First Capital's Net Income Jumps 33.5% on Strong Net Interest Growth

Ticker: FCAP · Form: 10-Q · Filed: Aug 14, 2025 · CIK: 1070296

First Capital INC 10-Q Filing Summary
FieldDetail
CompanyFirst Capital INC (FCAP)
Form Type10-Q
Filed DateAug 14, 2025
Risk Levelmedium
Pages15
Reading Time18 min
Key Dollar Amounts$0.01
Sentimentbullish

Sentiment: bullish

Topics: Regional Banking, Net Interest Income, Earnings Growth, Deposit Growth, Asset Growth, Unrealized Losses, Financial Performance

Related Tickers: FCAP

TL;DR

**FCAP is crushing it with net interest income, making it a solid regional bank play.**

AI Summary

First Capital, Inc. reported a significant increase in net income attributable to the company, rising to $3.775 million for the three months ended June 30, 2025, up 33.5% from $2.828 million in the same period of 2024. For the six months ended June 30, 2025, net income attributable to First Capital, Inc. increased by 21.3% to $7.010 million from $5.780 million in 2024. This growth was primarily driven by a substantial increase in net interest income, which rose to $10.412 million for the three months ended June 30, 2025, a 20.3% increase from $8.657 million in 2024. Total assets grew to $1.242 billion as of June 30, 2025, from $1.187 billion at December 31, 2024, an increase of 4.6%. Deposits also saw a healthy increase, reaching $1.110 billion as of June 30, 2025, up from $1.066 billion at December 31, 2024. The company's allowance for credit losses increased to $9.728 million from $9.281 million, reflecting a prudent approach to loan portfolio management. Unrealized losses on securities available for sale decreased to $25.859 million from $30.066 million, indicating an improvement in the fair value of their investment portfolio. The company also saw an increase in cash and cash equivalents to $134.595 million from $105.917 million at the end of 2024.

Why It Matters

First Capital's robust net income growth and expanding asset base signal strong operational performance in a competitive banking landscape, which could attract investors seeking stable regional bank exposure. The significant increase in deposits suggests customer confidence and effective deposit-gathering strategies, crucial for funding future loan growth. For employees, this positive financial health could translate into job security and potential growth opportunities. The reduction in unrealized losses on available-for-sale securities is a positive sign for the bank's balance sheet health, especially in a volatile interest rate environment, positioning it favorably against competitors facing similar market risks.

Risk Assessment

Risk Level: medium — While net income is up, First Capital, Inc. still holds significant unrealized losses on its securities portfolio, totaling $25.859 million for available-for-sale securities and $1.757 million for held-to-maturity corporate notes as of June 30, 2025. A substantial portion of these losses, $25.141 million, has been in a continuous loss position for more than twelve months, indicating prolonged exposure to interest rate fluctuations and potential future impairment if rates remain elevated or rise further.

Analyst Insight

Investors should consider FCAP for its strong net interest income growth and improving balance sheet, but remain vigilant about interest rate trends and their impact on the substantial unrealized losses in the securities portfolio. A deeper dive into the composition and duration of the securities with unrealized losses is warranted to assess long-term risk.

Financial Highlights

debt To Equity
N/A
revenue
$10.412M
operating Margin
N/A
total Assets
$1.242B
total Debt
N/A
net Income
$3.775M
eps
$1.13
gross Margin
N/A
cash Position
$134.595M
revenue Growth
+20.3%

Revenue Breakdown

SegmentRevenueGrowth
Net Interest Income$10.412M+20.3%
Service charges on deposit accounts$0.588M+4.2%
ATM and debit card fees$1.147M-0.3%
Gain on sale of loans$0.152M-10.1%
Other Income$0.123M+53.8%

Key Numbers

Key Players & Entities

FAQ

What were First Capital Inc.'s net income figures for the second quarter of 2025?

First Capital, Inc.'s net income attributable to the company for the three months ended June 30, 2025, was $3.775 million, a significant increase from $2.828 million reported in the same period of 2024.

How did First Capital Inc.'s net interest income change in the first half of 2025?

For the six months ended June 30, 2025, First Capital, Inc.'s net interest income increased to $19.993 million, up from $17.257 million in the first half of 2024, demonstrating a strong growth of $2.736 million.

What is the total asset value for First Capital Inc. as of June 30, 2025?

As of June 30, 2025, First Capital, Inc. reported total assets of $1,242,687 thousand, an increase from $1,187,523 thousand at December 31, 2024.

