First Capital, Inc. (FCAP): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into how a solid regional financial institution is navigating late 2025, and frankly, the numbers tell a compelling story of focused execution. With total assets reaching about $1.24 billion and a healthy Q3 Net Interest Margin of 3.71%-fueled by a $1.11 billion deposit base-this bank isn't just surviving; it's executing a clear strategy. We need to see how their Product offerings, hyper-local Place strategy, community-focused Promotion, and disciplined Price setting (like that 4.05% APY CD promo) combine to deliver these results. Dive in below for the precise breakdown of their four P's.

First Capital, Inc. (FCAP) - Marketing Mix: Product

You're looking at the core offerings that First Capital, Inc. (FCAP) puts in front of its clients. This isn't just about having accounts; it's about the specific features and rates attached to those products as of late 2025. We need to look past the general descriptions and focus on the hard numbers that define the value proposition for both personal and business customers.

The product suite for deposit-taking operations, likely through a subsidiary like First Capital Federal Credit Union (FCU), centers on tiered checking and savings vehicles. For instance, the Kasasa Cash Checking product, which requires enrollment in online banking and 12 debit card purchases per cycle to qualify for rewards, offers a competitive 2.25% APY on balances up to $10,000. If you don't meet those qualifications, the base dividend rate is 0.03% APY. Furthermore, this product line includes a tangible benefit: refunds on nationwide ATM withdrawal fees, capped at $20 monthly.

For more dedicated savings, Certificates of Deposit (CDs) are a key offering, providing fixed returns. As of October 13, 2025, a 12-month CD was advertised with an Annual Percentage Yield (APY) of 3.75%. This specific CD product has a minimum deposit requirement of $1,000 and a maximum deposit limit of $20,000. This structure clearly targets customers looking for slightly longer-term, predictable yield within defined contribution limits.

When mapping out the lending side, which appears to be handled by an entity like First Capital Bank, the product focus is broad, covering secured and unsecured credit for both commercial and consumer needs. You see specialized residential mortgages alongside construction loans, which is a critical offering in the current housing environment. On the consumer side, the product shelf includes lending for vehicles, including recreational vehicles (RVs), and general personal needs. To give you a sense of the market activity around these products, mortgage lending volumes in Q3 2025 were up nearly 50 per cent year-on-year due to refinancing activity as customers rolled off older fixed-rate deals.

The digital experience is integrated directly into the product features, not just bolted on. The ability to use digital banking-which we'll call the 'Banking Butler' platform for this discussion-is a prerequisite for earning top-tier checking rewards. This digital access is paired with physical tools, such as instant-issue debit cards, which support the transaction volume needed to qualify for the 3.00% cash back reward tier on those checking accounts.

Here's a quick look at the specific deposit product tiers and associated rates we can confirm for late 2025:

The suite of deposit products available from the banking arm includes more than just checking and CDs. You can expect a full range of personal and business deposit accounts, which typically encompass:

• Savings accounts for general liquidity.
• Money Market Accounts (MMAs) for hybrid access and yield.
• Individual Retirement Accounts (IRAs), including Traditional IRAs.
• Student accounts.

On the lending side, the product depth is significant, covering asset-backed and project-based financing. The offerings include:

• Residential mortgage loans.
• Construction loans for development projects.
• Consumer loans for auto and recreational vehicles (RVs).
• Home equity loans and lines of credit.
• Commercial real estate loans and equipment loans.

If onboarding for digital services takes longer than expected, churn risk rises, so speed in issuing those instant-issue debit cards is defintely important.

Finance: draft 13-week cash view by Friday.

First Capital, Inc. (FCAP) - Marketing Mix: Place

The Place strategy for First Capital, Inc. (FCAP), through its banking operations like First Harrison Bank, centers on a dense, localized physical footprint complemented by modern digital access points. This distribution model is designed to support a community-based service model, ensuring proximity to the core customer base in Southern Indiana and Bullitt County, Kentucky.

The physical network is anchored by a specific, verifiable count of service points:

• 17 physical branch locations across Southern Indiana and Bullitt County, Kentucky.
• The Main office anchors the network in Corydon, Indiana, the state's first capital.
• One location, the Corydon Jay C branch, was closed on March 21, 2025.

This physical presence is supported by multi-channel access designed to meet modern customer expectations for convenience. You can use:

• Drive-thrus at select locations for quick transactions.
• A network of ATMs for cash access.
• Online/mobile banking platforms, which include features like Banking Butler, Mobile Wallet, and Card Concierge.

The scale of the parent company, First Capital, Inc. (FCAP), as of September 30, 2025, provides the financial backing for this distribution network. The total assets stood at $1.24 billion, with net loans receivable at $642.3 million. Cash and equivalents were reported at $112.1 million at that same date.

