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PRE-MKT · 07:40 ET
Market ClerkRecap
Tue Oct 27 · pre-market3 signals today140 insider buys this week · $73.9MCIRO short report next: Oct 31The week ahead

FCAP

FIRST CAPITAL INC
NASDAQ · FINANCIALS · SAVINGS INSTITUTION, FEDERALLY CHARTERED
64.43
+1.08 +1.70%
USD · close Oct 26
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Work order
0
FLAG · shorts 0
Insiders, 90 days
0
no open-market filings in 90 days
Congress, 90 days
0 / 0
no disclosures naming it
Big money
0 / 15
none of the tracked funds disclose it
Calls on record
0
nobody we score has called it yet
MKT CAP $215.5MP/E 11.7DIV YIELD 1.92%FCF YIELD 10.07%REV TTM —NET INCOME $18.4M +40.1%NET CASH —52W 42.05 – 69.70SEC XBRL · TTM TO Invalid Date

How FCAP rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
82%
of sentences unchanged
Added
57
new sentences
Dropped
82
sentences removed
Length
+553
words, now 22,557

New in FY2025

  • For the year ended December 31, 2025, the Bank originated and funded $41.8 million of residential mortgage loans for sale in the secondary market.
  • At December 31, 2025, the Bank had approved speculative construction loans, a construction loan for which there is not a commitment for permanent financing in place at the time the construction loan was originated, with total commitments of $6.8 million and outstanding balances of $3.1 million.
  • Because payments on loans secured by commercial properties are often dependent on the successful operation and management of the properties, repayment of such loans may be affected by adverse conditions in the real estate market or the economy.
  • Approved credit lines totaled $39.3 million at December 31, 2025, of which $11.9 million was outstanding.
  • Such loans are generally originated at fixed interest rates for terms up to five years and at LTV ratios up to 90% of the Kelley Blue Book value in the case of used vehicles and 100% of the purchase price in the case of new vehicles.
  • Loan Maturity and Repricing The following table sets forth certain information at December 31, 2025 regarding the dollar amount of loans maturing in the Bank’s portfolio based on their contractual terms to maturity, but does not include potential prepayments.
  • Loan balances do not include undisbursed loan proceeds, unearned income and Allowance for Credit Losses (“ACL”) on loans. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ After ​ After ​ ​ ​ ​ ​ ​ ​ ​ One Year ​ 5 Years ​ ​ ​ ​ ​ ​ Within ​ Through ​ Through ​ After ​ ​ ​ ​ ​ ​ One Year ​ ​ ​ 5 Years ​ ​ ​ 15 Years ​ ​ ​ 15 Years ​ ​ ​ Total ​ ​ (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 Family Residential Mortgage ​ $ 3,608 ​ $ 16,793 ​ $ 64,884 ​ $ 55,392 ​ $ 140,677 Multifamily Residential ​ 4,255 ​ 19,545 ​ 45,767 ​ — ​ 69,567 Commercial Real Estate ​ 18,045 ​ 71,553 ​ 80,625 ​ 36,901 ​ 207,124 1-4 Family Residential Construction ​ 15,357 ​ — ​ — ​ ​ 15,445 Other Construction, Development and Land ​ ​ 16,631 ​ 15,494 ​ 8,551 ​ 41,227 Home Equity and Second Mortgage ​ 3,790 ​ 11,421 ​ 31,661 ​ 24,563 ​ 71,435 Commercial Business ​ 18,676 ​ 31,825 ​ ​ 8,533 ​ 2,957 ​ 61,991 Consumer and Other ​ 16,679 ​ 33,012 ​ 5,985 ​ — ​ 55,676 Total Gross Loans ​ $ 80,961 ​ $ 200,780 ​ $ 252,949 ​ $ 128,452 ​ $ 663,142 ​ The following table sets forth the dollar amount of all loans due after December 31, 2025, which have fixed interest rates and have floating or adjustable interest rates. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Floating or ​ ​ Fixed ​ Adjustable ​ ​ ​ ​ Rates ​ ​ ​ Rates ​ ​ (In thousands) ​ ​ ​ ​ ​ ​ ​ 1-4 Family Residential Mortgage ​ $ 52,484 ​ $ 84,585 Multifamily Residential ​ 29,536 ​ 35,776 Commercial Real Estate ​ 67,904 ​ 121,175 1-4 Family Residential Construction ​ — ​ Other Construction, Development and Land ​ 20,228 ​ 20,448 Home Equity and Second Mortgage ​ 8,474 ​ 59,171 Commercial Business ​ 37,765 ​ 5,550 Consumer and Other ​ 34,194 ​ 4,803 Total Gross Loans ​ $ 250,585 ​ $ 331,596 ​ Loan Solicitation and Processing.
