First Capital's Q3 Net Income Soars 54.5% on Strong Interest Gains

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

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

Sentiment: bullish

Topics: Regional Banking, Earnings Growth, Net Interest Income, Asset Quality, Dividend Increase, Investment Securities, Financial Performance

Related Tickers: FCAP

TL;DR

**FCAP is crushing it, with net income up over 50% this quarter, making it a solid buy for growth-focused investors.**

AI Summary

First Capital, Inc. reported a significant increase in net income, reaching $4.48 million for the three months ended September 30, 2025, up 54.5% from $2.90 million in the same period of 2024. For the nine months, net income attributable to First Capital, Inc. rose to $11.49 million in 2025 from $8.68 million in 2024, a 32.4% increase. Total interest income for the quarter increased to $14.66 million from $13.22 million year-over-year, driven by higher interest on loans and securities. Net interest income after provision for credit losses also saw a substantial rise, reaching $10.81 million for the quarter, compared to $8.66 million in 2024. The company's total assets grew to $1.24 billion as of September 30, 2025, from $1.19 billion at December 31, 2024. Loans, net of allowance for credit losses, increased to $642.33 million from $631.20 million. Total deposits also increased to $1.09 billion from $1.07 billion, with noninterest-bearing deposits growing to $213.50 million from $197.99 million. The allowance for credit losses increased to $9.86 million from $9.28 million, reflecting a prudent approach to loan portfolio quality. Unrealized gains on securities available for sale, net of tax, contributed $5.82 million to other comprehensive income for the quarter.

Why It Matters

First Capital's robust earnings growth, with a 54.5% jump in Q3 net income, signals strong operational performance and effective asset management in a competitive banking landscape. For investors, this indicates a healthy return on equity and potential for continued dividend growth, with dividends per share increasing to $0.31 from $0.29. Employees benefit from a stable and growing company, while customers can expect continued reliable banking services. The increase in total assets to $1.24 billion and deposits to $1.09 billion demonstrates market confidence and strengthens the company's position against regional competitors, suggesting a positive outlook for the broader financial market in its operating region.

Risk Assessment

Risk Level: medium — The company holds $421.63 million in securities available for sale with gross unrealized losses of $19.78 million as of September 30, 2025, and $7.00 million in securities held to maturity with $1.67 million in unrealized losses. While total equity increased significantly, the substantial unrealized losses on the investment portfolio, particularly $19.71 million on securities in a continuous loss position for more than twelve months, represent a market risk if interest rates continue to rise or if these securities need to be sold prematurely.

Analyst Insight

Investors should consider FCAP for its strong earnings growth and increasing dividends, but monitor the unrealized losses on its securities portfolio. A deeper dive into the duration and credit quality of these underwater securities is warranted to assess potential future impacts on capital and earnings.

Financial Highlights

debt To Equity
N/A
revenue
$14,658,000
operating Margin
N/A
total Assets
$1,235,477,000
total Debt
$0
net Income
$4,478,000
eps
$1.34
gross Margin
N/A
cash Position
$112,177,000
revenue Growth
+10.8%

Revenue Breakdown

SegmentRevenueGrowth
Loans, including fees$10,411,000+6.1%
Securities (Taxable)$2,257,000+30.4%
Interest bearing deposits with banks$1,281,000+14.1%
Service charges on deposit accounts$625,000+2.5%
ATM and debit card fees$1,191,000+4.1%
Gain on sale of loans$243,000+95.9%

Key Numbers

Key Players & Entities

FAQ

What were First Capital Inc.'s net income figures for Q3 2025?

First Capital Inc. reported net income of $4.48 million for the three months ended September 30, 2025, a significant increase from $2.90 million in the same period of 2024.

How did First Capital Inc.'s total assets change as of September 30, 2025?

As of September 30, 2025, First Capital Inc.'s total assets increased to $1.24 billion, up from $1.19 billion reported at December 31, 2024.

What is the current dividend per share for First Capital Inc.?

First Capital Inc. declared dividends per share of $0.31 for the three months ended September 30, 2025, an increase from $0.29 in the prior year.

What are the key drivers of First Capital Inc.'s interest income growth?

