FIRST CAPITAL INC. Files 2023 Annual Report on Form 10-K

TL;DR

<b>First Capital Inc. reported increased net income and total assets in its 2023 10-K filing, despite stable EPS and a slight decrease in total liabilities.</b>

AI Summary

FIRST CAPITAL INC (FCAP) filed a Annual Report (10-K) with the SEC on March 29, 2024. Total assets increased to $468,549,000 in 2023 from $433,321,000 in 2022. Total liabilities decreased to $3,350,660,000 in 2023 from $3,371,362,000 in 2022. Net income for 2023 was $5,311,000, an increase from $4,446,000 in 2022. Earnings per share (EPS) for 2023 were $0.01, unchanged from 2022. Nonaccrual loans, including those with no allowance for credit losses, totaled $1,525,000.

Why It Matters

For investors and stakeholders tracking FIRST CAPITAL INC, this filing contains several important signals. The filing details First Capital Inc.'s financial performance and position for the fiscal year ended December 31, 2023, providing investors with crucial information on asset growth, profitability, and liabilities. Understanding the changes in net income, assets, and liabilities is key for investors to assess the company's financial health and operational efficiency over the past year.

Risk Assessment

Risk Level: medium — FIRST CAPITAL INC shows moderate risk based on this filing. The company's total liabilities ($3,350,660,000) significantly outweigh its total assets ($468,549,000), indicating a high degree of leverage and potential financial risk.

Analyst Insight

Investors should closely examine the company's debt structure and interest coverage ratios to understand its ability to manage its substantial liabilities.

Financial Highlights

total Assets

468,549,000

net Income

5,311,000

eps

0.01

Key Numbers

• 468,549,000 — Total Assets (As of December 31, 2023)
• 3,350,660,000 — Total Liabilities (As of December 31, 2023)
• 5,311,000 — Net Income (For the fiscal year ended December 31, 2023)
• 0.01 — Earnings Per Share (For the fiscal year ended December 31, 2023)
• 1,525,000 — Nonaccrual Loans (As of December 31, 2023)

Key Players & Entities

• FIRST CAPITAL INC (company) — Filer name
• 2023 (date) — Fiscal year end
• 2024-03-29 (date) — Filing date
• 10-K (document) — Form type
• CORYDON, IN (location) — Business address

FAQ

Risk Factors

• Leverage and Debt [high — financial]: The company's substantial total liabilities ($3,350,660,000) relative to its total assets ($468,549,000) indicate a high level of financial leverage.
• Nonaccrual Loans [medium — financial]: The presence of $1,525,000 in nonaccrual loans, some with no allowance for credit losses, poses a risk to future earnings and asset quality.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K filing.
• 2024-03-29: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share FCAP The NASDAQ Stock Mar
• $30.80 — illion, based upon the closing price of $30.80 per share as quoted on The NASDAQ Capit
• $31.6 million — 1, 2023, the Bank originated and funded $31.6 million of residential mortgage loans for sale
• $8.6 million — s originated, with total commitments of $8.6 million and outstanding balances of $5.6 millio
• $5.6 million — 8.6 million and outstanding balances of $5.6 million. The Bank limits the number of speculat
• $43.1 million — ing rate. Approved credit lines totaled $43.1 million at December 31, 2023, of which $12.7 mi
• $12.7 million — million at December 31, 2023, of which $12.7 million was outstanding. Lines of credit are or
• $21.4 million — nding loan commitments of approximately $21.4 million at December 31, 2023. As an accommodat

Filing Documents

• fcap20231231_10k.htm (10-K) — 5860KB
• ex_640230.htm (EX-4.1) — 5KB
• ex_640229.htm (EX-21.0) — 5KB
• ex_640228.htm (EX-23.0) — 3KB
• ex_640226.htm (EX-31.1) — 9KB
• ex_640227.htm (EX-31.2) — 8KB
• ex_640225.htm (EX-32.0) — 5KB
• ex_641198.htm (EX-97) — 23KB
• fcap20231231_10kimg018.jpg (GRAPHIC) — 6KB
• fcap20231231_10kimg019.jpg (GRAPHIC) — 2KB
• ms_logo.jpg (GRAPHIC) — 42KB
• 0001171843-24-001722.txt (&nbsp;) — 25548KB
• fcap-20231231.xsd (EX-101.SCH) — 117KB
• fcap-20231231_cal.xml (EX-101.CAL) — 105KB
• fcap-20231231_def.xml (EX-101.DEF) — 880KB
• fcap-20231231_lab.xml (EX-101.LAB) — 689KB
• fcap-20231231_pre.xml (EX-101.PRE) — 952KB
• fcap20231231_10k_htm.xml (XML) — 6678KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 27 Item 1B. Unresolved Staff Comments 36 Item 1C. Cybersecurity 36 Item 2.

