First Capital Q1 Net Income Climbs 34% to $4.3M on 3.81% NIM
First Capital posted Q1 net income of $4.3M, or $1.30 per diluted share, up from $3.2M, or $0.97, driven by a $1.8M net interest income boost and NIM rising to 3.81%. Provision for credit losses rose to $350K while noninterest expenses increased by $572K.
1. Q1 Financial Results
First Capital reported net income of $4.3 million, or $1.30 per diluted share, for the quarter ended March 31, 2026, up from $3.2 million, or $0.97 per share a year earlier. Net interest income after provision rose by $1.8 million and tax-equivalent net interest margin widened to 3.81%.
2. Asset and Liability Changes
Interest-earning assets averaged $1.22 billion, boosting interest income by $1.6 million as yields increased from 4.63% to 4.96%. Interest-bearing liabilities grew to $901.4 million while cost declined to 1.56%, contributing to margin expansion; deposits rose by $13.6 million to $1.14 billion.
3. Expenses, Provisions and Taxes
Provision for credit losses increased to $350,000, with net charge-offs of $111,000. Noninterest expenses rose $572,000 driven by higher professional services, compensation and consumer fraud losses; income tax expense climbed $358,000, lifting the effective tax rate to 19.2%.