313.54 million, with gross unrealized gains of $6.408 million and gross unrealized losses of $1.503 million[34] - The amortized cost of securities available for sale as of March 31, 2021, was $308.635 million[38] - The fair value of equity securities as of March 31, 2021, was reported at $1.79 million, up from $1.55 million as of December 31, 2020[138] Dividends - The company declared dividends per share of $0.26 for Q1 2021, compared to $0.24 in Q1 2020, an increase of 8.33%[12] - The company paid dividends of $878,000 during the three months ended March 31, 2021, compared to $811,000 for the same period in 2020[20] COVID-19 Impact - The Bank approved payment extensions on $68.1 million of loan balances primarily related to commercial real estate, with $61.7 million remaining outstanding as of March 31, 2021[108] - The Federal Open Market Committee reduced the targeted federal funds interest rate range by 150 basis points to 0% to 0.25% in March 2020 due to COVID-19[29] - The company has applied guidance related to payment deferrals and other COVID-19 related loan modifications made through March 31, 2021, with additional modifications expected in Q2 2021[30] Equity and Compensation - As of March 31, 2021, 161,900 shares of common stock were available for issuance under the 2019 Equity Incentive Plan[124] - The Company granted 14,250 restricted stock shares at a grant-date price of $67.43 per share, totaling $961,000, with a vesting period through July 1, 2025[126] - Compensation expense related to restricted stock for the three-month periods ended March 31, 2021, and 2020 amounted to $115,000 and $93,000, respectively, reflecting a year-over-year increase of 23.66%[130]