What are the key risks related to First Capital Inc.'s investment securities portfolio?

First Capital, Inc. holds $25.859 million in gross unrealized losses on securities available for sale and $1.757 million on securities held to maturity as of June 30, 2025. A substantial portion of these, $25.141 million, has been in a continuous loss position for over twelve months, indicating exposure to interest rate risk.

How much did First Capital Inc.'s deposits grow in the first six months of 2025?

First Capital, Inc.'s total deposits increased by $44.188 million in the six months ended June 30, 2025, reaching $1,110,627 thousand from $1,066,439 thousand at December 31, 2024.

What was First Capital Inc.'s basic earnings per common share for Q2 2025?

First Capital, Inc.'s basic earnings per common share attributable to the company for the three months ended June 30, 2025, was $1.13, an increase from $0.85 in the same period of 2024.

Did First Capital Inc. increase its allowance for credit losses?

Yes, First Capital, Inc. increased its allowance for credit losses to $9.728 million as of June 30, 2025, from $9.281 million at December 31, 2024, reflecting a $447 thousand increase.

What is the current number of outstanding common shares for First Capital Inc.?

As of July 20, 2025, First Capital, Inc. had 3,355,118 shares of common stock outstanding.

How did First Capital Inc.'s cash and cash equivalents change in the first half of 2025?

First Capital, Inc.'s cash and cash equivalents significantly increased to $134,595 thousand at June 30, 2025, from $105,917 thousand at the beginning of the period, representing a net increase of $28,678 thousand.

What was the total noninterest expense for First Capital Inc. in the first six months of 2025?

For the six months ended June 30, 2025, First Capital, Inc.'s total noninterest expense was $14.675 million, an increase from $13.757 million in the same period of 2024.

Risk Factors

Industry Context

First Capital, Inc. operates within the community banking sector, characterized by a focus on local markets and relationship-based lending. The industry is highly competitive, with increasing pressure from larger national banks and fintech companies. Recent trends include rising interest rates impacting net interest margins and a continued focus on digital transformation to enhance customer experience and operational efficiency.

Regulatory Implications

As a financial institution, First Capital is subject to stringent regulatory oversight from bodies like the FDIC and state banking authorities. Compliance with capital requirements, lending standards, and consumer protection laws is paramount. Any changes in these regulations, such as increased capital buffers or stricter lending criteria, could impact profitability and operational flexibility.

What Investors Should Do

  1. Monitor Net Interest Margin trends
  2. Assess Loan Portfolio Health
  3. Evaluate Securities Portfolio Performance
  4. Observe Deposit Growth and Stability
  5. Track Operational Efficiency

Key Dates

Glossary

Net Interest Income
The difference between the interest income generated by a financial institution and the amount of interest it pays out to its customers. (A primary driver of profitability for banks, as shown by its 20.3% increase to $10.412 million in Q2 2025.)
Allowance for Credit Losses
An estimate of the amount of uncollectible loans in a financial institution's loan portfolio. (Indicates the company's provisioning for potential loan defaults, which increased to $9.728 million.)
Securities Available for Sale (AFS)
Investments in debt or equity securities that are not classified as held-to-maturity or trading securities. They are reported at fair value. (Unrealized losses on these securities decreased to $25.859 million, indicating an improvement in their market value.)
Accumulated Other Comprehensive Income (Loss)
A component of equity that includes unrealized gains and losses on certain investments and foreign currency translations that have not yet been realized. (Shows a net loss of $(19,521)$ thousand as of June 30, 2025, primarily due to unrealized losses on AFS securities.)
Noncontrolling Interest
The portion of equity in a subsidiary that is not attributable to the parent company. (A small portion of net income (e.g., $3 thousand in Q2 2025) and equity is attributed to this interest.)
Basic Earnings Per Share (EPS)
The net income attributable to common shareholders divided by the weighted-average number of common shares outstanding. (Increased to $1.13 for Q2 2025, reflecting improved profitability on a per-share basis.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, First Capital, Inc. has demonstrated robust growth. Net income attributable to the company surged by 33.5% to $3.775 million in Q2 2025, and by 21.3% to $7.010 million for the first six months. This was largely fueled by a 20.3% increase in net interest income to $10.412 million for the quarter. Total assets grew by 4.6% to $1.242 billion, and deposits increased to $1.110 billion, indicating balance sheet expansion. While the allowance for credit losses saw a modest increase, unrealized losses on securities available for sale have decreased, suggesting an improvement in the investment portfolio's fair value.

