First Capital, Inc. Reports Quarterly Earnings
Rhea-AI Summary
First Capital (NASDAQ: FCAP) reported net income of $4.8 million, or $1.43 per diluted share, for Q2 2026, up from $3.8 million, or $1.13, in Q2 2025. For the first six months of 2026, net income rose to $9.1 million, or $2.72 per diluted share, from $7.0 million, or $2.09, a year earlier.
Net interest income after provision for credit losses increased $1.6 million in Q2 and $3.4 million year-to-date, helped by higher yields on interest-earning assets and lower average funding costs, expanding tax-equivalent net interest margin from 3.59% to 3.98% in Q2. Noninterest income grew on higher gains on equity securities and fee income, while noninterest expenses and provisions for credit losses also increased. Total assets reached $1.29 billion and deposits $1.14 billion at June 30, 2026, with nonperforming assets rising to $4.9 million. The bank reported a Community Bank Leverage Ratio of 11.34% and raised the quarterly dividend to $0.31 per share.
Positive
- Q2 2026 net income $4.8 million vs. $3.8 million in 2025
- Six-month 2026 net income $9.1 million vs. $7.0 million in 2025
- Tax-equivalent net interest margin Q2 2026 3.98% vs. 3.59% in 2025
- Total assets grew to $1.29 billion from $1.27 billion
- Deposits increased to $1.14 billion from $1.12 billion
- Quarterly dividend per share $0.31 vs. $0.29 in prior year quarter
- Community Bank Leverage Ratio 11.34% vs. 11.01% at year-end 2025
Negative
- Provision for credit losses Q2 2026 $425,000 vs. $306,000 in 2025
- Noninterest expenses Q2 2026 $7.85 million vs. $7.49 million in 2025
- Six-month noninterest expenses $15.61 million vs. $14.68 million
- Nonperforming assets $4.9 million vs. $4.4 million at December 31, 2025
- Loss on sale of securities $92,000 for six months 2026 vs. $55,000 in 2025
- Effective tax rate Q2 2026 20.8% vs. 18.4% in 2025
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 19 | Quarterly dividend | Positive | +0.2% | Quarterly cash dividend declaration preceded a 0.20% 24-hour price reaction. |
| Apr 24 | Q1 earnings | Positive | -0.3% | Q1 earnings growth and margin expansion preceded a -0.35% 24-hour price reaction. |
| Feb 19 | Annual meeting | Neutral | +2.3% | Annual meeting scheduling announcement preceded a 2.25% 24-hour price reaction. |
| Feb 19 | Quarterly dividend | Positive | +2.3% | Quarterly dividend declaration preceded a 2.25% 24-hour price reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The prior quarterly earnings event diverged from the announcement's positive operating results, producing a negative 24-hour reaction.
Key Terms
tax-equivalent net interest margin financial
allowance for credit losses financial
nonperforming assets financial
community bank leverage ratio regulatory
available for sale securities financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
CORYDON, Ind., July 24, 2026 (GLOBE NEWSWIRE) -- First Capital, Inc. (the “Company”) (NASDAQ: FCAP), the holding company for First Harrison Bank (the “Bank”), today reported net income of
Results of Operations for the Three Months Ended June 30, 2026 and 2025
Net interest income after provision for credit losses increased
Based on management’s analysis of the Allowance for Credit Losses (“ACL”) on loans and unfunded loan commitments, the provision for credit losses increased from
Noninterest income increased
Noninterest expenses increased
Income tax expense increased
Results of Operations for the Six Months Ended June 30, 2026 and 2025
For the six months ended June 30, 2026, the Company reported net income of
Net interest income after provision for credit losses increased
Based on management’s analysis of the ACL on loans and unfunded loan commitments, the provision for credit losses increased from
Noninterest income increased
Noninterest expenses increased
Income tax expense increased
Comparison of Financial Condition at June 30, 2026 and December 31, 2025
Total assets were
The Bank currently has 17 offices in the Indiana communities of Corydon, Edwardsville, Greenville, Floyds Knobs, Palmyra, New Albany, New Salisbury, Jeffersonville, Salem, Lanesville and Charlestown and the Kentucky communities of Shepherdsville, Mt. Washington and Lebanon Junction.