  • The Bank had outstanding loan commitments of approximately $20.6 million at December 31, 2025.
  • At December 31, 2025, the Bank had outstanding letters of credit of $308,000.
  • The Bank had $1.1 million of net deferred loan costs at December 31, 2025.
  • At December 31, 2025, the Bank had commitments to originate $799,000 in fixed-rate mortgage loans intended for sale in the secondary market after the loans are closed.
  • However, at December 31, 2025, the Bank had no commitments required to be accounted for at fair value, as all mortgage loan commitments were best efforts commitments where specific loans were committed to be delivered if and when the loans were sold.
  • The Bank did not recognize any interest income on nonaccrual loans for the fiscal year ended December 31, 2025.
  • The Bank would have recorded interest income of $275,000 for the year ended December 31, 2025 had nonaccrual loans been current in accordance with their original terms.
  • At December 31, 2025, nonperforming loans totaled $4.4 million, consisting of nonaccrual loans and accruing loans past due 90 days or more.
  • At December 31, 2025, the Bank had $4.3 million in doubtful/nonaccrual loans and $2.7 million in substandard loans.
  • In addition, the Bank identified $1.9 million in loans as special mention loans at December 31, 2025.
  • New appraisals are generally obtained for all significant properties when a loan is initially individually evaluated for credit losses, and a property is considered significant if the value of the property is estimated to exceed $200,000.
  • At December 31, 2025, discounts from appraised values used in management’s analysis for estimates of changes in market conditions and the condition of the collateral ranged from 20% to 40%, with a weighted average discount of 39%.
  • At December 31, 2025, the Bank had no foreclosed real estate.
  • At December 31, 2025, the Company’s specific allocation of the ACL for loans totaled $1.3 million.
  • At December 31, 2025, the Company’s ACL on loans totaled $10.1 million, of which $7.6 million related to qualitative factor adjustments.
  • At December 31, 2024, the Company’s ACL totaled $9.3 million, of which $6.4 million related to qualitative factor adjustments.
  • Allowance for Credit Losses Analysis The following table sets forth an analysis of the Bank’s ACL on loans for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 9,281 ​ $ 8,005 ​ $ 7,333 ​ Provision for credit losses ​ 1,144 ​ 1,449 ​ 1,141 ​ ​ ​ 10,425 ​ 9,454 ​ 8,474 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recoveries: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 Family Residential Mortgage ​ ​ ​ ​ Multifamily Residential ​ — ​ — ​ — ​ Commercial Real Estate ​ — ​ ​ — ​ 1-4 Family Residential Construction ​ — ​ — ​ — ​ Other Construction, Development and Land ​ ​ — ​ — ​ Home Equity and Second Mortgage ​ ​ ​ ​ Commercial Business ​ ​ ​ ​ Consumer and Other ​ ​ ​ ​ Total recoveries ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Charge-offs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 Family Residential Mortgage ​ ​ ​ ​ Multifamily Residential ​ — ​ — ​ — ​ Commercial Real Estate ​ — ​ — ​ — ​ 1-4 Family Residential Construction ​ — ​ — ​ — ​ Other Construction, Development and Land ​ — ​ — ​ — ​ Home Equity and Second Mortgage ​ — ​ — ​ ​ Commercial Business ​ ​ — ​ ​ Consumer and Other ​ ​ ​ ​ Total charge-offs ​ ​ ​ ​ Net charge-offs ​ (317) ​ (173) ​ (469) ​ Balance at end of period ​ $ 10,108 ​ $ 9,281 ​ $ 8,005 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ratio of allowance to total loans outstanding at the end of the period ​ 1.52 % 1.45 % 1.29 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ratio of nonaccrual loans to total loans ​ 0.64 % 0.69 % 0.28 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance as a % of nonperforming loans ​ 232.31 % 211.80 % 457.17 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ratio of net charge-offs to average loans outstanding during the period: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1-4 Family Residential Mortgage ​ 0.00 % -0.02 % 0.01 % Multifamily Residential ​ 0.00 % 0.00 % 0.00 % Commercial Real Estate ​ 0.00 % 0.00 % 0.00 % 1-4 Family Residential Construction ​ 0.00 % 0.00 % 0.00 % Other Construction, Development and Land ​ 0.00 % 0.00 % 0.00 % Home Equity and Second Mortgage ​ 0.00 % -0.01 % 0.02 % Commercial Business ​ 0.08 % 0.00 % 0.29 % Consumer and Other ​ 0.49 % 0.35 % 0.45 % Total net charge-offs to average loans outstanding during the period ​ 0.05 % 0.03 % 0.08 % ​ ACL on Loans Analysis.