Filing Stats: 4,611 words · 18 min read · ~15 pages · Grade level 16.9 · Accepted 2025-08-14 16:32:34

Key Financial Figures

Filing Documents

Consolidated Financial Statements

Item 1. Consolidated Financial Statements Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 (unaudited) 3 Consolidated Statements of Income for the three and six months ended June 30, 2025 and 2024 (unaudited) 4 Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024 (unaudited) 5 Consolidated Statements of Changes in Stockholders' Equity for the three and six months ended June 30, 2025 and 2024 (unaudited) 6 Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (unaudited) 7

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 8-30

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 31-34

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 35-36

Controls and Procedures

Item 4. Controls and Procedures 37 Part II Other Information 38

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 38

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 38

Other Information

Item 5. Other Information 38

Exhibits

Item 6. Exhibits 39

Signatures

Signatures - 2 - Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FIRST CAPITAL, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, December 31, 2025 2024 (In thousands) ASSETS Cash and due from banks $ 26,253 $ 18,418 Interest bearing deposits with banks 108,342 87,499 Total cash and cash equivalents 134,595 105,917 Interest-bearing time deposits 2,205 2,695 Securities available for sale, at fair value (amortized cost $ 420,705 and $ 418,935 , respectively) 395,589 389,243 Securities held to maturity, at amortized cost (fair value $ 5,243 and $ 4,591 , respectively) 7,000 7,000 Loans held for sale 1,593 472 Loans, net of allowance for credit losses of $ 9,728 ($ 9,281 in 2024) 649,174 631,199 Federal Home Loan Bank and other stock, at cost 1,836 1,836 Premises and equipment 14,123 14,179 Accrued interest receivable 4,642 4,575 Cash value of life insurance 8,892 9,329 Goodwill 6,472 6,472 Core deposit intangible 12 86 Other assets 16,554 14,520 Total Assets $ 1,242,687 $ 1,187,523 LIABILITIES Deposits: Noninterest-bearing $ 208,595 $ 197,993 Interest-bearing 902,032 868,446 Total deposits 1,110,627 1,066,439 Accrued interest payable 2,211 1,922 Accrued expenses and other liabilities 6,544 4,451 Total liabilities 1,119,382 1,072,812 EQUITY Preferred stock of $ .01 par value per share Authorized 1,000,000 shares; none issued — — Common stock of $ .01 par value per share Authorized 7,500,000 shares; issued 3,810,883 shares ( 3,806,983 in 2024); outstanding 3,355,353 ( 3,351,703 in 2024) 38 38 Additional paid-in capital 41,823 41,676 Retained earnings-substantially restricted 110,354 105,290 Unearned stock compensation ( 205 ) ( 135 ) Accumulated other comprehensive loss ( 19,521 ) ( 22,990 ) Less treasury stock, at cost - 455,530 shares ( 455,280 in 2024) ( 9,289 ) ( 9,280 ) Total First Capital, Inc. stockholders' equity 123,200

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FIRST CAPITAL, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 INTEREST INCOME (In thousands, except per share data) Loans, including fees $ 10,254 $ 9,472 $ 20,028 $ 18,710 Securities: Taxable 1,979 1,757 3,813 3,386 Tax-exempt 665 636 1,314 1,340 Dividends 25 24 51 36 Interest bearing deposits with banks 1,117 329 2,180 583 Total interest income 14,040 12,218 27,386 24,055 INTEREST EXPENSE Deposits 3,628 3,103 7,393 5,909 Advances - FHLB — 51 — 99 Borrowed funds - Bank Term Funding Program ("BTFP") — 407 — 790 Total interest expense 3,628 3,561 7,393 6,798 Net interest income 10,412 8,657 19,993 17,257 Provision for credit losses 306 360 644 640 Net interest income after provision for credit losses 10,106 8,297 19,349 16,617 NONINTEREST INCOME Service charges on deposit accounts 588 564 1,181 1,157 ATM and debit card fees 1,147 1,150 2,183 2,210 (Loss) gain on sale of securities — — ( 55 ) 32 Unrealized loss on equity securities ( 41 ) ( 6 ) ( 23 ) ( 74 ) Gain on sale of loans 152 169 241 270 Increase in cash surrender value of life insurance 49 66 121 114 Other income 123 80 218 213 Total noninterest income 2,018 2,023 3,866 3,922 NONINTEREST EXPENSE Compensation and benefits 4,270 3,962 8,372 7,805 Occupancy and equipment 549 480 1,172 943 Data processing 1,156 1,115 2,264 2,191 Professional fees 327 303 613 562 Advertising 120 79 194 167 Other expenses 1,072 1,061 2,060 2,089 Total noninterest expense 7,494 7,000 14,675 13,757 Income before income taxes 4,630 3,320 8,540 6,782 Income tax expense 852 488 1,524 995 Net Income 3,778 2,832 7,016 5,787

