First Capital, Inc. Reports $3.2 Million Net Income for Q1 2025, Up from $2.95 Million

First Capital, Inc. reported a net income of $3.2 million for the first quarter of 2025, reflecting an increase from $2.95 million in the same period of 2024. This translates to earnings per share of $0.97, up from $0.88 a year earlier. The company's total interest income rose to $13.35 million, a $1.51 million increase compared to the previous year, driven by a higher average yield on interest-earning assets, which increased from 4.29% to 4.63%. However, total interest expense also increased by $528,000, leading to a net interest income after provision for credit losses of $9.24 million, up from $8.32 million in the prior year.

In terms of financial position, First Capital's total assets grew by $27 million to $1.21 billion as of March 31, 2025. The increase was primarily attributed to a rise in net loans receivable, which increased by $11.7 million to $642.9 million, with notable growth in multifamily residential and commercial real estate loans. Cash and cash equivalents also saw a significant increase, rising from $105.9 million to $116.6 million, largely due to net deposit inflows. Total deposits increased by $17.5 million, reaching $1.08 billion, with growth in savings accounts and non-interest-bearing checking accounts.

The company experienced a slight decline in noninterest income, which fell to $1.85 million from $1.90 million year-over-year. This decrease was primarily due to a loss on the sale of available-for-sale securities, contrasting with a gain in the previous year. Noninterest expenses increased by $424,000, driven by higher compensation and benefits costs, as well as increased occupancy and equipment expenses. The effective tax rate for the quarter was 17.2%, up from 14.6% in the prior year.

Looking ahead, First Capital's management remains cautious about macroeconomic conditions, which influenced the increase in the provision for credit losses from $280,000 to $338,000. The company continues to focus on maintaining a strong capital position, with total stockholders' equity increasing to $120.1 million, supported by retained earnings and unrealized gains on securities. The bank's Community Bank Leverage Ratio stood at 10.61%, indicating a well-capitalized status under regulatory guidelines. The outlook suggests a commitment to managing interest rate risk and maintaining liquidity to support future growth.