First Capital, Inc. Reports Record Annual and Quarterly Earnings
Rhea-AI Summary
First Capital (NASDAQ: FCAP) reported record results for year ended December 31, 2025, with net income $16.4M ($4.89 diluted EPS) vs $11.9M ($3.57) in 2024 and Q4 net income $4.9M ($1.46) vs $3.3M ($0.97) a year earlier. Tax-equivalent net interest margin rose to 3.61% for 2025 from 3.20% in 2024, driven by higher yields and larger average interest-earning assets. Total assets grew to $1.272B and deposits to $1.123B at Dec 31, 2025. Provision for credit losses fell to $1.144M for 2025; allowance for credit losses was $10.108M. Noninterest expense increased due mainly to higher compensation and occupancy costs. Effective tax rate was 17.7% for 2025.
Positive
- Net income +37% year-over-year to $16.4M (2025)
- Net interest income +17.8% year-over-year to $42.15M (2025)
- Return on average equity improved by 221 bps to 13.18% (2025)
- Stockholders' equity increased ~20.3% to $137.8M at Dec 31, 2025
- Provision for credit losses decreased ~21% to $1.144M (2025)
Negative
- Effective tax rate rose by 210 bps to 17.7% for 2025
- Net charge-offs increased ~83% to $317,000 in 2025
Key Figures
Market Reality Check
Peers on Argus
FCAP is up 3.82% while key regional peers BCBP (-1.5%), RMBI (-0.93%), RBKB (-1.29%), BVFL (-0.58%), and HNVR (-1.65%) are all down, indicating a stock-specific reaction to its record earnings.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 19 | Dividend declaration | Positive | +2.4% | Quarterly cash dividend of $0.31 per share with set record and pay dates. |
| Oct 24 | Record earnings | Positive | -2.0% | Record quarterly earnings with higher NIM and deposit growth reported. |
| Aug 29 | Buyback update | Positive | +1.1% | New 10b5-1/10b-18 repurchase plan for up to 113,236 additional shares. |
| Aug 20 | Dividend increase | Positive | -0.0% | Quarterly dividend raised by $0.02 to $0.31 per share, a 6.9% increase. |
| Jul 25 | Quarterly earnings | Positive | -0.7% | Stronger Q2 earnings with higher NIM, asset growth, and stable credit quality. |
Positive catalysts (earnings, dividends, buybacks) often see mixed short-term reactions, with more divergences than alignments between news tone and next-day price.
Over the past six months, FCAP has delivered a series of shareholder-friendly updates: recurring dividend announcements, a dividend increase to $0.31 per share, an expanded repurchase plan for up to 113,236 shares, and multiple strong earnings reports with improving net interest margin and capital ratios. Price reactions have been inconsistent, with several instances where positive earnings or dividend news saw flat-to-negative next-day moves. Today’s record annual and quarterly earnings follow that trajectory of fundamental improvement and capital returns, but with a more clearly positive pre-news price setup.
Market Pulse Summary
This announcement highlights record annual and quarterly earnings, with 2025 net income of $16.4 million and diluted EPS of $4.89. Profitability improved as the tax-equivalent net interest margin rose to 3.61%, while total assets reached $1.27 billion and deposits $1.12 billion. Credit quality metrics, including nonperforming assets around $4.3 million, remained stable. Historically, FCAP has paired solid earnings with dividend growth and buybacks, so investors may watch future margins, credit costs, and capital returns to assess whether this performance level is sustained.
Key Terms
allowance for credit losses financial
net interest margin financial
nonperforming assets financial
nonaccrual loans financial
tax-equivalent yield financial
AI-generated analysis. Not financial advice.