Access to First Harrison Bank accounts, including online banking and electronic bill payments, is available through the Bank’s website at www.firstharrison.com. For more information and financial data about the Company, please visit Investor Relations at the Bank’s aforementioned website. The Bank can also be followed on Facebook.
(1) Reconciliations of the non–U.S. Generally Accepted Accounting Principles (“GAAP”) measures are set forth at the end of this press release.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,” “could” and “should,” and other words of similar meaning. Forward-looking statements are not historical facts nor guarantees of future performance; rather, they are statements based on the Company’s current beliefs, assumptions, and expectations regarding its business strategies and their intended results and its future performance.
Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by these forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; competition; the ability of the Company to execute its business plan; legislative and regulatory changes; the quality and composition of the loan and investment portfolios; loan demand; deposit flows; changes in accounting principles and guidelines; and other factors disclosed periodically in the Company’s filings with the Securities and Exchange Commission.
Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release, the Company’s reports, or made elsewhere from time to time by the Company or on its behalf. These forward-looking statements are made only as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements after the date of this press release.
Contact:
Joshua P. Stevens
Chief Financial Officer
812-738-1570
| FIRST CAPITAL, INC. AND SUBSIDIARIES Consolidated Financial Highlights (Unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| OPERATING DATA | 2026 | 2025 | 2026 | 2025 | |||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||
| Total interest income | $ | 15,622 | $ | 14,040 | $ | 30,546 | $ | 27,386 | |||||||
| Total interest expense | 3,535 | 3,628 | 7,041 | 7,393 | |||||||||||
| Net interest income | 12,087 | 10,412 | 23,505 | 19,993 | |||||||||||
| Provision for credit losses | 425 | 306 | 775 | 644 | |||||||||||
| Net interest income after provision for credit losses | 11,662 | 10,106 | 22,730 | 19,349 | |||||||||||
| Total non-interest income | 2,205 | 2,018 | 4,253 | 3,866 | |||||||||||
| Total non-interest expense | 7,853 | 7,494 | 15,606 | 14,675 | |||||||||||
| Income before income taxes | 6,014 | 4,630 | 11,377 | 8,540 | |||||||||||
| Income tax expense | 1,249 | 852 | 2,279 | 1,524 | |||||||||||
| Net income | 4,765 | 3,778 | 9,098 | 7,016 | |||||||||||
| Less net income attributable to the noncontrolling interest | 3 | 3 | 6 | 6 | |||||||||||
| Net income attributable to First Capital, Inc. | $ | 4,762 | $ | 3,775 | $ | 9,092 | $ | 7,010 | |||||||
| Net income per share attributable to | |||||||||||||||
| First Capital, Inc. common shareholders: | |||||||||||||||
| Basic | $ | 1.43 | $ | 1.13 | $ | 2.73 | $ | 2.09 | |||||||
| Diluted | $ | 1.43 | $ | 1.13 | $ | 2.72 | $ | 2.09 | |||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 3,336,190 | 3,346,653 | 3,336,134 | 3,346,751 | |||||||||||
| Diluted | 3,339,690 | 3,350,344 | 3,339,124 | 3,349,308 | |||||||||||
| OTHER FINANCIAL DATA | |||||||||||||||
| Cash dividends per share | $ | 0.31 | $ | 0.29 | $ | 0.62 | $ | 0.58 | |||||||
| Return on average assets (annualized) | 1.49 | % | 1.24 | % | 1.43 | % | 1.16 | % | |||||||