  • The following table sets forth the breakdown of the ACL on loans by loan category at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ ​ ​ ​ ​ ​ ​ Percent of Outstanding ​ ​ ​ ​ ​ ​ ​ Percent of Outstanding ​ ​ Amount ​ Loans in Category ​ Amount ​ Loans in Category ​ ​ (Dollars in thousands) 1-4 Family Residential Mortgage ​ $ 1,393 21.21 % $ 1,592 21.73 % Multifamily Residential ​ 10.49 % 5.77 % Commercial Real Estate ​ 3,243 31.23 % 2,459 28.91 % 1-4 Family Residential Construction ​ 2.33 % 2.38 % Other Construction, Development and Land ​ 6.22 % 11.86 % Home Equity and Second Mortgage ​ 10.77 % 10.41 % Commercial Business ​ 2,252 9.35 % 2,424 9.81 % Consumer and Other ​ 8.40 % 1,011 9.13 % Total allowance for credit losses ​ $ 10,108 100.00 % $ 9,281 100.00 % ​ Investment Activities As an Indiana chartered commercial bank, the Bank has the authority to invest in various types of liquid assets, including United States Treasury obligations, securities of various federal agencies and of state and municipal governments, deposits at the applicable FHLB, certificates of deposit of federally insured institutions, certain bankers’ acceptances and federal funds.
  • As of December 31, 2025, all of the Bank’s mortgage-backed securities had fixed rates.
  • The Bank also invests in collateralized mortgage obligations (“CMOs”) issued by Ginnie Mae, Fannie Mae and Freddie Mac.
  • CMOs are complex mortgage-backed securities that restructure the cash flows and risks of the underlying mortgage collateral. ​ ​ The following table sets forth the securities portfolio at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Fair ​ Amortized ​ Percent of ​ Average ​ Fair ​ Amortized ​ Percent of ​ Average ​ ​ Value ​ Cost ​ Portfolio ​ Yield (1) ​ Value ​ Cost ​ Portfolio ​ Yield (1) ​ ​ (Dollars in thousands) SECURITIES AVAILABLE FOR SALE ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S.
  • Agency notes and bonds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due in one year or less ​ $ 58,749 ​ $ 59,450 13.54 % 0.86 % $ 44,604 ​ $ 45,650 10.72 % 0.77 % Due after one year through five years ​ 11,264 ​ 11,650 2.65 % 1.29 % 69,986 ​ 73,658 17.29 % 1.04 % Due after five years through ten years ​ 4,378 ​ 4,348 0.99 % 5.07 % 3,490 ​ 3,526 0.83 % 4.76 % Due after ten years ​ — ​ — 0.00 % 0.00 % — ​ — 0.00 % 0.00 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S.