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FIRST CAPITAL, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 (In thousands) Net Income $ 3,778 $ 2,832 $ 7,016 $ 5,787 OTHER COMPREHENSIVE INCOME (LOSS) Unrealized gains (losses) on securities available for sale: Unrealized holding gains (losses) arising during the period 416 163 4,521 ( 1,878 ) Income tax (expense) benefit ( 138 ) ( 96 ) ( 1,095 ) 337 Net of tax amount 278 67 3,426 ( 1,541 ) Less: reclassification adjustment for realized losses (gains) included in net income — — 55 ( 32 ) Income tax (expense) benefit — — ( 12 ) 7 Net of tax amount — — 43 ( 25 ) Other Comprehensive Income (Loss), net of tax 278 67 3,469 ( 1,566 ) Comprehensive Income 4,056 2,899 10,485 4,221 Less: comprehensive income attributable to the noncontrolling interest in subsidiary 3 4 6 7 Comprehensive Income Attributable to First Capital, Inc. $ 4,053 $ 2,895 $ 10,479 $ 4,214 See accompanying notes to consolidated financial statements. - 5 - Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FIRST CAPITAL, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) Accumulated Additional Other Unearned Common Paid-in Retained Comprehensive Stock Treasury Noncontrolling (In thousands) Stock Capital Earnings Loss Compensation Stock Interest Total Balances at April 1, 2025 $ 38 $ 41,823 $ 107,551 $ ( 19,799 ) $ ( 244 ) $ ( 9,289 ) $ 115 $ 120,195 Net income — — 3,775 — — — 3 3,778 Other comprehensive income — — — 278 — — — 278 Cash dividends — — ( 972 ) — — — ( 13 ) ( 985 ) Stock compensation expense — — — — 39 — — 39 Balances at June 30, 2025 $ 38 $ 41,823 $ 110,354 $ ( 19,521 ) $ ( 205 ) $ ( 9,289 ) $ 105 $ 123,305 Balances at April 1, 2024 $ 38 $ 41,676 $ 99,152 $ ( 25,666 ) $ ( 259 ) $ ( 9,216 ) $ 115 $ 105,840 Net income — — 2,828 — — — 4 2,832 Other comprehensive income — — — 67 — — — 67 Cash dividends — — ( 905 ) — — — ( 14 ) ( 919 ) Stock compensation expense — — — — 55 — — 55 Purchase of treasury shares — — — — — ( 13 ) — ( 13 ) Balances at June 30, 2024 $ 38 $ 41,676 $ 101,075 $ ( 25,599 ) $ ( 204 ) $ ( 9,229 ) $ 105 $ 107,862 Balances at January 1, 2025 $ 38 $ 41,676 $ 105,290 $ ( 22,990 ) $ ( 135 ) $ ( 9,280 ) $ 112 $ 114,711 Net income — — 7,010 — — — 6 7,016 Other comprehensive income — — — 3,469 — — — 3,469 Cash dividends — — ( 1,946 ) — — — ( 13 ) ( 1,959 ) Stock compensation expense — — — — 77 — — 77 Purchase of treasury shares — — — — — ( 9 ) — ( 9 ) Restricted stock grants — 147 — — ( 147 ) — — — Balances at June 30, 2025 $ 38 $ 41,823 $ 110,354 $ ( 19,521 ) $ ( 205 ) $ ( 9,289 ) $ 1

