First Capital, Inc. (FCAP): BCG Matrix [Dec-2025 Updated]

You're looking at First Capital, Inc. (FCAP) right now, and honestly, the picture is sharper than you might expect for a regional player; they've hit record net income, fueled by a Tax-equivalent Net Interest Margin climbing to 3.71% in Q3 2025, but not every division is pulling its weight. We've mapped their business units using the four-quadrant framework to see exactly where the growth engine is firing-like the $1.11 billion core deposit base funding their Stars-and where management needs to trim the fat from those legacy Dogs. Let's break down which segments are the future cash generators and which are just taking up valuable space, so you can see the real strategic story behind the recent earnings pop.

Background of First Capital, Inc. (FCAP)

You're looking at the core of First Capital, Inc. (FCAP), which, as of late 2025, operates as a prominent bank holding company based right in Indiana. Honestly, their strategy centers on getting better at lending and making sure operations run smoothly, which you can see reflected in their recent balance sheet growth.

Let's look at the numbers as of September 30, 2025. First Capital, Inc. reported total assets hitting $1.24 billion, a nice bump up from the $1.19 billion they held at the end of the third quarter in 2024. That growth is mostly tied up in their net loans receivable, which climbed to $642.3 million from $630.6 million a year prior.

The income side shows real traction, too. For the first nine months of 2025, net income reached $11.5 million, a solid improvement over the $8.7 million recorded for the same period in 2024. Even looking just at the third quarter, net income was $4.5 million, or $1.34 per diluted share, compared to just $2.9 million, or $0.87 per diluted share, in Q3 2024.

When you break down the lending portfolio, you see where the focus is. Commercial Real Estate Loans saw a significant increase of $16.8 million year-to-date. Following that, Multifamily Residential Loans grew by $13.1 million, and 1-4 Family Residential Mortgages added $7.0 million to the books. Home Equity and Second Mortgage Loans also contributed an extra $5.1 million.

But to be fair, not every area was expanding. The company did see a notable decrease of $30.9 million in the category labeled other construction, development, and land loans over the same nine-month period. Still, the overall picture shows a company successfully executing on its core banking activities and growing its asset base.

First Capital, Inc. (FCAP) - BCG Matrix: Stars

You're looking at the engine room of First Capital, Inc. (FCAP)'s current performance, the units that command a high share in markets still expanding rapidly. These are the areas where the company is investing heavily to maintain leadership, which is why you see cash flowing in and out at a high rate.

The performance of this segment is clearly reflected in the third quarter of 2025 results. Net Interest Income (NII) growth was the main driver, pushing Q3 2025 net income to a record $4.5 million. This record income compares favorably to the $2.9 million reported in Q3 2024. Also, for the nine months ended September 30, 2025, Net Interest Income after provision for credit losses increased by $4.9 million compared to the same period in 2024.

The efficiency of the core lending business, a hallmark of a Star, is evident in the margin expansion. The tax-equivalent Net Interest Margin (NIM) expanded to 3.71% for the quarter ended September 30, 2025. That's a solid jump from 3.19% reported year-over-year for Q3 2024. This margin improvement came from a higher average tax-equivalent yield on interest-earning assets, moving from 4.59% in Q3 2024 to 4.94% in Q3 2025.

The overall loan portfolio demonstrates strong market penetration, which is the high-market-share component of the Star definition. The total loan portfolio increased by $11.1 million year-to-date through September 30, 2025, bringing the total loans and leases to $642.3 million. This growth is not uniform, however; it is concentrated in specific high-yield areas.

Commercial Real Estate (CRE) lending is definitely one of these high-yield segments fueling asset growth within First Capital, Inc. (FCAP)'s regional footprint. You can see the impact clearly in the year-to-date figures for the loan portfolio components.

Here are the key metrics supporting the Star classification for the lending operations:

• Net Income for Q3 2025: $4.5 million.
• Tax-equivalent NIM for Q3 2025: 3.71%.
• Loan Portfolio Growth YTD September 30, 2025: $11.1 million.
• Net Interest Income increase Q3 2025 vs Q3 2024: $2.1 million.

To give you a clearer picture of where the asset growth is concentrated, look at the changes in the loan book as of September 30, 2025, compared to the end of 2024, which shows where the investment is paying off:

The expansion in the average balance of interest-earning assets from $1.17 billion in Q3 2024 to $1.20 billion in Q3 2025 directly supports the higher NII. This growth in earning assets, driven by successful lending deployment, is what keeps this segment firmly in the Star quadrant for First Capital, Inc. (FCAP).

First Capital, Inc. (FCAP) - BCG Matrix: Cash Cows

Cash Cows for First Capital, Inc. (FCAP) are those business units or products operating in mature, low-growth segments but commanding a high market share, thus generating significant, reliable cash flow to support the entire enterprise. These are the bedrock of the company's financial stability.

The stable, low-cost core deposit base is a prime example of a Cash Cow component, providing reliable funding. By mid-2025 (Q2 2025), this base reached $1.11 billion, up from $1.07 billion at the end of 2024. This consistent funding source helps manage the cost of liabilities effectively. You see this stability reflected in the improved tax-equivalent net interest margin, which stood at 3.59% for Q2 2025.

Within the lending operations, the Residential Real Estate loans segment represents a core, high-market-share activity. While the total loan portfolio size was not explicitly detailed in the required $$634.3$ million figure in recent reports, this segment is noted as the largest and most stable component of the lending book. The overall balance sheet strength supports continued, disciplined lending in these mature areas.

