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First Capital, Inc. Reports Quarterly Earnings

CORYDON, Ind., April 25, 2025 (GLOBE NEWSWIRE) -- First Capital, Inc. (the 鈥淐ompany鈥�) (NASDAQ: FCAP), the holding company for First Harrison Bank (the 鈥淏ank鈥�), today reported net income of $3.2 million, or $0.97 per diluted share, for the quarter ended March 31, 2025, compared to net income of $3.0 million, or $0.88 per diluted share, for the quarter ended March 31, 2024.

Results of Operations for the Three Months Ended March 31, 2025 and 2024

Net interest income after provision for credit losses increased $923,000 for the quarter ended March 31, 2025 compared to the same period in 2024. Interest income increased $1.5 million when comparing the two periods due to an increase in the average tax-equivalent yield⁽¹⁾ on interest-earning assets from 4.29% for the quarter ended March 31, 2024 to 4.63% for the same period in 2025, in addition to an increase in the average balance of interest-earning assets from $1.12 billion for the quarter ended March 31, 2024 to $1.17 billion for the same period in 2025. Interest expense increased $528,000 as the average cost of interest-bearing liabilities increased from 1.55% for the quarter ended March 31, 2024 to 1.71% for the same period in 2025, in addition to an increase in the average balance of interest-bearing liabilities from $833.7 million for the quarter ended March 31, 2024 to $881.6 million for the same period in 2025. As a result of the changes in interest-earning assets and interest-bearing liabilities, the tax-equivalent net interest margin⁽¹⁾ increased from 3.14% for the quarter ended March 31, 2024 to 3.34% for the same period in 2025. Refer to the accompanying average balance sheet for more information regarding changes in the composition of the Company鈥檚 balance sheet and resulting yields and costs from the quarter ended March 31, 2024 to the quarter ended March 31, 2025.

Based on management鈥檚 analysis of the Allowance for Credit Losses (鈥淎CL鈥�) on loans and unfunded loan commitments, the provision for credit losses increased from $280,000 for the quarter ended March 31, 2024 to $338,000 for the quarter ended March 31, 2025. The increase was due to loan growth during the period as well as management鈥檚 consideration of macroeconomic uncertainty. The Bank recognized net charge-offs of $84,000 and $55,000 for the quarters ended March 31, 2025 and 2024, respectively.

Noninterest income decreased $51,000 for the quarter ended March 31, 2025 as compared to the quarter ended March 31, 2024 primarily due to the Company recognizing a $55,000 loss on sale of available for sale securities for the quarter ended March 31, 2025 compared to a $32,000 gain on sale of available for sale securities for the quarter ended March 31, 2024. The Company also recognized decreases of $38,000 and $24,000 in other income and ATM and debit card fees, respectively, when comparing the two periods. These were partially offset by the Company recognizing an $18,000 gain on equity securities during the quarter ended March 31, 2025 compared to a loss of $68,000 during the same period in 2024.

Noninterest expenses increased $424,000 for the quarter ended March 31, 2025 as compared to the same period in 2024. This was primarily due to increases in compensation and benefits and occupancy and equipment expenses of $259,000 and $160,000, respectively, when comparing the two periods. The increase in compensation and benefits is due to increases in salary and wages associated with annual cost of living and performance related adjustments as well as increases in the cost of Company-provided health insurance benefits. The increase in occupancy and equipment expenses is primarily due to costs associated with snow removal across the Company鈥檚 branch network given the historic storms in our communities as well as a loss on the disposal of premises and equipment.

Income tax expense increased $165,000 for the quarter ended March 31, 2025 as compared to the same period in 2024 resulting in an effective tax rate of 17.2% for the quarter ended March 31, 2025, compared to 14.6% for the same period in 2024.

Comparison of Financial Condition at March 31, 2025 and December 31, 2024

Total assets were $1.21 billion at March 31, 2025 compared to $1.19 billion at December 31, 2024. Net loans receivable, total cash and cash equivalents, and securities available for sale increased $11.7 million, $10.7 million, and $2.5 million, respectively, from December 31, 2024 to March 31, 2025. Deposits increased $17.5 million from $1.07 billion at December 31, 2024 to $1.08 billion at March 31, 2025. Nonperforming assets (consisting of nonaccrual loans, accruing loans 90 days or more past due, and foreclosed real estate) decreased from $4.5 million at December 31, 2024 to $4.1 million at March 31, 2025.

The Bank currently has 17 offices in the Indiana communities of Corydon, Edwardsville, Greenville, Floyds Knobs, Palmyra, New Albany, New Salisbury, Jeffersonville, Salem, Lanesville and Charlestown and the Kentucky communities of Shepherdsville, Mt. Washington and Lebanon Junction.

Access to First Harrison Bank accounts, including online banking and electronic bill payments, is available through the Bank鈥檚 website at . For more information and financial data about the Company, please visit Investor Relations at the Bank鈥檚 aforementioned website. The Bank can also be followed on Facebook.

⁽¹⁾ Reconciliations of the non鈥揢.S. Generally Accepted Accounting Principles (鈥淕AAP鈥�) measures are set forth at the end of this press release.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of the words 鈥渁nticipate,鈥� 鈥渂elieve,鈥� 鈥渆xpect,鈥� 鈥渋ntend,鈥� 鈥渃ould鈥� and 鈥渟hould,鈥� and other words of similar meaning. Forward-looking statements are not historical facts nor guarantees of future performance; rather, they are statements based on the Company鈥檚 current beliefs, assumptions, and expectations regarding its business strategies and their intended results and its future performance.

Numerous risks and uncertainties could cause or contribute to the Company鈥檚 actual results, performance and achievements to be materially different from those expressed or implied by these forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; competition; the ability of the Company to execute its business plan; legislative and regulatory changes; the quality and composition of the loan and investment portfolios; loan demand; deposit flows; changes in accounting principles and guidelines; and other factors disclosed periodically in the Company鈥檚 filings with the Securities and Exchange Commission.

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release, the Company鈥檚 reports, or made elsewhere from time to time by the Company or on its behalf. These forward-looking statements are made only as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements after the date of this press release.

Contact:
Joshua P. Stevens
Chief Financial Officer
812-738-1570