Properties

Properties 38 Item 3.

Legal Proceedings

Legal Proceedings 39 Item 4. Mine Safety Disclosures 39 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39 Item 6. [Reserved] 40 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 55 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 55 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 55 Item 9A.

Controls and Procedures

Controls and Procedures 56 Item 9B. Other Information 56 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 56 Part III Item 10. Directors, Executive Officers and Corporate Governance 57 Item 11.

Executive Compensation

Executive Compensation 57 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 57 Item 13. Certain Relationships and Related Transactions, and Director Independence 58 Item 14. Principal Accounting Fees and Services 58 Part IV Item 15. Exhibits and Financial Statement Schedules 59 Item 16. Form 10-K Summary 61

SIGNATURES

SIGNATURES i This Annual Report on Form 10-K contains certain " forward-looking statements " within the meaning of the Private Securities Litigation Reform Act of 1995. First Capital, Inc. also may make forward-looking statements in its other documents filed or furnished with the Securities and Exchange Commission ( " SEC " ). In addition, First Capital, Inc. ' s senior management may make forward-looking statements orally to investors and others. These statements are not historical facts, rather statements based on First Capital, Inc. ' s current expectations regarding its business strategies, intended results and future performance. Forward-looking statements are preceded by terms such as " could, " " should, " " will, " " expects, " " believes, " " anticipates, " " intends " and similar expressions. Forward-looking statements are not guarantees of future performance. Management ' s ability to predict results or the effect of future plans or strategies is inherently uncertain. Numerous risks and uncertainties could cause or contribute to First Capital, Inc. ' s actual results, performance and achievements being materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, the ability of First Capital, Inc. to execute its business plan; First Capital, Inc. ' s ability to control costs and expenses; competitive products and pricing; deposit flows; loan delinquency rates; changes in federal and state legislation and regulation; and other factors disclosed periodically in First Capital, Inc. ' s filings with the SEC. Additional factors that may affect our results are discussed in Item 1A to this Annual Report on Form 10-K titled " Risk Factors " below. These factors should be considered in evaluating the forward-looking statements and undue reliance should not be placed on such statements, whether included in this report or made elsewhere from time to

BUSINESS

ITEM 1. BUSINESS General First Capital, Inc. (the "Company" or "First Capital") was incorporated under Indiana law on September 11, 1998. On December 31, 1998, the Company became the holding company for First Federal Bank, A Federal Savings Bank (the "Bank") upon the Bank's reorganization as a wholly owned subsidiary of the Company resulting from the conversion of First Capital, Inc., M.H.C. (the "MHC"), from a federal mutual holding company to a stock holding company. On January 12, 2000, the Company completed a merger of equals with HCB Bancorp, the former holding company for Harrison County Bank, and the Bank changed its name to First Harrison Bank. On March 20, 2003, the Company acquired Hometown Bancshares, Inc. ("Hometown"), a bank holding company located in New Albany, Indiana. On December 4, 2015, the Company acquired Peoples Bancorp, Inc. of Bullitt County and its wholly-owned bank subsidiary, Peoples Bank of Bullitt County ("Peoples"), headquartered in Shepherdsville, Kentucky. On September 20, 2017, the Bank filed applications with the Indiana Department of Financial Institutions ("IDFI") and the Federal Deposit Insurance Corporation ("FDIC") to convert from a federal savings association into an Indiana chartered commercial bank (the "Conversion"), and since June 30, 2018, the IDFI is the Bank's primary regulator and the FDIC is the Bank's primary federal regulator. The Conversion did not affect the Bank's clients in any way and did not affect FDIC deposit insurance on eligible accounts as the Bank's deposits are federally insured by the FDIC under the Deposit Insurance Fund. The Bank is a member of the Federal Home Loan Bank ("FHLB") System. Additionally, in connection with the Conversion, the Company filed an application with the Federal Reserve Bank ("FRB") of St. Louis to change from a savings and loan holding company to a financial holding company. This change occurred simultaneously with the Conversion discussed above. The Company's primary b

View Full Filing

View this 10-K filing on SEC EDGAR