The strong capital position of First Capital, Inc. (FCAP) allows for consistent shareholder returns, a hallmark of a well-managed Cash Cow. The Community Bank Leverage Ratio (CBLR) stood at a robust 10.80% as of Q2 2025. This ratio provides a significant buffer, underpinning the ability to maintain dividend payments, which were held steady at $0.29 per quarter in Q1 and Q2 2025.

Fee income from transactional services, though low-growth, contributes consistently to noninterest income. Specifically, ATM and debit card fee income showed modest but positive momentum, increasing by $47,000 in Q3 2025 when compared to the same period in 2024. This small, predictable stream is 'milked' passively, requiring minimal new investment for growth.

Here is a quick look at the key metrics supporting the Cash Cow classification for these stable areas:

These Cash Cow elements provide the necessary internal funding for other parts of the portfolio, such as Question Marks needing investment to gain market share. The focus here is on maintaining efficiency, not aggressive expansion.

• Maintain the current productivity level of the deposit base.
• Ensure Residential Real Estate loan servicing remains best-in-class.
• Invest in infrastructure to further reduce the cost of supporting these assets.
• Continue consistent dividend payouts supported by strong capital ratios.

First Capital, Inc. (FCAP) - BCG Matrix: Dogs

When you look at the portfolio for First Capital, Inc. (FCAP), the Dogs quadrant represents those areas demanding management attention without offering significant growth or cash generation. These are the legacy assets or operations that tie up capital and resources.

Consider the Nonperforming Assets (NPAs). While management has worked to keep this number low, the total still stood at $4.0 million as of June 30, 2025. That's capital sitting idle, requiring active management to resolve or write off. It's not a massive drag on the balance sheet, which hit $1.24 billion in total assets, but it's a clear drain on operational focus.

The credit quality signals, while generally stable given the overall strong NIM growth, show a need to monitor risk creep. Net charge-offs, for instance, increased to $113,000 in Q2 2025. Compare that to the $30,000 recognized in Q2 2024; that jump signals a normalization of credit risk in the portfolio, which is a classic sign of a low-growth, higher-maintenance segment.

Here's a quick look at the key metrics that characterize these lower-performing units:

You'll also find legacy, low-yield investment securities held to maturity in this category. These assets don't move the needle on the impressive tax-equivalent Net Interest Margin (NIM) of 3.59% reported for Q2 2025. They are simply sitting there, contributing minimally while the rest of the balance sheet is actively managed for yield.

The physical footprint also contains Dog-like characteristics. We're talking about certain older, non-digitalized branch operations situated in low-growth areas. These units inherently require high occupancy and equipment expense to maintain, as evidenced by the $69,000 year-over-year increase in occupancy/equipment expense in Q2 2025, which management noted included ATM servicing costs.

These Dogs require a decision on divestiture or minimal investment to maintain status quo. You should focus on:

• Active management of the $4.0 million in NPAs.
• Evaluating the cost structure of older branch operations.
• Monitoring NCOs, which rose to $113,000 in the quarter.
• Assessing the opportunity cost of low-yield securities.

Finance: draft a 13-week cash view by Friday detailing the carrying cost of non-performing assets versus the expected recovery timeline.

First Capital, Inc. (FCAP) - BCG Matrix: Question Marks

You're looking at the Question Marks quadrant of First Capital, Inc. (FCAP) portfolio, which means we're dealing with business areas that are in high-growth markets but currently hold a low market share. These units consume cash to fuel that growth but haven't yet delivered substantial returns. Honestly, these are the units that test your nerve; they either become Stars or they slip into the Dog category.

For First Capital, Inc. (FCAP), these potential future Stars are often found in areas requiring significant upfront capital to scale against established players. Consider the following financial indicators and business segments that fit this high-growth, low-share profile:

• Investments in new technology and data processing, which contributed to a $494,000 increase in noninterest expenses in Q2 2025, but are essential for future growth.
• Investments in equity securities, which generated a $150,000 gain in Q3 2025, but are inherently subject to market fluctuation and risk.
• Gains on sale of loans, a volatile noninterest income source that saw a $119,000 increase in Q3 2025, but is dependent on market rates.
• Commercial Business lending, a segment with high growth potential but higher risk and lower current volume compared to real estate loans.

The volatility in noninterest income streams highlights the risk inherent in these developing areas. For instance, the Q3 2025 noninterest income was $2.31 million in total, driven by several factors, including the equity security gain and loan sale activity.

Here's a quick look at the volatile components that feed into the overall noninterest income picture for Q3 2025:

The need for investment is clear when you look at the expense side. The noninterest expense increase in Q2 2025 was $494,000 year-over-year, with data processing being a specific driver. This spending is the cash burn required to move these units toward Star status.

For the lending side, which represents the core business, the growth in specific loan types shows where the market is expanding, even if the overall market share for the Commercial Business lending segment specifically is still being established relative to the larger, more established real estate loan book. For the nine months ended September 30, 2025, the loan portfolio saw growth:

• Commercial Real Estate Loans: Up by $16.8 million.
• Multifamily Residential Loans: Up by $13.1 million.
• Total Net Loans and Leases: Reached $642.3 million as of September 30, 2025.

The strategy here is simple: you must decide whether to pour in the capital needed to capture market share quickly, or cut bait before these high-potential areas become a drain. If the growth prospects in Commercial Business lending don't materialize soon, that segment risks becoming a Dog.