First Capital to Buy First Bancorp of Indiana

The $33.2 million all-stock deal would merge First Bancorp's savings bank into First Harrison Bank, creating a combined institution with about $1.88 billion in assets.

Updated on Nov. 5, 2026 in Corporate Finance

First Capital to Buy First Bancorp of Indiana

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First Capital, based in Corydon, Indiana, agreed to acquire First Bancorp of Indiana, headquartered in Evansville, in a stock transaction valued at roughly $33.2 million. First Federal Savings Bank, First Bancorp's subsidiary, will merge into First Harrison Bank.

Why it matters

The combination would create a bank with roughly $1.88 billion in assets, $1.13 billion in loans and $1.57 billion in deposits, expanding a regional lender's footprint across southern Indiana. The deal illustrates how community banks in the state are consolidating to increase scale.

The deal is valued at roughly $33.2 million in stock, based on a 20-day volume-weighted average closing price of $63.05 per First Capital share and an exchange ratio of 0.3075 shares per First Bancorp share. The combined bank's asset, loan and deposit totals are projected figures, and the closing date remains subject to regulatory and shareholder approvals.

The players

First Capital

First Capital is the Corydon, Indiana-based holding company for First Harrison Bank, a community bank serving southern Indiana.

First Bancorp of Indiana

First Bancorp of Indiana is the Evansville-based holding company whose subsidiary, First Federal Savings Bank, is being merged into First Harrison Bank.

The details

First Federal Savings Bank will merge into First Harrison Bank, which operates 17 branches, while First Federal's 10 branches will come under the combined institution. Michael Head will join First Capital's board and serve as a market president at First Harrison.

The merger agreement was filed with securities regulators on Wednesday.
The deal's valuation was based on a 20-day volume-weighted average price measured on Tuesday.
The transaction is expected to close in the first half of 2027.

Market Dynamics

The transaction follows a sustained pattern of community banks in the Midwest combining to build scale and expand branch networks. Its combined $1.88 billion in assets would place the institution in the category of mid-sized regional lenders in the state.

First Bancorp shareholders would receive 0.3075 shares of First Capital stock for each share they own, so their returns will depend on the holding company's performance after closing. Customers of both banks will keep their existing relationships until the merger is completed in the first half of 2027.

The takeaway

Bank mergers of this size often reshape local lending options, so customers of both institutions should watch for changes to branch access, account terms and service offerings as the deal moves toward closing in 2027.