CORYDON, Ind., Jan. 23, 2026 (GLOBE NEWSWIRE) -- First Capital, Inc. (the “Company”) (NASDAQ: FCAP),...

FCAP

First Capital, Inc. Reports Record Annual and Quarterly Earnings

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  <section data-block="information">
    <h3>Information</h3>
    <p>CORYDON, Ind., Jan. 23, 2026 (GLOBE NEWSWIRE) -- First Capital, Inc. (the “Company”) (NASDAQ: FCAP),...</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>First Capital, Inc. (FCAP) reported a significant increase in net income to $16.4 million for 2025, boosted by a higher net interest margin of 3.61%. This positions FCAP for potential growth, given the improving financial metrics and solid asset base of $1.27 billion.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>FCAP&#039;s net income rose to $16.4 million for 2025.</li><li>Net interest margin increased to 3.61% in 2025.</li><li>Noninterest income improved by $809,000 year-on-year.</li><li>Total assets reached $1.27 billion at year-end 2025.</li><li>Dividends per share increased to $1.20 for 2025.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>First Capital, Inc. (FCAP)</strong>: FCAP&#039;s financials indicate a strong outlook with improved earnings.</li></ul>
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  <section data-block="category">
    <h3>Earnings</h3>
    <p>This news fits within &#039;Earnings&#039;, reflecting FCAP&#039;s annual performance results which showcase significant profitability improvements and strategic management of interests and costs, making it a relevant update for investors.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Net income increased by 37% year-on-year, indicating robust profitability.</li><li>Net interest margin up by 0.41 percentage points, enhancing earnings potential.</li><li>Total assets increased by $82 million, reflecting strong growth.</li><li>Dividends per share increased, attracting income-focused investors.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Net income for 2025: $16.4 million, or $4.89 per diluted share.</li><li>Net interest margin improved to 3.61% for 2025.</li><li>Total deposits rose to $1.12 billion by December 2025.</li><li>Dividends per share increased to $1.20 from $1.12 in 2024.</li><li>Provision for credit losses decreased to $1.1 million in 2025.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Buy FCAP in anticipation of continued growth and improved financial performance over the next 12 months.</p>
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<article>
    <h2>First Capital, Inc. Reports Record Annual and Quarterly Earnings</h2>
    <p>CORYDON, Ind., Jan. 23, 2026 (GLOBE NEWSWIRE) -- First Capital, Inc. (NASDAQ: <strong>FCAP</strong>), the holding company for First Harrison Bank, has announced impressive financial results for the year and quarter ending December 31, 2025. The Company recorded a net income of <strong>$16.4 million</strong>, or <strong>$4.89 per diluted share</strong>, marking a significant increase from the <strong>$11.9 million</strong>, or <strong>$3.57 per diluted share</strong>, achieved in 2024.</p>

    <section>
        <h3>Annual Performance Overview</h3>
        <p>For the year ended December 31, 2025, First Capital, Inc. saw a remarkable rise in net interest income after provision for credit losses, which increased by <strong>$6.7 million</strong> compared to the previous year. The company also reported notable changes in interest income, fueled by several factors:</p>
        <ul>
            <li>Interest income ascended by <strong>$6.4 million</strong> due to an increase in the average tax-equivalent yield on interest-earning assets from <strong>4.49%</strong> in 2024 to <strong>4.85%</strong> in 2025.</li>
            <li>The average balance of interest-earning assets rose from <strong>$1.14 billion</strong> to <strong>$1.19 billion</strong>.</li>
            <li>The tax-equivalent net interest margin improved from <strong>3.20%</strong> in 2024 to <strong>3.61%</strong> in 2025.</li>
        </ul>
        <p>Interest expense saw a nominal increase of <strong>$16,000</strong>, but the average cost of interest-bearing liabilities decreased to <strong>1.66%</strong> from <strong>1.73%</strong>.</p>
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    <section>
        <h3>Credit Losses and Charge-Offs</h3>
        <p>The provision for credit losses diminished from <strong>$1.4 million</strong> in 2024 to <strong>$1.1 million</strong> in 2025. This decline was attributed to a lower anticipated change in estimated lifetime expected credit losses. Additionally, the Bank recorded net charge-offs of <strong>$317,000</strong> for 2025, which was an increase compared to <strong>$173,000</strong> in 2024.</p>
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    <section>
        <h3>Noninterest Income and Expenses</h3>
        <p>Noninterest income for the year increased by <strong>$809,000</strong>, primarily due to:</p>
        <ul>
            <li>A <strong>$149,000</strong> gain on equity securities in 2025, contrasting with a <strong>$374,000</strong> loss in 2024.</li>
            <li>A <strong>$238,000</strong> uptick in gains on sale of loans.</li>
            <li>A <strong>$73,000</strong> rise in ATM and debit card fee income.</li>
        </ul>
        <p>However, this growth was partially offset by a net loss of <strong>$94,000</strong> on the sale of available-for-sale securities in 2025.</p>

        <p>In terms of expenses, noninterest expenses increased by <strong>$1.7 million</strong>, mainly due to:</p>
        <ul>
            <li>An increase in compensation and benefits by <strong>$1.3 million</strong>.</li>
            <li>An increase in occupancy and equipment expenses of <strong>$472,000</strong>.</li>
        </ul>
        <p>Compensation increases were attributed to cost-of-living adjustments and performance-related increases, while the rise in occupancy costs was due to various branch-related expenses.</p>
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    <section>
        <h3>Quarterly Results Highlight</h3>
        <p>For the quarter ending December 31, 2025, First Capital, Inc. reported a net income of <strong>$4.9 million</strong>, or <strong>$1.46 per diluted share</strong>, compared to <strong>$3.3 million</strong>, or <strong>$0.97 per diluted share</strong> in the previous year.</p>
        <p>Key figures from the quarter include:</p>
        <ul>
            <li>Net interest income after provision for credit losses rose by <strong>$1.8 million</strong>.</li>
            <li>Interest income increased by <strong>$1.6 million</strong>, with the tax-equivalent yield on interest-earning assets increasing from <strong>4.64%</strong> to <strong>4.99%</strong>.</li>
            <li>Tax-equivalent net interest margin improved from <strong>3.33%</strong> to <strong>3.79%</strong>.</li>
        </ul>
        <p>The Company also noted an increase in the provision for credit losses from <strong>$346,000</strong> in the previous year to <strong>$350,000</strong> for this quarter.</p>
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    <section>
        <h3>Looking Ahead</h3>
        <p>As First Capital, Inc. continues to experience growth and robust earnings, stakeholders can anticipate ongoing improvements in both revenues and net income. The Bank's solid performance amidst changing economic conditions reinforces its status in the banking sector, with the symbol <strong>FCAP</strong> becoming increasingly significant in the market.</p>
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</article>

First Capital, Inc. (FCAP) reported a significant increase in net income to $16.4 million for 2025, boosted by a higher net interest margin of 3.61%. This positions FCAP for potential growth, given the improving financial metrics and solid asset base of $1.27 billion.

First Capital, Inc. Reports Record Annual and Quarterly Earnings

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Earnings

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