  • Treasury notes and bonds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due in one year or less ​ — ​ — 0.00 % 0.00 % 18,772 ​ 18,940 4.45 % 1.72 % Due after one year through five years ​ 2,461 ​ 2,485 0.57 % 2.84 % 2,777 ​ 2,864 0.67 % 2.92 % Due after five years through ten years ​ — ​ — 0.00 % 0.00 % — ​ — 0.00 % 0.00 % Due after ten years ​ — ​ — 0.00 % 0.00 % — ​ — 0.00 % 0.00 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities and CMOs (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due in one year or less ​ ​ 0.01 % 1.11 % ​ 0.02 % 0.98 % Due after one year through five years ​ 4,519 ​ 4,644 1.06 % 1.70 % 5,048 ​ 5,245 1.23 % 1.58 % Due after five years through ten years ​ 9,709 ​ 10,460 2.38 % 1.46 % 8,625 ​ 9,304 2.18 % 1.69 % Due after ten years ​ 178,384 ​ 181,068 41.22 % 4.26 % 101,696 ​ 109,476 25.71 % 3.48 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Municipal obligations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due in one year or less ​ 1,544 ​ 1,560 0.36 % 1.68 % 1,626 ​ 1,617 0.38 % 3.94 % Due after one year through five years ​ 19,964 ​ 20,869 4.75 % 1.94 % 24,840 ​ 26,118 6.13 % 2.08 % Due after five years through ten years ​ 68,574 ​ 74,890 17.05 % 2.58 % 50,011 ​ 56,033 13.16 % 2.70 % Due after ten years ​ 57,580 ​ 60,679 13.82 % 3.75 % 57,678 ​ 66,413 15.59 % 2.71 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 417,190 ​ $ 432,167 98.40 % ​ ​ $ 389,243 ​ $ 418,935 98.36 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SECURITIES HELD TO MATURITY (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate notes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due in one year or less ​ $ — ​ $ — 0.00 % 0.00 % $ — ​ $ — 0.00 % 0.00 % Due after one year through five years ​ — ​ — 0.00 % 0.00 % — ​ — 0.00 % 0.00 % Due after five years through ten years ​ 1,560 ​ 2,000 0.46 % 3.27 % 1,324 ​ 2,000 0.47 % 3.25 % Due after ten years ​ 3,683 ​ 5,000 1.14 % 3.91 % 3,267 ​ 5,000 1.17 % 3.92 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 5,243 ​ $ 7,000 1.60 % ​ ​ $ 4,591 ​ $ 7,000 1.64 % ​ ​ (1) Yields are calculated on a fully taxable equivalent basis using a marginal federal income tax rate of 21%.
  • At December 31, 2025, the estimated reserve was immaterial.
  • The following table presents the maturity distribution of time deposits that are in excess of the FDIC insurance limit (currently $250,000) as of December 31, 2025. ​ ​ ​ ​ Maturity Period ​ ​ ​ Balance ​ ​ (In thousands) ​ ​ ​ ​ Three months or less ​ $ 26,439 Three through six months ​ 24,305 Six through twelve months ​ 13,514 Over twelve months ​ 2,355 Total ​ $ 66,613 ​ Uninsured deposits, which are the portion of deposit accounts that exceed the FDIC insurance limit (currently $250,000), were approximately $263.8 million and $331.4 million at December 31, 2025 and 2024, respectively.
  • The following table sets forth the balances of deposits in the various types of accounts offered by the Bank at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ ​ ​ Percent ​ ​ ​ ​ ​ Percent ​ ​ ​ ​ ​ ​ of ​ Increase ​ ​ ​ of ​ Increase ​ ​ ​ ​ Amount ​ ​ ​ Total ​ ​ ​ (Decrease) ​ ​ ​ Amount ​ ​ ​ Total ​ ​ ​ (Decrease) ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-interest bearing demand ​ $ 220,053 19.60 % $ 22,060 ​ $ 197,993 18.57 % $ (7,541) NOW accounts ​ 361,245 32.17 % (15,892) ​ 377,137 35.36 % (14,096) Savings accounts ​ 222,500 19.81 % (135) ​ 222,635 20.88 % (14,907) Money market accounts ​ 81,824 7.29 % 13,030 ​ 68,794 6.45 % 3,479 Fixed rate time deposits ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ which mature: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Within one year ​ 221,957 19.76 % 33,722 ​ 188,235 17.65 % 77,549 After one year, but ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ within three years ​ 13,409 1.19 % 3,663 ​ 9,746 0.91 % (2,721) After three years, but ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ within five years ​ 2,002 0.18 % ​ 1,899 0.18 % (535) After five years ​ — 0.00 % — ​ — 0.00 % — Total ​ $ 1,122,990 100.00 % $ 56,551 ​ $ 1,066,439 100.00 % $ 41,228 ​ Borrowings.
  • Advances from the FHLB are secured by certain investment securities, first mortgage loans and Home Equity Lines of Credit.
  • While the Bank has conducted a test borrowing through the Discount Window, at December 31, 2025, there were no borrowings outstanding through the Discount Window.
  • This agreement expires on March 2, 2027.
  • At December 31, 2025, there were no borrowings under the agreement.
  • The Bank did not utilize either advances from the FHLB or borrowings from the FRB during the year ended December 31, 2025.
  • The Bank had no outstanding borrowings at December 31, 2025.
  • See Note 10 in the accompanying Notes to Consolidated Financial Statements for additional information regarding the Bank’s utilization of borrowed funds in prior years.

and 17 more.

Gone since FY2024

  • For the year ended December 31, 2024, the Bank originated and funded $32.8 million of residential mortgage loans for sale in the secondary market.
