First Capital, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2025, with net income rising to $16.4 million, or $4.89 per diluted share, compared to $11.9 million, or $3.57 per diluted share, in 2024. This 37.5% increase in net income was driven by a 17.8% rise in net interest income, which reached $42.2 million, up from $35.8 million the previous year. The increase in net interest income was attributed to higher average yields on interest-earning assets and a decrease in the cost of interest-bearing liabilities, despite an increase in the average balance of interest-bearing liabilities.
The company also experienced growth in its loan portfolio, with net loans increasing to $654.1 million from $631.2 million in 2024. This growth was primarily due to increases in multifamily residential and commercial real estate loans, although there was a notable decrease in other construction loans. Additionally, First Capital originated $41.8 million in residential mortgages for sale in the secondary market during 2025, compared to $32.8 million in 2024, allowing the bank to better manage interest rate risk.
Operationally, First Capital's total assets increased to $1.27 billion, up from $1.19 billion in the previous year, largely due to increases in cash and cash equivalents, as well as securities available for sale. Total deposits also rose by $56.6 million to $1.12 billion, with notable increases in time deposits and non-interest-bearing deposits. The bank maintained a strong capital position, with a Community Bank Leverage Ratio of 11.01% as of December 31, 2025, indicating compliance with regulatory capital requirements.
Looking ahead, First Capital plans to continue focusing on expanding its commercial and consumer lending activities while enhancing its product offerings and leveraging technology to improve operational efficiency. The bank aims to maintain a strong liquidity position and manage its credit risk effectively, particularly in light of potential economic fluctuations. Management remains optimistic about future growth opportunities, including potential acquisitions to expand market share in its primary operating areas.
About FIRST CAPITAL INC
First Capital, Inc. is a holding company primarily owning First Harrison Bank, a community-focused Indiana bank offering retail banking, commercial lending, mortgage, and investment services. It serves local markets with a range of deposit and loan products, emphasizing relationship banking, risk management, and regulatory compliance. The company supports its banking operations through investments, borrowings, and subsidiaries, maintaining a stable, customer-oriented financial services model.
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