| Return on average equity (annualized) | 13.60 | % | 12.59 | % | 12.98 | % | 11.86 | % | |||||||
| Net interest margin | 3.91 | % | 3.52 | % | 3.82 | % | 3.40 | % | |||||||
| Net interest margin (tax-equivalent basis) (1) | 3.98 | % | 3.59 | % | 3.90 | % | 3.47 | % | |||||||
| Interest rate spread | 3.49 | % | 3.11 | % | 3.41 | % | 2.99 | % | |||||||
| Interest rate spread (tax-equivalent basis) (1) | 3.56 | % | 3.18 | % | 3.48 | % | 3.06 | % | |||||||
| Net overhead expense as a percentage of average assets (annualized) | 2.46 | % | 2.47 | % | 2.45 | % | 2.43 | % | |||||||
| June 30, | December 31, | ||||||
| BALANCE SHEET INFORMATION | 2026 | 2025 | |||||
| Cash and cash equivalents | $ | 149,812 | $ | 137,288 | |||
| Interest-bearing time deposits | 1,225 | 1,470 | |||||
| Investment securities | 413,917 | 424,190 | |||||
| Gross loans | 678,838 | 664,208 | |||||
| Allowance for credit losses | 10,714 | 10,108 | |||||
| Earning assets | 1,215,369 | 1,193,475 | |||||
| Total assets | 1,290,041 | 1,271,995 | |||||
| Deposits | 1,136,731 | 1,122,990 | |||||
| Stockholders' equity, net of noncontrolling interest | 142,510 | 137,797 | |||||
| Allowance for credit losses as a percentage of gross loans | 1.58 | % | 1.52 | % | |||
| Non-performing assets: | |||||||
| Nonaccrual loans | 4,920 | 4,268 | |||||
| Accruing loans past due 90 days | — | 83 | |||||
| Foreclosed real estate | — | — | |||||
| Regulatory capital ratios (Bank only): | |||||||
| Community Bank Leverage Ratio (2) | 11.34 | % | 11.01 | % | |||
______________________________
(1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to the calculation of this item.
(2) Effective March 31, 2020, the Bank opted in to the Community Bank Leverage Ratio (CBLR) framework. As such, the other regulatory ratios are no longer provided.
| FIRST CAPITAL, INC. AND SUBSIDIARIES Consolidated Average Balance Sheets (Unaudited) | |||||||||||||||||||
| For the Three Months ended June 30, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| Average | Average | ||||||||||||||||||
| Average | Yield/ | Average | Yield/ | ||||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Interest earning assets: | |||||||||||||||||||
| Loans (1) (2): | |||||||||||||||||||
| Taxable | $ | 661,948 | $ | 10,675 | 6.45 | % | $ | 643,824 | $ | 10,165 | 6.32 | % | |||||||
| Tax-exempt (3) | 12,774 | 176 | 5.51 | % | 10,686 | 114 | 4.27 | % | |||||||||||
| Total loans | 674,722 | 10,851 | 6.43 | % | 654,510 | 10,279 | 6.28 | % | |||||||||||
| Investment securities: | |||||||||||||||||||
| Taxable (4) | 312,690 | 2,889 | 3.70 | % | 308,527 | 2,004 | 2.60 | % | |||||||||||
| Tax-exempt (3) | 119,056 | 902 | 3.03 | % | 118,418 | 842 | 2.84 | % | |||||||||||
| Total investment securities | 431,746 | 3,791 | 3.51 | % | 426,945 | 2,846 | 2.67 | % | |||||||||||
| Interest bearing deposits with banks (5) | 130,539 | 1,207 | 3.70 | % | 100,563 | 1,116 | 4.44 | % | |||||||||||
| Total interest earning assets | 1,237,007 | 15,849 | 5.12 | % | 1,182,018 | 14,241 | 4.82 | % | |||||||||||
| Non-interest earning assets | 42,055 | 34,037 | |||||||||||||||||
| Total assets | $ | 1,279,062 | $ | 1,216,055 | |||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||
| Interest-bearing demand deposits | $ | 442,178 | $ | 1,203 | 1.09 | % | $ | 440,186 | $ | 1,334 | 1.21 | % | |||||||
| Savings accounts | 223,630 | 100 | 0.18 | % | 228,261 | 165 | 0.29 | % | |||||||||||
| Time deposits | 241,466 | 2,232 | 3.70 | % | 215,314 | 2,129 | 3.96 | % | |||||||||||
