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Get filing alertsFirst Capital reports Q2 net income up 26% to $4.8M on margin expansion and loan growth
Filed July 24, 2026 · Period ending July 24, 2026 · ~1 min read
Key Changes
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Q2 2026 net income rose 26% YoY to $4.8M ($1.43/share) from $3.8M ($1.13/share), driven by higher net interest margin and loan growth.
Exhibit 99.1 view on EDGAR → -
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Tax-equivalent net interest margin expanded 39 basis points YoY to 3.98% in Q2 2026, reflecting higher asset yields (5.12% vs. 4.82%) and lower funding costs (1.56% vs. 1.64%).
Exhibit 99.1 view on EDGAR → -
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Net loans grew $14.0M and deposits increased $13.7M in H1 2026, indicating balanced balance-sheet expansion.
Exhibit 99.1 view on EDGAR → -
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Nonperforming assets rose $0.5M to $4.9M at June 30, 2026, driven by an increase in nonaccrual loans from $4.3M to $4.9M; allowance for credit losses increased from 1.52% to 1.58% of gross loans.
Exhibit 99.1 view on EDGAR → -
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The company sold $18.7M of available-for-sale securities in H1 2026, recognizing a $92K loss, to reposition the portfolio for higher future yields.
Exhibit 99.1 view on EDGAR →
Summary
First Capital delivered strong Q2 2026 results, with net income up 26% year-over-year to $4.8 million ($1.43 per diluted share). The earnings growth was driven by a 39-basis-point expansion in net interest margin to 3.98%, reflecting both higher yields on interest-earning assets and lower funding costs. The company achieved balanced balance-sheet growth, adding $14.0 million in net loans and $13.7 million in deposits during the first half of 2026.
Retail holders should note the modest uptick in credit stress: nonperforming assets increased $0.5 million to $4.9 million, with nonaccrual loans rising from $4.3 million to $4.9 million. The allowance for credit losses as a percentage of gross loans increased from 1.52% to 1.58%, suggesting management is building reserves in response. The company also repositioned its investment portfolio by selling $18.7 million of available-for-sale securities at a $92,000 loss to capture higher future yields, a move that contributed to the year-over-year increase in investment-securities yields from 2.67% to 3.51% in Q2.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
net income of $4.8 million, or $1.43 per diluted share, for the quarter ended June 30, 2026, compared to net income of $3.8 million, or $1.13 per diluted share, for the quarter ended June 30, 2025
The company reported Q2 2026 net income of $4.8 million ($1.43 per diluted share), up from $3.8 million ($1.13 per share) in Q2 2025, a 26% increase. For the six-month period, net income was $9.1 million ($2.72 per share) versus $7.0 million ($2.09 per share) in the prior year.
Added in current filing · view on EDGAR →
Net loans receivable and cash and cash equivalents increased $14.0 million and $12.5 million, respectively, from December 31, 2025 to June 30, 2026 ... Deposits increased $13.7 million from $1.12 billion at December 31, 2025 to $1.14 billion at June 30, 2026.
Net loans grew $14.0 million and deposits increased $13.7 million in the first half of 2026, indicating balanced balance-sheet expansion. Cash and equivalents also rose $12.5 million, while available-for-sale securities declined $10.3 million as the company repositioned its investment portfolio.
Added in current filing · view on EDGAR →
The loss on sale of available for sale securities during the six months ended June 30, 2026 was a result of management’s decision to sell $18.7 million of available for sale securities to better position the Company’s investment portfolio for increased future yields.
The company sold $18.7 million of available-for-sale securities in the first half of 2026, recognizing a $92,000 loss, to reposition the portfolio for higher future yields. This strategic move contributed to the year-over-year increase in investment-securities yields from 2.67% to 3.51% in Q2.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 27, 2026 · How we verify