First Capital, Inc. reported net income of $2.9 million, or $0.87 per diluted share, for the quarter ended September 30, 2024. This compares to net income of $3.1 million, or $0.94 per diluted share, for the same period in 2023, indicating a year-over-year decrease in profitability.
Net interest income after the provision for credit losses increased by $415,000, driven by a $2.0 million increase in interest income. The average yield on interest-earning assets rose from 3.96% in Q3 2023 to 4.53% in Q3 2024, and the net interest margin expanded from 3.02% to 3.12%. However, interest expense also increased by $1.5 million due to a rise in the average cost of interest-bearing liabilities from 1.30% to 1.87%.
The provision for credit losses increased from $290,000 to $463,000, attributed to loan growth and macroeconomic uncertainty. Nonperforming assets increased from $1.8 million at December 31, 2023, to $4.5 million at September 30, 2024, primarily due to the nonaccrual classification of two commercial loan relationships totaling $2.6 million.
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