First Capital(US:FCAP)2021-08-12 16:00Financial Performance - Net income for the three months ended June 30, 2021, was $2,734,000, an increase of 11.97% compared to $2,442,000 for the same period in 2020[16]. - Net income for June 2021 was $5,676,000, an increase from $4,539,000 in June 2020, representing a growth of approximately 25.1%[21]. - Net income attributable to First Capital, Inc. for the three months ended June 30, 2021, was $2,730,000, an increase from $2,438,000 for the same period in 2020, representing a growth of 12%[136]. - Basic earnings per share for the three months ended June 30, 2021, was $0.82, compared to $0.73 for the same period in 2020, reflecting an increase of 12%[136]. - Earnings per common share attributable to First Capital, Inc. were $0.82 for the three months ended June 30, 2021, compared to $0.73 for the same period in 2020, representing an increase of 12.33%[16]. Assets and Liabilities - Total assets increased to $1,078,666 thousand as of June 30, 2021, compared to $1,017,551 thousand at December 31, 2020, representing a growth of 6%[10]. - Total deposits rose to $961,581 thousand, up from $900,461 thousand, indicating an increase of approximately 7%[10]. - Loans, net decreased to $484,750 thousand from $500,331 thousand, reflecting a decline of about 3%[10]. - Total equity rose to $112,518 thousand from $110,751 thousand, indicating a growth of approximately 2%[10]. - Total cash and cash equivalents at the end of June 2021 were $183,996,000, compared to $106,421,000 at the end of June 2020, marking an increase of about 73.0%[21]. Income and Expenses - Total interest income decreased to $7,133,000 for the three months ended June 30, 2021, from $7,374,000 in the same period of 2020, representing a decline of 3.27%[16]. - Net interest income after provision for loan losses was $6,844,000 for the three months ended June 30, 2021, compared to $6,145,000 for the same period in 2020, an increase of 11.38%[16]. - Total noninterest income increased to $2,552,000 for the three months ended June 30, 2021, from $2,320,000 in the same period of 2020, reflecting a growth of 10.00%[16]. - Total noninterest expense rose to $6,165,000 for the three months ended June 30, 2021, compared to $5,618,000 in the same period of 2020, an increase of 9.73%[16]. Loan Portfolio and Provisions - The allowance for loan losses was $6.6 million as of June 30, 2021, compared to $6.6 million at December 31, 2020, indicating stability in the allowance despite changes in the loan portfolio[75]. - The company reported a charge-off of $187 for the six months ended June 30, 2020, with recoveries amounting to $124[89]. - Provisions for loan losses during the three months ended June 30, 2021, included a charge-off of $58, resulting in a net recovery of $67[87]. - The company maintained qualitative factor adjustments due to ongoing uncertainties related to the COVID-19 pandemic, impacting the loan portfolio[92]. - The total recorded investment in impaired loans was $3,138,000, with an average interest income recognized of $12,000[97]. Securities and Investments - Securities available for sale increased significantly to $353,482 thousand from $283,502 thousand, marking a growth of approximately 25%[10]. - The total amortized cost of securities held to maturity as of June 30, 2021, was $2.000 million, with a fair value of $2.025 million[39]. - The total amount of equity securities reported was $1,979,000 as of June 30, 2021, compared to $1,553,000 at the end of 2020, showing an increase of approximately 27.4%[161]. - The company recognized unrealized gains of $427,000 on equity investments during the six months ended June 30, 2021, compared to an unrealized loss of $171,000 in the same period of 2020[52]. COVID-19 Impact and Response - The COVID-19 pandemic has led to a significant decline in market interest rates, with the federal funds interest rate range reduced by 150 basis points to 0% to 0.25%[30]. - The Company has enhanced daily cleaning of facilities and encourages the use of online and mobile banking platforms to support safety during the COVID-19 pandemic[193]. - The Company continues to monitor the pandemic closely and is prepared to take additional actions as the situation evolves[198]. - Management believes the allowance for loan losses is adequate to cover estimated losses in the loan portfolio, although additional losses could be recognized as the pandemic continues[197]. Dividends and Shareholder Information - The company declared dividends per share of $0.26 for the three months ended June 30, 2021, up from $0.24 in the same period of 2020, a rise of 8.33%[16]. - The company reported a total of 3,373,872 shares of common stock outstanding as of July 27, 2021[4]. - Weighted average common shares outstanding for the three months ended June 30, 2021, was 3,342,432, slightly up from 3,336,573 shares in the same period of 2020[136]. - The total unrecognized compensation expense related to nonvested restricted shares as of June 30, 2021, was $1.3 million, expected to be recognized over a weighted average period of 3.1 years[147].