First Capital, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance compared to the same periods in 2023. The company’s total assets increased to $1.19 billion, up from $1.16 billion at the end of 2023, driven by a rise in cash and cash equivalents, which surged to $89.9 million from $38.7 million. This increase was attributed to maturities of available-for-sale securities, heightened borrowings, and net deposit inflows.

For the three months ended September 30, 2024, First Capital recorded net income of $2.9 million, or $0.87 per diluted share, down from $3.1 million, or $0.94 per diluted share, in the prior year. The decline in net income was influenced by a rise in total interest expense, which increased to $4.1 million from $2.6 million, reflecting a higher average cost of interest-bearing liabilities. Total interest income, however, rose to $13.2 million from $11.2 million, primarily due to an increase in the average yield on interest-earning assets from 3.96% to 4.53%.

The net interest income after provision for credit losses for the third quarter increased by $415,000 compared to the same period in 2023. The provision for credit losses also rose to $463,000 from $290,000, reflecting loan growth and an uptick in nonperforming assets. Noninterest income decreased to $1.8 million from $1.9 million, with losses on equity securities increasing to $196,000 from $131,000.

For the nine months ended September 30, 2024, net income totaled $8.7 million, down from $9.7 million in 2023. Total interest income for this period increased by $5.3 million, while total interest expense rose by $5.0 million, leading to a slight decrease in net interest margin from 3.10% to 3.09%. The company’s total stockholders' equity increased to $116.8 million from $105.2 million, bolstered by retained earnings and unrealized gains on available-for-sale securities.

Strategically, First Capital has increased its borrowings under the Federal Reserve Bank’s Bank Term Funding Program (BTFP) to $33.6 million, up from $21.5 million at the end of 2023. The company also reported a stable deposit base of $1.03 billion, despite fluctuations in various account types. The bank remains well-capitalized under regulatory guidelines, with a Community Bank Leverage Ratio of 10.24% as of September 30, 2024.

Overall, First Capital, Inc. continues to navigate a challenging interest rate environment while focusing on maintaining its financial stability and growth.