It's more likely that they coerce to lowercase the the first letter of the password you put in and then store/compare the hash of that resulting plaintext. They could even transparently upgrade passwords created before they started doing this by using the plaintext from the next time you login successfully to regenerate the hash.
Lowercasing the first character--by itself alone--does not address inverted case scenario (e.g. "PaSsWoRd" and "pAsSwOrD" evaluate to "paSsWoRd" and "pAsSwOrD" respectively).
One way to resolve that issue is to create two versions of the password (one with normal casing and one with inverted casing, but both with the first character lowercased), sort them, and pick the first result.
["pAsSwOrD", "PaSsWoRd", "PAsSwOrD"].map(function canonicalize(pwd) {
function invert(str) {
return (str == str.toUpperCase()
? str.toLowerCase()
: str.toUpperCase());
}
var head = pwd.substring(0, 1).toLowerCase();
var tail = pwd.substring(1);
var vers = [head + tail,
head + tail.split("").map(invert).join("")];
return vers.sort()[0];
});
Which gives the following result:
["pAsSwOrD", "pAsSwOrD", "pAsSwOrD"]
The three different variations get canonicalized into one version. With it, you can just store one hash instead of three.