  • At December 31, 2024, the Bank had approved speculative construction loans, a construction loan for which there is not a commitment for permanent financing in place at the time the construction loan was originated, with total commitments of $5.2 million and outstanding balances of $3.2 million.
  • Because payments on loans secured by multi-family and commercial properties are often dependent on the successful operation and management of the properties, repayment of such loans may be affected by adverse conditions in the real estate market or the economy.
  • Approved credit lines totaled $39.1 million at December 31, 2024, of which $15.2 million was outstanding.
  • Such loans are generally originated at fixed interest rates for terms up to five years and at LTV ratios up to 90% of the blue book value in the case of used vehicles and 90% of the purchase price in the case of new vehicles.
  • Loan Maturity and Repricing The following table sets forth certain information at December 31, 2024 regarding the dollar amount of loans maturing in the Bank’s portfolio based on their contractual terms to maturity, but does not include potential prepayments.
  • Loan balances do not include undisbursed loan proceeds, unearned income and allowance for credit losses (“ACL”) on loans.
  • After After One Year 5 Years Within Through Through After One Year 5 Years 15 Years 15 Years Total (In thousands) 1-4 Family Residential Mortgage $ 3,962 $ 18,333 $ 69,550 $ 47,091 $ 138,936 Multifamily Residential 1,778 7,936 27,108 - 36,822 Commercial Real Estate 7,670 60,826 85,785 30,570 184,851 1-4 Family Residential Construction 14,205 - 15,245 Other Construction, Development and Land 10,601 43,277 16,062 5,900 75,840 Home Equity and Second Mortgage 2,980 5,447 8,883 49,239 66,549 Commercial Business 18,732 32,005 8,765 3,225 62,727 Consumer and Other 15,982 35,836 6,588 - 58,406 Total Gross Loans $ 75,910 $ 204,288 $ 222,741 $ 136,437 $ 639,376 The following table sets forth the dollar amount of all loans due after December 31, 2025, which have fixed interest rates and have floating or adjustable interest rates.
  • Floating or Fixed Adjustable Rates Rates (In thousands) 1-4 Family Residential Mortgage $ 53,940 $ 81,034 Multifamily Residential 10,142 24,902 Commercial Real Estate 55,788 121,393 1-4 Family Residential Construction - 1,040 Other Construction, Development and Land 38,232 27,007 Home Equity and Second Mortgage 9,335 54,234 Commercial Business 37,768 6,227 Consumer and Other 37,677 4,747 Total Gross Loans $ 242,882 $ 320,584 Loan Solicitation and Processing.
  • The Bank had outstanding loan commitments of approximately $16.5 million at December 31, 2024.
  • At December 31, 2024, the Bank had outstanding letters of credit of $2.1 million.
  • The Bank had $1.1 million of net deferred loan costs at December 31, 2024.
  • At December 31, 2024, the Bank had commitments to originate $836,000 in fixed-rate mortgage loans intended for sale in the secondary market after the loans are closed.
  • However, at December 31, 2024, the Bank had no commitments required to be accounted for at fair value, as all mortgage loan commitments were best efforts commitments where specific loans were committed to be delivered if and when the loans were sold.
  • The Bank did not recognize any interest income on nonaccrual loans for the fiscal year ended December 31, 2024.
  • The Bank would have recorded interest income of $245,000 for the year ended December 31, 2024 had nonaccrual loans been current in accordance with their original terms.
  • At December 31, 2024, nonperforming loans totaled $4.4 million, consisting entirely of nonaccrual loans.
  • At December 31, 2024, the Bank had $4.4 million in doubtful/nonaccrual loans and $4.3 million in substandard loans.
  • In addition, the Bank identified $5.5 million in loans as special mention loans at December 31, 2024.
  • New appraisals are generally obtained for all significant properties when a loan is individually evaluated for credit losses, and a property is considered significant if the value of the property is estimated to exceed $200,000.
  • At December 31, 2024, discounts from appraised values used in management’s analysis for estimates of changes in market conditions and the condition of the collateral ranged from 10% to 20%, with a weighted average discount of 11%.
  • At December 31, 2024, the Bank had no foreclosed real estate.
  • Effective January 1, 2023, the Company adopted FASB ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) , as amended, under the modified retrospective method.
  • The adoption replaced the allowance for loan losses with the 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 the beginning ACL on loans of $561,000.
  • In addition, the Company established an ACL related to unfunded loan commitments of $131,000 upon adoption of ASU 2016-13.
