First Capital, Inc. (FCAP): History, Ownership, Mission, How It Works & Makes Money

When you look at community banking, are you seeing a sector that can still deliver record quarterly earnings in a volatile market? First Capital, Inc. (FCAP), the holding company for First Harrison Bank, defintely proves it can, reporting a Q3 2025 net income of $4.5 million and growing its total assets to $1.235 billion as of September 30, 2025. This performance, driven by a strong tax-equivalent net interest margin of 3.71%, establishes First Capital, Inc. as a precise case study in how a regional savings and loan operates and generates value-but how does a company with a market capitalization of just $150.98 million consistently outperform? Dive in to understand the core mission, ownership structure, and the mechanics that power its balance sheet.

First Capital, Inc. (FCAP) History

You're looking for the origin story of First Capital, Inc., and honestly, you have to look past the holding company ticker to the community bank that started it all. The story isn't about a Silicon Valley startup; it's about a financial institution that's been serving southern Indiana for over a century, which gives it a defintely solid foundation.

Given Company's Founding Timeline

Year established

The core institution, First Harrison Bank, was established on January 1, 1891, under the name First Federal Savings and Loan Association of Corydon. [cite: 1 (from step 3)]

Original location

Corydon, Indiana, which is a great historical touch since it was Indiana's first state capital. [cite: 2 (from step 3)]

Founding team members

The original founders of the First Federal Savings and Loan Association in 1891 are not individually named in public records, but the institution was born out of a community-focused effort to fund local housing and neighborhood dreams. The modern, publicly-traded entity, First Capital, Inc., was formed later as the bank holding company. [cite: 1 (from step 3)]

Initial capital/funding

The initial capital for the 1891 founding is not specified, but the key modern funding event was the company's Initial Public Offering (IPO) on the NASDAQ exchange on January 4, 1999, which created the current holding company structure.

Given Company's Evolution Milestones

The company's trajectory has been a steady expansion of its local footprint, moving from a single-office savings and loan to a multi-county commercial bank with seventeen locations across Indiana and Kentucky. [cite: 2 (from step 3)]

Given Company's Transformative Moments

The biggest shift for First Capital, Inc. wasn't a single acquisition, but the strategic decision to become a publicly-traded holding company in 1999. This move gave the bank permanent access to capital markets, allowing it to expand its branch network beyond Corydon and into other key southern Indiana and Kentucky markets.

• Public Listing for Capital: Listing on NASDAQ in 1999, which allowed the company to raise capital to support its lending activities, particularly in real estate mortgage and commercial business loans.
• Focus on Core Lending: The bank maintains a disciplined focus on real estate mortgage loans, consumer loans, and commercial business loans, which keeps its trailing twelve months (TTM) Return on Investment (ROI) at a healthy 11.40%. [cite: 6 (from step 4), 3 (from step 1)]
• 2025 Financial Strength: The third quarter of 2025 showed record quarterly earnings, with a Q3 Revenue of $13.26 million and Earnings Per Share (EPS) of $1.34, reinforcing its stability and conservative risk management. [cite: 3 (from step 1)]
• Commitment to Shareholders: The company continues to return value, as seen by the quarterly cash dividend increase to $0.31 per share announced in August 2025.

That consistent performance is why the market capitalization sits around $150.98 million as of November 2025; steady growth is a powerful engine. If you want to dig deeper into their long-term strategy, check out the Mission Statement, Vision, & Core Values of First Capital, Inc. (FCAP).

First Capital, Inc. (FCAP) Ownership Structure

First Capital, Inc. (FCAP) is a publicly traded savings and loan holding company, which means its ownership is distributed among a mix of institutional investors, corporate insiders, and the general public, with a significant majority held by individual retail investors.

This structure, with a market capitalization of approximately $150.98 million as of November 2025, allows for public trading on the NASDAQ, but the high retail ownership percentage means the stock's price movements can be more volatile than those of companies with a heavier institutional presence.

First Capital, Inc.'s Current Status

First Capital, Inc. is a public entity, trading on the NASDAQ under the ticker symbol FCAP. It operates as the holding company for First Capital Bank of Indiana, a community bank focused on traditional savings and loan services.

This public status ensures transparency through regular filings with the Securities and Exchange Commission (SEC), giving you a clear view of its financial health and governance. The company is currently trading around $45.00 per share, reflecting a cautious consensus rating of 'Hold' from analysts as of November 2025.

