First Capital, Inc. Reports $4.3 Million Net Income for Q1 2026

First Capital, Inc. reported a net income of $4.3 million for the first quarter of 2026, translating to earnings of $1.30 per diluted share, a significant increase from the $3.2 million or $0.97 per diluted share recorded in the same period of 2025. The company's total interest income rose to $14.9 million, up from $13.3 million year-over-year, primarily driven by an increase in the average tax-equivalent yield on interest-earning assets, which rose from 4.63% to 4.96%. This increase in interest income was partially offset by a decrease in interest expense, which fell to $3.5 million from $3.8 million, resulting in a net interest income after provision for credit losses of $11.1 million, compared to $9.2 million in the prior year.

In terms of financial position, First Capital's total assets increased by $12.2 million to $1.28 billion as of March 31, 2026, compared to $1.27 billion at the end of 2025. The increase was largely attributed to a $10.3 million rise in net loans receivable, which reached $664.4 million, driven by growth in other construction, development, and land loans, as well as commercial business and multifamily loans. Cash and cash equivalents also saw an increase, rising to $149.6 million from $137.3 million, primarily due to net deposit inflows and sales of available-for-sale securities.

The company experienced a $13.6 million increase in total deposits, which reached $1.14 billion, with notable growth in savings and time deposits. However, there was a slight decline in non-interest-bearing checking accounts. First Capital's stockholders' equity increased to $138.0 million, up from $137.8 million, mainly due to retained earnings, despite a net unrealized loss on available-for-sale securities attributed to rising market interest rates.

Operationally, First Capital's noninterest income rose to $2.0 million, an increase from $1.8 million in the previous year, driven by higher gains on equity securities and increased ATM and debit card fees. However, the company also recognized a loss on the sale of available-for-sale securities, which was higher than the previous year. Noninterest expenses increased to $7.8 million, reflecting higher costs in professional services, compensation, and other operational expenses.

Looking ahead, First Capital, Inc. remains focused on managing its interest rate risk and optimizing its asset-liability mix to enhance profitability. The company continues to monitor market conditions and customer needs to adapt its strategies accordingly. Management believes that the current economic environment presents both challenges and opportunities, and they are committed to maintaining a strong capital position while pursuing growth initiatives.