  • The use of the modified retrospective method of adoption resulted in the Company recording a $529,000 reduction (net of tax) in retained earnings as of January 1, 2023.
  • Results for reporting periods after January 1, 2023 are presented under Accounting Standards Codification (“ASC”) 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP.
  • The Company expanded the loan portfolio segments used to determine the ACL on loans into eight loan segments as opposed to seven loan segments under the incurred loss methodology.
  • Prior year activity in the ACL on loans within this annual report reflect the reclassification of the ACL on loans to account for the expanded portfolio segments.
  • See Note 1 in the accompanying Notes to Consolidated Financial Statements for additional information regarding the adoption of ASC 326.
  • At December 31, 2024, the Company’s specific allocation of the ACL for loans totaled $1.3 million.
  • At December 31, 2024, the Company's ACL on loans totaled $9.3 million, of which $6.4 million related to qualitative factor adjustments.
  • At December 31, 2023, the Company's allowance for loan losses totaled $8.0 million, of which $6.1 million related to qualitative factor adjustments.
  • The following table sets forth an analysis of the Bank’s ACL on loans for the periods indicated.
  • As previously described, activity for the year ending December 31, 2022 has been reclassified to reflect the adoption of ASU 2016-13.
  • Allowance for Credit Losses Analysis The following table sets forth an analysis of the Bank's ACL on loans for the periods indicated.
  • Year Ended December 31, 2024 2023 2022 (In thousands) Beginning balance, prior to adoption of ASC 326 $ 8,005 $ 6,772 $ 6,083 Impact of adopting ASC 326 - - Provision for credit losses 1,449 1,141 9,454 8,474 7,033 Recoveries: 1-4 Family Residential Mortgage Multifamily Residential - - - Commercial Real Estate - - 1-4 Family Residential Construction - - - Other Construction, Development and Land - - Home Equity and Second Mortgage Commercial Business - Consumer and Other Total recoveries Charge-offs: 1-4 Family Residential Mortgage Multifamily Residential - - - Commercial Real Estate - - - 1-4 Family Residential Construction - - - Other Construction, Development and Land - - - Home Equity and Second Mortgage - - Commercial Business - - Consumer and Other Total charge-offs Net charge-offs (173 ) (469 ) (261 ) Balance at end of period $ 9,281 $ 8,005 $ 6,772 Ratio of allowance to total loans outstanding at the end of the period 1.45 % 1.29 % 1.25 % Ratio of nonaccrual loans to total loans 0.69 % 0.28 % 0.25 % Allowance as a % of nonperforming loans 211.80 % 457.17 % 454.50 % Ratio of net charge-offs to average loans outstanding during the period: 1-4 Family Residential Mortgage -0.02 % 0.01 % 0.04 % Multifamily Residential 0.00 % 0.00 % 0.00 % Commercial Real Estate 0.00 % 0.00 % 0.00 % 1-4 Family Residential Construction 0.00 % 0.00 % 0.00 % Other Construction, Development and Land 0.00 % 0.00 % -0.01 % Home Equity and Second Mortgage -0.01 % 0.02 % 0.00 % Commercial Business 0.00 % 0.29 % 0.00 % Consumer and Other 0.35 % 0.45 % 0.40 % Total net charge-offs to average loans outstanding during the period 0.03 % 0.08 % 0.05 % ACL on Loans Analysis.
  • The following table sets forth the breakdown of the ACL on loans by loan category at the dates indicated.
  • At December 31, 2024 2023 Amount Percent of Outstanding Loans in Category Amount Percent of Outstanding Loans in Category (Dollars in thousands) 1-4 Family Residential Mortgage $ 1,592 21.73 % $ 1,490 21.49 % Multifamily Residential 5.77 % 6.44 % Commercial Real Estate 2,459 28.91 % 2,119 27.16 % 1-4 Family Residential Construction 2.38 % 2.52 % Other Construction, Development and Land 11.86 % 12.35 % Home Equity and Second Mortgage 10.41 % 9.99 % Commercial Business 2,424 9.81 % 1,431 10.98 % Consumer and Other 1,011 9.13 % 1,215 9.07 % Total allowance for credit losses $ 9,281 100.00 % $ 8,005 100.00 % Investment Activities As an Indiana chartered commercial bank, the Bank has the authority to invest in various types of liquid assets, including United States Treasury obligations, securities of various federal agencies and of state and municipal governments, deposits at the applicable FHLB, certificates of deposit of federally insured institutions, certain bankers’ acceptances and federal funds.

and 42 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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