CORYDON, Ind., Jan. 23, 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 Years Ended December 31, 2025 and 2024
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 decreased from
Noninterest income increased
Noninterest expenses increased
Income tax expense increased
Results of Operations for the Three Months Ended December 31, 2025 and 2024
For the quarter ended December 31, 2025, 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 December 31, 2025 and 2024
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 | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| OPERATING DATA | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||
| Total interest income | $ | 14,803 | $ | 13,192 | $ | 56,847 | $ | 50,471 | ||||||||
| Total interest expense | 3,602 | 3,784 | 14,697 | 14,681 | ||||||||||||
| Net interest income | 11,201 | 9,408 | 42,150 | 35,790 | ||||||||||||
| Provision for credit losses | 350 | 346 | 1,144 | 1,449 | ||||||||||||
| Net interest income after provision for credit losses | 10,851 | 9,062 | 41,006 | 34,341 | ||||||||||||
| Total non-interest income | 2,293 | 1,934 | 8,465 | 7,656 | ||||||||||||
| Total non-interest expense | 7,323 | 7,047 | 29,562 | 27,828 | ||||||||||||
| Income before income taxes | 5,821 | 3,949 | 19,909 | 14,169 | ||||||||||||
| Income tax expense | 938 | 684 | 3,529 | 2,216 | ||||||||||||
| Net income | 4,883 | 3,265 | 16,380 | 11,953 | ||||||||||||
| Less net income attributable to the noncontrolling interest | 4 | 3 | 13 | 13 | ||||||||||||
| Net income attributable to First Capital, Inc. | $ | 4,879 | $ | 3,262 | $ | 16,367 | $ | 11,940 | ||||||||
| Net income per share attributable to | ||||||||||||||||
| First Capital, Inc. common shareholders: | ||||||||||||||||
| Basic | $ | 1.46 | $ | 0.97 | $ | 4.89 | $ | 3.57 | ||||||||
| Diluted | $ | 1.46 | $ | 0.97 | $ | 4.89 | $ | 3.57 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 3,340,500 | 3,347,043 | 3,345,645 | 3,346,161 | ||||||||||||
| Diluted | 3,342,911 | 3,347,321 | 3,347,989 | 3,346,161 | ||||||||||||
| OTHER FINANCIAL DATA | ||||||||||||||||
| Cash dividends per share | $ | 0.31 | $ | 0.29 | $ | 1.20 | $ | 1.12 | ||||||||
| Return on average assets (annualized) | 1.57 | % | 1.10 | % | 1.34 | % | 1.02 | % | ||||||||
| Return on average equity (annualized) | 14.46 | % | 11.33 | % | 13.18 | % | 10.97 | % | ||||||||
| Net interest margin | 3.72 | % | 3.26 | % | 3.54 | % | 3.14 | % | ||||||||
| Net interest margin (tax-equivalent basis) (1) | 3.79 | % | 3.33 | % | 3.61 | % | 3.20 | % | ||||||||
| Interest rate spread | 3.29 | % | 2.81 | % | 3.12 | % | 2.69 | % | ||||||||
| Interest rate spread (tax-equivalent basis) (1) | 3.36 | % | 2.88 | % | 3.19 | % | 2.76 | % | ||||||||
| Net overhead expense as a percentage of average assets (annualized) | 2.35 | % | 2.38 | % | 2.41 | % | 2.38 | % | ||||||||
| December 31, | December 31, | |||||||
| BALANCE SHEET INFORMATION | 2025 | 2024 | ||||||
| Cash and cash equivalents | $ | 137,288 | $ | 105,917 | ||||
| Interest-bearing time deposits | 1,470 | 2,695 | ||||||
| Investment securities | 424,190 | 396,243 | ||||||
| Gross loans | 664,208 | 640,480 | ||||||
| Allowance for credit losses | 10,108 | 9,281 | ||||||
| Earning assets | 1,193,475 | 1,119,944 | ||||||
| Total assets | 1,271,995 | 1,187,523 | ||||||
| Deposits | 1,122,990 | 1,066,439 | ||||||
| Stockholders' equity, net of noncontrolling interest | 137,797 | 114,599 | ||||||
| Allowance for credit losses as a percentage of gross loans | 1.52 | % | 1.45 | % | ||||
| Non-performing assets: | ||||||||
| Nonaccrual loans | 4,268 | 4,382 | ||||||
| Accruing loans past due 90 days | 83 | — | ||||||
| Foreclosed real estate | — | — | ||||||
| Regulatory capital ratios (Bank only): | ||||||||
| Community Bank Leverage Ratio (2) | 11.02 | % | 10.57 | % | ||||
__________________________________
(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 Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||
