Business
First Capital, Inc. Reports Annual And Quarterly Earnings
CORYDON, Ind., Jan. 30, 2024 (GLOBE NEWSWIRE) -- First Capital, Inc. (the “Company”) (NASDAQ: FCAP), the holding company for First Harrison Bank (the “Bank”),
About this update from First Capital, Inc.
[{"type":"text","content":"CORYDON, Ind., Jan. 30, 2024 (GLOBE NEWSWIRE) -- First Capital, Inc. (the “Company”) (NASDAQ: FCAP), the holding company for First Harrison Bank (the “Bank”), today reported net income of $12.8 million, or $3.82 per diluted share, for the year ended December 31, 2023, compared to net income of $11.9 million, or $3.55 per diluted share, for the year ended December 31, 2022. Net interest income after provision for credit losses increased $2.1 million for the year ended December 31, 2023 compared to the same period in 2022. Interest income increased $9.7 million when comparing the two periods due to an increase in the average tax-equivalent yield on interest-earning assets from 3.10% for the year ended December 31, 2022 to 3.96% for the same period in 2023. Interest expense increased $7.4 million as the average cost of interest-bearing liabilities increased from 0.20% for the year ended December 31, 2022 to 1.11% for the same period in 2023. The Company had average outstanding advances from the Federal Home Loan Bank (“FHLB”) of $6.1 million with an average rate of 5.59% and average outstanding borrowings under the Federal Reserve Bank’s Bank Term Funding Program (“BTFP”) of $8.6 million with an average rate of 5.05% during the year ended December 31, 2023. The Company’s total average outstanding balance of borrowings during the year ended December 31, 2023 was $14.7 million with an average rate of 5.27%. There were no outstanding borrowed funds during 2022. As a result of the changes in interest-earning assets and interest-bearing liabilities, the tax-equivalent interest rate spread decreased from 2.90% for the year ended December 31, 2022 to 2.85% for the year ended December 31, 2023. Effective January 1, 2023, the Company adopted the Financial Accounting Standard Board's (“FASB”) Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326), as amended, and commonly referred to as the Current Expected Credit Loss model (\"CECL\"), under the modified retrospective method. The adoption replaced the allowance for loan losses with the allowance for credit losses (“ACL”) on loans on the Consolidated Balance Sheets and replaced the related provision for loan losses with the provision for credit losses on loans on the Consolidated Statements of Income. Upon adoption, the Company recorded an increase in ...