First Capital, Inc. Reports Strong Revenue Growth in Latest Quarter
Segments of revenue
First Capital, Inc. reported total interest income of $11.18 million for the three months ended September 30, 2023, compared to $9.05 million for the same period in 2022. This represents a significant increase of 23.5% year-over-year. The company's interest income was primarily driven by interest earned on loans, including fees, which amounted to $8.57 million, up from $6.53 million in the previous year. Additionally, interest income from securities increased to $2.27 million, compared to $2.08 million in the same period last year.
First Capital, Inc. demonstrated strong revenue growth in the latest quarter, with total interest income increasing by 23.5% compared to the previous year. This growth was primarily driven by higher interest earned on loans, including fees. The company's management attributed the increase in interest income to the continued expansion of the loan portfolio and favorable market conditions. The company's strategy of enhancing long-term earnings through the sale of securities and VISA Class B stock also contributed to the positive financial performance.
While First Capital, Inc. experienced strong revenue growth in the latest quarter, it also incurred a net unrealized loss of $2.1 million on available for sale securities. This loss was primarily due to increases in market interest rates. The company's management should closely monitor market conditions and adjust its investment strategies to mitigate potential losses in the future.
First Capital, Inc. reported a net gain of $63,000 on the sale of securities during the latest quarter. The company sold securities available for sale with a market value of $9.4 million, resulting in a net loss of $94,000. However, this loss was more than offset by a $157,000 gain on the sale of the company's VISA Class B stock. These strategic sales were aimed at enhancing long-term earnings.
First Capital, Inc. delivered a strong financial performance in the latest quarter, with significant revenue growth driven by higher interest earned on loans, including fees. The company's management attributed this growth to the expansion of the loan portfolio and favorable market conditions. However, the company also incurred a net unrealized loss on available for sale securities due to increases in market interest rates. Overall, First Capital, Inc. demonstrated its ability to generate strong revenue and effectively manage its investment portfolio.