First Capital, Inc. Reports Record Annual and Quarterly Earnings

Core Viewpoint - First Capital, Inc. reported significant growth in net income for the year ended December 31, 2025, reaching $16.4 million, or $4.89 per diluted share, compared to $11.9 million, or $3.57 per diluted share, for the previous year [1]. Financial Performance Summary - Net Interest Income: Increased by $6.7 million for the year ended December 31, 2025, driven by a rise in interest income of $6.4 million due to higher average tax-equivalent yield on interest-earning assets (from 4.49% to 4.85%) and an increase in average balance of interest-earning assets (from $1.14 billion to $1.19 billion) [2]. - Provision for Credit Losses: Decreased from $1.4 million in 2024 to $1.1 million in 2025, reflecting lower estimated lifetime expected credit losses [3]. - Noninterest Income: Increased by $809,000, primarily due to a gain on equity securities of $149,000 in 2025 compared to a loss of $374,000 in 2024, along with increased gains on loan sales and ATM fees [4]. - Noninterest Expenses: Increased by $1.7 million, mainly due to higher compensation and benefits ($1.3 million) and occupancy and equipment expenses ($472,000) [5]. - Income Tax Expense: Increased by $1.3 million, resulting in an effective tax rate of 17.7% for 2025, up from 15.6% in 2024 [6]. Quarterly Performance Summary - Net Income for Q4 2025: Reported at $4.9 million, or $1.46 per diluted share, compared to $3.3 million, or $0.97 per diluted share, for Q4 2024 [7]. - Net Interest Income for Q4 2025: Increased by $1.8 million, with interest income rising by $1.6 million due to higher average tax-equivalent yield (from 4.64% to 4.99%) and an increase in average balance of interest-earning assets (from $1.15 billion to $1.20 billion) [8]. - Provision for Credit Losses in Q4 2025: Slightly increased from $346,000 in Q4 2024 to $350,000 in Q4 2025 [9]. - Noninterest Income for Q4 2025: Increased by $358,000, driven by higher gains on loan sales and ATM fees [10]. - Noninterest Expenses for Q4 2025: Increased by $276,000, primarily due to higher compensation and benefits [11]. - Income Tax Expense for Q4 2025: Increased by $254,000, resulting in an effective tax rate of 16.1% for Q4 2025, down from 17.3% in Q4 2024 [12]. Financial Condition Comparison - Total Assets: Increased to $1.27 billion at December 31, 2025, from $1.19 billion at December 31, 2024 [13]. - Deposits: Increased by $56.6 million, from $1.07 billion to $1.12 billion [13]. - Nonperforming Assets: Remained stable, with nonperforming assets at $4.3 million in 2025 compared to $4.4 million in 2024 [13].