FCAPHIGH SIGNALFINANCIAL10-K

FCAP shows explosive growth with net interest income surging 287.8% to $56.8M and net income jumping 265.5% to $16.4M, accompanied by a dramatic 442.9% spike in credit loss provisions.

The massive increase in credit loss provisions from $175K to $950K signals potential asset quality deterioration despite strong earnings growth. While the company is generating substantial profits, management is clearly anticipating higher loan losses ahead, which could indicate either aggressive lending expansion or emerging credit concerns in their portfolio.

Comparing 2026-03-31 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

FCAP experienced remarkable financial expansion with net interest income nearly tripling to $56.8M and net income surging to $16.4M, though interest expenses also increased significantly to $9.0M. The company substantially increased capital expenditures to $1.4M and ramped up share buybacks to $578K, while stockholders' equity grew a solid 20.2% to $137.8M. However, the most concerning development is the 443% spike in credit loss provisions to $950K, suggesting management expects deteriorating loan quality despite the strong growth trajectory.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
+1309.8%
$41K$578K

Share repurchases increased 1309.8% — management returning capital, signals confidence in intrinsic value.

Provision for Credit Losses
P&L
+442.9%
$175K$950K

Credit loss provisions surged 442.9% — management flagging significant deterioration in loan quality ahead.

Net Interest Income
P&L
+287.8%
$14.7M$56.8M

Net interest income grew 287.8% — benefiting from rate environment or loan book expansion.

Net Income
P&L
+265.5%
$4.5M$16.4M

Net income grew 265.5% — bottom-line growth signals improving overall business health.

Interest Expense
P&L
+241.3%
$2.6M$9.0M

Interest expense surged 241.3% — significant debt increase or rising rates materially impacting earnings.

Capital Expenditure
Cash Flow
+88.6%
$717K$1.4M

Capital expenditure jumped 88.6% — major investment cycle underway; assess returns on deployment.

Stockholders Equity
Balance Sheet
+20.2%
$114.6M$137.8M

Equity base grew 20.2% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-03-31
ADDED
(the Company, First Capital, us, or we ) was incorporated under Indiana law on September 11, 1998.
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.
Approved credit lines totaled $39.3 million at December 31, 2025, of which $11.9 million was outstanding.
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 88 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.
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REMOVED
Form 10-K Summary 61 SIGNATURES i This Annual Report on Form 10-K contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
(the Company or First Capital ) was incorporated under Indiana law on September 11, 1998.
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.
The Bank s lending policies generally limit the maximum loan-to-value ( LTV ) ratio on fixed-rate and ARM loans to 80% of the lesser of the appraised value or purchase price of the underlying residential property unless private mortgage insurance to cover the excess over 80% is obtained, in which case the mortgage is limited to 95% (or 97% under a Freddie Mac program) of the lesser of appraised value or purchase price.
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.
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