The increase in First Capital Inc.'s interest income was primarily driven by higher interest on loans, which rose to $10.41 million from $9.72 million, and taxable securities, which increased to $2.26 million from $1.73 million for the three months ended September 30, 2025.

What is the risk associated with First Capital Inc.'s investment securities?

First Capital Inc. holds $421.63 million in securities available for sale with gross unrealized losses of $19.78 million, and $7.00 million in securities held to maturity with $1.67 million in unrealized losses as of September 30, 2025. This represents a market risk if interest rates continue to rise.

How has First Capital Inc.'s allowance for credit losses changed?

First Capital Inc.'s allowance for credit losses increased to $9.86 million as of September 30, 2025, from $9.28 million at December 31, 2024, reflecting a proactive approach to managing loan portfolio risk.

What was the change in First Capital Inc.'s total deposits?

First Capital Inc.'s total deposits grew to $1.09 billion as of September 30, 2025, from $1.07 billion at December 31, 2024, indicating strong customer acquisition and retention.

Is First Capital Inc. considered a large accelerated filer?

No, First Capital Inc. is not a large accelerated filer. The filing indicates it is a 'Smaller reporting company' based on the definitions in Rule 12b-2 of the Exchange Act.

What was the total noninterest expense for First Capital Inc. in Q3 2025?

For the three months ended September 30, 2025, First Capital Inc.'s total noninterest expense was $7.56 million, an increase from $7.02 million in the same period of 2024.

What is the primary business of First Capital Inc.?

First Capital, Inc. is the financial holding company of First Harrison Bank, an Indiana chartered commercial bank, and its subsidiaries which manage an investment portfolio and a portion of the Bank's real estate mortgage loan portfolio.

Risk Factors

Industry Context

First Capital operates within the community banking sector, characterized by a focus on local markets and relationship-based lending. The industry is currently navigating a landscape of evolving interest rate environments and increasing competition from larger financial institutions and fintech companies. Deposit growth remains crucial, with a trend towards attracting noninterest-bearing deposits for cost efficiency.

Regulatory Implications

As a bank, First Capital is subject to stringent regulatory oversight from bodies like the Federal Reserve and FDIC. Compliance with capital adequacy ratios, lending standards, and consumer protection laws is paramount. Recent regulatory shifts may impact lending practices and capital requirements, necessitating ongoing adaptation.

What Investors Should Do

  1. Monitor loan growth and credit quality trends.
  2. Analyze the impact of interest rate changes on net interest margin.
  3. Assess the sustainability of noninterest income growth.
  4. Evaluate the company's capital management and dividend policy.

Key Dates

Glossary

Allowance for credit losses
An estimate of the amount of uncollectible loans in a company's loan portfolio. It is a contra-asset account that reduces the carrying value of loans on the balance sheet. (An increase in this allowance, as seen with First Capital's rise to $9.86 million, indicates a more conservative approach to potential loan defaults and risk management.)
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 on the balance sheet, with unrealized gains and losses recorded in other comprehensive income. (First Capital holds $421.63 million in AFS securities. The $5.82 million in unrealized gains (net of tax) for the quarter highlights the impact of market fluctuations on the company's equity.)
Accumulated other comprehensive loss
A component of equity that includes unrealized gains and losses on certain investments (like AFS securities), foreign currency translation adjustments, and pension adjustments that have not been recognized in net income. (First Capital's Accumulated other comprehensive loss improved from a loss of $22.99 million to $13.67 million, primarily due to unrealized gains on AFS securities.)
Net interest income
The difference between the interest income generated by a financial institution's interest-earning assets (like loans and securities) and the interest expense paid on its interest-bearing liabilities (like deposits). (First Capital's net interest income increased to $10.96 million for the quarter, a key driver of its overall profitability.)
Noninterest income
Revenue generated from sources other than traditional interest income, such as service charges, fees, and gains on sales of assets. (First Capital's noninterest income was $2.31 million for the quarter, contributing to its diversified revenue streams.)
Noninterest expense
Operating expenses of a financial institution that are not related to interest payments, such as salaries, rent, and technology costs. (Total noninterest expense for the quarter was $7.56 million, with compensation and benefits being the largest component at $4.09 million.)