| Total deposits | 907,274 | 3,535 | 1.56 | % | 883,761 | 3,628 | 1.64 | % | |||||||||||
| Total interest bearing liabilities | 907,274 | 3,535 | 1.56 | % | 883,761 | 3,628 | 1.64 | % | |||||||||||
| Non-interest bearing liabilities | |||||||||||||||||||
| Non-interest bearing deposits | 219,031 | 202,365 | |||||||||||||||||
| Other liabilities | 12,664 | 9,965 | |||||||||||||||||
| Total liabilities | 1,138,969 | 1,096,091 | |||||||||||||||||
| Stockholders' equity (6) | 140,093 | 119,964 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,279,062 | $ | 1,216,055 | |||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 12,314 | $ | 10,613 | |||||||||||||||
| Less: tax equivalent adjustment | (227 | ) | (201 | ) | |||||||||||||||
| Net interest income | $ | 12,087 | $ | 10,412 | |||||||||||||||
| Interest rate spread | 3.49 | % | 3.11 | % | |||||||||||||||
| Interest rate spread (tax-equivalent basis) (7) | 3.56 | % | 3.18 | % | |||||||||||||||
| Net interest margin | 3.91 | % | 3.52 | % | |||||||||||||||
| Net interest margin (tax-equivalent basis) (7) | 3.98 | % | 3.59 | % | |||||||||||||||
| Ratio of average interest earning assets to average interest bearing liabilities | 136.34 | % | 133.75 | % | |||||||||||||||
______________________________
(1) Interest income on loans includes fee income of
(2) Average loan balances include loans held for sale and nonperforming loans.
(3) Tax-exempt income has been adjusted to a tax-equivalent basis using the federal marginal tax rate of
(4) Includes taxable debt and equity securities and FHLB Stock.
(5) Includes interest-bearing deposits with banks and interest-bearing time deposits.
(6) Stockholders' equity attributable to First Capital, Inc.
(7) Reconciliations of the non–U.S. GAAP measures are set forth at the end of this press release.
| FIRST CAPITAL, INC. AND SUBSIDIARIES Consolidated Average Balance Sheets (Unaudited) | |||||||||||||||||||
| For the Six Months ended June 30, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| Average | Average | ||||||||||||||||||
| Average | Yield/ | Average | Yield/ | ||||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Interest earning assets: | |||||||||||||||||||
| Loans (1) (2): | |||||||||||||||||||
| Taxable | $ | 660,861 | $ | 21,030 | 6.36 | % | $ | 638,326 | $ | 19,849 | 6.22 | % | |||||||
| Tax-exempt (3) | 11,517 | 285 | 4.95 | % | 10,786 | 228 | 4.23 | % | |||||||||||
| Total loans | 672,378 | 21,315 | 6.34 | % | 649,112 | 20,077 | 6.19 | % | |||||||||||
| Investment securities: | |||||||||||||||||||
| Taxable (4) | 315,200 | 5,626 | 3.57 | % | 309,248 | 3,864 | 2.50 | % | |||||||||||
| Tax-exempt (3) | 119,093 | 1,792 | 3.01 | % | 118,650 | 1,663 | 2.80 | % | |||||||||||
| Total investment securities | 434,293 | 7,418 | 3.42 | % | 427,898 | 5,527 | 2.58 | % | |||||||||||
| Interest bearing deposits with banks (5) | 122,624 | 2,249 | 3.67 | % | 98,723 | 2,179 | 4.41 | % | |||||||||||
| Total interest earning assets | 1,229,295 | 30,982 | 5.04 | % | 1,175,733 | 27,783 | 4.73 | % | |||||||||||
| Non-interest earning assets | 43,940 | 31,697 | |||||||||||||||||
| Total assets | $ | 1,273,235 | $ | 1,207,430 | |||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||
| Interest-bearing demand deposits | $ | 439,812 | $ | 2,367 | 1.08 | % | $ | 439,952 | $ | 2,743 | 1.25 | % | |||||||
| Savings accounts | 223,502 | 199 | 0.18 | % | 226,842 | 328 | 0.29 | % | |||||||||||
| Time deposits | 241,060 | 4,475 | 3.71 | % | 216,418 | 4,322 | 3.99 | % | |||||||||||
| Total deposits | 904,374 | 7,041 | 1.56 | % | 883,212 | 7,393 | 1.67 | % | |||||||||||
