SOURCE: First Bancorp of Indiana, Inc.

April 21, 2006 17:29 ET

First Bancorp of Indiana, Inc. Announces Earnings

EVANSVILLE, IN -- (MARKET WIRE) -- April 21, 2006 -- First Bancorp of Indiana, Inc. (NASDAQ: FBEI), the holding company for First Federal Savings Bank, reported earnings of $254,000 for the quarter ended March 31, 2006, a 31.4 percent decrease from the $370,000 reported for the same quarter in fiscal 2005. A flattening of the yield curve between the comparative quarters and the resulting narrower interest rate spread was responsible for the lower third fiscal quarter earnings. At $1.16 million, net income for the first nine months of fiscal 2006 was 0.1 percent above the same period a year ago, as a gain from the sale of a branch banking facility offset the decreased net interest income.

Third quarter earnings represented 17 cents per average outstanding share (diluted) compared to 24 cents for the quarter ended March 31, 2005. For the first three quarters of the fiscal 2006, diluted earnings per share totaled 75 cents on 1.55 million average shares compared to 74 cents on 1.57 million average shares during the same period the preceding year. Activity under the First Bancorp's current stock repurchase program was responsible for the change in average shares.

The new corporate headquarters located at the intersection of Green River and Lynch Roads on the city's northeast side is now open for retail operations. The former Green River Road branch banking facility ceased operations during the most recent quarter.

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)
                                               3/31/2006    6/30/2005
                                               ---------    ---------
                                               (unaudited)
Selected Balance Sheet Data:
----------------------------
Total assets                                     288,868      277,368
Investment securities                             29,330       13,821
Mortgage-backed securities                        39,714       51,498
Loans receivable, net                            178,836      154,546
Deposit accounts                                 183,580      195,733
Short-term borrowings                                  0            0
Long-term debt                                    72,000       45,000
Equity capital                                    28,637       29,921




                              Three months              Nine months
                            ended March 31,           ended March 31,
                            2006         2005         2006         2005
                        ===========  ===========  ===========  ===========
                        (unaudited)  (unaudited)  (unaudited)  (unaudited)
Operating Results:
------------------
Interest income               3,606        3,431       10,423       10,088
Interest expense              2,013        1,496        5,503        4,382
                        -----------  -----------  -----------  -----------
Net interest income           1,593        1,935        4,920        5,706
Provision for loan
 losses                          65           60          222          270
                        -----------  -----------  -----------  -----------
Net interest income
 after provision              1,528        1,875        4,698        5,436
Noninterest income              501          358        2,171        1,176
Noninterest expense           1,677        1,648        5,145        4,778
                        -----------  -----------  -----------  -----------
Income before income
 taxes and cumulative
 effect of a change in
 accounting principle           352          585        1,724        1,834
Income taxes                     98          215          567          678
Cumulative effect of
 change in accounting
 principle                        0            0            0            0
                        -----------  -----------  -----------  -----------
Net income                      254          370        1,157        1,156





                               At or for                 At or for
                           the three months           the nine months
                            ended March 31,           ended March 31,
                           2006         2005         2006         2005
                        ===========  ===========  ===========  ===========
                        (unaudited)  (unaudited)  (unaudited)  (unaudited)
Selected Financial Ratios:
--------------------------
Performance Ratios:
Return on average
 assets                        0.36%        0.53%        0.55%        0.56%
Return on average
 equity                        3.52%        4.99%        5.29%        5.23%
Basic earnings per
 share                         0.17         0.25         0.77         0.77
Diluted earnings per
 share                         0.17         0.24         0.75         0.74
Interest rate spread           2.40%        2.84%        2.48%        2.83%
Net interest margin            2.47%        2.97%        2.58%        2.96%
Other expenses as a %
 of average total
 assets                        2.35%        2.35%        2.46%        2.31%

Asset Quality Ratios:
Nonperforming loans as
 a % of total loans            0.25%        0.07%        0.25%        0.07%
Nonperforming assets as
 a % of total assets           0.16%        0.06%        0.16%        0.06%
Allowance for loan
 losses as a % of total
 loans                         0.48%        0.56%        0.48%        0.56%
Allowance for loan
 losses as a % of
 nonperforming loans         192.00%      766.67%      192.00%      766.67%

Contact Information

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