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FIRST CAPITAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES (In thousands) Net income $ 7,016 $ 5,787 Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: Amortization of premiums and accretion of discounts on securities, net 410 580 Depreciation and amortization expense 561 535 Deferred income taxes 7 ( 293 ) Stock compensation expense 77 133 Increase in cash value of life insurance ( 121 ) ( 114 ) Gain on life insurance ( 46 ) — Loss (gain) on sale of securities 55 ( 32 ) Provision for credit losses 644 640 Proceeds from sales of loans 11,765 15,088 Loans originated for sale ( 12,645 ) ( 16,192 ) Gain on sale of loans ( 241 ) ( 270 ) Amortization of tax credit investment 1,343 986 Unrealized loss on equity securities 23 74 Loss on disposal of premises and equipment 58 — Decrease (increase) in accrued interest receivable ( 67 ) 213 Increase in accrued interest payable 289 1,143 Net change in other assets/liabilities ( 1,017 ) 2,423 Net Cash Provided By Operating Activities 8,111 10,701 CASH FLOWS FROM INVESTING ACTIVITIES Net decrease in interest-bearing time deposits 490 980 Purchase of securities available for sale ( 54,519 ) ( 35,358 ) Proceeds from maturities of securities available for sale 25,705 22,480 Proceeds from sales of securities available for sale 11,192 19,189 Principal collected on mortgage-backed obligations 15,386 11,202 Net increase in loans receivable ( 18,619 ) ( 16,255 ) Investment in tax credit entities ( 1,344 ) — Investment in technology fund ( 60 ) ( 50 ) Proceeds from settlement of bank-owned life insurance policies 605 — Purchase of premises and equipment ( 489 ) ( 311 ) Net Cash (Used In) Provided By Investing Activities ( 21

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Presentation of Interim Information First Capital, Inc. ("Company") is the financial holding company of First Harrison Bank ("Bank"), an Indiana chartered commercial bank and wholly owned subsidiary. First Harrison Investments, Inc. and First Harrison Holdings, Inc. are wholly-owned Nevada corporate subsidiaries of the Bank that jointly own First Harrison, LLC, a Nevada limited liability corporation that holds and manages an investment portfolio. First Harrison REIT, Inc. ("REIT") is a wholly-owned subsidiary of First Harrison Holdings, Inc. that holds a portion of the Bank's real estate mortgage loan portfolio. In the opinion of management, the unaudited consolidated financial statements include all adjustments considered necessary to present fairly the financial position as of June 30, 2025, and the results of operations for the three and six months ended June 30, 2025 and 2024 and the cash flows for the six months ended June 30, 2025 and 2024. All of these adjustments are of a normal, recurring nature. Such adjustments are the only adjustments included in the unaudited consolidated financial statements. Interim results are not necessarily indicative of results for a full year or any other period. The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial statements and are presented as permitted by the instructions to Form 10-Q. Accordingly, they do not contain certain information included in the Company's annual audited consolidated financial statements and related footnotes for the year ended December 31, 2024 included in the Company's Annual Report on Form 10-K. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Certain prior per

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 3. Investment Securities Investment securities have been classified in the consolidated balance sheets according to management's intent. Investment securities at June 30, 2025 and December 31, 2024 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value June 30, 2025 Securities available for sale: Agency mortgage-backed securities $ 75,848 $ 28 $ 6,351 $ 69,525 Agency CMO 71,999 445 240 72,204 Agency notes and bonds 109,830 17 2,833 107,014 Treasury notes and bonds 8,858 — 74 8,784 Municipal obligations 154,170 253 16,361 138,062 Total securities available for sale $ 420,705 $ 743 $ 25,859 $ 395,589 Securities held to maturity: Other debt securities: Corporate notes $ 7,000 $ — $ 1,757 $ 5,243 Total securities held to maturity $ 7,000 $ — $ 1,757 $ 5,243 December 31, 2024 Securities available for sale: Agency mortgage-backed securities $ 76,295 $ — $ 8,354 $ 67,941 Agency CMO 47,821 197 500 47,518 Agency notes and bonds 122,834 6 4,760 118,080 Treasury notes and bonds 21,803 — 254 21,549 Municipal obligations 150,182 171 16,198 134,155 Total securities available for sale $ 418,935 $ 374 $ 30,066 $ 389,243 Securities held to maturity: Other debt securities: Corporate notes $ 7,000 $ — $ 2,409 $ 4,591 Total securities held to maturity $ 7,000 $ — $ 2,409 $ 4,591 Agency notes and bonds, agency mortgage-backed securities and agency collateralized mortgage obligations ("CMO") include securities issued by the Government National Mortgage Association ("GNMA"), a U.S. government agency, and the Federal National Mortgage Association ("FNMA"), the Federal Home Loan Mortgage Corporation ("FHLMC"), the Federal Farm Credit Bank ("FFCB") and the Federal Home Loan Ba

