First Capital, Inc. Reports Increased Net Income and Asset Growth in Q2 2025

First Capital, Inc. reported a significant increase in its financial performance for the second quarter of 2025, with net income attributable to the company rising to $3.8 million, or $1.13 per diluted share, compared to $2.8 million, or $0.85 per diluted share, in the same period last year. For the first half of 2025, net income reached $7.0 million, up from $5.8 million in the prior year. The company’s total interest income increased by $1.8 million year-over-year, driven by a higher average tax-equivalent yield on interest-earning assets, which rose from 4.42% to 4.82%. This growth in interest income was partially offset by a slight increase in total interest expense, which rose by $67,000.

In terms of asset growth, First Capital's total assets increased by $55.2 million, reaching $1.24 billion as of June 30, 2025. The company’s net loans receivable, excluding loans held for sale, also saw an increase of $18.0 million, primarily due to growth in multifamily residential, 1-4 family residential mortgage, and commercial real estate loans. Cash and cash equivalents rose significantly from $105.9 million at the end of 2024 to $134.6 million, largely due to net deposit inflows. Total deposits increased by $44.2 million, reflecting a strong demand for various deposit products.

Operationally, First Capital has made strategic investments in technology and marketing, which contributed to an increase in noninterest expenses by $494,000 for the quarter. The rise in expenses was attributed to higher compensation and benefits, occupancy costs, and data processing expenses. The company also recognized a loss on equity securities, which impacted noninterest income, leading to a slight decrease in total noninterest income compared to the previous year.

Looking ahead, First Capital remains optimistic about its growth trajectory, supported by a solid capital position and a well-capitalized status under regulatory guidelines. The company’s Community Bank Leverage Ratio was reported at 10.80% as of June 30, 2025, indicating a strong capital base to support future growth. Management continues to monitor market conditions and adjust strategies accordingly, particularly in response to interest rate fluctuations and competitive pressures in the banking sector.