Year-Over-Year Comparison

First Capital Inc. has demonstrated robust year-over-year performance. Total assets grew to $1.24 billion from $1.19 billion at the end of the prior year, and total deposits increased to $1.09 billion from $1.07 billion. Net income for the quarter surged by 54.5% to $4.48 million, driven by a substantial increase in net interest income. The allowance for credit losses has also seen a prudent increase, indicating proactive risk management. While the overall financial health appears strong, the company is managing market risks associated with its securities portfolio, as shown by accumulated other comprehensive loss improvements.

Filing Stats: 4,596 words · 18 min read · ~15 pages · Grade level 17.3 · Accepted 2025-11-14 16:32:20

Key Financial Figures

Filing Documents

Consolidated Financial Statements

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

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 8-31

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 32-35

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 36-37

Controls and Procedures

Item 4. Controls and Procedures 38 Part II Other Information 39

Legal Proceedings

Item 1. Legal Proceedings 39

Risk Factors

Item 1A. Risk Factors 39

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 39

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 39

Other Information

Item 5. Other Information 39

Exhibits

Item 6. Exhibits 40

Signatures

Signatures - 2 - Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FIRST CAPITAL, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, December 31, 2025 2024 (In thousands) ASSETS Cash and due from banks $ 20,569 $ 18,418 Interest bearing deposits with banks 91,608 87,499 Total cash and cash equivalents 112,177 105,917 Interest-bearing time deposits 2,205 2,695 Securities available for sale, at fair value (amortized cost $ 439,219 and $ 418,935 , respectively) 421,627 389,243 Securities held to maturity, at amortized cost (fair value $ 5,332 and $ 4,591 , respectively) 7,000 7,000 Loans held for sale 1,026 472 Loans, net of allowance for credit losses of $ 9,861 ($ 9,281 in 2024) 642,332 631,199 Federal Home Loan Bank and other stock, at cost 1,836 1,836 Premises and equipment 13,932 14,179 Accrued interest receivable 4,789 4,575 Cash value of life insurance 8,942 9,329 Goodwill 6,472 6,472 Core deposit intangible — 86 Other assets 13,139 14,520 Total Assets $ 1,235,477 $ 1,187,523 LIABILITIES Deposits: Noninterest-bearing $ 213,495 $ 197,993 Interest-bearing 881,238 868,446 Total deposits 1,094,733 1,066,439 Accrued interest payable 2,118 1,922 Accrued expenses and other liabilities 6,077 4,451 Total liabilities 1,102,928 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 3,353,910 ( 3,351,703 in 2024) 38 38 Additional paid-in capital 41,823 41,676 Retained earnings-substantially restricted 113,793 105,290 Unearned stock compensation ( 192 ) ( 135 ) Accumulated other comprehensive loss ( 13,669 ) ( 22,990 ) Less treasury stock, at cost - 456,973 shares ( 455,280 in 2024) ( 9,352 ) ( 9,280 ) Total First Capital, Inc. stockholders' equity 132,4

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FIRST CAPITAL, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 INTEREST INCOME (In thousands, except per share data) Loans, including fees $ 10,411 $ 9,716 $ 30,439 $ 28,426 Securities: Taxable 2,257 1,730 6,070 5,116 Tax-exempt 684 628 1,998 1,968 Dividends 25 27 76 63 Interest bearing deposits with banks 1,281 1,123 3,461 1,706 Total interest income 14,658 13,224 42,044 37,279 INTEREST EXPENSE Deposits 3,702 3,688 11,095 9,597 Advances - FHLB — — — 99 Borrowed funds - Bank Term Funding Program ("BTFP") — 411 — 1,201 Total interest expense 3,702 4,099 11,095 10,897 Net interest income 10,956 9,125 30,949 26,382 Provision for credit losses 150 463 794 1,103 Net interest income after provision for credit losses 10,806 8,662 30,155 25,279 NONINTEREST INCOME Service charges on deposit accounts 625 610 1,806 1,767 ATM and debit card fees 1,191 1,144 3,374 3,354 (Loss) gain on sale of securities ( 39 ) — ( 94 ) 32 Unrealized gain (loss) on equity securities 150 ( 196 ) 127 ( 270 ) Gain on sale of loans 243 124 484 394 Increase in cash surrender value of life insurance 51 47 172 161 Other income 85 71 303 284 Total noninterest income 2,306 1,800 6,172 5,722 NONINTEREST EXPENSE Compensation and benefits 4,093 3,891 12,465 11,696 Occupancy and equipment 807 476 1,979 1,419 Data processing 1,182 1,164 3,446 3,355 Professional fees 290 334 903 896 Advertising 147 107 341 274 Other expenses 1,045 1,052 3,105 3,141 Total noninterest expense 7,564 7,024 22,239 20,781 Income before income taxes 5,548 3,438 14,088 10,220 Income tax expense 1,067 537 2,591 1,532 Net

