First Capital reported net income of $4.8 million, or $1.43 per diluted share, for the quarter ended June 30, 2026, up from $3.8 million, or $1.13 per diluted share, in Q2 2025. For the six months ended June 30, 2026, net income was $9.1 million, or $2.72 per diluted share, compared with $7.0 million, or $2.09 per diluted share, a year earlier. The company cited higher yields on interest-earning assets, growth in average earning assets and modestly lower funding costs as key drivers of the improved earnings.

Financial Highlights

  • Quarterly net income: $4.8 million; net income attributable to First Capital: $4.762 million for Q2 2026 (Q2 2025: $3.775 million).
  • Diluted earnings per share: $1.43 for Q2 2026 (Q2 2025: $1.13); six-month diluted EPS: $2.72 (six months 2025: $2.09).
  • Net interest income: $12.087 million for the quarter (Q2 2025: $10.412 million); six-month net interest income: $23.505 million (six months 2025: $19.993 million).
  • Total non-interest income: $2.205 million for Q2 2026 (Q2 2025: $2.018 million); six-month non-interest income: $4.253 million (six months 2025: $3.866 million).
  • Total non-interest expense: $7.853 million for Q2 2026 (Q2 2025: $7.494 million); six-month non-interest expense: $15.606 million (six months 2025: $14.675 million).

Business Highlights

  • Yield and balance mix: Average tax-equivalent yield on interest-earning assets rose to 5.12% in Q2 2026 from 4.82% in Q2 2025, while average interest-earning assets increased to $1.237 billion from $1.182 billion.
  • Funding costs: Average cost of interest-bearing liabilities declined to 1.56% in Q2 2026 from 1.64% in Q2 2025, despite growth in average interest-bearing liabilities to $907.3 million.
  • Credit trends: Provision for credit losses increased to $425,000 for Q2 2026 (Q2 2025: $306,000); net charge-offs were $58,000 in Q2 2026 versus $113,000 in Q2 2025.
  • Investment portfolio actions: Management sold $18.7 million of available-for-sale securities during the first half of 2026 to reposition the investment portfolio for higher future yields.
  • Balance sheet and operations: Total assets $1.29 billion at June 30, 2026; deposits increased to $1.137 billion; the Bank operates 17 offices across Indiana and Kentucky communities.

Original SEC Filing:

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