First Capital, Inc. Reports Increased Net Income of $4.5 Million for Q3 2025

First Capital, Inc. reported a significant increase in its financial performance for the third quarter of 2025, with net income attributable to the company rising to $4.5 million, or $1.34 per diluted share, compared to $2.9 million, or $0.87 per diluted share, in the same period last year. For the nine months ended September 30, 2025, net income reached $11.5 million, up from $8.7 million in the prior year. The company's total interest income increased by $1.4 million to $14.7 million for the quarter, driven by a higher average yield on interest-earning assets, which rose from 4.59% to 4.94%. This was complemented by a decrease in total interest expense, which fell by $397,000, resulting in a net interest income after provision for credit losses of $10.8 million, up from $8.7 million in the previous year.

In terms of operational metrics, First Capital's total assets increased by $48 million to $1.24 billion as of September 30, 2025. The company saw a net increase in loans receivable of $11.1 million, primarily in commercial real estate and multifamily residential loans. Total deposits also rose by $28.3 million, reaching $1.09 billion, with notable increases in time deposits and non-interest-bearing checking accounts. The company maintained a strong liquidity position, with cash and cash equivalents totaling $112.2 million, bolstered by net deposit inflows.

Strategically, First Capital has focused on expanding its securities portfolio, with securities available for sale increasing by $32.4 million to $421.6 million. The company made significant purchases of U.S. government agency securities and municipal bonds during the nine-month period, while also realizing an unrealized gain of $12.1 million on its securities portfolio due to declining market interest rates. The company has not engaged in any borrowings, maintaining a conservative approach to leverage.

Looking ahead, First Capital's management expressed confidence in the company's ability to navigate market conditions, citing a strong capital position with a Community Bank Leverage Ratio of 10.82% as of September 30, 2025. The company continues to monitor interest rate risks and has implemented strategies to manage its asset-liability mismatch. The outlook remains positive, with expectations for continued growth in net interest income and overall profitability, supported by a solid foundation of customer deposits and a diversified loan portfolio.