| Average | Average | |||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||||
| Loans (1) (2): | ||||||||||||||||||||||
| Taxable | $ | 641,291 | $ | 40,566 | 6.33 | % | $ | 624,193 | $ | 37,974 | 6.08 | % | ||||||||||
| Tax-exempt (3) | 10,522 | 446 | 4.24 | % | 9,805 | 377 | 3.84 | % | ||||||||||||||
| Total loans | 651,813 | 41,012 | 6.29 | % | 633,998 | 38,351 | 6.05 | % | ||||||||||||||
| Investment securities: | ||||||||||||||||||||||
| Taxable (4) | 314,384 | 8,711 | 2.77 | % | 333,195 | 6,918 | 2.08 | % | ||||||||||||||
| Tax-exempt (3) | 119,379 | 3,438 | 2.88 | % | 121,947 | 3,329 | 2.73 | % | ||||||||||||||
| Total investment securities | 433,763 | 12,149 | 2.80 | % | 455,142 | 10,247 | 2.25 | % | ||||||||||||||
| Interest bearing deposits with banks (5) | 104,385 | 4,502 | 4.31 | % | 52,036 | 2,651 | 5.09 | % | ||||||||||||||
| Total interest earning assets | 1,189,961 | 57,663 | 4.85 | % | 1,141,176 | 51,249 | 4.49 | % | ||||||||||||||
| Non-interest earning assets | 34,977 | 28,479 | ||||||||||||||||||||
| Total assets | $ | 1,224,938 | $ | 1,169,655 | ||||||||||||||||||
| Interest bearing liabilities: | ||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 436,909 | $ | 5,280 | 1.21 | % | $ | 433,495 | $ | 6,086 | 1.40 | % | ||||||||||
| Savings accounts | 225,817 | 598 | 0.26 | % | 230,353 | 810 | 0.35 | % | ||||||||||||||
| Time deposits | 223,315 | 8,819 | 3.95 | % | 156,534 | 6,331 | 4.04 | % | ||||||||||||||
| Total deposits | 886,041 | 14,697 | 1.66 | % | 820,382 | 13,227 | 1.61 | % | ||||||||||||||
| FHLB Advances | — | — | — | 1,736 | 99 | 5.70 | % | |||||||||||||||
| Bank Term Funding Program Borrowings | — | — | — | 27,918 | 1,355 | 4.85 | % | |||||||||||||||
| Total interest bearing liabilities | 886,041 | 14,697 | 1.66 | % | 850,036 | 14,681 | 1.73 | % | ||||||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||||||
| Non-interest bearing deposits | 205,822 | 203,699 | ||||||||||||||||||||
| Other liabilities | 8,852 | 7,046 | ||||||||||||||||||||
| Total liabilities | 1,100,715 | 1,060,781 | ||||||||||||||||||||
| Stockholders' equity (6) | 124,223 | 108,874 | ||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,224,938 | $ | 1,169,655 | ||||||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 42,966 | $ | 36,568 | ||||||||||||||||||
| Less: tax equivalent adjustment | (816 | ) | (778 | ) | ||||||||||||||||||
| Net interest income | $ | 42,150 | $ | 35,790 | ||||||||||||||||||
| Interest rate spread | 3.12 | % | 2.69 | % | ||||||||||||||||||
| Interest rate spread (tax-equivalent basis) (7) | 3.19 | % | 2.76 | % | ||||||||||||||||||
| Net interest margin | 3.54 | % | 3.14 | % | ||||||||||||||||||
| Net interest margin (tax-equivalent basis) (7) | 3.61 | % | 3.20 | % | ||||||||||||||||||
| Ratio of average interest earning assets to average interest bearing liabilities | 134.30 | % | 134.25 | % | ||||||||||||||||||
_________________________________
(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 Three Months ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||
| Average | Average | |||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||||
| Loans (1) (2): | ||||||||||||||||||||||
| Taxable | $ | 648,238 | $ | 10,394 | 6.41 | % | $ | 627,125 | $ | 9,748 | 6.22 | % | ||||||||||
| Tax-exempt (3) | 10,194 | 109 | 4.28 | % | 11,339 | 123 | 4.34 | % | ||||||||||||||
| Total loans | 658,432 | 10,503 | 6.38 | % | 638,464 | 9,871 | 6.18 | % | ||||||||||||||
| Investment securities: | ||||||||||||||||||||||
| Taxable (4) | 320,243 | 2,565 | 3.20 | % | 314,345 | 1,739 | 2.21 | % | ||||||||||||||
| Tax-exempt (3) | 121,351 | 909 | 3.00 | % | 121,445 | 838 | 2.76 | % | ||||||||||||||
| Total investment securities | 441,594 | 3,474 | 3.15 | % | 435,790 | 2,577 | 2.37 | % | ||||||||||||||
| Interest bearing deposits with banks (5) | 104,355 | 1,040 | 3.99 | % | 79,155 | 945 | 4.78 | % | ||||||||||||||
| Total interest earning assets | 1,204,381 | 15,017 | 4.99 | % | 1,153,409 | 13,393 | 4.64 | % | ||||||||||||||
| Non-interest earning assets | 41,137 | 30,640 | ||||||||||||||||||||
| Total assets | $ | 1,245,518 | $ | 1,184,049 | ||||||||||||||||||
| Interest bearing liabilities: | ||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 430,790 | $ | 1,219 | 1.13 | % | $ | 437,573 | $ | 1,535 | 1.40 | % | ||||||||||
| Savings accounts | 221,620 | 116 | 0.21 | % | 224,311 | 159 | 0.28 | % | ||||||||||||||
| Time deposits | 233,890 | 2,267 | 3.88 | % | 185,112 | 1,936 | 4.18 | % | ||||||||||||||
| Total deposits | 886,300 | 3,602 | 1.63 | % | 846,996 | 3,630 | 1.71 | % | ||||||||||||||
| FHLB Advances | — | — | — | — | — | — | ||||||||||||||||
| Bank Term Funding Program Borrowings | — | — | — | 12,621 | 154 | 4.88 | % | |||||||||||||||
| Total interest bearing liabilities | 886,300 | 3,602 | 1.63 | % | 859,617 | 3,784 | 1.76 | % | ||||||||||||||
| Non-interest bearing liabilities | ||||||||||||||||||||||
| Non-interest bearing deposits | 215,030 | 202,008 | ||||||||||||||||||||
| Other liabilities | 9,257 | 7,294 | ||||||||||||||||||||
| Total liabilities | 1,110,587 | 1,068,919 | ||||||||||||||||||||
| Stockholders' equity (6) | 134,931 | 115,130 | ||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,245,518 | $ | 1,184,049 | ||||||||||||||||||
| Net interest income (tax-equivalent basis) | $ | 11,415 | $ | 9,609 | ||||||||||||||||||
| Less: tax equivalent adjustment | (214 | ) | (201 | ) | ||||||||||||||||||
| Net interest income | $ | 11,201 | $ | 9,408 | ||||||||||||||||||
| Interest rate spread | 3.29 | % | 2.81 | % | ||||||||||||||||||
| Interest rate spread (tax-equivalent basis) (7) | 3.36 | % | 2.88 | % | ||||||||||||||||||
| Net interest margin | 3.72 | % | 3.26 | % | ||||||||||||||||||
| Net interest margin (tax-equivalent basis) (7) | 3.79 | % | 3.33 | % | ||||||||||||||||||
| Ratio of average interest earning assets to average interest bearing liabilities | 135.89 | % | 134.18 | % | ||||||||||||||||||
_______________________________
(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 | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Net interest income (A) | $ | 11,201 | $ | 9,408 | $ | 42,150 | $ | 35,790 | ||||||||
| Add: Tax-equivalent adjustment | 214 | 201 | 816 | 778 | ||||||||||||
| Tax-equivalent net interest income (B) | 11,415 | 9,609 | 42,966 | 36,568 | ||||||||||||
| Average interest earning assets (C) | 1,204,381 | 1,153,409 | 1,189,961 | 1,141,176 | ||||||||||||
| Net interest margin (A)/(C) | 3.72 | % | 3.26 | % | 3.54 | % | 3.14 | % | ||||||||
| Net interest margin (tax-equivalent basis) (B)/(C) | 3.79 | % | 3.33 | % | 3.61 | % | 3.20 | % | ||||||||
| Total interest income (D) | $ | 14,803 | $ | 13,192 | $ | 56,847 | $ | 50,471 | ||||||||
| Add: Tax-equivalent adjustment | 214 | 201 | 816 | 778 | ||||||||||||
| Total interest income tax-equivalent basis (E) | 15,017 | 13,393 | 57,663 | 51,249 | ||||||||||||
| Average interest earning assets (F) | 1,204,381 | 1,153,409 | 1,189,961 | 1,141,176 | ||||||||||||
| Average yield on interest earning assets (D)/(F); (G) | 4.92 | % | 4.57 | % | 4.78 | % | 4.42 | % | ||||||||
| Average yield on interest earning assets tax-equivalent (E)/(F); (H) | 4.99 | % | 4.64 | % | 4.85 | % | 4.49 | % | ||||||||
| Average cost of interest bearing liabilities (I) | 1.63 | % | 1.76 | % | 1.66 | % | 1.73 | % | ||||||||
| Interest rate spread (G)-(I) | 3.29 | % | 2.81 | % | 3.12 | % | 2.69 | % | ||||||||
| Interest rate spread tax-equivalent (H)-(I) | 3.36 | % | 2.88 | % | 3.19 | % | 2.76 | % | ||||||||
FAQ
What were First Capital (FCAP) full-year 2025 earnings and EPS?
How did First Capital's net interest margin (NIM) change in 2025 for FCAP?
What drove First Capital (FCAP) revenue and margin improvement in 2025?
How large were First Capital's assets and deposits at December 31, 2025 (FCAP)?
Did First Capital (FCAP) report any material credit improvements in 2025?
How did operating expenses affect First Capital's 2025 results (FCAP)?
