Financial Performance - Net income for the year ended December 31, 2024 was $11.9 million, or $3.57 per diluted share, compared to $12.8 million, or $3.82 per diluted share, for the year ended December 31, 2023 [1] - Net interest income after provision for credit losses increased by $894,000 for the year ended December 31, 2024 compared to the same period in 2023 [2] - Interest income increased by $6.9 million due to an increase in the average tax-equivalent yield on interest-earning assets from 3.96% in 2023 to 4.49% in 2024 [2] - Interest expense increased by $5.7 million as the average cost of interest-bearing liabilities rose from 1.11% in 2023 to 1.73% in 2024 [2] - The tax-equivalent net interest margin increased from 3.16% in 2023 to 3.20% in 2024 [2] Credit Losses and Noninterest Income - Provision for credit losses increased from $1.1 million in 2023 to $1.4 million in 2024 due to loan growth, increased nonperforming assets, and macroeconomic uncertainty [3] - Net charge-offs decreased from $469,000 in 2023 to $173,000 in 2024 [3] - Noninterest income increased by $24,000 in 2024, driven by gains on the sale of loans and service charges on deposit accounts, partially offset by higher losses on equity securities [4] Noninterest Expenses and Taxes - Noninterest expenses increased by $1.8 million in 2024, primarily due to higher professional fees, compensation and benefits, and other expenses [5] - Income tax expense decreased by $32,000 in 2024, resulting in an effective tax rate of 15.6% compared to 14.9% in 2023 [6] Quarterly Performance - Net income for the quarter ended December 31, 2024 was $3.3 million, or $0.97 per diluted share, compared to $3.1 million, or $0.93 per diluted share, for the same period in 2023 [7] - Net interest income after provision for credit losses increased by $822,000 in Q4 2024 compared to Q4 2023 [8] - Interest income increased by $1.6 million in Q4 2024 due to a higher average tax-equivalent yield on interest-earning assets [8] - Interest expense increased by $693,000 in Q4 2024 due to a higher average cost of interest-bearing liabilities [8] - The tax-equivalent net interest margin increased from 3.11% in Q4 2023 to 3.33% in Q4 2024 [9] Credit Losses and Noninterest Income (Quarterly) - Provision for credit losses increased from $308,000 in Q4 2023 to $346,000 in Q4 2024 [10] - Net charge-offs decreased from $89,000 in Q4 2023 to $24,000 in Q4 2024 [10] - Noninterest income increased by $103,000 in Q4 2024, driven by gains on the sale of loans and service charges on deposit accounts [11] Noninterest Expenses and Taxes (Quarterly) - Noninterest expenses increased by $567,000 in Q4 2024, primarily due to higher professional fees, compensation and benefits, and occupancy and equipment expenses [12] - Income tax expenses increased by $206,000 in Q4 2024, resulting in an effective tax rate of 17.3% compared to 13.3% in Q4 2023 [13] Financial Condition - Total assets increased from $1.16 billion at December 31, 2023 to $1.19 billion at December 31, 2024 [14] - Total cash and cash equivalents increased by $67.2 million, while net loans receivable increased by $16.8 million [14] - Securities available for sale decreased by $48.0 million, and deposits increased by $41.2 million [14] - Nonperforming assets increased from $1.8 million at December 31, 2023 to $4.5 million at December 31, 2024 [14] Operational Highlights - The Bank operates 18 offices across Indiana and Kentucky [15] - Online banking and electronic bill payments are available through the Bank's website [16] Financial Metrics - Return on average assets (annualized) was 1.10% for Q4 2024 compared to 1.09% for Q4 2023 [25] - Return on average equity (annualized) was 11.33% for Q4 2024 compared to 13.67% for Q4 2023 [25] - Net interest margin (tax-equivalent basis) was 3.33% for Q4 2024 compared to 3.11% for Q4 2023 [25] - Allowance for credit losses as a percent of gross loans was 1.45% at December 31, 2024 compared to 1.29% at December 31, 2023 [25]
First Capital, Inc. Reports Annual and Quarterly Earnings