Did First Capital beat earnings in Q4 2025?

First Capital reported record Q4 2025 EPS of $1.46, up 50% from $0.97 in Q4 2024. The company has no analyst coverage for consensus estimates, but delivered its best quarterly and annual results in company history.

What is First Capital's net interest margin?

First Capital's net interest margin (tax-equivalent) expanded to 3.79% in Q4 2025, up 46 basis points from 3.33% in Q4 2024, driven by higher asset yields and lower funding costs.

What is First Capital's dividend?

First Capital increased its quarterly dividend to $0.31 per share in Q4 2025, up from $0.29 in Q4 2024, representing a 6.9% increase.

FIRST CAPITAL (FCAP)·Q4 2025 Earnings Summary

First Capital Q4 2025 Earnings: Record EPS of $1.46, NIM Expands to 3.79%

January 23, 2026 · by Fintool AI Agent

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First Capital, Inc. (NASDAQ: FCAP), the holding company for First Harrison Bank, reported record quarterly and annual earnings. Q4 2025 net income reached $4.9 million ($1.46 per diluted share), up 50% year-over-year from $3.3 million ($0.97). For the full year, the company earned $16.4 million ($4.89 per diluted share), a 37% increase from $11.9 million ($3.57) in 2024.

The results were driven by significant net interest margin expansion as asset yields rose faster than funding costs. Total assets grew to $1.27 billion, deposits reached $1.12 billion, and the company maintained strong capital ratios with a Community Bank Leverage Ratio of 11.02%.

Did First Capital Beat Earnings?

First Capital does not have active analyst coverage, so there are no consensus estimates to compare against. However, the company delivered exceptional results by any measure:

Metric	Q4 2025	Q4 2024	Change
Net Income	$4.9M	$3.3M	+50%
Diluted EPS	$1.46	$0.97	+50%
Net Interest Income	$11.2M	$9.4M	+19%
Return on Assets	1.57%	1.10%	+47 bps
Return on Equity	14.46%	11.33%	+313 bps

For the full year:

Metric	FY 2025	FY 2024	Change
Net Income	$16.4M	$11.9M	+37%
Diluted EPS	$4.89	$3.57	+37%
Return on Assets	1.34%	1.02%	+32 bps
Return on Equity	13.18%	10.97%	+221 bps

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What Drove the Record Results?

Net Interest Margin Expansion

The primary driver was a 46 basis point expansion in net interest margin (tax-equivalent) from 3.33% in Q4 2024 to 3.79% in Q4 2025.

NIM Expansion

Key drivers of NIM expansion:

Higher Asset Yields: Average tax-equivalent yield on interest-earning assets increased to 4.99% from 4.64% (+35 bps)
Lower Funding Costs: Average cost of interest-bearing liabilities decreased to 1.63% from 1.76% (-13 bps)
Balance Sheet Growth: Average interest-earning assets grew to $1.20 billion from $1.15 billion (+4.4%)

For the full year, the tax-equivalent NIM expanded 41 basis points from 3.20% in 2024 to 3.61% in 2025.

Strong Balance Sheet Growth

Metric	Dec 31, 2025	Dec 31, 2024	Change
Total Assets	$1.27B	$1.19B	+$84M
Total Deposits	$1.12B	$1.07B	+$57M
Gross Loans	$664M	$640M	+$24M
Securities	$424M	$396M	+$28M
Stockholders' Equity	$138M	$115M	+$23M

How Did the Stock React?

FCAP shares closed at $50.87 on January 23, 2026, down 2.7% on the day of the earnings release. However, the stock has dramatically outperformed over the past year:

YTD 2025: +55%
1-Year Return: +85%
52-Week Range: $31.21 - $71.00

The decline on earnings day may reflect profit-taking after the stock's strong run, rather than disappointment with results. FCAP trades at roughly 10.4x trailing EPS ($4.89) with a market cap of approximately $171 million.

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What Changed From Last Quarter?

Positive Developments

NIM Acceleration: Q4 2025 NIM of 3.79% improved sequentially from 3.64% in Q3 2025
Dividend Increase: Quarterly dividend raised to $0.31 from $0.29 (+6.9%)
Debt Elimination: The Bank fully repaid Bank Term Funding Program borrowings ($33.6M outstanding through Q3 2024)
Capital Strength: Community Bank Leverage Ratio improved to 11.02% from 10.57%

Areas to Monitor

Asset Quality: Nonperforming assets remained stable at $4.3 million, but allowance for credit losses increased to 1.52% of gross loans from 1.45%
Expense Growth: Noninterest expenses increased $1.7 million (+6%) for the year, primarily due to higher compensation costs and one-time items (storm damage, branch demolition)
Provision for Credit Losses: $350K provision in Q4 2025 vs $346K in Q4 2024, with net charge-offs of $103K vs $24K

Capital Allocation

First Capital returned capital to shareholders through dividends:

Metric	Q4 2025	Q4 2024	FY 2025	FY 2024
Dividend per Share	$0.31	$0.29	$1.20	$1.12
Dividend Yield	~2.4%	~3.5%	—	—

The bank maintained a strong capital position with no external borrowings as of Q4 2025, having repaid all FHLB advances and Bank Term Funding Program borrowings.

Company Overview

First Capital, Inc. is the holding company for First Harrison Bank, a community bank serving southern Indiana and northern Kentucky. The bank operates 17 branches in communities including Corydon, New Albany, Jeffersonville, Salem, Shepherdsville, and Mt. Washington.

The company focuses on traditional community banking — gathering deposits and originating loans — with a conservative balance sheet and strong local market presence.

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Key Takeaways

Record Results: Q4 EPS of $1.46 (+50% YoY) and FY EPS of $4.89 (+37% YoY) mark the best quarter and year in company history
NIM Expansion: Net interest margin expanded 46 bps YoY to 3.79%, the primary earnings driver
Balance Sheet Strength: Total assets grew to $1.27B, deposits to $1.12B, with no external borrowings
Shareholder Returns: Dividend increased 6.9% to $0.31 quarterly; stock up 85% over past year
Credit Quality: Stable NPAs at $4.3M despite slightly higher provision and charge-offs