SOURCE: First Bancorp of Indiana, Inc.

October 27, 2006 17:30 ET

First Bancorp of Indiana, Inc. Announces Financial Results

EVANSVILLE, IN -- (MARKET WIRE) -- October 27, 2006 --First Bancorp of Indiana, Inc. (NASDAQ: FBEI), the holding company for First Federal Savings Bank, reported net earnings of $174,000 for the quarter ended September 30, 2006, compared to $246,000 for the same quarter last year. A flattening, and ultimately inverting, of the yield curve over the course of the past twelve months further compressed the net interest margin. In addition, noninterest expenses increased moderately between the comparative quarters due to expenses associated with the new corporate headquarters.

First quarter earnings represented 11 cents per average outstanding share (diluted) compared to 16 cents for the quarter ended September 30, 2005. The company repurchased 55,748 shares of common stock during the intervening twelve months ended September 30, 2006, and 21,600 option shares were exercised. These transactions resulted in 1,552,643 shares outstanding at September 30, 2006. 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 2006.

As announced previously, First Bancorp completed its acquisition of Home Building Bancorp, Inc., effective October 1, 2006. Home Building Bancorp was the parent company for Home Building Savings Bank, a federally-charted thrift institution with offices in Washington, Indiana and 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)


                                           9/30/2006       6/30/2006
                                          ===========     ===========
Selected Balance Sheet Data:              (unaudited)
Total assets                                  304,894         294,551
Investment securities                          34,432          34,076
Mortgage-backed securities                     35,249          36,645
Loans receivable, net                         191,059         186,752
Deposit accounts                              200,547         189,341
Long-term debt                                 71,000          73,000
Equity capital                                 28,594          28,206

                                               Three months ended
                                                   September 30,
                                              2006           2005
                                          ===========     ===========
Operating Results:                        (unaudited)     (unaudited)
Interest income                                 4,051           3,288
Interest expense                                2,439           1,622
                                          -----------      ----------
Net interest income                             1,612           1,666
Provision for loan losses                          95              75
                                          -----------      ----------
Net interest income after provision             1,517           1,591
Noninterest income                                501             517
Noninterest expense                             1,800           1,723
                                          -----------      ----------
Income before income taxes and cumulative
 effect of a change in accounting
 principle                                        218             385
Income taxes                                       44             139
                                          -----------      ----------
Net income                                        174             246

                                          At or for the three months
                                              ended September 30,
Selected Financial Ratios:                    2006            2005
                                          ===========      ==========
Performance Ratios:                       (unaudited)     (unaudited)
Return on average assets                         0.23%           0.36%
Return on average equity                         2.47%           3.34%
Basic earnings per share                         0.12            0.16
Diluted earnings per share                       0.11            0.16
Interest rate spread                             2.32%           2.57%
Net interest margin                              2.38%           2.68%
Other expenses as a % of average total
 assets                                          2.42%           2.54%

Asset Quality Ratios:
Nonperforming loans as a % of total loans        0.53%           0.29%
Nonperforming assets as a % of total
 assets                                          0.33%           0.18%
Allowance for loan losses as a % of total
 loans                                           0.47%           0.48%
Allowance for loan losses as a %
 of nonperforming loans                         89.75%         168.70%

Contact Information

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