First Capital is acquiring First Bancorp of Indiana, the holding company for First Federal Savings Bank in an all-stock transaction valued at $33.2 million.
First Capital is the holding company for First Harrison Bank, which operates 12 branches across Clark, Floyd, Harrison and Washington counties in Indiana, and 5 branches in Bullitt County, Kentucky. After the deal closes, First Federal Savings Bank will merge into First Harrison Bank.
First Capital had total assets of $1.3 billion, gross loans of $686 million and total deposits of $1.1 billion.
“We are extremely excited to partner with First Bancorp and further expand our presence across Southern Indiana and Western Kentucky,” Chris Frederick, president and CEO of First Capital, said. “The expansion of our branch network across these markets will allow us to attract additional talent, build meaningful customer relationships and grow our franchise through a partnership with an organization that shares our approach to community banking.”
First Federal Savings Bank has 10 offices across Southern Indiana and Western Kentucky with approximately $583 million in total assets, $444 million in gross loans, $473 million in deposits and $33 million of total equity.
“We are pleased to join First Capital’s strong franchise and believe the cultural alignment between our organizations is ideal for the next chapter for First Bancorp’s customers, employees and shareholders. This combination will provide additional resources to support our customers, create new opportunities for our employees and continue our longstanding commitment to the communities we serve,” Michael Head, president and CEO of First Bancorp, said.
The agreement was unanimously approved by the boards of both companies. The deal is expected to be completed in the first half of 2027, subject to the satisfaction of customary closing conditions, including regulatory approvals and the approval of First Bancorp shareholders.