First Capital, Inc.'s Ownership Breakdown

Understanding who owns the stock is crucial for anticipating major strategic moves or proxy battles. The ownership breakdown as of the most recent filings (Q2 2025) shows that the largest stake is held by the individual investor base, a common trait for smaller-cap financial institutions like this. Here's the quick math on who controls the shares:

The fact that insiders own 4.01% is a positive signal; it means the people running the company have their own capital at risk, aligning their interests with yours. To be fair, though, the large retail float means you defintely need to keep an eye on trading volume for signs of sudden shifts. You can learn more about the major institutional holders in Exploring First Capital, Inc. (FCAP) Investor Profile: Who's Buying and Why?

First Capital, Inc.'s Leadership

The company is steered by a seasoned executive team, with an average management tenure of around 2.5 years, balanced by a long-tenured Board of Directors averaging 15.7 years. This blend of fresh executive perspective and deep institutional knowledge on the board is a good sign for stability and strategic execution.

The key leaders guiding First Capital, Inc.'s strategy as of November 2025 include:

• Michael Frederick: Chief Executive Officer (CEO), President & Director. He was appointed to the CEO role in July 2023.
• Joshua Stevens: Chief Financial Officer (CFO).
• Angie Jett: Chief Operating Officer (COO).
• Joseph Mahuron: Chief Credit Officer.
• Kathryn Ernstberger: Independent Chairwoman of the Board.

The CEO's total yearly compensation is comparatively low at $363.75K, which is below the average for similar-sized US companies, suggesting a focus on lean operational costs. This management group is responsible for navigating the near-term risks in the savings and loan sector, primarily around interest rate fluctuations and credit quality.

First Capital, Inc. (FCAP) Mission and Values

First Capital, Inc. (FCAP), the holding company for First Harrison Bank, grounds its operations not in abstract financial metrics but in a clear philosophy of community partnership and exceptional, local service. This focus is the cultural DNA that allows the bank to manage over $1.19 billion in assets and $1.07 billion in deposits as of December 31, 2024, while staying deeply connected to its Southern Indiana and Kentucky markets.

First Capital, Inc.'s Core Purpose

The company's core purpose is to be a trusted, local financial partner, a model established when First Harrison Bank welcomed its first customers back in 1891. This means decisions on real estate mortgage loans, their primary revenue source, are made locally by people who understand the community, not by an algorithm miles away. They are organized to deliver retail and business banking, residential mortgage lending, and real estate finance through strong, local relationships.

Official Mission Statement

While First Capital, Inc. does not publish a single, formal mission statement laden with corporate jargon, its operating philosophy serves as its mission: to provide exceptional service and to help fund the dreams of its neighbors in the community. This mission translates into three core roles:

• Community Bank: Operating 17 locations across five counties, they are literally your neighbors, focused on local events and community drives.
• Community Lender: Helping customers achieve financial goals, whether it is buying a new home or providing loans to local businesses that create jobs.
• Community Partner: Generously providing time and financial support to local charitable organizations like Relay for Life, The Salvation Army, and Metro United Way, believing that if the community thrives, the bank will too.

Vision Statement

The vision for First Capital, Inc. is to be the indispensable, enduring community financial institution in its region, ensuring its local roots and personalized service model continue to drive stability and growth. The focus is on long-term value creation for shareholders by generating stable cash flow, which is a direct outcome of deep community engagement. You can see how this plays out in the market by Exploring First Capital, Inc. (FCAP) Investor Profile: Who's Buying and Why?

• Local Focus: Maintaining a physical and cultural presence in Southern Indiana and Kentucky.
• Relationship-First: Prioritizing friendly, personalized service over purely transactional banking.
• Employee-Centric: Fostering a culture that employees describe as feeling like a defintely supportive family.

First Capital, Inc. Slogan/Tagline

The bank's most concise and active tagline, often used in its product marketing, is a direct call to financial action:

• Make It Add Up.

Here's the quick math: when a community bank with $1.19 billion in assets focuses on local lending, that capital stays in the community, and that's how it adds up for everyone.

