CORYDON, Ind. - First Capital, Inc. (NASDAQ: FCAP), the parent company of First Harrison Bank, has announced an increase in its quarterly cash dividend to $0.29 per share, marking a 7.4% rise from the previous dividend of $0.27. Michael C. Frederick, President and CEO, confirmed that the new dividend will be payable on September 27, 2024, to shareholders on record as of September 13, 2024.
The decision to boost the dividend reflects First Capital's sustained profitability and its strategy of delivering shareholder value. “We are very pleased to provide a 7.4% increase to the quarterly cash dividend payment on the Company’s common stock," Frederick stated.
First Capital, Inc. operates as the holding company for First Harrison Bank, which serves customers through eighteen branches across various communities in Indiana and Kentucky. The bank offers a range of financial services and ensures customers can access their accounts and banking services online.
The announcement is based on a press release statement from First Capital, Inc. and does not constitute an endorsement of the company's performance or future outlook. It is a factual report on the company's declared dividend increase.
InvestingPro Insights
First Capital, Inc. (NASDAQ: FCAP) has demonstrated its commitment to shareholders with the recent increase in its quarterly cash dividend. This decision aligns with the company's historical performance, as highlighted by a couple of notable InvestingPro Tips. For instance, First Capital has maintained an impressive track record of dividend payments, having consistently paid dividends for 26 consecutive years. This consistency signals a stable financial position and a reliable income stream for dividend investors. Additionally, First Capital has been profitable over the last twelve months, reinforcing the sustainability of its dividend payments.
However, potential investors should also consider areas where the company may be seeking improvement. One such area is First Capital's gross profit margins, which have been identified as weak. This could suggest that the company faces challenges in controlling costs or increasing sales margins, which are critical factors for long-term profitability and financial health.
InvestingPro Data metrics for First Capital provide further context to the company's financial status. As of the last twelve months as of Q1 2023, First Capital's Return on Equity (ROE) stands at a robust 10.8%, showcasing the company's efficiency in generating profits from its shareholders' equity. The bank's Net Interest Margin, a key indicator of lending profitability, is reported at a healthy 3.5%. Lastly, the company's Non-Performing Loans (NPLs) ratio is at a low 0.5%, indicating a strong credit portfolio with minimal default risks.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/FCAP, which can offer more comprehensive insights into First Capital's financial health and investment potential.
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