First Capital ( (FCAP) ) has released its Q4 earnings. Here is a breakdown of the information First Capital presented to its investors.
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First Capital, Inc., the holding company for First Harrison Bank, operates in the financial services sector, providing a range of banking services to communities in Indiana and Kentucky. It is known for its community-focused banking approach and robust online banking services.
In its latest earnings report for the year ending December 31, 2024, First Capital, Inc. announced a net income of $11.9 million, or $3.57 per diluted share, showing a slight decrease from the previous year’s net income of $12.8 million, or $3.82 per diluted share. This report provides insights into the company’s financial performance and strategic directions over the past year.
Key financial metrics from the report reveal that net interest income after provision for credit losses saw an increase of $894,000 year-over-year, driven by a significant rise in interest income due to a higher yield on interest-earning assets. However, interest expenses also rose substantially by $5.7 million, due to increased costs and balances of interest-bearing liabilities. The net interest margin showed a modest increase from 3.16% to 3.20% over the year. Additionally, noninterest income and expenses saw increases, with notable hikes in professional fees and compensation costs.
In the quarterly analysis, the company reported a net income of $3.3 million for the fourth quarter of 2024, a slight increase from $3.1 million in the same period in 2023. The quarter also noted an increase in net interest income driven by higher interest yields, despite rising interest expenses. Notably, nonperforming assets increased significantly during the year, primarily due to reclassifications in two commercial loan relationships.
Looking ahead, First Capital, Inc. remains focused on navigating the economic uncertainties and is committed to optimizing its financial strategies. The management continues to assess the market conditions to ensure sustained growth and stability in its financial operations while maintaining strong community ties through its banking services.
