SOURCE: First Bancorp of Indiana, Inc.

August 21, 2008 16:30 ET

First Bancorp of Indiana, Inc. Announces Quarterly Cash Dividend and Revised Financial Results

EVANSVILLE, IN--(Marketwire - August 21, 2008) - The Board of Directors of First Bancorp of Indiana, Inc. (OTCBB: FBPI) at its regular meeting on August 20, 2008, declared a quarterly cash dividend of $0.155 per share, payable to stockholders of record as of September 1, 2008. The dividend will be paid on or about September 15, 2008. The annual dividend rate on this quarterly declaration is unchanged from the preceding quarter and results in an annualized dividend yield of 6.0% based on the $10.40 price for the last reported trade on August 20, 2008.

In addition, the Company is revising its reported earnings for the fiscal year ended June 30, 2008. On July 17, 2008, the Company issued a press release announcing net income of $1.16 million for fiscal 2008. Subsequent to that time, a borrower defaulted on a significant lending relationship resulting in an impairment of approximately $500,000. The determination that these credits were impaired as of June 30, 2008, was not able to be made until after publishing the initial earnings press release. After adjusting for the impairment, earnings for fiscal 2008 were $804,000 compared to $518,000 for fiscal 2007.

First Bancorp of Indiana, Inc. is the holding company for First Federal Savings Bank, Evansville, Indiana, a federally chartered savings bank which converted from mutual to stock form on April 7, 1999, and currently operates seven offices in the Evansville, Indiana area, one office in Washington, Indiana and one office in Petersburg, Indiana.

Certain information in this press release may constitute forward-looking information that involves risks and uncertainties that could cause actual results to differ materially from those estimated. Persons are cautioned that such forward-looking statements are not guarantees of future performance and are subject to various factors that could cause actual results to differ materially from those estimated. Undue reliance should not be placed on such forward-looking statements.

                      First Bancorp of Indiana, Inc.
                    Consolidated Financial Highlights
                              (in thousands)





                                                   6/30/2008    6/30/2007
                                                  ===========  ===========
Selected Balance Sheet Data:                      (unaudited)
Total assets                                          377,346      362,992
Investment securities                                  38,730       44,602
Mortgage-backed securities                             53,021       35,496
Loans receivable, net                                 226,474      233,237
Deposit accounts                                      244,053      251,234
Borrowings                                             95,655       72,496
Equity capital                                         31,575       34,218

                                                     Year Ended June 30,
                                                      2008         2007
                                                  ===========  ===========
Selected Operating Data:                          (unaudited)
Interest income                                        20,954       19,295
Interest expense                                       12,928       11,948
                                                  -----------  -----------
Net interest income                                     8,026        7,347
Provision for loan losses                               1,090          400
                                                  -----------  -----------
Net interest income after provision                     6,936        6,947
Noninterest income                                      2,249        2,008
Noninterest expense                                     8,274        8,377
                                                  -----------  -----------
Income before income taxes
 and cumulative effect of a
 change in accounting principle                           911          578
Income taxes                                              107           60
                                                  -----------  -----------
Net income                                                804          518
                                                  ===========  ===========

                                                      At or for the year
                                                        ended June 30,
Selected Financial Ratios:                            2008         2007
                                                  ===========  ===========
Performance Ratios:                               (unaudited)
Return on average assets                                 0.22%        0.15%
Return on average equity                                 2.36%        1.59%
Basic earnings per share                                 0.45         0.30
Diluted earnings per share                               0.45         0.30
Interest rate spread                                     2.19%        2.10%
Net interest margin                                      2.39%        2.35%
Other expenses as a % of average total assets            2.23%        2.43%

Asset Quality Ratios:
Nonperforming loans as a % of total loans                0.59%        0.14%
Nonperforming assets as a % of total assets              0.43%        0.10%
Allowance for loan losses as a % of total loans          0.68%        0.45%
Allowance for loan losses as a %
 of nonperforming loans                                114.44%      326.69%

Contact Information

  • CONTACT:
    Michael H. Head
    President and CEO
    First Bancorp of Indiana
    812-492-8100