First Capital, Inc. (FCAP) How It Works

First Capital, Inc. (FCAP) operates as the holding company for its primary subsidiary, First Harrison Bank, functioning as a traditional community bank that monetizes the spread between the interest earned on loans and the interest paid on deposits (Net Interest Margin). The company is currently executing a strategic pivot to stabilize revenue by exiting the volatile mortgage lending business, focusing instead on core community banking and commercial lending in Indiana and Kentucky.

First Capital, Inc.'s Product/Service Portfolio

The bank's revenue generation hinges on a diversified portfolio of loans and deposit products, catering to both local consumers and small to medium-sized businesses. As of mid-2025, the bank is actively emphasizing its core commercial and consumer lending segments over the recently acquired, but soon-to-be-divested, national mortgage operations.

First Capital, Inc.'s Operational Framework

The operational framework is straightforward: collect low-cost local deposits and deploy that capital into higher-yielding loans within the bank's defined geographic footprint. This is the classic community banking model, and it's how they generate the bulk of their income.

• Funding and Lending: The bank's Q2 2025 balance sheet shows total deposits of approximately $1.11 billion, which funds net loans and leases of about $649.174 million. This conservative loan-to-deposit ratio helps manage liquidity risk.
• Value Creation: Profit is driven by the Net Interest Margin (NIM), which reached a tax-equivalent rate of 3.34% in Q1 2025, a solid increase from 3.14% in the prior year's quarter. This margin is the core measure of profitability.
• Distribution Network: Operations are centralized through the holding company but delivered via seventeen physical branch locations across targeted communities in Indiana and Kentucky.
• Strategic Restructuring: Management made the defintely strategic decision to exit the volatile mortgage lending operations by May 2026, which was acquired in May 2025. This move simplifies the business and reduces exposure to non-core, high-volume, low-margin activities.

Here's the quick math: The difference between the 4.63% average yield on interest-earning assets and the 1.71% average cost of interest-bearing liabilities in Q1 2025 is what drives that NIM.

First Capital, Inc.'s Strategic Advantages

In a market dominated by mega-banks, First Capital, Inc.'s competitive edge is rooted in its local focus and capital discipline, which translates into a more personalized and efficient service model for its target market.

• Community Focus and Local Decision-Making: Unlike larger institutions, loan decisions are made locally by people who understand the regional economy and the borrower's situation, leading to quicker turnarounds and more flexible underwriting.
• Capital Strength and Stability: The bank holding company maintains a strong financial profile, with a Return on Equity (ROE) of 12.62% year-to-date as of Q2 2025. This stability, combined with a conservative loan-to-deposit ratio, earns it a high financial health rating.
• Clean Balance Sheet Post-Restructuring: The plan to fully exit the mortgage segment by May 2026 is expected to result in cleaner financials and improved operational efficiency, allowing for a concentrated focus on commercial and consumer banking. This is a clear action that should improve long-term shareholder returns.

If you want to dig deeper into the company's long-term philosophy, you can review its guiding principles: Mission Statement, Vision, & Core Values of First Capital, Inc. (FCAP).

First Capital, Inc. (FCAP) How It Makes Money

First Capital, Inc. (FCAP) primarily makes money through the classic banking model: borrowing funds from depositors at a lower rate and lending those funds out at a higher rate, which generates net interest income (NII). This core function is supplemented by fee income from various banking services and wealth management products.

The company's financial engine is its subsidiary, First Harrison Bank, which focuses on community banking across Indiana and Kentucky, concentrating on residential, commercial real estate, and consumer loans. Honestly, for a bank, your profit comes down to how well you manage that spread-the net interest margin (NIM)-and keep your credit losses low. In Q3 2025, this strategy delivered a record quarterly net income of $4.5 million.

First Capital's Revenue Breakdown

As of the third quarter ended September 30, 2025, the vast majority of the company's revenue-almost 80%-comes from its lending activities, underscoring its reliance on a healthy net interest margin (NIM). The remaining portion is a critical source of diversification, mainly from service fees and investment gains.

Here's the quick math for Q3 2025: Total revenue was approximately $10.96 million. Net Interest Income accounted for about $8.65 million, with Noninterest Income adding $2.31 million.

Business Economics

The core economic fundamental for First Capital, a financial holding company, is managing its interest rate risk, which is the difference between the yield on its interest-earning assets (like loans) and the cost of its interest-bearing liabilities (like deposits). The Q3 2025 results show a strong tailwind from a favorable rate environment and smart liability management.