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (3 – continued) The amortized cost and fair value of debt securities as of June 30, 2025, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities and CMO may differ from contractual maturities because the mortgages underlying the obligations may be prepaid without penalty. Securities Available for Sale Securities Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Due in one year or less $ 74,873 $ 73,633 $ — $ — Due after one year through five years 61,702 58,984 — — Due after five years through ten years 71,200 63,472 2,000 1,580 Due after ten years 65,083 57,771 5,000 3,663 272,858 253,860 7,000 5,243 Mortgage-backed securities and CMO 147,847 141,729 — — $ 420,705 $ 395,589 $ 7,000 $ 5,243 Information pertaining to investment securities with gross unrealized losses at June 30, 2025, aggregated by investment category and the length of time that individual investment securities have been in a continuous loss position, follows. Number of Gross Investment Fair Unrealized (Dollars in thousands) Positions Value Losses June 30, 2025: Securities available for sale: Continuous loss position less than twelve months: Agency mortgage-backed securities 5 $ 5,750 $ 36 Agency CMO 7 11,319 82 Agency notes and bonds 2 1,994 7 Municipal obligations 36 19,157 593 Total less than twelve months 50 38,220 718 Continuous loss position more than twelve months: Agency mortgage-backed securities 93 55,935 6,315 Agency CMO 20 4,718 158 Agency notes and bonds 40 103,124 2,826 Treasury notes and bonds 5 8,784 74 Municipal obligations 184 96,139 15,768 Total more than twelve months 342 268,700 25,141 Total securities available for sale 392 $ 306,920 $ 25,859 Securities hel

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (3 – continued) Information pertaining to investment securities with gross unrealized losses at December 31, 2024, aggregated by investment category and the length of time that individual investment securities have been in a continuous position, follows. Number of Gross Investment Fair Unrealized (Dollars in thousands) Positions Value Losses December 31, 2024: Securities available for sale: Continuous loss position less than twelve months: Agency mortgage-backed securities 7 $ 8,008 $ 93 Agency CMO 11 19,211 215 Agency notes and bonds 7 4,830 57 Municipal obligations 39 18,880 334 Total less than twelve months 64 50,929 699 Continuous loss position more than twelve months: Agency mortgage-backed securities 93 59,933 8,261 Agency CMO 22 7,271 285 Agency notes and bonds 45 112,046 4,703 Treasury notes and bonds 8 21,549 254 Municipal obligations 196 103,201 15,864 Total more than twelve months 364 304,000 29,367 Total securities available for sale 428 $ 354,929 $ 30,066 Securities held to maturity: Continuous loss position less than twelve months: Corporate notes 4 $ 4,591 $ 2,409 Total less than twelve months 4 4,591 2,409 Total securities held to maturity 4 $ 4,591 $ 2,409 The Company has not identified any specific available for sale securities in a loss position that it intends to sell in the near term and does not believe that it will be required to sell any such securities. The Company reviews its securities on a quarterly basis to assess declines in fair value for credit losses. Consideration is given to such factors as the credit rating of the borrower, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. At June 30, 2025, management concluded that in all instances, securit

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (3 – continued) As of June 30, 2025 and December 31, 2024, the Company estimated expected credit losses to be immaterial based on the composition of the held to maturity securities portfolio. While management does not anticipate any credit losses at June 30, 2025, additional deterioration in market and economic conditions may have an adverse impact on credit quality in the future. There were no sales of available for sale securities during the three months ended June 30, 2025 or 2024. During the six months ended June 30, 2025, the Company recognized gross gains of $ 31,000 and gross losses of $ 86,000 on sales of available for sale securities. During the six months ended June 30, 2024, the Company recognized gross gains of $ 133,000 and gross losses of $ 101,000 on sales of available for sale securities. At June 30, 2025 and December 31, 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, with an aggregate book value greater that 10% of stockholders' equity. Accrued interest receivable on available for sale debt securities totaled $ 2.2 million and $ 2.1 million at June 30, 2025 and December 31, 2024, respectively, and was reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses. Accrued interest receivable on held to maturity debt securities totaled $ 18,000 at both June 30, 2025 and December 31, 2024, and was reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses. Equity Securities In September 2018, the Company acquired 90,000 shares of common stock in another BHC, representing approximately 5 % of the outstanding common stock of the entity, for a total investment of $ 1.9 million. During the three months ended June 30, 2025 and 2024, the Company recognized u

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing