Sign in

You're signed outSign in or to get full access.

FC

FIRST CAPITAL INC (FCAP)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered diluted EPS of $0.97, up from $0.88 in Q1 2024 and flat sequentially; net income was $3.24M as net interest margin expanded and credit quality improved .
  • Net interest margin rose to 3.28% (3.34% tax-equivalent), supported by higher asset yields and modestly higher liability costs; deposits and loans grew, while nonperforming assets declined to $4.1M .
  • Noninterest expense increased $0.42M YoY on compensation/benefits and occupancy/equipment, including snow-removal costs and asset disposals; effective tax rate rose to 17.2% .
  • Dividend maintained at $0.29/share; no formal guidance issued. Street consensus coverage appears unavailable for EPS or revenue this quarter; anchor comparisons to company-reported results .
  • Near-term catalysts: continued NIM improvement, deposit/loan growth, and NPA decline; watch expense trajectory and cost of funds trends given a higher-rate backdrop .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded to 3.28% (3.34% TEB) vs. 3.07% (3.14% TEB) a year ago, driven by higher average yields on interest-earning assets (4.63% tax-equivalent vs. 4.29% YoY) .
  • Balance sheet growth: deposits +$17.5M sequentially to $1.084B; gross loans +$12.0M to $652.5M; total assets +$27.0M to $1.215B .
  • Credit metrics improved: nonperforming assets fell to $4.1M from $4.5M at year-end; charge-offs were modest ($84k in Q1 2025) .

Management quote from the press release on operating conditions and cost drivers: “costs associated with snow removal across the Company’s branch network given the historic storms in our communities as well as a loss on the disposal of premises and equipment.”

What Went Wrong

  • Noninterest expense rose $424k YoY, led by compensation/benefits (+$259k) and occupancy/equipment (+$160k), pressuring operating leverage .
  • Effective tax rate increased to 17.2% from 14.6% YoY, dampening net income conversion .
  • Noninterest income decreased $51k YoY, including a $55k loss on AFS securities vs. a $32k gain last year and lower fees, partly offset by equity gains .

Financial Results

Income and EPS (USD Millions unless noted)

MetricQ3 2024Q4 2024Q1 2025
Total interest income$13.224 $13.192 $13.346
Total interest expense$4.099 $3.784 $3.765
Net interest income$9.125 $9.408 $9.581
Provision for credit losses$0.463 $0.346 $0.338
Net interest income after provision$8.662 $9.062 $9.243
Total noninterest income$1.800 $1.934 $1.848
Total noninterest expense$7.024 $7.047 $7.181
Income before taxes$3.438 $3.949 $3.910
Income tax expense$0.537 $0.684 $0.672
Net income$2.901 $3.265 $3.238
Diluted EPS$0.87 $0.97 $0.97

Margins and Returns

MetricQ3 2024Q4 2024Q1 2025
Net interest margin3.12% 3.26% 3.28%
Net interest margin (TEB)3.11% 3.33% 3.34%
Interest rate spread2.66% 2.81% 2.85%
Interest rate spread (TEB)2.69% 2.88% 2.92%
ROAA (annualized)0.97% 1.10% 1.08%
ROAE (annualized)10.48% 11.33% 11.12%
Net overhead / avg assets (annualized)2.35% 2.38% 2.40%

Balance Sheet and KPIs

MetricQ3 2024Q4 2024Q1 2025
Total assets$1.189B $1.188B $1.215B
Deposits$1.030B $1.066B $1.084B
Gross loans$639.6M $640.5M $652.5M
Nonperforming assets$4.483M $4.483M $4.093M
CBLR (Bank only)10.25% 10.57% 10.61%
Cash dividends per share$0.29 $0.29 $0.29

Note: Non-GAAP tax-equivalent margin measures reconciled in press release/8-K exhibits .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ1 2025$0.29 (Q4 2024) $0.29 (declared Feb 19, 2025) Maintained
Financial guidance (revenue, margins, OpEx, etc.)Q1 2025None disclosed None disclosed Maintained (no formal guidance)

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was located in company filings; themes are drawn from press releases.

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Net interest margin3.12% NIM; yield shift from securities to loans/FFS 3.26% NIM; TEB NIM 3.33% 3.28% NIM; TEB NIM 3.34% Improving
Cost of fundsAvg cost 1.87% in Q3 Avg cost 1.76% in Q4 Avg cost 1.71% in Q1 Improving
Asset yieldsAvg TEB yield 4.53% in Q3 4.64% in Q4 4.63% in Q1 Stable-high
Credit qualityNPAs up to $4.5M (two commercial relationships) NPAs $4.5M YE NPAs down to $4.1M; net charge-offs $84k Improving
Deposit trendsFlat YoY at $1.03B (Q3) +$41.2M YoY to $1.07B (YE) +$17.5M QoQ to $1.084B Growing
Operating expensesProfessional fees, comp/benefits up Professional fees, comp/benefits up Comp/benefits and occupancy/equipment up; snow-removal, asset disposal Pressure persists
CapitalCBLR 10.25% CBLR 10.57% CBLR 10.61% Strengthening

Management Commentary

  • Margin dynamics: “the average tax-equivalent yield… increased from 4.29%… to 4.63%… [while] the average cost of interest-bearing liabilities increased from 1.55%… to 1.71%,” lifting tax-equivalent NIM to 3.34% .
  • Expense drivers: “increases in compensation and benefits… as well as… costs associated with snow removal… given the historic storms… and a loss on the disposal of premises and equipment” .
  • Balance sheet and credit: Deposits and loans grew QoQ; NPAs decreased to $4.1M .

Q&A Highlights

No Q1 2025 earnings call transcript was found in company filings; therefore, no Q&A commentary or clarifications are available [Search returned none: earnings-call-transcript for FCAP].

Estimates Context

  • S&P Global consensus estimates for Q1 2025 EPS and revenue appear unavailable; the estimates dataset showed no EPS consensus and no counts for EPS or revenue. Comparisons to Street estimates are not feasible for this quarter; anchor on reported results [GetEstimates: Primary EPS Consensus Mean (empty), Revenue - # of Estimates (empty)].
  • Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Core earnings stable with diluted EPS $0.97; YoY improvement on higher margins despite elevated opex; watch cost discipline in coming quarters .
  • Margin trajectory favorable: asset yields remain strong and cost of funds eased, supporting NIM expansion; continued reinvestment from lower-yielding securities into higher-yield assets is constructive .
  • Credit quality improved as NPAs fell to $4.1M; provision increased modestly due to loan growth and macro uncertainty—keep monitoring commercial exposures .
  • Balance sheet momentum: deposits and loans both grew; sustained deposit inflows support funding stability and growth capacity .
  • Dividend maintained at $0.29/share affirms capital strength; CBLR at 10.61% provides cushion for growth and stress resilience .
  • With limited analyst coverage and no formal guidance, company-reported trends (NIM, deposit/loan growth, NPAs) are likely to drive the stock narrative; near-term trading may react to incremental margin/credit updates and expense visibility .
  • Focus for the next quarter: further NIM expansion vs. potential cost of funds volatility, trajectory of noninterest expenses, and sustained improvement in NPAs/charge-offs .