First Capital Inc. has announced its financial results for the third quarter of 2026, revealing a notable increase in net income. The company reported a net income of $5.1 million, or $1.53 per diluted share, compared to $4.5 million, or $1.34 per diluted share, for the same period last year. This growth highlights the company’s strong operational performance and effective management of its financial resources.
Based in Corydon, Indiana, First Capital Inc. operates as a federally chartered savings institution under the ticker FCAP on the Nasdaq exchange. The company serves as the holding entity for First Harrison Bank, focusing on providing a range of financial services to its customers. The recent filing, dated October 23, 2026, also included details on the company’s financial condition and operations for the three and nine months ended September 30, 2026.
According to the filing, net interest income after provision for credit losses increased by $1.3 million for the quarter compared to the same period in 2025. The increase in interest income was attributed to a rise in the average tax-equivalent yield on interest-earning assets, which climbed from 4.94% in Q3 2025 to 5.23% in Q3 2026. Additionally, the average balance of interest-earning assets rose from $1.20 billion to $1.25 billion during the same timeframe.
However, the company did experience an increase in the provision for credit losses, which rose from $150,000 in Q3 2025 to $355,000 in Q3 2026. This increase was reflective of management's ongoing assessment of the Allowance for Credit Losses (ACL) on loans and unfunded loan commitments. The bank recognized net charge-offs of $123,000 for Q3 2026 compared to $17,000 for the same quarter in 2025.
Noninterest income saw a slight decline of $14,000, primarily due to a loss on equity securities during Q3 2026, contrasting with a gain in the previous year. This decrease was partially offset by increases in other income and service charges on deposit accounts, indicating a diversified income stream for the company.
On the expense side, noninterest expenses increased by $545,000 compared to the same quarter last year, driven largely by higher compensation and benefits costs. The company noted that these increases were due to annual cost-of-living adjustments and rising health insurance costs. Despite these challenges, the company managed to maintain a solid income tax expense, which rose by $164,000, resulting in an effective tax rate of 19.4% for the quarter.
Looking ahead, First Capital Inc. continues to navigate a competitive landscape within the federally chartered savings institution sector. The financial results disclosed in the filing may influence investor sentiment and strategic decisions among competitors. The filing does not specify what actions the company will take next regarding its financial strategy or operational adjustments.
Overall, First Capital Inc.'s performance in Q3 2026 reflects a robust operational framework, positioning the company favorably within its industry as it adapts to evolving market conditions.