First Capital to Buy First Bancorp of Indiana in $33.2 Million Stock Deal

The Tip Desk · November 7, 2026 · 1 min read

The all-stock merger is meant to deepen First Capital's community-banking franchise across Southern Indiana and Western Kentucky.

First Capital, Inc. (FCAP) agreed to acquire First Bancorp of Indiana, Inc. in an all-stock transaction valued at approximately $33.2 million, a combination the company said would strengthen its community banking franchise and enhance regional scale.

Under the definitive agreement, First Bancorp shareholders will receive a fixed exchange ratio of 0.3075 shares of First Capital common stock for each First Bancorp common share. The companies said the deal is expected to be completed in the first half of 2027, subject to customary closing conditions, including regulatory approvals and the approval of First Bancorp shareholders.

First Capital, the holding company for First Harrison Bank, framed the merger as an expansion of its existing footprint rather than a move into a new geography. The company said the transaction expands its presence across Southern Indiana and Western Kentucky, regions where First Harrison Bank already operates.

First Harrison Bank currently has seventeen offices in the Indiana communities of Corydon, Edwardsville, Greenville, Floyds Knobs, Palmyra, New Albany, New Salisbury, Jeffersonville, Salem, Lanesville and Charlestown and the Kentucky communities of Shepherdsville, Mt. Washington and Lebanon Junction.

President and Chief Executive Officer Chris Frederick commented, “We are extremely excited to partner with First Bancorp and further expand our presence across Southern Indiana and Western Kentucky.”

The all-stock structure and fixed exchange ratio leave First Bancorp holders with First Capital equity rather than cash consideration. Closing remains contingent on the same customary conditions the companies listed, including regulatory sign-off and a shareholder vote at First Bancorp.