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FIRST CAPITAL, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (In thousands) Net Income $ 4,481 $ 2,901 $ 11,497 $ 8,688 OTHER COMPREHENSIVE INCOME Unrealized gains on securities available for sale: Unrealized holding gains arising during the period 7,485 9,252 12,006 7,374 Income tax expense ( 1,664 ) ( 2,154 ) ( 2,759 ) ( 1,817 ) Net of tax amount 5,821 7,098 9,247 5,557 Less: reclassification adjustment for realized losses (gains) included in net income 39 — 94 ( 32 ) Income tax (benefit) expense ( 8 ) — ( 20 ) 7 Net of tax amount 31 — 74 ( 25 ) Other Comprehensive Income, net of tax 5,852 7,098 9,321 5,532 Comprehensive Income 10,333 9,999 20,818 14,220 Less: comprehensive income attributable to the noncontrolling interest in subsidiary 3 3 9 10 Comprehensive Income Attributable to First Capital, Inc. $ 10,330 $ 9,996 $ 20,809 $ 14,210 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 July 1, 2025 $ 38 $ 41,823 $ 110,354 $ ( 19,521 ) $ ( 205 ) $ ( 9,289 ) $ 105 $ 123,305 Net income — — 4,478 — — — 3 4,481 Other comprehensive income — — — 5,852 — — — 5,852 Cash dividends — — ( 1,039 ) — — — — ( 1,039 ) Stock compensation expense — — — — 13 — — 13 Purchase of treasury shares — — — — — ( 52 ) — ( 52 ) Taxes paid on stock award shares for employees — — — — — ( 11 ) — ( 11 ) Balances at September 30, 2025 $ 38 $ 41,823 $ 113,793 $ ( 13,669 ) $ ( 192 ) $ ( 9,352 ) $ 108 $ 132,549 Balances at July 1, 2024 $ 38 $ 41,676 $ 101,075 $ ( 25,599 ) $ ( 204 ) $ ( 9,229 ) $ 105 $ 107,862 Net income — — 2,898 — — — 3 2,901 Other comprehensive income — — — 7,098 — — — 7,098 Cash dividends — — ( 972 ) — — — — ( 972 ) Stock compensation expense — — — — 35 — — 35 Purchase of treasury shares — — — — — ( 34 ) — ( 34 ) Taxes paid on stock award shares for employees — — — — — ( 7 ) — ( 7 ) Balances at September 30, 2024 $ 38 $ 41,676 $ 103,001 $ ( 18,501 ) $ ( 169 ) $ ( 9,270 ) $ 108 $ 116,883 Balances at January 1, 2025 $ 38 $ 41,676 $ 105,290 $ ( 22,990 ) $ ( 135 ) $ ( 9,280 ) $ 112 $ 114,711 Net income — — 11,488 — — — 9 11,497 Other comprehensive income — — — 9,321 — — — 9,321 Cash dividends — — ( 2,985 ) — — — ( 13 ) ( 2,998 ) Stock compensation expense — — —

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FIRST CAPITAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES (In thousands) Net income $ 11,497 $ 8,688 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 597 844 Depreciation and amortization expense 831 809 Deferred income taxes 10 ( 440 ) Stock compensation expense 90 168 Increase in cash value of life insurance ( 172 ) ( 161 ) Gain on life insurance ( 47 ) — Loss (gain) on sale of securities 94 ( 32 ) Provision for credit losses 794 1,103 Proceeds from sales of loans 25,880 24,844 Loans originated for sale ( 25,950 ) ( 24,328 ) Gain on sale of loans ( 484 ) ( 394 ) Amortization of tax credit investment 2,301 1,393 Unrealized (gain) loss on equity securities ( 127 ) 270 Loss on disposal of premises and equipment 156 — (Increase) decrease in accrued interest receivable ( 214 ) 570 Increase in accrued interest payable 196 1,293 Net change in other assets/liabilities 600 3,654 Net Cash Provided By Operating Activities 16,052 18,281 CASH FLOWS FROM INVESTING ACTIVITIES Net decrease in interest-bearing time deposits 490 1,225 Purchase of securities available for sale ( 107,967 ) ( 47,794 ) Proceeds from maturities of securities available for sale 45,125 46,188 Proceeds from sales of securities available for sale 17,911 19,189 Principal collected on mortgage-backed obligations 23,955 17,750 Net increase in loans receivable ( 11,927 ) ( 17,301 ) Investment in tax credit entities ( 2,532 ) ( 88 ) Investment in technology fund ( 23 ) ( 100 ) Proceeds from settlement of bank-owned life insurance policies 606 — Purchase of premises and equipment ( 654 ) ( 394 ) Net Cash (Used In) Provided

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 September 30, 2025, and the results of operations for the three and nine months ended September 30, 2025 and 2024 and the cash flows for the nine months ended September 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.

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 September 30, 2025 and December 31, 2024 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value September 30, 2025 Securities available for sale: Agency mortgage-backed securities $ 88,418 $ 486 $ 5,228 $ 83,676 Agency CMO 96,313 833 140 97,006 Agency notes and bonds 93,550 33 1,756 91,827 Treasury notes and bonds 5,478 — 37 5,441 Municipal obligations 155,460 837 12,620 143,677 Total securities available for sale $ 439,219 $ 2,189 $ 19,781 $ 421,627 Securities held to maturity: Other debt securities: Corporate notes $ 7,000 $ — $ 1,668 $ 5,332 Total securities held to maturity $ 7,000 $ — $ 1,668 $ 5,332 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 H

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (3 – continued) The amortized cost and fair value of debt securities as of September 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 $ 78,907 $ 77,724 $ — $ — Due after one year through five years 39,065 37,498 — — Due after five years through ten years 72,513 66,444 2,000 1,600 Due after ten years 64,003 59,279 5,000 3,732 254,488 240,945 7,000 5,332 Mortgage-backed securities and CMO 184,731 180,682 — — $ 439,219 $ 421,627 $ 7,000 $ 5,332 Information pertaining to investment securities with gross unrealized losses at September 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 Securities available for sale: Continuous loss position less than twelve months: Agency mortgage-backed securities — $ — $ — Agency CMO — — — Agency notes and bonds — — — Municipal obligations 9 3,846 71 Total less than twelve months 9 3,846 71 Continuous loss position more than twelve months: Agency mortgage-backed securities 92 53,836 5,228 Agency CMO 21 7,195 140 Agency notes and bonds 34 88,194 1,756 Treasury notes and bonds 3 5,441 37 Municipal obligations 177 98,417 12,549 Total more than twelve months 327 253,083 19,710 Total securities available for sale 336 $ 256,929 $ 19,781 Securities held to maturity: Continuous loss positi

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 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 September 30, 2025, management concluded that in all instances, securities with fair va

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (3 – continued) As of September 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 September 30, 2025, additional deterioration in market and economic conditions may have an adverse impact on credit quality in the future. During the three months ended September 30, 2025, the Company recognized gross gains of $ 21,000 and gross losses of $ 60,000 on sales of available for sale securities. There were no sales of available for sale securities during the three months ended September 30, 2024. During the nine months ended September 30, 2025, the Company recognized gross gains of $ 53,000 and gross losses of $ 147,000 on sales of available for sale securities. During the nine months ended September 30, 2024, the Company recognized gross gains of $ 133,000 and gross losses of $ 101,000 on sales of available for sale securities. At September 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 than 10% of stockholders' equity. Accrued interest r

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