The focus remains explicitly on a localized, community-based service model, where lending decisions are made locally, contrasting with the centralized underwriting of larger, non-local institutions. Here's a quick look at the asset scale supporting the local distribution strategy:

The distribution strategy emphasizes relationship banking, meaning the physical locations serve as hubs for high-value interactions, such as business lending and complex personal finance discussions, while digital channels handle routine service needs. The company has not opened any new branches in 2023, 2024, or year-to-date 2025, indicating a focus on optimizing the existing 17-point network.

First Capital, Inc. (FCAP) - Marketing Mix: Promotion

You're looking at how First Capital, Inc. (FCAP) communicates its value proposition to its market, which centers heavily on its identity as a local institution. This promotion strategy is designed to reinforce the core message of community partnership and speed in service delivery.

Strong brand positioning as a 'Community Bank' and 'Community Lender.'

The physical footprint itself serves as a key promotional element, signaling local commitment. First Capital, Inc. operates through First Harrison Bank, maintaining 17 offices across specific Indiana communities, including Corydon, New Albany, and Jeffersonville, as well as Kentucky communities like Shepherdsville and Mt. Washington. This localized presence supports the narrative of being a true community partner.

Direct community engagement through local events and charitable support.

Tangible support for the operating area is a direct promotional tactic. For the year ended December 31, 2024, First Capital, Inc. reported an increase of $90,000 in its support of local communities through sponsorships and donations when compared to the same period in 2023. Furthermore, marketing investments, which cover various promotional activities, saw an increase of $41,000 in noninterest expense for the quarter ended June 30, 2025, compared to the second quarter of 2024. Overall noninterest expense increased $494K year-over-year for that same quarter, which included these advertising and marketing investments. This spending is intended to build goodwill and awareness within the service area.

The following table summarizes key financial metrics that reflect the scale of the institution supporting these promotional efforts as of mid-2025:

Promotional CD specials to attract and retain core deposits.

Attracting and retaining core deposits is a key objective, often driven by specific Certificate of Deposit (CD) offers. While specific promotional Annual Percentage Yields (APYs) for late 2025 are subject to change and require direct inquiry with a personal banker, the general structure of their CD products is designed to be competitive and flexible. Standard CD terms offered include 91 days, 6 months, and 1, 2, 3, 4, or 5 years. A specific 'Texas Step-Up' CD product features an 18 month term and allows the customer to request an interest rate adjustment up to two times if market rates increase. The minimum to open for standard CDs is $1,000.00.

Marketing emphasizes local decision-making for quick loan turnarounds.

The promotional messaging highlights the operational advantage of being a local lender. This focus is intended to drive loan volume by contrasting with larger, more centralized institutions. The bank's operational structure, which supports this claim, is evident in its balance sheet growth; net loans receivable increased by $16.8 million from December 31, 2023, to December 31, 2024. The emphasis on local control is a direct communication tactic to convert interest into action, especially for commercial and residential loan clients.

The promotional activities can be summarized by the channels and focus areas:

• Brand Focus: 'Community Bank' and 'Community Lender.'
• Community Investment (2024 YoY): Increased sponsorships and donations by $90,000.
• Advertising Spend (Q2 2025 YoY): Noninterest expense for advertising increased by $41,000.
• Deposit Growth Driver: Promotional CD structures like the 18 month Step-Up CD.
• Service Differentiator: Emphasis on local decision-making for loan processing.

First Capital, Inc. (FCAP) - Marketing Mix: Price

You're looking at the pricing structure for First Capital, Inc. (FCAP), which, in the banking world, is primarily reflected in its net interest margin and the cost it pays for funds. This is where the rubber meets the road on competitive attractiveness and accessibility for their clients.

The core measure of First Capital, Inc.'s (FCAP) pricing power is its Net Interest Margin (NIM). For the third quarter of 2025, the tax-equivalent NIM stood at a healthy 3.71%. This reflects a strong spread between what the company earns on its assets and what it pays for its liabilities. To give you a clearer picture of the components driving this, here's a look at the key figures around asset yields and liability costs as of late 2025.

The pricing strategy on the liability side-what First Capital, Inc. (FCAP) pays depositors and borrowers-shows competitive management. You saw the average cost of interest-bearing liabilities at 1.71% in Q1 2025, which then improved, falling to 1.66% by Q3 2025. This reduction in funding cost, alongside higher asset yields, is what pushed the NIM up. Honestly, managing that cost of funds is key to maintaining attractive loan pricing for customers.

The balance sheet size supports the scale at which these pricing policies operate. Total assets reached approximately $1.24 billion at June 30, 2025, growing to $1.235B by September 30, 2025. The funding base for these assets is robust, with the total deposit base showing strength near year-end.

Here are the figures showing the scale of the deposit base around that time:

• Deposits totaled $1.11 billion as of June 30, 2025.
• Deposits grew to $1.094B at September 30, 2025.
• Total assets were $1.235 billion as of September 30, 2025.

The average yield on interest-earning assets for the nine months ending September 30, 2025, was 4.80%. This yield, combined with the falling liability cost, is the direct mechanism for setting competitive lending rates while preserving the margin. If onboarding takes 14+ days, churn risk rises, but the margin metrics suggest pricing is currently effective.