SOURCE: First Bancorp of Indiana, Inc.

October 19, 2007 16:22 ET

First Bancorp of Indiana, Inc. Announces Earnings

EVANSVILLE, IN--(Marketwire - October 19, 2007) - First Bancorp of Indiana, Inc. (NASDAQ: FBEI), the holding company for First Federal Savings Bank, reported earnings of $189,000 for the first fiscal quarter ended September 30, 2007, compared to earnings of $174,000 for the same quarter a year ago. Increased leveraging of the Company's strong capital position, which was due in part to the October 1, 2006, acquisition of Home Building Bancorp, Inc. (HBBI), offset a more compressed net interest margin. The increase in noninterest expenses was associated primarily with the added Home Building Savings Bank personnel and facilities.

First quarter earnings represented 10 cents per average outstanding share (diluted) compared to 11 cents for the quarter ended September 30, 2006. The company repurchased 39,912 shares of common stock during the intervening twelve months ended September 30, 2007, and 25,838 option shares were exercised. In addition, 293,946 shares were issued to former HBBI shareholders. These transactions resulted in 1,832,515 shares outstanding at September 30, 2007. The Company's board of directors paid a semiannual dividend of 30 cents per outstanding share during the most recent quarter, unchanged from the same period in fiscal 2007.

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. and First Federal Savings Bank, an FDIC-insured federal stock savings bank, operate from headquarters in Evansville, Indiana.

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

                                                9/30/2007      6/30/2007
                                              =============  =============
Selected Balance Sheet Data:                   (unaudited)
Total assets                                        363,794        362,992
Investment securities                                44,077         44,602
Mortgage-backed securities                           35,296         35,496
Loans receivable, net                               235,157        233,237
Deposit accounts                                    239,442        251,234
Borrowings                                           84,497         72,496
Equity capital                                       34,051         34,218


                                                      Three months
                                                   ended September 30,
                                                   2007           2006
                                              =============  =============
Operating Results:                              (unaudited)    (unaudited)
Interest income                                       5,235          4,051
Interest expense                                      3,382          2,417
                                              -------------  -------------
Net interest income                                   1,853          1,634
Provision for loan losses                                80             95
                                              -------------  -------------
Net interest income after provision                   1,773          1,539
Noninterest income                                      490            501
Noninterest expense                                   2,033          1,822
                                              -------------  -------------
Income before income taxes and cumulative
 effect of a change in accounting principle             230            218
Income taxes                                             41             44
                                              -------------  -------------
Net income                                              189            174


                                                        At or for
                                                    the three months
                                                   ended September 30,
Selected Financial Ratios:                         2007           2006
                                              =============  =============
Performance Ratios:                             (unaudited)    (unaudited)
Return on average assets                               0.21%          0.23%
Return on average equity                               2.24%          2.47%
Basic earnings per share                               0.11           0.12
Diluted earnings per share                             0.10           0.11
Interest rate spread                                   2.03%          2.14%
Net interest margin                                    2.25%          2.42%
Other expenses as a % of average total assets          2.23%          2.42%

Asset Quality Ratios:
Nonperforming loans as a % of total loans              0.07%          0.53%
Nonperforming assets as a % of total assets            0.07%          0.33%
Allowance for loan losses as a % of total
 loans                                                 0.45%          0.47%
Allowance for loan losses as a %
 of nonperforming loans                              667.08%         89.75%




Contact Information

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