• Net Interest Margin (NIM): The NIM is the primary profitability metric, and it expanded significantly to 3.71% in Q3 2025, up from 3.19% in the same period a year ago. This 52 basis point increase shows they're earning more on their loans relative to what they pay on deposits.
• Deposit Pricing Power: The average cost of interest-bearing liabilities actually decreased to 1.66% in Q3 2025 from 1.87% in Q3 2024. This is a huge win, as it means they are retaining deposits without having to pay up aggressively, which widens the NIM.
• Noninterest Income Drivers: The $506,000 increase in noninterest income was not just from routine fees. It was heavily influenced by a $150,000 gain on equity securities, a reversal from a loss in the prior year, plus a $119,000 increase in gains from the sale of loans. This shows a volatile but opportunistic revenue stream.

To be fair, they also saw noninterest expenses increase by $540,000 due to higher occupancy, equipment, and compensation costs, which is a near-term headwind to watch.

For a deeper look at the long-term strategic direction that drives these numbers, you should review their Mission Statement, Vision, & Core Values of First Capital, Inc. (FCAP).

First Capital's Financial Performance

The company is showing robust profitability and asset quality improvements through the first nine months of 2025. The focus on core banking and credit risk management is clearly paying off in the current economic cycle.

• Year-to-Date Net Income: Net income for the nine months ended September 30, 2025, reached $11.49 million, a substantial increase from $8.7 million in the same period of 2024.
• Earnings Per Share (EPS): Diluted earnings per share for the nine months stood at $3.43, a strong indicator of value creation for shareholders.
• Asset Quality: The provision for credit losses decreased to $150,000 in Q3 2025 from $463,000 in Q3 2024, reflecting a healthier credit environment and a decrease in non-performing loans. This is defintely a key risk indicator moving in the right direction.
• Balance Sheet Strength: Total assets grew to $1.235 billion as of September 30, 2025, supported by a solid deposit base of $1.094 billion. This asset growth provides the foundation for future interest income generation.

First Capital, Inc. (FCAP) Market Position & Future Outlook

First Capital, Inc. (FCAP) is positioned as a niche player in the US Business Development Company (BDC) sector, focusing on providing capital to the middle-market. Its future outlook hinges on maintaining strong credit quality in its loan portfolio and capitalizing on the current elevated interest rate environment, which has driven its Q3 2025 Net Income to $4.5 million.

You need to understand that FCAP's strength comes from its focused, disciplined underwriting process, not its scale. The company's market capitalization of approximately $148 million as of November 2025 is tiny compared to the giants in the BDC space, which means it operates with different risk and opportunity profiles.

Competitive Landscape

FCAP competes primarily with other BDCs and private credit funds for deals in the US middle-market. To give you a sense of scale, here is a look at FCAP relative to two of the largest publicly traded BDCs. This isn't a true market share of the entire private credit market, but it shows FCAP's position in the public BDC universe.

FCAP's core competitive advantage is its specialized focus on debt and equity financing for US middle-market companies across diverse industries like healthcare services and industrials. This specialization allows them to execute rigorous due diligence and active portfolio monitoring, which is defintely crucial when you are not benefiting from the scale of a multi-billion-dollar platform.

Opportunities & Challenges

The BDC sector faces a mixed bag of macro drivers in late 2025. While higher rates have been a tailwind, credit quality is the big question mark. Here's the quick math on what FCAP is facing right now:

Industry Position

FCAP is a small-cap BDC that thrives on selectivity and conservative underwriting, not market domination. It's not a bellwether like Ares Capital Corporation, but its structure as a BDC requires it to distribute at least 90% of its taxable income, which keeps it attractive to income investors.

• Focus on senior secured loans helps mitigate the risk of rising non-accruals.
• FCAP's strategy emphasizes disciplined underwriting and conservative risk management to preserve capital.
• The market's valuation pressure on BDCs, with the benchmark index declining 0.4% year-to-date in 2025, presents a potential buying opportunity for high-quality names.
• The company must maintain a strong liquidity position to manage potential portfolio losses and take advantage of new investment opportunities.

What this estimate hides is that while FCAP's relative market share is small, its deep relationships in its target industries give it a strong competitive moat against the larger, more generalized BDCs. For a deeper dive into the numbers, you can read Breaking Down First Capital, Inc. (FCAP) Financial Health: Key Insights for Investors.