| Total interest bearing liabilities | 904,374 | 7,041 | 1.56 | % | 883,212 | 7,393 | 1.67 | % | |||||||||||
| Non-interest bearing liabilities | |||||||||||||||||||
| Non-interest bearing deposits | 216,123 | 198,218 | |||||||||||||||||
| Other liabilities | 12,603 | 7,804 | |||||||||||||||||
| Total liabilities | 1,133,100 | 1,089,234 | |||||||||||||||||
| Stockholders' equity (6) | 140,135 | 118,196 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,273,235 | $ | 1,207,430 | |||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 23,941 | $ | 20,390 | |||||||||||||||
| Less: tax equivalent adjustment | (436 | ) | (397 | ) | |||||||||||||||
| Net interest income | $ | 23,505 | $ | 19,993 | |||||||||||||||
| Interest rate spread | 3.41 | % | 2.99 | % | |||||||||||||||
| Interest rate spread (tax-equivalent basis) (7) | 3.48 | % | 3.06 | % | |||||||||||||||
| Net interest margin | 3.82 | % | 3.40 | % | |||||||||||||||
| Net interest margin (tax-equivalent basis) (7) | 3.90 | % | 3.47 | % | |||||||||||||||
| Ratio of average interest earning assets to average interest bearing liabilities | 135.93 | % | 133.12 | % | |||||||||||||||
______________________________
(1) Interest income on loans includes fee income of
(2) Average loan balances include loans held for sale and nonperforming loans.
(3) Tax-exempt income has been adjusted to a tax-equivalent basis using the federal marginal tax rate of
(4) Includes taxable debt and equity securities and FHLB Stock.
(5) Includes interest-bearing deposits with banks and interest-bearing time deposits.
(6) Stockholders' equity attributable to First Capital, Inc.
(7) Reconciliations of the non–U.S. GAAP measures are set forth at the end of this press release.
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company's performance. Management believes that these non-GAAP financial measures allow for better comparability with prior periods, as well as with peers in the industry who provide a similar presentation, and provide a further understanding of the Company's ongoing operations. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Net interest income (A) | $ | 12,087 | $ | 10,412 | $ | 23,505 | $ | 19,993 | |||||||
| Add: Tax-equivalent adjustment | 227 | 201 | 436 | 397 | |||||||||||
| Tax-equivalent net interest income (B) | 12,314 | 10,613 | 23,941 | 20,390 | |||||||||||
| Average interest earning assets (C) | 1,237,007 | 1,182,018 | 1,229,295 | 1,175,733 | |||||||||||
| Net interest margin (A)/(C) | 3.91 | % | 3.52 | % | 3.82 | % | 3.40 | % | |||||||
| Net interest margin (tax-equivalent basis) (B)/(C) | 3.98 | % | 3.59 | % | 3.90 | % | 3.47 | % | |||||||
| Total interest income (D) | $ | 15,622 | $ | 14,040 | $ | 30,546 | $ | 27,386 | |||||||
| Add: Tax-equivalent adjustment | 227 | 201 | 436 | 397 | |||||||||||
| Total interest income tax-equivalent basis (E) | 15,849 | 14,241 | 30,982 | 27,783 | |||||||||||
| Average interest earning assets (F) | 1,237,007 | 1,182,018 | 1,229,295 | 1,175,733 | |||||||||||
| Average yield on interest earning assets (D)/(F); (G) | 5.05 | % | 4.75 | % | 4.97 | % | 4.66 | % | |||||||
| Average yield on interest earning assets tax-equivalent (E)/(F); (H) | 5.12 | % | 4.82 | % | 5.04 | % | 4.73 | % | |||||||
| Average cost of interest bearing liabilities (I) | 1.56 | % | 1.64 | % | 1.56 | % | 1.67 | % | |||||||
| Interest rate spread (G)-(I) | 3.49 | % | 3.11 | % | 3.41 | % | 2.99 | % | |||||||
| Interest rate spread tax-equivalent (H)-(I) | 3.56 | % | 3.18 | % | 3.48 | % | 3.06 | % | |||||||
